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, 2018
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
The Report to Shareholders is attached herewith.
March 31, 2018
(Unaudited)
Semi-Annual Report
Touchstone Funds Group Trust
Touchstone Active Bond Fund
Touchstone Arbitrage Fund
Touchstone Emerging Markets Small Cap Fund
Touchstone High Yield 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 Fund
Touchstone Small Cap Value Fund
Touchstone Total Return Bond Fund
Touchstone Ultra Short Duration Fixed Income Fund
Table of Contents
This report identifies the Funds' investments on March 31, 2018. 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, 2018
The tables below provide each Fund’s geographic allocation, sector allocation or credit quality. We hope it will be useful to shareholders as it summarizes key information about each Fund’s investments.
Touchstone Active Bond Fund | ||||
Credit Quality* (% of Investment Securities) | ||||
AAA/Aaa | 61.2 | % | ||
AA/Aa | 4.0 | |||
A/A | 9.8 | |||
BBB/Baa | 19.8 | |||
BB/Ba | 1.3 | |||
B/B | 0.1 | |||
CCC | 0.2 | |||
Not Rated | 3.1 | |||
Cash Equivalents | 0.5 | |||
Total | 100.0 | % | ||
Touchstone Arbitrage Fund | ||||
Sector Allocation** | (% of Net Assets) | |||
Long Positions | ||||
Common Stocks | ||||
Financials | 53.1 | % | ||
Information Technology | 16.3 | |||
Consumer Discretionary | 7.2 | |||
Industrials | 6.1 | |||
Materials | 5.6 | |||
Utilities | 5.2 | |||
Health Care | 3.5 | |||
Energy | 2.7 | |||
Consumer Staples | 2.5 | |||
Telecommunication Services | 1.5 | |||
Corporate Bonds | 3.1 | |||
Warrants | 0.8 | |||
Exchange-Traded Funds | 0.2 | |||
Purchased Options | 0.1 | |||
Rights | 0.1 | |||
Short-Term Investment Funds | 1.0 | |||
Cash Collateral for Securities Sold Short and Written Options | 2.1 | |||
Other Assets/Liabilities (Net) | (1.0 | ) | ||
110.1 | ||||
Short Positions | ||||
Common Stocks | ||||
Utilities | (3.3 | ) | ||
Energy | (2.5 | ) | ||
Consumer Discretionary | (1.8 | ) | ||
Industrials | (1.0 | ) | ||
Telecommunication Services | (0.8 | ) | ||
Information Technology | (0.5 | ) | ||
Exchange-Traded Funds | (0.1 | ) | ||
Written Put Options | (0.1 | ) | ||
Written Call Options | (0.0 | ) | ||
(10.1 | ) | |||
Total | 100.0 | % | ||
* | Credit quality ratings are from Standard & Poor's (“S&P”) and Moody's Investors Service (“Moody's”). If agency ratings differ, the higher rating will be used. Where no rating has been assigned, it may be for reasons unrelated to the creditworthiness of the issuer. |
** | Sector Classifications are based upon the Global Industry Classification Standard (GICS®). |
3 |
Tabular Presentation of Portfolios of Investments (Unaudited) (Continued)
Touchstone Emerging Markets Small Cap Fund | ||||
Geographic Allocation | (% of Net Assets) | |||
Common Stocks | ||||
South Korea | 17.9 | % | ||
China | 16.8 | |||
Taiwan | 15.8 | |||
India | 10.3 | |||
Brazil | 6.5 | |||
Thailand | 5.3 | |||
South Africa | 4.2 | |||
Hong Kong | 3.9 | |||
Malaysia | 2.8 | |||
Indonesia | 2.1 | |||
Mexico | 1.8 | |||
Jersey | 1.8 | |||
Singapore | 1.5 | |||
Cyprus | 1.5 | |||
Greece | 1.3 | |||
Philippines | 1.2 | |||
Poland | 1.0 | |||
Trinidad | 1.0 | |||
Turkey | 0.9 | |||
United States | 0.4 | |||
Exchange-Traded Fund | 1.0 | |||
Short-Term Investment Funds | 1.6 | |||
Other Assets/Liabilities (Net) | (0.6 | ) | ||
Total | 100.0 | % | ||
Touchstone High Yield Fund | ||||
Credit Quality* (% of Investment Securities) | ||||
BBB/Baa | 5.0 | % | ||
BB/Ba | 55.3 | |||
B/B | 38.7 | |||
CCC | 0.3 | |||
Not Rated | 0.5 | |||
Cash equivalents | 0.2 | |||
Total | 100.0 | % | ||
* | Credit quality ratings are from Standard & Poor's (“S&P”) and Moody's Investors Service (“Moody's”). If agency ratings differ, the higher rating will be used. Where no rating has been assigned, it may be for reasons unrelated to the creditworthiness of the issuer. |
4 |
Tabular Presentation of Portfolios of Investments (Unaudited) (Continued)
Touchstone Merger Arbitrage Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Long Positions | ||||
Common Stocks | ||||
Financials | 58.6 | % | ||
Information Technology | 10.6 | |||
Consumer Discretionary | 6.1 | |||
Industrials | 5.4 | |||
Materials | 3.8 | |||
Utilities | 3.5 | |||
Health Care | 2.4 | |||
Consumer Staples | 2.3 | |||
Energy | 2.1 | |||
Telecommunication Services | 1.0 | |||
Corporate Bonds | 4.4 | |||
Warrants | 1.0 | |||
Commercial Mortgage-Backed Security | 0.7 | |||
Exchange-Traded Funds | 0.1 | |||
Purchased Call Options | 0.1 | |||
Rights | 0.1 | |||
Short-Term Investment Fund | 11.9 | |||
Other Assets/Liabilities (Net) | (6.4 | ) | ||
107.7 | ||||
Short Positions | ||||
Common Stocks | ||||
Utilities | (2.2 | ) | ||
Energy | (2.0 | ) | ||
Consumer Discretionary | (1.6 | ) | ||
Industrials | (0.7 | ) | ||
Telecommunication Services | (0.6 | ) | ||
Information Technology | (0.4 | ) | ||
Exchange-Traded Funds | (0.1 | ) | ||
Written Put Options | (0.1 | ) | ||
Written Call Options | (0.0 | ) | ||
(7.7 | ) | |||
Total | 100.0 | % | ||
Touchstone Mid Cap Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Industrials | 22.5 | % | ||
Consumer Discretionary | 19.5 | |||
Financials | 18.6 | |||
Information Technology | 13.1 | |||
Consumer Staples | 11.6 | |||
Materials | 10.4 | |||
Real Estate | 3.0 | |||
Short-Term Investment Fund | 0.6 | |||
Other Assets/Liabilities (Net) | 0.7 | |||
Total | 100.0 | % | ||
Touchstone Mid Cap Value Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Financials | 21.2 | % | ||
Industrials | 13.2 | |||
Materials | 11.6 | |||
Consumer Discretionary | 10.7 | |||
Information Technology | 8.8 | |||
Real Estate | 7.9 | |||
Utilities | 7.8 | |||
Energy | 7.3 | |||
Health Care | 6.1 | |||
Consumer Staples | 4.1 | |||
Exchange-Traded Fund | 0.3 | |||
Short-Term Investment Funds | 5.6 | |||
Other Assets/Liabilities (Net) | (4.6 | ) | ||
Total | 100.0 | % | ||
* | Sector Classifications are based upon the Global Industry Classification Standard (GICS®). |
5 |
Tabular Presentation of Portfolios of Investments (Unaudited) (Continued)
Touchstone Premium Yield Equity Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Information Technology | 24.2 | % | ||
Financials | 22.8 | |||
Energy | 10.2 | |||
Telecommunication Services | 8.5 | |||
Health Care | 8.0 | |||
Real Estate | 5.6 | |||
Consumer Discretionary | 4.8 | |||
Industrials | 4.3 | |||
Utilities | 4.2 | |||
Materials | 3.1 | |||
Consumer Staples | 2.0 | |||
Short-Term Investment Funds | 7.0 | |||
Other Assets/Liabilities (Net) | (4.7 | ) | ||
Total | 100.0 | % | ||
Touchstone Small Cap Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Industrials | 30.4 | % | ||
Consumer Discretionary | 17.5 | |||
Materials | 14.3 | |||
Real Estate | 8.8 | |||
Information Technology | 7.9 | |||
Consumer Staples | 7.9 | |||
Financials | 7.5 | |||
Energy | 2.0 | |||
Health Care | 1.6 | |||
Short-Term Investment Funds | 5.2 | |||
Other Assets/Liabilities (Net) | (3.1 | ) | ||
Total | 100.0 | % | ||
Touchstone Sands Capital Select Growth Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Information Technology | 54.5 | % | ||
Consumer Discretionary | 21.0 | |||
Health Care | 16.6 | |||
Consumer Staples | 3.2 | |||
Financials | 3.1 | |||
Short-Term Investment Fund | 1.8 | |||
Other Assets/Liabilities (Net) | (0.2 | ) | ||
Total | 100.0 | % | ||
Touchstone Small Cap Value Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Financials | 26.2 | % | ||
Industrials | 20.7 | |||
Consumer Discretionary | 9.6 | |||
Materials | 8.3 | |||
Health Care | 7.3 | |||
Information Technology | 6.4 | |||
Consumer Staples | 5.8 | |||
Utilities | 3.8 | |||
Real Estate | 3.8 | |||
Energy | 3.5 | |||
Telecommunication Services | 0.6 | |||
Short-Term Investment Funds | 10.7 | |||
Other Assets/Liabilities (Net) | (6.7 | ) | ||
Total | 100.0 | % | ||
* | Sector Classifications are based upon the Global Industry Classification Standard (GICS®). |
6 |
Tabular Presentation of Portfolios of Investments (Unaudited) (Continued)
Touchstone Total Return Bond Fund | ||||
Credit Quality* | (% of Investment Securities) | |||
AAA/Aaa | 67.6 | % | ||
AA/Aa | 5.7 | |||
A/A | 11.0 | |||
BBB/Baa | 11.4 | |||
BB/Ba | 1.6 | |||
CCC | 0.7 | |||
Cash Equivalents | 2.0 | |||
Total | 100.0 | % | ||
Touchstone Ultra Short Duration Fixed Income Fund | ||||
Credit Quality* | (% of Investment Securities) | |||
AAA/Aaa | 43.1 | % | ||
AA/Aa | 10.6 | |||
A/A | 13.6 | |||
BBB/Baa | 20.4 | |||
CCC | 0.2 | |||
Not Rated | 7.6 | |||
Cash Equivalents | 4.5 | |||
Total | 100.0 | % | ||
* Credit quality ratings are from Standard & Poor's (“S&P”) and Moody's Investors Service (“Moody's”). If agency ratings differ, the higher rating will be used. Where no rating has been assigned, it may be for reasons unrelated to the creditworthiness of the issuer.
7 |
Touchstone Active Bond Fund – March 31, 2018 (Unaudited)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 28.4% | ||||||||
Financials — 8.9% | ||||||||
$ | 1,388,000 | American Express Co., | ||||||
3.000%, 10/30/24 | $ | 1,332,697 | ||||||
1,188,000 | AvalonBay Communities, Inc. MTN, | |||||||
3.200%, 1/15/28 | 1,124,632 | |||||||
1,094,000 | Bank of America Corp., | |||||||
3.705%, 4/24/28 | 1,075,741 | |||||||
1,660,000 | Bank of America Corp. MTN, | |||||||
4.000%, 1/22/25 | 1,656,734 | |||||||
1,470,000 | Bank of Montreal (Canada), | |||||||
3.803%, 12/15/32 | 1,392,634 | |||||||
1,498,000 | Bank of New York Mellon Corp. (The) | |||||||
MTN, 2.950%, 1/29/23 | 1,479,178 | |||||||
535,000 | Bank of Nova Scotia (The) (Canada), | |||||||
(3M LIBOR +0.620%), | ||||||||
2.798%, 9/19/22(A) | 535,962 | |||||||
945,000 | Barclays PLC (United Kingdom), | |||||||
3.250%, 1/12/21 | 938,198 | |||||||
370,000 | Barclays PLC (United Kingdom), | |||||||
3.250%, 1/12/21 | 367,337 | |||||||
1,540,000 | Boston Properties LP, 3.200%, 1/15/25 | 1,486,573 | ||||||
710,000 | Chubb INA Holdings, Inc., | |||||||
4.350%, 11/3/45 | 755,996 | |||||||
1,015,000 | Citigroup, Inc., 3.300%, 4/27/25 | 985,279 | ||||||
617,000 | Citigroup, Inc., 4.750%, 5/18/46 | 626,960 | ||||||
865,000 | Credit Suisse AG (Switzerland) MTN, | |||||||
3.625%, 9/9/24 | 862,281 | |||||||
1,065,000 | Fifth Third Bancorp, 2.875%, 7/27/20 | 1,062,930 | ||||||
1,547,000 | GE Capital International Funding Co. | |||||||
Unlimited Co. (Ireland), | ||||||||
4.418%, 11/15/35 | 1,512,271 | |||||||
1,200,000 | General Motors Financial Co., Inc., | |||||||
3.200%, 7/13/20 | 1,196,784 | |||||||
925,000 | General Motors Financial Co., Inc., | |||||||
3.200%, 7/6/21 | 916,994 | |||||||
790,000 | Goldman Sachs Group, Inc. (The), | |||||||
3.691%, 6/5/28 | 765,884 | |||||||
1,040,000 | Goldman Sachs Group, Inc. (The), | |||||||
5.250%, 7/27/21 | 1,101,499 | |||||||
1,080,000 | HSBC Holdings PLC (United Kingdom), | |||||||
3.900%, 5/25/26 | 1,077,792 | |||||||
950,000 | Huntington National Bank (The), | |||||||
2.200%, 11/6/18 | 947,335 | |||||||
805,000 | JPMorgan Chase & Co., | |||||||
3.250%, 9/23/22 | 802,617 | |||||||
1,575,000 | JPMorgan Chase & Co., | |||||||
3.509%, 1/23/29 | 1,528,855 | |||||||
1,455,000 | Morgan Stanley, 3.950%, 4/23/27 | 1,416,698 | ||||||
1,800,000 | New York Life Global Funding, 144a, | |||||||
3.000%, 1/10/28 | 1,714,590 | |||||||
1,100,000 | Northwestern Mutual Life Insurance | |||||||
Co. (The), 144a, 3.850%, 9/30/47 | 1,036,564 | |||||||
1,130,000 | PNC Bank NA, 2.700%, 11/1/22 | 1,093,998 | ||||||
1,380,000 | SL Green Operating Partnership LP, | |||||||
3.250%, 10/15/22 | 1,345,875 | |||||||
1,428,000 | VEREIT Operating Partnership LP, | |||||||
4.600%, 2/6/24 | 1,446,436 | |||||||
800,000 | Wells Fargo & Co., 2.100%, 7/26/21 | 772,572 | ||||||
785,000 | Wells Fargo & Co., 4.125%, 8/15/23 | 796,140 | ||||||
35,156,036 | ||||||||
Energy — 2.8% | ||||||||
882,000 | Boardwalk Pipelines LP, | |||||||
4.450%, 7/15/27 | 857,498 | |||||||
993,000 | Cenovus Energy, Inc. (Canada), | |||||||
4.250%, 4/15/27 | 967,921 | |||||||
836,000 | Concho Resources, Inc., | |||||||
3.750%, 10/1/27 | 817,432 | |||||||
795,000 | EOG Resources, Inc., 3.900%, 4/1/35 | 780,015 | ||||||
1,292,000 | Midcontinent Express Pipeline LLC, | |||||||
144a, 6.700%, 9/15/19 | 1,311,380 | |||||||
955,000 | Petroleos Mexicanos (Mexico), | |||||||
4.500%, 1/23/26 | 925,872 | |||||||
1,045,000 | Rockies Express Pipeline LLC, 144a, | |||||||
6.875%, 4/15/40 | 1,205,282 | |||||||
1,082,000 | Sabine Pass Liquefaction LLC, | |||||||
5.000%, 3/15/27 | 1,124,101 | |||||||
1,230,000 | Shell International Finance BV | |||||||
(Netherlands), 1.875%, 5/10/21 | 1,189,759 | |||||||
2,475 | Transocean Phoenix 2 Ltd. (Cayman | |||||||
Islands), 144a, 7.750%, 10/15/24 | 2,630 | |||||||
1,863,000 | Williams Cos., Inc. (The), | |||||||
3.700%, 1/15/23 | 1,811,768 | |||||||
10,993,658 | ||||||||
Information Technology — 2.6% | ||||||||
1,289,000 | Activision Blizzard, Inc., 144a, | |||||||
6.125%, 9/15/23 | 1,348,304 | |||||||
1,750,000 | Apple, Inc., 2.750%, 1/13/25 | 1,684,291 | ||||||
1,303,000 | Apple, Inc., 4.650%, 2/23/46 | 1,434,858 | ||||||
796,000 | Dell International LLC / EMC Corp., | |||||||
144a, 6.020%, 6/15/26 | 857,229 | |||||||
650,000 | Microsoft Corp., 3.500%, 2/12/35 | 642,008 | ||||||
1,073,000 | Oracle Corp., 2.650%, 7/15/26 | 1,003,262 | ||||||
1,185,000 | Oracle Corp., 3.250%, 11/15/27 | 1,155,893 | ||||||
1,400,000 | QUALCOMM, Inc., 3.450%, 5/20/25 | 1,367,019 | ||||||
935,000 | Visa, Inc., 4.150%, 12/14/35 | 995,697 | ||||||
10,488,561 | ||||||||
Telecommunication Services — 2.5% | ||||||||
691,000 | AT&T, Inc., 3.900%, 8/14/27 | 695,757 | ||||||
460,000 | AT&T, Inc., 3.950%, 1/15/25 | 459,714 | ||||||
275,000 | AT&T, Inc., 4.350%, 6/15/45 | 251,303 | ||||||
865,000 | AT&T, Inc., 4.500%, 5/15/35 | 849,563 | ||||||
1,159,000 | Charter Communications Operating | |||||||
LLC / Charter Communications | ||||||||
Operating Capital, | ||||||||
6.484%, 10/23/45 | 1,272,218 | |||||||
1,137,000 | Comcast Corp., 2.850%, 1/15/23 | 1,112,832 | ||||||
814,000 | Comcast Corp., 4.000%, 3/1/48 | 770,389 |
8 |
Touchstone Active Bond Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 28.4% (Continued) | ||||||||
Telecommunication Services — (Continued) | ||||||||
$ | 1,385,000 | Qwest Corp., 6.750%, 12/1/21 | $ | 1,484,842 | ||||
1,479,000 | Telecom Italia SpA/Milano (Italy), | |||||||
144a, 5.303%, 5/30/24 | 1,504,882 | |||||||
550,000 | Verizon Communications, Inc., | |||||||
4.672%, 3/15/55 | 523,148 | |||||||
886,000 | Verizon Communications, Inc., | |||||||
5.012%, 4/15/49 | 912,077 | |||||||
9,836,725 | ||||||||
Consumer Discretionary — 2.3% | ||||||||
1,030,000 | Allergan Sales LLC, 144a, | |||||||
5.000%, 12/15/21 | 1,075,172 | |||||||
1,114,000 | Amazon.com, Inc., 144a, | |||||||
2.800%, 8/22/24 | 1,080,919 | |||||||
1,391,000 | Anheuser-Busch InBev Finance, Inc., | |||||||
4.900%, 2/1/46 | 1,500,209 | |||||||
1,286,000 | Aptiv PLC (Jersey), 3.150%, 11/19/20 | 1,283,648 | ||||||
1,110,000 | AutoNation, Inc., 5.500%, 2/1/20 | 1,155,430 | ||||||
711,000 | Ford Motor Co., 4.750%, 1/15/43 | 648,376 | ||||||
960,000 | Home Depot, Inc. (The), | |||||||
5.950%, 4/1/41 | 1,228,475 | |||||||
1,303,000 | Time Warner, Inc., 3.800%, 2/15/27 | 1,259,780 | ||||||
9,232,009 | ||||||||
Consumer Staples — 2.3% | ||||||||
1,630,000 | CVS Health Corp., 4.300%, 3/25/28 | 1,636,945 | ||||||
735,000 | CVS Health Corp., 5.125%, 7/20/45 | 779,595 | ||||||
1,525,000 | Imperial Brands Finance PLC (United | |||||||
Kingdom), 144a, 4.250%, 7/21/25 | 1,548,001 | |||||||
810,000 | Kraft Heinz Foods Co., 6.875%, 1/26/39 | 999,967 | ||||||
435,000 | Kroger Co. (The), 5.000%, 4/15/42 | 439,536 | ||||||
688,000 | Mead Johnson Nutrition Co., | |||||||
4.125%, 11/15/25 | 706,085 | |||||||
591,000 | Moody’s Corp., 2.750%, 12/15/21 | 580,269 | ||||||
1,114,000 | Reynolds American, Inc., | |||||||
4.450%, 6/12/25 | 1,145,940 | |||||||
1,330,000 | Walmart, Inc., 2.350%, 12/15/22 | 1,294,659 | ||||||
9,130,997 | ||||||||
Health Care — 2.1% | ||||||||
715,000 | Abbott Laboratories, | |||||||
3.750%, 11/30/26 | 711,173 | |||||||
1,162,000 | AbbVie, Inc., 4.450%, 5/14/46 | 1,155,576 | ||||||
795,000 | Allergan Funding SCS (Luxembourg), | |||||||
3.800%, 3/15/25 | 780,995 | |||||||
380,000 | Catholic Health Initiatives, | |||||||
4.200%, 8/1/23 | 391,351 | |||||||
952,000 | Celgene Corp., 5.000%, 8/15/45 | 991,803 | ||||||
1,016,000 | Express Scripts Holding Co., | |||||||
3.300%, 2/25/21 | 1,014,152 | |||||||
1,600,000 | Johnson & Johnson, 2.900%, 1/15/28 | 1,537,778 | ||||||
200,000 | Medtronic Global Holdings SCA | |||||||
(Luxembourg), 3.350%, 4/1/27 | 197,377 | |||||||
180,000 | Mylan NV (Netherlands), | |||||||
3.000%, 12/15/18 | 179,997 | |||||||
426,000 | Shire Acquisitions Investments Ireland | |||||||
DAC (Ireland), 2.400%, 9/23/21 | 411,312 | |||||||
860,000 | Zimmer Biomet Holdings, Inc., | |||||||
3.150%, 4/1/22 | 847,675 | |||||||
320,000 | Zimmer Biomet Holdings, Inc., | |||||||
3.375%, 11/30/21 | 318,310 | |||||||
8,537,499 | ||||||||
Industrials — 1.4% | ||||||||
1,290,000 | Burlington Northern Santa Fe LLC, | |||||||
5.750%, 5/1/40 | 1,586,355 | |||||||
1,420,000 | Eagle Materials, Inc., 4.500%, 8/1/26 | 1,435,620 | ||||||
930,000 | FedEx Corp., 5.100%, 1/15/44 | 1,020,924 | ||||||
920,000 | Roper Technologies, Inc., | |||||||
3.000%, 12/15/20 | 916,802 | |||||||
334,000 | SBA Tower Trust, 144a, | |||||||
2.898%, 10/8/19 | 332,297 | |||||||
280,000 | Vulcan Materials Co., 4.500%, 4/1/25 | 290,774 | ||||||
5,582,772 | ||||||||
Utilities — 1.4% | ||||||||
1,225,000 | Dominion Energy, Inc., | |||||||
2.000%, 8/15/21 | 1,169,840 | |||||||
700,000 | Duke Energy Progress LLC, | |||||||
4.150%, 12/1/44 | 718,681 | |||||||
1,004,000 | Fortis, Inc., (Canada), 3.055%, 10/4/26 | 930,456 | ||||||
945,000 | Oncor Electric Delivery Co. LLC, 144a, | |||||||
3.800%, 9/30/47 | 924,540 | |||||||
1,422,000 | PacifiCorp., 5.750%, 4/1/37 | 1,760,177 | ||||||
5,503,694 | ||||||||
Real Estate — 1.2% | ||||||||
1,296,000 | Crown Castle International Corp., | |||||||
3.650%, 9/1/27 | 1,234,866 | |||||||
832,000 | Digital Realty Trust LP, 2.750%, 2/1/23 | 798,808 | ||||||
853,000 | Mid-America Apartments LP REIT, | |||||||
3.750%, 6/15/24 | 846,741 | |||||||
803,000 | Sabra Health Care LP. REIT, | |||||||
5.125%, 8/15/26 | 774,121 | |||||||
983,000 | Ventas Realty LP, 3.500%, 2/1/25 | 957,151 | ||||||
4,611,687 | ||||||||
Materials — 0.9% | ||||||||
785,000 | Braskem America Finance Co., 144a, | |||||||
7.125%, 7/22/41 | 913,779 | |||||||
225,000 | Newcrest Finance Pty Ltd. (Australia), | |||||||
144a, 4.200%, 10/1/22 | 228,117 | |||||||
416,000 | Newcrest Finance Pty Ltd. (Australia), | |||||||
144a, 4.450%, 11/15/21 | 427,308 | |||||||
535,000 | Petroleos Mexicanos (Mexico), 144a, | |||||||
5.350%, 2/12/28 | 527,724 | |||||||
1,481,000 | Suzano Austria GmbH (Austria), 144a, | |||||||
5.750%, 7/14/26 | 1,555,198 | |||||||
3,652,126 | ||||||||
Total Corporate Bonds | $ | 112,725,764 |
9 |
Touchstone Active Bond Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
U.S. Treasury Obligations — 26.7% | ||||||||
$ | 2,630,000 | U.S. Treasury Bond, 2.750%, 8/15/47 | $ | 2,513,602 | ||||
10,745,000 | U.S. Treasury Bond, 3.000%, 2/15/48 | 10,806,280 | ||||||
1,500,000 | U.S. Treasury Note, 1.125%, 7/31/21 | 1,436,777 | ||||||
1,500,000 | U.S. Treasury Note, 1.375%, 4/30/21 | 1,454,004 | ||||||
1,540,000 | U.S. Treasury Note, 1.750%, 6/30/22 | 1,492,537 | ||||||
3,350,000 | U.S. Treasury Note, 1.875%, 4/30/22 | 3,267,166 | ||||||
53,995,000 | U.S. Treasury Note, 2.000%, 1/31/20 | 53,737,680 | ||||||
5,125,000 | U.S. Treasury Note, 2.000%, 10/31/22 | 5,004,883 | ||||||
26,295,000 | U.S. Treasury Note, 2.750%, 2/15/28 | 26,308,353 | ||||||
Total U.S. Treasury Obligations | $ | 106,021,282 | ||||||
U.S. Government Mortgage-Backed | ||||||||
Obligations — 23.3% | ||||||||
19,992 | FHLMC, Pool #1B3366, (12M LIBOR | |||||||
+1.783%), 3.783%, 3/1/37(A) | 20,794 | |||||||
125,868 | FHLMC, Pool #1H1348, (1 Year CMT | |||||||
Rate +2.140%), 3.283%, 10/1/36(A) | 131,719 | |||||||
318,194 | FHLMC, Pool #1Q0339, (12M LIBOR | |||||||
+1.916%), 3.769%, 4/1/37(A) | 334,722 | |||||||
20,192 | FHLMC, Pool #A12886, 5.000%, 8/1/33 | 21,834 | ||||||
59,407 | FHLMC, Pool #A13842, 6.000%, 9/1/33 | 65,983 | ||||||
12,646 | FHLMC, Pool #A21415, 5.000%, 5/1/34 | 13,592 | ||||||
28,352 | FHLMC, Pool #A35682, 5.000%, 7/1/35 | 30,500 | ||||||
14,601 | FHLMC, Pool #A36523, 5.000%, 8/1/35 | 15,705 | ||||||
82,673 | FHLMC, Pool #A46590, 5.000%, 8/1/35 | 88,320 | ||||||
22,573 | FHLMC, Pool #A56988, 5.500%, 2/1/37 | 24,759 | ||||||
6,795 | FHLMC, Pool #A64971, 5.500%, 8/1/37 | 7,499 | ||||||
3,961,550 | FHLMC, Pool #A89148, | |||||||
4.000%, 10/1/39 | 4,098,751 | |||||||
139,134 | FHLMC, Pool #A96485, 4.500%, 1/1/41 | 147,191 | ||||||
711,750 | FHLMC, Pool #A97897, 4.500%, 4/1/41 | 755,976 | ||||||
19,634 | FHLMC, Pool #C62740, 7.000%, 1/1/32 | 21,479 | ||||||
25,271 | FHLMC, Pool #C72254, 6.500%, 7/1/32 | 28,503 | ||||||
80,755 | FHLMC, Pool #C90986, 7.000%, 6/1/26 | 85,931 | ||||||
23,657 | FHLMC, Pool #G02184, 5.000%, 4/1/36 | 25,518 | ||||||
3,366,446 | FHLMC, Pool #G05483, 4.500%, 6/1/39 | 3,550,609 | ||||||
3,899,574 | FHLMC, Pool #G05624, 4.500%, 9/1/39 | 4,115,612 | ||||||
379,102 | FHLMC, Pool #G05733, | |||||||
5.000%, 11/1/39 | 410,287 | |||||||
215,636 | FHLMC, Pool #J13584, | |||||||
3.500%, 11/1/25 | 220,232 | |||||||
2,830,395 | FHLMC, Pool #Q29056, | |||||||
4.000%, 10/1/44 | 2,912,284 | |||||||
6,328,072 | FHLMC, Pool #Q32917, 3.000%, 4/1/45 | 6,200,740 | ||||||
6,836,818 | FHLMC, Pool #Q33006, 3.500%, 4/1/45 | 6,864,861 | ||||||
80,563 | FNMA, Pool #255628, 5.500%, 2/1/25 | 87,457 | ||||||
15,182 | FNMA, Pool #426830, 8.000%, 11/1/24 | 15,626 | ||||||
2,492 | FNMA, Pool #432269, 6.500%, 8/1/28 | 2,781 | ||||||
1 | FNMA, Pool #535290, 8.000%, 5/1/30 | 1 | ||||||
9,613 | FNMA, Pool #540040, 7.500%, 6/1/28 | 9,627 | ||||||
20,119 | FNMA, Pool #561741, 7.500%, 1/1/31 | 22,703 | ||||||
36,317 | FNMA, Pool #640291, 7.000%, 8/1/32 | 37,048 | ||||||
31,756 | FNMA, Pool #653301, 6.500%, 7/1/32 | 35,439 | ||||||
67,386 | FNMA, Pool #653502, 6.500%, 7/1/32 | 75,202 | ||||||
37,290 | FNMA, Pool #670402, 6.500%, 6/1/32 | 41,615 | ||||||
5,224 | FNMA, Pool #725906, (12M LIBOR | |||||||
+1.617%), 3.367%, 8/1/34(A) | 5,478 | |||||||
111,432 | FNMA, Pool #738887, 5.500%, 10/1/33 | 121,019 | ||||||
200,646 | FNMA, Pool #745257, 6.000%, 1/1/36 | 223,949 | ||||||
1,838 | FNMA, Pool #745974, (12M LIBOR | |||||||
+1.853%), 3.607%, 10/1/36(A) | 1,934 | |||||||
92,386 | FNMA, Pool #748895, 6.000%, 12/1/33 | 98,111 | ||||||
157,990 | FNMA, Pool #758564, 6.000%, 9/1/24 | 175,559 | ||||||
104,352 | FNMA, Pool #810049, 5.500%, 3/1/35 | 113,780 | ||||||
143,908 | FNMA, Pool #819297, 6.000%, 9/1/35 | 161,672 | ||||||
829,552 | FNMA, Pool #881279, 5.000%, 11/1/36 | 897,422 | ||||||
45,228 | FNMA, Pool #889060, 6.000%, 1/1/38 | 50,501 | ||||||
98,320 | FNMA, Pool #889061, 6.000%, 1/1/38 | 111,378 | ||||||
3,071,440 | FNMA, Pool #890310, 4.500%, 12/1/40 | 3,248,694 | ||||||
36,946 | FNMA, Pool #893003, 7.000%, 9/1/36 | 38,416 | ||||||
12,162 | FNMA, Pool #895657, 6.500%, 8/1/36 | 13,251 | ||||||
181,563 | FNMA, Pool #905049, 5.500%, 11/1/36 | 197,101 | ||||||
88,549 | FNMA, Pool #908944, 5.500%, 1/1/37 | 96,127 | ||||||
535,825 | FNMA, Pool #928553, 5.500%, 8/1/37 | 599,645 | ||||||
1,338,206 | FNMA, Pool #931535, 5.500%, 7/1/39 | 1,446,435 | ||||||
275,457 | FNMA, Pool #AA3467, 4.500%, 4/1/39 | 291,598 | ||||||
434,095 | FNMA, Pool #AA4584, 4.500%, 4/1/39 | 459,424 | ||||||
101,171 | FNMA, Pool #AB1800, 4.000%, 11/1/40 | 104,687 | ||||||
344,052 | FNMA, Pool #AB2452, 4.000%, 3/1/26 | 358,368 | ||||||
3,724,794 | FNMA, Pool #AB7845, 3.000%, 2/1/43 | 3,667,398 | ||||||
106,610 | FNMA, Pool #AD3775, 4.500%, 3/1/25 | 111,162 | ||||||
134,576 | FNMA, Pool #AD6193, 5.000%, 6/1/40 | 144,974 | ||||||
5,236,882 | FNMA, Pool #AD9193, 5.000%, 9/1/40 | 5,661,244 | ||||||
3,845,670 | FNMA, Pool #AE0215, 4.000%, 12/1/39 | 3,974,438 | ||||||
357,442 | FNMA, Pool #AE0996, 4.000%, 2/1/41 | 369,878 | ||||||
203,139 | FNMA, Pool #AE1568, 4.000%, 9/1/40 | 209,994 | ||||||
630,251 | FNMA, Pool #AE2497, 4.500%, 9/1/40 | 669,263 | ||||||
88,725 | FNMA, Pool #AE5441, 5.000%, 10/1/40 | 95,349 | ||||||
333,162 | FNMA, Pool #AH1135, 5.000%, 1/1/41 | 360,184 | ||||||
484,701 | FNMA, Pool #AH3483, 3.500%, 2/1/26 | 494,917 | ||||||
186,541 | FNMA, Pool #AH3671, 4.000%, 2/1/26 | 194,455 | ||||||
552,478 | FNMA, Pool #AH6622, 4.000%, 3/1/41 | 573,475 | ||||||
713,818 | FNMA, Pool #AL0150, 4.000%, 2/1/41 | 738,596 | ||||||
155,351 | FNMA, Pool #AL0211, 5.000%, 4/1/41 | 167,799 | ||||||
4,142,375 | FNMA, Pool #AL2860, 3.000%, 12/1/42 | 4,078,458 | ||||||
5,765,494 | FNMA, Pool #AL5718, 3.500%, 9/1/44 | 5,808,229 | ||||||
2,873,665 | FNMA, Pool #AS0779, 4.000%, 10/1/43 | 2,974,674 | ||||||
73,637 | FNMA, Pool #AS7813, 4.000%, 8/1/46 | 75,620 | ||||||
4,467,628 | FNMA, Pool #AS8703, 2.500%, 2/1/32 | 4,379,909 | ||||||
1,076,212 | FNMA, Pool #AS8855, 3.500%, 2/1/37 | 1,094,230 | ||||||
9,316,255 | FNMA, Pool #BC1809, 3.500%, 5/1/46 | 9,346,348 | ||||||
1,091,398 | FNMA, Pool #BH6180, 4.000%, 7/1/47 | 1,121,395 | ||||||
1,890,670 | GNMA, Pool #4424, 5.000%, 4/20/39 | 2,028,946 | ||||||
32,471 | GNMA, Pool #5305, 4.000%, 2/20/42 | 33,944 | ||||||
2,750,000 | GNMA, Ser 2010-169, Class AW, | |||||||
4.500%, 12/20/40 | 2,873,168 | |||||||
8,149,822 | GNMA, Ser 2012-147, Class IO, | |||||||
0.567%, 4/16/54(A)(B)(C) | 277,682 | |||||||
4,425,381 | GNMA, Ser 2016-113, Class IO, | |||||||
1.193%, 2/16/58(A)(B)(C) | 387,077 |
10 |
Touchstone Active Bond Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
U.S. Government Mortgage-Backed | ||||||||
Obligations — 23.3% (Continued) | ||||||||
$ | 17,437,373 | GNMA, Ser 2016-140, Class IO, | ||||||
0.936%, 5/16/58(A)(B)(C) | $ | 1,333,241 | ||||||
139,561 | GNMA, Ser 2017-120, Class UZ, | |||||||
4.000%, 8/20/47 | 135,227 | |||||||
Total U.S. Government | ||||||||
Mortgage-Backed Obligations | $ | 92,716,723 |
Shares | ||||||||
Exchange-Traded Fund — 8.7% | ||||||||
295,918 | iShares iBoxx $ Investment Grade | |||||||
Corporate Bond ETF | $ | 34,737,814 |
Principal | ||||||||
Amount | ||||||||
Non-Agency Collateralized Mortgage | ||||||||
Obligations — 3.1% | ||||||||
$ | 3,649 | Adjustable Rate Mortgage Trust, Ser | ||||||
2004-4, Class 3A1, | ||||||||
3.527%, 3/25/35(A)(C) | 3,585 | |||||||
2,181,504 | Agate Bay Mortgage Trust, Ser 2015-7, | |||||||
Class B1, 144a, | ||||||||
3.763%, 10/25/45(A)(C) | 2,191,890 | |||||||
179,666 | Alternative Loan Trust, Ser 2004-30CB, | |||||||
Class 3A1, 5.000%, 2/25/20 | 176,080 | |||||||
7,391 | Alternative Loan Trust, Ser 2005-J3, | |||||||
Class 3A1, 6.500%, 9/25/34 | 7,467 | |||||||
37,350 | CSFB Mortgage-Backed Trust, Ser | |||||||
2004-7, Class 6A1, 5.250%, 10/25/19 | 37,641 | |||||||
2,180,427 | CSMC Trust, Ser 2015-1, Class B3, 144a, | |||||||
3.944%, 1/25/45(A)(C) | 2,118,886 | |||||||
2,220,529 | CSMC Trust, Ser 2015-WIN1, Class B3, | |||||||
144a, 3.865%, 12/25/44(A)(C) | 2,201,653 | |||||||
88,281 | JP Morgan Mortgage Trust, Ser | |||||||
2005-A1, Class 2A1, | ||||||||
3.494%, 2/25/35(A)(C) | 89,794 | |||||||
219,022 | JP Morgan Mortgage Trust, Ser | |||||||
2005-A2, Class 7CB1, | ||||||||
3.681%, 4/25/35(A)(C) | 221,578 | |||||||
50,908 | JP Morgan Mortgage Trust, Ser | |||||||
2006-A4, Class 2A2, | ||||||||
3.430%, 6/25/36(A)(C) | 48,263 | |||||||
33,850 | MASTR Alternative Loans Trust, Ser | |||||||
2004-7, Class 10A1, 6.000%, 6/25/34 | 34,034 | |||||||
2,225,307 | PMT Loan Trust, Ser 2013-J1, Class A11, | |||||||
144a, 3.500%, 9/25/43(A)(C) | 2,212,528 | |||||||
190,166 | Residential Asset Securitization Trust, | |||||||
Ser 2006-A1, Class 1A3, | ||||||||
6.000%, 4/25/36 | 148,968 | |||||||
329,075 | Sequoia Mortgage Trust, Ser 2013-1, | |||||||
Class B1, 3.637%, 2/25/43(A)(C) | 329,144 | |||||||
385,841 | Sequoia Mortgage Trust, Ser 2013-1, | |||||||
Class B2, 3.638%, 2/25/43(A)(C) | 384,960 | |||||||
578,371 | Sequoia Mortgage Trust, Ser 2013-10, | |||||||
Class B2, 144a, 3.561%, 8/25/43(A)(C) | 574,124 | |||||||
572,101 | Sequoia Mortgage Trust, Ser 2013-5, | |||||||
Class B1, 144a, 3.515%, 5/25/43(A)(C) | 572,628 | |||||||
723 | Structured Asset Securities Corp. | |||||||
Mortgage Pass-Through | ||||||||
Certificates, Ser 2004-21XS, Class | ||||||||
2A6B, 5.650%, 12/25/34(D) | 719 | |||||||
116,526 | Structured Asset Securities Corp. Trust, | |||||||
Ser 2005-17, Class 5A1, | ||||||||
5.500%, 10/25/35 | 94,366 | |||||||
700,000 | Towd Point Mortgage Trust, Ser | |||||||
2015-3, Class A2, 144a, | ||||||||
4.000%, 3/25/54(A)(C) | 715,739 | |||||||
102,407 | Washington Mutual Alternative | |||||||
Mortgage Pass-Through | ||||||||
Certificates, Ser 2005-9, Class 2A4, | ||||||||
5.500%, 11/25/35 | 94,865 | |||||||
99,258 | Wells Fargo Mortgage Backed | |||||||
Securities Trust, Ser 2003-G, Class | ||||||||
A1, 3.365%, 6/25/33(A)(C) | 100,328 | |||||||
Total Non-Agency Collateralized | ||||||||
Mortgage Obligations | $ | 12,359,240 | ||||||
Asset-Backed Securities — 2.8% | ||||||||
475,000 | Ascentium Equipment Receivables | |||||||
Trust, Ser 2016-1A, Class B, 144a, | ||||||||
2.850%, 7/10/20 | 475,348 | |||||||
3,191 | CIT Home Equity Loan Trust, Ser | |||||||
2002-1, Class AF5, | ||||||||
7.210%, 2/25/33(D) | 3,289 | |||||||
363,711 | CWHEQ Home Equity Loan Trust, Ser | |||||||
2007-S1, Class A5, | ||||||||
6.018%, 11/25/36(A)(C) | 362,958 | |||||||
499,976 | Elara HGV Timeshare Issuer LLC, Ser | |||||||
2017-A, Class A, 144a, | ||||||||
2.690%, 3/25/30 | 491,580 | |||||||
300,011 | FFMLT Trust, Ser 2005-FFA, Class M3, | |||||||
6.017%, 3/25/25(D) | 317,536 | |||||||
3,350,000 | Hertz Vehicle Financing II LP, Ser | |||||||
2016-4A, Class A, 144a, | ||||||||
2.650%, 7/25/22 | 3,272,290 | |||||||
1,376,556 | Mid-State Capital Corp. Trust, Ser | |||||||
2005-1, Class M2, 7.079%, 1/15/40 | 1,500,591 | |||||||
330,594 | Orange Lake Timeshare Trust, Ser | |||||||
2016-A, Class A, 144a, | ||||||||
2.610%, 3/8/29 | 324,034 | |||||||
1,440 | RASC Trust, Ser 2001-KS3, Class AI6, | |||||||
5.960%, 9/25/31(A)(C) | 1,502 | |||||||
297,979 | Sonic Capital LLC, Ser 2016-1A, Class | |||||||
A2, 144a, 4.472%, 5/20/46 | 303,695 | |||||||
310,128 | SpringCastle America Funding LLC, | |||||||
Ser 2016-AA, Class A, 144a, | ||||||||
3.050%, 4/25/29 | 309,686 |
11 |
Touchstone Active Bond Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Asset-Backed Securities — 2.8% (Continued) | ||||||||
$ | 600,000 | Voya Clo Ltd. (Cayman Islands), Ser | ||||||
2017-4A, Class A1, 144a, (3M LIBOR | ||||||||
+1.130%), 2.514%, 10/15/30(A) | $ | 603,473 | ||||||
3,316,688 | Wendys Funding LLC, Ser 2018-1A, | |||||||
Class A2I, 144a, 3.573%, 3/15/48 | 3,276,357 | |||||||
Total Asset-Backed Securities | $ | 11,242,339 | ||||||
Agency Collateralized Mortgage | ||||||||
Obligations — 2.5% | ||||||||
5,748,858 | FHLMC REMIC, Ser 3331 Class PE, | |||||||
6.000%, 6/15/37 | 6,244,626 | |||||||
1,645,721 | FHLMC REMIC, Ser 3859 Class JB, | |||||||
5.000%, 5/15/41 | 1,757,577 | |||||||
190,490 | FHLMC Structured Pass Through | |||||||
Securities, Ser T-20, Class A5, | ||||||||
6.634%, 12/25/29(D) | 218,655 | |||||||
303,031 | FNMA REMIC, Ser 2003-32, Class BZ, | |||||||
6.000%, 11/25/32 | 332,884 | |||||||
2,723,598 | FNMA REMIC, Ser 2012-47, Class AI, | |||||||
3.000%, 5/25/22 | 123,802 | |||||||
109,863 | FNMA REMIC, Ser 2015-51, Class KC, | |||||||
3.000%, 6/25/45 | 108,571 | |||||||
1,055,614 | FNMA REMIC, Ser 2017-90, Class KA, | |||||||
3.000%, 11/25/47 | 1,048,145 | |||||||
37,260 | FNMA REMIC Trust, Ser 2001-W2, Class | |||||||
AF6, 6.589%, 10/25/31(D) | 39,438 | |||||||
115,245 | FNMA Trust, Ser 2004-W15, Class 2AF, | |||||||
(1M LIBOR +0.250%), | ||||||||
2.122%, 8/25/44(A) | 114,474 | |||||||
Total Agency Collateralized | ||||||||
Mortgage Obligations | $ | 9,988,172 | ||||||
Commercial Mortgage-Backed Securities — 1.5% | ||||||||
472,000 | 280 Park Avenue 2017-280P Mortgage | |||||||
Trust, Ser 2017-280P, Class A, 144a, | ||||||||
(1M LIBOR +0.880%), | ||||||||
2.657%, 9/15/34(A) | 473,850 | |||||||
580,000 | DBUBS Mortgage Trust, Ser | |||||||
2017-BRBK, Class B, 144a, | ||||||||
3.530%, 10/10/34(A)(C) | 573,951 | |||||||
550,000 | Eleven Madison Trust Mortgage Trust, | |||||||
Ser 2015-11MD, Class C, 144a, | ||||||||
3.555%, 9/10/35(A)(C) | 537,852 | |||||||
595,000 | GS Mortgage Securities Corp. II, Ser | |||||||
2017-SLP, Class B, 144a, | ||||||||
3.772%, 10/10/32 | 598,218 | |||||||
3,400,000 | GS Mortgage Securities Trust, Ser | |||||||
2017-FARM, Class B, 144a, | ||||||||
3.541%, 1/10/43(A)(C) | 3,300,461 | |||||||
528,000 | J.P. Morgan Chase Commercial | |||||||
Mortgage Securities Trust, Ser | ||||||||
2016-NINE, Class B, 144a, | ||||||||
2.854%, 10/6/38(A)(C) | 492,532 | |||||||
Total Commercial | ||||||||
Mortgage-Backed Securities | $ | 5,976,864 | ||||||
Sovereign Government Obligations — 1.3% | ||||||||
253,000 | Bermuda Government International | |||||||
Bond, 144a, 3.717%, 1/25/27 | 246,675 | |||||||
844,000 | Colombia Government International | |||||||
Bond, 5.000%, 6/15/45 | 855,605 | |||||||
1,110,000 | Mexico Government International | |||||||
Bond, 4.350%, 1/15/47 | 1,014,407 | |||||||
432,000 | Portugal Government International | |||||||
Bond, 144a, 5.125%, 10/15/24 | 459,467 | |||||||
1,135,000 | Province of Alberta Canada, 2.200%, | |||||||
7/26/22 | 1,101,378 | |||||||
1,333,000 | Province of Ontario Canada, 1.875%, | |||||||
5/21/20 | 1,311,773 | |||||||
Total Sovereign Government | ||||||||
Obligations | $ | 4,989,305 |
Shares | ||||||||
Preferred Stocks — 0.4% | ||||||||
Utilities — 0.4% | ||||||||
6,871 | Entergy Louisiana LLC, 4.875% | 165,591 | ||||||
55,359 | Integrys Holding, Inc, 6.000% | 1,453,174 | ||||||
Total Preferred Stocks | $ | 1,618,765 |
Principal | ||||||||
Amount | ||||||||
Bank Loan — 0.4% | ||||||||
Information Technology — 0.4% | ||||||||
$ | 1,404,975 | Micron Technology Inc., Term Loan, | ||||||
(LIBOR +2.000%), | ||||||||
3.880%, 4/26/22(A)(E) | $ | 1,413,321 |
Shares | ||||||||
Short-Term Investment Fund — 0.3% | ||||||||
1,117,479 | Dreyfus Government Cash | |||||||
Management, Institutional Shares, | ||||||||
1.54%∞Ω | $ | 1,117,479 | ||||||
Total Investment Securities —99.4% | ||||||||
(Cost $397,778,911) | $ | 394,907,068 | ||||||
Other Assets in | ||||||||
Excess of Liabilities — 0.6% | 2,235,078 | |||||||
Net Assets — 100.0% | $ | 397,142,146 |
12 |
Touchstone Active Bond Fund (Unaudited) (Continued)
(A) | Variable rate security - Rate reflected is the rate in effect as of March 31, 2018. |
(B) | Interest only security - This type of security represents the right to receive the monthly interest payments on an underlying pool of mortgages. Payments of principal on the pool reduce the value of the “interest only” holding. |
(C) | Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description. |
(D) | Step Bond - A bond that pays an initial interest rate for the first period and then a higher interest rate for the following periods until maturity. The interest rate shown reflects the rate in effect as of March 31, 2018. |
(E) | Bank loans pay interest at rates which adjust periodically unless otherwise indicated. The interest rates shown are the current interest rates as of March 31, 2018. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2018. |
Portfolio Abbreviations:
CMT - Constant Maturity Treasury
DAC - Designated Activity Company
ETF - Exchange-Traded Fund
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
GNMA - Government National Mortgage Association
LIBOR - London Inter Bank Offered Rate
LLC - Limited Liability Company
LP - Limited Partnership
MTN - Medium Term Note
PLC - Public Limited Company
REIT - Real Estate Investment Trust
REMIC - Real Estate Mortgage Investment Conduit
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, 2018, these securities were valued at $43,920,833 or 11.1% 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: | ||||||||||||||||
Corporate Bonds | $ | — | $ | 112,725,764 | $ | — | $ | 112,725,764 | ||||||||
U.S. Treasury Obligations | — | 106,021,282 | — | 106,021,282 | ||||||||||||
U.S. Government Mortgage-Backed Obligations | — | 92,716,723 | — | 92,716,723 | ||||||||||||
Exchanged-Traded Fund | 34,737,814 | — | — | 34,737,814 | ||||||||||||
Non-Agency Collateralized Mortgage Obligations | — | 12,359,240 | — | 12,359,240 | ||||||||||||
Asset-Backed Securities | — | 11,242,339 | — | 11,242,339 | ||||||||||||
Agency Collateralized Mortgage Obligations | — | 9,988,172 | — | 9,988,172 | ||||||||||||
Commercial Mortgage-Backed Securities | — | 5,976,864 | — | 5,976,864 | ||||||||||||
Sovereign Government Obligations | — | 4,989,305 | — | 4,989,305 | ||||||||||||
Preferred Stocks | 1,618,765 | — | — | 1,618,765 | ||||||||||||
Bank Loan | — | 1,413,321 | — | 1,413,321 | ||||||||||||
Short-Term Investment Fund | 1,117,479 | — | — | 1,117,479 | ||||||||||||
Total Assets | $ | 37,474,058 | $ | 357,433,010 | $ | — | $ | 394,907,068 |
See accompanying Notes to Financial Statements.
13 |
Touchstone Arbitrage Fund – March 31, 2018 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 103.7% | ||||||||
Financials — 53.1% | ||||||||
Avista Healthcare Public Acquisition Corp. - Class A (Cayman Islands)* | 157,745 | $ | 1,575,873 | |||||
Black Ridge Acquisition Corp.* | 209,176 | 2,026,915 | ||||||
Blackhawk Network Holdings, Inc.* | 85,830 | 3,836,601 | ||||||
Capitol Investment Corp. IV - Class A (Cayman Islands)* | 276,708 | 2,678,533 | ||||||
Capitol Investment Corp. IV (Cayman Islands)* | 265,056 | 2,677,066 | ||||||
DFB Healthcare Acquisitions Corp.* | 117,500 | 1,180,875 | ||||||
Federal Street Acquisition Corp. - Class A* | 616,904 | 5,965,462 | ||||||
GigCapital, Inc.* | 214,153 | 2,222,908 | ||||||
Gores Holdings II, Inc., Class A* | 436,451 | 4,364,510 | ||||||
GTY Technology Holdings, Inc., Class A (Cayman Islands)* | 394,646 | 3,910,942 | ||||||
Haymaker Acquisition Corp.* | 650,000 | 6,467,500 | ||||||
Hennessy Capital Acquisition Corp. III* | 129,032 | 1,277,417 | ||||||
Industrea Acquisition Corp.* | 16,602 | 169,174 | ||||||
Industrea Acquisition Corp., Class A* | 124,630 | 1,222,620 | ||||||
Kayne Anderson Acquisition Corp., Class A*† | 684,928 | 6,705,445 | ||||||
Landcadia Holdings, Inc.*† | 439,709 | 4,414,678 | ||||||
Legacy Acquisition Corp.* | 510,000 | 5,074,500 | ||||||
Leisure Acquisition Corp.* | 303,000 | 2,990,610 | ||||||
Leo Holdings Corp. (Cayman Islands)* | 230,000 | 2,300,000 | ||||||
Matlin and Partners Acquisition Corp. - Class A*† | 497,003 | 4,870,629 | ||||||
Mosaic Acquisition Corp. (Cayman Islands)* | 617,263 | 6,209,666 | ||||||
Mudrick Capital Acquisition Corp.* | 203,704 | 2,067,596 | ||||||
Nebula Acquisition Corp.* | 190,000 | 1,922,800 | ||||||
One Madison Corp. (Cayman Islands)* | 330,000 | 3,300,000 | ||||||
Pensare Acquisition Corp.* | 423,360 | 4,115,059 | ||||||
Platinum Eagle Acquisition Corp. (Cayman Islands)* | 180,747 | 1,834,582 | ||||||
Regalwood Global Energy Ltd. (Cayman Islands)* | 299,930 | 3,023,294 | ||||||
Saban Capital Acquisition Corp. - Class A (Cayman Islands)*† | 403,731 | 4,013,086 | ||||||
Saban Capital Acquisition Corp. (Cayman Islands)* | 102,452 | 1,073,697 | ||||||
Sentinel Energy Services, Inc. (Cayman Islands)* | 253,500 | 2,514,720 | ||||||
Social Capital Hedosophia Holdings Corp. (Cayman Islands)* | 23,600 | 249,452 | ||||||
Tiberius Acquisition Corp.* | 167,680 | 1,678,477 | ||||||
TPG Pace Energy Holdings Corp., Class A* | 493,171 | 4,985,959 | ||||||
TPG Pace Energy Holdings Corp., Class A* | 208,937 | 386,533 | ||||||
TPG Pace Holdings Corp., Class A (Cayman Islands)* | 618,648 | 6,038,004 | ||||||
Validus Holdings Ltd. (Bermuda) | 110,365 | 7,444,119 | ||||||
Vantage Energy Acquisition Corp., Class A† | 573,351 | 5,613,106 | ||||||
XL Group Ltd. (Bermuda) | 134,650 | 7,440,759 | ||||||
129,843,167 | ||||||||
Information Technology — 16.3% | ||||||||
Callidus Software, Inc.* | 27,997 | 1,006,492 | ||||||
CSRA, Inc. | 183,650 | 7,571,890 | ||||||
DST Systems, Inc. | 99,110 | 8,290,552 | ||||||
Microsemi Corp.* | 105,500 | 6,827,960 | ||||||
MuleSoft, Inc., Class A* | 153,300 | 6,742,134 | ||||||
NXP Semiconductors NV (Netherlands)* | 79,700 | 9,324,900 | ||||||
39,763,928 | ||||||||
Consumer Discretionary — 7.2% | ||||||||
Lennar Corp. - Class A | 32,500 | 1,915,550 | ||||||
Lennar Corp. - Class B†† | 33,157 | 1,581,257 | ||||||
Time Warner, Inc.†† | 70,000 | 6,620,600 | ||||||
Tribune Media Co., Class A†† | 183,460 | 7,431,965 | ||||||
17,549,372 | ||||||||
Industrials — 6.1% | ||||||||
Orbital ATK, Inc.†† | 40,510 | 5,372,031 | ||||||
Rockwell Collins, Inc. | 51,470 | 6,940,730 | ||||||
Student Transportation, Inc. (Canada)† | 353,943 | 2,651,033 | ||||||
14,963,794 | ||||||||
Materials — 5.6% | ||||||||
KapStone Paper and Packaging Corp. | 178,450 | 6,122,620 | ||||||
Monsanto Co.†† | 65,430 | 7,635,027 | ||||||
13,757,647 | ||||||||
Utilities — 5.2% | ||||||||
Avista Corp. | 91,699 | 4,699,574 | ||||||
Dynegy, Inc.* | 586,028 | 7,923,099 | ||||||
12,622,673 | ||||||||
Health Care — 3.5% | ||||||||
Ablynx NV. ADR* | 77,300 | 4,217,488 | ||||||
Akorn, Inc.*†† | 230,295 | 4,308,819 | ||||||
8,526,307 | ||||||||
Energy — 2.7% | ||||||||
Alta Mesa Resources, Inc.*† | 289,159 | 2,313,272 | ||||||
RSP Permian, Inc.* | 91,800 | 4,303,584 | ||||||
6,616,856 | ||||||||
Consumer Staples — 2.5% | ||||||||
Blue Buffalo Pet Products, Inc.*†† | 126,158 | 5,022,350 | ||||||
Rite Aid Corp.*† | 697,942 | 1,172,543 | ||||||
6,194,893 | ||||||||
Telecommunication Services — 1.5% | ||||||||
TDC A/S (Denmark)* | 432,700 | 3,579,527 | ||||||
Total Common Stocks | $ | 253,418,164 |
14 |
Touchstone Arbitrage Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 3.1% | ||||||||
Financials — 1.7% | ||||||||
$ | 1,000,000 | Allstate Corp. (The), (3M LIBOR | ||||||
+1.935%), 3.774%, 5/15/37(A) | $ | 985,000 | ||||||
800,000 | Banco Bilbao Vizcaya Argentaria SA | |||||||
(Spain), 9.000%(B) | 804,304 | |||||||
1,000,000 | Cooperatieve Rabobank UA | |||||||
(Netherlands), 144a, 11.000%(B) | 1,093,510 | |||||||
500,000 | Corestates Capital III, 144a, (3M LIBOR | |||||||
+0.570%), 2.409%, 2/15/27(A) | 468,750 | |||||||
500,000 | JPMorgan Chase & Co., (3M LIBOR | |||||||
+0.950%), 2.643%, 9/30/34 (A) | 457,500 | |||||||
375,000 | NB Capital Trust III, (3M LIBOR | |||||||
+0.550%), 2.270%, 1/15/27(A) | 352,030 | |||||||
4,161,094 | ||||||||
Consumer Discretionary — 0.5% | ||||||||
1,100,000 | Williams Scotsman International, Inc., | |||||||
144a, 7.875%, 12/15/22 | 1,137,813 | |||||||
Energy — 0.4% | ||||||||
1,050,000 | Alta Mesa Holdings LP / Alta Mesa | |||||||
Finance Services Corp., | ||||||||
7.875%, 12/15/24 | 1,093,312 | |||||||
Materials — 0.4% | ||||||||
1,000,000 | Silgan Holdings, Inc., 5.500%, 2/1/22 | 1,017,500 | ||||||
Telecommunication Services — 0.1% | ||||||||
250,000 | Nexstar Broadcasting, Inc., 144a, | |||||||
6.125%, 2/15/22 | 256,800 | |||||||
Total Corporate Bonds | $ | 7,666,519 |
Shares | ||||||||
Warrants — 0.8% | ||||||||
Financials — 0.7% | ||||||||
Avista Healthcare Public, Class A (Cayman Islands), Exp 12/2/21, Price $5.75* | 344,500 | 113,685 | ||||||
Black Ridge Acquisition Corp., Exp 10/25/22 Price $11.50* | 209,176 | 73,212 | ||||||
Constellation Alpha Capital Corp., Class R (Cayman Islands), Exp 3/23/24, Price $11.50* | 473,050 | 113,532 | ||||||
Federal Street Acquisition Corp., Class A, Exp 7/24/22 Price $11.50* | 260,779 | 299,896 | ||||||
Gores Holdings II, Inc., Class A, Exp 3/6/22, Price $11.50* | 48,125 | 81,812 | ||||||
GTY Technology Holdings, Inc., Class A (Cayman Islands), Exp 11/14/21, Price $11.50* | 55,788 | 68,619 | ||||||
Kayne Anderson Acquisition Corp., Class A, Exp 6/30/22 Price $11.50* | 188,433 | 175,243 | ||||||
Landcadia Holdings, Inc., Exp 6/1/23 Price $11.50* | 67,205 | 49,396 | ||||||
Matlin and Partners Acquisition Corp., Class A, Exp 5/28/21 Price $11.50* | 352,355 | 186,748 | ||||||
Pensare Acquisition Corp., Exp 8/8/22, Price $11.50* | 149,180 | 74,590 | ||||||
TPG Pace Holdings Corp. - Class A, Exp 8/18/22 Price $11.50* | 178,957 | 277,383 | ||||||
Vantage Energy Acquisition Corp., Class A, Exp 4/12/24, Price $11.50* | 117,058 | 152,175 | ||||||
Williams Scotsman Corp., Exp 11/29/22, Price $11.50 | 57,839 | 96,591 | ||||||
Energy — 0.1% | ||||||||
Alta Mesa Resources, Inc., Exp 02/09/23, Price $7.34 | 182,131 | 282,303 | ||||||
Total Warrants | $ | 2,045,185 | ||||||
Exchange-Traded Funds — 0.2% | ||||||||
Consumer Discretionary Select Sector SPDR Fund | 857 | 86,806 | ||||||
Consumer Staples Select Sector SPDR Fund | 496 | 26,104 | ||||||
Financial Select Sector SPDR Fund | 3,210 | 88,500 | ||||||
Health Care Select Sector SPDR Fund | 262 | 21,327 | ||||||
Industrial Select Sector SPDR Fund | 957 | 71,096 | ||||||
Materials Select Sector SPDR Fund | 88 | 5,011 | ||||||
Technology Select Sector SPDR Fund | 783 | 51,224 | ||||||
Total Exchange-Traded Funds | $ | 350,068 |
Number | ||||||||||
of | Notional | |||||||||
Contracts | Amount | |||||||||
Purchased Options — 0.1% | ||||||||||
Purchased Call Options — 0.1% | ||||||||||
SPDR S&P 500 ETF Trust., | ||||||||||
Strike @260.00, | ||||||||||
Exp 05/18 | 50 | $ | 1,315,750 | 21,800 | ||||||
SPDR S&P 500 ETF Trust., | ||||||||||
Strike @264.00, | ||||||||||
Exp 04/18 | 80 | 2,105,200 | 34,000 | |||||||
SPDR S&P 500 ETF Trust., | ||||||||||
Strike @267.00, | ||||||||||
Exp 04/18 | 74 | 1,947,310 | 47,656 | |||||||
SPDR S&P 500 ETF Trust., | ||||||||||
Strike @270.00, | ||||||||||
Exp 04/18 | 146 | 3,841,990 | 123,662 | |||||||
Total Purchased Options | $ | 227,118 |
Number | ||||||||||||
of | ||||||||||||
Rights | ||||||||||||
Rights — 0.1% | ||||||||||||
Black Ridge Acquisition Corp. Exp | ||||||||||||
7/1/19, Strike Price $11.50* | 209,176 | 62,753 | ||||||||||
Pensare Acquisition Corp. Exp 2/1/19, | ||||||||||||
Strike Price $11.50* | 298,360 | 134,262 | ||||||||||
Media General, Inc. Exp 12/31/23, Strike | ||||||||||||
Price $10.00(C) | 180,000 | 18,000 | ||||||||||
Total Rights | $ | 215,015 |
15 |
Touchstone Arbitrage Fund (Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Short-Term Investment Funds — 1.0% | ||||||||
Dreyfus Government Cash | ||||||||
Management, Institutional Shares, | ||||||||
1.54%∞Ω | 15,062 | $ | 15,062 | |||||
Invesco Government & Agency | ||||||||
Portfolio, Institutional Class, | ||||||||
1.48%**∞Ω | 2,409,030 | 2,409,030 | ||||||
Total Short-Term Investment Funds | $ | 2,424,092 | ||||||
Total Long Positions | ||||||||
(Cost $273,416,138) | $ | 266,346,161 | ||||||
Securities Sold Short — (10.0%) | ||||||||
Common Stocks — (9.9%) | ||||||||
Utilities — (3.3%) | ||||||||
Vistra Energy Corp.* | (382,090 | ) | (7,958,935 | ) | ||||
Energy — (2.5%) | ||||||||
Concho Resources, Inc.* | (29,376 | ) | (4,416,094 | ) | ||||
SPDR S&P Oil & Gas Exploration & | ||||||||
Production ETF | (50,000 | ) | (1,761,000 | ) | ||||
(6,177,094 | ) | |||||||
Consumer Discretionary — (1.8%) | ||||||||
Lennar Corp. - Class A | (49,586 | ) | (2,922,599 | ) | ||||
Lennar Corp. - Class B | (771 | ) | (36,769 | ) | ||||
Sinclair Broadcast Group, Inc., Class A | (42,195 | ) | (1,320,704 | ) | ||||
(4,280,072 | ) | |||||||
Industrials — (1.0%) | ||||||||
United Technologies Corp. | (19,314 | ) | (2,430,087 | ) | ||||
Telecommunication Services — (0.8%) | ||||||||
AT&T, Inc. | (56,000 | ) | (1,996,400 | ) | ||||
Information Technology — (0.5%) | ||||||||
salesforce.com, Inc.* | (10,899 | ) | (1,267,554 | ) | ||||
Total Common Stocks | $ | (24,110,142 | ) | |||||
Shares | ||||||||
Exchange-Traded Funds — (0.1%) | ||||||||
Energy Select Sector SPDR Fund | (312 | ) | (21,032 | ) | ||||
iShares US Telecommunications ETF | (321 | ) | (8,673 | ) | ||||
Real Estate Select Sector SPDR Fund | (5,678 | ) | (176,472 | ) | ||||
Utilities Select Sector SPDR Fund | (3,111 | ) | (157,199 | ) | ||||
Total Exchange-Traded Funds | $ | (363,376 | ) | |||||
Total Securities Sold Short | ||||||||
(Proceeds $23,990,866) | $ | (24,473,518 | ) |
Number | ||||||||||
of | Notional | Market | ||||||||
Contracts | Amount | Value | ||||||||
Written Options — (0.1%) | ||||||||||
Written Put Options — (0.1%) | ||||||||||
SPDR S&P 500 ETF Trust., | ||||||||||
Strike @250.00, | ||||||||||
Exp 05/18 | (50) | $ | (1,315,750 | ) | $ | (9,000 | ) | |||
SPDR S&P 500 ETF Trust., | ||||||||||
Strike @260.00, | ||||||||||
Exp 04/18 | (74) | (1,947,310 | ) | (25,160 | ) | |||||
SPDR S&P 500 ETF Trust., | ||||||||||
Strike @260.00, | ||||||||||
Exp 04/18 | (80) | (2,105,200 | ) | (21,600 | ) | |||||
SPDR S&P 500 ETF Trust., | ||||||||||
Strike @262.00, | ||||||||||
Exp 04/18 | (146) | (3,841,990 | ) | (58,692 | ) | |||||
SPDR S&P 500 ETF Trust., | ||||||||||
Strike @34.00, Exp 04/18 | (250) | (4,000 | ) | (4,000 | ) | |||||
SPDR S&P 500 ETF Trust., | ||||||||||
Strike @34.50, Exp 04/18 | (250) | (6,578,750 | ) | (6,750 | ) | |||||
$ | (125,202 | ) | ||||||||
Written Call Options — (0.0%) | ||||||||||
SPDR S&P 500 ETF Trust., | ||||||||||
Strike @268.00, | ||||||||||
Exp 04/18 | (80) | (2,105,200 | ) | (14,400 | ) | |||||
SPDR S&P 500 ETF Trust., | ||||||||||
Strike @270.00, | ||||||||||
Exp 04/18 | (74) | (1,947,310 | ) | (12,358 | ) | |||||
SPDR S&P 500 ETF Trust., | ||||||||||
Strike @270.00, | ||||||||||
Exp 05/18 | (50) | (1,315,750 | ) | (12,150 | ) | |||||
SPDR S&P 500 ETF Trust., | ||||||||||
Strike @272.00, | ||||||||||
Exp 04/18 | (146) | (3,841,990 | ) | (25,112 | ) | |||||
$ | (64,020 | ) | ||||||||
Total Written Options | ||||||||||
(Premiums received $218,581) | $ | (189,222 | ) | |||||||
Total — 98.9% | $ | 241,683,421 | ||||||||
Cash Collateral for Securities | ||||||||||
Sold Short and Written Options — 2.1% | 5,166,076 | |||||||||
Liabilities in Excess of | ||||||||||
Other Assets — (1.0%) | (2,416,263 | ) | ||||||||
Net Assets — 100.0% | $ | 244,433,234 |
(A) | Variable rate security - Rate reflected is the rate in effect as of March 31, 2018. |
(B) | Perpetual Bond - A bond with no definite maturity date. |
(C) | Level 3-For more information on valuation inputs, and their aggregation into the levels used in the table below, please |
16 |
Touchstone Arbitrage Fund (Unaudited) (Continued)
refer to the security valuation section in the accompanying Notes to Financial Statements.
* | 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, 2018 was $2,297,842. |
†† | All or a portion of these securities are pledged as collateral for securities sold short and written options. The total value of the securities pledged as collateral as of March 31, 2018 was $36,352,073. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2018. |
Portfolio Abbreviations:
ADR - American Depositary Receipt
DKK - Denmark Krone
ETF - Exchange-Traded Fund
EUR - Euro
LIBOR - London Inter Bank Offered Rate
LP - Limited Partnership
SPDR - Standard & Poor's Depositary Receipt
USD - United States Dollar
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, 2018, these securities were valued at $2,956,872 or 1.2% 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 | $ | 253,418,164 | $ | — | $ | — | $ | 253,418,164 | ||||||||
Corporate Bonds | — | 7,666,519 | — | 7,666,519 | ||||||||||||
Warrants | 2,045,185 | — | — | 2,045,185 | ||||||||||||
Exchange-Traded Funds | 350,068 | — | — | 350,068 | ||||||||||||
Purchased Options Equity Contracts | 227,118 | — | — | 227,118 | ||||||||||||
Rights | 197,015 | — | 18,000 | 215,015 | ||||||||||||
Short-Term Investment Funds | 2,424,092 | — | — | 2,424,092 | ||||||||||||
Other Financial Instruments*** | ||||||||||||||||
Forward Foreign Currency Contracts | — | 49,954 | — | 49,954 | ||||||||||||
Total Assets | $ | 258,661,642 | $ | 7,716,473 | $ | 18,000 | $ | 266,396,115 | ||||||||
Liabilities: | ||||||||||||||||
Securities Sold Short | ||||||||||||||||
Common Stocks | $ | (24,110,142 | ) | $ | — | $ | — | $ | (24,110,142 | ) | ||||||
Exchange-Traded Funds | (363,376 | ) | — | — | (363,376 | ) | ||||||||||
Other Financial Instruments*** | ||||||||||||||||
Written Options Equity Contracts | (189,222 | ) | — | — | (189,222 | ) | ||||||||||
Total Liabilities | $ | (24,662,740 | ) | $ | — | $ | — | $ | (24,662,740 | ) | ||||||
Total | $ | 233,998,902 | $ | 7,716,473 | $ | 18,000 | $ | 241,733,375 |
*** Other Financial Instruments are derivative instruments not reflected in total investments. Amounts shown represent market value for written options equity contracts and unrealized appreciation on forward foreign currency contracts.
17 |
Touchstone Arbitrage Fund (Unaudited) (Continued)
Measurements Using Unobservable Inputs (Level 3)
Assets | Rights | |||
Beginning balance September 30, 2017 | $ | 18,000 | ||
Net change in unrealized appreciation/depreciation | — | |||
Realized gain from distributions received | — | |||
Ending balance March 31, 2018 | $ | 18,000 | ||
Net Change in Unrealized Appreciation/Depreciation for Investments in Securities still held at March 31, 2018 | $ | — |
Valuation | Unobservable | |||||||
Rights | Fair Value | Technique | Input | |||||
Media General, Inc. Exp 12/31/23, Strike Price $10.00 | $ | 18,000 | Issuer Guidance | New Issuer |
Forward Foreign Currency Contracts
Contract to | Unrealized | |||||||||||||||||
Counterparty | Expiration Date | Receive | Deliver | Appreciation | ||||||||||||||
Brown Brothers Harriman | 04/30/2018 | USD | 1,944,326 | DKK | 11,693,175 | $ | 9,841 | |||||||||||
Brown Brothers Harriman | 04/30/2018 | USD | 1,674,302 | DKK | 10,050,000 | 11,660 | ||||||||||||
Brown Brothers Harriman | 05/31/2018 | USD | 4,328,298 | EUR | 3,478,500 | 28,453 | ||||||||||||
$ | 49,954 |
See accompanying Notes to Financial Statements.
18 |
Touchstone Emerging Markets Small Cap Fund – March 31, 2018 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 98.0% | ||||||||
South Korea — 17.9% | ||||||||
Consumer Discretionary — 4.9% | ||||||||
Innocean Worldwide, Inc. | 2,181 | $ | 130,340 | |||||
Kakao M Corp. | 1,463 | 150,706 | ||||||
LOTTE Himart Co. Ltd. | 2,085 | 140,839 | ||||||
Modetour Network, Inc. | 5,512 | 203,487 | ||||||
Consumer Staples — 1.6% | ||||||||
Orion Corp. | 1,740 | 208,950 | ||||||
Financials — 1.6% | ||||||||
KIWOOM Securities Co. Ltd.† | 1,939 | 197,375 | ||||||
Health Care — 2.3% | ||||||||
Seegene, Inc.* | 4,327 | 141,473 | ||||||
Value Added Technology Co. Ltd. | 4,064 | 151,556 | ||||||
Information Technology — 5.9% | ||||||||
Douzone Bizon Co. Ltd. | 4,015 | 218,096 | ||||||
HyVision System, Inc. | 6,308 | 110,667 | ||||||
Jusung Engineering Co. Ltd. | 13,331 | 134,448 | ||||||
Koh Young Technology, Inc. | 1,874 | 175,462 | ||||||
Silicon Works Co. Ltd. | 3,130 | 109,531 | ||||||
Materials — 1.6% | ||||||||
Korea Petrochemical Ind Co. Ltd. | 720 | 201,295 | ||||||
Total South Korea | 2,274,225 | |||||||
China — 16.8% | ||||||||
Consumer Discretionary — 6.2% | ||||||||
China Yongda Automobiles Services | ||||||||
Holdings Ltd.† | 154,500 | 165,525 | ||||||
Fu Shou Yuan International | ||||||||
Group Ltd. | 134,000 | 133,396 | ||||||
Tarena International, Inc. ADR | 9,340 | 104,795 | ||||||
Tianneng Power International Ltd. | 178,000 | 212,064 | ||||||
Xiabuxiabu Catering Management | ||||||||
China Holdings Co. Ltd., 144a | 90,000 | 171,689 | ||||||
Financials — 0.9% | ||||||||
Yirendai Ltd. ADR | 2,936 | 118,115 | ||||||
Health Care — 1.0% | ||||||||
Livzon Pharmaceutical Group, Inc. - | ||||||||
Class H | 15,600 | 126,580 | ||||||
Industrials — 2.8% | ||||||||
Haitian International Holdings Ltd. | 56,000 | 169,823 | ||||||
Lonking Holdings Ltd. | 417,000 | 179,380 | ||||||
Information Technology — 2.6% | ||||||||
Chinasoft International Ltd. | 228,000 | 206,245 | ||||||
Hollysys Automation Technologies | ||||||||
Ltd. | 5,146 | 127,209 | ||||||
Materials — 1.1% | ||||||||
Maanshan Iron & Steel Co. Ltd. - Class | ||||||||
H* | 330,000 | 143,244 | ||||||
Real Estate — 2.2% | ||||||||
Guangzhou R&F Properties Co. Ltd. - | ||||||||
Class H | 65,600 | 165,912 | ||||||
Yuzhou Properties Co. Ltd. | 173,000 | 118,827 | ||||||
Total China | 2,142,804 | |||||||
Taiwan — 15.8% | ||||||||
Consumer Discretionary — 1.3% | ||||||||
Gourmet Master Co. Ltd. | 12,470 | 160,382 | ||||||
Consumer Staples — 3.1% | ||||||||
Grape King Bio Ltd. | 22,000 | 187,502 | ||||||
TCI Co. Ltd. | 15,000 | 209,127 | ||||||
Industrials — 2.4% | ||||||||
Airtac International Group | 9,000 | 152,639 | ||||||
Sunny Friend Environmental Technology Co. Ltd. | 19,000 | 149,553 | ||||||
Information Technology — 7.5% | ||||||||
E Ink Holdings, Inc. | 111,000 | 189,588 | ||||||
Elite Advanced Laser Corp. | 29,400 | 112,429 | ||||||
Inventec Corp. | 163,000 | 129,418 | ||||||
King Yuan Electronics Co. Ltd. | 137,000 | 143,310 | ||||||
Micro-Star International Co. Ltd. | 41,000 | 133,868 | ||||||
Powertech Technology, Inc. | 52,000 | 163,542 | ||||||
Primax Electronics Ltd. | 42,000 | 90,030 | ||||||
Materials — 1.5% | ||||||||
China General Plastics Corp. | 174,289 | 194,272 | ||||||
Total Taiwan | 2,015,660 | |||||||
India — 10.3% | ||||||||
Financials — 3.1% | ||||||||
Karnataka Bank Ltd. (The) | 17,373 | 30,932 | ||||||
L&T Finance Holdings Ltd. | 58,686 | 143,124 | ||||||
Reliance Capital Ltd. | 19,648 | 129,041 | ||||||
Srei Infrastructure Finance Ltd. | 81,483 | 93,195 | ||||||
Health Care — 1.6% | ||||||||
Jubilant Life Sciences Ltd. | 7,449 | 96,904 | ||||||
Natco Pharma Ltd. | 9,275 | 107,947 | ||||||
Industrials — 2.2% | ||||||||
Dilip Buildcon Ltd., 144a | 11,798 | 183,062 | ||||||
Jain Irrigation Systems Ltd. | 59,376 | 98,230 | ||||||
Information Technology — 1.1% | ||||||||
Mphasis Ltd. | 10,983 | 141,874 | ||||||
Materials — 1.0% | ||||||||
National Aluminium Co. Ltd. | 125,222 | 129,282 | ||||||
Utilities — 1.3% | ||||||||
Indraprastha Gas Ltd. | 36,169 | 156,287 | ||||||
Total India | 1,309,878 |
19 |
Touchstone Emerging Markets Small Cap Fund (Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 98.0% (Continued) | ||||||||
Brazil — 6.5% | ||||||||
Consumer Discretionary — 1.1% | ||||||||
Magazine Luiza SA | 4,500 | $ | 134,532 | |||||
Financials — 1.0% | ||||||||
IRB Brasil Resseguros SA | 10,100 | 128,581 | ||||||
Industrials — 2.2% | ||||||||
Iochpe Maxion SA | 18,200 | 144,544 | ||||||
Localiza Rent a Car SA | 15,465 | 133,596 | ||||||
Materials — 1.1% | ||||||||
Usinas Siderurgicas de Minas Gerais | ||||||||
SA - Class A* | 42,300 | 139,401 | ||||||
Real Estate — 1.1% | ||||||||
Iguatemi Empresa de Shopping | ||||||||
Centers SA | 12,400 | 147,232 | ||||||
Total Brazil | 827,886 | |||||||
Thailand — 5.3% | ||||||||
Energy — 1.3% | ||||||||
Star Petroleum Refining PCL | 313,800 | 160,563 | ||||||
Financials — 3.0% | ||||||||
Krungthai Card PCL | 22,700 | 222,862 | ||||||
Muangthai Leasing PCL | 125,600 | 154,640 | ||||||
Health Care — 1.0% | ||||||||
Mega Lifesciences PCL | 99,100 | 131,521 | ||||||
Total Thailand | 669,586 | |||||||
South Africa — 4.2% | ||||||||
Consumer Discretionary — 0.4% | ||||||||
Super Group Ltd.* | 17,752 | 54,161 | ||||||
Consumer Staples — 1.4% | ||||||||
AVI Ltd. | 13,153 | 123,122 | ||||||
Pick n Pay Stores Ltd. | 9,736 | 56,366 | ||||||
Industrials — 0.9% | ||||||||
Barloworld Ltd. | 8,157 | 114,417 | ||||||
Materials — 1.5% | ||||||||
African Rainbow Minerals Ltd. | 10,845 | 92,889 | ||||||
Sappi Ltd. | 14,411 | 92,756 | ||||||
Total South Africa | 533,711 | |||||||
Hong Kong — 3.9% | ||||||||
Consumer Discretionary — 1.0% | ||||||||
Xinyi Glass Holdings Ltd. | 84,000 | 127,861 | ||||||
Materials — 1.8% | ||||||||
China Resources Cement | ||||||||
Holdings Ltd. | 254,000 | 222,187 | ||||||
Real Estate — 1.1% | ||||||||
Shenzhen Investment Ltd. | 332,000 | 141,785 | ||||||
Total Hong Kong | 491,833 | |||||||
Malaysia — 2.8% | ||||||||
Industrials — 2.8% | ||||||||
AirAsia Bhd | 150,800 | 153,217 | ||||||
Malaysia Airports Holdings Bhd | 86,500 | 197,913 | ||||||
Total Malaysia | 351,130 | |||||||
Indonesia — 2.1% | ||||||||
Financials — 1.4% | ||||||||
Bank Tabungan Negara Persero Tbk | ||||||||
PT | 628,000 | 173,895 | ||||||
Industrials — 0.7% | ||||||||
Waskita Karya Persero Tbk PT | 494,300 | 89,173 | ||||||
Total Indonesia | 263,068 | |||||||
Mexico — 1.8% | ||||||||
Consumer Discretionary — 1.1% | ||||||||
Alsea SAB de CV | 40,900 | 142,925 | ||||||
Industrials — 0.7% | ||||||||
Promotora y Operadora de | ||||||||
Infraestructura SAB de CV | 9,290 | 92,358 | ||||||
Total Mexico | 235,283 | |||||||
Jersey — 1.8% | ||||||||
Materials — 1.8% | ||||||||
West China Cement Ltd.* | 1,232,000 | 235,254 | ||||||
Singapore — 1.5% | ||||||||
Real Estate — 1.5% | ||||||||
Yanlord Land Group Ltd. | 150,600 | 194,983 | ||||||
Cyprus — 1.5% | ||||||||
Financials — 1.5% | ||||||||
TCS Group Holding PLC GDR | 8,780 | 192,721 | ||||||
Greece — 1.3% | ||||||||
Consumer Discretionary — 1.3% | ||||||||
JUMBO SA | 9,612 | 171,964 | ||||||
Philippines — 1.2% | ||||||||
Financials — 0.5% | ||||||||
Metro Pacific Investments Corp. | 592,700 | 59,766 | ||||||
Industrials — 0.7% | ||||||||
International Container Terminal | ||||||||
Services, Inc. | 49,580 | 95,022 | ||||||
Total Philippines | 154,788 |
20 |
Touchstone Emerging Markets Small Cap Fund (Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 98.0% (Continued) | ||||||||
Poland — 1.0% | ||||||||
Consumer Discretionary — 1.0% | ||||||||
CCC SA | 1,805 | $ | 123,296 | |||||
Trinidad — 1.0% | ||||||||
Industrials — 1.0% | ||||||||
Tekfen Holding AS | 28,200 | 121,869 | ||||||
Turkey — 0.9% | ||||||||
Industrials — 0.9% | ||||||||
Turkiye Sise ve Cam Fabrikalari AS | 89,873 | 117,544 | ||||||
United States — 0.4% | ||||||||
Industrials — 0.4% | ||||||||
Bizlink Holding, Inc. | 7,031 | 57,874 | ||||||
Total Common Stocks | $ | 12,485,357 | ||||||
Exchange-Traded Fund — 1.0% | ||||||||
iShares MSCI Emerging Markets | ||||||||
Small-Cap ETF | 2,400 | $ | 128,041 | |||||
Short-Term Investment Funds — 1.6% | ||||||||
Dreyfus Government Cash | ||||||||
Management, Institutional Shares, | ||||||||
1.54%∞Ω | 235 | 235 | ||||||
Invesco Government & Agency | ||||||||
Portfolio, Institutional Class, | ||||||||
1.48%**∞Ω | 198,631 | 198,631 | ||||||
Total Short-Term Investment Funds | $ | 198,866 | ||||||
Total Investment Securities —100.6% | ||||||||
(Cost $11,615,381) | $ | 12,812,264 | ||||||
Liabilities in Excess of Other Assets — (0.6%) | (74,682 | ) | ||||||
Net Assets — 100.0% | $ | 12,737,582 |
* | 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, 2018 was $192,811. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2018. |
Portfolio Abbreviations:
ADR - American Depositary Receipt
ETF - Exchange-Traded Fund
GDR - Global Depositary Receipt
PCL - Public Company Limited
PLC - Public Limited Company
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, 2018, these securities were valued at $354,751 or 2.8% of net assets. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees.
21 |
Touchstone Emerging Markets Small Cap 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 | ||||||||||||||||
South Korea | $ | 2,274,225 | $ | — | $ | — | $ | 2,274,225 | ||||||||
China | 519,943 | 1,622,862 | — | 2,142,804 | ||||||||||||
Taiwan | 2,015,660 | — | — | 2,015,660 | ||||||||||||
India | — | 1,309,878 | — | 1,309,878 | ||||||||||||
Brazil | 827,886 | — | — | 827,886 | ||||||||||||
Thailand | 669,586 | — | — | 669,586 | ||||||||||||
South Africa | 533,711 | — | — | 533,711 | ||||||||||||
Hong Kong | — | 491,833 | — | 491,833 | ||||||||||||
Malaysia | 351,129 | — | — | 351,130 | ||||||||||||
Indonesia | — | 263,068 | — | 263,068 | ||||||||||||
Mexico | 235,283 | — | — | 235,283 | ||||||||||||
Jersey | — | 235,254 | — | 235,254 | ||||||||||||
Singapore | — | 194,983 | — | 194,983 | ||||||||||||
Cyprus | 192,721 | — | — | 192,721 | ||||||||||||
Greece | — | 171,964 | — | 171,964 | ||||||||||||
Philippines | 95,022 | 59,766 | — | 154,788 | ||||||||||||
Poland | — | 123,296 | — | 123,296 | ||||||||||||
Trinidad | 121,869 | — | — | 121,869 | ||||||||||||
Turkey | 117,544 | — | — | 117,544 | ||||||||||||
United States | 57,874 | — | — | 57,874 | ||||||||||||
Exchange-Traded Fund | 128,041 | — | — | 128,041 | ||||||||||||
Short-Term Investment Funds | 198,866 | — | — | 198,866 | ||||||||||||
Total | $ | 8,339,360 | $ | 4,472,904 | $ | — | $ | 12,812,264 |
At March 31, 2018, equity securities valued at $427,049 and $2,775,836 were transferred from Level 1 to Level 2 and from Level 2 to Level 1, respectively. Transfers from Level 1 to Level 2 are due to movements of a designated U.S. market index, triggering a systematic valuation model provided by an independent third party, when required confidence levels are achieved to fair value the international equity securities. Transfers from Level 2 to Level 1 occur when there is no longer movement of the designated U.S. market index or required confidence levels were not reached in the systematic model.
See accompanying Notes to Financial Statements.
22 |
Touchstone High Yield Fund – March 31, 2018 (Unaudited)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 98.3% | ||||||||
Consumer Discretionary — 19.1% | ||||||||
$ | 263,000 | 1011778 BC ULC / New Red Finance, | ||||||
Inc. (Canada), 144a, 4.250%, 5/15/24 | $ | 251,560 | ||||||
1,000,000 | 1011778 BC ULC / New Red Finance, | |||||||
Inc. (Canada), 144a, | ||||||||
5.000%, 10/15/25 | 952,200 | |||||||
414,000 | ACCO Brands Corp., 144a, | |||||||
5.250%, 12/15/24 | 416,070 | |||||||
381,000 | AMC Entertainment Holdings, Inc., | |||||||
5.875%, 11/15/26† | 374,333 | |||||||
265,000 | AMC Networks, Inc., 4.750%, 8/1/25 | 255,362 | ||||||
492,000 | AMC Networks, Inc., 5.000%, 4/1/24 | 486,180 | ||||||
245,000 | Aramark Services, Inc., 144a, | |||||||
5.000%, 2/1/28 | 239,794 | |||||||
446,000 | Avis Budget Car Rental LLC / Avis | |||||||
Budget Finance, Inc., | ||||||||
5.500%, 4/1/23 | 444,885 | |||||||
598,000 | Avis Budget Car Rental LLC / Avis | |||||||
Budget Finance, Inc., 144a, | ||||||||
5.125%, 6/1/22 | 598,030 | |||||||
41,000 | Avon Products, Inc., 6.600%, 3/15/20 | 40,795 | ||||||
985,000 | Belo Corp., 7.250%, 9/15/27 | 1,060,106 | ||||||
339,000 | Block Communications, Inc., 144a, | |||||||
6.875%, 2/15/25 | 340,892 | |||||||
661,000 | Booz Allen Hamilton, Inc., 144a, | |||||||
5.125%, 5/1/25 | 644,475 | |||||||
555,000 | Brinker International, Inc., | |||||||
3.875%, 5/15/23 | 530,025 | |||||||
534,000 | Brinker International, Inc., 144a, | |||||||
5.000%, 10/1/24 | 523,320 | |||||||
352,000 | Cable One, Inc., 144a, 5.750%, 6/15/22 | 359,040 | ||||||
943,000 | Cablevision Systems Corp., | |||||||
5.875%, 9/15/22 | 935,645 | |||||||
625,000 | Cardtronics, Inc., 5.125%, 8/1/22 | 609,212 | ||||||
271,000 | CCO Holdings LLC / CCO Holdings | |||||||
Capital Corp., 5.750%, 1/15/24 | 275,065 | |||||||
797,000 | CCO Holdings LLC / CCO Holdings | |||||||
Capital Corp., 144a, 5.125%, 5/1/27 | 756,672 | |||||||
1,325,000 | CCO Holdings LLC / CCO Holdings | |||||||
Capital Corp., 144a, 5.750%, 2/15/26 | 1,318,388 | |||||||
215,000 | Cedar Fair LP / Canada's Wonderland | |||||||
Co. / Magnum Management Corp. / | ||||||||
Millennium Op, 144a, | ||||||||
5.375%, 4/15/27 | 212,850 | |||||||
700,000 | Century Communities, Inc., | |||||||
5.875%, 7/15/25 | 666,750 | |||||||
1,399,000 | Cimpress NV (Netherlands), 144a, | |||||||
7.000%, 4/1/22 | 1,458,458 | |||||||
290,000 | Delphi Technologies PLC (Jersey), | |||||||
144a, 5.000%, 10/1/25 | 278,038 | |||||||
36,000 | Dollar Tree, Inc., 5.750%, 3/1/23 | 37,578 | ||||||
395,000 | Downstream Development Authority | |||||||
of the Quapaw Tribe of Oklahoma, | ||||||||
144a, 10.500%, 2/15/23 | 404,875 | |||||||
243,000 | GLP Capital LP / GLP Financing II, Inc., | |||||||
5.375%, 11/1/23 | 251,741 | |||||||
1,025,000 | GLP Capital LP / GLP Financing II, Inc., | |||||||
5.375%, 4/15/26 | 1,040,375 | |||||||
481,000 | Hanesbrands, Inc., 144a, | |||||||
4.625%, 5/15/24 | 470,779 | |||||||
474,000 | Hertz Corp. (The), 5.875%, 10/15/20 | 469,852 | ||||||
540,000 | Hertz Corp. (The), 144a, | |||||||
7.625%, 6/1/22 | 548,100 | |||||||
1,051,000 | International Game Technology PLC | |||||||
(United Kingdom), 144a, | ||||||||
6.250%, 2/15/22 | 1,100,922 | |||||||
116,000 | JC Penney Corp., Inc., 8.125%, 10/1/19 | 123,105 | ||||||
638,000 | KFC Holding Co./Pizza Hut Holdings | |||||||
LLC/Taco Bell of America LLC, 144a, | ||||||||
5.000%, 6/1/24 | 634,012 | |||||||
270,000 | Lennar Corp., 4.125%, 1/15/22 | 265,532 | ||||||
402,000 | Lennar Corp., 4.750%, 5/30/25 | 395,970 | ||||||
398,000 | Lennar Corp., 4.875%, 12/15/23 | 399,532 | ||||||
437,000 | Lennar Corp., 144a, 4.750%, 11/29/27 | 418,428 | ||||||
620,000 | Lennar Corp., 144a, 5.375%, 10/1/22 | 637,050 | ||||||
168,000 | Lennar Corp., 144a, 5.875%, 11/15/24 | 173,880 | ||||||
305,000 | Live Nation Entertainment, Inc., 144a, | |||||||
4.875%, 11/1/24 | 297,375 | |||||||
191,000 | Live Nation Entertainment, Inc., 144a, | |||||||
5.625%, 3/15/26 | 193,388 | |||||||
843,000 | LSC Communications, Inc., 144a, | |||||||
8.750%, 10/15/23 | 867,489 | |||||||
205,000 | M/I Homes, Inc., 5.625%, 8/1/25 | 199,557 | ||||||
998,000 | Mattel, Inc., 144a, 6.750%, 12/31/25 | 975,545 | ||||||
1,021,000 | MDC Partners, Inc. (Canada), 144a, | |||||||
6.500%, 5/1/24 | 992,922 | |||||||
531,000 | Meritage Homes Corp., | |||||||
7.150%, 4/15/20 | 560,205 | |||||||
1,397,000 | MGM Resorts International, | |||||||
6.000%, 3/15/23 | 1,466,850 | |||||||
185,000 | Netflix, Inc., 5.750%, 3/1/24 | 192,400 | ||||||
546,000 | New Home Co., Inc. (The), | |||||||
7.250%, 4/1/22 | 566,475 | |||||||
493,000 | Penske Automotive Group, Inc., | |||||||
5.375%, 12/1/24 | 495,465 | |||||||
691,000 | Quad/Graphics, Inc., 7.000%, 5/1/22 | 715,185 | ||||||
700,000 | Quebecor Media, Inc. (Canada), | |||||||
5.750%, 1/15/23 | 717,500 | |||||||
200,000 | QVC, Inc., 5.125%, 7/2/22 | 206,286 | ||||||
246,000 | Sabre GLBL, Inc., 144a, | |||||||
5.250%, 11/15/23 | 248,534 | |||||||
343,000 | Sabre GLBL, Inc., 144a, | |||||||
5.375%, 4/15/23 | 346,001 | |||||||
276,000 | Scotts Miracle-Gro Co. (The), | |||||||
5.250%, 12/15/26 | 273,585 | |||||||
253,000 | Service Corp. International, | |||||||
5.375%, 5/15/24 | 262,880 | |||||||
896,000 | ServiceMaster Co. LLC (The), 144a, | |||||||
5.125%, 11/15/24 | 866,880 | |||||||
824,000 | SFR Group SA (France), 144a, | |||||||
6.250%, 5/15/24 | 776,620 | |||||||
284,000 | SFR Group SA (France), 144a, | |||||||
7.375%, 5/1/26 | 270,510 |
23 |
Touchstone High Yield Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 98.3% (Continued) | ||||||||
Consumer Discretionary — (Continued) | ||||||||
$ | 440,000 | Sirius XM Radio, Inc., 144a, | ||||||
5.375%, 4/15/25 | $ | 436,700 | ||||||
248,000 | Sirius XM Radio, Inc., 144a, | |||||||
5.375%, 7/15/26 | 244,900 | |||||||
126,000 | Sirius XM Radio, Inc., 144a, | |||||||
6.000%, 7/15/24 | 129,543 | |||||||
243,000 | Sonic Automotive, Inc., | |||||||
5.000%, 5/15/23 | 230,850 | |||||||
533,000 | Sonic Automotive, Inc., | |||||||
6.125%, 3/15/27 | 514,345 | |||||||
491,000 | Tempur Sealy International, Inc., | |||||||
5.625%, 10/15/23 | 492,620 | |||||||
413,000 | Toll Brothers Finance Corp., | |||||||
5.875%, 2/15/22 | 437,780 | |||||||
228,000 | United Rentals North America, Inc., | |||||||
4.625%, 10/15/25 | 221,730 | |||||||
317,000 | United Rentals North America, Inc., | |||||||
5.875%, 9/15/26 | 329,680 | |||||||
490,000 | William Lyon Homes, Inc., | |||||||
5.875%, 1/31/25 | 479,857 | |||||||
632,000 | Wyndham Hotels & Resorts, Inc., 144a, | |||||||
5.375%, 4/15/26 | 638,320 | |||||||
37,047,853 | ||||||||
Energy — 15.7% | ||||||||
684,000 | Blue Racer Midstream LLC / Blue Racer | |||||||
Finance Corp., 144a, | ||||||||
6.125%, 11/15/22 | 695,970 | |||||||
510,000 | Carrizo Oil & Gas, Inc., | |||||||
6.250%, 4/15/23† | 510,000 | |||||||
638,000 | Cheniere Corpus Christi Holdings LLC, | |||||||
5.875%, 3/31/25 | 667,508 | |||||||
398,000 | Cheniere Corpus Christi Holdings LLC, | |||||||
7.000%, 6/30/24 | 440,288 | |||||||
725,000 | Delek Logistics Partners LP, 144a, | |||||||
6.750%, 5/15/25 | 732,250 | |||||||
774,000 | Endeavor Energy Resources LP / EER | |||||||
Finance, Inc., 144a, 5.750%, 1/30/28 | 771,098 | |||||||
757,000 | Energy Transfer Equity LP, | |||||||
5.500%, 6/1/27 | 758,892 | |||||||
823,000 | Ensco PLC (United Kingdom), | |||||||
7.750%, 2/1/26 | 755,102 | |||||||
204,000 | Exterran Energy Solutions LP / EES | |||||||
Finance Corp., 144a, 8.125%, 5/1/25 | 216,240 | |||||||
945,000 | Extraction Oil & Gas, Inc., 144a, | |||||||
5.625%, 2/1/26 | 893,025 | |||||||
205,000 | Extraction Oil & Gas, Inc., 144a, | |||||||
7.375%, 5/15/24 | 214,225 | |||||||
251,000 | Genesis Energy LP / Genesis Energy | |||||||
Finance Corp., 6.000%, 5/15/23 | 247,235 | |||||||
636,000 | Genesis Energy LP / Genesis Energy | |||||||
Finance Corp., 6.250%, 5/15/26 | 605,790 | |||||||
1,063,000 | Genesis Energy LP / Genesis Energy | |||||||
Finance Corp., 6.750%, 8/1/22 | 1,090,904 | |||||||
1,493,000 | Gulfport Energy Corp., | |||||||
6.375%, 5/15/25 | 1,429,548 | |||||||
345,000 | Hilcorp Energy I LP / Hilcorp Finance | |||||||
Co., 144a, 5.750%, 10/1/25 | 341,550 | |||||||
413,000 | MEG Energy Corp. (Canada), 144a, | |||||||
6.375%, 1/30/23 | 344,855 | |||||||
255,000 | Moss Creek Resources Holdings, Inc., | |||||||
144a, 7.500%, 1/15/26 | 257,155 | |||||||
1,076,000 | Murphy Oil USA, Inc., 5.625%, 5/1/27 | 1,078,690 | ||||||
1,206,000 | Parkland Fuel Corp. (Canada), 144a, | |||||||
6.000%, 4/1/26 | 1,212,030 | |||||||
1,062,000 | PDC Energy, Inc., 6.125%, 9/15/24 | 1,083,240 | ||||||
421,000 | PDC Energy, Inc., 144a, | |||||||
5.750%, 5/15/26 | 413,632 | |||||||
574,000 | Peabody Energy Corp., 144a, | |||||||
6.000%, 3/31/22 | 585,480 | |||||||
539,000 | Peabody Energy Corp., 144a, | |||||||
6.375%, 3/31/25 | 559,212 | |||||||
320,000 | Precision Drilling Corp. (Canada), 144a, | |||||||
7.125%, 1/15/26 | 316,800 | |||||||
276,000 | QEP Resources, Inc., 5.375%, 10/1/22 | 275,655 | ||||||
193,000 | QEP Resources, Inc., 5.625%, 3/1/26 | 182,385 | ||||||
598,000 | QEP Resources, Inc., 6.800%, 3/1/20 | 624,910 | ||||||
460,000 | Range Resources Corp., | |||||||
4.875%, 5/15/25 | 426,650 | |||||||
627,000 | Range Resources Corp., | |||||||
5.000%, 8/15/22 | 606,622 | |||||||
174,000 | Range Resources Corp., | |||||||
5.000%, 3/15/23 | 166,831 | |||||||
15,000 | Range Resources Corp., | |||||||
5.750%, 6/1/21 | 15,300 | |||||||
285,000 | Rockies Express Pipeline LLC, 144a, | |||||||
6.875%, 4/15/40 | 328,713 | |||||||
784,000 | Sanchez Energy Corp., 144a, | |||||||
7.250%, 2/15/23 | 787,920 | |||||||
519,000 | SemGroup Corp. / Rose Rock Finance | |||||||
Corp., 5.625%, 7/15/22 | 503,430 | |||||||
581,000 | SemGroup Corp. / Rose Rock Finance | |||||||
Corp., 5.625%, 11/15/23 | 549,045 | |||||||
1,179,000 | Shelf Drilling Holdings Ltd. (Cayman | |||||||
Islands), 144a, 8.250%, 2/15/25 | 1,181,948 | |||||||
1,171,000 | Southwestern Energy Co., | |||||||
6.700%, 1/23/25 | 1,136,456 | |||||||
896,000 | Southwestern Energy Co., | |||||||
7.500%, 4/1/26 | 904,960 | |||||||
159,000 | Sunoco LP / Sunoco Finance Corp., | |||||||
144a, 4.875%, 1/15/23 | 153,236 | |||||||
247,000 | Sunoco LP / Sunoco Finance Corp., | |||||||
144a, 5.500%, 2/15/26 | 238,355 | |||||||
1,080,000 | Tallgrass Energy Partners LP / Tallgrass | |||||||
Energy Finance Corp., 144a, | ||||||||
5.500%, 9/15/24 | 1,098,900 | |||||||
253,000 | Tallgrass Energy Partners LP / Tallgrass | |||||||
Energy Finance Corp., 144a, | ||||||||
5.500%, 1/15/28 | 255,214 | |||||||
313,000 | TerraForm Power Operating LLC, 144a, | |||||||
4.250%, 1/31/23 | 300,871 | |||||||
313,000 | TerraForm Power Operating LLC, 144a, | |||||||
5.000%, 1/31/28 | 296,959 |
24 |
Touchstone High Yield Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 98.3% (Continued) | ||||||||
Energy — (Continued) | ||||||||
$ | 734,400 | Transocean Phoenix 2 Ltd. (Cayman | ||||||
Islands), 144a, 7.750%, 10/15/24 | $ | 780,300 | ||||||
554,000 | Tullow Oil PLC (United Kingdom), | |||||||
144a, 7.000%, 3/1/25 | 554,000 | |||||||
353,000 | Ultra Resources, Inc., 144a, | |||||||
6.875%, 4/15/22 | 307,110 | |||||||
475,000 | Ultra Resources, Inc., 144a, | |||||||
7.125%, 4/15/25 | 391,875 | |||||||
1,484,000 | Unit Corp., 6.625%, 5/15/21 | 1,484,000 | ||||||
314,000 | Williams Cos., Inc. (The), | |||||||
5.750%, 6/24/44 | 332,055 | |||||||
223,000 | Williams Cos., Inc. (The), | |||||||
7.500%, 1/15/31 | 271,363 | |||||||
30,375,782 | ||||||||
Telecommunication Services — 14.6% | ||||||||
1,599,000 | Altice Financing SA (Luxembourg), | |||||||
144a, 6.625%, 2/15/23 | 1,583,010 | |||||||
463,000 | Altice Financing SA (Luxembourg), | |||||||
144a, 7.500%, 5/15/26 | 453,740 | |||||||
761,000 | Altice US Finance I Corp., 144a, | |||||||
5.500%, 5/15/26 | 743,801 | |||||||
580,000 | CenturyLink, Inc., 5.625%, 4/1/25† | 523,450 | ||||||
1,432,000 | CenturyLink, Inc., 5.800%, 3/15/22 | 1,397,990 | ||||||
436,000 | CenturyLink, Inc., 6.450%, 6/15/21 | 444,720 | ||||||
564,000 | CenturyLink, Inc., 6.875%, 1/15/28 | 510,420 | ||||||
741,000 | CommScope Technologies LLC, 144a, | |||||||
5.000%, 3/15/27 | 703,950 | |||||||
204,000 | CommScope Technologies LLC, 144a, | |||||||
5.500%, 6/15/24 | 208,335 | |||||||
1,920,000 | CSC Holdings LLC, 5.250%, 6/1/24 | 1,826,400 | ||||||
813,000 | CSC Holdings LLC, 144a, | |||||||
10.125%, 1/15/23 | 902,430 | |||||||
1,413,000 | DISH DBS Corp., 5.875%, 7/15/22 | 1,351,181 | ||||||
986,000 | DISH DBS Corp., 6.750%, 6/1/21 | 992,162 | ||||||
509,000 | EW Scripps Co. (The), 144a, | |||||||
5.125%, 5/15/25 | 473,370 | |||||||
100,000 | Frontier Communications Corp., | |||||||
7.125%, 1/15/23 | 67,469 | |||||||
290,000 | Frontier Communications Corp., | |||||||
8.500%, 4/15/20† | 291,812 | |||||||
2,071,000 | Frontier Communications Corp., | |||||||
10.500%, 9/15/22† | 1,732,039 | |||||||
595,000 | Frontier Communications Corp., 144a, | |||||||
8.500%, 4/1/26 | 575,662 | |||||||
474,000 | Gray Television, Inc., 144a, | |||||||
5.125%, 10/15/24 | 458,595 | |||||||
741,000 | Intelsat Jackson Holdings SA | |||||||
(Luxembourg), 5.500%, 8/1/23 | 596,505 | |||||||
49,000 | Intelsat Jackson Holdings SA | |||||||
(Luxembourg), 7.500%, 4/1/21 | 44,376 | |||||||
348,000 | Lamar Media Corp., 5.375%, 1/15/24 | 358,440 | ||||||
378,000 | Level 3 Financing, Inc., 5.625%, 2/1/23 | 378,359 | ||||||
680,000 | Meredith Corp., 144a, 6.875%, 2/1/26 | 697,850 | ||||||
113,000 | Nexstar Broadcasting, Inc., 144a, | |||||||
5.625%, 8/1/24 | 110,706 | |||||||
362,000 | Nokia OYJ (Finland), 3.375%, 6/12/22 | 348,896 | ||||||
362,000 | Nokia OYJ (Finland), 4.375%, 6/12/27 | 339,828 | ||||||
652,000 | Qualitytech LP/QTS Finance Corp., | |||||||
144a, 4.750%, 11/15/25 | 612,880 | |||||||
305,000 | Qwest Corp., 6.750%, 12/1/21 | 326,987 | ||||||
506,000 | SFR Group SA (France), 144a, | |||||||
6.000%, 5/15/22 | 494,605 | |||||||
505,000 | Sprint Capital Corp., 6.875%, 11/15/28 | 470,912 | ||||||
602,000 | Sprint Communications, Inc., | |||||||
6.000%, 11/15/22 | 590,712 | |||||||
1,993,000 | Sprint Corp., 7.125%, 6/15/24 | 1,943,175 | ||||||
223,000 | Sprint Corp., 7.625%, 2/15/25 | 219,098 | ||||||
293,000 | Sprint Corp., 7.625%, 3/1/26 | 285,880 | ||||||
865,000 | Telecom Italia Capital SA | |||||||
(Luxembourg), 6.375%, 11/15/33 | 938,525 | |||||||
1,396,000 | T-Mobile USA, Inc., 6.000%, 4/15/24 | 1,454,074 | ||||||
200,000 | T-Mobile USA, Inc., 6.500%, 1/15/26 | 212,500 | ||||||
421,000 | Univision Communications, Inc., 144a, | |||||||
5.125%, 5/15/23 | 401,045 | |||||||
263,000 | Univision Communications, Inc., 144a, | |||||||
5.125%, 2/15/25 | 245,248 | |||||||
374,000 | UPCB Finance IV Ltd. (Cayman Islands), | |||||||
144a, 5.375%, 1/15/25 | 360,910 | |||||||
636,000 | ViaSat, Inc., 144a, 5.625%, 9/15/25 | 612,341 | ||||||
391,000 | Videotron Ltd. (Canada), | |||||||
5.000%, 7/15/22 | 396,865 | |||||||
575,000 | Zayo Group LLC / Zayo Capital, Inc., | |||||||
144a, 5.750%, 1/15/27 | 562,062 | |||||||
28,243,315 | ||||||||
Financials — 8.7% | ||||||||
73,000 | Aircastle Ltd. (Bermuda), | |||||||
5.000%, 4/1/23 | 75,281 | |||||||
612,000 | Aircastle Ltd. (Bermuda), | |||||||
5.500%, 2/15/22 | 638,010 | |||||||
555,000 | Ally Financial, Inc., 5.750%, 11/20/25 | 571,816 | ||||||
926,000 | Ally Financial, Inc., 8.000%, 11/1/31 | 1,130,878 | ||||||
978,000 | Bank of America Corp., 6.100%(A) | 1,029,345 | ||||||
314,000 | CIT Group, Inc., 6.125%, 3/9/28 | 325,775 | ||||||
616,000 | Cooke Omega Investments, Inc. / | |||||||
Alpha VesselCo Holdings Inc. | ||||||||
(Canada), 144a, 8.500%, 12/15/22 | 614,460 | |||||||
263,000 | Credit Acceptance Corp., | |||||||
6.125%, 2/15/21 | 264,894 | |||||||
701,000 | Credit Acceptance Corp., | |||||||
7.375%, 3/15/23 | 729,916 | |||||||
781,000 | CyrusOne LP / CyrusOne Finance | |||||||
Corp., 5.000%, 3/15/24 | 781,976 | |||||||
277,000 | CyrusOne LP / CyrusOne Finance | |||||||
Corp., 5.375%, 3/15/27 | 276,308 | |||||||
378,000 | Dana Financing Luxembourg Sarl | |||||||
(Luxembourg), 144a, | ||||||||
5.750%, 4/15/25 | 385,088 | |||||||
667,000 | FirstCash, Inc., 144a, 5.375%, 6/1/24 | 677,639 | ||||||
322,000 | Goldman Sachs Group, Inc. (The)., Ser | |||||||
P, 5.000%(A) | 313,145 |
25 |
Touchstone High Yield Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 98.3% (Continued) | ||||||||
Financials — (Continued) | ||||||||
$ | 1,064,000 | JPMorgan Chase & Co., Ser Z, | ||||||
5.300%(A) | $ | 1,092,728 | ||||||
844,000 | MetLife, Inc., Ser C, 5.250%(A) | 862,771 | ||||||
47,000 | MGIC Investment Corp., | |||||||
5.750%, 8/15/23 | 49,232 | |||||||
297,000 | Navient Corp., 5.000%, 10/26/20 | 298,856 | ||||||
549,000 | Navient Corp., 6.500%, 6/15/22 | 567,529 | ||||||
637,000 | Navient Corp. MTN, 7.250%, 1/25/22 | 672,831 | ||||||
504,000 | OneMain Financial Holdings LLC, | |||||||
144a, 7.250%, 12/15/21 | 522,270 | |||||||
932,000 | Quicken Loans, Inc., 144a, | |||||||
5.250%, 1/15/28 | 871,420 | |||||||
675,000 | Quicken Loans, Inc., 144a, | |||||||
5.750%, 5/1/25 | 673,312 | |||||||
430,000 | Radian Group, Inc., 4.500%, 10/1/24 | 420,325 | ||||||
497,000 | Realogy Group LLC / Realogy | |||||||
Co.-Issuer Corp., 144a, | ||||||||
4.875%, 6/1/23 | 475,878 | |||||||
1,187,000 | Royal Bank of Scotland Group PLC | |||||||
(United Kingdom), | ||||||||
6.125%, 12/15/22 | 1,257,405 | |||||||
641,000 | Springleaf Finance Corp., | |||||||
5.625%, 3/15/23 | 629,782 | |||||||
382,000 | Springleaf Finance Corp., | |||||||
6.875%, 3/15/25 | 383,432 | |||||||
255,000 | Travelport Corporate Finance PLC | |||||||
(United Kingdom), 144a, | ||||||||
6.000%, 3/15/26 | 255,956 | |||||||
16,848,258 | ||||||||
Health Care — 8.4% | ||||||||
337,000 | Acadia Healthcare Co., Inc., | |||||||
5.625%, 2/15/23 | 341,212 | |||||||
475,000 | Acadia Healthcare Co., Inc., | |||||||
6.500%, 3/1/24 | 494,000 | |||||||
1,013,000 | Centene Corp., 4.750%, 1/15/25 | 987,675 | ||||||
196,000 | Charles River Laboratories | |||||||
International, Inc., 144a, | ||||||||
5.500%, 4/1/26 | 198,695 | |||||||
1,087,000 | CHS/Community Health Systems, Inc., | |||||||
6.250%, 3/31/23 | 1,001,399 | |||||||
1,050,000 | Encompass Health Corp., | |||||||
5.750%, 11/1/24 | 1,068,375 | |||||||
488,000 | Envision Healthcare Corp., | |||||||
5.625%, 7/15/22 | 490,196 | |||||||
156,000 | Envision Healthcare Corp., 144a, | |||||||
5.125%, 7/1/22 | 155,220 | |||||||
470,000 | Envision Healthcare Corp., 144a, | |||||||
6.250%, 12/1/24 | 485,275 | |||||||
1,362,000 | HCA, Inc., 5.375%, 2/1/25 | 1,365,405 | ||||||
371,000 | HCA, Inc., 5.875%, 5/1/23 | 383,985 | ||||||
1,602,000 | HCA, Inc., 5.875%, 2/15/26 | 1,630,035 | ||||||
410,000 | Mallinckrodt International Finance SA | |||||||
/ Mallinckrodt CB LLC | ||||||||
(Luxembourg), 144a, | ||||||||
4.875%, 4/15/20 | 389,500 | |||||||
952,000 | Mallinckrodt International Finance SA | |||||||
/ Mallinckrodt CB LLC | ||||||||
(Luxembourg), 144a, | ||||||||
5.500%, 4/15/25 | 738,990 | |||||||
684,000 | Select Medical Corp., 6.375%, 6/1/21 | 694,260 | ||||||
251,000 | Teleflex, Inc., 4.625%, 11/15/27 | 241,590 | ||||||
134,000 | Teleflex, Inc., 4.875%, 6/1/26 | 132,660 | ||||||
223,000 | Tenet Healthcare Corp., | |||||||
4.500%, 4/1/21 | 221,049 | |||||||
250,000 | Tenet Healthcare Corp., | |||||||
4.750%, 6/1/20 | 251,875 | |||||||
1,613,000 | Tenet Healthcare Corp., | |||||||
6.000%, 10/1/20 | 1,667,439 | |||||||
705,000 | Tenet Healthcare Corp., 144a, | |||||||
5.125%, 5/1/25 | 677,681 | |||||||
320,000 | Tenet Healthcare Corp., 144a, | |||||||
7.500%, 1/1/22 | 337,200 | |||||||
967,000 | Teva Pharmaceutical Finance | |||||||
Netherlands III BV (Netherlands), | ||||||||
144a, 6.750%, 3/1/28 | 955,520 | |||||||
947,000 | Universal Hospital Services, Inc., | |||||||
7.625%, 8/15/20 | 954,102 | |||||||
492,000 | Valeant Pharmaceuticals International, | |||||||
Inc. (Canada), 144a, 6.125%, 4/15/25 | 424,596 | |||||||
16,287,934 | ||||||||
Consumer Staples — 8.2% | ||||||||
1,123,000 | Albertsons Cos. LLC / Safeway, Inc. / | |||||||
New Albertson's Inc. / Albertson's | ||||||||
LLC, 5.750%, 3/15/25 | 957,694 | |||||||
303,000 | American Woodmark Corp., 144a, | |||||||
4.875%, 3/15/26 | 295,804 | |||||||
1,020,000 | B&G Foods, Inc., 5.250%, 4/1/25 | 950,181 | ||||||
521,000 | Beacon Escrow Corp., 144a, | |||||||
4.875%, 11/1/25 | 496,252 | |||||||
525,000 | Cardtronics, Inc. / Cardtronics USA | |||||||
Inc., 144a, 5.500%, 5/1/25 | 494,812 | |||||||
671,000 | CDK Global, Inc., 144a, 4.875%, 6/1/27 | 645,838 | ||||||
478,000 | Central Garden & Pet Co., | |||||||
5.125%, 2/1/28 | 454,100 | |||||||
818,000 | Cott Holdings, Inc., 144a, | |||||||
5.500%, 4/1/25 | 807,775 | |||||||
374,000 | Cumberland Farms, Inc., 144a, | |||||||
6.750%, 5/1/25 | 388,960 | |||||||
748,000 | First Quality Finance Co., Inc., 144a, | |||||||
5.000%, 7/1/25 | 716,210 | |||||||
455,000 | H&E Equipment Services, Inc., | |||||||
5.625%, 9/1/25 | 458,981 | |||||||
310,000 | IHS Markit Ltd. (Bermuda), 144a, | |||||||
4.000%, 3/1/26 | 297,600 | |||||||
321,000 | IHS Markit Ltd. (Bermuda), 144a, | |||||||
5.000%, 11/1/22 | 333,038 | |||||||
775,000 | Ingles Markets, Inc., 5.750%, 6/15/23 | 774,768 | ||||||
478,000 | JBS USA LUX SA / JBS USA Finance, | |||||||
Inc., 144a, 6.750%, 2/15/28 | 458,880 | |||||||
298,000 | JBS USA LUX SA / JBS USA Finance, | |||||||
Inc., 144a, 7.250%, 6/1/21 | 300,235 |
26 |
Touchstone High Yield Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 98.3% (Continued) | ||||||||
Consumer Staples — (Continued) | ||||||||
160,000 | JBS USA LUX SA / JBS USA Finance, | |||||||
Inc., 144a, 7.250%, 6/1/21 | $ | 161,200 | ||||||
384,000 | JBS USA LUX SA/ JBS USA Finance, | |||||||
Inc., 144a, 5.875%, 7/15/24 | 374,515 | |||||||
309,000 | Performance Food Group, Inc., 144a, | |||||||
5.500%, 6/1/24 | 310,545 | |||||||
66,000 | Pilgrim's Pride Corp., 144a, | |||||||
5.750%, 3/15/25 | 64,093 | |||||||
66,000 | Pilgrim's Pride Corp., 144a, | |||||||
5.875%, 9/30/27 | 62,192 | |||||||
816,000 | Post Holdings, Inc., 144a, | |||||||
5.000%, 8/15/26 | 775,200 | |||||||
389,000 | Post Holdings, Inc., 144a, | |||||||
5.500%, 3/1/25 | 383,165 | |||||||
502,000 | Post Holdings, Inc., 144a, | |||||||
5.625%, 1/15/28 | 479,410 | |||||||
2,197,000 | Rite Aid Corp., 144a, 6.125%, 4/1/23 | 2,213,478 | ||||||
1,402,000 | Staples, Inc., 144a, 8.500%, 9/15/25 | 1,296,850 | ||||||
1,044,000 | TreeHouse Foods, Inc., 144a, | |||||||
6.000%, 2/15/24 | 1,050,525 | |||||||
16,002,301 | ||||||||
Industrials — 6.8% | ||||||||
502,000 | Adient Global Holdings Ltd. (Jersey), | |||||||
144a, 4.875%, 8/15/26 | 474,390 | |||||||
720,000 | AECOM Global II LLC / URS Fox US LP, | |||||||
5.000%, 4/1/22 | 731,503 | |||||||
691,071 | American Airlines 2013-2 Class B Pass | |||||||
Through Trust, 144a, | ||||||||
5.600%, 7/15/20 | 708,348 | |||||||
92,000 | Amsted Industries, Inc., 144a, | |||||||
5.375%, 9/15/24 | 92,000 | |||||||
245,000 | Arconic, Inc., 5.870%, 2/23/22 | 257,250 | ||||||
510,000 | Ardagh Packaging Finance PLC / | |||||||
Ardagh Holdings USA, Inc. (Ireland), | ||||||||
144a, 6.000%, 2/15/25 | 512,550 | |||||||
249,000 | Berry Global, Inc., 144a, | |||||||
4.500%, 2/15/26 | 235,616 | |||||||
591,000 | Bombardier, Inc. (Canada), 144a, | |||||||
6.000%, 10/15/22 | 585,829 | |||||||
540,000 | Bombardier, Inc. (Canada), 144a, | |||||||
7.500%, 3/15/25 | 554,175 | |||||||
622,000 | Crown Americas LLC / Crown | |||||||
Americas Capital Corp. VI, 144a, | ||||||||
4.750%, 2/1/26 | 601,785 | |||||||
514,000 | FXI Holdings, Inc., 144a, | |||||||
7.875%, 11/1/24 | 503,398 | |||||||
287,000 | James Hardie International Finance | |||||||
DAC. (Ireland), 144a, | ||||||||
4.750%, 1/15/25 | 281,260 | |||||||
464,000 | JB Poindexter & Co., Inc., 144a, | |||||||
9.000%, 4/1/22 | 478,500 | |||||||
191,000 | Jeld-Wen, Inc., 144a, 4.625%, 12/15/25 | 181,928 | ||||||
400,000 | Louisiana-Pacific Corp., | |||||||
4.875%, 9/15/24 | 401,000 | |||||||
121,000 | Moog, Inc., 144a, 5.250%, 12/1/22 | 124,025 | ||||||
804,000 | Multi-Color Corp., 144a, | |||||||
4.875%, 11/1/25 | 751,740 | |||||||
436,000 | Multi-Color Corp., 144a, | |||||||
6.125%, 12/1/22 | 449,080 | |||||||
701,000 | New Enterprise Stone & Lime Co., Inc., | |||||||
144a, 6.250%, 3/15/26 | 701,876 | |||||||
256,000 | Owens-Brockway Glass Container, Inc., | |||||||
144a, 5.875%, 8/15/23 | 264,960 | |||||||
353,000 | Plastipak Holdings, Inc., 144a, | |||||||
6.250%, 10/15/25 | 352,118 | |||||||
365,000 | Standard Industries, Inc./NJ, 144a, | |||||||
5.375%, 11/15/24 | 369,562 | |||||||
649,000 | Standard Industries, Inc./NJ, 144a, | |||||||
6.000%, 10/15/25 | 665,225 | |||||||
406,000 | Tenneco, Inc., 5.000%, 7/15/26 | 393,942 | ||||||
391,000 | TransDigm, Inc., 5.500%, 10/15/20 | 393,444 | ||||||
239,000 | Triumph Group, Inc., 4.875%, 4/1/21 | 233,622 | ||||||
570,000 | Triumph Group, Inc., 5.250%, 6/1/22 | 552,900 | ||||||
499,000 | Triumph Group, Inc., 7.750%, 8/15/25 | 511,475 | ||||||
165,198 | United Airlines 2014-2 Class B Pass | |||||||
Through Trust, 4.625%, 9/3/22 | 167,346 | |||||||
655,000 | Wabash National Corp., 144a, | |||||||
5.500%, 10/1/25 | 638,625 | |||||||
13,169,472 | ||||||||
Materials — 6.4% | ||||||||
200,000 | Alcoa Nederland Holding BV | |||||||
(Netherlands), 144a, | ||||||||
6.750%, 9/30/24 | 214,000 | |||||||
876,000 | Alcoa Nederland Holding BV | |||||||
(Netherlands), 144a, | ||||||||
7.000%, 9/30/26 | 943,890 | |||||||
315,000 | Ball Corp., 4.875%, 3/15/26 | 315,819 | ||||||
233,000 | Blue Cube Spinco, Inc., | |||||||
9.750%, 10/15/23 | 267,146 | |||||||
30,000 | Cascades, Inc. (Canada), 144a, | |||||||
5.500%, 7/15/22 | 30,188 | |||||||
441,000 | Cascades, Inc. (Canada), 144a, | |||||||
5.750%, 7/15/23 | 447,615 | |||||||
761,000 | CVR Partners LP / CVR Nitrogen | |||||||
Finance Corp., 144a, | ||||||||
9.250%, 6/15/23 | 810,237 | |||||||
1,113,000 | Freeport-McMoRan, Inc., | |||||||
3.550%, 3/1/22 | 1,076,828 | |||||||
646,000 | Freeport-McMoRan, Inc., | |||||||
6.750%, 2/1/22 | 667,802 | |||||||
112,000 | Freeport-McMoRan, Inc., | |||||||
6.875%, 2/15/23 | 120,120 | |||||||
708,000 | Hudbay Minerals, Inc. (Canada), 144a, | |||||||
7.250%, 1/15/23 | 734,550 | |||||||
579,000 | Hudbay Minerals, Inc. (Canada), 144a, | |||||||
7.625%, 1/15/25 | 611,569 | |||||||
111,000 | Kaiser Aluminum Corp., | |||||||
5.875%, 5/15/24 | 114,885 | |||||||
1,060,000 | Kinross Gold Corp. (Canada), 144a, | |||||||
4.500%, 7/15/27 | 1,038,058 |
27 |
Touchstone High Yield Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 98.3% (Continued) | ||||||||
Materials — (Continued) | ||||||||
$ | 365,000 | Lundin Mining Corp. (Canada), 144a, | ||||||
7.875%, 11/1/22 | $ | 385,531 | ||||||
765,000 | NOVA Chemicals Corp. (Canada), 144a, | |||||||
4.875%, 6/1/24 | 732,488 | |||||||
373,000 | NOVA Chemicals Corp. (Canada), 144a, | |||||||
5.250%, 8/1/23 | 375,331 | |||||||
359,000 | Olin Corp., 5.000%, 2/1/30 | 343,742 | ||||||
144,000 | PolyOne Corp., 5.250%, 3/15/23 | 147,600 | ||||||
394,000 | Steel Dynamics, Inc., 4.125%, 9/15/25 | 375,285 | ||||||
376,000 | Steel Dynamics, Inc., 5.000%, 12/15/26 | 376,000 | ||||||
249,000 | Steel Dynamics, Inc., 5.250%, 4/15/23 | 252,112 | ||||||
588,000 | Teck Resources Ltd. (Canada), | |||||||
6.250%, 7/15/41 | 623,280 | |||||||
515,000 | Trinseo Materials Operating SCA / | |||||||
Trinseo Materials Finance, Inc. | ||||||||
(Luxembourg), 144a, | ||||||||
5.375%, 9/1/25 | 505,988 | |||||||
906,000 | Tronox, Inc., 144a, 6.500%, 4/15/26 | 906,000 | ||||||
12,416,064 | ||||||||
Information Technology — 4.8% | ||||||||
849,000 | CDW LLC / CDW Finance Corp., | |||||||
5.500%, 12/1/24 | 885,337 | |||||||
148,000 | Dell International LLC / EMC Corp., | |||||||
144a, 5.875%, 6/15/21 | 152,070 | |||||||
1,142,000 | Dell International LLC / EMC Corp., | |||||||
144a, 7.125%, 6/15/24 | 1,221,335 | |||||||
1,016,000 | Diebold Nixdorf, Inc., 8.500%, 4/15/24 | 1,069,340 | ||||||
711,000 | EMC Corp., 3.375%, 6/1/23 | 655,811 | ||||||
896,000 | First Data Corp., 144a, 5.000%, 1/15/24 | 896,000 | ||||||
578,000 | First Data Corp., 144a, 5.375%, 8/15/23 | 588,115 | ||||||
336,000 | First Data Corp., 144a, 7.000%, 12/1/23 | 352,699 | ||||||
211,000 | j2 Cloud Services LLC / j2 Global | |||||||
Co.-Obligor, Inc., 144a, | ||||||||
6.000%, 7/15/25 | 216,011 | |||||||
249,000 | Match Group, Inc., 144a, | |||||||
5.000%, 12/15/27 | 245,265 | |||||||
652,000 | Netflix, Inc., 144a, 4.875%, 4/15/28 | 626,963 | ||||||
776,000 | Open Text Corp. (Canada), 144a, | |||||||
5.875%, 6/1/26 | 798,077 | |||||||
238,000 | Quintiles IMS, Inc., 144a, | |||||||
4.875%, 5/15/23 | 242,462 | |||||||
415,000 | Sensata Technologies BV | |||||||
(Netherlands), 144a, | ||||||||
5.000%, 10/1/25 | 408,775 | |||||||
338,000 | Symantec Corp., 144a, | |||||||
5.000%, 4/15/25 | 340,890 | |||||||
147,000 | VeriSign, Inc., 4.750%, 7/15/27 | 140,752 | ||||||
605,000 | Western Digital Corp., 4.750%, 2/15/26 | 603,669 | ||||||
9,443,571 | ||||||||
Utilities — 3.6% | ||||||||
554,000 | AES Corp./VA, 4.875%, 5/15/23 | 563,695 | ||||||
699,000 | DPL, Inc., 7.250%, 10/15/21 | 757,541 | ||||||
302,000 | Dynegy, Inc., 5.875%, 6/1/23 | 309,610 | ||||||
767,000 | Dynegy, Inc., 7.375%, 11/1/22 | 808,226 | ||||||
541,000 | GenOn Energy, Inc., 10/15/18(B) | 438,210 | ||||||
500,000 | GenOn Energy, Inc., 6/15/28(B) | 412,500 | ||||||
462,000 | NGL Energy Partners LP / NGL Energy | |||||||
Finance Corp., 6.125%, 3/1/25 | 440,055 | |||||||
650,000 | NGL Energy Partners LP / NGL Energy | |||||||
Finance Corp., 6.875%, 10/15/21 | 648,375 | |||||||
869,000 | NGL Energy Partners LP / NGL Energy | |||||||
Finance Corp., 7.500%, 11/1/23 | 872,259 | |||||||
595,000 | NRG Energy, Inc., 6.250%, 7/15/22 | 612,672 | ||||||
446,000 | NRG Energy, Inc., 7.250%, 5/15/26 | 471,779 | ||||||
198,000 | NRG Energy, Inc., 144a, | |||||||
5.750%, 1/15/28 | 193,545 | |||||||
400,000 | Rockpoint Gas Storage Canada Ltd., | |||||||
144a, 7.000%, 3/31/23 | 399,500 | |||||||
6,927,967 | ||||||||
Real Estate — 2.0% | ||||||||
123,000 | CoreCivic, Inc. REIT, 4.625%, 5/1/23 | 122,078 | ||||||
549,000 | CoreCivic, Inc. REIT, 4.750%, 10/15/27 | 516,060 | ||||||
263,000 | Equinix, Inc. REIT, 5.375%, 5/15/27 | 266,945 | ||||||
1,238,000 | ESH Hospitality, Inc. REIT, 144a, | |||||||
5.250%, 5/1/25 | 1,204,326 | |||||||
110,000 | GEO Group, Inc. (The) REIT, | |||||||
5.125%, 4/1/23 | 108,625 | |||||||
523,000 | MGM Growth Properties Operating | |||||||
Partnership LP / MGP Finance | ||||||||
Co.-Issuer, Inc. REIT, 5.625%, 5/1/24 | 538,690 | |||||||
1,112,000 | Sabra Health Care LP. REIT, | |||||||
5.125%, 8/15/26 | 1,072,008 | |||||||
3,828,732 | ||||||||
Total Corporate Bonds | $ | 190,591,249 |
Shares | ||||||||
Short-Term Investment Funds — 1.9% | ||||||||
665,737 | Dreyfus Government Cash | |||||||
Management, Institutional Shares, | ||||||||
1.54%∞Ω | 665,737 | |||||||
2,972,535 | Invesco Government & Agency | |||||||
Portfolio, Institutional Class, | ||||||||
1.48%**∞Ω | 2,972,535 | |||||||
Total Short-Term Investment Funds | $ | 3,638,272 | ||||||
Total Investment Securities —100.2% | ||||||||
(Cost $197,833,339) | $ | 194,229,521 | ||||||
Liabilities in Excess of | ||||||||
Other Assets — (0.2%) | (476,147 | ) | ||||||
Net Assets — 100.0% | $ | 193,753,374 |
28 |
Touchstone High Yield Fund (Unaudited) (Continued)
(A) | Perpetual Bond - A bond with no definite maturity date. |
(B) | The issuer is in default of certain debt covenants. Income is not being accrued. The total value of such securities as of March 31, 2018 was 850,710 or 0.4% of net assets. |
** | 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, 2018 was $2,866,741. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2018. |
Portfolio Abbreviations:
DAC - Designated Activity Company
LLC - Limited Liability Company
LP - Limited Partnership
MTN - Medium Term Note
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, 2018, these securities were valued at $90,845,768 or 46.9% 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 | ||||||||||||
Corporate Bonds | $ | — | $ | 190,591,249 | $ | — | $ | 190,591,249 | ||||||||
Short-Term Investment Funds | 3,638,272 | — | — | 3,638,272 | ||||||||||||
Total | $ | 3,638,272 | $ | 190,591,249 | $ | — | $ | 194,229,521 |
See accompanying Notes to Financial Statements.
29 |
Touchstone Merger Arbitrage Fund – March 31, 2018 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 95.8% | ||||||||
Financials — 57.6% | ||||||||
Avista Healthcare Public Acquisition | ||||||||
Corp. - Class A (Cayman Islands)*†† | 123,683 | $ | 1,235,593 | |||||
Big Rock Partners Acquisition Corp.* | 127,900 | 1,321,207 | ||||||
Black Ridge Acquisition Corp.* | 195,824 | 1,897,535 | ||||||
Capitol Investment Corp. IV - Class A | ||||||||
(Cayman Islands)* | 176,350 | 1,707,068 | ||||||
Capitol Investment Corp. IV (Cayman | ||||||||
Islands)* | 228,571 | 2,308,567 | ||||||
Constellation Alpha Capital Corp. | ||||||||
(British Virgin Islands)* | 329,230 | 3,249,500 | ||||||
Constellation Alpha Capital Corp. | ||||||||
(British Virgin Islands)* | 329,230 | 118,523 | ||||||
DFB Healthcare Acquisitions Corp.* | 88,256 | 886,973 | ||||||
Draper Oakwood Technology | ||||||||
Acquisition, Inc.* | 74,275 | 796,971 | ||||||
Draper Oakwood Technology | ||||||||
Acquisition, Inc., Class A* | 91,899 | 908,881 | ||||||
Federal Street Acquisition Corp. | ||||||||
- Class A* | 490,614 | 4,744,237 | ||||||
FinTech Acquisition Corp. II*†† | 379,413 | 3,771,365 | ||||||
GigCapital, Inc.* | 132,947 | 1,379,990 | ||||||
Gores Holdings II, Inc., Class A* | 342,040 | 3,420,400 | ||||||
GTY Technology Holdings, Inc., | ||||||||
Class A (Cayman Islands)*†† | 377,137 | 3,737,428 | ||||||
Haymaker Acquisition Corp.* | 518,450 | 5,158,578 | ||||||
Hennessy Capital Acquisition Corp. III* | 142,912 | 1,503,434 | ||||||
Hennessy Capital Acquisition Corp. III* | 122,869 | 1,216,403 | ||||||
Industrea Acquisition Corp.* | 12,344 | 125,785 | ||||||
Industrea Acquisition Corp., Class A* | 70,469 | 691,301 | ||||||
Kayne Anderson Acquisition Corp., | ||||||||
Class A* | 529,589 | 5,184,676 | ||||||
Landcadia Holdings, Inc.*†† | 325,932 | 3,272,357 | ||||||
Legacy Acquisition Corp.* | 400,000 | 3,980,000 | ||||||
Leisure Acquisition Corp.* | 160,000 | 1,579,200 | ||||||
Leo Holdings Corp. (Cayman Islands)* | 190,000 | 1,900,000 | ||||||
Matlin and Partners Acquisition Corp. - | ||||||||
Class A* | 467,395 | 4,580,471 | ||||||
Modern Media Acquisition Corp.* | 140,441 | 1,491,483 | ||||||
Mosaic Acquisition Corp. (Cayman | ||||||||
Islands)* | 479,200 | 4,820,752 | ||||||
Mudrick Capital Acquisition Corp.* | 165,296 | 1,677,754 | ||||||
Nebula Acquisition Corp.* | 170,000 | 1,720,400 | ||||||
One Madison Corp. (Cayman Islands)* | 295,000 | 2,950,000 | ||||||
Pensare Acquisition Corp.* | 325,286 | 3,161,780 | ||||||
Platinum Eagle Acquisition Corp. | ||||||||
(Cayman Islands)* | 158,829 | 1,612,114 | ||||||
Regalwood Global Energy Ltd. (Cayman | ||||||||
Islands)* | 162,900 | 1,642,032 | ||||||
Saban Capital Acquisition Corp. - Class A | ||||||||
(Cayman Islands)* | 272,103 | 2,704,704 | ||||||
Saban Capital Acquisition Corp. | ||||||||
(Cayman Islands)* | 72,122 | 755,839 | ||||||
Sentinel Energy Services, Inc. (Cayman | ||||||||
Islands)* | 239,500 | 2,375,840 | ||||||
Social Capital Hedosophia Holdings | ||||||||
Corp. (Cayman Islands)* | 18,520 | 195,756 | ||||||
Tiberius Acquisition Corp.* | 129,113 | 1,292,421 | ||||||
TPG Pace Energy Holdings Corp., | ||||||||
Class A* | 400,410 | 4,048,145 | ||||||
TPG Pace Energy Holdings Corp., | ||||||||
Class A* | 170,305 | 315,064 | ||||||
TPG Pace Holdings Corp., Class A | ||||||||
(Cayman Islands)* | 484,819 | 4,731,833 | ||||||
Validus Holdings Ltd. (Bermuda)†† | 56,075 | 3,782,259 | ||||||
Vantage Energy Acquisition Corp., | ||||||||
Class A | 466,814 | 4,570,109 | ||||||
XL Group Ltd. (Bermuda) | 68,795 | 3,801,612 | ||||||
108,326,340 | ||||||||
Information Technology — 11.6% | ||||||||
Blackhawk Network Holdings, Inc.* | 43,620 | 1,949,814 | ||||||
Callidus Software, Inc.* | 15,650 | 562,618 | ||||||
CSRA, Inc.†† | 94,180 | 3,883,041 | ||||||
DST Systems, Inc. | 46,909 | 3,923,938 | ||||||
Microsemi Corp.* | 53,110 | 3,437,279 | ||||||
MuleSoft, Inc., Class A* | 77,860 | 3,424,283 | ||||||
NXP Semiconductors NV (Netherlands)* | 40,500 | 4,738,500 | ||||||
21,919,473 | ||||||||
Consumer Discretionary — 6.1% | ||||||||
Lennar Corp. - Class A | 22,400 | 1,320,256 | ||||||
Lennar Corp. - Class B†† | 24,339 | 1,160,727 | ||||||
Time Warner, Inc.†† | 41,200 | 3,896,696 | ||||||
Tribune Media Co., Class A†† | 124,510 | 5,043,900 | ||||||
11,421,579 | ||||||||
Industrials — 5.4% | ||||||||
Orbital ATK, Inc.†† | 23,890 | 3,168,053 | ||||||
Rockwell Collins, Inc.†† | 27,790 | 3,747,482 | ||||||
Sparton Corp.* | 105,000 | 1,828,050 | ||||||
Student Transportation, Inc. (Canada) | 188,140 | 1,409,169 | ||||||
10,152,754 | ||||||||
Materials — 3.8% | ||||||||
KapStone Paper and Packaging Corp.†† | 97,980 | 3,361,694 | ||||||
Monsanto Co.†† | 32,540 | 3,797,093 | ||||||
7,158,787 | ||||||||
Utilities — 3.5% | ||||||||
Avista Corp.†† | 46,713 | 2,394,041 | ||||||
Dynegy, Inc.*†† | 303,723 | 4,106,335 | ||||||
6,500,376 | ||||||||
Health Care — 2.4% | ||||||||
Ablynx NV. ADR* | 39,200 | 2,138,752 | ||||||
Akorn, Inc.*†† | 126,138 | 2,360,042 | ||||||
4,498,794 | ||||||||
Consumer Staples — 2.3% | ||||||||
Blue Buffalo Pet Products, Inc.* | 88,307 | 3,515,502 | ||||||
Rite Aid Corp.* | 525,002 | 882,003 | ||||||
4,397,505 |
30 |
Touchstone Merger Arbitrage Fund (Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 95.8% (Continued) | ||||||||
Energy — 2.1% | ||||||||
Alta Mesa Resources, Inc.*†† | 229,899 | $ | 1,839,192 | |||||
RSP Permian, Inc.* | 46,950 | 2,201,016 | ||||||
4,040,208 | ||||||||
Telecommunication Services — 1.0% | ||||||||
TDC A/S (Denmark)* | 220,000 | 1,819,958 | ||||||
Total Common Stocks | $ | 180,235,774 |
Principal | ||||||||
Amount | ||||||||
Corporate Bonds — 4.4% | ||||||||
Financials — 2.4% | ||||||||
$ | 1,000,000 | Allstate Corp. (The), (3M LIBOR | ||||||
+1.935%), 3.774%, 5/15/37(A) | 985,000 | |||||||
1,200,000 | Banco Bilbao Vizcaya Argentaria SA | |||||||
(Spain), 9.000%(B) | 1,206,456 | |||||||
1,000,000 | Cooperatieve Rabobank UA | |||||||
(Netherlands), 144a, 11.000%(B) | 1,093,510 | |||||||
500,000 | Corestates Capital III, 144a, (3M LIBOR | |||||||
+0.570%), 2.409%, 2/15/27(A) | 468,750 | |||||||
500,000 | JPMorgan Chase & Co., (3M LIBOR | |||||||
+0.950%), 2.643%, 9/30/34(A) | 457,500 | |||||||
375,000 | NB Capital Trust III, (3M LIBOR | |||||||
+0.550%), 2.270%, 1/15/27(A) | 352,031 | |||||||
4,563,247 | ||||||||
Materials — 0.6% | ||||||||
1,000,000 | Silgan Holdings, Inc., 5.500%, 2/1/22 | 1,017,500 | ||||||
Energy — 0.5% | ||||||||
950,000 | Alta Mesa Holdings LP / Alta Mesa | |||||||
Finance Services Corp., | ||||||||
7.875%, 12/15/24 | 989,188 | |||||||
Consumer Discretionary — 0.5% | ||||||||
900,000 | Williams Scotsman International, Inc., | |||||||
144a, 7.875%, 12/15/22 | 930,938 | |||||||
Telecommunication Services — 0.4% | ||||||||
750,000 | Nexstar Broadcasting, Inc., 144a, | |||||||
6.125%, 2/15/22 | 770,400 | |||||||
Total Corporate Bonds | $ | 8,271,273 |
Shares | ||||||||
Warrants — 1.0% | ||||||||
Financials — 0.9% | ||||||||
Avista Healthcare Public, Class A | ||||||||
(Cayman Islands), Exp 12/2/21, | ||||||||
Price $5.75* | 308,182 | $ | 101,700 | |||||
Black Ridge Acquisition Corp., Exp | ||||||||
10/25/22 Price $11.50* | 195,824 | 68,538 | ||||||
Constellation Alpha Capital Corp., | ||||||||
Class R (Cayman Islands), Exp | ||||||||
3/23/24, Price $11.50* | 721,730 | $ | 173,215 | |||||
Federal Street Acquisition Corp., | ||||||||
Class A, Exp 7/24/22 Price $11.50* | 214,101 | 246,216 | ||||||
Gores Holdings II, Inc., Class A, Exp | ||||||||
3/6/22, Price $11.50* | 50,425 | 85,723 | ||||||
GTY Technology Holdings, Inc., Class | ||||||||
A (Cayman Islands), Exp 11/14/21, | ||||||||
Price $11.50* | 59,477 | 73,157 | ||||||
Kayne Anderson Acquisition Corp., | ||||||||
Class A, Exp 6/30/22 Price $11.50* | 141,229 | 131,343 | ||||||
Landcadia Holdings, Inc., Exp 6/1/23 | ||||||||
Price $11.50* | 66,027 | 48,530 | ||||||
Matlin and Partners Acquisition Corp., | ||||||||
Class A, Exp 5/28/21 Price $11.50* | 376,292 | 199,435 | ||||||
Pensare Acquisition Corp., Exp 8/8/22, | ||||||||
Price $11.50* | 107,893 | 53,946 | ||||||
TPG Pace Holdings Corp. - Class A, | ||||||||
Exp 8/18/22 Price $11.50* | 146,011 | 226,317 | ||||||
Vantage Energy Acquisition Corp., | ||||||||
Class A, Exp 4/12/24, Price $11.50* | 107,685 | 139,991 | ||||||
Williams Scotsman Corp., Exp | ||||||||
11/29/22, Price $11.50 | 54,560 | 91,115 | ||||||
1,639,226 | ||||||||
Energy — 0.1% | ||||||||
Alta Mesa Resources, Inc., Exp | ||||||||
02/09/23, Price $7.34 | 164,499 | 254,974 | ||||||
Information Technology — 0.0% | ||||||||
Rimini Street, Inc. Exp 9/30/22, Price | ||||||||
$11.50 | 38,187 | 22,908 | ||||||
Total Warrants | $ | 1,917,108 |
Principal | ||||||||
Amount | ||||||||
Commercial Mortgage-Backed Security — 0.7% | ||||||||
$ | 1,320,000 | GSCCRE Commercial Mortgage Trust, | ||||||
Ser 2015-HULA, Class C, 144a, (1M | ||||||||
LIBOR +2.750%), 4.527%, 8/15/32(A) | $ | 1,324,975 |
Shares | ||||||||
Exchange-Traded Funds — 0.1% | ||||||||
Consumer Discretionary Select Sector | ||||||||
SPDR Fund | 629 | 63,711 | ||||||
Consumer Staples Select Sector SPDR | ||||||||
Fund | 364 | 19,157 | ||||||
Financial Select Sector SPDR Fund | 2,354 | 64,900 | ||||||
Health Care Select Sector SPDR Fund | 192 | 15,629 | ||||||
Industrial Select Sector SPDR Fund | 701 | 52,077 | ||||||
Materials Select Sector SPDR Fund | 64 | 3,644 | ||||||
Technology Select Sector SPDR Fund | 574 | 37,551 | ||||||
Total Exchange-Traded Funds | $ | 256,669 |
31 |
Touchstone Merger Arbitrage Fund (Unaudited) (Continued)
Number | ||||||||||||
of | Notional | Market | ||||||||||
Contracts | Amount | Value | ||||||||||
Purchased Options — 0.1% | ||||||||||||
Purchased Call Options — 0.1% | ||||||||||||
SPDR S&P 500 ETF Trust., | ||||||||||||
Strike @260.00, | ||||||||||||
Exp 05/18 | 50 | $ | 1,315,750 | $ | 21,800 | |||||||
SPDR S&P 500 ETF Trust., | ||||||||||||
Strike @264.00, | ||||||||||||
Exp 04/18 | 70 | 1,842,050 | 29,750 | |||||||||
SPDR S&P 500 ETF Trust., | ||||||||||||
Strike @267.00, | ||||||||||||
Exp 04/18 | 102 | 2,684,130 | 65,688 | |||||||||
SPDR S&P 500 ETF Trust., | ||||||||||||
Strike @270.00, | ||||||||||||
Exp 04/18 | 78 | 2,052,570 | 66,066 | |||||||||
$ | 183,304 |
Number | ||||||||
of | ||||||||
Rights | ||||||||
Rights — 0.1% | ||||||||
Black Ridge Acquisition Corp. Exp | ||||||||
7/1/19, Strike Price $11.50* | 195,824 | 58,747 | ||||||
Pensare Acquisition Corp. Exp 2/1/19, | ||||||||
Strike Price $11.50* | 215,786 | 97,104 | ||||||
Media General, Inc. Exp 12/31/23, Strike | ||||||||
Price $10.00(C) | 208,090 | 20,809 | ||||||
Total Rights | $ | 176,660 |
Shares | ||||||||
Short-Term Investment Fund — 11.9% | ||||||||
Dreyfus Government Cash | ||||||||
Management, Institutional Shares, | ||||||||
1.54%∞Ω | 22,349,409 | $ | 22,349,409 | |||||
Total Long Positions | ||||||||
(Cost $219,311,192) | $ | 214,715,172 | ||||||
Securities Sold Short — (7.6%) | ||||||||
Common Stocks — (7.5%) | ||||||||
Utilities — (2.2%) | ||||||||
Vistra Energy Corp.* | (198,015 | ) | (4,124,652 | ) | ||||
Energy — (2.0%) | ||||||||
Concho Resources, Inc.* | (15,024 | ) | (2,258,558 | ) | ||||
SPDR S&P Oil & Gas Exploration & | ||||||||
Production ETF | (42,000 | ) | (1,479,240 | ) | ||||
(3,737,798 | ) | |||||||
Consumer Discretionary — (1.6%) | ||||||||
Lennar Corp. - Class A | (36,632 | ) | (2,159,090 | ) | ||||
Lennar Corp. - Class B | (607 | ) | (28,948 | ) | ||||
Sinclair Broadcast Group, Inc., Class A | (28,639 | ) | (896,401 | ) | ||||
(3,084,439 | ) | |||||||
Industrials — (0.7%) | ||||||||
United Technologies Corp. | (10,429 | ) | (1,312,177 | ) | ||||
Telecommunication Services — (0.6%) | ||||||||
AT&T, Inc. | (32,960 | ) | (1,175,024 | ) | ||||
Information Technology — (0.4%) | ||||||||
salesforce.com, Inc.* | (5,537 | ) | (643,953 | ) | ||||
Total Common Stocks | $ | (14,078,043 | ) | |||||
Exchange-Traded Funds — (0.1%) | ||||||||
Energy Select Sector SPDR Fund | (229 | ) | (15,437 | ) | ||||
iShares US Telecommunications ETF | (235 | ) | (6,350 | ) | ||||
Real Estate Select Sector SPDR Fund | (4,164 | ) | (129,417 | ) | ||||
Utilities Select Sector SPDR Fund | (2,281 | ) | (115,259 | ) | ||||
Total Exchange-Traded Funds | $ | (266,463 | ) | |||||
Total Securities Sold Short | ||||||||
(Proceeds $14,081,089) | $ | (14,344,506 | ) |
Number | ||||||||||||
of | Notional | |||||||||||
Contracts | Amount | |||||||||||
Written Options — (0.1%) | ||||||||||||
Written Put Options — (0.1%) | ||||||||||||
SPDR S&P 500 ETF Trust., | ||||||||||||
Strike @250.00, | ||||||||||||
Exp 05/18 | (50 | ) | $ | (1,315,750 | ) | (9,000 | ) | |||||
SPDR S&P 500 ETF Trust., | ||||||||||||
Strike @260.00, | ||||||||||||
Exp 04/18 | (70 | ) | (1,842,050 | ) | (18,900 | ) | ||||||
SPDR S&P 500 ETF Trust., | ||||||||||||
Strike @260.00, | ||||||||||||
Exp 04/18 | (102 | ) | (2,684,130 | ) | (34,680 | ) | ||||||
SPDR S&P 500 ETF Trust., | ||||||||||||
Strike @262.00, | ||||||||||||
Exp 04/18 | (78 | ) | (2,052,570 | ) | (31,356 | ) | ||||||
SPDR S&P 500 ETF Trust., | ||||||||||||
Strike @34.00, Exp 04/18 | (210 | ) | (3,360 | ) | (3,360 | ) | ||||||
SPDR S&P 500 ETF Trust., | ||||||||||||
Strike @34.50, Exp 04/18 | (210 | ) | (3,360 | ) | (5,670 | ) | ||||||
$ | (102,966 | ) | ||||||||||
Written Call Options — (0.0%) | ||||||||||||
SPDR S&P 500 ETF Trust., | ||||||||||||
Strike @268.00, | ||||||||||||
Exp 04/18 | (70 | ) | (1,842,050 | ) | (12,600 | ) | ||||||
SPDR S&P 500 ETF Trust., | ||||||||||||
Strike @270.00, | ||||||||||||
Exp 04/18 | (102 | ) | (2,684,130 | ) | (17,034 | ) |
32 |
Touchstone Merger Arbitrage Fund (Unaudited) (Continued)
Number | ||||||||||||
of | Notional | Market | ||||||||||
Contracts | Amount | Value | ||||||||||
Written Call Options — (0.0%) (Continued) | ||||||||||||
SPDR S&P 500 ETF Trust., | ||||||||||||
Strike @270.00, | ||||||||||||
Exp 05/18 | (50 | ) | $ | (1,315,750 | ) | $ | (12,150 | ) | ||||
SPDR S&P 500 ETF Trust., | ||||||||||||
Strike @272.00, | ||||||||||||
Exp 04/18 | (78 | ) | (2,052,570 | ) | (13,416 | ) | ||||||
$ | (55,200 | ) | ||||||||||
Total Written Options | ||||||||||||
(Premiums received $183,789) | $ | (158,166 | ) | |||||||||
Total — 106.4% | $ | 200,212,500 | ||||||||||
Liabilities in Excess of Other Assets — (6.4%) | (12,113,462 | ) | ||||||||||
Net Assets — 100.0% | $ | 188,099,038 |
(A) | Variable rate security - Rate reflected is the rate in effect as of March 31, 2018. |
(B) | Perpetual Bond - A bond with no definite maturity date. |
(C) | Level 3 - 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. |
* | Non-income producing security. |
†† | All or a portion of these securities are pledged as collateral for securities sold short and written options. The total value of the securities pledged as collateral as of March 31, 2018 was $47,901,941. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2018. |
Portfolio Abbreviations:
ADR - American Depositary Receipt
DKK - Danish Krone
ETF - Exchange-Traded Fund
EUR - Euro
LIBOR - London Interbank Offered Rate
LP - Limited Partnership
SPDR - Standard & Poor's Depositary Receipt
USD - United States Dollar
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, 2018, these securities were valued at $4,588,572 or 2.4% 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 | $ | 180,235,774 | $ | — | $ | — | $ | 180,235,774 | ||||||||
Corporate Bonds | — | 8,271,273 | — | 8,271,273 | ||||||||||||
Warrants | 1,917,108 | — | — | 1,917,108 | ||||||||||||
Commercial Mortgage-Backed Security | — | 1,324,975 | — | 1,324,975 | ||||||||||||
Exchange-Traded Funds | 256,669 | — | — | 256,669 | ||||||||||||
Purchased Options Equity Contracts | 183,304 | — | — | 183,304 | ||||||||||||
Rights | 155,851 | — | 20,809 | 176,660 | ||||||||||||
Short-Term Investment Fund | 22,349,409 | — | — | 22,349,409 | ||||||||||||
Other Financial Instruments** | ||||||||||||||||
Forward Foreign Currency Contracts | — | 25,628 | — | 25,628 | ||||||||||||
Total Assets | $ | 205,098,115 | $ | 9,621,876 | $ | 20,809 | $ | 214,740,800 | ||||||||
Liabilities: | ||||||||||||||||
Securities Sold Short | ||||||||||||||||
Common Stocks | $ | (14,078,043 | ) | $ | — | $ | — | $ | (14,078,043 | ) | ||||||
Exchange-Traded Funds | (266,463 | ) | — | — | (266,463 | ) | ||||||||||
Other Financial Instruments** | ||||||||||||||||
Written Options | ||||||||||||||||
Equity Contracts | (158,166 | ) | — | — | (158,166 | ) | ||||||||||
Total Liabilities | $ | (14,502,672 | ) | $ | — | $ | — | $ | (14,502,672 | ) | ||||||
Total | $ | 190,595,443 | $ | 9,621,876 | $ | 20,809 | $ | 200,238,128 |
33 |
Touchstone Merger Arbitrage Fund (Unaudited) (Continued)
** Other Financial Instruments are derivative instruments not reflected in total investments. Amounts shown represent market value for written option equity contracts and unrealized appreciation on forward foreign currency contracts.
At March 31, 2018, equity securities valued at $1,491,483 were transferred from Level 2 to Level 1. Transfers from Level 1 to Level 2 are due to movements of a designated U.S. market index, triggering a systematic valuation model, provided by an independent third party, when required confidence levels are achieved to fair value the international equity securities. Transfers from Level 2 to Level 1 occur when there is no longermovement of the designated U.S. market index or required confidence levels were not reached in the systematicmodel.
Measurements Using Unobservable Inputs (Level 3) | ||||
Assets | Rights | |||
Beginning balance September 30, 2017 | $ | 20,809 | ||
Net change in unrealized appreciation/depreciation | — | |||
Realized gain from distributions received | — | |||
Ending balance March 31, 2018 | $ | 20,809 | ||
Net Change in Unrealized Appreciation/Depreciation for Investments in Securities still held at March 31, 2018 | $ | — |
Valuation | Unobservable | |||||||
Rights | Fair Value | Technique | Input | |||||
Media General, Inc. | ||||||||
Exp 12/31/23, | Issuer | New | ||||||
Strike Price $10.00 | $ | 20,809 | Guidance | Issuer |
Forward Foreign Currency Contracts
Contract to | Unrealized | |||||||||||||||||
Counterparty | Expiration Date | Receive | Deliver | Appreciation | ||||||||||||||
Brown Brothers Harriman | 04/30/2018 | USD | 991,262 | DKK | 5,950,052 | $ | 6,903 | |||||||||||
Brown Brothers Harriman | 04/30/2018 | USD | 848,844 | DKK | 5,104,948 | 4,296 | ||||||||||||
Brown Brothers Harriman | 05/31/2018 | USD | 2,194,945 | EUR | 1,764,000 | 14,429 | ||||||||||||
$ | 25,628 |
See accompanying Notes to Financial Statements.
34 |
Touchstone Mid Cap Fund – March 31, 2018 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 98.7% | ||||||||
Industrials — 22.5% | ||||||||
Armstrong World Industries, Inc.* | 488,200 | $ | 27,485,660 | |||||
Cintas Corp. | 351,110 | 59,892,344 | ||||||
Copart, Inc.* | 664,988 | 33,867,839 | ||||||
Old Dominion Freight Line, Inc. | 268,880 | 39,517,294 | ||||||
Sensata Technologies Holding PLC | ||||||||
(Great Britain)* | 480,710 | 24,915,199 | ||||||
185,678,336 | ||||||||
Consumer Discretionary — 19.5% | ||||||||
CarMax, Inc.* | 430,160 | 26,644,110 | ||||||
Deckers Outdoor Corp.* | 189,500 | 17,060,685 | ||||||
Dollar Tree, Inc.* | 270,310 | 25,652,419 | ||||||
Hasbro, Inc. | 275,780 | 23,248,254 | ||||||
Penske Automotive Group, Inc. | 480,744 | 21,311,381 | ||||||
Tiffany & Co. | 286,960 | 28,024,514 | ||||||
Whirlpool Corp. | 125,070 | 19,149,468 | ||||||
161,090,831 | ||||||||
Financials — 18.6% | ||||||||
Alleghany Corp. | 56,740 | 34,863,326 | ||||||
M&T Bank Corp. | 202,090 | 37,257,312 | ||||||
Progressive Corp. (The) | 557,500 | 33,968,475 | ||||||
T Rowe Price Group, Inc. | 299,170 | 32,301,385 | ||||||
Voya Financial, Inc. | 304,530 | 15,378,765 | ||||||
153,769,263 | ||||||||
Information Technology — 13.1% | ||||||||
Amphenol Corp. - Class A | 400,960 | 34,534,685 | ||||||
Citrix Systems, Inc.* | 303,870 | 28,199,136 | ||||||
Paychex, Inc. | 495,800 | 30,536,322 | ||||||
Symantec Corp. | 556,989 | 14,398,166 | ||||||
107,668,309 | ||||||||
Consumer Staples — 11.6% | ||||||||
Brown-Forman Corp. - Class B | 517,230 | 28,137,312 | ||||||
Edgewell Personal Care Co.* | 211,160 | 10,308,831 | ||||||
Energizer Holdings, Inc. | 340,361 | 20,278,708 | ||||||
Post Holdings, Inc.* | 484,917 | 36,737,312 | ||||||
95,462,163 | ||||||||
Materials — 10.4% | ||||||||
Ball Corp. | 784,110 | 31,137,008 | ||||||
NewMarket Corp. | 73,050 | 29,342,724 | ||||||
Vulcan Materials Co. | 221,660 | 25,306,922 | ||||||
85,786,654 | ||||||||
Real Estate — 3.0% | ||||||||
STORE Capital Corp. REIT | 993,630 | 24,661,896 | ||||||
Total Common Stocks | $ | 814,117,452 | ||||||
Short-Term Investment Fund — 0.6% | ||||||||
Dreyfus Government Cash | ||||||||
Management, Institutional Shares, | ||||||||
1.54%∞Ω | 4,640,637 | $ | 4,640,637 | |||||
Total Investment Securities —99.3% | ||||||||
(Cost $689,624,731) | $ | 818,758,089 | ||||||
Other Assets in Excess of Liabilities — 0.7% | 5,987,368 | |||||||
Net Assets — 100.0% | $ | 824,745,457 |
* | Non-income producing security. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2018. |
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 | $ | 814,117,452 | $ | — | $ | — | $ | 814,117,452 | ||||||||
Short-Term Investment Fund | 4,640,637 | — | — | 4,640,637 | ||||||||||||
Total | $ | 818,758,089 | $ | — | $ | — | $ | 818,758,089 |
See accompanying Notes to Financial Statements.
35 |
Touchstone Mid Cap Value Fund – March 31, 2018 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 98.7% | ||||||||
Financials — 21.2% | ||||||||
Allstate Corp. (The) | 130,033 | $ | 12,327,128 | |||||
Ameriprise Financial, Inc. | 82,893 | 12,263,191 | ||||||
Blackstone Mortgage Trust, Inc. - Class A, REIT† | 362,503 | 11,389,844 | ||||||
E*TRADE Financial Corp.* | 227,955 | 12,630,987 | ||||||
Hanover Insurance Group, Inc. (The) | 83,098 | 9,796,423 | ||||||
Hartford Financial Services Group, Inc. (The) | 199,179 | 10,261,702 | ||||||
M&T Bank Corp. | 45,499 | 8,388,196 | ||||||
PacWest Bancorp | 232,931 | 11,537,073 | ||||||
Pinnacle Financial Partners, Inc. | 155,065 | 9,955,173 | ||||||
Reinsurance Group of America, Inc. | 83,098 | 12,797,092 | ||||||
Signature Bank* | 86,176 | 12,232,683 | ||||||
SVB Financial Group* | 46,832 | 11,240,148 | ||||||
TCF Financial Corp. | 370,043 | 8,440,681 | ||||||
Unum Group | 218,466 | 10,401,166 | ||||||
153,661,487 | ||||||||
Industrials — 13.2% | ||||||||
Aercap Holdings N.V. (Netherlands)* | 272,069 | 13,799,340 | ||||||
Clean Harbors, Inc.* | 173,531 | 8,470,048 | ||||||
Dover Corp. | 135,419 | 13,300,854 | ||||||
Fluor Corp. | 141,215 | 8,080,322 | ||||||
KAR Auction Services, Inc. | 255,142 | 13,828,696 | ||||||
Parker-Hannifin Corp. | 40,985 | 7,009,665 | ||||||
Regal-Beloit Corp. | 152,398 | 11,178,393 | ||||||
Snap-on, Inc. | 82,995 | 12,245,082 | ||||||
Stericycle, Inc.* | 130,238 | 7,622,830 | ||||||
95,535,230 | ||||||||
Materials — 11.6% | ||||||||
Allegheny Technologies, Inc.* | 346,139 | 8,196,572 | ||||||
Bemis Co., Inc. | 213,798 | 9,304,489 | ||||||
Berry Global Group, Inc.* | 187,073 | 10,253,471 | ||||||
FMC Corp. | 157,630 | 12,069,729 | ||||||
Olin Corp. | 254,132 | 7,723,072 | ||||||
PPG Industries, Inc. | 89,100 | 9,943,560 | ||||||
Scotts Miracle-Gro Co. (The) | 110,900 | 9,509,675 | ||||||
Sonoco Products Co. | 136,548 | 6,622,578 | ||||||
Valvoline, Inc. | 455,193 | 10,073,421 | ||||||
83,696,567 | ||||||||
Consumer Discretionary — 10.7% | ||||||||
Aramark | 308,591 | 12,207,860 | ||||||
BorgWarner, Inc. | 261,451 | 13,132,684 | ||||||
Carter's, Inc. | 60,682 | 6,316,996 | ||||||
Dollar General Corp. | 42,626 | 3,987,662 | ||||||
Dollar Tree, Inc.* | 130,751 | 12,408,270 | ||||||
LKQ Corp.* | 452,833 | 17,185,012 | ||||||
Michaels Cos., Inc. (The)* | 275,814 | 5,436,294 | ||||||
Newell Brands, Inc. | 280,584 | 7,149,280 | ||||||
77,824,058 | ||||||||
Information Technology — 8.8% | ||||||||
Diebold Nixdorf, Inc. | 291,613 | 4,490,840 | ||||||
Fidelity National Information Services, Inc. | 131,572 | 12,670,384 | ||||||
MACOM Technology Solutions Holdings, Inc.*† | 867,708 | 14,403,953 | ||||||
PTC, Inc.* | 136,291 | 10,632,061 | ||||||
Qorvo, Inc.* | 125,878 | 8,868,105 | ||||||
Synopsys, Inc.* | 150,705 | 12,544,684 | ||||||
63,610,027 | ||||||||
Real Estate — 7.9% | ||||||||
Alexandria Real Estate Equities, Inc., REIT | 102,539 | 12,806,096 | ||||||
American Campus Communities, Inc., REIT | 271,505 | 10,485,523 | ||||||
Brixmor Property Group, Inc., REIT | 516,285 | 7,873,346 | ||||||
Equinix, Inc., REIT | 21,082 | 8,815,228 | ||||||
Host Hotels & Resorts, Inc., REIT | 477,147 | 8,894,020 | ||||||
Mid-America Apartment Communities, Inc., REIT | 92,382 | 8,428,934 | ||||||
57,303,147 | ||||||||
Utilities — 7.8% | ||||||||
DTE Energy Co. | 117,261 | 12,242,048 | ||||||
Edison International | 127,359 | 8,107,674 | ||||||
Great Plains Energy, Inc. | 274,634 | 8,730,615 | ||||||
Pinnacle West Capital Corp. | 155,629 | 12,419,194 | ||||||
PPL Corp. | 229,392 | 6,489,500 | ||||||
Westar Energy, Inc. | 154,963 | 8,149,504 | ||||||
56,138,535 | ||||||||
Energy — 7.3% | ||||||||
Anadarko Petroleum Corp. | 203,436 | 12,289,569 | ||||||
Cimarex Energy Co. | 120,618 | 11,277,783 | ||||||
EQT Corp. | 201,744 | 9,584,858 | ||||||
Newfield Exploration Co.* | 320,441 | 7,825,169 | ||||||
Noble Energy, Inc. | 389,022 | 11,787,367 | ||||||
52,764,746 | ||||||||
Health Care — 6.1% | ||||||||
AmerisourceBergen Corp. | 62,221 | 5,364,072 | ||||||
Charles River Laboratories International, Inc.* | 96,230 | 10,271,590 | ||||||
DENTSPLY SIRONA, Inc. | 203,385 | 10,232,299 | ||||||
Envision Healthcare Corp.* | 321,826 | 12,367,773 | ||||||
Patterson Cos., Inc. | 263,452 | 5,856,538 | ||||||
44,092,272 | ||||||||
Consumer Staples — 4.1% | ||||||||
Darling Ingredients, Inc.* | 418,260 | 7,235,898 | ||||||
Hain Celestial Group, Inc. (The)* | 260,733 | 8,361,707 | ||||||
Kroger Co. (The) | 339,830 | 8,135,530 | ||||||
TreeHouse Foods, Inc.* | 160,656 | 6,148,305 | ||||||
29,881,440 | ||||||||
Total Common Stocks | $ | 714,507,509 |
36 |
Touchstone Mid Cap Value Fund (Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Exchange-Traded Fund — 0.3% | ||||||||
iShares Russell Mid-Cap Value ETF | 21,441 | $ | 1,853,146 | |||||
Short-Term Investment Funds — 5.6% | ||||||||
Dreyfus Government Cash | ||||||||
Management, Institutional Shares, | ||||||||
1.54%∞Ω | 20,043,047 | 20,043,047 | ||||||
Invesco Government & Agency | ||||||||
Portfolio, Institutional Class, | ||||||||
1.48%**∞Ω | 20,761,501 | 20,761,501 | ||||||
Total Short-Term Investment Funds | $ | 40,804,548 | ||||||
Total Investment Securities — 104.6% | ||||||||
(Cost $697,021,090) | $ | 757,165,203 | ||||||
Liabilities in Excess of Other Assets — (4.6%) | (33,425,751 | ) | ||||||
Net Assets — 100.0% | $ | 723,739,452 |
* | 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, 2018 was $21,066,580. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2018. |
Portfolio Abbreviations:
ETF - Exchange-Traded Fund
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 | $ | 714,507,509 | $ | — | $ | — | $ | 714,507,509 | ||||||||
Exchanged-Traded Fund | 1,853,146 | — | — | 1,853,146 | ||||||||||||
Short-Term Investment Funds | 40,804,548 | — | — | 40,804,548 | ||||||||||||
Total | $ | 757,165,203 | $ | — | $ | — | $ | 757,165,203 |
See accompanying Notes to Financial Statements.
37 |
Touchstone Premium Yield Equity Fund – March 31, 2018 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 97.7% | ||||||||
Information Technology — 24.2% | ||||||||
Canon, Inc., ADR | 76,697 | $ | 2,795,606 | |||||
Cisco Systems, Inc. | 70,756 | 3,034,725 | ||||||
Cypress Semiconductor Corp. | 193,628 | 3,283,931 | ||||||
HP, Inc. | 108,640 | 2,381,389 | ||||||
KLA-Tencor Corp. | 21,247 | 2,316,135 | ||||||
QUALCOMM, Inc. | 37,282 | 2,065,796 | ||||||
Sabre Corp. | 114,854 | 2,463,618 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 64,743 | 2,833,154 | ||||||
Texas Instruments, Inc. | 23,051 | 2,394,768 | ||||||
Western Digital Corp. | 34,476 | 3,181,100 | ||||||
26,750,222 | ||||||||
Financials — 22.8% | ||||||||
Aegon NV (Netherlands)† | 339,550 | 2,298,753 | ||||||
Bank of Montreal (Canada) | 29,866 | 2,256,974 | ||||||
BB&T Corp. | 87,794 | 4,568,800 | ||||||
CME Group, Inc. | 16,637 | 2,690,868 | ||||||
FNF Group | 57,728 | 2,310,275 | ||||||
HSBC Holdings PLC, ADR† | 55,322 | 2,637,200 | ||||||
Huntington Bancshares, Inc. | 211,467 | 3,193,152 | ||||||
Old Republic International Corp. | 88,596 | 1,900,384 | ||||||
Toronto-Dominion Bank (The) (Canada) | 58,529 | 3,327,374 | ||||||
25,183,780 | ||||||||
Energy — 10.2% | ||||||||
Enbridge, Inc. (Canada) | 76,970 | 2,422,246 | ||||||
ONEOK, Inc. | 45,501 | 2,589,917 | ||||||
Pembina Pipeline Corp. (Canada) | 28,062 | 876,376 | ||||||
TOTAL SA, ADR | 48,627 | 2,805,292 | ||||||
Williams Cos., Inc. (The) | 103,428 | 2,571,220 | ||||||
11,265,051 | ||||||||
Telecommunication Services — 8.5% | ||||||||
BCE, Inc. (Canada) | 57,728 | 2,484,613 | ||||||
Verizon Communications, Inc. | 68,351 | 3,268,545 | ||||||
Vodafone Group PLC, ADR | 131,090 | 3,646,924 | ||||||
9,400,082 | ||||||||
Health Care — 8.0% | ||||||||
AbbVie, Inc. | 26,258 | 2,485,320 | ||||||
Merck & Co., Inc. | 54,520 | 2,969,704 | ||||||
Pfizer, Inc. | 94,008 | 3,336,344 | ||||||
8,791,368 | ||||||||
Real Estate — 5.6% | ||||||||
Crown Castle International Corp., REIT | 24,053 | 2,636,449 | ||||||
Digital Realty Trust, Inc., REIT | 11,225 | 1,182,890 | ||||||
Lamar Advertising Co. - Class A, REIT | 37,082 | 2,360,640 | ||||||
6,179,979 | ||||||||
Consumer Discretionary — 4.8% | ||||||||
Tapestry, Inc. | 42,788 | 2,251,077 | ||||||
Target Corp. | 44,298 | 3,075,610 | ||||||
5,326,687 | ||||||||
Industrials — 4.3% | ||||||||
Eaton Corp. PLC (Ireland) | 39,086 | 3,123,362 | ||||||
United Parcel Service, Inc. - Class B | 15,635 | 1,636,359 | ||||||
4,759,721 | ||||||||
Utilities — 4.2% | ||||||||
AES Corp. | 152,537 | 1,734,346 | ||||||
CenterPoint Energy, Inc. | 105,167 | 2,881,576 | ||||||
4,615,922 | ||||||||
Materials — 3.1% | ||||||||
LyondellBasell Industries NV - Class A | ||||||||
(Netherlands) | 32,672 | 3,452,777 | ||||||
Consumer Staples — 2.0% | ||||||||
Sysco Corp. | 37,282 | 2,235,429 | ||||||
Total Common Stocks | $ | 107,961,018 | ||||||
Short-Term Investment Funds — 7.0% | ||||||||
Dreyfus Government Cash | ||||||||
Management, Institutional Shares, | ||||||||
1.54%∞Ω | 3,105,698 | 3,105,698 | ||||||
Invesco Government & Agency | ||||||||
Portfolio, Institutional Class, | ||||||||
1.48%**∞Ω | 4,684,185 | 4,684,185 | ||||||
Total Short-Term Investment Funds | $ | 7,789,883 | ||||||
Total Investment Securities —104.7% | ||||||||
(Cost $101,538,812) | $ | 115,750,901 | ||||||
Liabilities in Excess of Other Assets — (4.7%) | (5,244,094 | ) | ||||||
Net Assets — 100.0% | $ | 110,506,807 |
** | 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, 2018 was $4,587,097. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2018. |
Portfolio Abbreviations:
ADR - American Depositary Receipt
PLC - Public Limited Company
REIT - Real Estate Investment Trust
38 |
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 | $ | 107,961,018 | $ | — | $ | — | $ | 107,961,018 | ||||||||
Short-Term Investment Funds | 7,789,883 | — | — | 7,789,883 | ||||||||||||
Total | $ | 115,750,901 | $ | — | $ | — | $ | 115,750,901 |
See accompanying Notes to Financial Statements.
39 |
Touchstone Sands Capital Select Growth Fund – March 31, 2018 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 98.4% | ||||||||
Information Technology — 54.5% | ||||||||
Activision Blizzard, Inc. | 719,000 | $ | 48,503,740 | |||||
Adobe Systems, Inc.* | 568,134 | 122,762,395 | ||||||
Alibaba Group Holding Ltd. ADR* | 1,033,867 | 189,755,949 | ||||||
Alphabet, Inc. - Class A* | 105,500 | 109,418,270 | ||||||
Alphabet, Inc. - Class C* | 9,000 | 9,286,110 | ||||||
Baidu, Inc. ADR* | 407,480 | 90,945,461 | ||||||
CoStar Group, Inc.* | 159,098 | 57,701,663 | ||||||
Facebook, Inc. - Class A* | 801,880 | 128,132,405 | ||||||
Palo Alto Networks, Inc.* | 452,500 | 82,137,800 | ||||||
salesforce.com, Inc.* | 1,335,612 | 155,331,676 | ||||||
ServiceNow, Inc.* | 831,000 | 137,488,950 | ||||||
Splunk, Inc.* | 698,844 | 68,759,261 | ||||||
Visa, Inc. - Class A | 1,397,699 | 167,192,754 | ||||||
1,367,416,434 | ||||||||
Consumer Discretionary — 21.0% | ||||||||
Amazon.com, Inc.* | 143,500 | 207,693,290 | ||||||
Booking Holdings, Inc.* | 56,600 | 117,750,074 | ||||||
Netflix, Inc.* | 548,500 | 161,999,475 | ||||||
Starbucks Corp. | 692,000 | 40,059,880 | ||||||
527,502,719 | ||||||||
Health Care — 16.6% | ||||||||
Alexion Pharmaceuticals, Inc.* | 425,230 | 47,396,136 | ||||||
Align Technology, Inc.* | 205,000 | 51,481,650 | ||||||
BioMarin Pharmaceutical, Inc.* | 538,681 | 43,670,869 | ||||||
Edwards Lifesciences Corp.* | 431,677 | 60,227,575 | ||||||
Illumina, Inc.* | 324,396 | 76,693,702 | ||||||
Incyte Corp.* | 603,062 | 50,253,156 | ||||||
Loxo Oncology, Inc.* | 262,261 | 30,257,052 | ||||||
Regeneron Pharmaceuticals, Inc.* | 162,000 | 55,786,320 | ||||||
415,766,460 | ||||||||
Consumer Staples — 3.2% | ||||||||
Monster Beverage Corp.* | 1,405,000 | 80,380,050 | ||||||
Financials — 3.1% | ||||||||
Charles Schwab Corp. (The) | 1,468,000 | 76,658,960 | ||||||
Total Common Stocks | $ | 2,467,724,623 | ||||||
Short-Term Investment Fund — 1.8% | ||||||||
Dreyfus Government Cash | ||||||||
Management, Institutional Shares, | ||||||||
1.54%∞Ω | 44,271,938 | $ | 44,271,938 | |||||
Total Investment Securities —100.2% | ||||||||
(Cost $1,096,584,451) | $ | 2,511,996,561 | ||||||
Liabilities in Excess of Other Assets — (0.2%) | (5,405,847 | ) | ||||||
Net Assets — 100.0% | $ | 2,506,590,714 |
* | Non-income producing security. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2018. |
Portfolio Abbreviation:
ADR - American Depositary Receipt
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date:
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 2,467,724,623 | $ | — | $ | — | $ | 2,467,724,623 | ||||||||
Short-Term Investment Fund | 44,271,938 | — | — | 44,271,938 | ||||||||||||
Total | $ | 2,511,996,561 | $ | — | $ | — | $ | 2,511,996,561 |
See accompanying Notes to Financial Statements.
40 |
Touchstone Small Cap Fund – March 31, 2018 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 97.9% | ||||||||
Industrials — 30.4% | ||||||||
Armstrong World Industries, Inc.* | 106,263 | $ | 5,982,607 | |||||
GATX Corp. | 122,562 | 8,394,271 | ||||||
Kaman Corp. | 112,540 | 6,990,985 | ||||||
Landstar System, Inc. | 89,519 | 9,815,758 | ||||||
Matson, Inc. | 106,989 | 3,064,165 | ||||||
Orbital ATK, Inc. | 58,977 | 7,820,940 | ||||||
USG Corp.* | 202,992 | 8,204,937 | ||||||
50,273,663 | ||||||||
Consumer Discretionary — 17.5% | ||||||||
Cooper Tire & Rubber Co. | 123,382 | 3,615,093 | ||||||
Deckers Outdoor Corp.* | 29,547 | 2,660,116 | ||||||
MSG Networks, Inc., Class A* | 233,270 | 5,271,902 | ||||||
Penske Automotive Group, Inc. | 141,628 | 6,278,369 | ||||||
Service Corp. International | 111,508 | 4,208,312 | ||||||
Sturm Ruger & Co., Inc.† | 79,613 | 4,179,683 | ||||||
Tempur Sealy International, Inc.* | 60,615 | 2,745,253 | ||||||
28,958,728 | ||||||||
Materials — 14.3% | ||||||||
GCP Applied Technologies, Inc.* | 155,991 | 4,531,539 | ||||||
Ingevity Corp.* | 87,741 | 6,465,634 | ||||||
NewMarket Corp. | 22,961 | 9,222,974 | ||||||
Olin Corp. | 55,794 | 1,695,580 | ||||||
Tredegar Corp. | 95,498 | 1,714,189 | ||||||
23,629,916 | ||||||||
Real Estate — 8.8% | ||||||||
Alexander & Baldwin, Inc. REIT | 278,125 | 6,433,031 | ||||||
First Industrial Realty Trust, Inc. REIT | 217,475 | 6,356,794 | ||||||
Tejon Ranch Co.* | 73,734 | 1,703,993 | ||||||
14,493,818 | ||||||||
Information Technology — 7.9% | ||||||||
DST Systems, Inc. | 95,999 | 8,030,316 | ||||||
Versum Materials, Inc. | 133,171 | 5,011,225 | ||||||
13,041,541 | ||||||||
Consumer Staples — 7.9% | ||||||||
Energizer Holdings, Inc. | 125,437 | 7,473,536 | ||||||
PriceSmart, Inc. | 66,507 | 5,556,660 | ||||||
13,030,196 | ||||||||
Financials — 7.5% | ||||||||
Eaton Vance Corp. | 81,141 | 4,517,120 | ||||||
MBIA, Inc.*† | 321,586 | 2,977,886 | ||||||
White Mountains Insurance Group Ltd. | ||||||||
(Bermuda) | 5,946 | 4,890,704 | ||||||
12,385,710 | ||||||||
Energy — 2.0% | ||||||||
Dril-Quip, Inc.* | 75,976 | 3,403,725 | ||||||
Health Care — 1.6% | ||||||||
Bruker Corp. | 86,911 | 2,600,377 | ||||||
Total Common Stocks | $ | 161,817,674 | ||||||
Short-Term Investment Funds — 5.2% | ||||||||
Dreyfus Government Cash | ||||||||
Management, Institutional Shares, | ||||||||
1.54%∞Ω | 2,260,371 | $ | 2,260,371 | |||||
Invesco Government & Agency | ||||||||
Portfolio, Institutional Class, | ||||||||
1.48%**∞Ω | 6,324,413 | 6,324,413 | ||||||
Total Short-Term Investment Funds | $ | 8,584,784 | ||||||
Total Investment Securities —103.1% | ||||||||
(Cost $116,308,131) | $ | 170,402,458 | ||||||
Liabilities in Excess of Other Assets — (3.1%) | (5,060,999 | ) | ||||||
Net Assets — 100.0% | $ | 165,341,459 |
* | 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, 2018 was $6,360,406. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2018. |
Portfolio Abbreviation:
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 | $ | 161,817,674 | $ | — | $ | — | $ | 161,817,674 | ||||||||
Short-Term Investment Funds | 8,584,784 | — | — | 8,584,784 | ||||||||||||
Total | $ | 170,402,458 | $ | — | $ | — | $ | 170,402,458 |
See accompanying Notes to Financial Statements.
41 |
Touchstone Small Cap Value Fund – March 31, 2018 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 96.0% | ||||||||
Financials — 26.2% | ||||||||
Banc of California, Inc.† | 20,854 | $ | 402,482 | |||||
Bank of NT Butterfield & Son Ltd. (The) | ||||||||
(Bermuda) | 33,721 | 1,513,398 | ||||||
BankUnited, Inc. | 45,232 | 1,808,375 | ||||||
Blackstone Mortgage Trust, Inc. | ||||||||
- Class A REIT† | 55,240 | 1,735,641 | ||||||
Chemical Financial Corp. | 23,499 | 1,284,925 | ||||||
Eagle Bancorp, Inc.* | 18,004 | 1,077,539 | ||||||
Federated Investors, Inc. - Class B | 12,943 | 432,296 | ||||||
First Horizon National Corp. | 78,069 | 1,470,039 | ||||||
FNB Corp. | 140,783 | 1,893,531 | ||||||
Hanover Insurance Group, Inc. (The) | 14,186 | 1,672,388 | ||||||
Hercules Capital, Inc. | 94,425 | 1,142,543 | ||||||
IBERIABANK Corp. | 22,137 | 1,726,686 | ||||||
MB Financial, Inc. | 31,366 | 1,269,696 | ||||||
National General Holdings Corp. | 73,486 | 1,786,445 | ||||||
Sterling Bancorp. | 89,870 | 2,026,569 | ||||||
TCF Financial Corp. | 51,222 | 1,168,374 | ||||||
Univest Corp. of Pennsylvania | 45,346 | 1,256,084 | ||||||
Validus Holdings Ltd. (Bermuda) | 20,127 | 1,357,566 | ||||||
25,024,577 | ||||||||
Industrials — 20.7% | ||||||||
Actuant Corp. - Class A | 29,486 | 685,550 | ||||||
Altra Industrial Motion Corp.† | 15,757 | 724,034 | ||||||
Clean Harbors, Inc.* | 17,425 | 850,514 | ||||||
EMCOR Group, Inc. | 12,339 | 961,578 | ||||||
EnPro Industries, Inc. | 16,015 | 1,239,241 | ||||||
Generac Holdings, Inc.* | 21,341 | 979,765 | ||||||
Hexcel Corp. | 19,059 | 1,231,021 | ||||||
Huron Consulting Group, Inc.* | 25,244 | 961,796 | ||||||
ITT, Inc. | 24,915 | 1,220,337 | ||||||
Korn/Ferry International | 35,410 | 1,826,802 | ||||||
Masonite International Corp. (Canada)* | 10,554 | 647,488 | ||||||
Matthews International Corp. - Class A | 17,967 | 909,130 | ||||||
Milacron Holdings Corp.* | 63,120 | 1,271,237 | ||||||
Regal Beloit Corp. | 16,086 | 1,179,908 | ||||||
SPX FLOW, Inc.* | 9,426 | 463,665 | ||||||
Standex International Corp. | 14,930 | 1,423,576 | ||||||
Team, Inc.*† | 80,255 | 1,103,506 | ||||||
Tetra Tech, Inc. | 10,799 | 528,611 | ||||||
TriMas Corp.* | 41,427 | 1,087,459 | ||||||
Triumph Group, Inc. | 20,144 | 507,629 | ||||||
19,802,847 | ||||||||
Consumer Discretionary — 9.6% | ||||||||
Callaway Golf Co. | 38,287 | 626,375 | ||||||
Del Frisco's Restaurant Group, Inc.* | 21,208 | 323,422 | ||||||
Express, Inc.* | 18,602 | 133,190 | ||||||
Horizon Global Corp.* | 68,222 | 562,149 | ||||||
Michaels Cos., Inc. (The)* | 29,250 | 576,518 | ||||||
Murphy USA, Inc.* | 30,310 | 2,206,568 | ||||||
Nexstar Media Group, Inc. - Class A | 22,163 | 1,473,840 | ||||||
Oxford Industries, Inc. | 8,146 | 607,366 | ||||||
Steven Madden Ltd. | 20,293 | 890,863 | ||||||
Tailored Brands, Inc. | 19,236 | 482,054 | ||||||
Tenneco, Inc. | 13,022 | 714,517 | ||||||
Vista Outdoor, Inc.* | 33,853 | 552,481 | ||||||
9,149,343 | ||||||||
Materials — 8.3% | ||||||||
Allegheny Technologies, Inc.* | 45,343 | 1,073,722 | ||||||
HB Fuller Co. | 17,039 | 847,349 | ||||||
Ingevity Corp.* | 10,092 | 743,679 | ||||||
Olin Corp. | 24,949 | 758,200 | ||||||
Owens-Illinois, Inc.* | 33,617 | 728,144 | ||||||
Silgan Holdings, Inc. | 26,328 | 733,235 | ||||||
Sonoco Products Co. | 13,901 | 674,199 | ||||||
Valvoline, Inc. | 57,434 | 1,271,014 | ||||||
WR Grace & Co. | 17,773 | 1,088,241 | ||||||
7,917,783 | ||||||||
Health Care — 7.3% | ||||||||
Charles River Laboratories International, Inc.* | 12,078 | 1,289,206 | ||||||
Encompass Health Corp. | 30,910 | 1,767,125 | ||||||
Envision Healthcare Corp.* | 41,112 | 1,579,934 | ||||||
Patterson Cos., Inc. | 31,435 | 698,800 | ||||||
Prestige Brands Holdings, Inc.* | 48,800 | 1,645,536 | ||||||
6,980,601 | ||||||||
Information Technology — 6.4% | ||||||||
Blackhawk Network Holdings, Inc.* | 13,004 | 581,279 | ||||||
CACI International, Inc. - Class A* | 6,444 | 975,299 | ||||||
Diebold Nixdorf, Inc. | 41,713 | 642,380 | ||||||
MACOM Technology Solutions Holdings, Inc.*† | 111,946 | 1,858,304 | ||||||
Semtech Corp.* | 17,232 | 672,910 | ||||||
Viavi Solutions, Inc.* | 143,442 | 1,394,256 | ||||||
6,124,428 | ||||||||
Consumer Staples — 5.8% | ||||||||
B&G Foods, Inc.† | 25,776 | 610,891 | ||||||
Darling Ingredients, Inc.* | 61,368 | 1,061,666 | ||||||
Hain Celestial Group, Inc. (The)* | 33,588 | 1,077,167 | ||||||
Hostess Brands, Inc.* | 84,091 | 1,243,706 | ||||||
Performance Food Group Co.* | 22,882 | 683,028 | ||||||
TreeHouse Foods, Inc.* | 22,283 | 852,770 | ||||||
5,529,228 | ||||||||
Utilities — 3.8% | ||||||||
Black Hills Corp. | 12,200 | 662,460 | ||||||
Hawaiian Electric Industries, Inc. | 20,679 | 710,944 | ||||||
IDACORP, Inc. | 10,097 | 891,262 | ||||||
Portland General Electric Co. | 34,050 | 1,379,366 | ||||||
3,644,032 | ||||||||
Real Estate — 3.8% | ||||||||
Columbia Property Trust, Inc. REIT | 54,926 | 1,123,786 | ||||||
Corporate Office Properties Trust REIT | 40,936 | 1,057,377 | ||||||
Education Realty Trust, Inc. REIT | 27,827 | 911,334 | ||||||
Lexington Realty Trust REIT | 68,250 | 537,128 | ||||||
3,629,625 |
42 |
Touchstone Small Cap Value Fund (Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 96.0% (Continued) | ||||||||
Energy — 3.5% | ||||||||
Callon Petroleum Co.* | 68,590 | $ | 908,132 | |||||
Carrizo Oil & Gas, Inc.* | 47,120 | 753,920 | ||||||
Select Energy Services, Inc. - Class A* | 29,310 | 369,892 | ||||||
SRC Energy, Inc.* | 97,780 | 922,065 | ||||||
World Fuel Services Corp. | 14,818 | 363,782 | ||||||
3,317,791 | ||||||||
Telecommunication Services — 0.6% | ||||||||
Cogent Communications Holdings, Inc. | 14,485 | 628,649 | ||||||
Total Common Stocks | $ | 91,748,904 | ||||||
Short-Term Investment Funds — 10.7% | ||||||||
Dreyfus Government Cash | ||||||||
Management, Institutional Shares, | ||||||||
1.54%∞Ω | 3,925,701 | 3,925,701 | ||||||
Invesco Government & Agency | ||||||||
Portfolio, Institutional Class, | ||||||||
1.48%**∞Ω | 6,342,805 | 6,342,805 | ||||||
Total Short-Term Investment Funds | $ | 10,268,506 | ||||||
Total Investment Securities —106.7% | ||||||||
(Cost $102,492,179) | $ | 102,017,410 | ||||||
Liabilities in Excess of Other Assets — (6.7%) | (6,417,713 | ) | ||||||
Net Assets — 100.0% | $ | 95,599,697 |
* | 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, 2018 was $6,350,204. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2018. |
Portfolio Abbreviation:
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 | $ | 91,748,904 | $ | — | $ | — | $ | 91,748,904 | ||||||||
Short-Term Investment Funds | 10,268,506 | — | — | 10,268,506 | ||||||||||||
Total | $ | 102,017,410 | $ | — | $ | — | $ | 102,017,410 |
See accompanying Notes to Financial Statements.
43 |
Touchstone Total Return Bond Fund – March 31, 2018 (Unaudited)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 28.8% | ||||||||
Industrials — 9.3% | ||||||||
$ | 2,983,281 | American Airlines 2016-3 Class AA | ||||||
Pass Through Trust, | ||||||||
3.000%, 10/15/28 | $ | 2,816,039 | ||||||
7,537 | Burlington Northern and Santa Fe | |||||||
Railway Co. 1998-C Pass Through | ||||||||
Trust, 6.230%, 7/2/18 | 7,596 | |||||||
35,573 | Burlington Northern and Santa Fe | |||||||
Railway Co. 2004-1 Pass Through | ||||||||
Trust, 4.575%, 1/15/21 | 36,290 | |||||||
218,639 | Burlington Northern and Santa Fe | |||||||
Railway Co. 2005-3 Pass Through | ||||||||
Trust, 4.830%, 1/15/23 | 225,676 | |||||||
1,292,291 | Burlington Northern and Santa Fe | |||||||
Railway Co. 2005-4 Pass Through | ||||||||
Trust, 4.967%, 4/1/23 | 1,361,546 | |||||||
896,726 | Continental Airlines 2000-2 Class A-1 | |||||||
Pass Through Trust, 7.707%, 4/2/21 | 962,187 | |||||||
1,059,006 | Continental Airlines 2007-1 Class A | |||||||
Pass Through Trust, 5.983%, 4/19/22 | 1,133,359 | |||||||
667,453 | Continental Airlines 2012-2 Class A | |||||||
Pass Through Trust, | ||||||||
4.000%, 10/29/24 | 679,133 | |||||||
1,558,226 | CSX Transportation, Inc., | |||||||
6.251%, 1/15/23 | 1,709,660 | |||||||
653,219 | Delta Air Lines 2007-1 Class B Pass | |||||||
Through Trust, 8.021%, 8/10/22 | 727,359 | |||||||
1,094,864 | Delta Air Lines 2010-2 Class A Pass | |||||||
Through Trust, 4.950%, 5/23/19 | 1,108,769 | |||||||
389,181 | Federal Express Corp. 1998 Pass | |||||||
Through Trust, 6.845%, 1/15/19 | 403,775 | |||||||
765,154 | Federal Express Corp. 1999 Pass | |||||||
Through Trust, 7.650%, 1/15/23 | 843,582 | |||||||
2,583,000 | GATX Corp., 3.250%, 3/30/25 | 2,454,707 | ||||||
1,180,000 | Kansas City Southern, 3.000%, 5/15/23 | 1,144,021 | ||||||
1,475,000 | Kansas City Southern, 3.125%, 6/1/26 | 1,400,280 | ||||||
1,941,000 | Norfolk Southern Corp., | |||||||
2.903%, 2/15/23 | 1,905,880 | |||||||
1,408,000 | Republic Services, Inc., | |||||||
5.250%, 11/15/21 | 1,502,032 | |||||||
1,330,000 | SBA Tower Trust, 144a, | |||||||
3.168%, 4/11/22 | 1,311,143 | |||||||
1,395,176 | Southwest Airlines Co. 2007-1 Pass | |||||||
Through Trust, 6.150%, 8/1/22 | 1,498,835 | |||||||
23,121 | Union Pacific Railroad Co. 2001 Pass | |||||||
Through Trust, 6.630%, 1/27/22 | 25,799 | |||||||
1,149,454 | Union Pacific Railroad Co. 2003 Pass | |||||||
Through Trust, 4.698%, 1/2/24 | 1,207,081 | |||||||
514,707 | Union Pacific Railroad Co. 2006 Pass | |||||||
Through Trust, 5.866%, 7/2/30 | 567,485 | |||||||
1,644,000 | United Rentals North America, Inc., | |||||||
5.750%, 11/15/24 | 1,711,486 | |||||||
1,616,000 | Waste Management, Inc., | |||||||
2.400%, 5/15/23 | 1,541,520 | |||||||
28,285,240 | ||||||||
Financials — 8.1% | ||||||||
2,444,000 | Aflac, Inc., 3.250%, 3/17/25 | 2,400,291 | ||||||
2,443,000 | American Express Co., | |||||||
2.650%, 12/2/22 | 2,363,455 | |||||||
2,713,000 | Delphi Financial Group, Inc., | |||||||
7.875%, 1/31/20 | 2,933,168 | |||||||
1,910,136 | Fishers Lane Associates LLC, 144a, | |||||||
3.666%, 8/5/30 | 1,919,979 | |||||||
2,347,000 | Ford Motor Credit Co. LLC, | |||||||
4.375%, 8/6/23 | 2,381,001 | |||||||
2,729,000 | GE Capital International Funding Co. | |||||||
(Ireland), 3.373%, 11/15/25 | 2,637,836 | |||||||
2,106,000 | National Rural Utilities Cooperative | |||||||
Finance Corp., 3.400%, 11/15/23 | 2,129,861 | |||||||
708,000 | Nationwide Mutual Insurance Co., | |||||||
144a, 9.375%, 8/15/39 | 1,145,101 | |||||||
1,512,000 | Provident Cos., Inc., 7.000%, 7/15/18 | 1,531,797 | ||||||
1,398,000 | Torchmark Corp., 3.800%, 9/15/22 | 1,420,464 | ||||||
2,000,000 | USB Capital IX, 3.500%(A) | 1,806,100 | ||||||
2,000,000 | Wachovia Capital Trust III, 5.570%(A) | 1,992,600 | ||||||
24,661,653 | ||||||||
Utilities — 5.5% | ||||||||
1,314,409 | Bruce Mansfield Unit 1 2007 Pass | |||||||
Through Trust, 6/1/34(B) | 410,753 | |||||||
610,000 | California Water Service Co., | |||||||
5.500%, 12/1/40 | 735,622 | |||||||
1,598,000 | Commonwealth Edison Co., | |||||||
5.900%, 3/15/36 | 1,966,806 | |||||||
1,780,000 | Dominion Energy, Inc., (3M LIBOR | |||||||
+2.300%), 4.602%, 9/30/66(C) | 1,713,250 | |||||||
275,000 | Duke Energy Progress LLC, | |||||||
6.300%, 4/1/38 | 367,225 | |||||||
1,904,000 | Entergy Louisiana LLC, | |||||||
4.440%, 1/15/26 | 2,005,908 | |||||||
1,642,000 | Georgia Power Co., 4.750%, 9/1/40 | 1,773,404 | ||||||
480,231 | Kiowa Power Partners LLC, 144a, | |||||||
5.737%, 3/30/21 | 486,943 | |||||||
2,000,000 | NextEra Energy Capital Holdings, Inc., | |||||||
(3M LIBOR +2.068%), | ||||||||
4.376%, 10/1/66(C) | 1,955,000 | |||||||
2,926,000 | PacifiCorp., 8.050%, 9/1/22 | 3,465,766 | ||||||
1,983,000 | South Carolina Electric & Gas Co., | |||||||
4.600%, 6/15/43 | 2,019,842 | |||||||
16,900,519 | ||||||||
Energy — 2.4% | ||||||||
1,000,000 | Apache Corp., 3.250%, 4/15/22 | 988,579 | ||||||
1,253,000 | Chesapeake Energy Corp., | |||||||
6.625%, 8/15/20† | 1,290,590 | |||||||
1,530,000 | Newfield Exploration Co., | |||||||
5.750%, 1/30/22 | 1,598,850 | |||||||
400,000 | Spectra Energy Partners LP, | |||||||
3.500%, 3/15/25 | 385,281 | |||||||
1,914,000 | Tennessee Valley Authority, | |||||||
4.650%, 6/15/35 | 2,282,883 |
44 |
Touchstone Total Return Bond Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 28.8% (Continued) | ||||||||
Energy — (Continued) | ||||||||
$ | 500,000 | Texas Eastern Transmission LP, | ||||||
7.000%, 7/15/32 | $ | 634,508 | ||||||
7,180,691 | ||||||||
Consumer Staples — 1.5% | ||||||||
2,757,320 | CVS Pass-Through Trust, | |||||||
6.036%, 12/10/28 | 2,977,457 | |||||||
1,500,000 | Kroger Co. (The), 3.850%, 8/1/23 | 1,523,646 | ||||||
4,501,103 | ||||||||
Consumer Discretionary — 1.0% | ||||||||
990,000 | PulteGroup, Inc., 7.875%, 6/15/32 | 1,183,050 | ||||||
1,300,000 | Royal Caribbean Cruises Ltd. (Liberia), | |||||||
5.250%, 11/15/22 | 1,401,605 | |||||||
466,000 | Service Corp. International, | |||||||
5.375%, 5/15/24 | 484,197 | |||||||
3,068,852 | ||||||||
Health Care — 0.5% | ||||||||
1,650,000 | HCA, Inc., 4.250%, 10/15/19 | 1,662,375 | ||||||
Telecommunication Services — 0.5% | ||||||||
1,422,000 | Verizon Communications, Inc., | |||||||
5.012%, 4/15/49 | 1,463,853 | |||||||
Total Corporate Bonds | $ | 87,724,286 | ||||||
U.S. Government Agency Obligations — 28.7% | ||||||||
17,749 | Astro Offshore Corp., (Bahamas), | |||||||
6.000%, 12/20/19 | 17,971 | |||||||
1,332,000 | Canal Barge Co., Inc., 4.500%, 11/12/34 | 1,385,467 | ||||||
1,646,671 | Helios Leasing I LLC, 1.734%, 7/24/24 | 1,592,746 | ||||||
1,344,000 | Matson Navigation Co., Inc., | |||||||
5.337%, 9/4/28 | 1,467,351 | |||||||
1,314,000 | Petroleos Mexicanos (Mexico), | |||||||
2.290%, 2/15/24 | 1,295,228 | |||||||
2,392,000 | Private Export Funding Corp., | |||||||
2.450%, 7/15/24 | 2,334,482 | |||||||
1,914,947 | Reliance Industries Ltd. (India), | |||||||
1.870%, 1/15/26 | 1,849,594 | |||||||
143,449 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2001-20A, Class 1, 6.290%, 1/1/21 | 148,416 | |||||||
33,055 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2001-20K, Class 1, 5.340%, 11/1/21 | 33,868 | |||||||
91,700 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2002-20H, Class 1, 5.310%, 8/1/22 | 94,713 | |||||||
81,149 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2003-20B, Class 1, 4.840%, 2/1/23 | 83,908 | |||||||
29,072 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2003-20D, Class 1, 4.760%, 4/1/23 | 30,010 | |||||||
24,168 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2004-20D, Class 1, 4.770%, 4/1/24 | 24,890 | |||||||
217,756 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2004-20K, Class 1, 4.880%, 11/1/24 | 225,171 | |||||||
116,186 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2005-20B, Class 1, 4.625%, 2/1/25 | 119,375 | |||||||
88,819 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2005-20H, Class 1, 5.110%, 8/1/25 | 92,460 | |||||||
634,206 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2006-20B, Class 1, 5.350%, 2/1/26 | 664,361 | |||||||
313,075 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2006-20H, Class 1, 5.700%, 8/1/26 | 328,812 | |||||||
438,410 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2006-20K, Class 1, 5.360%, 11/1/26 | 458,704 | |||||||
553,151 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2006-20L, Class 1, 5.120%, 12/1/26 | 576,450 | |||||||
489,223 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2007-20A, Class 1, 5.320%, 1/1/27 | 511,455 | |||||||
702,440 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2007-20E, Class 1, 5.310%, 5/1/27 | 732,638 | |||||||
207,404 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2007-20F, Class 1, 5.710%, 6/1/27 | 217,817 | |||||||
594,900 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2007-20L, Class 1, 5.290%, 12/1/27 | 620,599 | |||||||
362,961 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2008-20A, Class 1, 5.170%, 1/1/28 | 382,437 | |||||||
1,034,200 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2008-20K, Class 1, 6.770%, 11/1/28 | 1,128,039 | |||||||
993,056 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2009-20B, Class 1, 4.760%, 2/1/29 | 1,045,669 | |||||||
1,488,976 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2009-20C, Class 1, 4.660%, 3/1/29 | 1,559,945 | |||||||
465,456 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2009-20D, Class 1, 4.310%, 4/1/29 | 484,783 |
45 |
Touchstone Total Return Bond Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
U.S. Government Agency Obligations — 28.7% | ||||||||
(Continued) | ||||||||
$ | 1,004,821 | Small Business Administration | ||||||
Participation Certificates, Ser | ||||||||
2009-20E, Class 1, 4.430%, 5/1/29 | $ | 1,049,824 | ||||||
548,046 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2009-20F, Class 1, 4.950%, 6/1/29 | 581,974 | |||||||
850,588 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2009-20J, Class 1, 3.920%, 10/1/29 | 877,767 | |||||||
1,574,922 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2010-20F, Class 1, 3.880%, 6/1/30 | 1,625,389 | |||||||
1,379,318 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2010-20I, Class 1, 3.210%, 9/1/30 | 1,389,398 | |||||||
736,534 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2012-10C, Class 1, 1.240%, 5/1/22 | 718,921 | |||||||
3,687,566 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2013-20C, Class 1, 2.220%, 3/1/33 | 3,589,410 | |||||||
2,959,871 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2013-20E, Class 1, 2.070%, 5/1/33 | 2,868,659 | |||||||
2,636,177 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2013-20G, Class 1, 3.150%, 7/1/33 | 2,663,559 | |||||||
2,179,174 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2014-20H, Class 1, 2.880%, 8/1/34 | 2,170,612 | |||||||
1,768,405 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2014-20K, Class 1, 2.800%, 11/1/34 | 1,752,580 | |||||||
4,044,364 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2015-20E, Class 1, 2.770%, 5/1/35 | 4,001,567 | |||||||
2,829,876 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2015-20I, Class 1, 2.820%, 9/1/35 | 2,803,843 | |||||||
4,044,159 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2016-20A, Class 1, 2.780%, 1/1/36 | 3,995,378 | |||||||
2,164,549 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2017-10A, Class 1, 2.845%, 3/10/27 | 2,178,893 | |||||||
2,710,280 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2017-10B, Class 1, 2.518%, 9/10/27 | 2,666,588 | |||||||
4,509,929 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2017-20D, Class 1, 2.840%, 4/1/37 | 4,408,892 | |||||||
3,419,439 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2017-20E, Class 1, 2.880%, 5/1/37 | 3,355,383 | |||||||
3,205,312 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2017-20F, Class 1, 2.810%, 6/1/37 | 3,129,375 | |||||||
3,319,000 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2017-20K, Class 1, 2.790%, 11/1/37 | 3,238,519 | |||||||
3,000,000 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2017-20L, Class 1, 2.780%, 12/1/37 | 2,925,412 | |||||||
3,165,000 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2018-10A, Class 1, 3.187%, 3/10/28 | 3,158,437 | |||||||
6,055,000 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2018-20B, Class 1, 3.220%, 2/1/38 | 6,058,638 | |||||||
2,898,000 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2018-20C, Class 1, 3.200%, 3/1/38 | 2,888,903 | |||||||
54,310 | Sterling Equipment, 6.125%, 9/28/19 | 55,753 | ||||||
1,206,563 | Tagua Leasing LLC, 1.581%, 11/16/24 | 1,158,222 | ||||||
910,000 | Totem Ocean Trailer Express, Inc., | |||||||
6.365%, 4/15/28 | 1,007,686 | |||||||
1,322,000 | Vessel Management Services, Inc., | |||||||
5.125%, 4/16/35 | 1,479,758 | |||||||
Total U.S. Government Agency | ||||||||
Obligations | $ | 87,306,699 | ||||||
Agency Collateralized Mortgage | ||||||||
Obligations — 13.8% | ||||||||
2,931,958 | FHLMC Multifamily Structured Pass | |||||||
Through Certificates, Ser KW03 | ||||||||
Class A1, 2.617%, 12/25/26 | 2,865,340 | |||||||
1,020,037 | FREMF Mortgage Trust, Ser 2012-K19, | |||||||
Class B, 144a, 4.034%, 5/25/45(C)(D) | 1,030,397 | |||||||
925,000 | FREMF Mortgage Trust, Ser 2012-K706, | |||||||
Class B, 144a, 4.030%, 11/25/44(C)(D) | 927,769 | |||||||
1,200,000 | FREMF Mortgage Trust, Ser 2012-K710, | |||||||
Class B, 144a, 3.813%, 6/25/47(C)(D) | 1,211,989 | |||||||
750,000 | FREMF Mortgage Trust, Ser 2013-K30, | |||||||
Class B, 144a, 3.558%, 6/25/45(C)(D) | 748,978 | |||||||
1,528,000 | FREMF Mortgage Trust, Ser 2014-K716, | |||||||
Class B, 144a, 3.951%, 8/25/47(C)(D) | 1,561,414 | |||||||
2,229,668 | FRESB Mortgage Trust, Ser 2015-SB9, | |||||||
Class A5, (1M LIBOR +0.700%), | ||||||||
2.535%, 11/25/35(C) | 2,206,015 | |||||||
1,642,683 | FRESB Mortgage Trust, Ser 2016-SB17, | |||||||
Class A5H, (1M LIBOR +2.160%), | ||||||||
2.160%, 5/25/36(C) | 1,609,161 | |||||||
2,405,996 | FRESB Mortgage Trust, Ser 2017-SB27, | |||||||
Class A10F, 3.090%, 1/25/27(C)(D) | 2,383,059 | |||||||
2,421,330 | FRESB Mortgage Trust, Ser 2018-SB46, | |||||||
Class A10F, 3.300%, 12/25/27(C)(D) | 2,427,579 | |||||||
2,600,000 | GNMA, Ser 2011-142, Class B, | |||||||
3.485%, 2/16/44(C)(D) | 2,593,001 |
46 |
Touchstone Total Return Bond Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Agency Collateralized Mortgage | ||||||||
Obligations — 13.8% (Continued) | ||||||||
$ | 165,621 | GNMA, Ser 2011-147, Class A, | ||||||
2.174%, 7/16/38 | $ | 165,095 | ||||||
2,818,000 | GNMA, Ser 2012-1, Class C, | |||||||
3.310%, 11/16/49 | 2,801,700 | |||||||
2,975,000 | GNMA, Ser 2012-46, Class C, | |||||||
3.176%, 5/16/50(C)(D) | 2,923,249 | |||||||
1,902,085 | GNMA, Ser 2012-53, Class AC, | |||||||
2.381%, 12/16/43 | 1,847,659 | |||||||
1,120,649 | GNMA, Ser 2013-40, Class AC, | |||||||
1.584%, 1/16/46 | 1,077,942 | |||||||
2,540,000 | GNMA, Ser 2015-32, Class HG, | |||||||
3.000%, 9/16/49(C)(D) | 2,231,784 | |||||||
3,783,599 | GNMA, Ser 2015-37, Class AD, | |||||||
2.600%, 11/16/55 | 3,676,147 | |||||||
3,512,000 | GNMA, Ser 2015-73, Class B, | |||||||
2.700%, 10/16/55(C)(D) | 3,237,516 | |||||||
2,629,338 | GNMA, Ser 2017-46, Class AB, | |||||||
2.600%, 1/16/52 | 2,526,374 | |||||||
2,099,244 | GNMA, Ser 2017-H11, Class FV, (1M | |||||||
LIBOR +0.500%), 2.075%, 5/20/67(C) | 2,106,711 | |||||||
Total Agency Collateralized | ||||||||
Mortgage Obligations | $ | 42,158,879 | ||||||
U.S. Government Mortgage-Backed | ||||||||
Obligations — 13.7% | ||||||||
1,750,661 | FHLMC, Pool #W30008, | |||||||
7.645%, 5/1/25 | 1,969,723 | |||||||
203,829 | FNMA, Pool #465711, 4.680%, 8/1/28 | 216,848 | ||||||
1,505,714 | FNMA, Pool #469616, 3.500%, 11/1/21 | 1,537,291 | ||||||
107,046 | FNMA, Pool #874210, 5.260%, 1/1/25 | 111,617 | ||||||
464,130 | FNMA, Pool #888829, 5.832%, 6/1/37 | 500,890 | ||||||
272,005 | FNMA, Pool #958736, 4.940%, 5/1/19 | 277,373 | ||||||
286,514 | FNMA, Pool #AD0101, 4.821%, 7/1/19 | 293,001 | ||||||
276,391 | FNMA, Pool #AD0166, 4.783%, 8/1/19 | 283,607 | ||||||
790,813 | FNMA, Pool #AD0342, 4.650%, 10/1/19 | 810,355 | ||||||
791,315 | FNMA, Pool #AD0786, 4.501%, 1/1/20 | 810,762 | ||||||
401,786 | FNMA, Pool #AD0910, 4.629%, 4/1/20 | 412,211 | ||||||
343,429 | FNMA, Pool #AE0209, 4.380%, 6/1/20 | 352,350 | ||||||
1,004,353 | FNMA, Pool #AE0446, 4.041%, 9/1/20 | 1,026,935 | ||||||
1,748,991 | FNMA, Pool #AH8854, 4.500%, 4/1/41 | 1,848,515 | ||||||
1,740,600 | FNMA, Pool #AM0157, 2.680%, 2/1/22 | 1,729,116 | ||||||
1,815,016 | FNMA, Pool #AM0566, 1.940%, 9/1/19 | 1,811,959 | ||||||
3,359,000 | FNMA, Pool #AN3613, 2.680%, 12/1/26 | 3,213,469 | ||||||
2,199,381 | FNMA, Pool #AP7488, 3.500%, 9/1/42 | 2,219,209 | ||||||
1,058,595 | FNMA, Pool #AT0924, 2.000%, 3/1/28 | 1,003,396 | ||||||
3,837,873 | FNMA, Pool #AU1628, 3.000%, 7/1/43 | 3,778,672 | ||||||
2,952,704 | FNMA, Pool #AX7699, 3.500%, 2/1/45 | 2,967,699 | ||||||
2,128,069 | FNMA, Pool #BC0153, 4.000%, 1/1/46 | 2,185,348 | ||||||
4,538,041 | FNMA, Pool #BD7165, 4.000%, 4/1/47 | 4,661,609 | ||||||
1,965,153 | FNMA, Pool #BH5752, 3.500%, 11/1/47 | 1,971,327 | ||||||
3,361,441 | FNMA, Pool #MA3149, | |||||||
4.000%, 10/1/47 | 3,454,175 | |||||||
728,524 | GNMA, Pool #5276, 3.000%, 1/20/27 | 733,086 | ||||||
599,453 | GNMA, Pool #710077, | |||||||
4.700%, 5/20/61(C)(D) | 603,851 | |||||||
318,500 | GNMA, Pool #751408, | |||||||
4.853%, 6/20/61(C)(D) | 330,112 | |||||||
295,518 | GNMA, Pool #751409, | |||||||
4.592%, 7/20/61(C)(D) | 298,733 | |||||||
304,090 | GNMA, Pool #756686, | |||||||
4.708%, 9/20/61(C)(D) | 308,023 | |||||||
152,467 | GNMA, Pool #757327, | |||||||
4.283%, 7/20/61(C)(D) | 153,768 | |||||||
Total U.S. Government | ||||||||
Mortgage-Backed Obligations | $ | 41,875,030 | ||||||
Municipal Bonds — 5.9% | ||||||||
California — 1.6% | ||||||||
862,853 | California HFA Residential Mortgage | |||||||
Revenue, Ser A, 2.900%, 2/1/42 | 839,366 | |||||||
1,225,000 | City of San Francisco Public Utilities | |||||||
Commission Water Revenue, Build | ||||||||
America Bonds, 6.950%, 11/1/50 | 1,783,245 | |||||||
1,710,000 | East Bay Municipal Utility District | |||||||
Water System Revenue, Build | ||||||||
America Bonds Sub, 5.874%, 6/1/40 | 2,223,017 | |||||||
4,845,628 | ||||||||
Florida — 0.4% | ||||||||
1,219,855 | Florida State HFC Revenue, | |||||||
Homeownership Mortgage Special | ||||||||
Project, 2.800%, 7/1/41 | 1,183,016 | |||||||
Louisiana — 0.6% | ||||||||
2,020,839 | Louisiana State Housing Corp., | |||||||
Revenue, 2.875%, 11/1/38 | 1,966,984 | |||||||
Missouri — 0.2% | ||||||||
755,000 | Missouri State Housing Development | |||||||
Commission, Special | ||||||||
Homeownership Loan Program, Ser | ||||||||
C, 2.650%, 11/1/40 | 730,138 | |||||||
New York — 0.5% | ||||||||
1,400,000 | Port Authority of New York and New | |||||||
Jersey, Cons One Hundred Sixty | ||||||||
Eight, 4.926%, 10/1/51 | 1,635,312 | |||||||
Ohio — 0.6% | ||||||||
1,765,000 | Ohio HFA, Revenue, Ser 1, | |||||||
2.650%, 11/1/41 | 1,711,803 | |||||||
Texas — 1.0% | ||||||||
1,770,000 | Dallas Area Rapid Transit, Revenue, | |||||||
Build America Bonds, | ||||||||
5.999%, 12/1/44 | 2,362,437 | |||||||
685,000 | Texas Department of Housing & | |||||||
Community Affairs, Revenue, Ser A, | ||||||||
2.800%, 3/1/36 | 670,046 | |||||||
3,032,483 |
47 |
Touchstone Total Return Bond Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Municipal Bonds — 5.9% (Continued) | ||||||||
Virginia — 0.4% | ||||||||
$ | 1,097,822 | Virginia Housing Development | ||||||
Authority, Pass Thru Ser B, | ||||||||
2.750%, 4/25/42 | $ | 1,075,910 | ||||||
Washington — 0.6% | ||||||||
1,515,000 | State of Washington, Build America | |||||||
Bonds Ser D, UTGO, 5.481%, 8/1/39 | 1,859,375 | |||||||
Total Municipal Bonds | $ | 18,040,649 | ||||||
U.S. Treasury Obligations — 3.1% | ||||||||
3,695,000 | U.S. Treasury Strip, Principal, | |||||||
0.000%, 5/15/40(E) | 1,943,749 | |||||||
10,429,000 | U.S. Treasury Strip, Principal, | |||||||
0.000%, 5/15/43(E) | 4,945,057 | |||||||
5,379,000 | U.S. Treasury Strip, Principal, | |||||||
0.000%, 5/15/45(E) | 2,392,608 | |||||||
Total U.S. Treasury Obligations | $ | 9,281,414 | ||||||
Asset-Backed Securities — 1.9% | ||||||||
1,391,222 | 321 Henderson Receivables I LLC, Ser | |||||||
2012-1A, Class A, 144a, | ||||||||
4.210%, 2/16/65 | 1,455,846 | |||||||
1,244,023 | 321 Henderson Receivables I LLC, Ser | |||||||
2012-2A, Class A, 144a, | ||||||||
3.840%, 10/15/59 | 1,236,117 | |||||||
1,535,035 | 321 Henderson Receivables I LLC, Ser | |||||||
2015-2A, Class A, 144a, | ||||||||
3.870%, 3/15/58 | 1,551,400 | |||||||
215,024 | FPL Recovery Funding LLC, Ser | |||||||
2007-A, Class A4, 5.256%, 8/1/21 | 218,896 | |||||||
1,325,000 | JCP&L Transition Funding LLC, Ser | |||||||
2006-A, Class A4, 5.610%, 6/5/23 | 1,391,020 | |||||||
Total Asset-Backed Securities | $ | 5,853,279 | ||||||
Sovereign Government Obligations — 1.7% | ||||||||
3,836,000 | Hashemite Kingdom of Jordan | |||||||
Government AID Bond, | ||||||||
3.000%, 6/30/25 | 3,860,791 | |||||||
1,077,000 | Israel Government AID Bond, | |||||||
5.500%, 9/18/33 | 1,393,914 | |||||||
Total Sovereign Government | ||||||||
Obligations | $ | 5,254,705 | ||||||
Commercial Mortgage-Backed Security — 0.1% | ||||||||
505,000 | Citigroup/Deutsche Bank Commercial | |||||||
Mortgage Trust, Ser 2006-CD3, | ||||||||
Class AJ, 5.688%, 10/15/48 | $ | 244,611 | ||||||
Short-Term Investment Funds — 2.2% | ||||||||
5,464,274 | Dreyfus Government Cash | |||||||
Management, Institutional Shares, | ||||||||
1.54%∞Ω | $ | 5,464,274 | ||||||
1,272,000 | Invesco Government & Agency | |||||||
Portfolio, Institutional Class, | ||||||||
1.48%**∞Ω | 1,272,000 | |||||||
Total Short-Term Investment Funds | $ | 6,736,274 | ||||||
Total Investment Securities — 99.9% | ||||||||
(Cost $309,143,658) | $ | 304,475,826 | ||||||
Other Assets in Excess of | ||||||||
Liabilities — 0.1% | 287,027 | |||||||
Net Assets — 100.0% | $ | 304,762,853 |
(A) | Perpetual Bond - A bond with no definite maturity date. |
(B) | The issuer is in default of certain debt covenants. Income is not being accrued. The total value of such securities as of March 31, 2018 was $410,753 or 0.1% of net assets. |
(C) | Variable rate security - Rate reflected is the rate in effect as of March 31, 2018. |
(D) | Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description. |
(E) | 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. |
** | 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, 2018 was $1,236,000. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2018. |
Portfolio Abbreviations:
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
FREMF - Finnish Real Estate Management Federation
FRESB - Freddie Mac Multifamily Securitization Small Balance Loan
48 |
Touchstone Total Return Bond Fund (Unaudited) (Continued)
GNMA - Government National Mortgage Association
HFA - Housing Finance Authority/Agency
HFC - Housing Finance Corporation
LIBOR - London Interbank Offered Rate
LLC - Limited Liability Company
LP - Limited Partnership
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, 2018, these securities were valued at $14,587,076 or 4.8% 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 | ||||||||||||
Corporate Bonds | $ | — | $ | 87,724,286 | $ | — | $ | 87,724,286 | ||||||||
U.S. Government Agency Obligations | — | 87,306,699 | — | 87,306,699 | ||||||||||||
Agency Collateralized Mortgage Obligations | — | 42,158,879 | — | 42,158,879 | ||||||||||||
U.S. Government Mortgage-Backed Obligations | — | 41,875,030 | — | 41,875,030 | ||||||||||||
Municipal Bonds | — | 18,040,649 | — | 18,040,649 | ||||||||||||
U.S. Treasury Obligations | — | 9,281,414 | — | 9,281,414 | ||||||||||||
Asset-Backed Securities | — | 5,853,279 | — | 5,853,279 | ||||||||||||
Sovereign Government Obligations | — | 5,254,705 | — | 5,254,705 | ||||||||||||
Commercial Mortgage-Backed Security | — | 244,611 | — | 244,611 | ||||||||||||
Short-Term Investment Funds | 6,736,274 | — | — | 6,736,274 | ||||||||||||
Total | $ | 6,736,274 | $ | 297,739,552 | $ | — | $ | 304,475,826 |
See accompanying Notes to Financial Statements.
49 |
Touchstone Ultra Short Duration Fixed Income Fund – March 31, 2018 (Unaudited)
Principal | Market | |||||||
Amount | Value | |||||||
Asset-Backed Securities — 41.8% | ||||||||
$ | 9,420,758 | ACE Securities Corp. Home Equity | ||||||
Loan Trust, Ser 2005-HE6, Class A2D, | ||||||||
(1M LIBOR +0.360%), | ||||||||
2.232%, 10/25/35(A) | $ | 9,444,310 | ||||||
2,500,000 | Ally Auto Receivables Trust, Ser | |||||||
2015-1, Class C, 2.260%, 10/15/20 | 2,490,501 | |||||||
1,160,000 | American Credit Acceptance | |||||||
Receivables Trust, Ser 2014-2, Class | ||||||||
D, 2.570%, 7/8/20 | 1,160,586 | |||||||
2,266,592 | American Credit Acceptance | |||||||
Receivables Trust, Ser 2014-4, Class | ||||||||
C, 144a, 4.250%, 10/12/20 | 2,267,913 | |||||||
5,200,000 | American Credit Acceptance | |||||||
Receivables Trust, Ser 2015-1, Class | ||||||||
D, 144a, 5.450%, 5/12/22 | 5,260,318 | |||||||
1,570,000 | American Credit Acceptance | |||||||
Receivables Trust, Ser 2015-2, Class | ||||||||
D, 144a, 5.380%, 3/14/22 | 1,590,380 | |||||||
1,290,659 | American Credit Acceptance | |||||||
Receivables Trust, Ser 2017-2, Class | ||||||||
A, 144a, 1.840%, 7/13/20 | 1,288,549 | |||||||
7,855,000 | American Credit Acceptance | |||||||
Receivables Trust, Ser 2017-2, Class | ||||||||
B, 144a, 2.460%, 4/12/21 | 7,835,990 | |||||||
3,830,000 | American Credit Acceptance | |||||||
Receivables Trust, Ser 2017-3, Class | ||||||||
B, 144a, 2.250%, 1/11/21 | 3,808,522 | |||||||
8,607,895 | American Credit Acceptance | |||||||
Receivables Trust, Ser 2017-4, Class | ||||||||
A, 144a, 2.000%, 7/10/20 | 8,582,696 | |||||||
2,294,000 | Ascentium Equipment Receivables | |||||||
LLC, Ser 2015-2A, Class D, 144a, | ||||||||
3.440%, 10/12/21 | 2,299,585 | |||||||
3,318,772 | Ascentium Equipment Receivables | |||||||
Trust, Ser 2017-1A, Class A2, 144a, | ||||||||
1.870%, 7/10/19 | 3,309,378 | |||||||
3,820,000 | Ascentium Equipment Receivables | |||||||
Trust, Ser 2017-2A, Class A2, 144a, | ||||||||
2.000%, 5/11/20 | 3,794,527 | |||||||
5,000,000 | Avery Point VII CLO Ltd. (Cayman | |||||||
Islands), Ser 2015-7A, Class A1, | ||||||||
144a, (3M LIBOR +1.500%), | ||||||||
3.222%, 1/15/28(A) | 5,028,540 | |||||||
7,236,000 | Avis Budget Rental Car Funding | |||||||
AESOP LLC, Ser 2013-1A, Class A, | ||||||||
144a, 1.920%, 9/20/19 | 7,222,634 | |||||||
3,685,000 | Avis Budget Rental Car Funding | |||||||
AESOP LLC, Ser 2014-1A, Class A, | ||||||||
144a, 2.460%, 7/20/20 | 3,670,746 | |||||||
8,960,000 | Avis Budget Rental Car Funding | |||||||
AESOP LLC, Ser 2014-2A, Class B, | ||||||||
144a, 3.290%, 2/20/21 | 8,960,366 | |||||||
1,617,510 | BlueVirgo Trust, Ser 2015-1A, 144a, | |||||||
3.000%, 12/15/22 | 1,620,543 | |||||||
2,985,000 | BSPRT Issuer Ltd. (Cayman Islands), Ser | |||||||
2017-FL1, Class A, 144a, (1M LIBOR | ||||||||
+1.350%), 3.127%, 6/15/27(A) | 2,995,062 | |||||||
6,710,000 | Capital Auto Receivables Asset Trust, | |||||||
Ser 2014-1, Class E, 144a, | ||||||||
4.090%, 9/22/22 | 6,716,181 | |||||||
5,710,000 | Capital Auto Receivables Asset Trust, | |||||||
Ser 2014-3, Class E, 3.940%, 4/20/23 | 5,744,407 | |||||||
5,250,000 | Capital Auto Receivables Asset Trust, | |||||||
Ser 2015-2, Class E, 4.500%, 1/22/24 | 5,304,214 | |||||||
6,822,087 | CarFinance Capital Auto Trust, Ser | |||||||
2013-2A, Class D, 144a, | ||||||||
5.930%, 8/15/19 | 6,823,297 | |||||||
7,720,000 | CarFinance Capital Auto Trust, Ser | |||||||
2013-2A, Class E, 144a, | ||||||||
7.860%, 10/15/20 | 7,722,144 | |||||||
240,207 | CarFinance Capital Auto Trust, Ser | |||||||
2015-1A, Class A, 144a, | ||||||||
1.750%, 6/15/21 | 239,633 | |||||||
2,410,069 | Carnow Auto Receivables Trust, Ser | |||||||
2017-1A, Class A, 144a, | ||||||||
2.920%, 9/15/22 | 2,399,498 | |||||||
560,497 | Cazenovia Creek Funding I LLC, Ser | |||||||
2015-1A, Class A, 144a, | ||||||||
2.000%, 12/10/23 | 559,797 | |||||||
4,925,000 | CCG Receivables Trust, Ser 2017-1, | |||||||
Class A2, 144a, 1.840%, 11/14/23 | 4,882,302 | |||||||
4,945,000 | Chrysler Capital Auto Receivables | |||||||
Trust, Ser 2015-BA, Class C, 144a, | ||||||||
3.260%, 4/15/21 | 4,973,085 | |||||||
213,666 | CNH Equipment Trust, Ser 2014-C, | |||||||
Class A3, 1.050%, 11/15/19 | 213,354 | |||||||
4,423 | College & University Facility Loan | |||||||
Trust, Ser 2 Class D, 4.000%, 6/1/18 | 4,423 | |||||||
4,948,781 | Conn Funding II LP, Ser 2017-B, Class | |||||||
A, 144a, 2.730%, 7/15/20 | 4,940,660 | |||||||
191,007 | Dell Equipment Finance Trust, Ser | |||||||
2015-2, Class B, 144a, | ||||||||
2.210%, 9/22/20 | 190,955 | |||||||
4,500,000 | Dell Equipment Finance Trust, Ser | |||||||
2015-2, Class C, 144a, | ||||||||
2.750%, 9/22/20 | 4,500,327 | |||||||
1,000,000 | Dell Equipment Finance Trust, Ser | |||||||
2016-1, Class C, 144a, | ||||||||
2.530%, 7/22/21 | 998,416 | |||||||
2,900,000 | Drive Auto Receivables Trust, Ser | |||||||
2017-2, Class B, 2.250%, 6/15/21 | 2,892,620 | |||||||
3,665,000 | Drive Auto Receivables Trust, Ser | |||||||
2017-3, Class A3, 1.850%, 4/15/20 | 3,654,890 | |||||||
4,400,000 | Drive Auto Receivables Trust, Ser | |||||||
2017-3, Class B, 2.300%, 5/17/21 | 4,380,439 | |||||||
2,234,285 | DT Auto Owner Trust, Ser 2014-2A, | |||||||
Class D, 144a, 3.680%, 4/15/21 | 2,235,692 | |||||||
8,469,271 | DT Auto Owner Trust, Ser 2014-3A, | |||||||
Class D, 144a, 4.470%, 11/15/21 | 8,525,920 | |||||||
1,315,880 | DT Auto Owner Trust, Ser 2017-2A, | |||||||
Class A, 144a, 1.720%, 5/15/20 | 1,313,423 |
50 |
Touchstone Ultra Short Duration Fixed Income Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Asset-Backed Securities — 41.8% (Continued) | ||||||||
$ | 666,529 | Elara HGV Timeshare Issuer LLC, Ser | ||||||
2014-A, Class A, 144a, | ||||||||
2.530%, 2/25/27 | $ | 653,610 | ||||||
1,877,437 | Exeter Automobile Receivables Trust, | |||||||
Ser 2014-2A, Class C, 144a, | ||||||||
3.260%, 12/16/19 | 1,879,494 | |||||||
8,507,406 | Exeter Automobile Receivables Trust, | |||||||
Ser 2014-3A, Class C, 144a, | ||||||||
4.170%, 6/15/20 | 8,582,304 | |||||||
3,000,000 | Exeter Automobile Receivables Trust, | |||||||
Ser 2016-1A, Class B, 144a, | ||||||||
3.850%, 5/17/21 | 3,018,091 | |||||||
1,020,151 | Exeter Automobile Receivables Trust, | |||||||
Ser 2017-3A, Class A, 144a, | ||||||||
2.050%, 12/15/21 | 1,014,533 | |||||||
3,750,000 | First Investors Auto Owner Trust, Ser | |||||||
2013-3A, Class D, 144a, | ||||||||
3.670%, 5/15/20 | 3,751,356 | |||||||
649,938 | First Investors Auto Owner Trust, Ser | |||||||
2016-2A, Class A1, 144a, | ||||||||
1.530%, 11/16/20 | 647,954 | |||||||
167,089 | Flagship Credit Auto Trust, Ser 2016-3, | |||||||
Class A1, 144a, 1.610%, 12/15/19 | 167,033 | |||||||
1,630,000 | Flagship Credit Auto Trust, Ser 2016-3, | |||||||
Class B, 144a, 2.430%, 6/15/21 | 1,622,415 | |||||||
684,373 | FNA Trust, Ser 2015-1, Class A, 144a, | |||||||
3.240%, 12/10/23 | 681,633 | |||||||
863,931 | GLS Auto Receivables Trust, Ser | |||||||
2016-1A, Class A, 144a, | ||||||||
2.730%, 10/15/20 | 863,792 | |||||||
4,826,741 | GLS Auto Receivables Trust, Ser | |||||||
2017-1A, Class A2, 144a, | ||||||||
2.670%, 4/15/21 | 4,814,352 | |||||||
8,899,628 | GLS Auto Receivables Trust, Ser | |||||||
2018-1A, Class A, 144a, | ||||||||
2.820%, 7/15/22 | 8,866,164 | |||||||
1,166,938 | GO Financial Auto Securitization Trust, | |||||||
Ser 2015-2, Class B, 144a, | ||||||||
4.800%, 8/17/20 | 1,169,613 | |||||||
13,146,653 | Grayson CLO Ltd. (Cayman Islands), | |||||||
Ser 2006-1A, Class B, 144a, (3M | ||||||||
LIBOR +0.700%), 2.473%, 11/1/21(A) | 13,094,500 | |||||||
10,230,000 | Hertz Vehicle Financing II LP, Ser | |||||||
2015-2A, Class A, 144a, | ||||||||
2.020%, 9/25/19 | 10,192,590 | |||||||
7,450,000 | Hertz Vehicle Financing II LP, Ser | |||||||
2016-1A, Class A, 144a, | ||||||||
2.320%, 3/25/20 | 7,410,232 | |||||||
5,008,333 | Hertz Vehicle Financing LLC, Ser | |||||||
2013-1A, Class A2, 144a, | ||||||||
1.830%, 8/25/19 | 4,998,038 | |||||||
3,431,000 | Kabbage Asset Securitization LLC, Ser | |||||||
2017-1, Class A, 144a, | ||||||||
4.571%, 3/15/22 | 3,493,106 | |||||||
345,148 | MMAF Equipment Finance LLC, Ser | |||||||
2012-AA, Class A5, 144a, | ||||||||
1.980%, 6/10/32 | 344,628 | |||||||
1,415,701 | Morgan Stanley ABS Capital I, Inc. | |||||||
Trust, Ser 2006-NC1, Class A4, (1M | ||||||||
LIBOR +0.300%), | ||||||||
2.172%, 12/25/35(A) | 1,417,456 | |||||||
4,480,909 | Navitas Equipment Receivables LLC, | |||||||
Ser 2016-1, Class A2, 144a, | ||||||||
2.200%, 6/15/21 | 4,458,991 | |||||||
3,713,005 | New Century Home Equity Loan Trust, | |||||||
Ser 2005-B, Class A2D, (1M LIBOR | ||||||||
+0.400%), 2.272%, 10/25/35(A) | 3,720,711 | |||||||
10,070,000 | OCP CLO Ltd. (Cayman Islands), Ser | |||||||
2016-12A, Class A1, 144a, (3M | ||||||||
LIBOR +1.570%), | ||||||||
3.304%, 10/18/28(A) | 10,111,982 | |||||||
437,616 | OneMain Direct Auto Receivables | |||||||
Trust, Ser 2016-1A, Class A, 144a, | ||||||||
2.040%, 1/15/21 | 437,353 | |||||||
4,900,000 | OneMain Direct Auto Receivables | |||||||
Trust, Ser 2016-1A, Class B, 144a, | ||||||||
2.760%, 5/15/21 | 4,899,771 | |||||||
1,208,982 | Orange Lake Timeshare Trust, Ser | |||||||
2012-AA, Class A, 144a, | ||||||||
3.450%, 3/10/27 | 1,209,256 | |||||||
705,052 | Orange Lake Timeshare Trust, Ser | |||||||
2014-AA, Class A, 144a, | ||||||||
2.290%, 7/9/29 | 691,491 | |||||||
9,000,000 | OZLM XIII Ltd. (Cayman Islands), Ser | |||||||
2015-13A, Class A1A, 144a, (3M | ||||||||
LIBOR +1.410%), 3.177%, 7/30/27(A) | 9,025,542 | |||||||
15,322,000 | Rockwall CDO II Ltd. (Cayman Islands), | |||||||
Ser 2007-1A, Class A3L, 144a, (3M | ||||||||
LIBOR +1.000%), 2.773%, 8/1/24(A) | 15,321,127 | |||||||
4,300,000 | Santander Drive Auto Receivables | |||||||
Trust, Ser 2014-1, Class E, | ||||||||
3.920%, 5/17/21 | 4,327,144 | |||||||
6,500,000 | Santander Drive Auto Receivables | |||||||
Trust, Ser 2014-2, Class E, 144a, | ||||||||
3.760%, 7/15/21 | 6,536,447 | |||||||
6,500,000 | Santander Drive Auto Receivables | |||||||
Trust, Ser 2014-3, Class E, 144a, | ||||||||
3.490%, 9/15/21 | 6,542,314 | |||||||
700,000 | Santander Drive Auto Receivables | |||||||
Trust, Ser 2015-2, Class D, | ||||||||
3.020%, 4/15/21 | 702,126 | |||||||
870,251 | Santander Drive Auto Receivables | |||||||
Trust, Ser 2015-3, Class C, | ||||||||
2.740%, 1/15/21 | 870,471 | |||||||
13,505,000 | Santander Drive Auto Receivables | |||||||
Trust, Ser 2015-4, Class C, | ||||||||
2.970%, 3/15/21 | 13,528,568 | |||||||
6,010,000 | Securitized Equipment Receivables | |||||||
Trust, Ser 2017-1A, Class A, | ||||||||
3.250%, 4/11/24 | 5,997,477 | |||||||
12,840,000 | Securitized Equipment Receivables | |||||||
Trust, Ser 2017-1A, Class A, 144a, | ||||||||
2.760%, 12/13/22 | 12,724,437 |
51 |
Touchstone Ultra Short Duration Fixed Income Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Asset-Backed Securities — 41.8% (Continued) | ||||||||
$ | 1,373,428 | Sierra Timeshare Receivables Funding | ||||||
LLC, Ser 2013-3A, Class A, 144a, | ||||||||
2.200%, 10/20/30 | $ | 1,368,932 | ||||||
526,250 | Sierra Timeshare Receivables Funding | |||||||
LLC, Ser 2014-1A, Class A, 144a, | ||||||||
2.070%, 3/20/30 | 524,298 | |||||||
2,155,579 | Sierra Timeshare Receivables Funding | |||||||
LLC, Ser 2014-2A, Class A, 144a, | ||||||||
2.050%, 6/20/31(A)(B) | 2,142,850 | |||||||
1,112,238 | Sierra Timeshare Receivables Funding | |||||||
LLC, Ser 2014-3A, Class A, 144a, | ||||||||
2.300%, 10/20/31 | 1,104,399 | |||||||
1,030,421 | Sierra Timeshare Receivables Funding | |||||||
LLC, Ser 2015-1A, Class A, 144a, | ||||||||
2.400%, 3/22/32 | 1,022,313 | |||||||
4,155,981 | Symphony CLO II Ltd. (Cayman | |||||||
Islands), Ser 2006-2A, Class A3, | ||||||||
144a, (3M LIBOR +0.420%), | ||||||||
2.404%, 10/25/20(A) | 4,155,383 | |||||||
13,450,000 | TCI-Flatiron CLO Ltd. (Cayman Islands), | |||||||
Ser 2016-1A, Class A, 144a, (3M | ||||||||
LIBOR +1.550%), 3.281%, 7/17/28(A) | 13,559,214 | |||||||
5,221,554 | TLF National Tax Lien Trust, Ser | |||||||
2017-1A, Class A, 144a, | ||||||||
3.090%, 12/15/29 | 5,215,423 | |||||||
9,794,082 | Towd Point Mortgage Trust, Ser | |||||||
2017-5, Class A1, 144a, (1M LIBOR | ||||||||
+0.600%), 2.472%, 2/25/57(A) | 9,829,273 | |||||||
2,952,845 | United Auto Credit Securitization | |||||||
Trust, Ser 2017-1, Class A, 144a, | ||||||||
1.890%, 5/10/19 | 2,950,096 | |||||||
2,865,287 | Vibrant CLO II Ltd. (Cayman Islands), | |||||||
Ser 2013-2A, Class A1BR, 144a, (3M | ||||||||
LIBOR +0.900%), 2.641%, 7/24/24(A) | 2,865,717 | |||||||
2,105,794 | Welk Resorts LLC, Ser 2013-AA, Class | |||||||
A, 144a, 3.100%, 3/15/29 | 2,090,871 | |||||||
1,092,780 | Westgate Resorts LLC, Ser 2015-1A, | |||||||
Class A, 144a, 2.750%, 5/20/27 | 1,088,155 | |||||||
4,279,442 | Westgate Resorts LLC, Ser 2016-1A, | |||||||
Class A, 144a, 3.500%, 12/20/28 | 4,285,331 | |||||||
Total Asset-Backed Securities | $ | 393,837,180 | ||||||
Corporate Bonds — 28.3% | ||||||||
Financials — 9.0% | ||||||||
10,000,000 | Ares Capital Corp., 4.875%, 11/30/18 | 10,097,769 | ||||||
3,000,000 | Bank of America Corp., | |||||||
6.875%, 11/15/18 | 3,078,205 | |||||||
3,000,000 | Bank of America Corp. MTN, | |||||||
5.650%, 5/1/18 | 3,007,559 | |||||||
1,000,000 | Bank of America NA, 1.750%, 6/5/18 | 998,671 | ||||||
700,000 | Bank One Corp., 8.530%, 3/1/19(C) | 735,266 | ||||||
605,000 | BB&T Corp. MTN, 2.050%, 6/19/18 | 604,427 | ||||||
7,000,000 | BB&T Corp. MTN, 2.150%, 2/1/21 | 6,823,013 | ||||||
3,997,000 | Capital One NA/Mclean VA, | |||||||
2.350%, 8/17/18 | 3,992,499 | |||||||
6,050,000 | Citibank NA, (3M LIBOR +0.340%), | |||||||
2.542%, 3/20/19(A) | 6,057,118 | |||||||
4,842,000 | Citigroup, Inc., 1.700%, 4/27/18 | 4,839,337 | ||||||
1,900,000 | Citigroup, Inc., 2.150%, 7/30/18 | 1,896,915 | ||||||
4,725,000 | Citigroup, Inc., 6.125%, 5/15/18 | 4,743,431 | ||||||
2,250,000 | Credit Agricole SA (France), 144a, | |||||||
2.125%, 4/17/18 | 2,249,634 | |||||||
2,275,000 | Credit Suisse AG/New York NY | |||||||
(Switzerland), 1.700%, 4/27/18 | 2,274,204 | |||||||
615,000 | Discover Bank, 2.600%, 11/13/18 | 614,805 | ||||||
1,114,000 | Goldman Sachs Group, Inc. (The), | |||||||
6.150%, 4/1/18 | 1,114,000 | |||||||
8,199,000 | Huntington Bancshares, Inc., | |||||||
7.000%, 12/15/20 | 8,930,584 | |||||||
825,000 | Intercontinental Exchange, Inc., | |||||||
2.500%, 10/15/18 | 824,799 | |||||||
4,730,000 | KeyCorp. MTN, 2.300%, 12/13/18 | 4,717,449 | ||||||
3,000,000 | Moody's Corp., (3M LIBOR +0.350%), | |||||||
2.375%, 9/4/18(A) | 3,000,405 | |||||||
7,350,000 | Mountain Agency, Inc. (The), | |||||||
2.130%, 12/1/23(A)(B) | 7,350,000 | |||||||
300,000 | National City Bank of Indiana, | |||||||
4.250%, 7/1/18 | 301,182 | |||||||
390,000 | PNC Bank NA, 1.850%, 7/20/18 | 389,352 | ||||||
250,000 | PNC Bank NA, 2.200%, 1/28/19 | 248,918 | ||||||
2,500,000 | Principal Life Global Funding II, 144a, | |||||||
1.500%, 4/18/19 | 2,467,509 | |||||||
989,000 | State Street Corp., 1.350%, 5/15/18 | 987,565 | ||||||
2,600,000 | XLIT Ltd. (Cayman Islands), | |||||||
2.300%, 12/15/18 | 2,590,126 | |||||||
84,934,742 | ||||||||
Consumer Discretionary — 3.4% | ||||||||
2,000,000 | AutoNation, Inc., 6.750%, 4/15/18 | 2,002,458 | ||||||
500,000 | Daimler Finance North America LLC, | |||||||
144a, 2.375%, 8/1/18 | 499,720 | |||||||
4,400,000 | Dollar General Corp., 1.875%, 4/15/18 | 4,398,087 | ||||||
300,000 | Ford Motor Co., 6.500%, 8/1/18 | 303,615 | ||||||
2,925,000 | Ford Motor Credit Co. LLC, | |||||||
5.000%, 5/15/18 | 2,932,019 | |||||||
1,600,000 | Ford Motor Credit Co. LLC, | |||||||
5.875%, 8/2/21 | 1,707,275 | |||||||
6,300,000 | General Motors Co., (3M LIBOR | |||||||
+0.800%), 2.593%, 8/7/20(A) | 6,306,002 | |||||||
1,000,000 | General Motors Financial Co., Inc., | |||||||
2.400%, 4/10/18 | 999,928 | |||||||
3,000,000 | General Motors Financial Co., Inc., | |||||||
3.250%, 5/15/18 | 3,000,770 | |||||||
1,700,000 | General Motors Financial Co., Inc., | |||||||
6.750%, 6/1/18 | 1,711,180 | |||||||
3,808,000 | Lear Corp., 5.375%, 3/15/24 | 3,993,722 | ||||||
2,273,000 | Marriott International, Inc./MD, | |||||||
6.750%, 5/15/18 | 2,283,951 | |||||||
1,000,000 | Newell Brands, Inc., 5.000%, 11/15/23 | 1,026,395 | ||||||
1,128,000 | Volkswagen Group of America | |||||||
Finance LLC, 144a, 1.650%, 5/22/18 | 1,126,409 | |||||||
32,291,531 |
52 |
Touchstone Ultra Short Duration Fixed Income Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 28.3% (Continued) | ||||||||
Utilities — 3.1% | ||||||||
$ | 1,545,000 | Consolidated Edison Co., 144a, | ||||||
5.850%, 4/1/18 | $ | 1,545,000 | ||||||
3,000,000 | Dominion Energy, Inc., 2.579%, 7/1/20 | 2,962,111 | ||||||
825,000 | Dominion Energy, Inc., 144a, | |||||||
1.500%, 9/30/18 | 820,222 | |||||||
4,375,000 | Duke Energy Florida LLC, | |||||||
2.100%, 12/15/19 | 4,352,443 | |||||||
2,975,000 | E.ON International Finance BV | |||||||
(Netherlands), 144a, | ||||||||
5.800%, 4/30/18 | 2,981,628 | |||||||
5,000,000 | Georgia Power Co., 2.000%, 3/30/20 | 4,920,084 | ||||||
700,000 | ITC Holdings Corp., 144a, | |||||||
5.500%, 1/15/20 | 726,530 | |||||||
500,000 | Ohio Power Co., 6.050%, 5/1/18 | 501,355 | ||||||
5,300,000 | Sempra Energy, (3M LIBOR +0.250%), | |||||||
1.959%, 7/15/19(A) | 5,300,191 | |||||||
451,000 | Southern Electric Generating Co., | |||||||
144a, 2.200%, 12/1/18 | 449,975 | |||||||
4,981,000 | United Utilities PLC (United Kingdom), | |||||||
4.550%, 6/19/18 | 4,998,428 | |||||||
29,557,967 | ||||||||
Consumer Staples — 2.9% | ||||||||
1,239,000 | Constellation Brands, Inc., | |||||||
3.875%, 11/15/19 | 1,255,709 | |||||||
6,800,000 | Kraft Heinz Foods Co., (3M LIBOR | |||||||
+0.570%), 2.381%, 2/10/21(A) | 6,781,430 | |||||||
2,075,000 | Kraft Heinz Foods Co., 6.125%, 8/23/18 | 2,103,718 | ||||||
4,020,000 | Reckitt Benckiser Treasury Services | |||||||
PLC (United Kingdom), 144a, | ||||||||
2.125%, 9/21/18 | 4,014,764 | |||||||
1,540,000 | Reckitt Benckiser Treasury Services | |||||||
PLC (United Kingdom), 144a, (3M | ||||||||
LIBOR +0.560%), 2.846%, 6/24/22(A) | 1,531,973 | |||||||
8,263,000 | Reynolds American, Inc., | |||||||
2.300%, 6/12/18 | 8,258,801 | |||||||
3,200,000 | Tyson Foods, Inc., (3M LIBOR | |||||||
+0.550%), 2.567%, 6/2/20(A) | 3,206,975 | |||||||
27,153,370 | ||||||||
Information Technology — 2.5% | ||||||||
3,200,000 | Dell International LLC / EMC Corp., | |||||||
144a, 3.480%, 6/1/19 | 3,214,474 | |||||||
1,400,000 | Fidelity National Information Services, | |||||||
Inc., 2.000%, 4/15/18 | 1,399,603 | |||||||
10,000,000 | Fidelity National Information Services, | |||||||
Inc., 2.850%, 10/15/18 | 10,004,579 | |||||||
9,300,000 | Hewlett Packard Enterprise Co., 144a, | |||||||
2.100%, 10/4/19 | 9,177,440 | |||||||
23,796,096 | ||||||||
Industrials — 2.4% | ||||||||
565,000 | Canadian National Railway Co. | |||||||
(Canada), 5.550%, 5/15/18 | 566,993 | |||||||
650,000 | General Electric Co. MTN, | |||||||
5.625%, 5/1/18 | 651,495 | |||||||
6,875,000 | Martin Marietta Materials, Inc., (3M | |||||||
LIBOR +0.650%), 2.554%, 5/22/20(A) | 6,901,884 | |||||||
3,669,000 | Martin Marietta Materials, Inc., | |||||||
6.600%, 4/15/18 | 3,674,458 | |||||||
2,112,000 | Pentair Finance Sarl (Luxembourg), | |||||||
2.900%, 9/15/18 | 2,112,455 | |||||||
958,000 | SBA Tower Trust, 144a, | |||||||
2.898%, 10/8/19(C) | 953,116 | |||||||
7,500,000 | Vulcan Materials Co., (3M LIBOR | |||||||
+0.650%), 2.570%, 3/1/21(A) | 7,502,201 | |||||||
22,362,602 | ||||||||
Energy — 2.4% | ||||||||
11,865,000 | Columbia Pipeline Group, Inc., | |||||||
2.450%, 6/1/18 | 11,857,425 | |||||||
230,000 | Enterprise Products Operating LLC, | |||||||
1.650%, 5/7/18 | 229,779 | |||||||
3,650,000 | Phillips 66, 144a, (3M LIBOR +0.650%), | |||||||
2.372%, 4/15/19(A) | 3,651,007 | |||||||
1,500,000 | Ras Laffan Liquefied Natural Gas Co. | |||||||
(Qatar), 6.750%, 9/30/19 | 1,571,250 | |||||||
293,130 | Ras Laffan Liquefied Natural Gas Co. | |||||||
Ltd. II (Qatar), 144a, 5.298%, 9/30/20 | 300,458 | |||||||
4,441,000 | Spectra Energy Partners LP, | |||||||
2.950%, 9/25/18 | 4,445,418 | |||||||
22,055,337 | ||||||||
Health Care — 1.3% | ||||||||
2,100,000 | Amgen, Inc., 1.900%, 5/10/19 | 2,082,266 | ||||||
2,100,000 | Amgen, Inc., 2.200%, 5/11/20 | 2,070,372 | ||||||
7,700,000 | Dignity Health, 2.637%, 11/1/19 | 7,667,161 | ||||||
750,000 | Medtronic, Inc., 1.375%, 4/1/18 | 750,000 | ||||||
12,569,799 | ||||||||
Real Estate — 0.5% | ||||||||
2,250,000 | Equity Commonwealth, | |||||||
5.875%, 9/15/20 | 2,340,137 | |||||||
1,790,000 | Highwoods Realty LP, 7.500%, 4/15/18 | 1,792,817 | ||||||
868,000 | SL Green Realty Corp., | |||||||
5.000%, 8/15/18 | 871,654 | |||||||
5,004,608 | ||||||||
Materials — 0.4% | ||||||||
2,700,000 | EI du Pont de Nemours & Co., | |||||||
2.200%, 5/1/20 | 2,662,679 | |||||||
800,000 | Monsanto Co., 1.850%, 11/15/18 | 795,693 | ||||||
3,458,372 | ||||||||
Telecommunication Services — 0.4% | ||||||||
2,040,000 | Crown Castle Towers LLC, 144a, | |||||||
3.222%, 5/15/22 | 2,023,415 | |||||||
1,405,000 | Sky PLC (United Kingdom), 144a, | |||||||
2.625%, 9/16/19 | 1,399,083 | |||||||
3,422,498 | ||||||||
Total Corporate Bonds | $ | 266,606,922 |
53 |
Touchstone Ultra Short Duration Fixed Income Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Commercial Mortgage-Backed Securities — 13.6% | ||||||||
$ | 5,388,572 | A10 Term Asset Financing LLC, Ser | ||||||
2017-1A, Class A1FL, 144a, (1M | ||||||||
LIBOR +0.850%), 2.627%, 3/15/36(A) | $ | 5,388,565 | ||||||
10,594,000 | AREIT Trust, Ser 2018-CRE1, Class A, | |||||||
144a, (1M LIBOR +0.850%), | ||||||||
2.350%, 2/15/35(A) | 10,599,731 | |||||||
8,358,430 | BAMLL Commercial Mortgage | |||||||
Securities Trust, Ser 2014-ICTS, Class | ||||||||
A, 144a, (1M LIBOR +0.800%), | ||||||||
2.577%, 6/15/28(A) | 8,358,420 | |||||||
5,000,000 | BHMS Mortgage Trust, Ser 2014-ATLS, | |||||||
Class BFL, 144a, (1M LIBOR | ||||||||
+1.950%), 3.614%, 7/5/33(A) | 5,014,834 | |||||||
3,898,000 | BSPRT Issuer Ltd. (Cayman Islands), Ser | |||||||
2017-FL2, Class A, 144a, (1M LIBOR | ||||||||
+0.820%), 2.597%, 10/15/34(A) | 3,900,490 | |||||||
3,219,000 | BSPRT Issuer Ltd. (Cayman Islands), Ser | |||||||
2017-FL2, Class AS, 144a, (1M LIBOR | ||||||||
+1.100%), 2.877%, 10/15/34(A) | 3,218,990 | |||||||
3,822,691 | CD Mortgage Trust, Ser 2006-CD3, | |||||||
Class AM, 5.648%, 10/15/48 | 3,952,463 | |||||||
6,560,000 | CGDB Commercial Mortgage Trust, | |||||||
Ser 2017-BIO, Class B, 144a, (1M | ||||||||
LIBOR +0.950%), 2.727%, 5/15/30(A) | 6,576,439 | |||||||
3,991,000 | COMM Mortgage Trust, Ser | |||||||
2013-CR10, Class A2, | ||||||||
2.972%, 8/10/46 | 3,996,114 | |||||||
44,615,513 | COMM Mortgage Trust, Ser | |||||||
2014-UBS3, Class XA, | ||||||||
1.294%, 6/10/47(A)(B) | 2,225,159 | |||||||
3,977,350 | COMM Mortgage Trust, Ser | |||||||
2016-SAVA, Class A, 144a, (1M | ||||||||
LIBOR +1.720%), | ||||||||
3.460%, 10/15/34(A) | 3,981,325 | |||||||
774,691 | DBUBS Mortgage Trust, Ser | |||||||
2011-LC2A, Class A1FL, 144a, (1M | ||||||||
LIBOR +1.350%), 3.090%, 7/12/44(A) | 783,345 | |||||||
3,718,901 | GS Mortgage Securities Corp. II, Ser | |||||||
2015-GC30, Class A1, | ||||||||
1.439%, 5/10/50 | 3,675,538 | |||||||
118,906,000 | GS Mortgage Securities Corp. II, Ser | |||||||
2017-SLP, Class XA, 144a, | ||||||||
1.172%, 10/10/32(A)(B) | 5,659,081 | |||||||
143,822,000 | GS Mortgage Securities Corp. Trust, | |||||||
Ser 2017-GPTX, Class XCP, 144a, | ||||||||
0.786%, 5/10/34(A)(B)(D) | 2,414,340 | |||||||
8,320,000 | Hospitality Mortgage Trust, Ser | |||||||
2017-HIT, Class B, 144a, (1M LIBOR | ||||||||
+1.180%), 2.891%, 5/8/30(A) | 8,353,773 | |||||||
10,422,000 | J.P. Morgan Chase Commercial | |||||||
Mortgage Securities Trust, Ser | ||||||||
2017-FL11, Class A, 144a, (1M LIBOR | ||||||||
+0.850%), 2.627%, 10/15/32(A) | 10,430,340 | |||||||
9,088,853 | JPMBB Commercial Mortgage | |||||||
Securities Trust, Ser 2013-C12, Class | ||||||||
A2, 2.424%, 7/15/45 | 9,079,244 | |||||||
2,078,622 | JPMBB Commercial Mortgage | |||||||
Securities Trust, Ser 2014-C24, Class | ||||||||
A1, 1.539%, 11/15/47 | 2,066,374 | |||||||
2,654,091 | JPMBB Commercial Mortgage | |||||||
Securities Trust, Ser 2015-C29, Class | ||||||||
A1, 1.626%, 5/15/48 | 2,628,361 | |||||||
1,883,000 | Merrill Lynch Mortgage Investors | |||||||
Trust, Ser 1998-C1, Class E, | ||||||||
6.750%, 11/15/26(A)(B) | 1,972,106 | |||||||
3,574,629 | Morgan Stanley Bank of America | |||||||
Merrill Lynch Trust, Ser 2015-C20, | ||||||||
Class A1, 1.405%, 2/15/48 | 3,539,605 | |||||||
765,947 | PFP Ltd. (Cayman Islands), Ser 2015-2, | |||||||
Class A, 144a, (1M LIBOR +1.450%), | ||||||||
3.236%, 7/14/34(A) | 766,431 | |||||||
3,752,988 | RAIT Trust, Ser 2017-FL7, Class A, 144a, | |||||||
(1M LIBOR +0.950%), | ||||||||
2.727%, 6/15/37(A) | 3,756,368 | |||||||
8,771,000 | Tharaldson Hotel Portfolio Trust, Ser | |||||||
2018-THL, Class B, 144a, (1M LIBOR | ||||||||
+1.100%), 2.840%, 11/11/34(A) | 8,784,957 | |||||||
6,280,000 | TPG Real Estate Finance Issuer Ltd. | |||||||
(Cayman Islands), Ser 2018-FL1, | ||||||||
Class AS, 144a, (1M LIBOR +0.950%), | ||||||||
2.736%, 2/15/35(A) | 6,283,044 | |||||||
13,161,707 | UBS-Citigroup Commercial Mortgage | |||||||
Trust, Ser 2011-C1, Class XA, 144a, | ||||||||
2.199%, 1/10/45(A)(B)(D) | 818,423 | |||||||
Total Commercial | ||||||||
Mortgage-Backed Securities | $ | 128,223,860 | ||||||
Non-Agency Collateralized Mortgage | ||||||||
Obligations — 3.9% | ||||||||
2,336,189 | Bear Stearns ARM Trust, Ser 2003-1, | |||||||
Class 5A1, 3.401%, 4/25/33(A)(B)†† | 2,367,804 | |||||||
270,467 | Bear Stearns ARM Trust, Ser 2004-1, | |||||||
Class 13A3, 3.920%, 4/25/34(A)(B)†† | 271,901 | |||||||
4,805,868 | Bear Stearns ARM Trust, Ser 2004-4, | |||||||
Class A6, 3.601%, 6/25/34(A)(B)†† | 4,918,647 | |||||||
203,276 | Bear Stearns Asset Backed Securities | |||||||
Trust, Ser 2003-AC7, Class A2, | ||||||||
5.750%, 1/25/34(C)†† | 205,487 | |||||||
65,698 | Community Program Loan Trust, Ser | |||||||
1987-A, Class A5, 4.500%, 4/1/29 | 65,502 | |||||||
183,731 | CSMC Trust, Ser 2012-CIM1, Class A1, | |||||||
144a, 3.380%, 2/25/42(A)(B) | 183,937 | |||||||
2,317,656 | CSMC Trust, Ser 2014-WIN1, Class 2A5, | |||||||
144a, 3.000%, 9/25/44(A)(B) | 2,317,729 | |||||||
5,766,001 | CSMC Trust, Ser 2014-WIN2, Class A5, | |||||||
144a, 3.000%, 10/25/44(A)(B) | 5,767,623 | |||||||
55,108 | FDIC Structured Sale Guaranteed | |||||||
Notes, Ser 2010-S3, Class A, 144a, | ||||||||
2.740%, 12/3/20 | 54,386 |
54 |
Touchstone Ultra Short Duration Fixed Income Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Non-Agency Collateralized Mortgage | ||||||||
Obligations — 3.9% (Continued) | ||||||||
$ | 4,265,202 | GSR Mortgage Loan Trust, Ser | ||||||
2003-13, Class 1A1, | ||||||||
3.400%, 10/25/33(A)(B) | $ | 4,387,493 | ||||||
160,361 | JP Morgan Mortgage Trust, Ser | |||||||
2006-A4, Class 2A2, | ||||||||
3.429%, 6/25/36(A)(B) | 152,028 | |||||||
21,041 | Merrill Lynch Mortgage Investors | |||||||
Trust, Ser 2003-A1, Class 2A, (12M | ||||||||
LIBOR +1.625%), | ||||||||
4.106%, 12/25/32(A) | 21,034 | |||||||
151,542 | Merrill Lynch Mortgage Investors | |||||||
Trust, Ser 2004-1, Class 1A, | ||||||||
3.281%, 12/25/34(A)(B) | 150,709 | |||||||
12,252,430 | Opteum Mortgage Acceptance Corp. | |||||||
Asset Backed Pass-Through | ||||||||
Certificates, Ser 2005-3, Class A1C, | ||||||||
(1M LIBOR +0.370%), | ||||||||
2.242%, 7/25/35(A) | 12,265,487 | |||||||
860,798 | RFMSI Trust, Ser 2007-SA1, Class 1A1, | |||||||
3.553%, 2/25/37(A)(B) | 738,776 | |||||||
2,449,277 | Towd Point Mortgage Trust, Ser | |||||||
2015-4, Class A1B, 144a, | ||||||||
2.750%, 4/25/55(A)(B) | 2,430,530 | |||||||
152,610 | Wells Fargo Mortgage Backed | |||||||
Securities Trust, Ser 2003-G, Class | ||||||||
A1, 3.365%, 6/25/33(A)(B) | 154,254 | |||||||
396,158 | Wells Fargo Mortgage Backed | |||||||
Securities Trust, Ser 2003-M, Class | ||||||||
A1, 3.731%, 12/25/33(A)(B) | 405,122 | |||||||
Total Non-Agency Collateralized | ||||||||
Mortgage Obligations | $ | 36,858,449 | ||||||
Agency Collateralized Mortgage | ||||||||
Obligations — 3.7% | ||||||||
116,624,565 | FHLMC Multifamily Structured Pass | |||||||
Through Certificates, Ser K504 Class | ||||||||
X1, 0.171%, 9/25/20(A)(B)(D) | 316,309 | |||||||
129,676,119 | FHLMC Multifamily Structured Pass | |||||||
Through Certificates, Ser KAIV Class | ||||||||
X1, 1.291%, 6/25/21(A)(B)(D) | 4,018,650 | |||||||
25,745 | FHLMC REMIC, Ser 2510 Class TA, | |||||||
4.000%, 6/15/32 | 25,790 | |||||||
344,743 | FHLMC REMIC, Ser 2770 Class FH, (1M | |||||||
LIBOR +0.400%), 2.177%, 3/15/34(A) | 344,549 | |||||||
13,277 | FHLMC REMIC, Ser 2927 Class ED, | |||||||
4.000%, 1/15/35 | 13,270 | |||||||
27,773 | FHLMC REMIC, Ser 3414 Class MB, | |||||||
4.250%, 12/15/19 | 27,881 | |||||||
1,467,569 | FHLMC REMIC, Ser 3874 Class BD, | |||||||
3.000%, 6/15/21 | 1,469,922 | |||||||
3,811,992 | FHLMC REMIC, Ser 4238 Class TL, | |||||||
1.250%, 8/15/27 | 3,554,675 | |||||||
550 | FHLMC REMIC, Ser 4459 Class NG, | |||||||
6.500%, 10/15/24 | 548 | |||||||
198,743 | FNMA REMIC, Ser 2003-119, Class PU, | |||||||
4.000%, 11/25/33 | 202,682 | |||||||
72,559 | FNMA REMIC, Ser 2003-33, Class AM, | |||||||
4.250%, 5/25/33 | 74,540 | |||||||
63,571 | FNMA REMIC, Ser 2003-42, Class CA, | |||||||
4.000%, 5/25/33 | 64,381 | |||||||
286,152 | FNMA REMIC, Ser 2003-81, Class FE, | |||||||
(1M LIBOR +0.500%), | ||||||||
2.372%, 9/25/33(A) | 287,227 | |||||||
537,379 | FNMA REMIC, Ser 2009-32, Class BH, | |||||||
5.250%, 5/25/39 | 557,385 | |||||||
41,739 | FNMA REMIC, Ser 2010-13, Class WD, | |||||||
4.250%, 3/25/25 | 42,098 | |||||||
7,017,999 | FNMA REMIC, Ser 2010-64, Class AD, | |||||||
3.000%, 12/25/20 | 7,030,521 | |||||||
2,666,310 | FNMA REMIC, Ser 2011-15, Class HC, | |||||||
2.500%, 3/25/26 | 2,652,821 | |||||||
12,253 | FNMA REMIC, Ser 2011-52, Class AH, | |||||||
2.750%, 10/25/18 | 12,234 | |||||||
1,826,003 | FNMA REMIC, Ser 2011-67, Class DA, | |||||||
4.500%, 7/25/21 | 1,841,336 | |||||||
262,340 | FNMA REMIC, Ser 2012 102 Class, | |||||||
1.500%, 9/25/27 | 251,055 | |||||||
2,883,809 | FNMA REMIC, Ser 2012-47, Class AI, | |||||||
3.000%, 5/25/22 | 131,084 | |||||||
142,031 | FNMA REMIC Trust, Ser 2001-W4, Class | |||||||
AF5, 6.114%, 2/25/32(C) | 165,346 | |||||||
116,945 | GNMA, Ser 2002-72, Class AB, | |||||||
4.500%, 10/20/32 | 120,439 | |||||||
85,556 | GNMA, Ser 2011-57, Class BA, | |||||||
3.000%, 5/20/40 | 84,994 | |||||||
178,442 | GNMA, Ser 2012-27, Class A, | |||||||
1.614%, 7/16/39 | 173,704 | |||||||
6,063,900 | GNMA, Ser 2016-40, Class F, (1M LIBOR | |||||||
+0.400%), 2.186%, 7/16/57(A) | 6,001,043 | |||||||
4,992,313 | GNMA, Ser 2016-95, Class F, (1M LIBOR | |||||||
+0.450%), 2.236%, 1/16/58(A) | 4,947,764 | |||||||
Total Agency Collateralized | ||||||||
Mortgage Obligations | $ | 34,412,248 | ||||||
Municipal Bonds — 2.8% | ||||||||
California — 0.4% | ||||||||
2,155,000 | CA St Enterprise Dev Authority, Txbl | |||||||
Variable J Harris Indl Wt, (LOC: City | ||||||||
National Bank), 144a, 2.120%, | ||||||||
9/1/41(A)(B) | 2,155,000 | |||||||
1,885,000 | CA St Infrastructure & Economic Dev | |||||||
Bank, Variable Canyon Plastics Inc P, | ||||||||
Variable Canyon Plastics Inc P, (LOC: | ||||||||
Bank Of West (The)), 1.730%, | ||||||||
12/1/39(A)(B) | 1,885,000 | |||||||
4,040,000 | ||||||||
Connecticut — 0.1% | ||||||||
425,000 | State of Connecticut, Ser A, UTGO, | |||||||
2.520%, 5/15/18(A)(B) | 425,161 |
55 |
Touchstone Ultra Short Duration Fixed Income Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Municipal Bonds — 2.8% (Continued) | ||||||||
Florida — 0.5% | ||||||||
$ | 5,000,000 | State Brd of Admin Fin Corp., Txbl Ser | ||||||
A, 2.163%, 7/1/19 | $ | 4,987,600 | ||||||
Hawaii — 0.1% | ||||||||
1,000,000 | State of Hawaii, Txbl Ser Fu, UTGO, | |||||||
2.200%, 1/1/19 | 1,000,050 | |||||||
Illinois — 0.4% | ||||||||
3,500,000 | IL St Sales Tax Rev, Txbl Sales Tax, | |||||||
2.000%, 6/15/18 | 3,498,670 | |||||||
Massachusetts — 0.1% | ||||||||
417,000 | MA St Edu Fin Auth, I Ser B 1, 3.633%, | |||||||
1/1/31(A)(B) | 417,571 | |||||||
Minnesota — 0.1% | ||||||||
1,095,000 | Saint Paul Mn Hsg & Redev Auth, Txbl | |||||||
Ref Healthpartners Oblig, 1.838%, | ||||||||
7/1/18 | 1,093,949 | |||||||
New Mexico — 0.0% | ||||||||
30,000 | New Mexico Educational Assistance | |||||||
Foundation, (3M LIBOR + 0.650%), | ||||||||
2.656%, 12/1/28(A) | 30,022 | |||||||
New York — 0.3% | ||||||||
3,150,000 | Brookhaven NY IDA, Variable | |||||||
Intercounty Asso, (LOC: Capital One | ||||||||
NA), 1.900%, 1/1/25(A)(B) | 3,150,000 | |||||||
Ohio — 0.1% | ||||||||
1,000,000 | West Carrollton Oh Non-Tax Rev, Txbl | |||||||
Various Purpose BANS, 1.600%, | ||||||||
5/1/18 | 999,310 | |||||||
Other Territory — 0.7% | ||||||||
6,900,000 | Rib Floater Trust, Txbl Muni Floaters Trs | |||||||
Ser 201, (LOC: Barclays Bank | ||||||||
PLC), 144a, 2.240%, 7/1/22(A)(B) | 6,900,000 | |||||||
South Carolina — 0.0% | ||||||||
280,000 | Spartanburg SC Wtrwks Rev, Txbl Ref | |||||||
Sys Ser B, 1.785%, 12/1/18 | 279,014 | |||||||
Total Municipal Bonds | $ | 26,821,347 | ||||||
U.S. Government Mortgage-Backed | ||||||||
Obligations — 2.6% | ||||||||
75,494 | FHLMC, Pool #1B1580, (12M LIBOR | |||||||
+1.961%), 4.086%, 3/1/34(A) | 79,945 | |||||||
121,745 | FHLMC, Pool #1B2629, (12M LIBOR | |||||||
+1.750%), 3.500%, 11/1/34(A) | 127,482 | |||||||
342,024 | FHLMC, Pool #1B7189, (12M LIBOR | |||||||
+2.470%), 4.324%, 3/1/36(A) | 368,541 | |||||||
91,607 | FHLMC, Pool #1G1471, (12M LIBOR | |||||||
+1.670%), 3.441%, 1/1/37(A) | 95,288 | |||||||
602,528 | FHLMC, Pool #1H1354, (1 Year CMT | |||||||
Rate +2.250%), 3.429%, 11/1/36(A) | 633,792 | |||||||
58,232 | FHLMC, Pool #1H2524, (1 Year CMT | |||||||
Rate +2.250%), 3.559%, 8/1/35(A) | 61,313 | |||||||
238,174 | FHLMC, Pool #1J1813, (12M LIBOR | |||||||
+1.925%), 3.675%, 8/1/37(A) | 250,104 | |||||||
199,265 | FHLMC, Pool #1K1238, (1 Year CMT | |||||||
Rate +2.250%), 3.232%, 7/1/36(A) | 209,888 | |||||||
130,885 | FHLMC, Pool #1L0087, (1 Year CMT | |||||||
Rate +2.250%), 3.230%, 6/1/35(A) | 138,395 | |||||||
278,680 | FHLMC, Pool #1L0147, (1 Year CMT | |||||||
Rate +2.290%), 3.397%, 7/1/35(A) | 293,619 | |||||||
181,278 | FHLMC, Pool #1L1288, (1 Year CMT | |||||||
Rate +2.250%), 3.514%, 5/1/36(A) | 191,489 | |||||||
162,085 | FHLMC, Pool #1Q0080, (12M LIBOR | |||||||
+1.686%), 3.443%, 1/1/36(A) | 169,708 | |||||||
392,493 | FHLMC, Pool #1Q0119, (12M LIBOR | |||||||
+1.843%), 3.633%, 9/1/36(A) | 412,742 | |||||||
488,539 | FHLMC, Pool #1Q0187, (12M LIBOR | |||||||
+1.800%), 3.547%, 12/1/36(A) | 511,229 | |||||||
285,503 | FHLMC, Pool #1Q0339, (12M LIBOR | |||||||
+1.944%), 3.769%, 4/1/37(A) | 300,333 | |||||||
112,361 | FHLMC, Pool #1Q0669, (12M LIBOR | |||||||
+1.723%), 3.504%, 11/1/37(A) | 117,423 | |||||||
454,122 | FHLMC, Pool #1Q1303, (1 Year CMT | |||||||
Rate +2.250%), 3.396%, 11/1/36(A) | 477,953 | |||||||
585,586 | FHLMC, Pool #781515, (1 Year CMT | |||||||
Rate +2.250%), 3.650%, 4/1/34(A) | 621,049 | |||||||
258,760 | FHLMC, Pool #782760, (1 Year CMT | |||||||
Rate +2.250%), 3.416%, 11/1/36(A) | 271,930 | |||||||
219,518 | FHLMC, Pool #847795, (1 Year CMT | |||||||
Rate +2.273%), 3.509%, 4/1/35(A) | 231,028 | |||||||
124,773 | FHLMC, Pool #848088, (1 Year CMT | |||||||
Rate +2.245%), 3.567%, 4/1/35(A) | 131,297 | |||||||
445,911 | FHLMC, Pool #848539, (1 Year CMT | |||||||
Rate +2.263%), 3.575%, 4/1/37(A) | 469,718 | |||||||
1,094,433 | FHLMC, Pool #848583, (1 Year CMT | |||||||
Rate +2.301%), 3.646%, 1/1/36(A) | 1,155,803 | |||||||
14,119 | FHLMC, Pool #A92646, 5.500%, 6/1/40 | 15,486 | ||||||
15,626 | FHLMC, Pool #C03505, 5.500%, 6/1/40 | 16,973 | ||||||
67,565 | FHLMC, Pool #C66916, 7.000%, 5/1/32 | 75,016 | ||||||
8,666 | FHLMC, Pool #D94598, 6.500%, 4/1/21 | 8,959 | ||||||
1,959 | FHLMC, Pool #G00100, 8.000%, 2/1/23 | 2,109 | ||||||
45,630 | FHLMC, Pool #G01840, 5.000%, 7/1/35 | 49,198 | ||||||
315,038 | FHLMC, Pool #G11769, | |||||||
5.000%, 10/1/20 | 320,520 | |||||||
203,403 | FHLMC, Pool #G11773, | |||||||
5.000%, 10/1/20 | 207,467 | |||||||
105,259 | FHLMC, Pool #J05907, 6.000%, 8/1/19 | 105,990 | ||||||
81,700 | FHLMC, Pool #J10895, | |||||||
4.000%, 10/1/19 | 84,042 | |||||||
55,099 | FNMA, Pool #175123, 7.450%, 8/1/22 | 56,508 | ||||||
4,721 | FNMA, Pool #207530, 8.250%, 4/1/22 | 4,730 | ||||||
143,100 | FNMA, Pool #254868, 5.000%, 9/1/33 | 154,503 | ||||||
70,358 | FNMA, Pool #256272, 5.500%, 6/1/26 | 76,416 | ||||||
120,572 | FNMA, Pool #256852, 6.000%, 8/1/27 | 134,067 | ||||||
27,015 | FNMA, Pool #323832, 7.500%, 7/1/29 | 30,872 |
56 |
Touchstone Ultra Short Duration Fixed Income Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
U.S. Government Mortgage-Backed | ||||||||
Obligations — 2.6% (Continued) | ||||||||
$ | 2,067 | FNMA, Pool #334593, 7.000%, 5/1/24 | $ | 2,208 | ||||
99,759 | FNMA, Pool #555380, (12M LIBOR | |||||||
+1.600%), 3.696%, 4/1/33(A) | 104,651 | |||||||
52,240 | FNMA, Pool #665773, 7.500%, 6/1/31 | 53,475 | ||||||
107,536 | FNMA, Pool #679742, (1 Year CMT Rate | |||||||
+2.580%), 3.366%, 1/1/40(A) | 110,374 | |||||||
47,360 | FNMA, Pool #681842, (1 Year CMT Rate | |||||||
+2.125%), 3.704%, 2/1/33(A) | 49,263 | |||||||
124,713 | FNMA, Pool #681898, (1 Year CMT Rate | |||||||
+2.125%), 3.650%, 4/1/33(A) | 130,575 | |||||||
155,186 | FNMA, Pool #725245, (1 Year CMT Rate | |||||||
+2.140%), 3.462%, 2/1/34(A) | 162,967 | |||||||
400 | FNMA, Pool #725284, 7.000%, 11/1/18 | 400 | ||||||
162,792 | FNMA, Pool #725424, 5.500%, 4/1/34 | 178,845 | ||||||
941,081 | FNMA, Pool #725490, (12M LIBOR | |||||||
+1.617%), 3.373%, 4/1/34(A) | 987,541 | |||||||
16,996 | FNMA, Pool #735439, 6.000%, 9/1/19 | 17,213 | ||||||
28,273 | FNMA, Pool #735484, 5.000%, 5/1/35 | 30,525 | ||||||
129,998 | FNMA, Pool #735539, (1 Year CMT Rate | |||||||
+2.203%), 3.675%, 4/1/35(A) | 136,768 | |||||||
54,832 | FNMA, Pool #743207, (12M LIBOR | |||||||
+1.506%), 3.270%, 10/1/33(A) | 57,154 | |||||||
46,676 | FNMA, Pool #745467, (12M LIBOR | |||||||
+1.947%), 3.734%, 4/1/36(A) | 48,932 | |||||||
40,363 | FNMA, Pool #745790, (1 Year CMT Rate | |||||||
+2.062%), 3.371%, 8/1/36(A) | 41,992 | |||||||
136,188 | FNMA, Pool #761411, 4.500%, 5/1/19 | 137,208 | ||||||
76,822 | FNMA, Pool #784365, (6M LIBOR | |||||||
+1.550%), 3.050%, 5/1/34(A) | 79,582 | |||||||
183,051 | FNMA, Pool #791978, (6M LIBOR | |||||||
+1.518%), 3.441%, 9/1/34(A) | 189,588 | |||||||
61,396 | FNMA, Pool #804001, (1 Year CMT Rate | |||||||
+2.185%), 3.435%, 10/1/34(A) | 64,420 | |||||||
41,231 | FNMA, Pool #809897, (12M LIBOR | |||||||
+1.697%), 3.845%, 3/1/35(A) | 43,103 | |||||||
178,803 | FNMA, Pool #813170, (12M LIBOR | |||||||
+1.575%), 3.533%, 1/1/35(A) | 186,527 | |||||||
835,375 | FNMA, Pool #815323, (6M LIBOR | |||||||
+1.536%), 3.150%, 1/1/35(A) | 864,376 | |||||||
193,628 | FNMA, Pool #820364, (12M LIBOR | |||||||
+0.969%), 2.719%, 4/1/35(A) | 200,569 | |||||||
366,554 | FNMA, Pool #827787, (6M LIBOR | |||||||
+1.550%), 3.062%, 5/1/35(A) | 379,385 | |||||||
49,566 | FNMA, Pool #828480, (12M LIBOR | |||||||
+1.730%), 3.605%, 6/1/35(A) | 52,170 | |||||||
127,779 | FNMA, Pool #839239, (12M LIBOR | |||||||
+1.760%), 3.510%, 9/1/35(A) | 134,343 | |||||||
81,943 | FNMA, Pool #888179, (12M LIBOR | |||||||
+1.812%), 3.639%, 2/1/37(A) | 85,809 | |||||||
57,901 | FNMA, Pool #888548, (1 Year CMT Rate | |||||||
+2.251%), 3.444%, 5/1/35(A) | 61,125 | |||||||
90,457 | FNMA, Pool #889060, 6.000%, 1/1/38 | 101,001 | ||||||
87,231 | FNMA, Pool #889061, 6.000%, 1/1/38 | 98,817 | ||||||
5,930 | FNMA, Pool #889382, 5.500%, 4/1/38 | 6,569 | ||||||
323,815 | FNMA, Pool #922674, (12M LIBOR | |||||||
+1.905%), 3.780%, 4/1/36(A) | 341,892 | |||||||
43,550 | FNMA, Pool #931676, 5.500%, 1/1/19 | 43,752 | ||||||
137,163 | FNMA, Pool #950385, (6M LIBOR | |||||||
+0.964%), 2.734%, 8/1/37(A) | 138,672 | |||||||
43,192 | FNMA, Pool #960376, 5.500%, 12/1/37 | 47,084 | ||||||
198,296 | FNMA, Pool #985670, 6.500%, 10/1/21 | 203,937 | ||||||
26 | FNMA, Pool #995284, 5.500%, 3/1/20 | 26 | ||||||
284,300 | FNMA, Pool #AA1150, 4.000%, 4/1/23 | 292,486 | ||||||
9,662 | FNMA, Pool #AD0941, 5.500%, 4/1/40 | 10,757 | ||||||
73,502 | FNMA, Pool #AE0363, 5.000%, 7/1/37 | 79,357 | ||||||
82,884 | FNMA, Pool #AE0727, 4.000%, 10/1/20 | 85,270 | ||||||
88,725 | FNMA, Pool #AE5441, 5.000%, 10/1/40 | 95,349 | ||||||
163,436 | FNMA, Pool #AI6588, 4.000%, 7/1/26 | 168,218 | ||||||
172,405 | FNMA, Pool #AI8506, 4.000%, 8/1/26 | 177,430 | ||||||
155,351 | FNMA, Pool #AL0211, 5.000%, 4/1/41 | 167,799 | ||||||
23,771 | FNMA, Pool #AL0302, 5.000%, 4/1/24 | 24,762 | ||||||
985,885 | FNMA, Pool #AL0478, (12M LIBOR | |||||||
+1.794%), 3.576%, 4/1/36(A) | 1,038,630 | |||||||
285,495 | FNMA, Pool #AL0543, 5.000%, 7/1/41 | 308,779 | ||||||
158,118 | FNMA, Pool #AL1105, 4.500%, 12/1/40 | 167,550 | ||||||
45,431 | FNMA, Pool #AL2591, 5.500%, 5/1/38 | 47,338 | ||||||
525,259 | FNMA, Pool #AL5275, (6M LIBOR | |||||||
+1.492%), 3.121%, 9/1/37(A) | 542,909 | |||||||
2,930,813 | FNMA, Pool #AL7396, (6M LIBOR | |||||||
+1.537%), 3.139%, 2/1/37(A) | 3,031,953 | |||||||
7,594 | GNMA, Pool #344233, 8.000%, 2/15/23 | 8,032 | ||||||
35,146 | GNMA, Pool #345123, | |||||||
8.000%, 12/15/23 | 37,231 | |||||||
4,478 | GNMA, Pool #569337, 6.500%, 4/15/22 | 4,663 | ||||||
14,304 | GNMA, Pool #628440, 7.000%, 4/15/24 | 14,365 | ||||||
10,027 | GNMA, Pool #780322, | |||||||
8.000%, 11/15/22 | 10,651 | |||||||
494,510 | GNMA, Pool #80826, (1 Year CMT Rate | |||||||
+1.500%), 2.375%, 2/20/34(A) | 513,974 | |||||||
215,233 | GNMA, Pool #80889, (1 Year CMT Rate | |||||||
+1.500%), 2.625%, 4/20/34(A) | 223,729 | |||||||
365,486 | GNMA, Pool #81016, (1 Year CMT Rate | |||||||
+1.500%), 2.750%, 8/20/34(A) | 378,957 | |||||||
763,566 | GNMA, Pool #82760, (1 Year CMT Rate | |||||||
+1.500%), 2.375%, 3/20/41(A) | 785,739 | |||||||
363 | GNMA, Pool #8426, (1 Year CMT Rate | |||||||
+1.500%), 3.125%, 11/20/18(A) | 362 | |||||||
476,791 | GNMA, Pool #MA2392, (1 Year CMT | |||||||
Rate +1.500%), 3.000%, 11/20/44(A) | 494,391 | |||||||
1,952,217 | GNMA, Pool #MA2466, (1 Year CMT | |||||||
Rate +1.500%), 3.000%, 12/20/44(A) | 2,025,745 | |||||||
Total U.S. Government | ||||||||
Mortgage-Backed Obligations | $ | 24,972,189 | ||||||
U.S. Government Agency Obligations — 0.8% | ||||||||
2,100,000 | Overseas Private Investment Corp., | |||||||
1.705%, 10/15/33(A)(B) | 2,100,000 |
57 |
Touchstone Ultra Short Duration Fixed Income Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
U.S. Government Agency Obligations — 0.8% | ||||||||
(Continued) | ||||||||
$ | 5,000,000 | Overseas Private Investment Corp., | ||||||
1.790%, 7/20/22(A)(B) | $ | 5,000,000 | ||||||
15,767 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2002-20A, Class 1, 6.140%, 1/1/22 | 16,421 | |||||||
27,766 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2003-20E, Class 1, 4.640%, 5/1/23 | 28,651 | |||||||
177,141 | Small Business Administration Pools, | |||||||
1.900%, 1/25/26(A) | 175,870 | |||||||
149,013 | Small Business Administration Pools, | |||||||
2.000%, 4/25/28(A) | 148,176 | |||||||
Total U.S. Government Agency | ||||||||
Obligations | $ | 7,469,118 | ||||||
Bank Loan — 0.2% | ||||||||
1,743,938 | Micron Technology Inc., Term Loan, | |||||||
(LIBOR +2.000%), | ||||||||
3.880%, 4/26/22(A)(E) | $ | 1,754,296 | ||||||
Commercial Paper — 2.3% | ||||||||
15,000,000 | Avypp, 2.171%, 04/02/2018(F) | 14,996,660 | ||||||
6,400,000 | CABOTC, 2.251%, 04/02/2018(F) | 6,398,537 | ||||||
Total Commercial Paper | $ | 21,395,197 | ||||||
Shares | ||||||||
Short-Term Investment Fund — 0.0% | ||||||||
97,508 | Dreyfus Government Cash | |||||||
Management, Institutional Shares, | ||||||||
1.54%∞Ω | $ | 97,508 | ||||||
Total Investment Securities —100.0% | ||||||||
(Cost $945,660,501) | $ | 942,448,314 | ||||||
Liabilities in Excess of | ||||||||
Other Assets — 0.0% | (451,838 | ) | ||||||
Net Assets — 100.0% | $ | 941,996,476 |
(A) | Variable rate security - Rate reflected is the rate in effect as of March 31, 2018. |
(B) | Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description. |
(C) | Step Bond - A bond that pays an initial interest rate for the first period and then a higher interest rate for the following periods until maturity. The interest rate shown reflects the rate in effect as of March 31, 2018. |
(D) | Interest only security - This type of security represents the right to receive the monthly interest payments on an underlying pool of mortgages. Payments of principal on the pool reduce the value of the “interest only” holding. |
(E) | Bank loans pay interest at rates which adjust periodically unless otherwise indicated. The interest rates shown are the current interest rates as of March 31, 2018. |
(F) | Rate reflects yield at the time of purchase. |
†† | 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, 2018. |
Portfolio Abbreviations:
ARM - Adjustable Rate Mortgage
BANS - Bond Anticipation Notes
CDO - Collateralized Debt Obligations
CLO - Collateralized Loan Obligations
CMT - Constant Maturity Treasury
FDIC - Federal Deposit Insurance Corporation
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
GNMA - Government National Mortgage Association
IDA - Industrial Development Agency
LIBOR - London Interbank Offered Rate
58 |
Touchstone Ultra Short Duration Fixed Income Fund (Unaudited) (Continued)
LLC - Limited Liability Company
LOC - Letter of Credit
LP - 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, 2018, these securities were valued at $482,013,941 or 51.2% 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 | ||||||||||||
Asset-Backed Securities | $ | — | $ | 393,837,180 | $ | — | $ | 393,837,180 | ||||||||
Corporate Bonds | — | 266,606,922 | — | 266,606,922 | ||||||||||||
Commercial Mortgage-Backed Securities | — | 128,223,860 | — | 128,223,860 | ||||||||||||
Non-Agency Collateralized Mortgage Obligations | — | 36,858,449 | — | 36,858,449 | ||||||||||||
Agency Collateralized Mortgage Obligations | — | 34,412,248 | — | 34,412,248 | ||||||||||||
Municipal Bonds | — | 26,821,347 | — | 26,821,347 | ||||||||||||
U.S. Government Mortgage-Backed Obligations | — | 24,972,189 | — | 24,972,189 | ||||||||||||
U.S. Government Agency Obligations | — | 7,469,118 | — | 7,469,118 | ||||||||||||
Bank Loan | — | 1,754,296 | — | 1,754,296 | ||||||||||||
Commercial Paper | — | 21,395,197 | — | 21,395,197 | ||||||||||||
Short-Term Investment Fund | 97,508 | — | — | 97,508 | ||||||||||||
Total | $ | 97,508 | $ | 942,350,806 | $ | — | $ | 942,448,314 |
See accompanying Notes to Financial Statements.
59 |
Statements of Assets and Liabilities
March 31, 2018 (Unaudited)
Touchstone | ||||||||||||||||
Touchstone | Touchstone | Emerging | Touchstone | |||||||||||||
Active Bond | Arbitrage | Markets Small | High Yield | |||||||||||||
Fund | Fund | Cap Fund | Fund | |||||||||||||
Assets | ||||||||||||||||
Investments, at cost | $ | 397,778,911 | $ | 273,416,138 | $ | 11,615,381 | $ | 197,833,339 | ||||||||
Investments, at market value (A) | $ | 394,907,068 | $ | 266,346,161 | $ | 12,812,264 | $ | 194,229,521 | ||||||||
Cash | — | — | — | 56 | ||||||||||||
Foreign currency (B) | — | — | 254,633 | — | ||||||||||||
Cash collateral for securities sold short and written options | — | 5,166,076 | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts | — | 49,954 | — | — | ||||||||||||
Dividends and interest receivable | 2,126,517 | 209,040 | 32,767 | 3,211,848 | ||||||||||||
Receivable for capital shares sold | 105,696 | 2,148,461 | 23,062 | 24,004 | ||||||||||||
Receivable for investments sold | 1,300,699 | 14,925,050 | 340,099 | 1,746,484 | ||||||||||||
Receivable for securities lending income | 2,503 | 2,138 | 521 | 8,485 | ||||||||||||
Receivable from Investment Advisor | — | — | 7,918 | — | ||||||||||||
Tax reclaim receivable | — | — | 167 | — | ||||||||||||
Other assets | 34,794 | 41,918 | 27,334 | 31,410 | ||||||||||||
Total Assets | 398,477,277 | 288,888,798 | 13,498,765 | 199,251,808 | ||||||||||||
Liabilities | ||||||||||||||||
Bank overdrafts | — | 2,330,347 | 103,491 | — | ||||||||||||
Foreign currency(B) | — | 94 | — | — | ||||||||||||
Due to prime broker | — | — | — | — | ||||||||||||
Written options, at market value(C) | — | 189,222 | — | — | ||||||||||||
Securities sold short(D) | — | 24,473,518 | — | — | ||||||||||||
Dividend and interest payable on securities sold short | — | 45,603 | — | — | ||||||||||||
Payable for return of collateral for securities on loan | — | 2,409,030 | 198,631 | 2,972,535 | ||||||||||||
Payable for capital shares redeemed | 477,265 | 182,697 | 3,000 | 231,671 | ||||||||||||
Payable for investments purchased | 398,234 | 14,498,274 | 387,841 | 2,083,000 | ||||||||||||
Payable to Investment Advisor | 106,449 | 216,556 | — | 76,852 | ||||||||||||
Payable to other affiliates | 61,996 | 34,978 | 135 | 28,771 | ||||||||||||
Payable to Trustees | 3,687 | 3,687 | 3,687 | 3,687 | ||||||||||||
Payable for professional services | 15,343 | 15,903 | 31,546 | 14,778 | ||||||||||||
Payable to Transfer Agent | 214,941 | 39,741 | 4,956 | 53,314 | ||||||||||||
Payable for reports to shareholders | — | 9,020 | 6,373 | 7,912 | ||||||||||||
Other accrued expenses and liabilities | 57,216 | 6,894 | 21,523 | 25,914 | ||||||||||||
Total Liabilities | 1,335,131 | 44,455,564 | 761,183 | 5,498,434 | ||||||||||||
Net Assets | $ | 397,142,146 | $ | 244,433,234 | $ | 12,737,582 | $ | 193,753,374 | ||||||||
Net assets consist of: | ||||||||||||||||
Par value | $ | 392,384 | $ | 251,843 | $ | 10,764 | $ | 232,432 | ||||||||
Paid-in capital | 401,062,342 | 255,140,072 | 108,230,115 | 210,827,836 | ||||||||||||
Accumulated net investment income (loss) | (380,301 | ) | (1,057,855 | ) | (97,121 | ) | 667,994 | |||||||||
Accumulated net realized gains (losses) on investments, forward foreign currency contracts, foreign currency transactions, futures contracts, written options and securities sold short | (1,060,436 | ) | (2,427,507 | ) | (96,604,613 | ) | (14,371,070 | ) | ||||||||
Net unrealized appreciation (depreciation) on investments, forward foreign currency contracts, foreign currency transactions, written options and securities sold short | (2,871,843 | ) | (7,473,319 | ) | 1,198,437 | (3,603,818 | ) | |||||||||
Net Assets | $ | 397,142,146 | $ | 244,433,234 | $ | 12,737,582 | $ | 193,753,374 | ||||||||
(A) Includes market value of securities on loan of: | $ | — | $ | 2,297,842 | $ | 192,811 | $ | 2,866,741 | ||||||||
(B) Cost of foreign currency: | $ | — | $ | (91 | ) | $ | 253,729 | $ | — | |||||||
(C) Premiums received from written options: | $ | — | $ | 218,581 | $ | — | $ | — | ||||||||
(D) Proceeds received for securities sold short: | $ | — | $ | 23,990,866 | $ | — | $ | — |
See accompanying Notes to Financial Statements.
60 |
Statements of Assets and Liabilities (Unaudited) (Continued)
Touchstone | Touchstone | Touchstone | Touchstone | Touchstone | Touchstone | |||||||||||||||||
Merger | Mid | Mid Cap | Premium | Sands Capital | Small | |||||||||||||||||
Arbitrage | Cap | Value | Yield Equity | Select Growth | Cap | |||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | |||||||||||||||||
$ | 219,311,192 | $ | 689,624,731 | $ | 697,021,090 | $ | 101,538,812 | $ | 1,096,584,451 | $ | 116,308,131 | |||||||||||
$ | 214,715,172 | $ | 818,758,089 | $ | 757,165,203 | $ | 115,750,901 | $ | 2,511,996,561 | $ | 170,402,458 | |||||||||||
1,283 | 151,173 | 75,153 | 71,256 | 6 | 38,042 | |||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
25,628 | — | — | — | — | — | |||||||||||||||||
173,959 | 1,256,198 | 1,038,960 | 249,068 | 244,460 | 179,338 | |||||||||||||||||
511,607 | 2,852,715 | 4,717,831 | 114,566 | 2,068,926 | 38,229 | |||||||||||||||||
8,904,901 | 3,939,595 | — | — | — | 1,851,612 | |||||||||||||||||
— | — | 8,099 | 2,067 | — | 32,577 | |||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
— | — | — | 23,630 | — | — | |||||||||||||||||
34,060 | 47,993 | 51,537 | 22,845 | 60,488 | 35,618 | |||||||||||||||||
224,366,610 | 827,005,763 | 763,056,783 | 116,234,333 | 2,514,370,441 | 172,577,874 | |||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
51 | — | — | — | — | — | |||||||||||||||||
12,828,367 | — | — | — | — | — | |||||||||||||||||
158,166 | — | — | — | — | — | |||||||||||||||||
14,344,506 | — | — | — | — | — | |||||||||||||||||
51,625 | — | — | — | — | — | |||||||||||||||||
— | — | 20,761,501 | 4,684,185 | — | 6,324,413 | |||||||||||||||||
289,092 | 1,372,247 | 16,190,921 | 351,316 | 4,234,147 | 676,862 | |||||||||||||||||
8,327,386 | — | 1,648,453 | 542,786 | — | — | |||||||||||||||||
162,561 | 525,675 | 513,254 | 66,262 | 2,036,781 | 118,756 | |||||||||||||||||
31,164 | 146,135 | 65,003 | 29,038 | 798,178 | 25,407 | |||||||||||||||||
3,687 | 3,687 | 3,687 | 3,687 | 3,687 | 3,687 | |||||||||||||||||
16,085 | 17,680 | 15,332 | 11,611 | 31,785 | 12,206 | |||||||||||||||||
36,626 | 175,061 | 112,987 | 28,447 | 598,070 | 45,773 | |||||||||||||||||
7,372 | 17,706 | 3,691 | 8,376 | 60,981 | 22,650 | |||||||||||||||||
10,884 | 2,115 | 2,502 | 1,818 | 16,098 | 6,661 | |||||||||||||||||
36,267,572 | 2,260,306 | 39,317,331 | 5,727,526 | 7,779,727 | 7,236,415 | |||||||||||||||||
$ | 188,099,038 | $ | 824,745,457 | $ | 723,739,452 | $ | 110,506,807 | $ | 2,506,590,714 | $ | 165,341,459 | |||||||||||
$ | 181,310 | $ | 252,652 | $ | 401,263 | $ | 119,146 | $ | 1,598,976 | $ | 109,323 | |||||||||||
195,300,503 | 682,903,542 | 652,246,609 | 91,565,896 | 977,084,047 | 91,677,256 | |||||||||||||||||
(1,035,237 | ) | 1,375,052 | 259,755 | (237,971 | ) | (25,616,654 | ) | 5,835 | ||||||||||||||
(1,539,351 | ) | 11,080,853 | 10,687,712 | 4,847,647 | 138,112,235 | 19,454,718 | ||||||||||||||||
(4,808,187 | ) | 129,133,358 | 60,144,113 | 14,212,089 | 1,415,412,110 | 54,094,327 | ||||||||||||||||
$ | 188,099,038 | $ | 824,745,457 | $ | 723,739,452 | $ | 110,506,807 | $ | 2,506,590,714 | $ | 165,341,459 | |||||||||||
$ | — | $ | — | $ | 21,066,580 | $ | 4,587,097 | $ | — | $ | 6,360,406 | |||||||||||
$ | (50 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
$ | 183,789 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
$ | 14,081,089 | $ | — | $ | — | $ | — | $ | — | $ | — |
61 |
Statements of Assets and Liabilities (Unaudited) (Continued)
Touchstone | ||||||||||||||||
Touchstone | Emerging | |||||||||||||||
Active | Touchstone | Markets | Touchstone | |||||||||||||
Bond | Arbitrage | Small Cap | High Yield | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Pricing of Class A Shares | ||||||||||||||||
Net assets applicable to Class A shares | $ | 153,654,130 | $ | 5,663,318 | $ | 1,972,750 | $ | 14,793,827 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, $0.01 par value) | 15,088,437 | 591,178 | 166,697 | 1,817,587 | ||||||||||||
Net asset value price per share* | $ | 10.18 | $ | 9.58 | $ | 11.83 | $ | 8.14 | ||||||||
Maximum sales charge - Class A shares | 4.75 | % | 5.75 | % | 5.75 | % | 4.75 | % | ||||||||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent) - Class A shares | $ | 10.69 | $ | 10.16 | $ | 12.55 | $ | 8.55 | ||||||||
Pricing of Class C Shares | ||||||||||||||||
Net assets applicable to Class C shares | $ | 27,954,223 | $ | 6,574,224 | $ | 1,054,013 | $ | 10,862,245 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, $0.01 par value) | 2,971,825 | 709,342 | 91,452 | 1,337,856 | ||||||||||||
Net asset value and offering price per share** | $ | 9.41 | $ | 9.27 | $ | 11.53 | $ | 8.12 | ||||||||
Pricing of Class Y Shares | ||||||||||||||||
Net assets applicable to Class Y shares | $ | 184,971,540 | $ | 171,151,242 | $ | 8,583,579 | $ | 57,289,514 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, $0.01 par value) | 18,174,270 | 17,626,439 | 722,547 | 6,843,378 | ||||||||||||
Net asset value, offering price and redemption price per share | $ | 10.18 | $ | 9.71 | $ | 11.88 | $ | 8.37 | ||||||||
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 | $ | 30,562,253 | $ | 61,044,450 | $ | 1,127,240 | $ | 110,807,788 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, $0.01 par value) | 3,003,842 | 6,257,359 | 95,670 | 13,244,355 | ||||||||||||
Net asset value, offering price and redemption price per share | $ | 10.17 | $ | 9.76 | $ | 11.78 | $ | 8.37 |
* | There is no sales load on subscriptions of $1 million or more. Redemptions that were part of a $1 million or more subscription may be subject to a contingent deferred sales load if redeemed within a one-year period from the date of purchase. |
** | Redemption price per share varies by length of time shares are held due to the terms of the contingent deferred sales charge. |
See accompanying Notes to Financial Statements.
62 |
Statements of Assets and Liabilities (Unaudited) (Continued)
Touchstone | Touchstone | Touchstone | Touchstone | Touchstone | Touchstone | |||||||||||||||||
Merger | Mid | Mid Cap | Premium | Sands Capital | Small | |||||||||||||||||
Arbitrage | Cap | Value | Yield Equity | Select | Cap | |||||||||||||||||
Fund | Fund | Fund | Fund | Growth Fund | Fund | |||||||||||||||||
$ | 11,232,655 | $ | 34,200,967 | $ | 19,739,313 | $ | 13,403,550 | $ | 89,214,637 | $ | 10,272,755 | |||||||||||
1,097,694 | 1,051,485 | 1,101,669 | 1,442,214 | 5,895,997 | 683,571 | |||||||||||||||||
$ | 10.23 | $ | 32.53 | $ | 17.92 | $ | 9.29 | $ | 15.13 | $ | 15.03 | |||||||||||
5.75 | % | 5.75 | % | 5.75 | % | 5.75 | % | 5.75 | % | 5.75 | % | |||||||||||
$ | 10.85 | $ | 34.51 | $ | 19.01 | $ | 9.86 | $ | 16.05 | $ | 15.95 | |||||||||||
$ | 9,562,309 | $ | 55,705,901 | $ | 9,614,036 | $ | 20,178,632 | $ | 73,814,611 | $ | 7,067,434 | |||||||||||
985,302 | 1,808,078 | 550,599 | 2,174,153 | 5,321,579 | 494,122 | |||||||||||||||||
$ | 9.70 | $ | 30.81 | $ | 17.46 | $ | 9.28 | $ | 13.87 | $ | 14.30 | |||||||||||
$ | 106,354,126 | $ | 600,396,725 | $ | 333,782,834 | $ | 76,924,625 | $ | 1,794,066,247 | $ | 60,453,752 | |||||||||||
10,222,652 | 18,302,276 | 18,539,373 | 8,298,198 | 112,398,100 | 3,976,385 | |||||||||||||||||
$ | 10.40 | $ | 32.80 | $ | 18.00 | $ | 9.27 | $ | 15.96 | $ | 15.20 | |||||||||||
$ | — | $ | 19,829,237 | $ | — | $ | — | $ | 549,495,219 | $ | — | |||||||||||
— | 613,292 | — | — | 36,281,937 | — | |||||||||||||||||
$ | — | $ | 32.33 | $ | — | $ | — | $ | 15.15 | $ | — | |||||||||||
$ | 60,949,948 | $ | 114,612,627 | $ | 360,603,269 | $ | — | $ | — | $ | 87,547,518 | |||||||||||
5,825,311 | 3,490,090 | 19,934,637 | — | — | 5,778,216 | |||||||||||||||||
$ | 10.46 | $ | 32.84 | $ | 18.09 | $ | — | $ | — | $ | 15.15 |
63 |
Statements of Assets and Liabilities (Unaudited) (Continued)
Touchstone | Touchstone | |||||||||||
Small | Touchstone | Ultra Short | ||||||||||
Cap Value | Total Return | Duration Fixed | ||||||||||
Fund | Bond Fund | Income Fund | ||||||||||
Assets | ||||||||||||
Investments, at cost | $ | 102,492,179 | $ | 309,143,658 | $ | 945,660,501 | ||||||
Investments, at market value (A) | $ | 102,017,410 | $ | 304,475,826 | $ | 942,448,314 | ||||||
Cash | 10,054 | 9 | 398 | |||||||||
Dividends and interest receivable | 135,693 | 2,171,201 | 4,363,798 | |||||||||
Receivable for capital shares sold | 27,021 | 898,251 | 1,575,775 | |||||||||
Receivable for investments sold | — | — | 934,295 | |||||||||
Receivable from securities lending income | 4,482 | 770 | — | |||||||||
Other assets | 23,993 | 43,787 | 56,357 | |||||||||
Total Assets | 102,218,653 | 307,589,844 | 949,378,937 | |||||||||
Liabilities | ||||||||||||
Distributions payable | — | — | 261,419 | |||||||||
Payable for return of collateral for securities on loan | 6,342,805 | 1,272,000 | — | |||||||||
Payable for capital shares redeemed | 45,079 | 1,384,542 | 6,489,389 | |||||||||
Payable for investments purchased | 31,032 | — | — | |||||||||
Payable to Investment Advisor | 68,606 | 73,866 | 187,155 | |||||||||
Payable to other affiliates | 5,546 | 29,416 | 264,870 | |||||||||
Payable to Trustees | 3,687 | 3,687 | 3,685 | |||||||||
Payable for professional services | 12,369 | 14,505 | 19,235 | |||||||||
Payable to Transfer Agent | 96,950 | 26,331 | 106,424 | |||||||||
Payable for reports to shareholders | 10,729 | 5,635 | 7,227 | |||||||||
Other accrued expenses and liabilities | 2,153 | 17,009 | 43,057 | |||||||||
Total Liabilities | 6,618,956 | 2,826,991 | 7,382,461 | |||||||||
Net Assets | $ | 95,599,697 | $ | 304,762,853 | $ | 941,996,476 | ||||||
Net assets consist of: | ||||||||||||
Par value | 37,251 | 306,823 | 1,018,034 | |||||||||
Paid-in capital | 95,088,108 | 313,285,413 | 968,008,202 | |||||||||
Accumulated net investment income (loss) | 31,718 | (454,894 | ) | (191,694 | ) | |||||||
Accumulated net realized gains (losses) on investments | 917,389 | (3,706,657 | ) | (23,625,879 | ) | |||||||
Net unrealized depreciation on investments | (474,769 | ) | (4,667,832 | ) | (3,212,187 | ) | ||||||
Net Assets | $ | 95,599,697 | $ | 304,762,853 | $ | 941,996,476 | ||||||
(A) Includes market value of securities on loan of: | $ | 6,350,204 | $ | 1,236,000 | $ | — |
See accompanying Notes to Financial Statements.
64 |
Statements of Assets and Liabilities (Unaudited) (Continued)
Touchstone | Touchstone | |||||||||||
Small | Touchstone | Ultra Short | ||||||||||
Cap Value | Total Return | Duration Fixed | ||||||||||
Fund | Bond Fund | Income Fund | ||||||||||
Pricing of Class A Shares | ||||||||||||
Net assets applicable to Class A shares | $ | 74,483,172 | $ | 6,147,327 | $ | 85,129,202 | ||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, $0.01 par value) | 2,901,957 | 619,551 | 9,198,021 | |||||||||
Net asset value price per share* | $ | 25.67 | $ | 9.92 | $ | 9.26 | ||||||
Maximum sales charge - Class A shares | 5.75 | % | 4.75 | % | 2.00 | % | ||||||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent) - Class A shares | $ | 27.24 | $ | 10.41 | $ | 9.45 | ||||||
Pricing of Class C Shares | ||||||||||||
Net assets applicable to Class C shares | $ | 1,058,782 | $ | 1,275,092 | $ | 5,454,024 | ||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, $0.01 par value) | 42,152 | 128,663 | 589,107 | |||||||||
Net asset value and offering price per share** | $ | 25.12 | $ | 9.91 | $ | 9.26 | ||||||
Pricing of Class S Shares | ||||||||||||
Net assets applicable to Class S shares | $ | — | $ | — | $ | 158,078,576 | ||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) | — | — | 17,082,584 | |||||||||
Net asset value, offering price and redemption price per share | $ | — | $ | — | $ | 9.25 | ||||||
Pricing of Class Y Shares | ||||||||||||
Net assets applicable to Class Y shares | $ | 2,722,847 | $ | 49,340,408 | $ | 270,349,081 | ||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, $0.01 par value) | 105,909 | 4,966,700 | 29,213,505 | |||||||||
Net asset value, offering price and redemption price per share | $ | 25.71 | $ | 9.93 | $ | 9.25 | ||||||
Pricing of Class Z Shares | ||||||||||||
Net assets applicable to Class Z shares | $ | — | $ | — | $ | 182,824,222 | ||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, $0.01 par value) | — | — | 19,752,219 | |||||||||
Net asset value, offering price and redemption price per share | $ | — | $ | — | $ | 9.26 | ||||||
Pricing of Institutional Class Shares | ||||||||||||
Net assets applicable to Institutional Class shares | $ | 17,334,896 | $ | 248,000,026 | $ | 240,161,371 | ||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, $0.01 par value) | 675,040 | 24,967,408 | 25,967,936 | |||||||||
Net asset value, offering price and redemption price per share | $ | 25.68 | $ | 9.93 | $ | 9.25 |
* | There is no sales load on subscriptions of $1 million or more. Redemptions that were part of a $1 million or more subscription may be subject to a contingent deferred sales load if redeemed within a one-year period from the date of purchase. |
** | Redemption price per share varies by length of time shares are held due to the terms of the contingent deferred sales charge. |
See accompanying Notes to Financial Statements.
65 |
For the Six Months Ended March 31, 2018 (Unaudited)
Touchstone | ||||||||||||
Touchstone | Touchstone | Emerging | ||||||||||
Active Bond | Arbitrage | Markets Small | ||||||||||
Fund | Fund | Cap Fund | ||||||||||
Investment Income | ||||||||||||
Dividends (A) | $ | 570,345 | $ | 572,662 | $ | 69,619 | ||||||
Interest | 4,950,486 | 414,803 | — | |||||||||
Income from securities loaned | 3,606 | 54,508 | 2,045 | |||||||||
Total Investment Income | 5,524,437 | 1,041,973 | 71,664 | |||||||||
Expenses | ||||||||||||
Investment advisory fees | 713,805 | 1,220,783 | 70,069 | |||||||||
Administration fees | 267,546 | 168,584 | 9,676 | |||||||||
Compliance fees and expenses | 689 | 689 | 689 | |||||||||
Custody fees | 27,911 | 22,819 | 38,590 | |||||||||
Professional fees | 19,801 | 17,323 | 30,913 | |||||||||
Transfer Agent fees, Class A | 116,833 | 4,975 | 3,783 | |||||||||
Transfer Agent fees, Class C | 23,820 | 2,989 | 1,015 | |||||||||
Transfer Agent fees, Class Y | 134,749 | 63,810 | 2,535 | |||||||||
Transfer Agent fees, Class Z | — | — | — | |||||||||
Transfer Agent fees, Institutional Class | 661 | 1,801 | 378 | |||||||||
Registration Fees, Class A | 8,482 | 8,272 | 8,104 | |||||||||
Registration Fees, Class C | 7,286 | 6,826 | 5,547 | |||||||||
Registration Fees, Class Y | 8,582 | 15,092 | 7,727 | |||||||||
Registration Fees, Class Z | — | — | — | |||||||||
Registration Fees, Institutional Class | 7,055 | 6,515 | 6,679 | |||||||||
Dividend expense on securities sold short | — | 194,881 | — | |||||||||
Interest expense on securities sold short | — | 48,304 | — | |||||||||
Reports to Shareholders, Class A | 4,112 | 2,886 | 2,634 | |||||||||
Reports to Shareholders, Class C | 3,041 | 2,727 | 2,416 | |||||||||
Reports to Shareholders, Class Y | 4,094 | 9,185 | 2,515 | |||||||||
Reports to Shareholders, Class Z | — | — | — | |||||||||
Reports to Shareholders, Institutional Class | 2,402 | 2,618 | 2,370 | |||||||||
Shareholder servicing fees, Class Z | — | — | — | |||||||||
Distribution expenses, Class A | 174,749 | 8,080 | 3,306 | |||||||||
Distribution and shareholder servicing expenses, Class C | 132,418 | 38,689 | 5,071 | |||||||||
Trustee fees | 7,213 | 7,213 | 7,213 | |||||||||
Other expenses | 82,959 | 14,828 | 17,034 | |||||||||
Total Expenses | 1,748,208 | 1,869,889 | 228,264 | |||||||||
Fees waived and/or reimbursed by the Advisor and/or Affiliates(B) | (252,690 | ) | (19,407 | ) | (124,579 | ) | ||||||
Fees eligible for recoupment by the Advisor(B) | — | — | — | |||||||||
Net Expenses | 1,495,518 | 1,850,482 | 103,685 | |||||||||
Net Investment Income (Loss) | 4,028,919 | (808,509 | ) | (32,021 | ) | |||||||
Realized and Unrealized Gains (Losses) on Investments | ||||||||||||
Net realized gains (losses) on investments(C) | (694,599 | ) | 5,518,329 | 1,058,255 | ||||||||
Net realized losses on forward foreign currency contracts | — | (122,431 | ) | — | ||||||||
Net realized gains (losses) on foreign currency transactions | — | 38,426 | (4,651 | ) | ||||||||
Net realized losses on futures contracts | (131,990 | ) | — | — | ||||||||
Net realized gains on written options | — | 474,638 | — | |||||||||
Net realized losses on securities sold short | — | (5,773,465 | ) | — | ||||||||
Net change in unrealized appreciation (depreciation) on investments(D) | (8,757,297 | ) | (5,982,201 | ) | (47,251 | ) | ||||||
Net change in unrealized appreciation (depreciation) on forward foreign currency contracts | — | 31,433 | — | |||||||||
Net change in unrealized appreciation (depreciation) on foreign currency transactions | — | 4,243 | 1,668 | |||||||||
Net change in unrealized appreciation (depreciation) on written options | — | 1,698 | — | |||||||||
Net change in unrealized appreciation (depreciation) on securities sold short | — | 1,550,351 | — | |||||||||
Net Realized and Unrealized Gains (Losses) on Investments | (9,583,886 | ) | (4,258,979 | ) | 1,008,021 | |||||||
Change in Net Assets Resulting from Operations | $ | (5,554,967 | ) | $ | (5,067,488 | ) | $ | 976,000 | ||||
(A) Net of foreign tax withholding of: | $ | — | $ | 896 | $ | 7,534 |
(B)See Note 4 in Notes to Financial Statements.
(C) On March 13, 2018, the Small Cap Fund had a redemption-in-kind of securities and cash in the amount of $2,022,916 and $62,741, respectively, Net realized gains (losses) on investments includes the realized gains on the transactions of $834,647 which will not be realized by the Fund for tax purposes.
(D) Change in unrealized appreciation (depreciation) does not include net appreciation of $3,902,071 for the Touchstone Active Bond Fund in connection with the Fund's merger. See Note 9 in the Notes to Financial Statements.
See accompanying Notes to Financial Statements.
66 |
Statements of Operations (Unaudited) (Continued)
Touchstone | Touchstone | Touchstone | Touchstone | Touchstone | ||||||||||||||||||||||
Touchstone | Merger | Mid | Mid Cap | Premium | Sands Capital | Touchstone | ||||||||||||||||||||
High Yield | Arbitrage | Cap | Value | Yield Equity | Select Growth | Small Cap | ||||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | Fund | ||||||||||||||||||||
$ | 5,800 | $ | 450,699 | $ | 6,432,117 | $ | 5,676,504 | $ | 1,747,768 | $ | 1,830,139 | $ | 4,976,919 | |||||||||||||
5,753,881 | 491,455 | — | — | — | 1,415 | — | ||||||||||||||||||||
17,334 | — | — | 23,245 | 26,735 | 213,420 | 216,880 | ||||||||||||||||||||
5,777,015 | 942,154 | 6,432,117 | 5,699,749 | 1,774,503 | 2,044,974 | 5,193,799 | ||||||||||||||||||||
529,830 | 1,010,668 | 3,210,263 | 2,885,466 | 421,977 | 11,180,495 | 833,203 | ||||||||||||||||||||
146,421 | 139,569 | 596,551 | 533,756 | 88,572 | 1,827,864 | 142,135 | ||||||||||||||||||||
689 | 689 | 689 | 689 | 689 | 689 | 689 | ||||||||||||||||||||
7,099 | 27,725 | 7,380 | 11,541 | 3,325 | 19,775 | 5,237 | ||||||||||||||||||||
16,054 | 17,378 | 23,020 | 21,418 | 12,900 | 48,551 | 14,396 | ||||||||||||||||||||
13,111 | 6,221 | 18,110 | 14,066 | 16,059 | 38,690 | 11,486 | ||||||||||||||||||||
5,927 | 4,610 | 28,597 | 4,760 | 7,949 | 31,145 | 5,098 | ||||||||||||||||||||
50,135 | 44,163 | 274,991 | 139,805 | 20,761 | 800,686 | 47,403 | ||||||||||||||||||||
— | — | 10,725 | — | — | 423,483 | — | ||||||||||||||||||||
3,937 | 10,044 | 8,315 | 73,772 | — | — | 16,238 | ||||||||||||||||||||
8,566 | 9,233 | 8,687 | 9,305 | 8,824 | 8,778 | 8,283 | ||||||||||||||||||||
7,310 | 8,032 | 8,782 | 8,624 | 8,000 | 8,589 | 7,020 | ||||||||||||||||||||
12,226 | 10,346 | 19,191 | 19,133 | 10,246 | 24,470 | 10,550 | ||||||||||||||||||||
— | — | 8,182 | — | — | 14,266 | — | ||||||||||||||||||||
7,262 | 10,224 | 6,655 | 12,991 | — | — | 8,300 | ||||||||||||||||||||
— | 149,109 | — | — | — | — | — | ||||||||||||||||||||
— | 162,433 | — | — | — | — | — | ||||||||||||||||||||
3,023 | 2,811 | 4,007 | 3,950 | 3,115 | 4,980 | 3,166 | ||||||||||||||||||||
2,896 | 2,832 | 5,363 | 3,156 | 3,056 | 5,193 | 2,834 | ||||||||||||||||||||
3,670 | 4,809 | 37,360 | 24,745 | 6,663 | 63,719 | 12,784 | ||||||||||||||||||||
— | — | 3,495 | — | — | 27,199 | — | ||||||||||||||||||||
2,519 | 2,432 | 2,811 | 11,307 | — | — | 2,893 | ||||||||||||||||||||
— | — | 24,956 | — | — | 675,348 | — | ||||||||||||||||||||
19,177 | 15,576 | 43,812 | 26,112 | 28,695 | 113,410 | 14,477 | ||||||||||||||||||||
60,066 | 51,768 | 290,045 | 54,055 | 108,466 | 371,000 | 41,603 | ||||||||||||||||||||
7,213 | 7,213 | 7,213 | 7,213 | 7,213 | 7,213 | 7,213 | ||||||||||||||||||||
39,605 | 14,152 | 23,097 | 22,111 | 8,795 | 56,051 | 14,613 | ||||||||||||||||||||
946,736 | 1,712,037 | 4,672,297 | 3,887,975 | 765,305 | 15,751,594 | 1,209,621 | ||||||||||||||||||||
(104,078 | ) | (31,820 | ) | (280,235 | ) | (327,377 | ) | (47,621 | ) | (259,820 | ) | (84,300 | ) | |||||||||||||
— | — | — | 37,454 | — | — | — | ||||||||||||||||||||
842,658 | 1,680,217 | 4,392,062 | 3,598,052 | 717,684 | 15,491,774 | 1,125,321 | ||||||||||||||||||||
4,934,357 | (738,063 | ) | 2,040,055 | 2,101,697 | 1,056,819 | (13,446,800 | ) | 4,068,478 | ||||||||||||||||||
1,604,705 | 4,422,367 | 89,873,359 | 19,902,087 | 5,174,296 | 160,083,488 | 26,947,793 | ||||||||||||||||||||
— | (71,814 | ) | — | — | — | — | — | |||||||||||||||||||
— | 23,055 | — | — | — | — | — | ||||||||||||||||||||
— | — | — | — | — | — | — | ||||||||||||||||||||
— | 436,645 | — | — | — | — | — | ||||||||||||||||||||
— | (5,536,252 | ) | — | — | — | — | — | |||||||||||||||||||
(8,649,818 | ) | (3,935,845 | ) | (31,599,861 | ) | (35,231,289 | ) | (3,293,797 | ) | 172,427,210 | (22,923,725 | ) | ||||||||||||||
— | 14,763 | — | — | — | — | — | ||||||||||||||||||||
— | 1,975 | — | — | — | — | — | ||||||||||||||||||||
— | 1,381 | — | — | — | — | — | ||||||||||||||||||||
— | 2,235,757 | — | — | — | — | — | ||||||||||||||||||||
(7,045,113 | ) | (2,407,968 | ) | 58,273,498 | (15,329,202 | ) | 1,880,499 | 332,510,698 | 4,024,068 | |||||||||||||||||
$ | (2,110,756 | ) | $ | (3,146,031 | ) | $ | 60,313,553 | $ | (13,227,505 | ) | $ | 2,937,318 | $ | 319,063,898 | $ | 8,092,546 | ||||||||||
$ | — | $ | 498 | $ | — | $ | — | $ | 54,303 | $ | 9,350 | $ | — |
67 |
Statements of Operations (Unaudited) (Continued)
Touchstone | ||||||||||||
Touchstone | Touchstone | Ultra Short | ||||||||||
Small Cap | Total Return | Duration | ||||||||||
Value | Bond | Fixed Income | ||||||||||
Fund | Fund | Fund | ||||||||||
Investment Income | ||||||||||||
Dividends | $ | 694,797 | $ | 62,738 | $ | 36,279 | ||||||
Interest | — | 4,233,349 | 11,486,065 | |||||||||
Income from securities loaned | 13,432 | 1,794 | — | |||||||||
Total Investment Income | 708,229 | 4,297,881 | 11,522,344 | |||||||||
Expenses | ||||||||||||
Investment advisory fees | 414,523 | 494,495 | 1,179,410 | |||||||||
Administration fees | 66,784 | 204,862 | 684,052 | |||||||||
Compliance fees and expenses | 689 | 689 | 686 | |||||||||
Custody fees | 4,670 | 6,612 | 21,675 | |||||||||
Professional fees | 13,151 | 16,400 | 28,678 | |||||||||
Transfer Agent fees, Class A | 109,169 | 4,388 | 32,317 | |||||||||
Transfer Agent fees, Class C | 957 | 894 | 2,119 | |||||||||
Transfer Agent fees, Class S | — | — | 15,320 | |||||||||
Transfer Agent fees, Class Y | 2,677 | 21,703 | 83,610 | |||||||||
Transfer Agent fees, Class Z | — | — | 90,757 | |||||||||
Transfer Agent fees, Institutional Class | 1,093 | 53,723 | 19,705 | |||||||||
Registration Fees, Class A | 10,466 | 7,264 | 10,462 | |||||||||
Registration Fees, Class C | 5,371 | 5,345 | 8,331 | |||||||||
Registration Fees, Class S | — | — | 3,374 | |||||||||
Registration Fees, Class Y | 5,465 | 8,591 | 11,985 | |||||||||
Registration Fees, Class Z | — | — | 10,597 | |||||||||
Registration Fees, Institutional Class | 3,865 | 14,620 | 9,765 | |||||||||
Reports to Shareholders, Class A | 8,986 | 2,438 | 3,297 | |||||||||
Reports to Shareholders, Class C | 2,492 | 2,419 | 2,550 | |||||||||
Reports to Shareholders, Class S | — | — | 3,932 | |||||||||
Reports to Shareholders, Class Y | 2,545 | 2,743 | 5,838 | |||||||||
Reports to Shareholders, Class Z | — | — | 8,397 | |||||||||
Reports to Shareholders, Institutional Class | 2,367 | 2,957 | 2,537 | |||||||||
Shareholder servicing fees, Class Z | — | — | 251,412 | |||||||||
Distribution expenses, Class A | 95,638 | 6,879 | 98,253 | |||||||||
Distribution and shareholder servicing expenses, Class C | 6,015 | 7,828 | 20,425 | |||||||||
Distribution and shareholder servicing expenses, Class S | — | — | 347,601 | |||||||||
Trustee fees | 7,213 | 7,213 | 7,211 | |||||||||
Other expenses | 42,523 | 22,793 | 65,730 | |||||||||
Total Expenses | 806,659 | 894,856 | 3,030,026 | |||||||||
Fees waived and/or reimbursed by the Advisor and/or Affiliates(A) | (193,055 | ) | (148,857 | ) | (308,734 | ) | ||||||
Net Expenses | 613,604 | 745,999 | 2,721,292 | |||||||||
Net Investment Income | 94,625 | 3,551,882 | 8,801,052 | |||||||||
Realized and Unrealized Gains (Losses) on Investments | ||||||||||||
Net realized gains on investments | 3,491,190 | 70,335 | 1,032,751 | |||||||||
Net change in unrealized appreciation (depreciation) on investments(B) | (5,299,076 | ) | (5,531,786 | ) | (4,874,400 | ) | ||||||
Net Realized and Unrealized Gains (Losses) on Investments | (1,807,886 | ) | (5,461,451 | ) | (3,841,649 | ) | ||||||
Change in Net Assets Resulting from Operations | $ | (1,713,261 | ) | $ | (1,909,569 | ) | $ | 4,959,403 | ||||
(A) See Note 4 in Notes to Financial Statements. | ||||||||||||
(B) Change in unrealized appreciation (depreciation) does not include net appreciation of $1,842,713 for the Touchstone Ultra Short Duration Fixed Income Fund in connection with the Fund's merger. See Note 9 in the Notes to Financial Statements. |
See accompanying Notes to Financial Statements.
68 |
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69 |
Statements of Changes in Net Assets
Touchstone | Touchstone | |||||||||||||||
Active Bond | Arbitrage | |||||||||||||||
Fund | Fund | |||||||||||||||
For the | For the | |||||||||||||||
Six Months | For the | Six Months | For the | |||||||||||||
Ended | Year Ended | Ended | Year Ended | |||||||||||||
March 31, 2018 | September 30, | March 31, 2018 | September 30, | |||||||||||||
(Unaudited) | 2017 | (Unaudited) | 2017 | |||||||||||||
From Operations | ||||||||||||||||
Net investment income (loss) | $ | 4,028,919 | $ | 2,803,969 | $ | (808,509 | ) | $ | (1,865,799 | ) | ||||||
Net realized gains (losses) on investments, forward foreign currency contracts, foreign currency transactions, futures contracts, written options and securities sold short | (826,589 | ) | 272,649 | 135,497 | 8,649,280 | |||||||||||
Net change in unrealized appreciation (depreciation) on investments, forward foreign currency contracts, foreign currency transactions, written options and securities sold short | (8,757,297 | ) | (1,681,396 | ) | (4,394,476 | ) | (2,212,948 | ) | ||||||||
Change in Net Assets from Operations | (5,554,967 | ) | 1,395,222 | (5,067,488 | ) | 4,570,533 | ||||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net investment income, Class A | (1,621,263 | ) | (567,055 | ) | — | — | ||||||||||
Net investment income, Class C | (237,136 | ) | (101,877 | ) | — | — | ||||||||||
Net investment income, Class Y | (2,276,850 | ) | (1,896,650 | ) | — | — | ||||||||||
Net investment income, Institutional Class | (374,834 | ) | (319,492 | ) | — | — | ||||||||||
Net realized gains, Class A | (62,339 | ) | — | (294,311 | ) | (267,450 | ) | |||||||||
Net realized gains, Class C | (13,086 | ) | — | (371,498 | ) | (260,994 | ) | |||||||||
Net realized gains, Class Y | (73,740 | ) | — | (7,406,684 | ) | (3,766,286 | ) | |||||||||
Net realized gains, Institutional Class | (10,433 | ) | — | (1,334,179 | ) | (393,447 | ) | |||||||||
Total Distributions | (4,669,681 | ) | (2,885,074 | ) | (9,406,672 | ) | (4,688,177 | ) | ||||||||
Net Increase (Decrease) from Share Transactions(A) | 280,160,723 | 13,473,288 | 17,575,688 | 87,940,770 | ||||||||||||
Total Increase (Decrease) in Net Assets | 269,936,075 | 11,983,436 | 3,101,528 | 87,823,126 | ||||||||||||
Net Assets | ||||||||||||||||
Beginning of period | 127,206,071 | 115,222,635 | 241,331,706 | 153,508,580 | ||||||||||||
End of period | $ | 397,142,146 | $ | 127,206,071 | $ | 244,433,234 | $ | 241,331,706 | ||||||||
Accumulated Net Investment Income (Loss) | $ | (380,301 | ) | $ | 100,863 | $ | (1,057,855 | ) | $ | (249,346 | ) |
(A) | For details on share transactions by class, see Statements of Changes in Net Assets - Capital Stock Activity in pages 76-78. |
See accompanying Notes to Financial Statements.
70 |
Statements of Changes in Net Assets (Continued)
Touchstone | Touchstone | Touchstone | ||||||||||||||||||||
Emerging Markets | High Yield | Merger Arbitrage | ||||||||||||||||||||
Small Cap Fund | Fund | Fund | ||||||||||||||||||||
For the | For the | For the | ||||||||||||||||||||
Six Months | For the | Six Months | For the | Six Months | For the | |||||||||||||||||
Ended | Year Ended | Ended | Year Ended | Ended | Year Ended | |||||||||||||||||
March 31, 2018 | September 30, | March 31, 2018 | September 30, | March 31, 2018 | September 30, | |||||||||||||||||
(Unaudited) | 2017 | (Unaudited) | 2017 | (Unaudited) | 2017 | |||||||||||||||||
$ | (32,021 | ) | $ | 165,389 | $ | 4,934,357 | $ | 11,322,599 | $ | (738,063 | ) | $ | (1,613,506 | ) | ||||||||
1,053,604 | 1,620,183 | 1,604,705 | 5,678,503 | (725,999 | ) | 10,283,869 | ||||||||||||||||
(45,583 | ) | 480,130 | (8,649,818 | ) | 863,209 | (1,681,969 | ) | (2,312,301 | ) | |||||||||||||
976,000 | 2,265,702 | (2,110,756 | ) | 17,864,311 | (3,146,031 | ) | 6,358,062 | |||||||||||||||
(16,502 | ) | — | (345,535 | ) | (875,914 | ) | — | — | ||||||||||||||
(731 | ) | — | (226,783 | ) | (552,993 | ) | — | — | ||||||||||||||
(75,393 | ) | — | (1,494,033 | ) | (4,073,517 | ) | — | — | ||||||||||||||
(11,410 | ) | — | (2,684,301 | ) | (5,613,771 | ) | — | — | ||||||||||||||
— | — | — | — | (683,179 | ) | (431,396 | ) | |||||||||||||||
— | — | — | — | (605,164 | ) | (416,865 | ) | |||||||||||||||
— | — | — | — | (4,909,189 | ) | (2,373,169 | ) | |||||||||||||||
— | — | — | — | (3,416,906 | ) | (2,024,092 | ) | |||||||||||||||
(104,036 | ) | — | (4,750,652 | ) | (11,116,195 | ) | (9,614,438 | ) | (5,245,522 | ) | ||||||||||||
(1,738,479 | ) | 2,586,750 | (17,273,888 | ) | (5,232,555 | ) | (13,820,416 | ) | 20,805,545 | |||||||||||||
(866,515 | ) | 4,852,452 | (24,135,296 | ) | 1,515,561 | (26,580,885 | ) | 21,918,085 | ||||||||||||||
13,604,097 | 8,751,645 | 217,888,670 | 216,373,109 | 214,679,923 | 192,761,838 | |||||||||||||||||
$ | 12,737,582 | $ | 13,604,097 | $ | 193,753,374 | $ | 217,888,670 | $ | 188,099,038 | $ | 214,679,923 | |||||||||||
$ | (97,121 | ) | $ | 38,936 | $ | 667,994 | $ | 484,289 | $ | (1,035,237 | ) | $ | (297,174 | ) |
71 |
Statements of Changes in Net Assets (Continued)
Touchstone | Touchstone | |||||||||||||||
Mid Cap | Mid Cap | |||||||||||||||
Fund | Value Fund | |||||||||||||||
For the | For the | |||||||||||||||
Six Months | For the | Six Months | For the | |||||||||||||
Ended | Year Ended | Ended | Year Ended | |||||||||||||
March 31, 2018 | September 30, | March 31, 2018 | September 30, | |||||||||||||
(Unaudited) | 2017 | (Unaudited) | 2017 | |||||||||||||
From Operations | ||||||||||||||||
Net investment income (loss) | $ | 2,040,055 | $ | 519,789 | $ | 2,101,697 | $ | 2,845,547 | ||||||||
Net realized gains (losses) on investments | 89,873,359 | 28,922,903 | 19,902,087 | 39,280,159 | ||||||||||||
Net change in unrealized appreciation (depreciation) on investments | (31,599,861 | ) | 92,701,133 | (35,231,289 | ) | 39,673,618 | ||||||||||
Change in Net Assets from Operations | 60,313,553 | 122,143,825 | (13,227,505 | ) | 81,799,324 | |||||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net investment income, Class A | — | (156,233 | ) | (24,216 | ) | (31,801 | ) | |||||||||
Net investment income, Class C | — | — | — | — | ||||||||||||
Net investment income, Class Y | (890,491 | ) | (2,919,041 | ) | (854,589 | ) | (1,318,968 | ) | ||||||||
Net investment income, Class Z | — | (49,552 | ) | — | — | |||||||||||
Net investment income, Institutional Class | (252,288 | ) | (569,047 | ) | (1,149,758 | ) | (1,494,495 | ) | ||||||||
Net realized gains, Class A | (332,156 | ) | — | (1,172,178 | ) | (721,984 | ) | |||||||||
Net realized gains, Class C | (594,785 | ) | — | (661,135 | ) | (214,768 | ) | |||||||||
Net realized gains, Class Y | (5,676,246 | ) | — | (19,579,694 | ) | (10,153,339 | ) | |||||||||
Net realized gains, Class Z | (194,569 | ) | — | — | — | |||||||||||
Net realized gains, Institutional Class | (1,143,430 | ) | — | (20,669,242 | ) | (7,439,636 | ) | |||||||||
Total Distributions | (9,083,965 | ) | (3,693,873 | ) | (44,110,812 | ) | (21,374,991 | ) | ||||||||
Net Increase (Decrease) from Share Transactions(A) | (3,442,205 | ) | (27,506,901 | ) | 92,256,988 | 123,474,421 | ||||||||||
Total Increase (Decrease) in Net Assets | 47,787,383 | 90,943,051 | 34,918,671 | 183,898,754 | ||||||||||||
Net Assets | ||||||||||||||||
Beginning of period | 776,958,074 | 686,015,023 | 688,820,781 | 504,922,027 | ||||||||||||
End of period | $ | 824,745,457 | $ | 776,958,074 | $ | 723,739,452 | $ | 688,820,781 | ||||||||
Accumulated Net Investment Income (Loss) | $ | 1,375,052 | $ | 477,776 | $ | 259,755 | $ | 186,621 |
(A) | For details on share transactions by class, see Statements of Changes in Net Assets - Capital Stock Activity on pages 78-80. |
See accompanying Notes to Financial Statements.
72 |
Statements of Changes in Net Assets (Continued)
Touchstone | ||||||||||||||||||||||
Touchstone | Sands Capital | Touchstone | ||||||||||||||||||||
Premium Yield | Select Growth | Small Cap | ||||||||||||||||||||
Equity Fund | Fund | Fund | ||||||||||||||||||||
For the | For the | For the | ||||||||||||||||||||
Six Months | For the | Six Months | For the | Six Months | For the | |||||||||||||||||
Ended | Year Ended | Ended | Year Ended | Ended | Year Ended | |||||||||||||||||
March 31, 2018 | September 30, | March 31, 2018 | September 30, | March 31, 2018 | September 30, | |||||||||||||||||
(Unaudited) | 2017 | (Unaudited) | 2017 | (Unaudited) | 2017 | |||||||||||||||||
$ | 1,056,819 | $ | 3,684,198 | $ | (13,446,800 | ) | $ | (20,690,299 | ) | $ | 4,068,478 | $ | 1,214,590 | |||||||||
5,174,296 | 5,512,271 | 160,083,488 | 603,132,169 | 26,947,793 | 95,404,969 | |||||||||||||||||
(3,293,797 | ) | 3,897,864 | 172,427,210 | (168,487,741 | ) | (22,923,725 | ) | (58,514,550 | ) | |||||||||||||
2,937,318 | 13,094,333 | 319,063,898 | 413,954,129 | 8,092,546 | 38,105,009 | |||||||||||||||||
(296,661 | ) | (642,807 | ) | — | — | (255,075 | ) | — | ||||||||||||||
(193,832 | ) | (462,088 | ) | — | — | (110,390 | ) | — | ||||||||||||||
(1,086,726 | ) | (2,593,310 | ) | — | — | (1,820,261 | ) | (856,969 | ) | |||||||||||||
— | — | — | — | — | — | |||||||||||||||||
— | — | — | — | (2,806,519 | ) | (996,101 | ) | |||||||||||||||
(472,039 | ) | — | (17,654,139 | ) | (15,772,640 | ) | (1,948,328 | ) | — | |||||||||||||
(419,726 | ) | — | (15,225,600 | ) | (13,604,302 | ) | (1,494,950 | ) | — | |||||||||||||
(1,489,304 | ) | — | (335,076,764 | ) | (243,534,116 | ) | (13,539,198 | ) | — | |||||||||||||
— | — | (108,517,175 | ) | (93,415,838 | ) | — | — | |||||||||||||||
— | — | — | — | (17,227,660 | ) | — | ||||||||||||||||
(3,958,288 | ) | (3,698,205 | ) | (476,473,678 | ) | (366,326,896 | ) | (39,202,381 | ) | (1,853,070 | ) | |||||||||||
(9,284,419 | ) | (41,225,090 | ) | 168,218,981 | (789,883,325 | ) | (33,105,629 | ) | (410,214,463 | ) | ||||||||||||
(10,305,389 | ) | (31,828,962 | ) | 10,809,201 | (742,256,092 | ) | (64,215,464 | ) | (373,962,524 | ) | ||||||||||||
120,812,196 | 152,641,158 | 2,495,781,513 | 3,238,037,605 | 229,556,923 | 603,519,447 | |||||||||||||||||
$ | 110,506,807 | $ | 120,812,196 | $ | 2,506,590,714 | $ | 2,495,781,513 | $ | 165,341,459 | $ | 229,556,923 | |||||||||||
$ | (237,971 | ) | $ | 282,429 | $ | (25,616,654 | ) | $ | (12,169,854 | ) | $ | 5,835 | $ | 929,602 |
73 |
Statements of Changes in Net Assets (Continued)
Touchstone | Touchstone | |||||||||||||||
Small Cap | Total Return | |||||||||||||||
Value Fund | Bond Fund | |||||||||||||||
For the | For the | |||||||||||||||
Six Months | For the | Six Months | For the | |||||||||||||
Ended | Year Ended | Ended | Year Ended | |||||||||||||
March 31, 2018 | September 30, | March 31, 2018 | September 30, | |||||||||||||
(Unaudited) | 2017 | (Unaudited) | 2017 | |||||||||||||
From Operations | ||||||||||||||||
Net investment income | $ | 94,625 | $ | 118,428 | $ | 3,551,882 | $ | 5,372,324 | ||||||||
Net realized gains (losses) on investments | 3,491,190 | 20,198,408 | 70,335 | (148,821 | ) | |||||||||||
Net change in unrealized appreciation (depreciation) on investments | (5,299,076 | ) | 2,881,276 | (5,531,786 | ) | (4,095,482 | ) | |||||||||
Change in Net Assets from Operations | (1,713,261 | ) | 23,198,112 | (1,909,569 | ) | 1,128,021 | ||||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net investment income, Class A | (2,866 | ) | (125,781 | ) | (70,287 | ) | (181,518 | ) | ||||||||
Net investment income, Class C | — | — | (13,205 | ) | (40,739 | ) | ||||||||||
Net investment income, Class S | — | — | — | — | ||||||||||||
Net investment income, Class Y | (7,635 | ) | (6,170 | ) | (602,752 | ) | (1,072,822 | ) | ||||||||
Net investment income, Class Z | — | — | — | — | ||||||||||||
Net investment income, Institutional Class | (70,544 | ) | (5,476 | ) | (3,394,828 | ) | (5,520,397 | ) | ||||||||
Total Distributions | (81,045 | ) | (137,427 | ) | (4,081,072 | ) | (6,815,476 | ) | ||||||||
Net Increase (Decrease) from Share Transactions(A) | 8,759,276 | (112,703,097 | ) | 44,494,308 | 45,002,768 | |||||||||||
Total Increase (Decrease) in Net Assets | 6,964,970 | (89,642,412 | ) | 38,503,667 | 39,315,313 | |||||||||||
Net Assets | ||||||||||||||||
Beginning of period | 88,634,727 | 178,277,139 | 266,259,186 | 226,943,873 | ||||||||||||
End of period | $ | 95,599,697 | $ | 88,634,727 | $ | 304,762,853 | $ | 266,259,186 | ||||||||
Accumulated Net Investment Income (Loss) | $ | 31,718 | $ | 18,138 | $ | (454,894 | ) | $ | 74,296 |
(A) | For details on share transactions by class, see Statements of Changes in Net Assets - Capital Stock Activity on page 81-82. |
See accompanying Notes to Financial Statements.
74 |
Statements of Changes in Net Assets (Continued)
Touchstone | ||||||
Ultra Short | ||||||
Duration Fixed | ||||||
Income Fund | ||||||
For the | ||||||
Six Months | For the | |||||
Ended | Year Ended | |||||
March 31, 2018 | September 30, | |||||
(Unaudited) | 2017 | |||||
$ | 8,801,052 | $ | 10,092,521 | |||
1,032,751 | (1,954,477 | ) | ||||
(4,874,400 | ) | 1,285,240 | ||||
4,959,403 | 9,423,284 | |||||
(733,020 | ) | (214,947 | ) | |||
(37,081 | ) | (66,973 | ) | |||
(1,138,745 | ) | — | ||||
(2,922,580 | ) | (3,880,242 | ) | |||
(1,871,053 | ) | (3,248,560 | ) | |||
(2,616,840 | ) | (3,471,689 | ) | |||
(9,319,319 | ) | (10,882,411 | ) | |||
196,167,721 | 132,263,146 | |||||
191,807,805 | 130,804,019 | |||||
750,188,671 | 619,384,652 | |||||
$ | 941,996,476 | $ | 750,188,671 | |||
$ | (191,694 | ) | $ | 326,573 |
75 |
Statements of Changes in Net Assets - Capital Stock Activity
Touchstone Active Bond Fund | Touchstone Arbitrage Fund | |||||||||||||||||||||||||||||||
For the Six Months | For the Six Months | |||||||||||||||||||||||||||||||
Ended | For the Year | Ended | For the Year | |||||||||||||||||||||||||||||
March 31, 2018 | Ended | March 31, 2018 | Ended | |||||||||||||||||||||||||||||
(Unaudited) | September 30, 2017 | (Unaudited) | September 30, 2017 | |||||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 779,265 | $ | 8,040,285 | 114,125 | $ | 1,187,727 | 84,162 | $ | 826,329 | 422,923 | $ | 4,310,951 | ||||||||||||||||||||
Proceeds from Shares issued in connection with merger(A) | 15,009,511 | 156,501,270 | — | — | — | — | — | — | ||||||||||||||||||||||||
Reinvestment of distributions | 135,669 | 1,395,109 | 47,971 | 498,530 | 29,857 | 289,907 | 26,086 | 264,509 | ||||||||||||||||||||||||
Cost of Shares redeemed | (2,949,281 | ) | (30,537,905 | ) | (439,482 | ) | (4,579,262 | ) | (322,603 | ) | (3,211,797 | ) | (619,127 | ) | (6,319,297 | ) | ||||||||||||||||
Change from Class A Share Transactions | 12,975,164 | 135,398,759 | (277,386 | ) | (2,893,005 | ) | (208,584 | ) | (2,095,561 | ) | (170,118 | ) | (1,743,837 | ) | ||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 90,172 | 862,902 | 9,487 | 91,456 | 75,858 | 725,126 | 334,745 | 3,344,957 | ||||||||||||||||||||||||
Proceeds from Shares issued in connection with merger(A) | 2,962,276 | 28,556,721 | — | — | — | — | — | — | ||||||||||||||||||||||||
Reinvestment of distributions | 23,077 | 219,445 | 7,547 | 72,561 | 38,807 | 365,174 | 25,833 | 256,269 | ||||||||||||||||||||||||
Cost of Shares redeemed | (583,331 | ) | (5,556,743 | ) | (200,983 | ) | (1,934,055 | ) | (285,572 | ) | (2,714,316 | ) | (264,616 | ) | (2,633,313 | ) | ||||||||||||||||
Change from Class C Share Transactions | 2,492,194 | 24,082,325 | (183,949 | ) | (1,770,038 | ) | (170,907 | ) | (1,624,016 | ) | 95,962 | 967,913 | ||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 3,127,037 | 32,337,546 | 3,351,078 | 34,955,912 | 4,015,270 | 39,886,903 | 9,308,258 | 95,788,312 | ||||||||||||||||||||||||
Proceeds from Shares issued in connection with merger(A) | 12,700,690 | 132,356,634 | — | — | — | — | — | — | ||||||||||||||||||||||||
Reinvestment of distributions | 190,182 | 1,957,067 | 107,675 | 1,119,483 | 752,994 | 7,401,931 | 367,566 | 3,760,202 | ||||||||||||||||||||||||
Cost of Shares redeemed | (5,457,750 | ) | (56,533,109 | ) | (3,074,005 | ) | (31,929,928 | ) | (4,443,791 | ) | (44,355,958 | ) | (4,089,565 | ) | (42,024,784 | ) | ||||||||||||||||
Change from Class Y Share Transactions | 10,560,159 | 110,118,138 | 384,748 | 4,145,467 | 324,473 | 2,932,876 | 5,586,259 | 57,523,730 | ||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 1,328,442 | 13,798,862 | 1,735,083 | 18,084,313 | 3,879,257 | 38,574,015 | 3,879,650 | 39,938,927 | ||||||||||||||||||||||||
Reinvestment of distributions | 12,378 | 127,351 | 5,878 | 61,316 | 128,111 | 1,265,742 | 35,266 | 361,834 | ||||||||||||||||||||||||
Cost of Shares redeemed | (325,974 | ) | (3,364,712 | ) | (398,424 | ) | (4,154,765 | ) | (2,103,722 | ) | (21,477,368 | ) | (882,899 | ) | (9,107,797 | ) | ||||||||||||||||
Change from Institutional Class Share Transactions | 1,014,846 | 10,561,501 | 1,342,537 | 13,990,864 | 1,903,646 | 18,362,389 | 3,032,017 | 31,192,964 | ||||||||||||||||||||||||
Change from Share Transactions | 27,042,363 | $ | 280,160,723 | 1,265,950 | $ | 13,473,288 | 1,848,628 | $ | 17,575,688 | 8,544,120 | $ | 87,940,770 |
(A) See Note 9 in the Notes to Financial Statements.
See accompanying Notes to Financial Statements.
76 |
Statements of Changes in Net Assets - Capital Stock Activity (Continued)
Touchstone Emerging Markets Small Cap Fund | Touchstone High Yield Fund | |||||||||||||||||||||||||||||
For the Six Months | For the Six Months | |||||||||||||||||||||||||||||
Ended | For the Year | Ended | For the Year | |||||||||||||||||||||||||||
March 31, 2018 | Ended | March 31, 2018 | Ended | |||||||||||||||||||||||||||
(Unaudited) | September 30, 2017 | (Unaudited) | September 30, 2017 | |||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||||||||||
34,471 | $ | 402,809 | 215,767 | $ | 2,024,110 | 313,842 | $ | 2,579,154 | 1,151,664 | $ | 9,567,953 | |||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||
1,419 | 16,444 | — | — | 36,272 | 300,898 | 85,856 | 710,212 | |||||||||||||||||||||||
(135,527 | ) | (1,587,829 | ) | (205,112 | ) | (2,064,155 | ) | (541,121 | ) | (4,496,226 | ) | (1,786,930 | ) | (14,793,029 | ) | |||||||||||||||
(99,637 | ) | (1,168,576 | ) | 10,655 | (40,045 | ) | (191,007 | ) | (1,616,174 | ) | (549,410 | ) | (4,514,864 | ) | ||||||||||||||||
13,245 | 149,706 | 12,887 | 124,473 | 32,368 | 270,545 | 145,109 | 1,182,888 | |||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||
64 | 731 | — | — | 22,972 | 190,165 | 55,043 | 454,327 | |||||||||||||||||||||||
(4,630 | ) | (53,466 | ) | (30,291 | ) | (285,757 | ) | (266,800 | ) | (2,209,460 | ) | (649,501 | ) | (5,352,223 | ) | |||||||||||||||
8,679 | 96,971 | (17,404 | ) | (161,284 | ) | (211,460 | ) | (1,748,750 | ) | (449,349 | ) | (3,715,008 | ) | |||||||||||||||||
58,724 | 685,249 | 512,686 | 4,967,925 | 606,263 | 5,187,054 | 3,105,249 | 26,380,378 | |||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||
6,488 | 75,393 | — | — | 156,359 | 1,334,511 | 293,819 | 2,502,707 | |||||||||||||||||||||||
(144,465 | ) | (1,660,018 | ) | (225,475 | ) | (2,208,327 | ) | (2,623,888 | ) | (22,551,617 | ) | (4,853,969 | ) | (41,432,077 | ) | |||||||||||||||
(79,253 | ) | (899,376 | ) | 287,211 | 2,759,598 | (1,861,266 | ) | (16,030,052 | ) | (1,454,901 | ) | (12,548,992 | ) | |||||||||||||||||
21,937 | 249,071 | 6,693 | 64,871 | 1,086,186 | 9,237,858 | 6,630,700 | 55,508,953 | |||||||||||||||||||||||
990 | 11,409 | — | — | 312,536 | 2,663,823 | 628,998 | 5,351,427 | |||||||||||||||||||||||
(2,394 | ) | (27,978 | ) | (3,766 | ) | (36,390 | ) | (1,144,560 | ) | (9,780,593 | ) | (5,329,230 | ) | (45,314,071 | ) | |||||||||||||||
20,533 | 232,502 | 2,927 | 28,481 | 254,162 | 2,121,088 | 1,930,468 | 15,546,309 | |||||||||||||||||||||||
(149,678 | ) | $ | (1,738,479 | ) | 283,389 | $ | 2,586,750 | (2,009,571 | ) | $ | (17,273,888 | ) | (523,192 | ) | $ | (5,232,555 | ) |
77 |
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, 2018 | Ended | March 31, 2018 | Ended | |||||||||||||||||||||||||||||
(Unaudited) | September 30, 2017 | (Unaudited) | September 30, 2017 | |||||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 118,709 | $ | 1,268,277 | 663,943 | $ | 7,189,677 | 94,920 | $ | 3,053,457 | 310,383 | $ | 8,581,092 | ||||||||||||||||||||
Reinvestment of distributions | 59,993 | 620,924 | 35,099 | 378,369 | 9,770 | 312,443 | 5,217 | 141,962 | ||||||||||||||||||||||||
Cost of Shares redeemed | (366,587 | ) | (3,910,239 | ) | (841,352 | ) | (9,106,640 | ) | (192,752 | ) | (6,194,138 | ) | (1,223,230 | ) | (33,868,799 | ) | ||||||||||||||||
Change from Class A Share Transactions | (187,885 | ) | (2,021,038 | ) | (142,310 | ) | (1,538,594 | ) | (88,062 | ) | (2,828,238 | ) | (907,630 | ) | (25,145,745 | ) | ||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 64,107 | 635,482 | 28,884 | 302,799 | 96,759 | 2,937,144 | 295,609 | 7,797,366 | ||||||||||||||||||||||||
Reinvestment of distributions | 61,563 | 605,163 | 40,213 | 416,206 | 16,395 | 497,757 | — | — | ||||||||||||||||||||||||
Cost of Shares redeemed | (194,380 | ) | (1,927,102 | ) | (364,713 | ) | (3,810,386 | ) | (277,252 | ) | (8,473,678 | ) | (724,111 | ) | (19,243,359 | ) | ||||||||||||||||
Change from Class C Share Transactions | (68,710 | ) | (686,457 | ) | (295,616 | ) | (3,091,381 | ) | (164,098 | ) | (5,038,777 | ) | (428,502 | ) | (11,445,993 | ) | ||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 3,185,363 | 33,911,289 | 3,101,270 | 34,159,735 | 3,366,972 | 109,567,428 | 6,812,111 | 193,127,657 | ||||||||||||||||||||||||
Reinvestment of distributions | 464,112 | 4,877,823 | 216,908 | 2,364,301 | 177,867 | 5,749,414 | 75,256 | 2,062,953 | ||||||||||||||||||||||||
Cost of Shares redeemed | (1,600,314 | ) | (17,147,696 | ) | (2,860,614 | ) | (31,743,547 | ) | (3,176,724 | ) | (103,252,322 | ) | (7,194,091 | ) | (204,292,667 | ) | ||||||||||||||||
Change from Class Y Share Transactions | 2,049,161 | 21,641,416 | 457,564 | 4,780,489 | 368,115 | 12,064,520 | (306,724 | ) | (9,102,057 | ) | ||||||||||||||||||||||
Class Z | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | — | — | — | — | 71,029 | 2,283,467 | 248,309 | 6,933,230 | ||||||||||||||||||||||||
Reinvestment of distributions | — | — | — | — | 6,115 | 194,402 | 1,828 | 49,486 | ||||||||||||||||||||||||
Cost of Shares redeemed | — | — | — | — | (100,729 | ) | (3,225,688 | ) | (348,521 | ) | (9,827,195 | ) | ||||||||||||||||||||
Change from Class Z Share Transactions | — | — | — | — | (23,585 | ) | (747,819 | ) | (98,384 | ) | (2,844,479 | ) | ||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 1,149,980 | 12,296,463 | 4,238,661 | 46,907,941 | 212,867 | 6,897,536 | 1,881,647 | 53,915,231 | ||||||||||||||||||||||||
Reinvestment of distributions | 299,282 | 3,163,412 | 164,732 | 1,803,811 | 23,603 | 764,135 | 11,814 | 324,185 | ||||||||||||||||||||||||
Cost of Shares redeemed | (4,384,084 | ) | (48,214,212 | ) | (2,532,066 | ) | (28,056,721 | ) | (442,310 | ) | (14,553,562 | ) | (1,168,557 | ) | (33,208,043 | ) | ||||||||||||||||
Change from Institutional Class Share Transactions | (2,934,822 | ) | (32,754,337 | ) | 1,871,327 | 20,655,031 | (205,840 | ) | (6,891,891 | ) | 724,904 | 21,031,373 | ||||||||||||||||||||
Change from Share Transactions | (1,142,256 | ) | $ | (13,820,416 | ) | 1,890,965 | $ | 20,805,545 | (113,470 | ) | $ | (3,442,205 | ) | (1,016,336 | ) | $ | (27,506,901 | ) |
See accompanying Notes to Financial Statements.
78 |
Statements of Changes in Net Assets - Capital Stock Activity (Continued)
Touchstone Mid Cap Value Fund | Touchstone Premium Yield Equity Fund | |||||||||||||||||||||||||||||
For the Six Months | For the Six Months | |||||||||||||||||||||||||||||
Ended | For the Year | Ended | For the Year | |||||||||||||||||||||||||||
March 31, 2018 | Ended | March 31, 2018 | Ended | |||||||||||||||||||||||||||
(Unaudited) | September 30, 2017 | (Unaudited) | September 30, 2017 | |||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||||||||||
250,963 | $ | 4,847,134 | 701,153 | $ | 12,828,822 | 390,511 | $ | 3,714,669 | 642,872 | $ | 5,805,412 | |||||||||||||||||||
52,600 | 990,176 | 36,952 | 668,472 | 69,854 | 660,535 | 51,326 | 458,763 | |||||||||||||||||||||||
(286,593 | ) | (5,548,508 | ) | (903,403 | ) | (16,632,912 | ) | (1,435,563 | ) | (13,679,611 | ) | (1,346,365 | ) | (12,078,014 | ) | |||||||||||||||
16,970 | 288,802 | (165,298 | ) | (3,135,618 | ) | (975,198 | ) | (9,304,407 | ) | (652,167 | ) | (5,813,839 | ) | |||||||||||||||||
71,808 | 1,347,753 | 412,284 | 7,373,904 | 25,904 | 245,206 | 141,970 | 1,264,192 | |||||||||||||||||||||||
34,727 | 637,944 | 11,309 | 200,962 | 59,807 | 564,472 | 46,771 | 417,141 | |||||||||||||||||||||||
(123,845 | ) | (2,316,045 | ) | (92,951 | ) | (1,692,148 | ) | (289,285 | ) | (2,765,353 | ) | (755,879 | ) | (6,756,321 | ) | |||||||||||||||
(17,310 | ) | (330,348 | ) | 330,642 | 5,882,718 | (203,574 | ) | (1,955,675 | ) | (567,138 | ) | (5,074,988 | ) | |||||||||||||||||
3,580,447 | 68,954,657 | 8,004,954 | 148,753,892 | 1,614,563 | 15,331,110 | 4,322,451 | 38,621,210 | |||||||||||||||||||||||
1,037,659 | 19,625,755 | 615,344 | 11,210,752 | 255,372 | 2,410,074 | 273,255 | 2,434,528 | |||||||||||||||||||||||
(2,684,945 | ) | (51,693,674 | ) | (8,685,917 | ) | (161,204,179 | ) | (1,649,957 | ) | (15,765,521 | ) | (7,945,883 | ) | (71,392,001 | ) | |||||||||||||||
1,933,161 | 36,886,738 | (65,619 | ) | (1,239,535 | ) | 219,978 | 1,975,663 | (3,350,177 | ) | (30,336,263 | ) | |||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||
4,933,679 | 95,216,966 | 10,402,481 | 194,155,853 | — | — | — | — | |||||||||||||||||||||||
884,261 | 16,806,328 | 322,849 | 5,927,128 | — | — | — | — | |||||||||||||||||||||||
(2,978,592 | ) | (56,611,498 | ) | (4,173,196 | ) | (78,116,125 | ) | — | — | — | — | |||||||||||||||||||
2,839,348 | 55,411,796 | 6,552,134 | 121,966,856 | — | — | — | — | |||||||||||||||||||||||
4,772,169 | $ | 92,256,988 | 6,651,859 | $ | 123,474,421 | (958,794 | ) | $ | (9,284,419 | ) | (4,569,482 | ) | $ | (41,225,090 | ) |
79 |
Statements of Changes in Net Assets - Capital Stock Activity (Continued)
Touchstone Sands Capital Select Growth Fund | Touchstone Small Cap Fund | |||||||||||||||||||||||||||||||
For the Six Months | For the Six Months | |||||||||||||||||||||||||||||||
Ended | For the Year | Ended | For the Year | |||||||||||||||||||||||||||||
March 31, 2018 | Ended | March 31, 2018 | Ended | |||||||||||||||||||||||||||||
(Unaudited) | September 30, 2017 | (Unaudited) | September 30, 2017 | |||||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 886,138 | $ | 13,141,195 | 1,212,081 | $ | 17,814,655 | 49,107 | $ | 768,894 | 139,684 | $ | 2,397,730 | ||||||||||||||||||||
Reinvestment of distributions | 901,202 | 12,454,611 | 917,286 | 12,007,271 | 136,257 | 2,061,771 | — | — | ||||||||||||||||||||||||
Cost of Shares redeemed | (1,312,676 | ) | (20,271,223 | ) | (5,277,157 | ) | (77,763,400 | ) | (204,763 | ) | (3,254,144 | ) | (1,773,199 | ) | (30,587,056 | ) | ||||||||||||||||
Change from Class A Share Transactions | 474,664 | 5,324,583 | (3,147,790 | ) | (47,941,474 | ) | (19,399 | ) | (423,479 | ) | (1,633,515 | ) | (28,189,326 | ) | ||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 252,113 | 3,379,408 | 361,269 | 4,654,639 | 18,749 | 279,252 | 7,490 | 124,311 | ||||||||||||||||||||||||
Reinvestment of distributions | 1,021,593 | 12,974,236 | 848,904 | 10,466,987 | 99,622 | 1,426,382 | — | — | ||||||||||||||||||||||||
Cost of Shares redeemed | (690,619 | ) | (9,946,419 | ) | (3,762,317 | ) | (52,025,885 | ) | (171,291 | ) | (2,612,993 | ) | (417,241 | ) | (6,781,423 | ) | ||||||||||||||||
Change from Class C Share Transactions | 583,087 | 6,407,225 | (2,552,144 | ) | (36,904,259 | ) | (52,920 | ) | (907,359 | ) | (409,751 | ) | (6,657,112 | ) | ||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 10,048,465 | 158,638,510 | 26,578,930 | 413,169,218 | 455,741 | 7,648,091 | 1,799,187 | 30,786,320 | ||||||||||||||||||||||||
Reinvestment of distributions | 18,105,846 | 263,802,146 | 13,712,898 | 186,906,606 | 924,185 | 14,180,457 | 46,428 | 813,579 | ||||||||||||||||||||||||
Cost of Shares redeemed | (18,473,540 | ) | (295,875,440 | ) | (69,920,725 | ) | (1,075,067,986 | ) | (2,139,276 | ) | (34,040,834 | ) | (15,062,183 | ) | (258,695,632 | ) | ||||||||||||||||
Change from Class Y Share Transactions | 9,680,771 | 126,565,216 | (29,628,897 | ) | (474,992,162 | ) | (759,350 | ) | (12,212,286 | ) | (13,216,568 | ) | (227,095,733 | ) | ||||||||||||||||||
Class Z | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 1,571,868 | 24,218,489 | 2,878,806 | 42,519,038 | — | — | — | — | ||||||||||||||||||||||||
Reinvestment of distributions | 7,798,859 | 107,858,220 | 7,085,965 | 92,826,102 | — | — | — | — | ||||||||||||||||||||||||
Cost of Shares redeemed | (6,655,814 | ) | (102,154,752 | ) | (24,567,869 | ) | (365,390,570 | ) | — | — | — | — | ||||||||||||||||||||
Change from Class Z | ||||||||||||||||||||||||||||||||
Share Transactions | 2,714,913 | 29,921,957 | (14,603,098 | ) | (230,045,430 | ) | — | — | — | — | ||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | — | — | — | — | 590,153 | 9,544,609 | 2,359,283 | 40,385,355 | ||||||||||||||||||||||||
Reinvestment of distributions | — | — | — | — | 937,971 | 14,378,877 | 21,057 | 368,294 | ||||||||||||||||||||||||
Cost of Shares redeemed | — | — | — | — | (2,603,075 | ) | (43,485,991 | ) | (11,069,857 | ) | (189,025,941 | ) | ||||||||||||||||||||
Change from Institutional Class Share Transactions | — | — | — | — | (1,074,951 | ) | (19,562,505 | ) | (8,689,517 | ) | (148,272,292 | ) | ||||||||||||||||||||
Change from Share Transactions | 13,453,435 | $ | 168,218,981 | (49,931,929 | ) | $ | (789,883,325 | ) | (1,906,620 | ) | $ | (33,105,629 | ) | (23,949,351 | ) | $ | (410,214,463 | ) |
See accompanying Notes to Financial Statements.
80 |
Statements of Changes in Net Assets - Capital Stock Activity (Continued)
Touchstone Small Cap Value Fund | Touchstone Total Return Bond Fund | |||||||||||||||||||||||||||||
For the Six Months | For the Six Months | |||||||||||||||||||||||||||||
Ended | For the Year | Ended | For the Year | |||||||||||||||||||||||||||
March 31, 2018 | Ended | March 31, 2018 | Ended | |||||||||||||||||||||||||||
(Unaudited) | September 30, 2017 | (Unaudited) | September 30, 2017 | |||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||||||||||
216,709 | $ | 5,870,318 | 6,181,616 | $ | 151,720,611 | 191,912 | $ | 1,923,655 | 142,982 | $ | 1,446,473 | |||||||||||||||||||
105 | 2,656 | 4,698 | 117,711 | 5,831 | 58,378 | 10,803 | 109,086 | |||||||||||||||||||||||
(264,996 | ) | (6,990,882 | ) | (9,997,487 | ) | (247,642,110 | ) | (85,051 | ) | (854,901 | ) | (479,501 | ) | (4,837,636 | ) | |||||||||||||||
(48,182 | ) | (1,117,908 | ) | (3,811,173 | ) | (95,803,788 | ) | 112,692 | 1,127,132 | (325,716 | ) | (3,282,077 | ) | |||||||||||||||||
8,539 | 217,939 | 5,318 | 130,606 | 7,210 | 71,373 | 21,651 | 218,960 | |||||||||||||||||||||||
— | — | — | — | 878 | 8,796 | 2,929 | 29,526 | |||||||||||||||||||||||
(14,147 | ) | (375,493 | ) | (20,255 | ) | (492,379 | ) | (64,824 | ) | (648,319 | ) | (110,674 | ) | (1,113,559 | ) | |||||||||||||||
(5,608 | ) | (157,554 | ) | (14,937 | ) | (361,773 | ) | (56,736 | ) | (568,150 | ) | (86,094 | ) | (865,073 | ) | |||||||||||||||
19,510 | 513,587 | 38,975 | 970,075 | 1,660,743 | 16,666,238 | 1,523,187 | 15,441,533 | |||||||||||||||||||||||
292 | 7,486 | 168 | 4,219 | 56,377 | 564,626 | 86,872 | 878,381 | |||||||||||||||||||||||
(22,103 | ) | (578,019 | ) | (69,439 | ) | (1,736,564 | ) | (419,909 | ) | (4,210,697 | ) | (2,703,076 | ) | (27,107,007 | ) | |||||||||||||||
(2,301 | ) | (56,946 | ) | (30,296 | ) | (762,270 | ) | 1,297,211 | 13,020,167 | (1,093,017 | ) | (10,787,093 | ) | |||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||
409,071 | 10,829,879 | 225,874 | 5,617,330 | 4,656,752 | 46,710,695 | 10,005,361 | 101,401,166 | |||||||||||||||||||||||
779 | 20,041 | 218 | 5,475 | 296,250 | 2,970,759 | 501,136 | 5,066,898 | |||||||||||||||||||||||
(29,302 | ) | (758,236 | ) | (999,989 | ) | (21,398,071 | ) | (1,869,622 | ) | (18,766,295 | ) | (4,601,840 | ) | (46,531,053 | ) | |||||||||||||||
380,548 | 10,091,684 | (773,897 | ) | (15,775,266 | ) | 3,083,380 | 30,915,159 | 5,904,657 | 59,937,011 | |||||||||||||||||||||
324,457 | $ | 8,759,276 | (4,630,303 | ) | $ | (112,703,097 | ) | 4,436,547 | $ | 44,494,308 | 4,399,830 | $ | 45,002,768 |
81 |
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, 2018 | Ended | |||||||||||||||
(Unaudited) | September 30, 2017 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Class A | ||||||||||||||||
Proceeds from Shares issued | 1,234,648 | $ | 11,453,686 | 1,661,765 | $ | 15,471,923 | ||||||||||
Proceeds from Shares issued in connection with merger(A) | 8,852,517 | 82,262,174 | — | — | ||||||||||||
Reinvestment of distributions | 71,110 | 659,122 | 20,548 | 191,248 | ||||||||||||
Cost of Shares redeemed | (2,475,068 | ) | (22,954,679 | ) | (1,986,378 | ) | (18,488,192 | ) | ||||||||
Change from Class A Share Transactions | 7,683,207 | 71,420,303 | (304,065 | ) | (2,825,021 | ) | ||||||||||
Class C | ||||||||||||||||
Proceeds from Shares issued | 116,163 | 1,077,643 | 218,081 | 2,030,199 | ||||||||||||
Reinvestment of distributions | 3,070 | 28,470 | 5,052 | 47,032 | ||||||||||||
Cost of Shares redeemed | (143,797 | ) | (1,334,353 | ) | (463,934 | ) | (4,319,053 | ) | ||||||||
Change from Class C Share Transactions | (24,564 | ) | (228,240 | ) | (240,801 | ) | (2,241,822 | ) | ||||||||
Class S | ||||||||||||||||
Proceeds from Shares issued | 962,953 | 8,923,964 | — | — | ||||||||||||
Proceeds from Shares issued in connection with merger(A) | 18,778,658 | 174,475,987 | — | — | ||||||||||||
Reinvestment of distributions | 119,437 | 1,106,818 | — | — | ||||||||||||
Cost of Shares redeemed | (2,778,464 | ) | (25,754,256 | ) | — | — | ||||||||||
Change from Class S Share Transactions | 17,082,584 | 158,752,513 | — | — | ||||||||||||
Class Y | ||||||||||||||||
Proceeds from Shares issued | 8,391,635 | 77,832,505 | 16,443,475 | 153,020,422 | ||||||||||||
Proceeds from Shares issued in connection with merger(A) | 1,675,485 | 15,567,307 | — | — | ||||||||||||
Reinvestment of distributions | 216,026 | 2,002,875 | 239,815 | 2,231,627 | ||||||||||||
Cost of Shares redeemed | (9,131,398 | ) | (84,654,336 | ) | (10,766,225 | ) | (100,223,831 | ) | ||||||||
Change from Class Y Share Transactions | 1,151,748 | 10,748,351 | 5,917,065 | 55,028,218 | ||||||||||||
Class Z | ||||||||||||||||
Proceeds from Shares issued | 3,341,553 | 31,001,428 | 8,854,432 | 82,424,899 | ||||||||||||
Reinvestment of distributions | 196,062 | 1,818,234 | 340,928 | 3,172,968 | ||||||||||||
Cost of Shares redeemed | (6,571,898 | ) | (60,943,541 | ) | (12,733,081 | ) | (118,534,540 | ) | ||||||||
Change from Class Z Share Transactions | (3,034,283 | ) | (28,123,879 | ) | (3,537,721 | ) | (32,936,673 | ) | ||||||||
Institutional Class | ||||||||||||||||
Proceeds from Shares issued | 7,037,658 | 65,230,117 | 26,763,928 | 248,905,046 | ||||||||||||
Reinvestment of distributions | 259,331 | 2,402,870 | 311,948 | 2,900,582 | ||||||||||||
Cost of Shares redeemed | (9,062,395 | ) | (84,034,314 | ) | (14,682,093 | ) | (136,567,184 | ) | ||||||||
Change from Institutional Class Share Transactions | (1,765,406 | ) | (16,401,327 | ) | 12,393,783 | 115,238,444 | ||||||||||
Change from Share Transactions | 21,093,286 | $ | 196,167,721 | 14,228,261 | $ | 132,263,146 |
(A) | See Note 9 in the Notes to Financial Statements. |
See accompanying Notes to Financial Statements.
82 |
Touchstone Active Bond Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 10.47 | $ | 10.59 | $ | 10.20 | $ | 10.45 | $ | 10.33 | $ | 10.89 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.10 | 0.24 | 0.26 | 0.26 | 0.32 | 0.30 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.27 | ) | (0.11 | ) | 0.43 | (0.23 | ) | 0.13 | (0.38 | ) | ||||||||||||||
Total from investment operations | (0.17 | ) | 0.13 | 0.69 | 0.03 | 0.45 | (0.08 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.12 | ) | (0.25 | ) | (0.30 | ) | (0.28 | ) | (0.33 | ) | (0.36 | ) | ||||||||||||
Realized capital gains | — | (A) | — | — | — | — | (0.12 | ) | ||||||||||||||||
Total distributions | (0.12 | ) | (0.25 | ) | (0.30 | ) | (0.28 | ) | (0.33 | ) | (0.48 | ) | ||||||||||||
Net asset value at end of period | $ | 10.18 | $ | 10.47 | $ | 10.59 | $ | 10.20 | $ | 10.45 | $ | 10.33 | ||||||||||||
Total return(B) | (1.60 | %)(C) | 1.26 | % | 6.90 | % | 0.24 | % | 4.41 | % | (0.85 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 153,654 | $ | 22,117 | $ | 25,324 | $ | 29,135 | $ | 28,920 | $ | 34,635 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.90 | %(D) | 0.90 | % | 0.90 | % | 0.90 | % | 0.86 | % | 0.83 | % | ||||||||||||
Gross expenses | 1.04 | %(D) | 1.18 | % | 1.19 | % | 1.19 | % | 1.28 | % | 1.18 | % | ||||||||||||
Net investment income | 2.09 | %(D) | 2.33 | % | 2.52 | % | 2.50 | % | 2.99 | % | 2.94 | % | ||||||||||||
Portfolio turnover rate | 239 | %(C)(E) | 496 | % | 590 | % | 349 | % | 281 | % | 353 | % |
Touchstone Active Bond Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 9.68 | $ | 9.82 | $ | 9.48 | $ | 9.73 | $ | 9.64 | $ | 10.20 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.12 | 0.14 | 0.16 | 0.17 | 0.21 | 0.20 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.31 | ) | (0.10 | ) | 0.41 | (0.21 | ) | 0.14 | (0.35 | ) | ||||||||||||||
Total from investment operations | (0.19 | ) | 0.04 | 0.57 | (0.04 | ) | 0.35 | (0.15 | ) | |||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.08 | ) | (0.18 | ) | (0.23 | ) | (0.21 | ) | (0.26 | ) | (0.29 | ) | ||||||||||||
Realized capital gains | — | (A) | — | — | — | — | (0.12 | ) | ||||||||||||||||
Total distributions | (0.08 | ) | (0.18 | ) | (0.23 | ) | (0.21 | ) | (0.26 | ) | (0.41 | ) | ||||||||||||
Net asset value at end of period | $ | 9.41 | $ | 9.68 | $ | 9.82 | $ | 9.48 | $ | 9.73 | $ | 9.64 | ||||||||||||
Total return(B) | (1.88 | %)(C) | 0.52 | % | 6.03 | % | (0.47 | %) | 3.65 | % | (1.55 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 27,954 | $ | 4,642 | $ | 6,513 | $ | 6,946 | $ | 8,725 | $ | 11,337 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.65 | %(D) | 1.65 | % | 1.65 | % | 1.65 | % | 1.61 | % | 1.58 | % | ||||||||||||
Gross expenses | 1.86 | %(D) | 2.18 | % | 2.09 | % | 2.06 | % | 2.15 | % | 1.98 | % | ||||||||||||
Net investment income | 1.34 | %(D) | 1.58 | % | 1.77 | % | 1.75 | % | 2.24 | % | 2.19 | % | ||||||||||||
Portfolio turnover rate | 239 | %(C)(E) | 496 | % | 590 | % | 349 | % | 281 | % | 353 | % |
(A) | Less than $0.005 per share. |
(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 securities of the Sentinel Government Securities Fund and Sentinel Total Return Bond Fund acquired on October 27, 2017 (See Note 9 in the Notes to Financial Statements). If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
83 |
Financial Highlights (Continued)
Touchstone Active Bond Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 10.46 | $ | 10.59 | $ | 10.20 | $ | 10.45 | $ | 10.32 | $ | 10.89 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.12 | 0.27 | 0.29 | 0.29 | 0.34 | 0.33 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.27 | ) | (0.12 | ) | 0.43 | (0.24 | ) | 0.15 | (0.39 | ) | ||||||||||||||
Total from investment operations | (0.15 | ) | 0.15 | 0.72 | 0.05 | 0.49 | (0.06 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.13 | ) | (0.28 | ) | (0.33 | ) | (0.30 | ) | (0.36 | ) | (0.39 | ) | ||||||||||||
Realized capital gains | — | (A) | — | — | — | — | (0.12 | ) | ||||||||||||||||
Total distributions | (0.13 | ) | (0.28 | ) | (0.33 | ) | (0.30 | ) | (0.36 | ) | (0.51 | ) | ||||||||||||
Net asset value at end of period | $ | 10.18 | $ | 10.46 | $ | 10.59 | $ | 10.20 | $ | 10.45 | $ | 10.32 | ||||||||||||
Total return | (1.37 | %)(B) | 1.43 | % | 7.18 | % | 0.49 | % | 4.78 | % | (0.60 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 184,972 | $ | 79,648 | $ | 76,544 | $ | 57,394 | $ | 59,764 | $ | 58,944 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.65 | %(C) | 0.65 | % | 0.65 | % | 0.65 | % | 0.61 | % | 0.58 | % | ||||||||||||
Gross expenses | 0.78 | %(C) | 0.86 | % | 0.90 | % | 0.91 | % | 0.95 | % | 0.88 | % | ||||||||||||
Net investment income | 2.34 | %(C) | 2.58 | % | 2.77 | % | 2.75 | % | 3.24 | % | 3.19 | % | ||||||||||||
Portfolio turnover rate | 239 | %(B)(D) | 496 | % | 590 | % | 349 | % | 281 | % | 353 | % |
Touchstone Active Bond Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 10.46 | $ | 10.58 | $ | 10.19 | $ | 10.44 | $ | 10.32 | $ | 10.89 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.12 | 0.25 | 0.33 | 0.30 | 0.35 | 0.34 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.27 | ) | (0.09 | ) | 0.40 | (0.24 | ) | 0.14 | (0.39 | ) | ||||||||||||||
Total from investment operations | (0.15 | ) | 0.16 | 0.73 | 0.06 | 0.49 | (0.05 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.14 | ) | (0.28 | ) | (0.34 | ) | (0.31 | ) | (0.37 | ) | (0.40 | ) | ||||||||||||
Realized capital gains | — | (A) | — | — | — | — | (0.12 | ) | ||||||||||||||||
Total distributions | (0.14 | ) | (0.28 | ) | (0.34 | ) | (0.31 | ) | (0.37 | ) | (0.52 | ) | ||||||||||||
Net asset value at end of period | $ | 10.17 | $ | 10.46 | $ | 10.58 | $ | 10.19 | $ | 10.44 | $ | 10.32 | ||||||||||||
Total return | (1.43 | %)(B) | 1.61 | % | 7.27 | % | 0.57 | % | 4.76 | % | (0.52 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 30,562 | $ | 20,800 | $ | 6,841 | $ | 6,788 | $ | 7,393 | $ | 7,606 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.57 | %(C) | 0.57 | % | 0.57 | % | 0.57 | % | 0.53 | % | 0.50 | % | ||||||||||||
Gross expenses | 0.68 | %(C) | 0.87 | % | 1.00 | % | 0.95 | % | 1.09 | % | 0.95 | % | ||||||||||||
Net investment income | 2.42 | %(C) | 2.66 | % | 2.85 | % | 2.83 | % | 3.32 | % | 3.27 | % | ||||||||||||
Portfolio turnover rate | 239 | %(B)(D) | 496 | % | 590 | % | 349 | % | 281 | % | 353 | % |
(A) | Less than $0.005 per share. |
(B) | Not annualized. |
(C) | Annualized. |
(D) | Portfolio turnover excludes the purchases and sales of securities of the Sentinel Government Securities Fund and Sentinel Total Return Bond Fund acquired on October 27, 2017 (See Note 9 in the Notes to Financial Statements). If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
84 |
Financial Highlights (Continued)
Touchstone Arbitrage Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||
Ended | ||||||||||||||||||||
March 31, | ||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014(A) | ||||||||||||||||
Net asset value at beginning of period | $ | 10.24 | $ | 10.31 | $ | 9.93 | $ | 9.87 | $ | 10.00 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment loss(B) | (0.05 | ) | (0.12 | ) | (0.11 | ) | (0.08 | ) | (0.10 | ) | ||||||||||
Net realized and unrealized gains (losses) on investments | (0.17 | ) | 0.34 | 0.66 | 0.16 | (0.03 | ) | |||||||||||||
Total from investment operations | (0.22 | ) | 0.22 | 0.55 | 0.08 | (0.13 | ) | |||||||||||||
Distributions from: | ||||||||||||||||||||
Net investment income | — | — | (0.02 | ) | — | — | ||||||||||||||
Realized capital gains | (0.44 | ) | (0.29 | ) | (0.15 | ) | (0.02 | ) | — | |||||||||||
Total distributions | (0.44 | ) | (0.29 | ) | (0.17 | ) | (0.02 | ) | — | |||||||||||
Net asset value at end of period | $ | 9.58 | $ | 10.24 | $ | 10.31 | $ | 9.93 | $ | 9.87 | ||||||||||
Total return(C) | (2.20 | %)(D) | 2.20 | % | 5.61 | % | 0.77 | % | (1.30 | %) | ||||||||||
Ratios and supplemental data: | ||||||||||||||||||||
Net assets at end of period (000's) | $ | 5,663 | $ | 8,186 | $ | 10,003 | $ | 20,672 | $ | 22,725 | ||||||||||
Ratio to average net assets: | ||||||||||||||||||||
Net expenses (including dividend and interest expense on securities sold short)(E) | 1.89 | %(F) | 2.70 | % | 2.80 | % | 2.42 | % | 2.51 | % | ||||||||||
Gross expenses (including dividend and interest expense on securities sold short)(G) | 2.21 | %(F) | 2.91 | % | 3.03 | % | 2.44 | % | 2.51 | % | ||||||||||
Net investment loss | (0.99 | %)(F) | (1.20 | %) | (1.06 | %) | (0.83 | %) | (1.01 | %) | ||||||||||
Portfolio turnover rate | 127 | %(D) | 358 | % | 451 | % | 276 | % | 293 | % |
(A) | Represents the period from commencement of operations (October 1, 2013) through September 30, 2014. |
(B) | The net investment loss per share was 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) | The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short was 1.68%, 1.68%, 1.68%, 1.68% and 1.67% for the six months ended March 31, 2018 and years ended September 30, 2017, 2016, 2015 and 2014, respectively. |
(F) | Annualized. |
(G) | The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short was 2.00%, 1.89%, 1.91%, 1.70% and 1.67% for the six months ended March 31, 2018 and years ended September 30, 2017, 2016, 2015 and 2014, respectively. |
See accompanying Notes to Financial Statements.
85 |
Financial Highlights (Continued)
Touchstone Arbitrage Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||
Ended | ||||||||||||||||||||
March 31, | ||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014(A) | ||||||||||||||||
Net asset value at beginning of period | $ | 9.95 | $ | 10.11 | $ | 9.80 | $ | 9.82 | $ | 10.00 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investments loss(B) | (0.08 | ) | (0.19 | ) | (0.18 | ) | (0.15 | ) | (0.17 | ) | ||||||||||
Net realized and unrealized gains (losses) on investments | (0.16 | ) | 0.32 | 0.65 | 0.15 | (0.01 | ) | |||||||||||||
Total from investment operations | (0.24 | ) | 0.13 | 0.47 | — | (0.18 | ) | |||||||||||||
Distributions from: | ||||||||||||||||||||
Net investment income | — | — | (0.01 | ) | — | — | ||||||||||||||
Realized capital gains | (0.44 | ) | (0.29 | ) | (0.15 | ) | (0.02 | ) | — | |||||||||||
Total distributions | (0.44 | ) | (0.29 | ) | (0.16 | ) | (0.02 | ) | — | |||||||||||
Net asset value at end of period | $ | 9.27 | $ | 9.95 | $ | 10.11 | $ | 9.80 | $ | 9.82 | ||||||||||
Total return(C) | (2.47 | %)(D) | 1.33 | % | 4.81 | % | (0.05 | %) | (1.80 | %) | ||||||||||
Ratios and supplemental data: | ||||||||||||||||||||
Net assets at end of period (000's) | $ | 6,574 | $ | 8,762 | $ | 7,930 | $ | 8,694 | $ | 11,113 | ||||||||||
Ratio to average net assets: | ||||||||||||||||||||
Net expenses (including dividend and interest expense on securities sold short)(E) | 2.64 | %(F) | 3.45 | % | 3.55 | % | 3.14 | % | 3.27 | % | ||||||||||
Gross expenses (including dividend and interest expense on securities sold short)(G) | 2.78 | %(F) | 3.60 | % | 3.62 | % | 3.14 | % | 3.29 | % | ||||||||||
Net investment loss | (1.74 | %)(F) | (1.95 | %) | (1.81 | %) | (1.55 | %) | (1.77 | %) | ||||||||||
Portfolio turnover rate | 127 | %(D) | 358 | % | 451 | % | 276 | % | 293 | % |
(A) | Represents the period from commencement of operations (October 1, 2013) through September 30, 2014. |
(B) | The net investment loss per share was 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) | The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short was 2.43%, 2.43%, 2.43%, 2.40% and 2.43% for the six months ended March 31, 2018 and years ended September 30, 2017, 2016, 2015 and 2014, respectively. |
(F) | Annualized. |
(G) | The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short was 2.57%, 2.58%, 2.50%, 2.40% and 2.45% for the six months ended March 31, 2018 and years ended September 30, 2017, 2016, 2015 and 2014, respectively. |
See accompanying Notes to Financial Statements.
86 |
Financial Highlights (Continued)
Touchstone Arbitrage Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||
Ended | ||||||||||||||||||||
March 31, | ||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014(A) | ||||||||||||||||
Net asset value at beginning of period | $ | 10.35 | $ | 10.40 | $ | 9.99 | $ | 9.91 | $ | 10.00 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment loss(B) | (0.03 | ) | (0.09 | ) | (0.08 | ) | (0.05 | ) | (0.07 | ) | ||||||||||
Net realized and unrealized gains (losses) on investments | (0.17 | ) | 0.33 | 0.67 | 0.15 | (0.02 | ) | |||||||||||||
Total from investment operations | (0.20 | ) | 0.24 | 0.59 | 0.10 | (0.09 | ) | |||||||||||||
Distributions from: | ||||||||||||||||||||
Net investment income | — | — | (0.03 | ) | — | — | ||||||||||||||
Realized capital gains | (0.44 | ) | (0.29 | ) | (0.15 | ) | (0.02 | ) | — | |||||||||||
Total distributions | (0.44 | ) | (0.29 | ) | (0.18 | ) | (0.02 | ) | — | |||||||||||
Net asset value at end of period | $ | 9.71 | $ | 10.35 | $ | 10.40 | $ | 9.99 | $ | 9.91 | ||||||||||
Total return | (1.98 | %)(C) | 2.38 | % | 6.00 | % | 0.97 | % | (0.90 | %) | ||||||||||
Ratios and supplemental data: | ||||||||||||||||||||
Net assets at end of period (000's) | $ | 171,151 | $ | 179,124 | $ | 121,794 | $ | 87,427 | $ | 117,589 | ||||||||||
Ratio to average net assets: | ||||||||||||||||||||
Net expenses (including dividend and interest expense on securities sold short)(D) | 1.56 | %(E) | 2.39 | % | 2.51 | % | 2.10 | % | 2.19 | % | ||||||||||
Gross expenses (including dividend and interest expense on securities sold short)(F) | 1.56 | %(E) | 2.39 | % | 2.51 | % | 2.10 | % | 2.19 | % | ||||||||||
Net investment loss | (0.66 | %)(E) | (0.89 | %) | (0.77 | %) | (0.51 | %) | (0.69 | %) | ||||||||||
Portfolio turnover rate | 127 | %(C) | 358 | % | 451 | % | 276 | % | 293 | % |
(A) | Represents the period from commencement of operations (October 1, 2013) through September 30, 2014. |
(B) | The net investment loss per share was based on average shares outstanding for the period. |
(C) | Not annualized. |
(D) | The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short was 1.35%, 1.37%, 1.39%, 1.36% and 1.35% for the six months ended March 31, 2018 and years ended September 30, 2017, 2016, 2015 and 2014, respectively. |
(E) | Annualized. |
(F) | The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short was 1.35%, 1.37%, 1.39%, 1.36% and 1.35% for the six months ended March 31, 2018 and years ended September 30, 2017, 2016, 2015 and 2014, respectively. |
See accompanying Notes to Financial Statements.
87 |
Financial Highlights (Continued)
Touchstone Arbitrage Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||
Ended | ||||||||||||||||||||
March 31, | ||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014(A) | ||||||||||||||||
Net asset value at beginning of period | $ | 10.40 | $ | 10.43 | $ | 10.01 | $ | 9.92 | $ | 10.00 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investments loss(B) | (0.03 | ) | (0.08 | ) | (0.07 | ) | (0.04 | ) | (0.06 | ) | ||||||||||
Net realized and unrealized gains (losses) on investments | (0.17 | ) | 0.34 | 0.68 | 0.15 | (0.02 | ) | |||||||||||||
Total from investment operations | (0.20 | ) | 0.26 | 0.61 | 0.11 | (0.08 | ) | |||||||||||||
Distributions from: | ||||||||||||||||||||
Net investment income | — | — | (0.04 | ) | — | — | ||||||||||||||
Realized capital gains | (0.44 | ) | (0.29 | ) | (0.15 | ) | (0.02 | ) | — | |||||||||||
Total distributions | (0.44 | ) | (0.29 | ) | (0.19 | ) | (0.02 | ) | — | |||||||||||
Net asset value at end of period | $ | 9.76 | $ | 10.40 | $ | 10.43 | $ | 10.01 | $ | 9.92 | ||||||||||
Total return | (1.97 | %)(C) | 2.57 | % | 6.12 | % | 1.06 | % | (0.80 | %) | ||||||||||
Ratios and supplemental data: | ||||||||||||||||||||
Net assets at end of period (000's) | $ | 61,044 | $ | 45,259 | $ | 13,782 | $ | 8,735 | $ | 47,763 | ||||||||||
Ratio to average net assets: | ||||||||||||||||||||
Net expenses (including dividend and interest expense on securities sold short)(D) | 1.49 | %(E) | 2.30 | % | 2.40 | % | 2.02 | % | 2.12 | % | ||||||||||
Gross expenses (including dividend and interest expense on securities sold short)(F) | 1.51 | %(E) | 2.35 | % | 2.48 | % | 2.03 | % | 2.12 | % | ||||||||||
Net investment loss | (0.59 | %)(E) | (0.80 | %) | (0.66 | %) | (0.43 | %) | (0.62 | %) | ||||||||||
Portfolio turnover rate | 127 | %(C) | 358 | % | 451 | % | 276 | % | 293 | % |
(A) | Represents the period from commencement of operations (October 1, 2013) through September 30, 2014. |
(B) | The net investment loss per share was based on average shares outstanding for the period. |
(C) | Not annualized. |
(D) | The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short was 1.28%, 1.28%, 1.28%, 1.28% and 1.28% for the six months ended March 31, 2018 and years ended September 30, 2017, 2016, 2015 and 2014, respectively. |
(E) | Annualized. |
(F) | The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short was 1.30%, 1.33%, 1.36%, 1.29% and 1.28% for the six months ended March 31, 2018 and years ended September 30, 2017, 2016, 2015 and 2014, respectively. |
See accompanying Notes to Financial Statements.
88 |
Financial Highlights (Continued)
Touchstone Emerging Markets Small Cap Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 11.08 | $ | 9.29 | $ | 9.15 | $ | 11.67 | $ | 11.52 | $ | 12.24 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)(A) | (0.04 | ) | 0.14 | (0.03 | ) | 0.07 | 0.09 | 0.09 | ||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.86 | 1.65 | 0.87 | (2.53 | ) | 0.09 | (0.80 | ) | ||||||||||||||||
Total from investment operations | 0.82 | 1.79 | 0.84 | (2.46 | ) | 0.18 | (0.71 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.07 | ) | — | (0.70 | ) | (0.06 | ) | (0.03 | ) | (0.01 | ) | |||||||||||||
Net asset value at end of period | $ | 11.83 | $ | 11.08 | $ | 9.29 | $ | 9.15 | $ | 11.67 | $ | 11.52 | ||||||||||||
Total return(B) | 7.40 | %(C) | 19.27 | % | 10.01 | % | (21.18 | %) | 1.61 | % | (5.69 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 1,973 | $ | 2,950 | $ | 2,376 | $ | 3,022 | $ | 5,307 | $ | 9,843 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.69 | %(D) | 1.69 | % | 1.69 | % | 1.69 | % | 1.69 | % | 1.69 | % | ||||||||||||
Gross expenses | 3.96 | %(D) | 4.42 | % | 3.51 | % | 2.41 | % | 2.20 | % | 1.93 | % | ||||||||||||
Net investment income (loss) | (0.62 | %)(D) | 1.39 | % | (0.40 | %) | 0.66 | % | 0.75 | % | 0.71 | % | ||||||||||||
Portfolio turnover rate | 56 | %(C) | 115 | % | 68 | % | 28 | % | 38 | % | 25 | % |
Touchstone Emerging Markets Small Cap Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 10.77 | $ | 9.10 | $ | 8.94 | $ | 11.43 | $ | 11.33 | $ | 12.13 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)(A) | (0.08 | ) | 0.06 | (0.10 | ) | (0.01 | ) | (— | )(E) | (— | )(E) | |||||||||||||
Net realized and unrealized gains (losses) on investments | 0.85 | 1.61 | 0.86 | (2.48 | ) | 0.10 | (0.80 | ) | ||||||||||||||||
Total from investment operations | 0.77 | 1.67 | 0.76 | (2.49 | ) | 0.10 | (0.80 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.01 | ) | — | (0.60 | ) | — | — | — | ||||||||||||||||
Net asset value at end of period | $ | 11.53 | $ | 10.77 | $ | 9.10 | $ | 8.94 | $ | 11.43 | $ | 11.33 | ||||||||||||
Total return(B) | 7.03 | %(C) | 18.46 | % | 9.18 | % | (21.79 | %) | 0.88 | % | (6.44 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 1,054 | $ | 892 | $ | 912 | $ | 1,566 | $ | 2,874 | $ | 3,719 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 2.44 | %(D) | 2.44 | % | 2.44 | % | 2.44 | % | 2.44 | % | 2.44 | % | ||||||||||||
Gross expenses | 5.38 | %(D) | 6.25 | % | 4.80 | % | 3.19 | % | 3.03 | % | 2.84 | % | ||||||||||||
Net investment income (loss) | (1.37 | %)(D) | 0.64 | % | (1.15 | %) | (0.09 | %) | (0.00 | %)(E) | (0.04 | %) | ||||||||||||
Portfolio turnover rate | 56 | %(C) | 115 | % | 68 | % | 28 | % | 38 | % | 25 | % |
(A) | The net investment income (loss) per share was based on average shares outstanding for the period. |
(B) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(C) | Not annualized. |
(D) | Annualized. |
(E) | Less than $0.005 per share or 0.005%. |
See accompanying Notes to Financial Statements.
89 |
Financial Highlights (Continued)
Touchstone Emerging Markets Small Cap Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 11.14 | $ | 9.32 | $ | 9.10 | $ | 11.63 | $ | 11.54 | $ | 12.27 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)(A) | (0.02 | ) | 0.16 | (0.01 | ) | 0.10 | 0.12 | 0.13 | ||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.87 | 1.66 | 0.88 | (2.52 | ) | 0.10 | (0.81 | ) | ||||||||||||||||
Total from investment operations | 0.85 | 1.82 | 0.87 | (2.42 | ) | 0.22 | (0.68 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.11 | ) | — | (0.65 | ) | (0.11 | ) | (0.13 | ) | (0.05 | ) | |||||||||||||
Net asset value at end of period | $ | 11.88 | $ | 11.14 | $ | 9.32 | $ | 9.10 | $ | 11.63 | $ | 11.54 | ||||||||||||
Total return | 7.61 | %(B) | 19.53 | % | 10.37 | % | (20.98 | %) | 1.99 | % | (5.45 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 8,584 | $ | 8,931 | $ | 4,796 | $ | 70,066 | $ | 105,641 | $ | 138,451 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.44 | %(C) | 1.44 | % | 1.44 | % | 1.40 | % | 1.38 | % | 1.37 | % | ||||||||||||
Gross expenses | 2.91 | %(C) | 3.56 | % | 2.27 | % | 1.40 | % | 1.38 | % | 1.35 | % | ||||||||||||
Net investment income (loss) | (0.37 | %)(C) | 1.64 | % | (0.15 | %) | 0.95 | % | 1.06 | % | 1.04 | % | ||||||||||||
Portfolio turnover rate | 56 | %(B) | 115 | % | 68 | % | 28 | % | 38 | % | 25 | % |
Touchstone Emerging Markets Small Cap Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 11.06 | $ | 9.24 | $ | 9.11 | $ | 11.64 | $ | 11.55 | $ | 12.28 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)(A) | (0.01 | ) | 0.17 | (— | )(D) | 0.12 | 0.13 | 0.14 | ||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.85 | 1.65 | 0.88 | (2.53 | ) | 0.11 | (0.81 | ) | ||||||||||||||||
Total from investment operations | 0.84 | 1.82 | 0.88 | (2.41 | ) | 0.24 | (0.67 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.12 | ) | — | (0.75 | ) | (0.12 | ) | (0.15 | ) | (0.06 | ) | |||||||||||||
Net asset value at end of period | $ | 11.78 | $ | 11.06 | $ | 9.24 | $ | 9.11 | $ | 11.64 | $ | 11.55 | ||||||||||||
Total return | 7.63 | %(B) | 19.70 | % | 10.52 | % | (20.87 | %) | 2.13 | % | (5.43 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 1,127 | $ | 831 | $ | 667 | $ | 184,841 | $ | 234,019 | $ | 218,523 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.29 | %(C) | 1.29 | % | 1.29 | % | 1.29 | % | 1.29 | % | 1.29 | % | ||||||||||||
Gross expenses | 4.38 | %(C) | 5.62 | % | 2.16 | % | 1.33 | % | 1.31 | % | 1.29 | % | ||||||||||||
Net investment income (loss) | (0.22 | %)(C) | 1.79 | % | (0.00 | %)(D) | 1.06 | % | 1.15 | % | 1.11 | % | ||||||||||||
Portfolio turnover rate | 56 | %(B) | 115 | % | 68 | % | 28 | % | 38 | % | 25 | % |
(A) | The net investment income (loss) per share was based on average shares outstanding for the period. |
(B) | Not annualized. |
(C) | Annualized. |
(D) | Less than $0.005 per share or 0.005%. |
See accompanying Notes to Financial Statements.
90 |
Financial Highlights (Continued)
Touchstone High Yield Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 8.43 | $ | 8.21 | $ | 7.95 | $ | 8.91 | $ | 8.80 | $ | 8.90 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.20 | 0.39 | 0.41 | 0.43 | 0.45 | 0.51 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.30 | ) | 0.21 | 0.26 | (0.81 | ) | 0.12 | (0.10 | ) | |||||||||||||||
Total from investment operations | (0.10 | ) | 0.60 | 0.67 | (0.38 | ) | 0.57 | 0.41 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.19 | ) | (0.38 | ) | (0.41 | ) | (0.44 | ) | (0.46 | ) | (0.51 | ) | ||||||||||||
Realized capital gains | — | — | — | (0.14 | ) | — | — | |||||||||||||||||
Total distributions | (0.19 | ) | (0.38 | ) | (0.41 | ) | (0.58 | ) | (0.46 | ) | (0.51 | ) | ||||||||||||
Net asset value at end of period | $ | 8.14 | $ | 8.43 | $ | 8.21 | $ | 7.95 | $ | 8.91 | $ | 8.80 | ||||||||||||
Total return(A) | (1.22 | %)(B) | 7.45 | % | 8.78 | % | (4.54 | %) | 6.54 | % | 4.68 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 14,794 | $ | 16,925 | $ | 20,995 | $ | 26,797 | $ | 39,671 | $ | 54,845 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.05 | %(C) | 1.05 | % | 1.05 | % | 1.05 | % | 1.03 | % | 0.99 | % | ||||||||||||
Gross expenses | 1.31 | %(C) | 1.24 | % | 1.23 | % | 1.15 | % | 1.14 | % | 1.13 | % | ||||||||||||
Net investment income | 4.67 | %(C) | 4.63 | % | 5.19 | % | 4.92 | % | 4.95 | % | 5.60 | % | ||||||||||||
Portfolio turnover rate | 28 | %(B) | 69 | % | 56 | % | 35 | % | 40 | % | 47 | % |
Touchstone High Yield Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 8.41 | $ | 8.19 | $ | 7.93 | $ | 8.90 | $ | 8.79 | $ | 8.89 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.17 | 0.33 | 0.35 | 0.36 | 0.38 | 0.44 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.30 | ) | 0.21 | 0.26 | (0.82 | ) | 0.12 | (0.09 | ) | |||||||||||||||
Total from investment operations | (0.13 | ) | 0.54 | 0.61 | (0.46 | ) | 0.50 | 0.35 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.16 | ) | (0.32 | ) | (0.35 | ) | (0.37 | ) | (0.39 | ) | (0.45 | ) | ||||||||||||
Realized capital gains | — | — | — | (0.14 | ) | — | — | |||||||||||||||||
Total distributions | (0.16 | ) | (0.32 | ) | (0.35 | ) | (0.51 | ) | (0.39 | ) | (0.45 | ) | ||||||||||||
Net asset value at end of period | $ | 8.12 | $ | 8.41 | $ | 8.19 | $ | 7.93 | $ | 8.90 | $ | 8.79 | ||||||||||||
Total return(A) | (1.59 | %)(B) | 6.68 | % | 7.99 | % | (5.28 | %) | 5.64 | % | 3.92 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 10,862 | $ | 13,025 | $ | 16,372 | $ | 24,755 | $ | 32,163 | $ | 34,661 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.80 | %(C) | 1.80 | % | 1.80 | % | 1.80 | % | 1.78 | % | 1.74 | % | ||||||||||||
Gross expenses | 2.01 | %(C) | 1.97 | % | 1.94 | % | 1.87 | % | 1.86 | % | 1.87 | % | ||||||||||||
Net investment income | 3.92 | %(C) | 3.88 | % | 4.44 | % | 4.17 | % | 4.21 | % | 4.86 | % | ||||||||||||
Portfolio turnover rate | 28 | %(B) | 69 | % | 56 | % | 35 | % | 40 | % | 47 | % |
(A) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(B) | Not annualized. |
(C) | Annualized. |
See accompanying Notes to Financial Statements.
91 |
Financial Highlights (Continued)
Touchstone High Yield Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 8.67 | $ | 8.44 | $ | 8.16 | $ | 9.14 | $ | 9.01 | $ | 9.10 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.23 | 0.43 | 0.46 | 0.47 | 0.50 | 0.56 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.33 | ) | 0.21 | 0.25 | (0.85 | ) | 0.12 | (0.11 | ) | |||||||||||||||
Total from investment operations | (0.10 | ) | 0.64 | 0.71 | (0.38 | ) | 0.62 | 0.45 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.20 | ) | (0.41 | ) | (0.43 | ) | (0.46 | ) | (0.49 | ) | (0.54 | ) | ||||||||||||
Realized capital gains | — | — | — | (0.14 | ) | — | — | |||||||||||||||||
Total distributions | (0.20 | ) | (0.41 | ) | (0.43 | ) | (0.60 | ) | (0.49 | ) | (0.54 | ) | ||||||||||||
Net asset value at end of period | $ | 8.37 | $ | 8.67 | $ | 8.44 | $ | 8.16 | $ | 9.14 | $ | 9.01 | ||||||||||||
Total return | (1.13 | %)(A) | 7.74 | % | 9.11 | % | (4.42 | %) | 6.91 | % | 5.00 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 57,290 | $ | 75,435 | $ | 85,739 | $ | 119,505 | $ | 166,071 | $ | 187,463 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.80 | %(B) | 0.80 | % | 0.80 | % | 0.80 | % | 0.74 | % | 0.69 | % | ||||||||||||
Gross expenses | 0.95 | %(B) | 0.90 | % | 0.91 | % | 0.87 | % | 0.78 | % | 0.83 | % | ||||||||||||
Net investment income | 4.92 | %(B) | 4.88 | % | 5.44 | % | 5.17 | % | 5.24 | % | 5.90 | % | ||||||||||||
Portfolio turnover rate | 28 | %(A) | 69 | % | 56 | % | 35 | % | 40 | % | 47 | % |
Touchstone High Yield Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 8.66 | $ | 8.43 | $ | 8.16 | $ | 9.13 | $ | 9.00 | $ | 9.10 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.22 | 0.42 | 0.44 | 0.46 | 0.49 | 0.54 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.30 | ) | 0.22 | 0.27 | (0.82 | ) | 0.13 | (0.09 | ) | |||||||||||||||
Total from investment operations | (0.08 | ) | 0.64 | 0.71 | (0.36 | ) | 0.62 | 0.45 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.21 | ) | (0.41 | ) | (0.44 | ) | (0.47 | ) | (0.49 | ) | (0.55 | ) | ||||||||||||
Realized capital gains | — | — | — | (0.14 | ) | — | — | |||||||||||||||||
Total distributions | (0.21 | ) | (0.41 | ) | (0.44 | ) | (0.61 | ) | (0.49 | ) | (0.55 | ) | ||||||||||||
Net asset value at end of period | $ | 8.37 | $ | 8.66 | $ | 8.43 | $ | 8.16 | $ | 9.13 | $ | 9.00 | ||||||||||||
Total return | (0.98 | %)(A) | 7.70 | % | 9.19 | % | (4.23 | %) | 6.99 | % | 5.00 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 110,808 | $ | 112,503 | $ | 93,267 | $ | 59,037 | $ | 56,228 | $ | 53,844 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.72 | %(B) | 0.72 | % | 0.72 | % | 0.72 | % | 0.68 | % | 0.59 | % | ||||||||||||
Gross expenses | 0.76 | %(B) | 0.75 | % | 0.77 | % | 0.75 | % | 0.75 | % | 0.75 | % | ||||||||||||
Net investment income | 5.00 | %(B) | 4.96 | % | 5.52 | % | 5.25 | % | 5.31 | % | 6.00 | % | ||||||||||||
Portfolio turnover rate | 28 | %(A) | 69 | % | 56 | % | 35 | % | 40 | % | 47 | % |
(A) | Not annualized. |
(B) | Annualized. |
See accompanying Notes to Financial Statements.
92 |
Financial Highlights (Continued)
Touchstone Merger Arbitrage Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 11.00 | $ | 11.00 | $ | 10.54 | $ | 10.49 | $ | 11.05 | $ | 10.65 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)(A) | (0.05 | ) | (0.11 | ) | (0.08 | ) | (0.11 | ) | (0.13 | ) | 0.07 | |||||||||||||
Net realized and unrealized gains (losses) on investments | (0.13 | ) | 0.43 | 0.54 | 0.21 | (0.05 | ) | 0.44 | ||||||||||||||||
Total from investment operations | (0.18 | ) | 0.32 | 0.46 | 0.10 | (0.18 | ) | 0.51 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | — | — | — | (0.05 | ) | — | |||||||||||||||||
Realized capital gains | (0.59 | ) | (0.32 | ) | — | (0.05 | ) | (0.33 | ) | (0.11 | ) | |||||||||||||
Total distributions | (0.59 | ) | (0.32 | ) | — | (0.05 | ) | (0.38 | ) | (0.11 | ) | |||||||||||||
Net asset value at end of period | $ | 10.23 | $ | 11.00 | $ | 11.00 | $ | 10.54 | $ | 10.49 | $ | 11.05 | ||||||||||||
Total return(B) | (1.72 | %)(C) | 3.01 | % | 4.37 | % | 0.92 | % | (1.75 | %) | 4.84 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 11,233 | $ | 14,144 | $ | 15,711 | $ | 21,858 | $ | 96,916 | $ | 275,858 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses (including dividend and interest expense on securities sold short)(D) | 2.00 | %(E) | 2.56 | % | 2.52 | % | 2.47 | % | 2.52 | % | 2.27 | % | ||||||||||||
Gross expenses (including dividend and interest expense on securities sold short)(F) | 2.13 | %(E) | 2.64 | % | 2.55 | % | 2.47 | % | 2.52 | % | 2.27 | % | ||||||||||||
Net investment income (loss) | (1.03 | %)(E) | (1.05 | %) | (0.74 | %) | (0.99 | %) | (1.25 | %) | 0.65 | % | ||||||||||||
Portfolio turnover rate | 115 | %(C) | 331 | % | 400 | % | 227 | % | 271 | % | 288 | % |
(A) | The net investment income (loss) per share was 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) | The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short was 1.68%, 1.68%, 1.68%, 1.60%, 1.57% and 1.64% for the six months ended March 31, 2018 and years ended September 30, 2017, 2016, 2015, 2014 and 2013, respectively. |
(E) | Annualized. |
(F) | The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short was 1.81%, 1.76%, 1.71%, 1.60%, 1.57% and 1.64% for the six months ended March 31, 2018 and years ended September 30, 2017, 2016, 2015, 2014 and 2013, respectively. |
See accompanying Notes to Financial Statements.
93 |
Financial Highlights (Continued)
Touchstone Merger Arbitrage Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 10.50 | $ | 10.60 | $ | 10.22 | $ | 10.26 | $ | 10.85 | $ | 10.54 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss(A) | (0.09 | ) | (0.19 | ) | (0.16 | ) | (0.18 | ) | (0.22 | ) | (0.01 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | (0.12 | ) | 0.41 | 0.54 | 0.19 | (0.04 | ) | 0.43 | ||||||||||||||||
Total from investment operations | (0.21 | ) | 0.22 | 0.38 | 0.01 | (0.26 | ) | 0.42 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | ||||||||||||||||||
Realized capital gains | (0.59 | ) | (0.32 | ) | — | (0.05 | ) | (0.33 | ) | (0.11 | ) | |||||||||||||
Total distributions | (0.59 | ) | (0.32 | ) | — | (0.05 | ) | (0.33 | ) | (0.11 | ) | |||||||||||||
Net asset value at end of period | $ | 9.70 | $ | 10.50 | $ | 10.60 | $ | 10.22 | $ | 10.26 | $ | 10.85 | ||||||||||||
Total return(B) | (2.10 | %)(C) | 2.26 | % | 3.62 | % | 0.06 | % | (2.51 | %) | 3.93 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 9,562 | $ | 11,071 | $ | 14,300 | $ | 18,868 | $ | 35,737 | $ | 50,001 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses (including dividend and interest expense on securities sold short)(D) | 2.75 | %(E) | 3.31 | % | 3.27 | % | 3.26 | % | 3.32 | % | 3.05 | % | ||||||||||||
Gross expenses (including dividend and interest expense on securities sold short)(F) | 2.88 | %(E) | 3.40 | % | 3.28 | % | 3.26 | % | 3.32 | % | 3.05 | % | ||||||||||||
Net investment loss | (1.78 | %)(E) | (1.80 | %) | (1.49 | %) | (1.79 | %) | (2.05 | %) | (0.13 | %) | ||||||||||||
Portfolio turnover rate | 115 | %(C) | 331 | % | 400 | % | 227 | % | 271 | % | 288 | % |
(A) | The net investment loss per share was 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) | The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short was 2.43%, 2.43%, 2.43%, 2.39%, 2.37% and 2.42% for the six months ended March 31, 2018 and years ended September 30, 2017, 2016, 2015, 2014 and 2013, respectively. |
(E) | Annualized. |
(F) | The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short was 2.56%, 2.52%, 2.44%, 2.39%, 2.37% and 2.42% for the six months ended March 31, 2018 and years ended September 30, 2017, 2016, 2015, 2014 and 2013, respectively. |
See accompanying Notes to Financial Statements.
94 |
Financial Highlights (Continued)
Touchstone Merger Arbitrage Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 11.16 | $ | 11.13 | $ | 10.62 | $ | 10.55 | $ | 11.10 | $ | 10.68 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)(A) | (0.04 | ) | (0.09 | ) | (0.05 | ) | (0.08 | ) | (0.10 | ) | 0.10 | |||||||||||||
Net realized and unrealized gains (losses) on investments | (0.13 | ) | 0.44 | 0.56 | 0.20 | (0.05 | ) | 0.43 | ||||||||||||||||
Total from investment operations | (0.17 | ) | 0.35 | 0.51 | 0.12 | (0.15 | ) | 0.53 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | — | — | — | (0.07 | ) | — | |||||||||||||||||
Realized capital gains | (0.59 | ) | (0.32 | ) | — | (0.05 | ) | (0.33 | ) | (0.11 | ) | |||||||||||||
Total distributions | (0.59 | ) | (0.32 | ) | — | (0.05 | ) | (0.40 | ) | (0.11 | ) | |||||||||||||
Net asset value at end of period | $ | 10.40 | $ | 11.16 | $ | 11.13 | $ | 10.62 | $ | 10.55 | $ | 11.10 | ||||||||||||
Total return | (1.60 | %)(B) | 3.35 | % | 4.71 | % | 1.10 | % | (1.41 | %) | 5.01 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 106,354 | $ | 91,224 | $ | 85,841 | $ | 88,677 | $ | 178,305 | $ | 192,095 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses (including dividend and interest expense on securities sold short)(C) | 1.71 | %(D) | 2.28 | % | 2.21 | % | 2.20 | % | 2.24 | % | 2.02 | % | ||||||||||||
Gross expenses (including dividend and interest expense on securities sold short)(E) | 1.71 | %(D) | 2.28 | % | 2.21 | % | 2.20 | % | 2.24 | % | 2.01 | % | ||||||||||||
Net investment income (loss) | (0.73 | %)(D) | (0.77 | %) | (0.43 | %) | (0.73 | %) | (0.97 | %) | 0.90 | % | ||||||||||||
Portfolio turnover rate | 115 | %(B) | 331 | % | 400 | % | 227 | % | 271 | % | 288 | % |
(A) | The net investment income (loss) per share was based on average shares outstanding for the period. |
(B) | Not annualized. |
(C) | The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short was 1.39%, 1.40%, 1.37%, 1.33%, 1.29% and 1.39% for the six months ended March 31, 2018 and years ended September 30, 2017, 2016, 2015, 2014 and 2013, respectively. |
(D) | Annualized. |
(E) | The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short was 1.39%, 1.40%, 1.37%, 1.33%, 1.29%, and 1.38% for the six months ended March 31, 2018 and years ended September 30, 2017, 2016, 2015, 2014 and 2013, respectively. |
See accompanying Notes to Financial Statements.
95 |
Financial Highlights (Continued)
Touchstone Merger Arbitrage Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 11.21 | $ | 11.16 | $ | 10.65 | $ | 10.57 | $ | 11.13 | $ | 10.69 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)(A) | (0.03 | ) | (0.07 | ) | (0.04 | ) | (0.07 | ) | (0.10 | ) | 0.11 | |||||||||||||
Net realized and unrealized gains (losses) on investments | (0.13 | ) | 0.44 | 0.55 | 0.20 | (0.05 | ) | 0.44 | ||||||||||||||||
Total from investment operations | (0.16 | ) | 0.37 | 0.51 | 0.13 | (0.15 | ) | 0.55 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | — | — | — | (0.08 | ) | — | |||||||||||||||||
Realized capital gains | (0.59 | ) | (0.32 | ) | — | (0.05 | ) | (0.33 | ) | (0.11 | ) | |||||||||||||
Total distributions | (0.59 | ) | (0.32 | ) | — | (0.05 | ) | (0.41 | ) | (0.11 | ) | |||||||||||||
Net asset value at end of period | $ | 10.46 | $ | 11.21 | $ | 11.16 | $ | 10.65 | $ | 10.57 | $ | 11.13 | ||||||||||||
Total return | (1.51 | %)(B) | 3.43 | % | 4.79 | % | 1.19 | % | (1.44 | %) | 5.20 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 60,950 | $ | 98,240 | $ | 76,910 | $ | 82,858 | $ | 119,727 | $ | 170,930 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses (including dividend and interest expense on securities sold short)(C) | 1.60 | %(D) | 2.16 | % | 2.12 | % | 2.13 | % | 2.21 | % | 1.91 | % | ||||||||||||
Gross expenses (including dividend and interest expense on securities sold short)(E) | 1.65 | %(D) | 2.18 | % | 2.12 | % | 2.13 | % | 2.20 | % | 1.92 | % | ||||||||||||
Net investment income (loss) | (0.63 | %)(D) | (0.65 | %) | (0.34 | %) | (0.66 | %) | (0.94 | %) | 1.01 | % | ||||||||||||
Portfolio turnover rate | 115 | %(B) | 331 | % | 400 | % | 227 | % | 271 | % | 288 | % |
(A) | The net investment income (loss) per share was based on average shares outstanding for the period. |
(B) | Not annualized. |
(C) | The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short was 1.28%, 1.28%, 1.28%, 1.26%, 1.26% and 1.28% for the six months ended March 31, 2018 and years ended September 30, 2017, 2016, 2015, 2014 and 2013, respectively. |
(D) | Annualized. |
(E) | The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short was 1.33%, 1.30%, 1.28%, 1.26%, 1.25% and 1.29% for the six months ended March 31, 2018 and years ended September 30, 2017, 2016, 2015, 2014 and 2013, respectively. |
See accompanying Notes to Financial Statements.
96 |
Financial Highlights (Continued)
Touchstone Mid Cap Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 30.50 | $ | 25.91 | $ | 23.22 | $ | 23.68 | $ | 20.87 | $ | 16.55 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.05 | (A) | (0.02 | )(A) | 0.12 | (0.02 | )(A) | — | (B) | 0.12 | (A) | |||||||||||||
Net realized and unrealized gains (losses) on investments | 2.29 | 4.69 | 2.57 | (0.44 | ) | 2.83 | 4.51 | |||||||||||||||||
Total from investment operations | 2.34 | 4.67 | 2.69 | (0.46 | ) | 2.83 | 4.63 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.08 | ) | — | — | (0.02 | ) | (0.31 | ) | |||||||||||||||
Realized capital gains | (0.31 | ) | — | — | — | — | — | |||||||||||||||||
Total distributions | (0.31 | ) | (0.08 | ) | — | — | (0.02 | ) | (0.31 | ) | ||||||||||||||
Net asset value at end of period | $ | 32.53 | $ | 30.50 | $ | 25.91 | $ | 23.22 | $ | 23.68 | $ | 20.87 | ||||||||||||
Total return(C) | 7.69 | %(D) | 18.08 | % | 11.58 | % | (1.94 | %) | 13.57 | % | 28.43 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 34,201 | $ | 34,761 | $ | 53,044 | $ | 62,717 | $ | 35,513 | $ | 43,611 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.24 | %(E) | 1.24 | % | 1.24 | % | 1.24 | % | 1.23 | % | 1.21 | % | ||||||||||||
Gross expenses | 1.37 | %(E) | 1.36 | % | 1.35 | % | 1.35 | % | 1.40 | % | 1.50 | % | ||||||||||||
Net investment income (loss) | 0.32 | %(E) | (0.09 | %) | 0.43 | % | (0.07 | %) | 0.01 | % | 0.61 | % | ||||||||||||
Portfolio turnover rate | 33 | %(D) | 19 | % | 19 | % | 17 | % | 26 | % | 20 | % |
Touchstone Mid Cap Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 29.02 | $ | 24.76 | $ | 22.35 | $ | 22.97 | $ | 20.37 | $ | 16.21 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.06 | )(A) | (0.22 | )(A) | (0.12 | ) | (0.20 | )(A) | (0.15 | ) | (0.03 | )(A) | ||||||||||||
Net realized and unrealized gains (losses) on investments | 2.16 | 4.48 | 2.53 | (0.42 | ) | 2.75 | 4.42 | |||||||||||||||||
Total from investment operations | 2.10 | 4.26 | 2.41 | (0.62 | ) | 2.60 | 4.39 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | — | — | — | — | (0.23 | ) | |||||||||||||||||
Realized capital gains | (0.31 | ) | — | — | — | — | — | |||||||||||||||||
Total distributions | (0.31 | ) | — | — | — | — | (0.23 | ) | ||||||||||||||||
Net asset value at end of period | $ | 30.81 | $ | 29.02 | $ | 24.76 | $ | 22.35 | $ | 22.97 | $ | 20.37 | ||||||||||||
Total return(C) | 7.25 | %(D) | 17.21 | % | 10.78 | % | (2.70 | %) | 12.76 | % | 27.43 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 55,706 | $ | 57,224 | $ | 59,431 | $ | 60,815 | $ | 41,433 | $ | 25,018 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.99 | %(E) | 1.99 | % | 1.99 | % | 1.99 | % | 1.98 | % | 1.96 | % | ||||||||||||
Gross expenses | 2.09 | %(E) | 2.11 | % | 2.13 | % | 2.12 | % | 2.16 | % | 2.37 | % | ||||||||||||
Net investment loss | (0.43 | %)(E) | (0.84 | %) | (0.32 | %) | (0.82 | %) | (0.75 | %) | (0.14 | %) | ||||||||||||
Portfolio turnover rate | 33 | %(D) | 19 | % | 19 | % | 17 | % | 26 | % | 20 | % |
(A) | The net investment income (loss) per share was based on average shares outstanding for the period. |
(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 Mid Cap Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 30.77 | $ | 26.14 | $ | 23.38 | $ | 23.83 | $ | 20.98 | $ | 16.60 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.09 | (A) | 0.05 | (A) | 0.18 | 0.05 | (A) | 0.06 | 0.17 | (A) | ||||||||||||||
Net realized and unrealized gains (losses) on investments | 2.30 | 4.74 | 2.59 | (0.45 | ) | 2.84 | 4.53 | |||||||||||||||||
Total from investment operations | 2.39 | 4.79 | 2.77 | (0.40 | ) | 2.90 | 4.70 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.05 | ) | (0.16 | ) | (0.01 | ) | (0.05 | ) | (0.05 | ) | (0.32 | ) | ||||||||||||
Realized capital gains | (0.31 | ) | — | — | — | — | — | |||||||||||||||||
Total distributions | (0.36 | ) | (0.16 | ) | (0.01 | ) | (0.05 | ) | (0.05 | ) | (0.32 | ) | ||||||||||||
Net asset value at end of period | $ | 32.80 | $ | 30.77 | $ | 26.14 | $ | 23.38 | $ | 23.83 | $ | 20.98 | ||||||||||||
Total return | 7.78 | %(B) | 18.40 | % | 11.87 | % | (1.69 | %) | 13.83 | % | 28.78 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 600,397 | $ | 551,794 | $ | 476,831 | $ | 481,735 | $ | 266,446 | $ | 181,276 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.99 | %(C) | 0.99 | % | 0.99 | % | 0.99 | % | 0.98 | % | 0.95 | % | ||||||||||||
Gross expenses | 1.05 | %(C) | 1.08 | % | 1.07 | % | 1.11 | % | 1.06 | % | 1.09 | % | ||||||||||||
Net investment income | 0.57 | %(C) | 0.16 | % | 0.68 | % | 0.18 | % | 0.26 | % | 0.87 | % | ||||||||||||
Portfolio turnover rate | 33 | %(B) | 19 | % | 19 | % | 17 | % | 26 | % | 20 | % |
Touchstone Mid Cap Fund—Class Z
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 30.32 | $ | 25.75 | $ | 23.08 | $ | 23.54 | $ | 20.73 | $ | 16.45 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.05 | (A) | (0.02 | )(A) | 0.12 | (0.02 | )(A) | 0.01 | 0.12 | (A) | ||||||||||||||
Net realized and unrealized gains (losses) on investments | 2.27 | 4.67 | 2.55 | (0.44 | ) | 2.81 | 4.48 | |||||||||||||||||
Total from investment operations | 2.32 | 4.65 | 2.67 | (0.46 | ) | 2.82 | 4.60 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.08 | ) | (— | )(D) | — | (0.01 | ) | (0.32 | ) | ||||||||||||||
Realized capital gains | (0.31 | ) | — | — | — | — | ||||||||||||||||||
Total distributions | (0.31 | ) | (0.08 | ) | — | — | (0.01 | ) | (0.32 | ) | ||||||||||||||
Net asset value at end of period | $ | 32.33 | $ | 30.32 | $ | 25.75 | $ | 23.08 | $ | 23.54 | $ | 20.73 | ||||||||||||
Total return | 7.67 | %(B) | 18.08 | % | 11.58 | % | (1.95 | %) | 13.58 | % | 28.45 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 19,829 | $ | 19,312 | $ | 18,934 | $ | 18,693 | $ | 11,593 | $ | 12,858 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.24 | %(C) | 1.24 | % | 1.24 | % | 1.24 | % | 1.23 | % | 1.21 | % | ||||||||||||
Gross expenses | 1.41 | %(C) | 1.44 | % | 1.46 | % | 1.44 | % | 1.55 | % | 1.55 | % | ||||||||||||
Net investment income (loss) | 0.32 | %(C) | (0.09 | %) | 0.43 | % | (0.07 | %) | 0.01 | % | 0.61 | % | ||||||||||||
Portfolio turnover rate | 33 | %(B) | 19 | % | 19 | % | 17 | % | 26 | % | 20 | % |
(A) | The net investment income (loss) per share was 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.
98 |
Financial Highlights (Continued)
Touchstone Mid Cap Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 30.81 | $ | 26.18 | $ | 23.40 | $ | 23.85 | $ | 20.99 | $ | 16.61 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.10 | (A) | 0.07 | (A) | 0.19 | 0.06 | (A) | 0.08 | 0.19 | (A) | ||||||||||||||
Net realized and unrealized gains (losses) on investments | 2.31 | 4.74 | 2.61 | (0.44 | ) | 2.84 | 4.52 | |||||||||||||||||
Total from investment operations | 2.41 | 4.81 | 2.80 | (0.38 | ) | 2.92 | 4.71 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.07 | ) | (0.18 | ) | (0.02 | ) | (0.07 | ) | (0.06 | ) | (0.33 | ) | ||||||||||||
Realized capital gains | (0.31 | ) | — | — | — | — | — | |||||||||||||||||
Total distributions | (0.38 | ) | (0.18 | ) | (0.02 | ) | (0.07 | ) | (0.06 | ) | (0.33 | ) | ||||||||||||
Net asset value at end of period | $ | 32.84 | $ | 30.81 | $ | 26.18 | $ | 23.40 | $ | 23.85 | $ | 20.99 | ||||||||||||
Total return | 7.84 | %(B) | 18.50 | % | 11.92 | % | (1.62 | %) | 13.91 | % | 28.85 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 114,613 | $ | 113,867 | $ | 77,775 | $ | 76,324 | $ | 90,998 | $ | 74,170 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.92 | %(C) | 0.92 | % | 0.92 | % | 0.92 | % | 0.91 | % | 0.89 | % | ||||||||||||
Gross expenses | 0.97 | %(C) | 0.98 | % | 0.99 | % | 1.00 | % | 1.01 | % | 1.07 | % | ||||||||||||
Net investment income | 0.64 | %(C) | 0.23 | % | 0.75 | % | 0.25 | % | 0.33 | % | 0.93 | % | ||||||||||||
Portfolio turnover rate | 33 | %(B) | 19 | % | 19 | % | 17 | % | 26 | % | 20 | % |
(A) The net investment income per share was based on average shares outstanding for the period.
(B) Not annualized.
(C) Annualized.
See accompanying Notes to Financial Statements.
99 |
Financial Highlights (Continued)
Touchstone Mid Cap Value Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 19.36 | $ | 17.49 | $ | 15.70 | $ | 16.60 | $ | 16.09 | $ | 12.98 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.02 | 0.04 | 0.09 | (A) | 0.12 | 0.05 | 0.10 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.30 | ) | 2.47 | 2.76 | (0.28 | ) | 1.85 | 3.26 | ||||||||||||||||
Total from investment operations | (0.28 | ) | 2.51 | 2.85 | (0.16 | ) | 1.90 | 3.36 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.02 | ) | (0.03 | ) | (0.10 | ) | (0.10 | ) | (0.05 | ) | (0.10 | ) | ||||||||||||
Realized capital gains | (1.14 | ) | (0.61 | ) | (0.96 | ) | (0.64 | ) | (1.34 | ) | (0.15 | ) | ||||||||||||
Total distributions | (1.16 | ) | (0.64 | ) | (1.06 | ) | (0.74 | ) | (1.39 | ) | (0.25 | ) | ||||||||||||
Net asset value at end of period | $ | 17.92 | $ | 19.36 | $ | 17.49 | $ | 15.70 | $ | 16.60 | $ | 16.09 | ||||||||||||
Total return(B) | (1.79 | %)(C) | 14.62 | % | 19.20 | % | (1.14 | %) | 12.49 | % | 26.26 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 19,739 | $ | 21,001 | $ | 21,867 | $ | 7,663 | $ | 14,029 | $ | 5,307 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.27 | %(D) | 1.27 | % | 1.27 | % | 1.29 | % | 1.29 | % | 1.29 | % | ||||||||||||
Gross expenses | 1.46 | %(D) | 1.47 | % | 1.59 | % | 1.66 | % | 1.58 | % | 1.75 | % | ||||||||||||
Net investment income | 0.28 | %(D) | 0.19 | % | 0.56 | % | 0.55 | % | 0.41 | % | 0.73 | % | ||||||||||||
Portfolio turnover rate | 18 | %(C) | 43 | % | 45 | % | 54 | % | 85 | %(E) | 68 | % |
Touchstone Mid Cap Value Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 18.94 | $ | 17.23 | $ | 15.49 | $ | 16.42 | $ | 16.00 | $ | 12.92 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.05 | ) | (0.06 | ) | (0.03 | )(A) | (0.04 | ) | (0.04 | ) | (— | )(F) | ||||||||||||
Net realized and unrealized gains (losses) on investments | (0.29 | ) | 2.38 | 2.73 | (0.25 | ) | 1.80 | 3.24 | ||||||||||||||||
Total from investment operations | (0.34 | ) | 2.32 | 2.70 | (0.29 | ) | 1.76 | 3.24 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | — | — | — | — | (0.01 | ) | |||||||||||||||||
Realized capital gains | (1.14 | ) | (0.61 | ) | (0.96 | ) | (0.64 | ) | (1.34 | ) | (0.15 | ) | ||||||||||||
Total distributions | (1.14 | ) | (0.61 | ) | (0.96 | ) | (0.64 | ) | (1.34 | ) | (0.16 | ) | ||||||||||||
Net asset value at end of period | $ | 17.46 | $ | 18.94 | $ | 17.23 | $ | 15.49 | $ | 16.42 | $ | 16.00 | ||||||||||||
Total return(B) | (2.11 | %)(C) | 13.78 | % | 18.32 | % | (1.91 | %) | 11.62 | % | 25.32 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 9,614 | $ | 10,758 | $ | 4,088 | $ | 1,752 | $ | 2,002 | $ | 719 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 2.02 | %(D) | 2.02 | % | 2.02 | % | 2.04 | % | 2.04 | % | 2.04 | % | ||||||||||||
Gross expenses | 2.25 | %(D) | 2.33 | % | 2.75 | % | 2.83 | % | 3.05 | % | 4.17 | % | ||||||||||||
Net investment loss | (0.47 | %)(D) | (0.56 | %) | (0.19 | %) | (0.20 | %) | (0.34 | %) | (0.02 | %) | ||||||||||||
Portfolio turnover rate | 18 | %(C) | 43 | % | 45 | % | 54 | % | 85 | %(E) | 68 | % |
(A) The net investment income (loss) per share was based on average shares outstanding for the period.
(B) Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower.
(C) Not annualized.
(D) Annualized.
(E) Portfolio turnover excludes the purchases and sales of securities of the Touchstone Mid Cap Value Opportunities Fund acquired on
March 21, 2014. If these transactions were included, portfolio turnover would have been higher.
(F) Less than $0.005 per share.
See accompanying Notes to Financial Statements.
100 |
Financial Highlights (Continued)
Touchstone Mid Cap Value Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 19.45 | $ | 17.57 | $ | 15.76 | $ | 16.67 | $ | 16.15 | $ | 13.03 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.05 | 0.08 | 0.13 | (A) | 0.14 | 0.07 | 0.15 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.31 | ) | 2.49 | 2.78 | (0.27 | ) | 1.88 | 3.26 | ||||||||||||||||
Total from investment operations | (0.26 | ) | 2.57 | 2.91 | (0.13 | ) | 1.95 | 3.41 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.05 | ) | (0.08 | ) | (0.14 | ) | (0.14 | ) | (0.09 | ) | (0.14 | ) | ||||||||||||
Realized capital gains | (1.14 | ) | (0.61 | ) | (0.96 | ) | (0.64 | ) | (1.34 | ) | (0.15 | ) | ||||||||||||
Total distributions | (1.19 | ) | (0.69 | ) | (1.10 | ) | (0.78 | ) | (1.43 | ) | (0.29 | ) | ||||||||||||
Net asset value at end of period | $ | 18.00 | $ | 19.45 | $ | 17.57 | $ | 15.76 | $ | 16.67 | $ | 16.15 | ||||||||||||
Total return | (1.65 | %)(B) | 14.91 | % | 19.51 | % | (0.91 | %) | 12.77 | % | 26.53 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 333,783 | $ | 322,979 | $ | 292,978 | $ | 208,525 | $ | 213,404 | $ | 15,782 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.02 | %(C)(D) | 1.02 | % | 1.03 | % | 1.04 | % | 1.04 | % | 1.04 | % | ||||||||||||
Gross expenses | 1.05 | %(C) | 1.10 | % | 1.13 | % | 1.13 | % | 1.14 | % | 1.37 | % | ||||||||||||
Net investment income | 0.53 | %(C) | 0.43 | % | 0.81 | % | 0.81 | % | 0.66 | % | 0.98 | % | ||||||||||||
Portfolio turnover rate | 18 | %(B) | 43 | % | 45 | % | 54 | % | 85 | %(E) | 68 | % |
Touchstone Mid Cap Value Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 19.54 | $ | 17.64 | $ | 15.82 | $ | 16.73 | $ | 16.20 | $ | 13.07 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.06 | 0.09 | 0.16 | (A) | 0.17 | 0.13 | 0.16 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.31 | ) | 2.52 | 2.78 | (0.27 | ) | 1.85 | 3.28 | ||||||||||||||||
Total from investment operations | (0.25 | ) | 2.61 | 2.94 | (0.10 | ) | 1.98 | 3.44 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.06 | ) | (0.10 | ) | (0.16 | ) | (0.17 | ) | (0.11 | ) | (0.16 | ) | ||||||||||||
Realized capital gains | (1.14 | ) | (0.61 | ) | (0.96 | ) | (0.64 | ) | (1.34 | ) | (0.15 | ) | ||||||||||||
Total distributions | (1.20 | ) | (0.71 | ) | (1.12 | ) | (0.81 | ) | (1.45 | ) | (0.31 | ) | ||||||||||||
Net asset value at end of period | $ | 18.09 | $ | 19.54 | $ | 17.64 | $ | 15.82 | $ | 16.73 | $ | 16.20 | ||||||||||||
Total return | (1.58 | %)(B) | 15.04 | % | 19.71 | % | (0.76 | %) | 12.90 | % | 26.71 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 360,603 | $ | 334,083 | $ | 185,989 | $ | 124,592 | $ | 134,259 | $ | 144,965 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.89 | %(C) | 0.89 | % | 0.89 | % | 0.89 | % | 0.89 | % | 0.89 | % | ||||||||||||
Gross expenses | 1.00 | %(C) | 1.01 | % | 1.03 | % | 1.03 | % | 1.04 | % | 1.09 | % | ||||||||||||
Net investment income | 0.66 | %(C) | 0.57 | % | 0.94 | % | 0.96 | % | 0.81 | % | 1.13 | % | ||||||||||||
Portfolio turnover rate | 18 | %(B) | 43 | % | 45 | % | 54 | % | 85 | %(E) | 68 | % |
(A) The net investment income per share was based on average shares outstanding for the period.
(B) Not annualized.
(C) Annualized.
(D) Net expenses include amounts eligible for recoupment by the Advisor.
(E) Portfolio turnover excludes the purchases and sales of securities of the Touchstone Mid Cap Value Opportunities Fund acquired on March 21, 2014. If these transactions were included, portfolio turnover would have been higher.
See accompanying Notes to Financial Statements.
101 |
Financial Highlights (Continued)
Touchstone Premium Yield Equity Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 9.40 | $ | 8.77 | $ | 8.27 | $ | 9.98 | $ | 8.92 | $ | 8.11 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.08 | 0.25 | 0.22 | 0.24 | 0.40 | (A) | 0.24 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.11 | 0.62 | 1.04 | (1.25 | ) | 1.07 | 0.80 | |||||||||||||||||
Total from investment operations | 0.19 | 0.87 | 1.26 | (1.01 | ) | 1.47 | 1.04 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.12 | ) | (0.24 | ) | (0.21 | ) | (0.25 | ) | (0.41 | ) | (0.23 | ) | ||||||||||||
Realized capital gains | (0.18 | ) | — | (0.55 | ) | (0.45 | ) | — | — | |||||||||||||||
Total distributions | (0.30 | ) | (0.24 | ) | (0.76 | ) | (0.70 | ) | (0.41 | ) | (0.23 | ) | ||||||||||||
Net asset value at end of period | $ | 9.29 | $ | 9.40 | $ | 8.77 | $ | 8.27 | $ | 9.98 | $ | 8.92 | ||||||||||||
Total return(B) | 2.04 | %(C) | 10.10 | % | 16.80 | % | (10.79 | %) | 16.79 | % | 12.97 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 13,404 | $ | 22,725 | $ | 26,907 | $ | 36,023 | $ | 45,124 | $ | 86,171 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.20 | %(D) | 1.20 | % | 1.20 | % | 1.20 | % | 1.20 | % | 1.20 | % | ||||||||||||
Gross expenses | 1.38 | %(D) | 1.36 | % | 1.34 | % | 1.25 | % | 1.29 | % | 1.29 | % | ||||||||||||
Net investment income | 1.70 | %(D) | 2.69 | % | 2.57 | % | 2.57 | % | 4.24 | %(A) | 2.74 | % | ||||||||||||
Portfolio turnover rate | 41 | %(C) | 39 | % | 38 | % | 31 | % | 26 | % | 56 | % |
Touchstone Premium Yield Equity Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 9.39 | $ | 8.75 | $ | 8.26 | $ | 9.97 | $ | 8.90 | $ | 8.10 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.04 | 0.17 | 0.15 | 0.17 | 0.33 | (A) | 0.16 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.11 | 0.64 | 1.04 | (1.24 | ) | 1.07 | 0.80 | |||||||||||||||||
Total from investment operations | 0.15 | 0.81 | 1.19 | (1.07 | ) | 1.40 | 0.96 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.08 | ) | (0.17 | ) | (0.15 | ) | (0.19 | ) | (0.33 | ) | (0.16 | ) | ||||||||||||
Realized capital gains | (0.18 | ) | — | (0.55 | ) | (0.45 | ) | — | — | |||||||||||||||
Total distributions | (0.26 | ) | (0.17 | ) | (0.70 | ) | (0.64 | ) | (0.33 | ) | (0.16 | ) | ||||||||||||
Net asset value at end of period | $ | 9.28 | $ | 9.39 | $ | 8.75 | $ | 8.26 | $ | 9.97 | $ | 8.90 | ||||||||||||
Total return(B) | 1.66 | %(C) | 9.42 | % | 15.81 | % | (11.45 | %) | 15.99 | % | 12.03 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 20,179 | $ | 22,324 | $ | 25,781 | $ | 31,405 | $ | 31,190 | $ | 24,009 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.95 | %(D) | 1.95 | % | 1.95 | % | 1.95 | % | 1.95 | % | 1.95 | % | ||||||||||||
Gross expenses | 2.06 | %(D) | 2.05 | % | 2.05 | % | 2.00 | % | 2.02 | % | 2.08 | % | ||||||||||||
Net investment income | 0.95 | %(D) | 1.94 | % | 1.82 | % | 1.82 | % | 3.49 | %(A) | 1.99 | % | ||||||||||||
Portfolio turnover rate | 41 | %(C) | 39 | % | 38 | % | 31 | % | 26 | % | 56 | % |
(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 1.70%, 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.
102 |
Financial Highlights (Continued)
Touchstone Premium Yield Equity Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 9.38 | $ | 8.75 | $ | 8.25 | $ | 9.97 | $ | 8.90 | $ | 8.10 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.09 | 0.26 | 0.23 | 0.26 | 0.43 | (A) | 0.25 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.11 | 0.63 | 1.05 | (1.25 | ) | 1.07 | 0.80 | |||||||||||||||||
Total from investment operations | 0.20 | 0.89 | 1.28 | (0.99 | ) | 1.50 | 1.05 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.13 | ) | (0.26 | ) | (0.23 | ) | (0.28 | ) | (0.43 | ) | (0.25 | ) | ||||||||||||
Realized capital gains | (0.18 | ) | — | (0.55 | ) | (0.45 | ) | — | — | |||||||||||||||
Total distributions | (0.31 | ) | (0.26 | ) | (0.78 | ) | (0.73 | ) | (0.43 | ) | (0.25 | ) | ||||||||||||
Net asset value at end of period | $ | 9.27 | $ | 9.38 | $ | 8.75 | $ | 8.25 | $ | 9.97 | $ | 8.90 | ||||||||||||
Total return | 2.18 | %(B) | 10.41 | % | 17.13 | % | (10.58 | %) | 17.13 | % | 13.14 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 76,925 | $ | 75,763 | $ | 99,953 | $ | 100,772 | $ | 109,201 | $ | 66,644 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.95 | %(C) | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | ||||||||||||
Gross expenses | 0.99 | %(C) | 1.00 | % | 1.03 | % | 0.97 | % | 0.96 | % | 1.04 | % | ||||||||||||
Net investment income | 1.95 | %(C) | 2.94 | % | 2.82 | % | 2.82 | % | 4.49 | %(A) | 2.99 | % | ||||||||||||
Portfolio turnover rate | 41 | %(B) | 39 | % | 38 | % | 31 | % | 26 | % | 56 | % |
(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 1.70%, respectively.
(B) Not annualized.
(C) Annualized.
See accompanying Notes to Financial Statements.
103 |
Financial Highlights (Continued)
Touchstone Sands Capital Select Growth Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 16.58 | $ | 16.14 | $ | 16.48 | $ | 18.15 | $ | 16.08 | $ | 12.65 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.10 | )(A) | (0.34 | ) | (0.28 | ) | (0.15 | ) | (0.29 | ) | (0.05 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | 2.01 | 2.94 | 1.47 | (0.64 | ) | 2.49 | 3.48 | |||||||||||||||||
Total from investment operations | 1.91 | 2.60 | 1.19 | (0.79 | ) | 2.20 | 3.43 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Realized capital gains | (3.36 | ) | (2.16 | ) | (1.53 | ) | (0.88 | ) | (0.13 | ) | — | |||||||||||||
Net asset value at end of period | $ | 15.13 | $ | 16.58 | $ | 16.14 | $ | 16.48 | $ | 18.15 | $ | 16.08 | ||||||||||||
Total return(B) | 13.53 | %(C) | 19.63 | % | 7.17 | % | (4.70 | %) | 13.73 | % | 27.11 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 89,215 | $ | 89,860 | $ | 138,315 | $ | 230,783 | $ | 289,506 | $ | 416,396 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.39 | %(D) | 1.23 | % | 1.07 | % | 1.10 | % | 1.31 | % | 1.28 | % | ||||||||||||
Gross expenses | 1.41 | %(D) | 1.25 | % | 1.09 | % | 1.10 | % | 1.33 | % | 1.37 | % | ||||||||||||
Net investment loss | (1.22 | %)(D) | (0.95 | %) | (0.81 | %) | (0.65 | %) | (0.91 | %) | (0.62 | %) | ||||||||||||
Portfolio turnover rate | 11 | %(C) | 22 | % | 46 | % | 29 | % | 30 | % | 37 | % |
Touchstone Sands Capital Select Growth Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 15.51 | $ | 15.36 | $ | 15.86 | $ | 17.62 | $ | 15.74 | $ | 12.47 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.14 | )(A) | (0.79 | ) | (0.52 | ) | (0.30 | ) | (0.32 | ) | (0.13 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | 1.86 | 3.10 | 1.55 | (0.58 | ) | 2.33 | 3.40 | |||||||||||||||||
Total from investment operations | 1.72 | 2.31 | 1.03 | (0.88 | ) | 2.01 | 3.27 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Realized capital gains | (3.36 | ) | (2.16 | ) | (1.53 | ) | (0.88 | ) | (0.13 | ) | — | |||||||||||||
Net asset value at end of period | $ | 13.87 | $ | 15.51 | $ | 15.36 | $ | 15.86 | $ | 17.62 | $ | 15.74 | ||||||||||||
Total return(B) | 13.11 | %(C) | 18.77 | % | 6.32 | % | (5.38 | %) | 12.89 | % | 26.14 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 73,815 | $ | 73,516 | $ | 111,951 | $ | 163,237 | $ | 203,865 | $ | 198,584 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 2.14 | %(D) | 1.98 | % | 1.82 | % | 1.85 | % | 2.06 | % | 2.03 | % | ||||||||||||
Gross expenses | 2.16 | %(D) | 2.01 | % | 1.84 | % | 1.85 | % | 2.09 | % | 2.14 | % | ||||||||||||
Net investment loss | (1.97 | %)(D) | (1.70 | %) | (1.56 | %) | (1.40 | %) | (1.65 | %) | (1.37 | %) | ||||||||||||
Portfolio turnover rate | 11 | %(C) | 22 | % | 46 | % | 29 | % | 30 | % | 37 | % |
(A) The net investment loss per share was 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.
104 |
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, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 17.29 | $ | 16.70 | $ | 16.96 | $ | 18.61 | $ | 16.44 | $ | 12.90 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.08 | )(A) | (0.10 | ) | (0.11 | ) | (0.08 | ) | (0.10 | ) | (0.02 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | 2.11 | 2.85 | 1.38 | (0.69 | ) | 2.40 | 3.56 | |||||||||||||||||
Total from investment operations | 2.03 | 2.75 | 1.27 | (0.77 | ) | 2.30 | 3.54 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Realized capital gains | (3.36 | ) | (2.16 | ) | (1.53 | ) | (0.88 | ) | (0.13 | ) | — | |||||||||||||
Net asset value at end of period | $ | 15.96 | $ | 17.29 | $ | 16.70 | $ | 16.96 | $ | 18.61 | $ | 16.44 | ||||||||||||
Total return | 13.68 | %(B) | 19.89 | % | 7.46 | % | (4.46 | %) | 14.04 | % | 27.44 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 1,794,066 | $ | 1,775,755 | $ | 2,209,841 | $ | 3,198,758 | $ | 3,473,661 | $ | 2,684,731 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.14 | %(C) | 0.98 | % | 0.82 | % | 0.83 | % | 1.06 | % | 1.03 | % | ||||||||||||
Gross expenses | 1.14 | %(C) | 0.99 | % | 0.82 | % | 0.83 | % | 1.03 | % | 1.06 | % | ||||||||||||
Net investment loss | (0.97 | %)(C) | (0.70 | %) | (0.56 | %) | (0.39 | %) | (0.66 | %) | (0.37 | %) | ||||||||||||
Portfolio turnover rate | 11 | %(B) | 22 | % | 46 | % | 29 | % | 30 | % | 37 | % |
Touchstone Sands Capital Select Growth Fund—Class Z
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 16.58 | $ | 16.15 | $ | 16.49 | $ | 18.15 | $ | 16.08 | $ | 12.65 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.10 | )(A) | (0.32 | ) | (0.29 | ) | (0.19 | ) | (0.17 | ) | (0.10 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | 2.03 | 2.91 | 1.48 | (0.59 | ) | 2.37 | 3.53 | |||||||||||||||||
Total from investment operations | 1.93 | 2.59 | 1.19 | (0.78 | ) | 2.20 | 3.43 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Realized capital gains | (3.36 | ) | (2.16 | ) | (1.53 | ) | (0.88 | ) | (0.13 | ) | — | |||||||||||||
Net asset value at end of period | $ | 15.15 | $ | 16.58 | $ | 16.15 | $ | 16.49 | $ | 18.15 | $ | 16.08 | ||||||||||||
Total return | 13.60 | %(B) | 19.62 | % | 7.24 | % | (4.70 | %) | 13.73 | % | 27.11 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 549,495 | $ | 556,651 | $ | 777,930 | $ | 1,292,853 | $ | 2,302,038 | $ | 2,140,884 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.38 | %(C) | 1.22 | % | 1.04 | % | 1.08 | % | 1.31 | % | 1.28 | % | ||||||||||||
Gross expenses | 1.45 | %(C) | 1.28 | % | 1.11 | % | 1.13 | % | 1.35 | % | 1.37 | % | ||||||||||||
Net investment loss | (1.21 | %)(C) | (0.94 | %) | (0.79 | %) | (0.64 | %) | (0.90 | %) | (0.62 | %) | ||||||||||||
Portfolio turnover rate | 11 | %(B) | 22 | % | 46 | % | 29 | % | 30 | % | 37 | % |
(A) The net investment loss per share was based on average shares outstanding for the period.
(B) Not annualized.
(C) Annualized.
See accompanying Notes to Financial Statements.
105 |
Financial Highlights (Continued)
Touchstone Small Cap Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 17.73 | $ | 16.24 | $ | 17.73 | $ | 20.55 | $ | 19.44 | $ | 16.02 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.30 | 0.02 | — | (A) | 0.15 | (B) | (0.09 | )(C) | 0.44 | |||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.33 | 1.47 | 0.59 | (1.38 | ) | 1.80 | 3.28 | |||||||||||||||||
Total from investment operations | 0.63 | 1.49 | 0.59 | (1.23 | ) | 1.71 | 3.72 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.34 | ) | — | (0.13 | ) | (— | )(A) | (0.31 | ) | (0.18 | ) | |||||||||||||
Realized capital gains | (2.99 | ) | — | (1.95 | ) | (1.59 | ) | (0.29 | ) | (0.12 | ) | |||||||||||||
Total distributions | (3.33 | ) | — | (2.08 | ) | (1.59 | ) | (0.60 | ) | (0.30 | ) | |||||||||||||
Net asset value at end of period | $ | 15.03 | $ | 17.73 | $ | 16.24 | $ | 17.73 | $ | 20.55 | $ | 19.44 | ||||||||||||
Total return(D) | 3.79 | %(E) | 9.17 | % | 3.74 | % | (6.36 | %) | 8.80 | % | 23.60 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 10,273 | $ | 12,461 | $ | 37,942 | $ | 62,423 | $ | 60,246 | $ | 122,394 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.38 | %(F) | 1.38 | % | 1.38 | % | 1.38 | % | 1.36 | % | 1.34 | % | ||||||||||||
Gross expenses | 1.68 | %(F) | 1.52 | % | 1.45 | % | 1.42 | % | 1.43 | % | 1.53 | % | ||||||||||||
Net investment income (loss) | 3.92 | %(F) | 0.00 | %(A) | 0.00 | %(A) | 0.75 | %(B) | (0.45 | %) | 2.47 | % | ||||||||||||
Portfolio turnover rate | 10 | %(E)(G) | 18 | % | 17 | % | 42 | % | 17 | % | 15 | % |
(A) Less than $0.005 per share or 0.005%.
(B) Reflects the impact of a corporate action event that resulted in a one-time increase to net investment income. If the corporate action
event had not occurred, the Class A net investment income per share and ratio of net investment income to average net assets would
have been lower by $0.13 and 0.65%, respectively.
(C) The net investment loss per share was 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 excludes securities delivered from processing a redemption-in-kind.
See accompanying Notes to Financial Statements.
106 |
Financial Highlights (Continued)
Touchstone Small Cap Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 16.94 | $ | 15.63 | $ | 17.16 | $ | 20.07 | $ | 19.01 | $ | 15.69 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.18 | (0.31 | ) | (0.16 | ) | — | (A)(B) | (0.24 | )(C) | 0.30 | ||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.36 | 1.62 | 0.60 | (1.32 | ) | 1.75 | 3.22 | |||||||||||||||||
Total from investment operations | 0.54 | 1.31 | 0.44 | (1.32 | ) | 1.51 | 3.52 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.19 | ) | — | (0.02 | ) | — | (0.16 | ) | (0.08 | ) | ||||||||||||||
Realized capital gains | (2.99 | ) | — | (1.95 | ) | (1.59 | ) | (0.29 | ) | (0.12 | ) | |||||||||||||
Total distributions | (3.18 | ) | — | (1.97 | ) | (1.59 | ) | (0.45 | ) | (0.20 | ) | |||||||||||||
Net asset value at end of period | $ | 14.30 | $ | 16.94 | $ | 15.63 | $ | 17.16 | $ | 20.07 | $ | 19.01 | ||||||||||||
Total return(D) | 3.38 | %(E) | 8.38 | % | 2.92 | % | (7.01 | %) | 7.96 | % | 22.69 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 7,067 | $ | 9,266 | $ | 14,957 | $ | 21,562 | $ | 27,104 | $ | 28,685 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 2.13 | %(F) | 2.13 | % | 2.13 | % | 2.13 | % | 2.12 | % | 2.09 | % | ||||||||||||
Gross expenses | 2.39 | %(F) | 2.28 | % | 2.23 | % | 2.17 | % | 2.17 | % | 2.24 | % | ||||||||||||
Net investment income (loss) | 3.17 | %(F) | (0.75 | %) | (0.75 | %) | 0.00 | %(A)(B) | (1.20 | %) | 1.72 | % | ||||||||||||
Portfolio turnover rate | 10 | %(E)(G) | 18 | % | 17 | % | 42 | % | 17 | % | 15 | % |
(A) | Less than $0.005 per share or 0.005%. |
(B) | Reflects the impact of a corporate action event that resulted in a one-time increase to net investment income. If the corporate action event had not occurred, the Class C net investment income per share and ratio of net investment income to average net assets would have been lower by $0.13 and 0.65%, respectively. |
(C) | The net investment loss per share was 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 excludes securities delivered from processing a redemption-in-kind. |
See accompanying Notes to Financial Statements.
107 |
Financial Highlights (Continued)
Touchstone Small Cap Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 17.94 | $ | 16.44 | $ | 17.93 | $ | 20.72 | $ | 19.59 | $ | 16.13 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.33 | 0.05 | 0.05 | 0.18 | (A) | (0.03 | )(B) | 0.46 | ||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.32 | 1.50 | 0.58 | (1.37 | ) | 1.81 | 3.34 | |||||||||||||||||
Total from investment operations | 0.65 | 1.55 | 0.63 | (1.19 | ) | 1.78 | 3.80 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.40 | ) | (0.05 | ) | (0.17 | ) | (0.01 | ) | (0.36 | ) | (0.22 | ) | ||||||||||||
Realized capital gains | (2.99 | ) | — | (1.95 | ) | (1.59 | ) | (0.29 | ) | (0.12 | ) | |||||||||||||
Total distributions | (3.39 | ) | (0.05 | ) | (2.12 | ) | (1.60 | ) | (0.65 | ) | (0.34 | ) | ||||||||||||
Net asset value at end of period | $ | 15.20 | $ | 17.94 | $ | 16.44 | $ | 17.93 | $ | 20.72 | $ | 19.59 | ||||||||||||
Total return | 3.90 | %(C) | 9.46 | % | 3.97 | % | (6.11 | %) | 9.12 | % | 24.01 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 60,454 | $ | 84,954 | $ | 295,198 | $ | 333,971 | $ | 309,367 | $ | 258,024 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.13 | %(D) | 1.13 | % | 1.13 | % | 1.11 | % | 1.06 | % | 1.03 | % | ||||||||||||
Gross expenses | 1.23 | %(D) | 1.15 | % | 1.14 | % | 1.11 | % | 1.08 | % | 1.14 | % | ||||||||||||
Net investment income (loss) | 4.17 | %(D) | 0.25 | % | 0.25 | % | 1.02 | %(A) | (0.15 | %) | 2.78 | % | ||||||||||||
Portfolio turnover rate | 10 | %(C)(E) | 18 | % | 17 | % | 42 | % | 17 | % | 15 | % |
Touchstone Small Cap Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 17.93 | $ | 16.43 | $ | 17.92 | $ | 20.69 | $ | 19.57 | $ | 16.11 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.38 | 0.16 | 0.07 | 0.24 | (A) | (0.02 | )(B) | 0.49 | ||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.28 | 1.41 | 0.57 | (1.41 | ) | 1.81 | 3.32 | |||||||||||||||||
Total from investment operations | 0.66 | 1.57 | 0.64 | (1.17 | ) | 1.79 | 3.81 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.45 | ) | (0.07 | ) | (0.18 | ) | (0.01 | ) | (0.38 | ) | (0.23 | ) | ||||||||||||
Realized capital gains | (2.99 | ) | — | (1.95 | ) | (1.59 | ) | (0.29 | ) | (0.12 | ) | |||||||||||||
Total distributions | (3.44 | ) | (0.07 | ) | (2.13 | ) | (1.60 | ) | (0.67 | ) | (0.35 | ) | ||||||||||||
Net asset value at end of period | $ | 15.15 | $ | 17.93 | $ | 16.43 | $ | 17.92 | $ | 20.69 | $ | 19.57 | ||||||||||||
Total return | 3.94 | %(C) | 9.57 | % | 4.05 | % | (6.01 | %) | 9.17 | % | 24.13 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 87,548 | $ | 122,876 | $ | 255,422 | $ | 301,868 | $ | 393,287 | $ | 395,770 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.05 | %(D) | 1.05 | % | 1.04 | % | 1.04 | % | 1.01 | % | 0.94 | % | ||||||||||||
Gross expenses | 1.09 | %(D) | 1.05 | % | 1.04 | % | 1.04 | % | 1.04 | % | 1.07 | % | ||||||||||||
Net investment income (loss) | 4.25 | %(D) | 0.34 | % | 0.34 | % | 1.10 | %(A) | (0.10 | %) | 2.87 | % | ||||||||||||
Portfolio turnover rate | 10 | %(C)(E) | 18 | % | 17 | % | 42 | % | 17 | % | 15 | % |
(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 and Institutional Class net investment income per share and ratio of net investment income to average net assets would have been lower by $0.13 and 0.65%, respectively. |
(B) | The net investment loss per share was based on average shares outstanding for the period. |
(C) | Not annualized. |
(D) | Annualized. |
(E) | Portfolio turnover excludes securities delivered from processing a redemption-in-kind. |
See accompanying Notes to Financial Statements.
108 |
Financial Highlights (Continued)
Touchstone Small Cap Value Fund—Class A | ||||||||||||||||||||||||
Selected Data for a Share Outstanding Throughout Each Period | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 26.06 | $ | 22.20 | $ | 20.17 | $ | 23.23 | $ | 22.79 | $ | 18.33 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.02 | 0.03 | 0.23 | 0.36 | 0.36 | 0.41 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.41 | ) | 3.85 | 2.80 | (2.15 | ) | 0.39 | 4.45 | ||||||||||||||||
Total from investment operations | (0.39 | ) | 3.88 | 3.03 | (1.79 | ) | 0.75 | 4.86 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (A) | (0.02 | ) | (0.27 | ) | (0.35 | ) | (0.31 | ) | (0.40 | ) | ||||||||||||
Realized capital gains | — | — | (0.73 | ) | (0.92 | ) | — | — | ||||||||||||||||
Total distributions | — | (0.02 | ) | (1.00 | ) | (1.27 | ) | (0.31 | ) | (0.40 | ) | |||||||||||||
Net asset value at end of period | $ | 25.67 | $ | 26.06 | $ | 22.20 | $ | 20.17 | $ | 23.23 | $ | 22.79 | ||||||||||||
Total return(B) | (1.49 | %)(C) | 17.46 | % | 15.63 | % | (8.32 | %) | 3.19 | % | 26.82 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 74,483 | $ | 76,884 | $ | 150,081 | $ | 24,659 | $ | 31,773 | $ | 34,826 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.38 | %(D) | 1.38 | % | 1.38 | % | 1.38 | % | 1.43 | % | 1.43 | % | ||||||||||||
Gross expenses | 1.78 | %(D) | 1.83 | % | 1.67 | % | 1.60 | % | 1.67 | % | 1.78 | % | ||||||||||||
Net investment income | 0.16 | %(D) | 0.07 | % | 1.05 | % | 1.51 | % | 1.44 | % | 1.98 | % | ||||||||||||
Portfolio turnover rate | 19 | %(C) | 63 | %(E) | 155 | % | 112 | % | 100 | %(F)(G) | 98 | % |
Touchstone Small Cap Value Fund—Class C | ||||||||||||||||||||||||
Selected Data for a Share Outstanding Throughout Each Period | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 25.60 | $ | 21.95 | $ | 19.98 | $ | 23.00 | $ | 22.61 | $ | 18.23 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | (0.13 | ) | (0.22 | ) | 0.06 | 0.17 | 0.16 | 0.29 | ||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.35 | ) | 3.87 | 2.77 | (2.10 | ) | 0.40 | 4.39 | ||||||||||||||||
Total from investment operations | (0.48 | ) | 3.65 | 2.83 | (1.93 | ) | 0.56 | 4.68 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | — | (0.13 | ) | (0.17 | ) | (0.17 | ) | (0.30 | ) | ||||||||||||||
Realized capital gains | — | — | (0.73 | ) | (0.92 | ) | — | — | ||||||||||||||||
Total distributions | — | — | (0.86 | ) | (1.09 | ) | (0.17 | ) | (0.30 | ) | ||||||||||||||
Net asset value at end of period | $ | 25.12 | $ | 25.60 | $ | 21.95 | $ | 19.98 | $ | 23.00 | $ | 22.61 | ||||||||||||
Total return(B) | (1.87 | %)(C) | 16.63 | % | 14.72 | % | (9.01 | %) | 2.46 | % | 25.90 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 1,059 | $ | 1,223 | $ | 1,376 | $ | 1,396 | $ | 2,169 | $ | 841 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 2.13 | %(D) | 2.13 | % | 2.13 | % | 2.13 | % | 2.18 | % | 2.18 | % | ||||||||||||
Gross expenses | 3.66 | %(D) | 3.69 | % | 3.39 | % | 3.13 | % | 3.25 | % | 5.19 | % | ||||||||||||
Net investment income (loss) | (0.59 | %)(D) | (0.68 | %) | 0.30 | % | 0.76 | % | 0.69 | % | 1.23 | % | ||||||||||||
Portfolio turnover rate | 19 | %(C) | 63 | %(E) | 155 | % | 112 | % | 100 | %(F)(G) | 98 | % |
(A) | Less than $0.005 per share. |
(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 securities delivered from processing a redemption-in-kind. |
(F) | Portfolio turnover excludes securities received from a subscription-in-kind. |
(G) | Portfolio turnover excludes the purchases and sales of securities of the Touchstone Small Company Value Fund acquired on March 21, 2014. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
109 |
Financial Highlights (Continued)
Touchstone Small Cap Value Fund—Class Y | ||||||||||||||||||||||||
Selected Data for a Share Outstanding Throughout Each Period | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 26.14 | $ | 22.24 | $ | 20.20 | $ | 23.25 | $ | 22.82 | $ | 18.36 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.05 | 0.06 | 0.24 | 0.42 | 0.35 | 0.48 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.41 | ) | 3.88 | 2.84 | (2.14 | ) | 0.46 | 4.44 | ||||||||||||||||
Total from investment operations | (0.36 | ) | 3.94 | 3.08 | (1.72 | ) | 0.81 | 4.92 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.07 | ) | (0.04 | ) | (0.31 | ) | (0.41 | ) | (0.38 | ) | (0.46 | ) | ||||||||||||
Realized capital gains | — | — | (0.73 | ) | (0.92 | ) | — | — | ||||||||||||||||
Total distributions | (0.07 | ) | (0.04 | ) | (1.04 | ) | (1.33 | ) | (0.38 | ) | (0.46 | ) | ||||||||||||
Net asset value at end of period | $ | 25.71 | $ | 26.14 | $ | 22.24 | $ | 20.20 | $ | 23.25 | $ | 22.82 | ||||||||||||
Total return | (1.37 | %)(A) | 17.80 | % | 15.86 | % | (8.08 | %) | 3.47 | % | 27.11 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 2,723 | $ | 2,829 | $ | 3,080 | $ | 4,419 | $ | 9,097 | $ | 769 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.13 | %(B) | 1.13 | % | 1.13 | % | 1.13 | % | 1.18 | % | 1.18 | % | ||||||||||||
Gross expenses | 1.94 | %(B) | 1.95 | % | 1.70 | % | 1.44 | % | 1.65 | % | 3.45 | % | ||||||||||||
Net investment income | 0.41 | %(B) | 0.32 | % | 1.30 | % | 1.76 | % | 1.70 | % | 2.23 | % | ||||||||||||
Portfolio turnover rate | 19 | %(A) | 63 | %(C) | 155 | % | 112 | % | 100 | %(D)(E) | 98 | % |
Touchstone Small Cap Value Fund—Institutional Class | ||||||||||||||||||||||||
Selected Data for a Share Outstanding Throughout Each Period | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 26.14 | $ | 22.22 | $ | 20.19 | $ | 23.24 | $ | 22.81 | $ | 18.35 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.17 | (0.06 | ) | 0.30 | 0.45 | 0.40 | 0.48 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.51 | ) | 4.04 | 2.80 | (2.13 | ) | 0.44 | 4.47 | ||||||||||||||||
Total from investment operations | (0.34 | ) | 3.98 | 3.10 | (1.68 | ) | 0.84 | 4.95 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.12 | ) | (0.06 | ) | (0.34 | ) | (0.45 | ) | (0.41 | ) | (0.49 | ) | ||||||||||||
Realized capital gains | — | — | (0.73 | ) | (0.92 | ) | — | — | ||||||||||||||||
Total distributions | (0.12 | ) | (0.06 | ) | (1.07 | ) | (1.37 | ) | (0.41 | ) | (0.49 | ) | ||||||||||||
Net asset value at end of period | $ | 25.68 | $ | 26.14 | $ | 22.22 | $ | 20.19 | $ | 23.24 | $ | 22.81 | ||||||||||||
Total return | (1.30 | %)(A) | 17.93 | % | 16.05 | % | (7.93 | %) | 3.59 | % | 27.30 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 17,335 | $ | 7,699 | $ | 23,740 | $ | 25,968 | $ | 29,831 | $ | 2,665 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.98 | %(B) | 0.98 | % | 0.98 | % | 0.98 | % | 1.03 | % | 1.03 | % | ||||||||||||
Gross expenses | 1.32 | %(B) | 1.52 | % | 1.22 | % | 1.19 | % | 1.30 | % | 1.83 | % | ||||||||||||
Net investment income | 0.56 | %(B) | 0.47 | % | 1.45 | % | 1.91 | % | 1.84 | % | 2.38 | % | ||||||||||||
Portfolio turnover rate | 19 | %(A) | 63 | %(C) | 155 | % | 112 | % | 100 | %(D)(E) | 98 | % |
(A) | Not annualized. |
(B) | Annualized. |
(C) | Portfolio turnover excludes securities delivered from processing a redemption-in-kind. |
(D) | Portfolio turnover excludes securities received from a subscription-in-kind. |
(E) | Portfolio turnover excludes the purchases and sales of securities of the Touchstone Small Company Value Fund acquired on March 21, 2014. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
110 |
Financial Highlights (Continued)
Touchstone Total Return Bond Fund—Class A | ||||||||||||||||||||||||
Selected Data for a Share Outstanding Throughout Each Period | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 10.13 | $ | 10.38 | $ | 10.19 | $ | 10.23 | $ | 10.07 | $ | 10.50 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.11 | 0.18 | 0.24 | 0.22 | 0.23 | 0.21 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.19 | ) | (0.17 | ) | 0.22 | 0.01 | 0.22 | (0.36 | ) | |||||||||||||||
Total from investment operations | (0.08 | ) | 0.01 | 0.46 | 0.23 | 0.45 | (0.15 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.13 | ) | (0.26 | ) | (0.27 | ) | (0.27 | ) | (0.29 | ) | (0.27 | ) | ||||||||||||
Realized capital gains | — | — | — | — | — | (0.01 | ) | |||||||||||||||||
Total distributions | (0.13 | ) | (0.26 | ) | (0.27 | ) | (0.27 | ) | (0.29 | ) | (0.28 | ) | ||||||||||||
Net asset value at end of period | $ | 9.92 | $ | 10.13 | $ | 10.38 | $ | 10.19 | $ | 10.23 | $ | 10.07 | ||||||||||||
Total return(A) | (0.82 | %)(B) | 0.15 | % | 4.57 | % | 2.24 | % | 4.53 | % | (1.48 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 6,147 | $ | 5,137 | $ | 8,639 | $ | 5,749 | $ | 5,144 | $ | 12,167 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.85 | %(C) | 0.85 | % | 0.87 | % | 0.90 | % | 0.90 | % | 0.90 | % | ||||||||||||
Gross expenses | 1.30 | %(C) | 1.22 | % | 1.25 | % | 1.26 | % | 1.25 | % | 1.10 | % | ||||||||||||
Net investment income | 2.19 | %(C) | 1.98 | % | 2.26 | % | 2.10 | % | 2.32 | % | 2.07 | % | ||||||||||||
Portfolio turnover rate | 7 | %(B) | 18 | % | 12 | % | 19 | % | 5 | % | 35 | % |
Touchstone Total Return Bond Fund—Class C | ||||||||||||||||||||||||
Selected Data for a Share Outstanding Throughout Each Period | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 10.12 | $ | 10.36 | $ | 10.18 | $ | 10.21 | $ | 10.05 | $ | 10.49 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.08 | 0.11 | 0.15 | 0.14 | 0.15 | 0.11 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.20 | ) | (0.17 | ) | 0.22 | 0.02 | 0.22 | (0.35 | ) | |||||||||||||||
Total from investment operations | (0.12 | ) | (0.06 | ) | 0.37 | 0.16 | 0.37 | (0.24 | ) | |||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.09 | ) | (0.18 | ) | (0.19 | ) | (0.19 | ) | (0.21 | ) | (0.19 | ) | ||||||||||||
Realized capital gains | — | — | — | — | — | (0.01 | ) | |||||||||||||||||
Total distributions | (0.09 | ) | (0.18 | ) | (0.19 | ) | (0.19 | ) | (0.21 | ) | (0.20 | ) | ||||||||||||
Net asset value at end of period | $ | 9.91 | $ | 10.12 | $ | 10.36 | $ | 10.18 | $ | 10.21 | $ | 10.05 | ||||||||||||
Total return(A) | (1.21 | %)(B) | (0.51 | %) | 3.70 | % | 1.60 | % | 3.75 | % | (2.33 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 1,275 | $ | 1,876 | $ | 2,813 | $ | 2,368 | $ | 1,634 | $ | 2,455 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.60 | %(C) | 1.60 | % | 1.62 | % | 1.65 | % | 1.65 | % | 1.65 | % | ||||||||||||
Gross expenses | 2.64 | %(C) | 2.30 | % | 2.19 | % | 2.27 | % | 2.47 | % | 2.10 | % | ||||||||||||
Net investment income | 1.44 | %(C) | 1.23 | % | 1.51 | % | 1.35 | % | 1.57 | % | 1.32 | % | ||||||||||||
Portfolio turnover rate | 7 | %(B) | 18 | % | 12 | % | 19 | % | 5 | % | 35 | % |
(A) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(B) | Not annualized. |
(C) | Annualized. |
See accompanying Notes to Financial Statements.
111 |
Financial Highlights (Continued)
Touchstone Total Return Bond Fund—Class Y | ||||||||||||||||||||||||
Selected Data for a Share Outstanding Throughout Each Period | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 10.15 | $ | 10.39 | $ | 10.20 | $ | 10.24 | $ | 10.08 | $ | 10.52 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.12 | 0.24 | 0.26 | 0.25 | 0.26 | 0.23 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.20 | ) | (0.19 | ) | 0.23 | 0.01 | 0.22 | (0.36 | ) | |||||||||||||||
Total from investment operations | (0.08 | ) | 0.05 | 0.49 | 0.26 | 0.48 | (0.13 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.14 | ) | (0.29 | ) | (0.30 | ) | (0.30 | ) | (0.32 | ) | (0.30 | ) | ||||||||||||
Realized capital gains | — | — | — | — | — | (0.01 | ) | |||||||||||||||||
Total distributions | (0.14 | ) | (0.29 | ) | (0.30 | ) | (0.30 | ) | (0.32 | ) | (0.31 | ) | ||||||||||||
Net asset value at end of period | $ | 9.93 | $ | 10.15 | $ | 10.39 | $ | 10.20 | $ | 10.24 | $ | 10.08 | ||||||||||||
Total return | (0.80 | %)(A) | 0.50 | % | 4.82 | % | 2.51 | % | 4.84 | % | (1.32 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 49,340 | $ | 37,233 | $ | 49,484 | $ | 39,751 | $ | 19,397 | $ | 19,635 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.60 | %(B) | 0.60 | % | 0.62 | % | 0.65 | % | 0.61 | % | 0.62 | % | ||||||||||||
Gross expenses | 0.69 | %(B) | 0.73 | % | 0.71 | % | 0.70 | % | 0.68 | % | 0.71 | % | ||||||||||||
Net investment income | 2.44 | %(B) | 2.23 | % | 2.51 | % | 2.35 | % | 2.61 | % | 2.34 | % | ||||||||||||
Portfolio turnover rate | 7 | %(A) | 18 | % | 12 | % | 19 | % | 5 | % | 35 | % |
Touchstone Total Return Bond Fund — Institutional Class | ||||||||||||||||||||||||
Selected Data for a Share Outstanding Throughout Each Period | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 10.14 | $ | 10.39 | $ | 10.20 | $ | 10.24 | $ | 10.08 | $ | 10.51 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.12 | 0.25 | 0.28 | 0.26 | 0.27 | 0.25 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.19 | ) | (0.20 | ) | 0.22 | 0.01 | 0.22 | (0.36 | ) | |||||||||||||||
Total from investment operations | (0.07 | ) | 0.05 | 0.50 | 0.27 | 0.49 | (0.11 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.14 | ) | (0.30 | ) | (0.31 | ) | (0.31 | ) | (0.33 | ) | (0.31 | ) | ||||||||||||
Realized capital gains | — | — | — | — | — | (0.01 | ) | |||||||||||||||||
Total distributions | (0.14 | ) | (0.30 | ) | (0.31 | ) | (0.31 | ) | (0.33 | ) | (0.32 | ) | ||||||||||||
Net asset value at end of period | $ | 9.93 | $ | 10.14 | $ | 10.39 | $ | 10.20 | $ | 10.24 | $ | 10.08 | ||||||||||||
Total return | (0.65 | %)(A) | 0.51 | % | 4.94 | % | 2.65 | % | 4.96 | % | (1.09 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 248,000 | $ | 222,013 | $ | 166,008 | $ | 134,877 | $ | 116,404 | $ | 133,051 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.50 | %(B) | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | ||||||||||||
Gross expenses | 0.59 | %(B) | 0.60 | % | 0.60 | % | 0.61 | % | 0.60 | % | 0.60 | % | ||||||||||||
Net investment income | 2.54 | %(B) | 2.33 | % | 2.63 | % | 2.50 | % | 2.72 | % | 2.47 | % | ||||||||||||
Portfolio turnover rate | 7 | %(A) | 18 | % | 12 | % | 19 | % | 5 | % | 35 | % |
(A) | Not annualized. |
(B) | Annualized. |
See accompanying Notes to Financial Statements.
112 |
Financial Highlights (Continued)
Touchstone Ultra Short Duration Fixed Income Fund—Class A | ||||||||||||||||||||||||
Selected Data for a Share Outstanding Throughout Each Period | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 9.29 | $ | 9.32 | $ | 9.32 | $ | 9.41 | $ | 9.45 | $ | 9.56 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.06 | 0.13 | 0.10 | 0.06 | 0.06 | 0.09 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.01 | ) | (0.02 | ) | 0.02 | (0.03 | ) | 0.03 | (0.04 | ) | ||||||||||||||
Total from investment operations | 0.05 | 0.11 | 0.12 | 0.03 | 0.09 | 0.05 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.08 | ) | (0.14 | ) | (0.12 | ) | (0.12 | ) | (0.13 | ) | (0.16 | ) | ||||||||||||
Net asset value at end of period | $ | 9.26 | $ | 9.29 | $ | 9.32 | $ | 9.32 | $ | 9.41 | $ | 9.45 | ||||||||||||
Total return(A) | 0.50 | %(B) | 1.29 | % | 1.35 | % | 0.31 | % | 0.92 | % | 0.48 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 85,129 | $ | 14,080 | $ | 16,946 | $ | 10,675 | $ | 10,596 | $ | 32,088 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.69 | %(C) | 0.69 | % | 0.69 | % | 0.69 | % | 0.69 | % | 0.69 | % | ||||||||||||
Gross expenses | 0.79 | %(C) | 0.90 | % | 0.97 | % | 0.99 | % | 0.93 | % | 0.83 | % | ||||||||||||
Net investment income | 1.75 | %(C) | 1.40 | % | 1.09 | % | 0.54 | % | 0.79 | % | 0.85 | % | ||||||||||||
Portfolio turnover rate | 79 | %(B)(D) | 136 | % | 169 | % | 132 | % | 142 | % | 107 | %(E) |
Touchstone Ultra Short Duration Fixed Income Fund—Class C | ||||||||||||||||||||||||
Selected Data for a Share Outstanding Throughout Each Period | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 9.29 | $ | 9.32 | $ | 9.32 | $ | 9.41 | $ | 9.45 | $ | 9.56 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.06 | 0.08 | 0.06 | — | (F) | 0.02 | 0.04 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.03 | ) | (0.02 | ) | 0.02 | (0.02 | ) | 0.02 | (0.04 | ) | ||||||||||||||
Total from investment operations | 0.03 | 0.06 | 0.08 | (0.02 | ) | 0.04 | — | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.06 | ) | (0.09 | ) | (0.08 | ) | (0.07 | ) | (0.08 | ) | (0.11 | ) | ||||||||||||
Net asset value at end of period | $ | 9.26 | $ | 9.29 | $ | 9.32 | $ | 9.32 | $ | 9.41 | $ | 9.45 | ||||||||||||
Total return(A) | 0.25 | %(B) | 0.77 | % | 0.84 | % | (0.19 | %) | 0.42 | % | (0.02 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 5,454 | $ | 5,704 | $ | 7,961 | $ | 8,291 | $ | 11,272 | $ | 13,568 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.19 | %(C) | 1.19 | % | 1.19 | % | 1.19 | % | 1.19 | % | 1.19 | % | ||||||||||||
Gross expenses | 1.65 | %(C) | 1.56 | % | 1.54 | % | 1.48 | % | 1.44 | % | 1.39 | % | ||||||||||||
Net investment income | 1.25 | %(C) | 0.90 | % | 0.59 | % | 0.04 | % | 0.29 | % | 0.35 | % | ||||||||||||
Portfolio turnover rate | 79 | %(B)(D) | 136 | % | 169 | % | 132 | % | 142 | % | 107 | %(E) |
(A) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(B) | Not annualized. |
(C) | Annualized. |
(D) | Portfolio turnover excludes the purchases and sales of securities of the Sentinel Low Duration Bond Fund acquired on October 27, 2017 (See Note 9 in the Notes to Financial Statements). If these transactions were included, portfolio turnover would have been higher. |
(E) | Portfolio turnover excludes the purchases and sales of securities of the Touchstone Short Duration Fixed Income Fund acquired on May 17, 2013. If these transactions were included, portfolio turnover would have been higher. |
(F) | Less than $0.005 per share. |
See accompanying Notes to Financial Statements.
113 |
Financial Highlights (Continued)
Touchstone Ultra Short Duration Fixed Income Fund—Class S | ||||
Selected Data for a Share Outstanding Throughout the Period | ||||
Period | ||||
Ended | ||||
March 31, | ||||
2018(A) | ||||
(Unaudited) | ||||
Net asset value at beginning of period | $ | 9.29 | ||
Income (loss) from investment operations: | ||||
Net investment income | 0.06 | |||
Net realized and unrealized gains (losses) on investments | (0.04 | ) | ||
Total from investment operations | 0.02 | |||
Distributions from: | ||||
Net investment income | (0.06 | ) | ||
Net asset value at end of period | $ | 9.25 | ||
Total return | 0.26 | %(B) | ||
Ratios and supplemental data: | ||||
Net assets at end of period (000's) | $ | 158,079 | ||
Ratio to average net assets: | ||||
Net expenses | 0.92 | %(C) | ||
Gross expenses | 0.95 | %(C) | ||
Net investment income | 1.52 | %(C) | ||
Portfolio turnover rate | 79 | %(B)(D) |
Touchstone Ultra Short Duration Fixed Income Fund—Class Y | ||||||||||||||||||||||||
Selected Data for a Share Outstanding Throughout Each Period | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 9.29 | $ | 9.32 | $ | 9.32 | $ | 9.41 | $ | 9.45 | $ | 9.56 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.09 | 0.15 | 0.13 | 0.07 | 0.10 | 0.12 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.03 | ) | (0.02 | ) | 0.02 | (0.02 | ) | 0.01 | (0.05 | ) | ||||||||||||||
Total from investment operations | 0.06 | 0.13 | 0.15 | 0.05 | 0.11 | 0.07 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.10 | ) | (0.16 | ) | (0.15 | ) | (0.14 | ) | (0.15 | ) | (0.18 | ) | ||||||||||||
Net asset value at end of period | $ | 9.25 | $ | 9.29 | $ | 9.32 | $ | 9.32 | $ | 9.41 | $ | 9.45 | ||||||||||||
Total return | 0.51 | %(B) | 1.55 | % | 1.60 | % | 0.56 | % | 1.17 | % | 0.74 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 270,349 | $ | 260,830 | $ | 206,313 | $ | 200,456 | $ | 244,885 | $ | 249,250 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.44 | %(C) | 0.44 | % | 0.44 | % | 0.44 | % | 0.44 | % | 0.44 | % | ||||||||||||
Gross expenses | 0.49 | %(C) | 0.51 | % | 0.53 | % | 0.52 | % | 0.49 | % | 0.51 | % | ||||||||||||
Net investment income | 2.00 | %(C) | 1.65 | % | 1.34 | % | 0.79 | % | 1.04 | % | 1.10 | % | ||||||||||||
Portfolio turnover rate | 79 | %(B)(D) | 136 | % | 169 | % | 132 | % | 142 | % | 107 | %(E) |
(A) | Represents the period from commencement of operations (October 27, 2017) through March 31, 2018. |
(B) | Not annualized. |
(C) | Annualized. |
(D) | Portfolio turnover excludes the purchases and sales of securities of the Sentinel Low Duration Bond Fund acquired on October 27, 2017 (See Note 9 in the Notes to Financial Statements). If these transactions were included, portfolio turnover would have been higher. |
(E) | Portfolio turnover excludes the purchases and sales of securities of the Touchstone Short Duration Fixed Income Fund acquired on May 17, 2013. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
114 |
Financial Highlights (Continued)
Touchstone Ultra Short Duration Fixed Income Fund—Class Z | ||||||||||||||||||||||||
Selected Data for a Share Outstanding Throughout Each Period | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 9.29 | $ | 9.32 | $ | 9.32 | $ | 9.41 | $ | 9.45 | $ | 9.56 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.08 | 0.13 | 0.10 | 0.05 | 0.08 | 0.09 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investment | (0.03 | ) | (0.02 | ) | 0.02 | (0.02 | ) | 0.01 | (0.04 | ) | ||||||||||||||
Total from investment operations | 0.05 | 0.11 | 0.12 | 0.03 | 0.09 | 0.05 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.08 | ) | (0.14 | ) | (0.12 | ) | (0.12 | ) | (0.13 | ) | (0.16 | ) | ||||||||||||
Net asset value at end of period | $ | 9.26 | $ | 9.29 | $ | 9.32 | $ | 9.32 | $ | 9.41 | $ | 9.45 | ||||||||||||
Total return | 0.50 | %(A) | 1.29 | % | 1.35 | % | 0.31 | % | 0.91 | % | 0.52 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 182,824 | $ | 211,797 | $ | 245,252 | $ | 304,553 | $ | 401,851 | $ | 381,554 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.69 | %(B) | 0.69 | % | 0.69 | % | 0.69 | % | 0.69 | % | 0.65 | % | ||||||||||||
Gross expenses | 0.78 | %(B) | 0.78 | % | 0.79 | % | 0.76 | % | 0.76 | % | 0.73 | % | ||||||||||||
Net investment income | 1.75 | %(B) | 1.40 | % | 1.09 | % | 0.54 | % | 0.79 | % | 0.89 | % | ||||||||||||
Portfolio turnover rate | 79 | %(A)(C) | 136 | % | 169 | % | 132 | % | 142 | % | 107 | %(D) |
Touchstone Ultra Short Duration Fixed Income Fund—Institutional Class | ||||||||||||||||||||||||
Selected Data for a Share Outstanding Throughout Each Period | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2018 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 9.29 | $ | 9.32 | $ | 9.32 | $ | 9.41 | $ | 9.45 | $ | 9.56 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.09 | 0.16 | 0.13 | 0.08 | 0.10 | 0.14 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.03 | ) | (0.02 | ) | 0.02 | (0.02 | ) | 0.01 | (0.07 | ) | ||||||||||||||
Total from investment operations | 0.06 | 0.14 | 0.15 | 0.06 | 0.11 | 0.07 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.10 | ) | (0.17 | ) | (0.15 | ) | (0.15 | ) | (0.15 | ) | (0.18 | ) | ||||||||||||
Net asset value at end of period | $ | 9.25 | $ | 9.29 | $ | 9.32 | $ | 9.32 | $ | 9.41 | $ | 9.45 | ||||||||||||
Total return | 0.65 | %(A) | 1.60 | % | 1.54 | % | 0.61 | % | 1.22 | % | 0.78 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 240,161 | $ | 257,777 | $ | 142,913 | $ | 49,389 | $ | 50,853 | $ | 59,662 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.39 | %(B) | 0.39 | % | 0.39 | % | 0.39 | % | 0.39 | % | 0.39 | % | ||||||||||||
Gross expenses | 0.45 | %(B) | 0.45 | % | 0.46 | % | 0.48 | % | 0.48 | % | 0.52 | % | ||||||||||||
Net investment income | 2.05 | %(B) | 1.70 | % | 1.39 | % | 0.84 | % | 1.09 | % | 1.15 | % | ||||||||||||
Portfolio turnover rate | 79 | %(A)(C) | 136 | % | 169 | % | 132 | % | 142 | % | 107 | %(D) |
(A) | Not annualized. |
(B) | Annualized. |
(C) | Portfolio turnover excludes the purchases and sales of securities of the Sentinel Low Duration Bond Fund acquired on October 27, 2017 (See Note 9 in the Notes to Financial Statements). If these transactions were included, portfolio turnover would have been higher. |
(D) | Portfolio turnover excludes the purchases and sales of securities of the Touchstone Short Duration Fixed Income Fund acquired on May 17, 2013. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
115 |
March 31, 2018 (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 an Agreement and Declaration of Trust dated October 25, 1993. The Trust consists of the following thirteen funds (individually, a “Fund,” and collectively, the “Funds”):
Touchstone Active Bond Fund (“Active Bond Fund”)
Touchstone Arbitrage Fund (“Arbitrage Fund”)
Touchstone Emerging Markets Small Cap Fund (“Emerging Markets Small Cap Fund”)
Touchstone High Yield Fund (“High Yield 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 Fund (“Small Cap 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 diversified, with the exception of the Arbitrage Fund, the Merger Arbitrage Fund, the Sands Capital Select Growth Fund and the Small Cap Fund, which are non-diversified.
The Agreement and Declaration of Trust permits the Trust to issue an unlimited number of shares of beneficial interest of each Fund. The table below indicates the classes of shares that each Fund is registered to offer:
Institutional | ||||||
Class A | Class C | Class S | Class Y | Class Z | Class | |
Active Bond Fund | X | X | X | X | ||
Arbitrage Fund | X | X | X | X | ||
Emerging Markets Small Cap Fund | X | X | X | X | ||
High Yield 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 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 | 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 goal, policies, and strategies along with information on the classes of shares currently being offered.
2. Significant Accounting Policies
The following is a summary of the Funds’ significant accounting policies:
Each Fund is an investment company that follows the accounting and reporting guidance of Accounting Standards Codification Topic 946 applicable to investment companies.
Security valuation and fair value measurements — U.S. generally accepted accounting principles (“U.S. GAAP”) define fair value as the price the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. All investments in securities are recorded
116 |
Notes to Financial Statements (Unaudited) (Continued)
at their fair value. The Funds define the term “market value”, as used throughout this report, as the estimated fair value. The Funds use various methods to measure fair value of their portfolio securities on a recurring basis. U.S. GAAP fair value measurement standards require disclosure of a hierarchy that prioritizes inputs to valuation methods.
These inputs are summarized in the three broad levels listed below:
· | Level 1 – | quoted prices in active markets for identical securities |
· | Level 2 – | other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
· | Level 3 – | significant unobservable inputs (including a Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The aggregate value by input level, as of March 31, 2018, 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 Arbitrage Fund and Merger Arbitrage Fund held Level 3 categorized securities during the six months ended March 31, 2018. Refer to the Portfolio of Investments for a reconciliation of Level 3 holdings.
Changes in valuation techniques may result in transfers into or out of an investment’s assigned level within the hierarchy. All transfers in and out of the levels are recognized at the value at the end of the period. At March 31, 2018, there were no transfers between Levels 1, 2 and 3 for the Funds, except as shown in the Portfolio of Investments for the Merger Arbitrage Fund and the Emerging Markets Small Cap Fund.
During the six months ended March 31, 2018, there were no material changes to the valuation policies and techniques.
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 or at the times of which the NYSE establishes official closing prices). Portfolio securities traded on stock exchanges are valued at the last reported sale price, official close price, or last bid price if no sales are reported. Portfolio securities quoted by NASDAQ are valued at the NASDAQ Official Closing Price (“NOCP”) or from the primary exchange on which the security trades. To the extent these securities are actively traded, they are categorized in Level 1 of the fair value hierarchy. Options are valued at the last quoted sales price. If there is no such reported sale on 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 on the valuation date and are categorized in Level 1. Shares of mutual funds in which the Funds invest are valued at their respective net asset values (“NAV”) as reported by the underlying funds (the “Underlying Funds”) and are categorized in Level 1.
Debt securities held by the Funds are valued at their evaluated bid by an independent pricing service or at their last broker-quoted bid prices as obtained from one or more of the major market makers for such securities. Independent pricing services use information provided by market makers or estimates of market values through accepted market modeling conventions. Observable inputs to the models may include prepayment speeds, pricing spread, yield, trade information, dealer quotes, market color, cash flow models, the securities’ terms and conditions, among others, and are generally categorized in Level 2. The Active Bond Fund’s and Ultra Short Duration Fixed Income Fund’s investments in bank loans are normally valued at the bid quotation obtained from dealers in loans by an independent pricing service in accordance with the Funds’ valuation policies and
117 |
Notes to Financial Statements (Unaudited) (Continued)
procedures approved by the Funds’ Board of Trustees (the “Board”), and are generally categorized in Level 2. The Ultra Short Duration Fixed Income Fund’s investments in asset-backed and mortgage-backed securities are valued by independent pricing services using models that consider estimated cash flows of each tranche of the security, establish a benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche, and are generally categorized in Level 2. Debt securities with remaining maturities of 60 days or less may be valued at amortized cost, provided such amount approximates market value and are categorized in Level 2. While this method provides consistency in valuation (and may only be used if it approximates market value), it may result in periods during which fair value, as determined by amortized cost, is higher or lower than the price that would be received if the Fund sold the investment.
Foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined as of the close of regular trading on the NYSE. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available and are categorized in Level 2.
Securities mainly traded on a non-U.S. exchange or denominated in foreign currencies are generally valued according to the preceding closing values on that exchange, translated to U.S. dollars using currency exchange rates as of the close of regular trading on the NYSE, and are generally categorized in Level 1. However, if an event that may change the value of a security occurs after the time that the closing value on the non-U.S. exchange was determined, but before the close of regular trading on the NYSE, the security may be priced based on fair value and is generally categorized in Level 2. This may cause the value of the security, if held on the books of a Fund, to be different from the closing value on the non-U.S. exchange and may affect the calculation of that Fund’s NAV.
The Funds may use fair value pricing under the following circumstances, among others:
· | If the value of a security has been materially affected by events occurring before the Funds’ pricing time but after the close of the primary markets on which the security is traded. |
· | If the exchange on which a portfolio security is principally traded closes early or if trading in a particular portfolio security was halted during the day and did not resume prior to the Funds’ NAV calculation. |
· | If a security is so thinly traded that reliable market quotations are unavailable due to infrequent trading. |
· | If the validity of market quotations is not reliable. |
Securities held by the Funds that do not have readily available market quotations, significant observable inputs, or securities for which the available market quotations are not reliable, are priced at their estimated fair value using procedures approved by the Funds’ Board and are generally categorized in Level 3.
Bank Loans — The Active Bond Fund and Ultra Short Duration Fixed Income Fund may invest in bank loans, which usually take the form of loan participations and assignments. Loan participations and assignments are agreements to make money available to U.S. or foreign corporations, partnerships or other business entities (the “Borrower”) in a specified amount, at a specified rate and within a specified time. A loan is typically originated, negotiated and structured by a U.S. or foreign bank, insurance company or other financial institution (the “Agent”) for a group of loan investors (“Loan Investors”). The Agent typically administers and enforces the loan on behalf of the other Loan Investors in the syndicate and may hold any collateral on behalf of the Loan Investors. Such loan participations and assignments are typically senior, secured and collateralized in nature. The Fund records an investment when the Borrower withdraws money and records interest as earned. These loans pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. These base lending rates are generally the prime rate offered by a designated U.S. bank or London InterBank Offered Rate (“LIBOR”).
The loans in which the Fund invests may be subject to some restrictions on resale. For example, the Fund may be contractually obligated to receive approval from the Agent and/or Borrower prior to the sale of these investments.
118 |
Notes to Financial Statements (Unaudited) (Continued)
The Fund generally has no right to enforce compliance with the terms of the loan agreement with the Borrower. As a result, the Fund assumes the credit risk of the Borrower, the selling participant and any other persons interpositioned between the Fund and the Borrower (“Intermediate Participants”). In the event that the Borrower, selling participant or Intermediate Participants become insolvent or enter into bankruptcy, the Fund may incur certain costs and delays in realizing payment or may suffer a loss of principal and/or interest.
Unfunded commitments represent the remaining obligation of the Fund to the Borrower. At any point in time, up to the maturity date of the issue, the Borrower may demand the unfunded portion. Until demanded by the Borrower, unfunded commitments are not recognized as an asset on the Statement of Assets and Liabilities. Unrealized appreciation/depreciation on unfunded commitments presented on the Statement of Assets and Liabilities represents fair value of the unfunded portion of the Fund’s bank loans. As of March 31, 2018, the Funds did not hold any unfunded loan commitments.
Collateralized Loan Obligations — The Ultra Short Duration Fixed Income Fund may invest in collateralized loan obligations (“CLOs”). CLOs are types of asset-backed securities. A CLO is an entity that is backed by syndicated bank loans. The cash flows of the CLO can be split into multiple segments, called “tranches,” which will vary in risk profile and yield. The riskiest segment is the subordinated or “equity” tranche. This tranche bears the greatest risk of defaults from the underlying assets in the CLO and serves to protect the other, more senior, tranches from default in all but the most severe circumstances. Since it is shielded from defaults by the more junior tranches, a “senior” tranche will typically have higher credit ratings and lower yields than their underlying securities, and often receive investment grade ratings from one or more of the nationally recognized rating agencies. Despite the protection from the more junior tranches, senior tranches can experience substantial losses due to actual defaults, increased sensitivity to future defaults and the disappearance of one or more protecting tranches as a result of changes in the credit profile of the underlying pool of assets.
Investment companies — The Funds may invest in securities of other investment companies, including exchange-traded funds (“ETFs”), open-end funds and closed-end funds. Open-end funds are investment companies that issue new shares continuously and redeem shares daily. Closed-end funds are investment companies that typically issue a fixed number of shares that trade on a securities exchange or over-the-counter (“OTC”). An ETF is an investment company that typically seeks to track the performance of an index by holding in its portfolio shares of all the companies, or a representative sample of the companies, that are components of a particular index. ETF shares are traded on a securities exchange based on their market value. The risks of investment in other investment companies typically reflect the risks of the types of securities in which the other investment companies invest. Investments in ETFs and closed-end funds are subject to the additional risk that their shares may trade at a premium or discount to their NAV. When a Fund invests in another investment company, shareholders of the Fund indirectly bear their proportionate share of the other investment company’s fees and expenses, including operating, registration, trustee, licensing, and marketing, as well as their share of the Fund’s fees and expenses.
Securities sold short — The Funds may engage in selling securities short, which obligates the Fund to replace a security borrowed by purchasing the same security at the current market value. The 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. The Fund would realize a gain if the price of the security declines between those dates. As of March 31, 2018, the Arbitrage Fund and Merger Arbitrage Fund had securities sold short with a fair value of $(24,473,518) and $(14,344,506), respectively, and pledged securities with a fair value of $36,352,073 and $47,901,941, respectively, as collateral. Arbitrage Fund pledged cash collateral of $5,166,076 for both securities sold short and written options and Merger Arbitrage Fund had a related due to prime broker balance of $12,828,367.
119 |
Notes to Financial Statements (Unaudited) (Continued)
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 and/or purchasing call or put 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 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 writer 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 purchaser 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. As of March 31, 2018, the Arbitrage Fund and Merger Arbitrage Fund had written options with a fair value of ($189,222) and ($158,166), respectively, and pledged securities with a fair value of $36,352,073 and $47,901,941, respectively, as collateral. Arbitrage Fund pledged cash collateral of $5,166,076 for both securities sold short and written options and Merger Arbitrage Fund had a related due to prime broker balance of $12,828,367. The Arbitrage Fund and Merger Arbitrage Fund held purchased options with a fair value of $227,118 and $183,304, respectively, as of March 31, 2018.
Warrants — The Funds can invest in warrants and stock purchase rights of companies of any market capitalization. A warrant gives the company the right to buy stock, typically from the issuer. The warrant specifies the amount of underlying stock, the purchase (or “exercise”) price, and the date the warrant expires. Certain warrants may permit, without legal obligation, net settlement for stock or cash. The Funds have no obligation to exercise the warrant and buy the stock.
Futures Contracts — The Active Bond Fund may buy and sell futures contracts and related options to manage its exposure to changing interest rates and securities prices. Some strategies reduce the Fund’s exposure to price fluctuations, while others tend to increase its market exposure. Futures and options on futures can be volatile instruments and involve certain risks that could negatively impact the Fund’s return. In order to avoid leveraging and related risks, when the Fund purchases futures contracts, it will collateralize its position by depositing an amount of cash or liquid securities, equal to the market value of the futures positions held, less margin deposits, in a segregated account with its custodian or otherwise “cover” its position in a manner consistent with the 1940 Act or the rules of the Securities and Exchange Commission (the “SEC”) or interpretations thereunder. Collateral equal to the current fair value of the futures position will be determined on a daily basis.
When the contract is closed, the Fund records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transactions and the Fund’s basis in the contract. Risks of entering into futures contracts include the possibility that a change in the value of the contract may not correlate with the changes in the value of the underlying instruments. Second, it is possible that a lack of liquidity for futures contracts could exist in the secondary market resulting in an inability to close a futures position prior to its maturity date. Third, the purchase of a futures contract involves the risk that the Fund could lose more than the original margin deposit required to initiate the futures transaction. Finally, the risk exists that losses could exceed amounts
120 |
Notes to Financial Statements (Unaudited) (Continued)
disclosed on the Statements of Assets and Liabilities. There is minimal counterparty credit risk involved in entering into futures contracts since they are exchange-traded instruments and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.
As of March 31, 2018, the Active Bond Fund did not hold any futures contracts.
Foreign currency translation — The books and records of the Funds are maintained in U.S. dollars and translated into U.S. dollars on the following basis:
(1) market value of investment securities, assets and liabilities at the current rate of exchange on the valuation date; and
(2) purchases and sales of investment securities, income, and expenses at the relevant rates of exchange prevailing on the respective dates of such transactions.
The Funds do not isolate that portion of gains and losses on investments in equity securities that is due to changes in the foreign exchange rates from that which is due to changes in market prices of equity securities.
Forward foreign currency contracts — A forward foreign currency contract is an agreement between two parties to buy and sell a specific currency at a price that is set on the date of the contract. The forward contract calls for delivery of the currency on a future date that is specified in the contract. Risks related to the use of forwards include the possible failure of counterparties to meet the terms of the forward agreement, the failure of the counterparties to timely post collateral, the risk that currency movements will not occur thereby reducing a Fund’s total return, and the potential for losses in excess of a Fund’s initial investment.
The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked to market daily and the change in value is recorded by a Fund as an unrealized gain or loss. Realized gains or losses, equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed, are recorded upon delivery or receipt of the currency.
During the six months ended March 31, 2018, the Arbitrage 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/or adjust exposure to foreign currencies.
Real Estate Investment Trusts — The Funds may invest in real estate investment trusts (“REITs”) that involve risks not associated with investing in stocks. Risks include declines in the value of real estate, general and economic conditions, changes in the value of the underlying property and defaults by borrowers. The value of assets in the real estate industry may go through cycles of relative underperformance and outperformance in comparison to equity securities markets in general. Dividend income is recorded using management’s estimate of the income included in distributions received from REIT investments. The actual amounts of income, return of capital and capital gains are only determined by each REIT after its fiscal year-end and may differ from the estimated amount. Estimates of income are adjusted in the Funds to the actual amounts when the amounts are determined.
Master Limited Partnership — The Funds may invest in Master Limited Partnership (“MLP”) common units that represent limited partnership interests in the MLP. Common units are generally listed and traded on U.S. securities exchanges or OTC with their value fluctuating predominantly based on the success of the MLP. Unlike owners of common stock of a corporation, owners of MLP common units have limited voting rights and have no ability to annually elect directors. MLPs generally distribute all available cash flow (cash flow from operations less maintenance capital expenditures) in the form of quarterly distributions. Common unit holders have first priority to receive quarterly cash distributions up to the minimum quarterly distribution and have arrearage rights. Distributions received from MLPs generally are comprised of income and return of capital. Investment
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Notes to Financial Statements (Unaudited) (Continued)
income and return of capital are recorded based on estimates made at the time distributions are received. The actual amounts of income and return of capital are only determined by each MLP after its fiscal year-end and may differ from the estimated amount. Estimates of income are adjusted in the Funds to the actual amounts when the amounts are determined. In the event of liquidation, common unit holders have preference over subordinated units, but not debt holders or preferred unit holders, to the remaining assets of the MLP.
Pay-In-Kind (“PIK”) Bonds — PIK bonds are securities that, at the issuer’s option, pay interest in either cash or additional securities for a specified period. PIK bonds, like zero coupon bonds, are designed to give an issuer flexibility in managing cash flow. PIK bonds are expected to reflect the market value of the underlying debt plus an amount representing accrued interest since the last payment. PIK bonds are usually less volatile than zero coupon bonds, but more volatile than cash pay securities.
Derivative instruments and hedging activities — The Active Bond Fund, the Arbitrage Fund and the Merger Arbitrage Fund may enter into an International 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 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 (forward foreign currency 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, are reported separately on the Statements of Assets and Liabilities as cash deposits held at prime broker and due to prime broker, 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.
Certain ISDA Master Agreements allow counterparties to OTC derivatives transactions to terminate derivative contracts prior to maturity in the event a Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA Master Agreement, which would cause the Fund (counterparty) to accelerate payment of any net liability owed to the counterparty (Fund).
For financial reporting purposes, a Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities.
122 |
Notes to Financial Statements (Unaudited) (Continued)
As of March 31, 2018, the Arbitrage Fund’s and Merger Arbitrage Fund’s assets and liabilities that were subject to a MNA on a gross basis were as follows:
Assets | Liabilities | |||||||
Arbitrage Fund | ||||||||
Written Options | $ | — | $ | 189,222 | ||||
Total | — | (189,222 | ) | |||||
Merger Arbitrage Fund | ||||||||
Written Options | — | (158,166 | ) | |||||
Forward Foreign Currency Contracts | 25,628 | — | ||||||
Total | $ | 25,628 | $ | (158,166 | ) |
The following table presents the Merger Arbitrage Fund’s assets net of amounts available for offset under a MNA and net of the related collateral pledged to the Fund as of March 31, 2018:
Gross | ||||||||||||||||||||||||
Amount | ||||||||||||||||||||||||
Available | ||||||||||||||||||||||||
for Offset in | ||||||||||||||||||||||||
Gross | Statement | Non- | ||||||||||||||||||||||
Amount of | of Assets | Cash | Cash | |||||||||||||||||||||
Derivative | Recognized | and | Collateral | Collateral | Net | |||||||||||||||||||
Fund | Counterparty | Type | Assets | Liabilities | Received | Received | Amount(A) | |||||||||||||||||
Merger Arbitrage Fund | Brown Brothers Harriman | Forward Foreign Currency Contracts | $ | 25,628 | $ | — | $ | — | $ | — | $ | 25,628 |
(A) | Net amount represents the net amount receivable from the counterparty in the event of default. |
The following table presents the Arbitrage Fund’s and Merger Arbitrage Fund’s liabilities net of amounts available for offset under MNA and net of the related collateral pledged by the Funds as of March 31, 2018:
Gross | ||||||||||||||||||||||||
Amount | ||||||||||||||||||||||||
Available | ||||||||||||||||||||||||
for Offset in | ||||||||||||||||||||||||
Gross | Statement | Non- | ||||||||||||||||||||||
Amount of | of Assets | Cash | Cash | |||||||||||||||||||||
Derivative | Recognized | and | Collateral | Collateral | Net | |||||||||||||||||||
Fund | Counterparty | Type | Liabilities | Liabilities | Pledged | Pledged | Amount(A) | |||||||||||||||||
Arbitrage Fund | Pershing LLC | Written Options | $ | 189,222 | $ | — | $ | (149,586 | ) | $ | (39,636 | ) | $ | — | ||||||||||
Merger Arbitrage Fund | Pershing LLC | Written Options | 158,166 | — | (158,166 | ) | — | — |
(A) | Net amount represents the net amount payable due to the counterparty in the event of default. |
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Notes to Financial Statements (Unaudited) (Continued)
The following table sets forth the fair value of the Arbitrage Fund’s and Merger Arbitrage Fund’s derivative financial instruments by primary risk exposure as of March 31, 2018:
Fair Value of Derivative Investments | ||||||||||
as of March 31, 2018 | ||||||||||
Derivatives not accounted for as hedging | Asset | Liability | ||||||||
Fund | instruments under ASC 815 | Derivatives | Derivatives | |||||||
Arbitrage Fund | Purchased Options-Equity Contracts* | $ | 227,118 | $ | — | |||||
Written Options-Equity Contracts** | — | (189,222 | ) | |||||||
Forward Foreign Currency Contracts*** | 49,954 | — | ||||||||
Merger Arbitrage Fund | Purchased Options- Equity contracts* | 183,304 | — | |||||||
Written Options-Equity Contracts** | — | (158,166 | ) | |||||||
Forward Foreign Currency Contracts*** | 25,628 | — |
* | Statements of Assets and Liabilities Location: Investments, at market value. |
** | Statements of Assets and Liabilities Location: Written options, at market value. |
*** | Statements of Assets and Liabilities Location: Unrealized appreciation on forward foreign currency contracts. |
The following table sets forth the effect of the Active Bond Fund’s, Arbitrage Fund’s and Merger Arbitrage Fund’s derivative financial instruments by primary risk exposure on the Statements of Operations for the six months ended March 31, 2018:
The Effect of Derivative Investments on the Statement of Operations | ||||||||||
for the Six Months Ended March 31, 2018 | ||||||||||
Change in | ||||||||||
Unrealized | ||||||||||
Realized Gain | Appreciation | |||||||||
Derivatives not accounted for as hedging | (Loss) | (Depreciation) | ||||||||
Fund | instruments under ASC 815 | on Derivatives | on Derivatives | |||||||
Active Bond Fund | Futures-Interest Rate Contracts* | $ | (131,990 | ) | $ | — | ||||
Arbitrage Fund | Purchased Options-Equity Contracts** | 164,811 | 79,908 | |||||||
Written Options-Equity Contracts*** | 474,638 | 1,698 | ||||||||
Forward Foreign Currency Contracts**** | (122,431 | ) | 31,433 | |||||||
Merger Arbitrage Fund | Purchased Options-Equity Contracts** | 99,618 | 55,038 | |||||||
Written Options-Equity Contracts*** | 436,645 | 1,381 | ||||||||
Forward Foreign Currency Contracts**** | (71,814 | ) | 14,763 |
* Statements of Operations Location: Net realized losses on futures contracts.
** Statements of Operations Location: Net realized gains (losses) on investments and net change in unrealized appreciation (depreciation) on investments, respectively.
*** Statements of Operations Location: Net realized gains on written options and net change in unrealized appreciation (depreciation) on written options, respectively.
**** Statements of Operations Location: Net realized losses on forward foreign currency contracts and net change in unrealized appreciation (depreciation) on forward foreign currency contracts, respectively.
124 |
Notes to Financial Statements (Unaudited) (Continued)
For the six months ended March 31, 2018, the average quarterly balances of outstanding derivative financial instruments were as follows:
Active | Merger | |||||||||||
Bond | Arbitrage | Arbitrage | ||||||||||
Fund | Fund | Fund | ||||||||||
Equity contracts: | ||||||||||||
Purchased Options - Cost | $ | — | $ | 112,530 | $ | 96,402 | ||||||
Written Options - Premiums received | $ | — | $ | 117,925 | $ | 96,739 | ||||||
Forward foreign currency contracts: | ||||||||||||
U.S. dollar amount received | $ | — | $ | 5,142,576 | $ | 2,807,694 | ||||||
Interest rate contracts: | ||||||||||||
Futures Contracts - Notional value | $ | 15,896,057 | $ | — | $ | — |
Portfolio securities loaned — The Funds may lend their portfolio securities. Lending portfolio securities exposes the Funds to the risk that the borrower may fail to return the loaned securities or may not be able to provide additional collateral or that the Funds may experience delays in recovery of the loaned securities or loss of rights in the collateral if the borrower fails financially. To minimize these risks, the borrower must agree to maintain cash collateral with the Funds’ custodian. The loaned securities are secured by collateral valued at least equal, at all times, to the market value of the loaned securities plus accrued interest, if any. When the collateral falls below specified amounts, the lending agent will use its best effort to obtain additional collateral on the next business day to meet required amounts under the security lending agreement. The cash collateral is reinvested by the Funds’ custodian into an approved short-term investment vehicle. The approved short-term investment vehicle is subject to market risk.
As of March 31, 2018, the following Funds loaned securities and received collateral as follows:
Market | Market | |||||||||||||
Value of | Value of | |||||||||||||
Securities | Collateral | Net | ||||||||||||
Fund | Security Type | Loaned* | Received** | Amount*** | ||||||||||
Arbitrage Fund | Common Stocks | $ | 2,297,842 | $ | 2,409,030 | $ | 111,188 | |||||||
Emerging Markets Small Cap Fund | Common Stocks | 192,811 | 198,631 | 5,820 | ||||||||||
High Yield Fund | Corporate Bonds | 2,866,741 | 2,972,535 | 105,794 | ||||||||||
Mid Cap Value Fund | Common Stocks | 21,066,580 | 20,761,501 | (305,079 | ) | |||||||||
Premium Yield Equity Fund | Common Stocks | 4,587,097 | 4,684,185 | 97,088 | ||||||||||
Small Cap Fund | Common Stocks | 6,360,406 | 6,324,413 | (35,993 | ) | |||||||||
Small Cap Value Fund | Common Stocks | 6,350,204 | 6,342,805 | (7,399 | ) | |||||||||
Total Return Bond Fund | Corporate Bonds | 1,236,000 | 1,272,000 | 36,000 |
* | The remaining contractual maturity is overnight for all securities. |
** | Gross amount of recognized liabilities for securities lending is included in the Statements of Assets and Liabilities. |
*** | Net amount represents the net amount payable due to the borrower in the event of default. |
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 in cash equivalents.
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 and is shown net of fees on the Statements of Operations. When a Fund lends securities, it retains the interest or dividends on the investment of any cash received as collateral, and the Fund continues to receive interest or dividends on the loaned securities.
125 |
Notes to Financial Statements (Unaudited) (Continued)
Unrealized gain or loss on the market value of the loaned securities that may occur during the term of the loan is recognized by the Fund. The Fund has the right under the lending agreement to recover any loaned securities from the borrower on demand.
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 Active Bond Fund, High Yield 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 Active Bond Fund, High Yield 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, S, 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. Additionally, purchases of Class C shares of the Funds are subject to a CDSC of 1.00%. The CDSC will be assessed on an amount equal to the lesser of (1) the NAV at the time of purchase of the shares being redeemed or (2) the NAV of such shares being redeemed, if redeemed within a one-year period from the date of purchase.
Investment income — Dividend income from securities is recognized on the ex-dividend date, net of foreign withholding taxes, if any, which are reduced by any amounts reclaimable by the Funds, where applicable. Interest income from securities is recorded on the basis of interest accrued, premium amortized and discount accreted. Realized gains and losses resulting from principal paydowns on mortgage-backed and asset-backed securities are included in interest income. Market discounts, original issue discount 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 Small Cap Fund, Merger Arbitrage Fund, Mid Cap Fund, and Small Cap Fund distribute their income, if any, annually, as a dividend to shareholders. The 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 Active Bond Fund, High Yield Fund, Premium
126 |
Notes to Financial Statements (Unaudited) (Continued)
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 from investments in Underlying Funds is affected by the timing of dividend declarations by the Underlying Funds.
Allocations — Investment income earned, realized capital gains and losses, and unrealized appreciation and depreciation for a Fund are allocated daily to each class of shares based upon its proportionate share of total net assets of the Fund. Class-specific expenses are charged directly to the class incurring the expense. Common expenses, which are not attributable to a specific class, are allocated daily to each class of shares based upon their proportionate share of total net assets of the Fund. Expenses not directly billed to a Fund are allocated proportionally among all the Funds in the Trust, and, if applicable,Touchstone Institutional Funds Trust,Touchstone Strategic Trust and Touchstone Variable Series Trust (collectively with the Trust, “Touchstone Fund Complex”), daily in relation to net assets of each Fund or another reasonable measure.
Security transactions — Security transactions are reflected for financial reporting purposes as of the trade date. Realized gains and losses on sales of portfolio securities are calculated using the identified cost basis.
Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
3. Investment Transactions
Investment transactions (excluding short-term investments and U.S. Government securities) were as follows for the six months ended March 31, 2018:
Active | Emerging | |||||||||||||||
Bond | Arbitrage | Markets Small | High Yield | |||||||||||||
Fund* | Fund | Cap Fund | Fund | |||||||||||||
Purchases of investment securities | $ | 124,826,878 | $ | 341,591,837 | $ | 7,493,231 | $ | 55,311,338 | ||||||||
Proceeds from sales and maturities | $ | 97,256,370 | $ | 301,565,627 | $ | 9,386,731 | $ | 71,622,602 |
Merger | Mid Cap | |||||||||||||||
Arbitrage | Mid Cap | Value | Premium Yield | |||||||||||||
Fund | Fund | Fund | Equity Fund | |||||||||||||
Purchases of investment securities | $ | 223,461,855 | $ | 272,191,886 | $ | 192,728,804 | $ | 48,670,255 | ||||||||
Proceeds from sales and maturities | $ | 225,904,753 | $ | 285,772,682 | $ | 132,278,086 | $ | 59,659,788 |
Sands Capital | Small Cap | Total Return | ||||||||||||||
Select Growth | Small Cap | Value | Bond | |||||||||||||
Fund | Fund** | Fund | Fund | |||||||||||||
Purchases of investment securities | $ | 263,054,171 | $ | 17,999,950 | $ | 23,547,988 | $ | 53,670,668 | ||||||||
Proceeds from sales and maturities | $ | 567,427,676 | $ | 82,010,451 | $ | 17,539,529 | $ | 14,424,521 |
Ultra Short | ||||
Duration Fixed | ||||
Income Fund* | ||||
Purchases of investment securities | $ | 555,212,623 | ||
Proceeds from sales and maturities | $ | 484,221,575 |
127 |
Notes to Financial Statements (Unaudited) (Continued)
*The cost of purchases and proceeds from sales and maturities in the Active Bond Fund and Ultra Short Duration Fixed Income Fund excludes the purchases and sales of the Sentinel Government Securities Fund and Sentinel Total Return Bond Fund for the Active Bond Fund and Sentinel Low Duration Bond Fund for the Ultra Short Duration Fixed Income Fund (see Note 9). If these transactions were included, purchases and sales would have been higher.
**Small Cap Fund had a redemption-in-kind on March 13, 2018, which resulted in a redemption out of the Fund of $2,085,657 and is excluded from the proceeds from sales and maturities. The redemption was comprised of securities and cash in the amount of $2,022,916 and $62,741, respectively.
For the six months ended March 31, 2018, purchases and proceeds from sales and maturities in U.S. Government Securities were $741,959,865 and $774,101,133, respectively, for the Active Bond Fund, $9,977,223 and $3,978,344, respectively, for the Total Return Bond Fund and $98,816,222 and $133,065,981, respectively, for the Ultra Short Duration Fixed Income Fund. There were no purchases or proceeds from sales and maturities of U.S. Government Securities by the remaining Funds for the six months ended March 31, 2018.
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 The Bank of New York Mellon, the Sub-Administrator to the Funds and BNY Mellon Investment Servicing (U.S.) Inc., the Transfer Agent to the Funds (collectively referenced to herein as “BNY Mellon”). Such officers receive no compensation from the Trust. The Advisor and the Underwriter are each wholly-owned, indirect subsidiaries of Western & Southern Financial Group, Inc. (“Western & Southern”).
On behalf of the Funds, the Advisor pays each Independent Trustee a quarterly retainer plus additional retainers to the Lead Independent Trustee and the chairs of each standing committee. Interested Trustees do not receive compensation from the Funds. Each Independent Trustee also receives compensation for each Board meeting and committee meeting attended. Each standing committee chair receives additional compensation for each committee meeting that he or she oversees. The Advisor is reimbursed by the Funds for the Independent Trustees’ compensation and out-of-pocket expenses relating to their services. The Funds accrued Trustee-related expenses of $93,767 for the six months ended March 31, 2018.
MANAGEMENT & EXPENSE LIMITATION AGREEMENTS
The Advisor provides general investment supervisory services for the Funds, under the 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.
Active Bond Fund | 0.40% on the first $300 million |
0.35% on such assets in excess of $300 million | |
Arbitrage Fund | 1.05% on the first $500 million |
1.00% on the next $500 million | |
0.95% on such assets over $1 billion | |
Emerging Markets Small Cap Fund | 1.05% on the first $200 million |
1.00% on the next $200 million | |
0.90% on such assets over $400 million | |
High Yield Fund | 0.60% on the first $50 million |
0.50% on the next $250 million | |
0.45% on such assets in excess of $300 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% on such assets over $1 billion |
128 |
Notes to Financial Statements (Unaudited) (Continued)
Mid Cap Value Fund | 0.85% on the first $100 million |
0.80% on the next $300 million | |
0.75% on such assets over $400 million | |
Premium Yield Equity Fund | 0.70% on the first $100 million |
0.65% on such assets over $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% on such assets over $2 billion | |
Small Cap 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 | Russell 1000® Growth Index | +/-2.50% | +/-0.15% | 1.00% / 0.55% |
For the six months ended March 31, 2018, the Advisor’s base fee was increased by $1,234,405 as a result of the performance fee adjustment.
The Advisor has entered into investment sub-advisory agreements with the following parties (each, a “Sub-Advisor”):
Copper Rock Capital Partners LLC | The London Company |
Emerging Markets Small Cap Fund | Mid Cap Fund |
Small Cap Fund | |
EARNEST Partners LLC | |
Total Return Bond Fund | Longfellow Investment Management Co. |
Arbitrage Fund | |
Fort Washington Investment Advisors, Inc.* | Merger Arbitrage Fund |
Active Bond Fund | |
High Yield Fund | Miller/Howard Investments, Inc. |
Ultra Short Duration Fixed Income Fund | Premium Yield Equity Fund |
LMCG Investments, LLC | |
Mid Cap Value Fund | Sands Capital Management, LLC |
Small Cap Value Fund | 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 the annual operating expenses of the Funds, excluding: dividend and interest expenses relating to short sales; interest; taxes; brokerage commissions and other transaction costs; portfolio transaction and investment related expenses, including expenses associated with the Funds’ liquidity providers; other expenditures which are capitalized in accordance with U.S. GAAP; the cost of “Acquired Fund Fees and Expenses”, if any; and
129 |
Notes to Financial Statements (Unaudited) (Continued)
other extraordinary expenses not incurred in the ordinary course of business. The maximum annual operating expense limit in any year with respect to the Funds is based on a percentage of the average daily net assets of the Funds. The Advisor has agreed to separately waive class-level expenses, advisory fees and administration fees, and to reimburse expenses in order to maintain the following expense limitations for the Funds:
Institutional | ||||||||||||||||||||||||
Class A | Class C | Class S | Class Y | Class Z | Class | |||||||||||||||||||
Active Bond Fund | 0.90 | % | 1.65 | % | — | 0.65 | % | — | 0.57 | % | ||||||||||||||
Arbitrage Fund | 1.68 | % | 2.43 | % | — | 1.43 | % | — | 1.28 | % | ||||||||||||||
Emerging Markets Small Cap Fund | 1.69 | % | 2.44 | % | — | 1.44 | % | — | 1.29 | % | ||||||||||||||
High Yield Fund | 1.05 | % | 1.80 | % | — | 0.80 | % | — | 0.72 | % | ||||||||||||||
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 | 1.27 | % | 2.02 | % | — | 1.02 | % | — | 0.89 | % | ||||||||||||||
Premium Yield Equity Fund | 1.20 | % | 1.95 | % | — | 0.95 | % | — | — | |||||||||||||||
Sands Capital Select Growth Fund* | 0.25 | % | 0.25 | % | — | 0.25 | % | 0.25 | % | — | ||||||||||||||
Small Cap 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 | 0.85 | % | 1.60 | % | — | 0.60 | % | — | 0.50 | % | ||||||||||||||
Ultra Short Duration Fixed Income Fund | 0.69 | % | 1.19 | % | 0.94 | % | 0.44 | % | 0.69 | % | 0.39 | % |
*The Expense Limitation Agreement for Sands Capital Select Growth Fund limits other operating expenses to 0.25% for all classes of the Fund. Other operating expenses include all operating expenses of the Fund except for investment advisory fees, administration fees, performance fees, distribution fees (12b-1), shareholder service fees and any expenses excluded in the Expense Limitation Agreement.
These expense limitations will remain in effect for all Funds through at least January 29, 2019, except for Active Bond Fund and Ultra Short Duration Fixed Income Fund, which will remain in effect through at least October 26, 2019. The Expense Limitation Agreement can be terminated by a vote of the Funds’ Board if it deems the termination to be beneficial to the Funds’ shareholders.
During the six months ended March 31, 2018, the Advisor or its affiliates waived investment advisory fees, administration fees and other operating expenses, including distribution fees of the Funds, as follows:
Other | ||||||||||||||||
Operating | ||||||||||||||||
Investment | Expenses | |||||||||||||||
Advisory | Administration | Reimbursed/ | ||||||||||||||
Fees Waived | Fees Waived | Waived | Total | |||||||||||||
Active Bond Fund | $ | — | $ | 68,171 | $ | 184,519 | $ | 252,690 | ||||||||
Arbitrage Fund | — | — | 19,407 | 19,407 | ||||||||||||
Emerging Markets Small Cap Fund | 70,069 | 9,676 | 44,834 | 124,579 | ||||||||||||
High Yield Fund | — | 19,906 | 84,172 | 104,078 | ||||||||||||
Merger Arbitrage Fund | — | — | 31,820 | 31,820 | ||||||||||||
Mid Cap Fund | — | 81,538 | 198,697 | 280,235 | ||||||||||||
Mid Cap Value Fund | — | 206,102 | 121,275 | 327,377 | ||||||||||||
Premium Yield Equity Fund | — | — | 47,621 | 47,621 | ||||||||||||
Sands Capital Select Growth Fund | — | — | 259,820 | 259,820 | ||||||||||||
Small Cap Fund | — | — | 84,300 | 84,300 | ||||||||||||
Small Cap Value Fund | 32,710 | 66,784 | 93,561 | 193,055 | ||||||||||||
Total Return Bond Fund | — | 46,579 | 102,278 | 148,857 | ||||||||||||
Ultra Short Duration Fixed Income Fund | — | 146,541 | 162,193 | 308,734 |
Under the terms of the Expense Limitation Agreement, the Advisor is entitled to recover, subject to approval by the Funds’ Board, such amounts waived or reimbursed for a period of up to three years from the date on 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 and the Fund’s current expense limitation.
130 |
Notes to Financial Statements (Unaudited) (Continued)
As of March 31, 2018, the Advisor may seek recoupment of previously waived fees and reimbursed expenses as follows:
Expiration | Expiration | Expiration | Expiration | |||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||
Fund | 2018 | 2019 | 2020 | 2021 | Total | |||||||||||||||
Active Bond Fund | $ | 115,961 | $ | 236,361 | $ | 224,157 | $ | 155,567 | $ | 732,046 | ||||||||||
Arbitrage Fund | 1,297 | 8,272 | 15,946 | 5,814 | 31,329 | |||||||||||||||
Emerging Markets Small Cap Fund | 64,048 | 353,948 | 264,662 | 116,202 | 798,860 | |||||||||||||||
High Yield Fund | 75,708 | 149,452 | 122,090 | 74,153 | 421,403 | |||||||||||||||
Merger Arbitrage Fund | — | — | 19,965 | 17,019 | 36,984 | |||||||||||||||
Mid Cap Fund | 464,857 | 545,460 | 576,954 | 239,157 | 1,826,428 | |||||||||||||||
Mid Cap Value Fund | 202,731 | 430,326 | 566,787 | 304,159 | 1,504,003 | |||||||||||||||
Premium Yield Equity Fund | 27,132 | 71,385 | 46,012 | 14,136 | 158,665 | |||||||||||||||
Sands Capital Select Growth Fund | 338,158 | 831,974 | 528,582 | 259,820 | 1,958,534 | |||||||||||||||
Small Cap Fund | — | 38,604 | 38,987 | 58,810 | 136,401 | |||||||||||||||
Small Cap Value Fund | 70,957 | 159,192 | 462,615 | 117,020 | 809,784 | |||||||||||||||
Total Return Bond Fund | 96,281 | 206,835 | 243,198 | 134,151 | 680,465 | |||||||||||||||
Ultra Short Duration Fixed Income Fund | 222,390 | 500,874 | 457,716 | 269,350 | 1,450,330 |
For the six months ended March 31, 2018, the Advisor is eligible to recoup previously waived fees or reimbursed expenses from the Mid Cap Value Fund of $37,454.
ADMINISTRATION AGREEMENT
The Advisor entered into an Administration Agreement with the Trust, whereby the Advisor is responsible for supplying executive and regulatory compliance services; supervising the preparation of tax returns; coordinating the preparation of reports to shareholders and reports to, and filings with the SEC and state securities authorities, as well as materials for meetings of the Board; calculating the daily NAV per share; and maintaining the financial books and records of each Fund.
For its services, the Advisor’s annual administrative fee is:
0.145% on the first $20 billion of the aggregate average daily net assets;
0.11% on the next $10 billion of aggregate average daily net assets;
0.09% on the next $10 billion of aggregate average daily net assets; and
0.07% on the aggregate average daily net assets over $40 billion.
The fee is computed and allocated among the Touchstone Fund Complex (excluding Touchstone Institutional Funds Trust) on the basis of relative daily net assets.
The Advisor has engaged BNY Mellon as the Sub-Administrator to the Trust. BNY Mellon provides administrative and accounting services to the Trust and is compensated directly by the Advisor, not the Trust.
TRANSFER AGENT AGREEMENT
Under the terms of the Transfer Agent Agreement between the Trust and BNY Mellon, BNY Mellon maintains the records of each shareholder’s account, answers shareholders’ inquiries concerning their accounts, processes purchases and redemptions of each Fund’s shares, acts as dividend and distribution disbursing agent, and performs other shareholder service functions. For these services, BNY Mellon receives a monthly fee from each Fund. In addition, each Fund pays out-of-pocket expenses incurred by BNY Mellon, including, but not limited to, postage and supplies.
131 |
Notes to Financial Statements (Unaudited) (Continued)
The Funds may reimburse the Advisor for fees paid to intermediaries such as banks, broker-dealers, financial advisors or other financial institutions for sub-transfer agency, sub-administration and other services provided to investors whose shares of record are held in omnibus, other group accounts, retirement plans or accounts traded through registered securities clearing agents. These fees may vary based on, for example, the nature of services provided, but generally range up to 0.15% of the assets of the class serviced or maintained by the intermediary or up to $22 per sub-account maintained by the intermediary.
PLANS OF DISTRIBUTION AND SHAREHOLDER SERVICING FEE ARRANGEMENTS
The Trust has adopted distribution plans pursuant to Rule 12b-1 under the 1940 Act for each class of shares it offers that is subject to 12b-1 distribution fees. The plans allow each Fund to pay distribution and other fees for the sale and distribution of its shares and for services provided to shareholders. The fees charged to the Funds are limited to the actual expenses incurred. Under the Class A plan, each Fund offering Class A shares, excluding the Active Bond Fund and High Yield Fund, pays an annual fee of up to 0.25% of average daily net assets that are attributable to Class A shares. The Active Bond Fund and High Yield Fund pay an annual fee of up to 0.35% of average daily net assets that are attributable to Class A shares. The Active Bond Fund and High Yield Fund currently limit the 12b-1 fees for Class A shares to 0.25% of average daily net assets attributable to such shares. Under the Class C plan, each Fund offering Class C shares (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 has limited the amount of the 12b-1 fees for Class C shares to 0.75% of average daily net assets through January 29, 2019. Under the Class S plan, the Ultra Short Duration Fixed Income Fund pays an annual shareholder servicing fee of up to 0.50% of average daily net assets that are attributable to Class S shares. 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 underwriting and broker commissions on the sale of Class A shares of the Funds. W&S Brokerage Services, Inc., an affiliate of the Underwriter and the Advisor, also earned broker commissions on the sale of Class A shares of the Funds. Listed below are the total underwriting and broker commissions earned by the Underwriter and its affiliate during the six months ended March 31, 2018:
Fund | Amount | |||
Active Bond Fund | $ | 11,270 | ||
Emerging Markets Small Cap Fund | 469 | |||
High Yield Fund | 1,895 | |||
Merger Arbitrage Fund | 3,050 | |||
Mid Cap Fund | 4,882 | |||
Mid Cap Value Fund | 4,358 | |||
Premium Yield Equity Fund | 3,852 | |||
Sands Capital Select Growth Fund | 7,363 | |||
Small Cap Fund | 645 | |||
Small Cap Value Fund | 361 | |||
Total Return Bond Fund | 4,773 | |||
Ultra Short Duration Fixed Income Fund | 1,217 |
132 |
Notes to Financial Statements (Unaudited) (Continued)
In addition, the Underwriter collected CDSC on the redemption of Class C shares of the Funds listed below during the six months ended March 31, 2018:
Fund | Amount | |||
Active Bond Fund | $ | 546 | ||
Arbitrage Fund | 650 | |||
High Yield Fund | 160 | |||
Mid Cap Fund | 364 | |||
Sands Capital Select Growth Fund | 68 | |||
Ultra Short Duration Fixed Income Fund | 34 |
INTERFUND TRANSACTIONS
The Funds may engage in purchase and sale transactions with funds that have a common investment advisor (or affiliated investment advisors), common Trustees and/or common officers. During the six months ended March 31, 2018, the Funds did not engage in any Rule 17a-7 transactions as defined under the 1940 Act.
5. Liquidity
ReFlow Fund LLC — The Funds may participate in the ReFlow Fund LLC liquidity program (“ReFlow”), which is designed to provide an alternative liquidity source for funds experiencing redemptions. In order to pay cash to shareholders who redeem their shares on a given day, a fund typically must hold cash in its portfolio, liquidate portfolio securities, or borrow money. ReFlow provides participating funds with another source of cash by standing ready to purchase shares from a fund up to the amount of the fund’s net redemptions on a given day, cumulatively limited to 3% of the outstanding voting shares of a Fund. ReFlow then generally redeems those shares when the Fund experiences net sales. In return for this service, the Fund will pay a fee to ReFlow at a rate determined by a daily auction with other participating mutual funds.
During the six months ended March 31, 2018, the Small Cap Fund utilized ReFlow. ReFlow subscribed 135,945 shares of the Small Cap Fund during the period and had a redemption-in-kind of $2,022,916. The resulting fee is recorded in other expenses on the Statements of Operations.
Interfund lending — Pursuant to an Exemptive Order issued by the SEC on March 28, 2017, the Funds, along with certain other funds in the Touchstone Fund Complex, may participate in an interfund lending program. The interfund lending program provides an alternate credit facility that allows the Funds to lend to or borrow from other participating funds in the Touchstone Fund Complex, subject to the conditions of the Exemptive Order. The Funds may not borrow under the facility for leverage purposes and the loans’ duration may be no more than 7 days.
During the six months ended March 31, 2018, the following Fund participated as a lender in the interfund lending program. The average amount loaned, average interest rate and interest income were as follows:
Average Amount | Average Interest | Interest | ||||||||||
Fund | Loaned | Rate | Income* | |||||||||
Sands Capital Select Growth Fund | $ | 4,551,563 | 1.36 | % | $ | 1,415 |
*Included | in interest in the Statements of Operations. |
During the six months ended March 31, 2018, the following Funds participated as borrowers in the interfund lending program. The average amount borrowed, average interest rate and interest expense were as follows:
133 |
Notes to Financial Statements (Unaudited) (Continued)
Average Amount | Average Interest | Interest | ||||||||||
Fund | Borrowed | Rate | Expense* | |||||||||
Arbitrage Fund | $ | 1,702,561 | 1.31 | % | $ | 329 | ||||||
Mid Cap Fund | 14,799,494 | 1.32 | 1,089 | |||||||||
Premium Yield Equity Fund | 3,475,659 | 1.37 | 264 |
*Included in other expenses in the Statements of Operations.
6. Federal Tax Information
Federal income tax — It is each Fund’s policy to continue to comply with the special provisions of the Internal Revenue Code applicable to regulated investment companies. As provided therein, in any fiscal year in which a Fund so qualifies and distributes at least 90% of its investment company taxable income, the Fund (but not 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 for the years ended September 30, 2017 and 2016 are as follows:
Active Bond Fund | Arbitrage Fund | |||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
From ordinary income | $ | 2,885,074 | $ | 3,155,993 | $ | 4,688,177 | $ | 1,713,725 | ||||||||
From long-term capital gains | — | — | — | 342,591 | ||||||||||||
Total distributions | $ | 2,885,074 | $ | 3,155,993 | $ | 4,688,177 | $ | 2,056,316 |
Emerging Markets | ||||||||||||||||
Small Cap Fund | High Yield Fund | |||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
From ordinary income | $ | — | $ | 2,618,763 | $ | 11,116,195 | $ | 10,884,011 | ||||||||
From long-term capital gains | — | — | — | — | ||||||||||||
Total distributions | $ | — | $ | 2,618,763 | $ | 11,116,195 | $ | 10,884,011 |
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, | |||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||
From ordinary income | $ | 5,245,522 | $ | — | $ | 3,693,873 | $ | 365,264 | $ | 7,502,271 | $ | 7,115,657 | ||||||||||||
From long-term capital gains | — | — | — | — | 13,872,720 | 16,030,101 | ||||||||||||||||||
Total distributions | $ | 5,245,522 | $ | — | $ | 3,693,873 | $ | 365,264 | $ | 21,374,991 | $ | 23,145,758 |
Premium Yield | Sands Capital | Small Cap | ||||||||||||||||||||||
Equity Fund | Select Growth Fund | 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, | |||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||
From ordinary income | $ | 3,698,205 | $ | 3,858,988 | $ | 5,136,516 | $ | — | $ | 1,853,070 | $ | 13,028,179 | ||||||||||||
From long-term capital gains | — | 10,256,568 | 361,190,380 | 425,346,962 | — | 65,017,255 | ||||||||||||||||||
Total distributions | $ | 3,698,205 | $ | 14,115,556 | $ | 366,326,896 | $ | 425,346,962 | $ | 1,853,070 | $ | 78,045,434 |
134 |
Notes to Financial Statements (Unaudited) (Continued)
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, | |||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||
From ordinary income | $ | 137,427 | $ | 911,469 | $ | 6,815,476 | $ | 6,010,128 | $ | 10,787,697 | $ | 8,481,610 | ||||||||||||
From long-term capital gains | — | 1,833,117 | — | — | — | — | ||||||||||||||||||
Total distributions | $ | 137,427 | $ | 2,744,586 | $ | 6,815,476 | $ | 6,010,128 | $ | 10,787,697 | $ | 8,481,610 |
The following information is computed on a tax basis for each item as of September 30, 2017:
Emerging | ||||||||||||||||
Active Bond | Arbitrage | Markets Small Cap | High Yield | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Tax cost of portfolio investments | $ | 125,097,436 | $ | 267,337,466 | $ | 12,673,435 | $ | 212,418,657 | ||||||||
Gross unrealized appreciation on investments | 2,613,406 | 4,902,945 | 1,789,389 | 6,810,048 | ||||||||||||
Gross unrealized depreciation on investments | (665,764 | ) | (6,366,470 | ) | (567,297 | ) | (1,795,031 | ) | ||||||||
Net unrealized appreciation (depreciation) on investments | 1,947,642 | (1,463,525 | ) | 1,222,092 | 5,015,017 | |||||||||||
Gross unrealized appreciation on short sales, derivatives and foreign currency contracts | — | 1,206,066 | 35 | — | ||||||||||||
Gross unrealized depreciation on short sales, derivatives and foreign currency contracts | — | (3,656,931 | ) | (43,205 | ) | — | ||||||||||
Net unrealized appreciation (depreciation) on short sales, derivatives and foreign currency contracts | — | (2,450,865 | ) | (43,170 | ) | — | ||||||||||
Capital loss carryforwards | — | — | (97,642,883 | ) | ||||||||||||
Undistributed ordinary income | 100,608 | 7,225,614 | 91,956 | (15,975,775 | ) | |||||||||||
Undistributed capital gains | — | 366,454 | — | 515,272 | ||||||||||||
Other temporary differences | (38,253 | ) | (162,199 | ) | (3,256 | ) | — | |||||||||
Accumulated earnings (deficit) | $ | 2,009,997 | $ | 3,515,479 | $ | (96,375,261 | ) | $ | (10,445,486 | ) |
Merger | Mid Cap | Mid Cap Value | ||||||||||
Arbitrage Fund | Fund | Fund | ||||||||||
Tax cost of portfolio investments | $ | 242,702,264 | $ | 617,199,395 | $ | 623,022,871 | ||||||
Gross unrealized appreciation on investments | 4,400,792 | 165,273,442 | 115,400,847 | |||||||||
Gross unrealized depreciation on investments | (5,472,316 | ) | (4,590,751 | ) | (27,249,035 | ) | ||||||
Net unrealized appreciation (depreciation) on investments | (1,071,524 | ) | 160,682,691 | 88,151,812 | ||||||||
Gross unrealized appreciation on short sales, derivatives and foreign currency contracts | 695,331 | — | — | |||||||||
Gross unrealized depreciation on short sales, derivatives and foreign currency contracts | (3,611,526 | ) | — | — | ||||||||
Net unrealized appreciation (depreciation) on short sales, derivatives and foreign currency contracts | (2,916,195 | ) | — | — | ||||||||
Capital loss carryforwards | — | (70,800,792 | ) | — | ||||||||
Undistributed ordinary income | 8,785,796 | 477,776 | 9,078,278 | |||||||||
Undistributed capital gains | 797,071 | — | 31,199,807 | |||||||||
Other temporary differences | (217,454 | ) | — | — | ||||||||
Accumulated earnings (deficit) | $ | 5,377,694 | $ | 90,359,675 | $ | 128,429,897 |
135 |
Notes to Financial Statements (Unaudited) (Continued)
Premium | Sands Capital | |||||||||||
Yield Equity | Select Growth | Small Cap | ||||||||||
Fund | Fund | Fund | ||||||||||
Tax cost of portfolio investments | $ | 105,432,401 | $ | 1,349,407,005 | $ | 172,986,048 | ||||||
Gross unrealized appreciation | 19,619,903 | 1,281,553,518 | 80,060,283 | |||||||||
Gross unrealized depreciation | (2,212,785 | ) | (60,538,873 | ) | (5,122,086 | ) | ||||||
Net unrealized appreciation (depreciation) on investments | 17,407,118 | 1,221,014,645 | 74,938,197 | |||||||||
Qualified late-year losses | — | (12,169,854 | ) | — | ||||||||
Undistributed ordinary income | 282,429 | — | 929,602 | |||||||||
Undistributed capital gains | 2,153,188 | 476,472,680 | 28,796,916 | |||||||||
Accumulated earnings (deficit) | $ | 19,842,735 | $ | 1,685,317,471 | $ | 104,664,715 |
Ultra Short | ||||||||||||
Total | Duration | |||||||||||
Small Cap Value | Return Bond | Fixed Income | ||||||||||
Fund | Fund | Fund | ||||||||||
Tax cost of portfolio investments | $ | 91,303,658 | $ | 262,898,889 | $ | 751,637,966 | ||||||
Gross unrealized appreciation | 9,919,882 | 3,779,282 | 1,177,208 | |||||||||
Gross unrealized depreciation | (5,699,442 | ) | (2,915,335 | ) | (1,357,530 | ) | ||||||
Net unrealized appreciation (depreciation) on investments | 4,220,440 | 863,947 | (180,322 | ) | ||||||||
Capital loss carryforwards | (1,969,934 | ) | (3,776,985 | ) | (24,658,808 | ) | ||||||
Undistributed ordinary income | 18,138 | 74,296 | 505,538 | |||||||||
Other temporary differences | — | — | (178,965 | ) | ||||||||
Accumulated earnings (deficit) | $ | 2,268,644 | $ | (2,838,742 | ) | $ | (24,512,557 | ) |
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 adjustments, amortization adjustments on bonds, REIT adjustments, preferred income outstanding, taxable interest on defaulted securities, and certain timing differences in the recognition of capital losses under income tax regulations and U.S. GAAP.
As of September 30, 2017, the Funds had the following capital loss carryforwards for federal income tax purposes:
No | No | |||||||||||||||||||
Short Term Expiring In | Expiration | Expiration | ||||||||||||||||||
2018 | 2019 | Short Term* | Long Term* | Total | ||||||||||||||||
Emerging Markets Small Cap Fund | $ | — | $ | — | $ | 17,348,130 | $ | 80,294,753 | $ | 97,642,883 | ||||||||||
High Yield Fund | — | — | — | 15,975,775 | 15,975,775 | |||||||||||||||
Mid Cap Fund | 70,800,792 | — | — | — | 70,800,792 | |||||||||||||||
Small Cap Value Fund | 1,969,934 | — | — | — | 1,969,934 | |||||||||||||||
Total Return Bond Fund | — | — | 757,743 | 3,019,242 | 3,776,985 | |||||||||||||||
Ultra Short Duration Fixed Income Fund | 3,336,624 | 933,830 | 7,744,661 | 12,643,693 | 24,658,808 |
* The Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted on December 22, 2010. The Act made changes to several tax rules impacting the Funds. The provisions of the Act first became effective for the Funds’ fiscal year ended September 30, 2012 and are applicable to all subsequent fiscal years. Although the Act provides several benefits, including the unlimited carryover of future capital losses, there may be a greater likelihood that all or a portion of each Fund’s pre-enactment capital loss carryovers may expire without being utilized due to the fact that post-enactment capital losses must be utilized before pre-enactment capital loss carryovers may be utilized. Under the Act, new capital losses may now be carried forward indefinitely, and retain the character of the original loss as compared with pre-enactment law, where capital losses could be carried forward for up to eight years, and carried forward as short-term capital losses, irrespective of the character of the original loss.
136 |
Notes to Financial Statements (Unaudited) (Continued)
As of March 31, 2018 the Trust had the following federal tax cost resulting in net unrealized appreciation (depreciation) as follows:
Gross | Gross | Gross | Gross | |||||||||||||||||||||
Unrealized | Unrealized | Unrealized | Unrealized | Net | ||||||||||||||||||||
Federal | Appreciation | Depreciation | Appreciation | Depreciation | Unrealized | |||||||||||||||||||
Tax | on | on | on | on | Appreciation | |||||||||||||||||||
Fund | Cost | Investments | Investments | Other* | Other* | (Depreciation) | ||||||||||||||||||
Active Bond Fund | $ | 397,778,911 | $ | 3,153,413 | $ | (6,025,256 | ) | $ | — | $ | — | $ | (2,871,843 | ) | ||||||||||
Arbitrage Fund | 273,416,138 | 3,337,439 | (10,407,416 | ) | 503,249 | (906,591 | ) | (7,473,319 | ) | |||||||||||||||
Emerging Markets Small Cap Fund | 11,615,381 | 1,672,897 | (476,014 | ) | 1,626 | (72 | ) | 1,198,437 | ||||||||||||||||
High Yield Fund | 197,833,339 | 1,515,399 | (5,119,217 | ) | — | — | (3,603,818 | ) | ||||||||||||||||
Merger Arbitrage Fund | 219,311,192 | 2,979,027 | (7,575,047 | ) | 311,650 | (523,817 | ) | (4,808,187 | ) | |||||||||||||||
Mid Cap Fund | 689,624,731 | 145,459,998 | (16,326,640 | ) | — | — | 129,133,358 | |||||||||||||||||
Mid Cap Value Fund | 697,021,090 | 114,972,340 | (54,828,227 | ) | — | — | 60,144,113 | |||||||||||||||||
Premium Yield Equity Fund | 101,538,812 | 15,569,746 | (1,357,657 | ) | — | — | 14,212,089 | |||||||||||||||||
Sands Capital Select Growth Fund | 1,096,584,451 | 1,425,015,635 | (9,603,525 | ) | — | — | 1,415,412,110 | |||||||||||||||||
Small Cap Fund | 116,308,131 | 57,214,508 | (3,120,181 | ) | — | — | 54,094,327 | |||||||||||||||||
Small Cap Value Fund | 102,492,179 | 9,685,201 | (10,159,970 | ) | — | — | (474,769 | ) | ||||||||||||||||
Total Return Bond Fund | 309,143,658 | 1,935,275 | (6,603,107 | ) | — | — | (4,667,832 | ) | ||||||||||||||||
Ultra Short Duration Fixed Income Fund | 945,660,501 | 1,006,955 | (4,219,142 | ) | — | — | (3,212,187 | ) |
* Other includes Short Sales, Derivatives and Foreign Currency Transactions.
The Funds have analyzed their tax positions taken on federal income tax returns for all open tax years (tax years ended September 30, 2014 through 2017) and have concluded that no provision for income tax is required in their financial statements.
7. Commitments and Contingencies
The Funds indemnify the Trust’s officers and Trustees for certain liabilities that might arise from their performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds.
8. Principal Risks
Risks Associated with Foreign Investments — Some of the Funds may invest in the securities of foreign issuers. Investing in securities issued by companies whose principal business activities are outside the U.S. may involve significant risks not present in domestic investments. For example, there is generally less publicly available information about foreign companies, particularly those not subject to the disclosure and reporting requirements of the U.S. securities laws. Foreign issuers are generally not bound by uniform accounting, auditing, and financial reporting requirements and standards of practice comparable to those applicable to domestic issuers. Investments in foreign securities also involve the risk of possible adverse changes in investment or exchange control regulations, expropriation or confiscatory taxation, limitations on the removal of funds or other assets of a Fund, political or financial instability or diplomatic and other developments which could affect such investments. Foreign stock markets, while growing in volume and sophistication, are generally not as developed as those in the U.S., and securities of some foreign issuers (particularly those located in developing countries) may be less liquid and more volatile than securities of comparable U.S. companies. In general, there is less overall governmental supervision and regulation of foreign securities markets, broker-dealers, and issuers than in the U.S.
137 |
Notes to Financial Statements (Unaudited) (Continued)
Risks Associated with Concentration — Certain Funds may invest a high percentage of their assets in specific sectors of the market in order to achieve a potentially greater investment return. As a result, these Funds may be more susceptible to economic, political, and regulatory developments in a particular sector of the market, positive or negative, and may experience increased volatility on the Funds’ NAVs and magnified effect on the total return.
Risks Associated with Credit — An issuer may be unable to make timely payments of either principal or interest. This may cause the issuer’s securities to decline in value. Credit risk is particularly relevant to those Funds that invest a significant amount of their assets in junk bonds or lower-rated securities.
Risks Associated with Interest Rate Changes — As interest rates rise, the value of fixed-income securities a Fund owns will likely decrease. The price of debt securities is generally linked to the prevailing market interest rates. In general, when interest rates rise, the price of debt securities falls, and when interest rates fall, the price of debt securities rises. The price volatility of a debt security also depends on its maturity. Longer-term securities are generally more volatile, so the longer the average maturity or duration of these securities, the greater their price risk. Duration is a measure of the expected life, taking into account any prepayment or call features of the security, that is used to determine the price sensitivity of the security for a given change in interest rates. Specifically, duration is the change in the value of a fixed-income security that will result from a 1% change in interest rates, and generally is stated in years. For example, as a general rule a 1% rise in interest rates means a 1% fall in value for every year of duration. Maturity, on the other hand, is the date on which a fixed-income security becomes due for payment of principal. The negative impact on fixed income securities if interest rates increase as a result could negatively impact a Fund’s NAV.
Risks Associated with Liquidity — Liquidity risk exists when particular investments are difficult to purchase or sell. This can reduce the Fund’s returns because the Fund may be unable to transact at advantageous times or prices, or at all.
Please see the Funds’ prospectus for a complete discussion of these and other risks.
9. Fund Mergers
Active Bond Fund:
The shareholders of the Sentinel Government Securities Fund and the Sentinel Total Return Bond Fund, both a series of the Sentinel Group Funds, Inc., approved an Agreement and Plan of Reorganization providing for the transfer of all assets and liabilities of the Sentinel Government Securities Fund and the Sentinel Total Return Bond Fund to the Touchstone Active Bond Fund. The tax-free mergers took place on October 27, 2017.
The following is a summary of shares outstanding, net assets, net asset value per share and unrealized appreciation immediately before and after the reorganizations.
After | ||||||||||||||||
Before Reorganizations | Reorganizations | |||||||||||||||
Sentinel | Sentinel | Touchstone | Touchstone | |||||||||||||
Government | Total Return | Active | Active | |||||||||||||
Securities | Bond | Bond | Bond | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Class A* | ||||||||||||||||
Shares | 11,174,957 | (A) | 3,834,554 | (D) | 2,051,008 | 17,060,519 | ||||||||||
Net Assets | $ | 116,518,985 | $ | 39,982,285 | $ | 21,385,481 | $ | 177,886,751 | ||||||||
Net Asset Value | $ | 10.43 | (A) | $ | 10.43 | (D) | $ | 10.43 | $ | 10.43 |
138 |
Notes to Financial Statements (Unaudited) (Continued)
After | ||||||||||||||||
Before Reorganizations | Reorganizations | |||||||||||||||
Sentinel | Sentinel | Touchstone | Touchstone | |||||||||||||
Government | Total Return | Active | Active | |||||||||||||
Securities | Bond | Bond | Bond | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Class C | ||||||||||||||||
Shares | 1,315,564 | (B) | 1,646,712 | (E) | 470,496 | 3,432,772 | ||||||||||
Net Assets | $ | 12,682,178 | $ | 15,874,543 | $ | 4,535,633 | $ | 33,092,354 | ||||||||
Net Asset Value | $ | 9.64 | (B) | $ | 9.64 | (E) | $ | 9.64 | $ | 9.64 | ||||||
Class Y** | ||||||||||||||||
Shares | 1,572,671 | (C) | 11,128,019 | (F) | 7,576,068 | 20,276,758 | ||||||||||
Net Assets | $ | 16,389,043 | $ | 115,967,591 | $ | 78,951,815 | $ | 211,308,449 | ||||||||
Net Asset Value | $ | 10.42 | (C) | $ | 10.42 | (F) | $ | 10.42 | $ | 10.42 | ||||||
Institutional Class | ||||||||||||||||
Shares | — | — | 2,374,145 | 2,374,145 | ||||||||||||
Net Assets | — | — | $ | 24,733,043 | $ | 24,733,043 | ||||||||||
Net Asset Value | — | — | $ | 10.42 | $ | 10.42 | ||||||||||
Fund Total | ||||||||||||||||
Shares Outstanding | 15,103,361 | 16,500,456 | 12,471,717 | 43,144,194 | ||||||||||||
Net Assets | $ | 145,590,206 | $ | 171,824,419 | $ | 129,605,972 | $ | 447,020,597 | ||||||||
Unrealized Appreciation (Depreciation) | $ | 857,879 | $ | 3,044,192 | $ | 1,368,123 | $ | 5,270,194 |
(A) Reflects a 0.9244:1 stock split which occurred on the date of reorganizations, October 27, 2017.
(B)Reflects a 1.0008:1 reverse stock split which occurred on the date of reorganizations, October 27, 2017.
(C) Reflects a 0.9252:1 stock split which occurred on the date of reorganizations, October 27, 2017.
(D) Reflects a 0.9985: 1 stock split on Class A shares and a 0.9984: 1 stock split on Class R3 shares which occurred on the date of reorganization, October 27, 2017.
(E) Reflects a 1.0769:1 reverse stock split which occurred on the date of reorganizations, October 27, 2017.
(F) Reflects a 0.9997: 1 stock split on Class I shares and a 0.9999:1 stock split on Class R6 shares which occurred on the date of reorganization, October 27, 2017.
* The Sentinel Total Return Bond Fund had Class R3 shares outstanding immediately prior to the reorganizations, which were exchanged for Class A shares of the Active Bond Fund.
**The Sentinel Government Securities Fund and the Sentinel Total Return Bond Fund had Class I and Class R6 shares outstanding immediately prior to the reorganizations, which were exchanged for. Class Y shares of the Active Bond Fund.
Assuming the reorganizations had been completed on October 1, 2017, the Active Bond Fund’s results of operations for the six months ended March 31, 2018 would have been as follows:
Net investment income (loss) | $ | 9,771,481 | ||
Net realized and unrealized gain (loss) on investments | $ | (7,852,195 | ) | |
Net increase (decrease) in net assets resulting from operations | $ | 1,919,286 |
Because the combined investment portfolios have been managed as a single portfolio since the reorganizations were completed, it is not practical to separate the amounts of revenue and earnings to the Active Bond Fund that have been included in its statement of operations since the reorganizations.
Ultra Short Duration Fixed Income Fund:
The shareholders of the Sentinel Low Duration Bond Fund, a series of the Sentinel Group Funds, Inc., approved an Agreement and Plan of Reorganization providing for the transfer of all assets and liabilities of the Sentinel
139 |
Notes to Financial Statements (Unaudited) (Continued)
Low Duration Bond Fund to the Touchstone Ultra Short Duration Fixed Income Fund. The tax-free merger took place on October 27, 2017.
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 | Touchstone | |||||||||||
Ultra Short | Ultra Short | |||||||||||
Sentinel Low | Duration | Duration | ||||||||||
Duration | Fixed Income | Fixed Income | ||||||||||
Bond Fund | Fund | Fund | ||||||||||
Class A | ||||||||||||
Shares | 8,852,517 | (A) | 1,724,258 | 10,576,775 | ||||||||
Net Assets | $ | 82,262,174 | $ | 16,022,642 | $ | 98,284,816 | ||||||
Net Asset Value | $ | 9.29 | (A) | $ | 9.29 | $ | 9.29 | |||||
Class C | ||||||||||||
Shares | — | 595,689 | 595,689 | |||||||||
Net Assets | $ | — | $ | 5,536,888 | $ | 5,536,888 | ||||||
Net Asset Value | $ | — | $ | 9.29 | $ | 9.29 | ||||||
Class S | ||||||||||||
Shares | 18,778,658 | (B) | — | 18,778,658 | ||||||||
Net Assets | $ | 174,475,987 | $ | — | $ | 174,475,987 | ||||||
Net Asset Value | $ | 9.29 | (B) | $ | — | $ | 9.29 | |||||
Class Y* | ||||||||||||
Shares | 1,675,485 | (C) | 28,460,319 | 30,135,804 | ||||||||
Net Assets | $ | 15,567,307 | $ | 264,430,327 | $ | 279,997,634 | ||||||
Net Asset Value | $ | 9.29 | (C) | $ | 9.29 | $ | 9.29 | |||||
Class Z | ||||||||||||
Shares | — | 22,972,057 | 22,972,057 | |||||||||
Net Assets | $ | — | $ | 213,484,506 | $ | 213,484,506 | ||||||
Net Asset Value | $ | — | $ | 9.29 | $ | 9.29 | ||||||
Institutional Class | ||||||||||||
Shares | — | 28,593,394 | 28,593,394 | |||||||||
Net Assets | $ | — | $ | 265,515,783 | $ | 265,515,783 | ||||||
Net Asset Value | $ | — | $ | 9.29 | $ | 9.29 | ||||||
Fund Total | ||||||||||||
Shares Outstanding | 32,123,347 | 82,345,717 | 111,652,377 | |||||||||
Net Assets | $ | 272,305,468 | $ | 764,990,146 | $ | 1,037,295,614 | ||||||
Unrealized Appreciation (Depreciation) | $ | 1,842,713 | $ | (518,337 | ) | $ | 1,324,376 |
(A) Reflects a 0.9113:1 stock split which occurred on the date of reorganization, October 27, 2017.
(B) Reflects a 0.9127:1 stock split which occurred on the date of reorganization, October 27, 2017.
(C) Reflects a 0.9131:1 stock split which occurred on the date of reorganization, October 27, 2017.
* The Sentinel Low Duration Bond Fund had Class I shares outstanding immediately prior to the reorganization, which were exchanged for Class Y shares of the Ultra Short Duration Fixed Income Fund.
Assuming the reorganization had been completed on October 1, 2017, the Ultra Short Duration Fixed Income Fund’s results of operations for the six months ended March 31, 2018 would have been as follows:
Net investment income (loss) | $ | 12,283,723 | ||
Net realized and unrealized gain (loss) on investments | $ | (4,398,706 | ) | |
Net increase (decrease) in net assets resulting from operations | $ | 7,885,017 |
140 |
Notes to Financial Statements (Unaudited) (Continued)
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.
10. 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 in the Funds’ financial statements.
141 |
Proxy Voting Guidelines
The Sub-Advisors are responsible for exercising the voting rights associated with the securities purchased and held by the Funds. A description of the policies and procedures that the Sub-Advisors use in fulfilling this responsibility is available as an appendix to the most recent Statement of Additional Information, which can be obtained without charge by calling toll free 1.800.543.0407 or by visiting the Touchstone website at TouchstoneInvestments.com or on the Securities and Exchange Commission’s (the “Commission”) website sec.gov. Information regarding how those proxies were voted during the most recent twelve-month period ended June 30 is also available without charge by calling toll free 1.800.543.0407 or on the Commission’s website at sec.gov.
Quarterly Portfolio Disclosure
The Trust files a complete listing of portfolio holdings for each Fund as of the end of the first and third quarters of each fiscal year on Form N-Q. The complete listing (i) is available on the Commission’s website; (ii) may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; (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, 2017 through March 31, 2018).
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, 2018” 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 Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s 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.
142 |
Other Items (Unaudited) (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, | |||||||||||||||
2018 | 2017 | 2018 | 2018* | |||||||||||||||
Touchstone Active Bond Fund | ||||||||||||||||||
Class A | Actual | 0.90 | % | $ | 1,000.00 | $ | 984.00 | $ | 4.45 | |||||||||
Class A | Hypothetical | 0.90 | % | $ | 1,000.00 | $ | 1,020.44 | $ | 4.53 | |||||||||
Class C | Actual | 1.65 | % | $ | 1,000.00 | $ | 981.20 | $ | 8.15 | |||||||||
Class C | Hypothetical | 1.65 | % | $ | 1,000.00 | $ | 1,016.70 | $ | 8.30 | |||||||||
Class Y | Actual | 0.65 | % | $ | 1,000.00 | $ | 986.30 | $ | 3.22 | |||||||||
Class Y | Hypothetical | 0.65 | % | $ | 1,000.00 | $ | 1,021.69 | $ | 3.28 | |||||||||
Institutional Class | Actual | 0.57 | % | $ | 1,000.00 | $ | 985.70 | $ | 2.82 | |||||||||
Institutional Class | Hypothetical | 0.57 | % | $ | 1,000.00 | $ | 1,022.09 | $ | 2.87 | |||||||||
Touchstone Arbitrage Fund | ||||||||||||||||||
Class A | Actual | 1.89 | % | $ | 1,000.00 | $ | 978.00 | $ | 9.32 | ** | ||||||||
Class A | Hypothetical | 1.89 | % | $ | 1,000.00 | $ | 1,015.51 | $ | 9.50 | ** | ||||||||
Class C | Actual | 2.64 | % | $ | 1,000.00 | $ | 975.30 | $ | 13.00 | ** | ||||||||
Class C | Hypothetical | 2.64 | % | $ | 1,000.00 | $ | 1,011.77 | $ | 13.24 | ** | ||||||||
Class Y | Actual | 1.56 | % | $ | 1,000.00 | $ | 980.20 | $ | 7.70 | ** | ||||||||
Class Y | Hypothetical | 1.56 | % | $ | 1,000.00 | $ | 1,017.15 | $ | 7.85 | ** | ||||||||
Institutional Class | Actual | 1.49 | % | $ | 1,000.00 | $ | 980.30 | $ | 7.36 | ** | ||||||||
Institutional Class | Hypothetical | 1.49 | % | $ | 1,000.00 | $ | 1,017.50 | $ | 7.49 | ** | ||||||||
Touchstone Emerging Markets Small Cap Fund | ||||||||||||||||||
Class A | Actual | 1.69 | % | $ | 1,000.00 | $ | 1,074.00 | $ | 8.74 | |||||||||
Class A | Hypothetical | 1.69 | % | $ | 1,000.00 | $ | 1,016.50 | $ | 8.50 | |||||||||
Class C | Actual | 2.44 | % | $ | 1,000.00 | $ | 1,070.30 | $ | 12.59 | |||||||||
Class C | Hypothetical | 2.44 | % | $ | 1,000.00 | $ | 1,012.76 | $ | 12.24 | |||||||||
Class Y | Actual | 1.44 | % | $ | 1,000.00 | $ | 1,076.10 | $ | 7.45 | |||||||||
Class Y | Hypothetical | 1.44 | % | $ | 1,000.00 | $ | 1,017.75 | $ | 7.24 | |||||||||
Institutional Class | Actual | 1.29 | % | $ | 1,000.00 | $ | 1,076.30 | $ | 6.68 | |||||||||
Institutional Class | Hypothetical | 1.29 | % | $ | 1,000.00 | $ | 1,018.50 | $ | 6.49 | |||||||||
Touchstone High Yield Fund | ||||||||||||||||||
Class A | Actual | 1.05 | % | $ | 1,000.00 | $ | 987.80 | $ | 5.20 | |||||||||
Class A | Hypothetical | 1.05 | % | $ | 1,000.00 | $ | 1,019.70 | $ | 5.29 | |||||||||
Class C | Actual | 1.80 | % | $ | 1,000.00 | $ | 984.10 | $ | 8.90 | |||||||||
Class C | Hypothetical | 1.80 | % | $ | 1,000.00 | $ | 1,015.96 | $ | 9.05 | |||||||||
Class Y | Actual | 0.80 | % | $ | 1,000.00 | $ | 988.70 | $ | 3.97 | |||||||||
Class Y | Hypothetical | 0.80 | % | $ | 1,000.00 | $ | 1,020.94 | $ | 4.03 | |||||||||
Institutional Class | Actual | 0.72 | % | $ | 1,000.00 | $ | 990.20 | $ | 3.57 | |||||||||
Institutional Class | Hypothetical | 0.72 | % | $ | 1,000.00 | $ | 1,021.34 | $ | 3.63 |
143 |
Other Items (Unaudited) (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, | |||||||||||||||
2018 | 2017 | 2018 | 2018* | |||||||||||||||
Touchstone Merger Arbitrage Fund | ||||||||||||||||||
Class A | Actual | 2.00 | % | $ | 1,000.00 | $ | 982.80 | $ | 9.89 | *** | ||||||||
Class A | Hypothetical | 2.00 | % | $ | 1,000.00 | $ | 1,014.96 | $ | 10.05 | *** | ||||||||
Class C | Actual | 2.75 | % | $ | 1,000.00 | $ | 979.00 | $ | 13.57 | *** | ||||||||
Class C | Hypothetical | 2.75 | % | $ | 1,000.00 | $ | 1,011.22 | $ | 13.79 | *** | ||||||||
Class Y | Actual | 1.71 | % | $ | 1,000.00 | $ | 984.00 | $ | 8.46 | *** | ||||||||
Class Y | Hypothetical | 1.71 | % | $ | 1,000.00 | $ | 1,016.40 | $ | 8.60 | *** | ||||||||
Institutional Class | Actual | 1.60 | % | $ | 1,000.00 | $ | 984.90 | $ | 7.92 | *** | ||||||||
Institutional Class | Hypothetical | 1.60 | % | $ | 1,000.00 | $ | 1,016.95 | $ | 8.05 | *** | ||||||||
Touchstone Mid Cap Fund | ||||||||||||||||||
Class A | Actual | 1.24 | % | $ | 1,000.00 | $ | 1,076.90 | $ | 6.42 | |||||||||
Class A | Hypothetical | 1.24 | % | $ | 1,000.00 | $ | 1,018.75 | $ | 6.24 | |||||||||
Class C | Actual | 1.99 | % | $ | 1,000.00 | $ | 1,072.50 | $ | 10.28 | |||||||||
Class C | Hypothetical | 1.99 | % | $ | 1,000.00 | $ | 1,015.01 | $ | 10.00 | |||||||||
Class Y | Actual | 0.99 | % | $ | 1,000.00 | $ | 1,077.80 | $ | 5.13 | |||||||||
Class Y | Hypothetical | 0.99 | % | $ | 1,000.00 | $ | 1,020.00 | $ | 4.99 | |||||||||
Class Z | Actual | 1.24 | % | $ | 1,000.00 | $ | 1,076.70 | $ | 6.42 | |||||||||
Class Z | Hypothetical | 1.24 | % | $ | 1,000.00 | $ | 1,018.75 | $ | 6.24 | |||||||||
Institutional Class | Actual | 0.92 | % | $ | 1,000.00 | $ | 1,078.40 | $ | 4.77 | |||||||||
Institutional Class | Hypothetical | 0.92 | % | $ | 1,000.00 | $ | 1,020.34 | $ | 4.63 | |||||||||
Touchstone Mid Cap Value Fund | ||||||||||||||||||
Class A | Actual | 1.27 | % | $ | 1,000.00 | $ | 982.10 | $ | 6.28 | |||||||||
Class A | Hypothetical | 1.27 | % | $ | 1,000.00 | $ | 1,018.60 | $ | 6.39 | |||||||||
Class C | Actual | 2.02 | % | $ | 1,000.00 | $ | 978.90 | $ | 9.97 | |||||||||
Class C | Hypothetical | 2.02 | % | $ | 1,000.00 | $ | 1,014.86 | $ | 10.15 | |||||||||
Class Y | Actual | 1.02 | % | $ | 1,000.00 | $ | 983.50 | $ | 5.04 | |||||||||
Class Y | Hypothetical | 1.02 | % | $ | 1,000.00 | $ | 1,019.85 | $ | 5.14 | |||||||||
Institutional Class | Actual | 0.89 | % | $ | 1,000.00 | $ | 984.20 | $ | 4.40 | |||||||||
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 | $ | 1,020.40 | $ | 6.04 | |||||||||
Class A | Hypothetical | 1.20 | % | $ | 1,000.00 | $ | 1,018.95 | $ | 6.04 | |||||||||
Class C | Actual | 1.95 | % | $ | 1,000.00 | $ | 1,016.60 | $ | 9.80 | |||||||||
Class C | Hypothetical | 1.95 | % | $ | 1,000.00 | $ | 1,015.21 | $ | 9.80 | |||||||||
Class Y | Actual | 0.95 | % | $ | 1,000.00 | $ | 1,021.80 | $ | 4.79 | |||||||||
Class Y | Hypothetical | 0.95 | % | $ | 1,000.00 | $ | 1,020.19 | $ | 4.78 |
144 |
Other Items (Unaudited) (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, | |||||||||||||||
2018 | 2017 | 2018 | 2018* | |||||||||||||||
Touchstone Sands Capital Select Growth Fund | ||||||||||||||||||
Class A | Actual | 1.39 | % | $ | 1,000.00 | $ | 1,135.30 | $ | 7.40 | |||||||||
Class A | Hypothetical | 1.39 | % | $ | 1,000.00 | $ | 1,018.00 | $ | 6.99 | |||||||||
Class C | Actual | 2.14 | % | $ | 1,000.00 | $ | 1,131.10 | $ | 11.37 | |||||||||
Class C | Hypothetical | 2.14 | % | $ | 1,000.00 | $ | 1,014.26 | $ | 10.75 | |||||||||
Class Y | Actual | 1.14 | % | $ | 1,000.00 | $ | 1,136.80 | $ | 6.07 | |||||||||
Class Y | Hypothetical | 1.14 | % | $ | 1,000.00 | $ | 1,019.25 | $ | 5.74 | |||||||||
Class Z | Actual | 1.38 | % | $ | 1,000.00 | $ | 1,136.00 | $ | 7.35 | |||||||||
Class Z | Hypothetical | 1.38 | % | $ | 1,000.00 | $ | 1,018.05 | $ | 6.94 | |||||||||
Touchstone Small Cap Fund | ||||||||||||||||||
Class A | Actual | 1.38 | % | $ | 1,000.00 | $ | 1,037.90 | $ | 7.01 | |||||||||
Class A | Hypothetical | 1.38 | % | $ | 1,000.00 | $ | 1,018.05 | $ | 6.94 | |||||||||
Class C | Actual | 2.13 | % | $ | 1,000.00 | $ | 1,033.80 | $ | 10.80 | |||||||||
Class C | Hypothetical | 2.13 | % | $ | 1,000.00 | $ | 1,014.31 | $ | 10.70 | |||||||||
Class Y | Actual | 1.13 | % | $ | 1,000.00 | $ | 1,039.00 | $ | 5.74 | |||||||||
Class Y | Hypothetical | 1.13 | % | $ | 1,000.00 | $ | 1,019.30 | $ | 5.69 | |||||||||
Institutional Class | Actual | 1.05 | % | $ | 1,000.00 | $ | 1,039.40 | $ | 5.34 | |||||||||
Institutional Class | Hypothetical | 1.05 | % | $ | 1,000.00 | $ | 1,019.70 | $ | 5.29 | |||||||||
Touchstone Small Cap Value Fund | ||||||||||||||||||
Class A | Actual | 1.38 | % | $ | 1,000.00 | $ | 985.10 | $ | 6.83 | |||||||||
Class A | Hypothetical | 1.38 | % | $ | 1,000.00 | $ | 1,018.05 | $ | 6.94 | |||||||||
Class C | Actual | 2.13 | % | $ | 1,000.00 | $ | 981.30 | $ | 10.52 | |||||||||
Class C | Hypothetical | 2.13 | % | $ | 1,000.00 | $ | 1,014.31 | $ | 10.70 | |||||||||
Class Y | Actual | 1.13 | % | $ | 1,000.00 | $ | 986.30 | $ | 5.60 | |||||||||
Class Y | Hypothetical | 1.13 | % | $ | 1,000.00 | $ | 1,019.30 | $ | 5.69 | |||||||||
Institutional Class | Actual | 0.98 | % | $ | 1,000.00 | $ | 987.00 | $ | 4.85 | |||||||||
Institutional Class | Hypothetical | 0.98 | % | $ | 1,000.00 | $ | 1,020.04 | $ | 4.94 | |||||||||
Touchstone Total Return Bond Fund | ||||||||||||||||||
Class A | Actual | 0.85 | % | $ | 1,000.00 | $ | 991.80 | $ | 4.22 | |||||||||
Class A | Hypothetical | 0.85 | % | $ | 1,000.00 | $ | 1,020.69 | $ | 4.28 | |||||||||
Class C | Actual | 1.60 | % | $ | 1,000.00 | $ | 987.90 | $ | 7.93 | |||||||||
Class C | Hypothetical | 1.60 | % | $ | 1,000.00 | $ | 1,016.95 | $ | 8.05 | |||||||||
Class Y | Actual | 0.60 | % | $ | 1,000.00 | $ | 992.00 | $ | 2.98 | |||||||||
Class Y | Hypothetical | 0.60 | % | $ | 1,000.00 | $ | 1,021.94 | $ | 3.02 | |||||||||
Institutional Class | Actual | 0.50 | % | $ | 1,000.00 | $ | 993.50 | $ | 2.49 | |||||||||
Institutional Class | Hypothetical | 0.50 | % | $ | 1,000.00 | $ | 1,022.44 | $ | 2.52 |
145 |
Other Items (Unaudited) (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, | |||||||||||||||
2018 | 2017 | 2018 | 2018* | |||||||||||||||
Touchstone Ultra Short Duration Fixed Income Fund | ||||||||||||||||||
Class A | Actual | 0.69 | % | $ | 1,000.00 | $ | 1,005.00 | $ | 3.45 | |||||||||
Class A | Hypothetical | 0.69 | % | $ | 1,000.00 | $ | 1,021.49 | $ | 3.48 | |||||||||
Class C | Actual | 1.19 | % | $ | 1,000.00 | $ | 1,002.50 | $ | 5.94 | |||||||||
Class C | Hypothetical | 1.19 | % | $ | 1,000.00 | $ | 1,019.00 | $ | 5.99 | |||||||||
Class S(A) | Actual | 0.92 | % | $ | 1,000.00 | $ | 1,002.50 | $ | 3.91 | |||||||||
Class S | Hypothetical | 0.92 | % | $ | 1,000.00 | $ | 1,020.34 | $ | 4.63 | |||||||||
Class Y | Actual | 0.44 | % | $ | 1,000.00 | $ | 1,005.10 | $ | 2.20 | |||||||||
Class Y | Hypothetical | 0.44 | % | $ | 1,000.00 | $ | 1,022.74 | $ | 2.22 | |||||||||
Class Z | Actual | 0.69 | % | $ | 1,000.00 | $ | 1,005.00 | $ | 3.45 | |||||||||
Class Z | Hypothetical | 0.69 | % | $ | 1,000.00 | $ | 1,021.49 | $ | 3.48 | |||||||||
Institutional Class | Actual | 0.39 | % | $ | 1,000.00 | $ | 1,006.50 | $ | 1.95 | |||||||||
Institutional Class | Hypothetical | 0.39 | % | $ | 1,000.00 | $ | 1,022.99 | $ | 1.97 |
(A) | Represents the period from commencement of operations (October 27, 2017) through March 31, 2018. Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 155/365. |
* | 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 $8.28, $11.97, $6.66 and $6.32, respectively, and your hypothetical cost of investment in Class A, Class C, Class Y and Institutional Class would be $8.45, $12.19, $6.79 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 $8.30, $11.99, $6.88 and $6.33, respectively, and your hypothetical cost of investment in Class A, Class C, Class Y and Institutional Class would be $8.45, $12.19, $6.99 and $6.44, respectively. |
Advisory and Sub-Advisory Agreement Approval Disclosure
At a meeting held on November 16, 2017, 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.
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 total expense ratios of comparable funds; (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 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
146 |
Other Items (Unaudited) (Continued)
and each Sub-Advisory Agreement. The Independent Trustees also reviewed 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 comparable funds; (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 three 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 of each of the Funds 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
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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.
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, 2017, 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 a portion of the fees and/or reimbursed expenses of each 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 considered, among other data, the specific factors and related conclusions set forth below with respect to each Fund:
Touchstone Active 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 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-month period ended June 30, 2017 and the Fund’s performance was in the 2nd quintile of the Fund’s peer group for the twelve- and thirty-six-month periods ended June 30, 2017. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund and the other factors considered.
Touchstone Arbitrage 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 3rd quintile of the Fund’s peer group for the six- and twelve-month periods ended June 30, 2017, and the Fund’s performance was in the 1st quintile of the Fund’s peer group for the thirty-six-month period ended June 30, 2017. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund and the other factors considered.
Touchstone Emerging Markets Small Cap 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.
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The Fund’s performance was in the 2nd quintile of the Fund’s peer group for the six-month period ended June 30, 2017, the Fund’s performance was in the 3rd quintile of the Fund’s peer group for the twelve-month period ended June 30, 2017 and the Fund’s performance was in the 5th quintile of the Fund’s peer group for the thirty-six-month period ended June 30, 2017. The Board noted that the Fund had undergone a change in manager in April 2016 and since that change the Fund’s performance had met the Advisor’s expectations. 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 High Yield 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 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-month period ended June 30, 2017, the Fund’s performance was in the 3rd quintile of the Fund’s peer group for the twelve-month period ended June 30, 2017, and the Fund’s performance was in the 4th quintile of the Fund’s peer group for the thirty-six-month period ended June 30, 2017. The Board noted management’s discussion of the Fund’s performance, particularly in light of the current market environment, and management’s continued monitoring of the Fund’s performance. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and 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 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-month period ended June 30, 2017, the Fund’s performance was in the 3rd quintile of the Fund’s peer group for the twelve-month period ended June 30, 2017, and the Fund’s performance was in the 1st quintile of the Fund’s peer group for the thirty-six-month period ended June 30, 2017. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and 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-month period ended June 30, 2017, the Fund’s performance was in the 2nd quintile of its peer group for the twelve-month period ended June 30, 2017, and the Fund’s performance was in the 3rd quintile of the Fund’s peer group for the thirty-six-month period ended June 30, 2017. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and 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 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, 2017, and the Fund’s performance was in the 1st quintile of the Fund’s peer group for the thirty-six-month period ended June 30, 2017. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives
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and relevant indices, and 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 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 4th quintile of the Fund’s peer group for the six-month period ended June 30, 2017, and the Fund’s performance was in the 5th quintile of the Fund’s peer group for the twelve- and thirty-six-month periods ended June 30, 2017. The Board noted management’s discussion of the Fund’s performance, including its continuing generation of income for the Fund’s shareholders, and management’s continued monitoring of the Fund’s performance. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, 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 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 1st quintile of the Fund’s peer group for the six-month period, the Fund’s performance was in the 3rd quintile of the Fund’s peer group for the twelve-month period and the Fund’s performance was in the 5th quintile of the Fund’s peer group for the thirty-six-month period ended June 30, 2017.The Board noted management’s discussion of the Fund’s performance and management’s continued monitoring of the Fund’s performance. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund and the other factors considered.
Touchstone Small Cap 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 5th quintile of the Fund’s peer group for the six-, twelve- and thirty-six-month periods ended June 30, 2017. The Board noted management’s discussion of the Fund’s performance, particularly in light of the current market environment, and management’s continued monitoring of the Fund’s performance. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and 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 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 operating expenses of the Fund. The Fund’s performance was in the 5th quintile of the Fund’s peer group for the six-month period ended June 30, 2017, the Fund’s performance was in the 3rd quintile of the Fund’s peer group for the twelve-month period ended June 30, 2017, and the Fund’s performance was in the 4th quintile of the Fund’s peer group for the thirty-six-month period ended June 30, 2017.The Board noted that the Fund had undergone a change in manager in July 2016 and since that change the Fund’s performance had met the Advisor’s expectations. 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.
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Touchstone Total Return Bond 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 3rd quintile of the Fund’s peer group for the six-, twelve- and thirty-six-month periods ended June 30, 2017. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and 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 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 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, 2017. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative 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.
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. The Trustees 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 relative to the performance of funds with similar investment objectives and relevant indices or, as discussed above, has been 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 comparable funds; and (4) the terms of the
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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 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 undertaking of the Advisor to maintain expense limitations 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 Active Bond Fund The Fund’s sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.
Touchstone Arbitrage 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 Emerging Markets Small 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 High Yield Fund The Fund’s sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the 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 Merger Arbitrage 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 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 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 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 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 Total Return Bond 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 other factors considered.
Touchstone Ultra Short Duration Fixed Income 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.
As noted above, the Board considered each Fund’s performance during the six-month, twelve-month and thirty-six-month periods ended June 30, 2017, 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 also was mindful of the Advisor’s ongoing monitoring of each Sub-Advisor’s performance and the measures undertaken by the Advisor to address any 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 goals and policies; (b) the Sub-Advisor maintains an appropriate compliance program; (c) the overall performance of each Fund is satisfactory relative to the performance of funds with similar investment objectives and relevant indices or, as discussed above, has been addressed; (d) each Fund’s sub-advisory fees are reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered; and (e) the Sub-Advisor’s investment strategies are appropriate for pursuing
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the investment goals 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.
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We Respect Your Privacy
Thank you for your decision to invest with us. Touchstone and its affiliates have always placed a high value on the trust and confidence our clients place in us. We believe that confidence must be earned and validated through time. In today’s world, when technology allows the sharing of information at light speeds, trust must be reinforced by our sincere pledge to take the steps necessary to ensure that the information you share with us is treated with respect and confidentiality.
Our Pledge to Our Clients
· | We collect only the information we need to service your account and administer our business. |
· | We are committed to keeping your information confidential and we place strict limits and controls on the use and sharing of your information. |
· | We make every effort to ensure the accuracy of your information. |
We Collect the Following Nonpublic Personal Information About You:
· | Information we receive from you on or in applications or other forms, correspondence, or conversations, including, but not limited to, your name, address, phone number, social security number, assets, income and date of birth; and |
· | Information about your transactions with us, our affiliates, or others, including, but not limited to, your account number and balance, payment history, parties to transactions, cost basis information, and other financial information. |
Categories of Information We Disclose and Parties to Whom We Disclose
We do not disclose any nonpublic personal information about our current or former clients to nonaffiliated third parties, except as required or permitted by law.
We Place Strict Limits and Controls on the Use and Sharing of Your Information
• | We restrict access to nonpublic personal information about you to authorized employees who need the information to administer your business. |
• | We maintain physical, electronic and procedural safeguards that comply with federal standards to protect this information. |
• | We do not disclose any nonpublic personal information about our current or former clients to anyone, except as required or permitted by law or as described in this document. |
• | We will not sell your personal information to anyone. |
We May Provide Information to Service Your Account
Sometimes it is necessary to provide information about you to various companies such as transfer agents, custodians, broker-dealers and marketing service firms to facilitate the servicing of your account. These organizations have a legitimate business need to see some of your personal information in order for us to provide service to you. We may disclose to these various companies the information that we collect as described above. We require that these companies, including our own subsidiaries and affiliates, strictly maintain the confidentiality of this information and abide by all applicable laws. Companies within our corporate family that may receive this information are financial service providers and insurance companies. We do not permit these associated companies to sell the information for their own purposes, and we never sell our customer information.
This policy is applicable to the following affiliated companies: Touchstone Funds Group Trust, Touchstone Strategic 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.
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Touchstone Investments
Distributor
Touchstone Securities, Inc.*
303 Broadway
Cincinnati, Ohio 45202-4203
800.638.8194
www.touchstoneinvestments.com
Investment Advisor
Touchstone Advisors, Inc.*
303 Broadway
Cincinnati, Ohio 45202-4203
Transfer Agent
BNY Mellon Investment Servicing (US) Inc.
4400 Computer Drive
Westborough, Massachusetts 01581
Shareholder Service
800.543.0407
* A Member of Western & Southern Financial Group
TSF-56-TFGT-SAR-1803
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 last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. 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. | |
(a)(4) | 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 May 25, 2018
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 May 25, 2018
By (Signature and Title)* /s/ Terrie A. Wiedenheft
Terrie A. Wiedenheft, Controller and Treasurer
(principal financial officer)
Date May 25, 2018
* Print the name and title of each signing officer under his or her signature
Exhibit 99.CERT
Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act
I, Jill T. McGruder, certify that:
1. | I have reviewed this report on Form N-CSR of Touchstone Funds Group Trust; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | May 25, 2018 | /s/ Jill T. McGruder | |
Jill T. McGruder, President | |||
(principal executive officer) |
Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act
I, Terrie A. Wiedenheft, certify that:
1. | I have reviewed this report on Form N-CSR of Touchstone Funds Group Trust; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | May 25, 2018 | /s/ Terrie A. Wiedenheft | |
Terrie A. Wiedenheft, Controller and Treasurer | |||
(principal financial officer) |
Exhibit 99.906CERT
Certification Pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act
I, Jill T. McGruder, President of Touchstone Funds Group Trust (the “Registrant”), certify that:
1. | The Form N-CSR of the Registrant (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
Date: | May 25, 2018 | /s/ Jill T. McGruder | |
Jill T. McGruder, President | |||
(principal executive officer) |
I, Terrie A. Wiedenheft, Controller and Treasurer of Touchstone Funds Group Trust (the “Registrant”), certify that:
1. | The Form N-CSR of the Registrant (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
Date: | May 25, 2018 | /s/ Terrie A. Wiedenheft | |
Terrie A. Wiedenheft, Controller and Treasurer | |||
(principal financial officer) |
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