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Touchstone Strategic Trust – ‘N-CSRS’ for 12/31/18

On:  Friday, 3/1/19, at 2:00pm ET   ·   Effective:  3/1/19   ·   For:  12/31/18   ·   Accession #:  1144204-19-11574   ·   File #:  811-03651

Previous ‘N-CSRS’:  ‘N-CSRS’ on 11/30/18 for 9/30/18   ·   Next:  ‘N-CSRS’ on 8/29/19 for 6/30/19   ·   Latest:  ‘N-CSRS’ on 2/29/24 for 12/31/23

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  As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

 3/01/19  Touchstone Strategic Trust        N-CSRS     12/31/18    3:4.4M                                   Toppan Vintage/FATouchstone Balanced Fund Class A (SEBLX) — Class C (SBACX) — Class Y (SIBLX)Touchstone Core Municipal Bond Fund Class A (TOHAX) — Class C (TOHCX) — Class Y (TOHYX) — Institutional (TOHIX)Touchstone Credit Opportunities Fund A (TCOAX) — C (TOCCX) — Institutional (TOCIX) — Y (TCOYX)Touchstone International Equity Fund Class A (SWRLX) — Class C (SWFCX) — Class Y (SIIEX) — Institutional (TOIIX)Touchstone International Growth Fund A (TNSAX) — C (TNSCX) — Institutional (TNSIX) — Y (TNSYX)Touchstone International Growth Opportunities Fund Class A (TGGAX) — Class C (TGGCX) — Class Y (TYGGX) — Institutional (DSMGX)Touchstone Large Cap Focused Fund Class A (SENCX) — Class C (SCSCX) — Class Y (SICWX) — Institutional (SCRLX)Touchstone Large Cap Fund Class A (TACLX) — Class C (TFCCX) — Class Y (TLCYX) — Institutional Class (TLCIX)Touchstone Large Co. Growth Fund Class A (TSAGX) — Class C (TCGLX) — Class Y (TLGYX) — Institutional (DSMLX)Touchstone Small Co. Fund Class A (SAGWX) — Class C (SSCOX) — Class R6 (SSRRX) — Class Y (SIGWX) — Institutional (TICSX)Touchstone Value Fund A (TVLAX) — C (TVLCX) — Institutional (TVLIX) — Y (TVLYX)

Certified Semi-Annual Shareholder Report by a Management Investment Company   —   Form N-CSR
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: N-CSRS      Certified Semi-Annual Shareholder Report by a       HTML   2.17M 
                          Management Investment Company                          
 3: EX-99.906CERT  Miscellaneous Exhibit                            HTML      7K 
 2: EX-99.CERT  Miscellaneous Exhibit                               HTML     16K 


N-CSRS   —   Certified Semi-Annual Shareholder Report by a Management Investment Company
Document Table of Contents

Page (sequential)   (alphabetic) Top
 
11st Page  –  Filing Submission
"Tabular Presentation of Portfolios of Investments
"3 -- 6
"Portfolios of Investments
"Touchstone Balanced Fund
"Touchstone Credit Opportunities Fund
"Touchstone International Equity Fund
"Touchstone International Growth Opportunities Fund
"Touchstone International Small Cap Fund
"Touchstone Large Cap Focused Fund
"Touchstone Large Cap Fund
"Touchstone Large Company Growth Fund
"Touchstone Ohio Tax-Free Bond Fund
"Touchstone Small Company Fund
"Touchstone Value Fund
"Statements of Assets and Liabilities
"40 -- 43
"Statements of Operations
"44 -- 45
"Statements of Changes in Net Assets
"46 -- 51
"Statements of Changes in Net Assets -- Capital Stock Activity
"52 -- 60
"Financial Highlights
"61 -- 91
"Notes to Financial Statements
"92 -- 115
"Other Items
"116 -- 126
"Privacy Protection Policy
"127

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number 811-03651  

 

Touchstone Strategic Trust - June Funds
(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: June 30

 

Date of reporting period: December 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.

 

 

 

 C: 

 

 

 

Item 1. Reports to Stockholders.

 

The Report to Shareholders is attached herewith.

  

December 31, 2018

(Unaudited)

 

Semi-Annual Report

 

Touchstone Strategic Trust
Touchstone Balanced Fund
Touchstone Credit Opportunities Fund
Touchstone International Equity Fund
Touchstone International Growth Opportunities Fund
Touchstone International Small Cap Fund
Touchstone Large Cap Focused Fund
Touchstone Large Cap Fund
Touchstone Large Company Growth Fund
Touchstone Ohio Tax-Free Bond Fund
Touchstone Small Company Fund
Touchstone Value Fund

 

IMPORTANT NOTE: Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Touchstone Funds’ annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the shareholder reports from Touchstone Funds or from your financial intermediary, such as a broker-dealer or bank. Instead, annual and semi-annual shareholder reports will be available on the Touchstone Funds’ website (TouchstoneInvestments.com/Resources), and you will be notified by mail each time a report is posted and provided with a website link to access the report.

 

You may elect to receive all future annual and semi-annual shareholder reports in paper, free of charge. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. To elect to receive paper copies of shareholder reports through the mail or otherwise change your delivery method, contact your financial intermediary or, if you hold your shares directly through Touchstone Funds, visit TouchstoneInvestments.com/Resources/Edelivery or call Touchstone Funds toll-free at 1.800.543.0407. Your election to receive shareholder reports in paper will apply to all Touchstone Funds that you hold through the financial intermediary, or directly with Touchstone.

 

 

 

 C: 

 

 

 

Table of Contents

 

  Page  
Tabular Presentation of Portfolios of Investments 3 - 6  
Portfolios of Investments:    
Touchstone Balanced Fund 7  
Touchstone Credit Opportunities Fund 13  
Touchstone International Equity Fund 20  
Touchstone International Growth Opportunities Fund 23  
Touchstone International Small Cap Fund 25  
Touchstone Large Cap Focused Fund 29  
Touchstone Large Cap Fund 31  
Touchstone Large Company Growth Fund 32  
Touchstone Ohio Tax-Free Bond Fund 33  
Touchstone Small Company Fund 36  
Touchstone Value Fund 38  
Statements of Assets and Liabilities 40 - 43  
Statements of Operations 44 - 45  
Statements of Changes in Net Assets 46 - 51  
Statements of Changes in Net Assets - Capital Stock Activity 52 - 60  
Financial Highlights 61 - 91  
Notes to Financial Statements 92 - 115  
Other Items 116 - 126  
Privacy Protection Policy 127  

 

 

This report identifies the Funds' investments on December 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.

 

 C: 
  C: 2 

 

 

Tabular Presentation of Portfolios of Investments (Unaudited)

December 31, 2018

 

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

 

Touchstone Balanced Fund

Credit Quality*  (% of Fixed Income Securities) 
AAA/Aaa   53.7%
AA/Aa   4.4 
A/A   12.3 
BBB/Baa   24.8 
BB/Ba   1.0 
Not Rated   3.8 
    100.0%

 

Sector Allocation**  (% of Net Assets) 
Fixed Income Securities   35.0%
Common Stocks     
Information Technology   12.4 
Health Care   11.0 
Financials   9.0 
Industrials   6.6 
Consumer Discretionary   6.6 
Communication Services   5.9 
Consumer Staples   5.5 
Energy   3.5 
Materials   1.3 
Real Estate   0.7 
Exchange-Traded Fund   1.7 
Preferred Stock   0.0 
Short-Term Investment Fund   0.5 
Other Assets/Liabilities (Net)   0.3 
Total   100.0%

 

Touchstone Credit Opportunities Fund

Credit Quality*  (% of Fixed Income Securities) 
BBB/Baa   2.0%
BB/Ba   40.8 
B/B   38.7 
CCC   11.8 
Not Rated   3.4 
Cash equivalents   3.3 
    100.0%

 

Sector Allocation**  (% of Net Assets) 
Long Positions     
Corporate Bonds     
Communication Services   15.1%
Consumer Discretionary   11.1 
Industrials   9.8 
Energy   9.3 
Health Care   8.4 
Materials   5.5 
Information Technology   4.0 
Financials   3.3 
Real Estate   2.9 
Consumer Staples   1.7 
Utilities   1.6 
Bank Loans   16.8 
Asset-Backed Securities   3.8 
Common Stocks   2.0 
Warrants   0.0 
Purchased Call Options   0.1 
Short-Term Investment Funds   11.0 
Other Assets/Liabilities (Net)   (6.4)
    100.0%
Short Positions     
Written Call Options   (0.0)
    (0.0)
Total   100.0%

 

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

 

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

 

 C: 
 3 

 

 

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

 

Touchstone International Equity Fund

Geographic Allocation  (% of Net Assets) 
Common Stocks     
United Kingdom   27.8%
Switzerland   9.1 
Germany   6.7 
India   6.6 
Canada   6.6 
France   5.1 
China   4.9 
Japan   4.8 
Denmark   3.3 
Greece   3.1 
Ireland   2.9 
Brazil   2.5 
Mexico   2.0 
Spain   1.9 
Jersey   1.9 
Australia   1.8 
Netherlands   1.7 
United States   1.6 
Hong Kong   1.5 
Short-Term Investment Funds   8.8 
Other Assets/Liabilities (Net)   (4.6)
Total   100.0%

 

Touchstone International Growth Opportunities Fund

Geographic Allocation  (% of Net Assets) 
Common Stocks     
China   38.5%
France   10.5 
India   8.6 
Canada   7.4 
Japan   6.9 
Switzerland   5.3 
Singapore   5.2 
Germany   4.0 
Israel   3.7 
Brazil   2.8 
Sweden   2.8 
Argentina   2.2 
Indonesia   1.8 
Short-Term Investment Funds   1.4 
Other Assets/Liabilities (Net)   (1.1)
Total   100.0%

 

 C: 
 4 

 

 

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

 

Touchstone International Small Cap Fund

Geographic Allocation  (% of Net Assets) 
Common Stocks     
Japan   27.8%
United Kingdom   11.0 
Australia   8.1 
Canada   6.3 
Germany   6.0 
France   5.6 
Switzerland   5.4 
Netherlands   3.6 
Italy   3.1 
Denmark   2.6 
Norway   2.6 
Sweden   2.5 
Luxembourg   2.2 
Ireland   1.9 
India   1.7 
New Zealand   1.6 
Argentina   1.3 
Jordan   1.3 
Spain   1.3 
Singapore   1.2 
Hong Kong   1.2 
South Korea   1.1 
Finland   1.1 
Short-Term Investment Funds   3.7 
Other Assets/Liabilities (Net)   (4.2)
Total   100.0%

 

Touchstone Large Cap Focused Fund

Sector Allocation*  (% of Net Assets) 
Information Technology   20.9%
Financials   14.6 
Health Care   14.0 
Consumer Discretionary   12.5 
Communication Services   10.8 
Industrials   7.7 
Consumer Staples   6.4 
Energy   4.7 
Real Estate   1.7 
Materials   0.9 
Exchange-Traded Funds   5.0 
Short-Term Investment Funds   2.0 
Other Assets/Liabilities (Net)   (1.2)
Total   100.0%

Touchstone Large Cap Fund    
Sector Allocation*  (% of Net Assets) 
Financials   24.7%
Consumer Discretionary   20.0 
Information Technology   13.4 
Industrials   13.0 
Materials   8.4 
Consumer Staples   8.0 
Communication Services   7.0 
Energy   2.2 
Health Care   1.9 
Short-Term Investment Fund   2.4 
Other Assets/Liabilities (Net)   (1.0)
Total   100.0%

 

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

 

 C: 
 5 

 

 

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

 

Touchstone Large Company Growth Fund

Sector Allocation*  (% of Net Assets) 
Information Technology   33.1%
Communication Services   18.7 
Health Care   18.1 
Consumer Discretionary   16.5 
Financials   7.3 
Consumer Staples   3.7 
Industrials   2.5 
Short-Term Investment Fund   0.2 
Other Assets/Liabilities (Net)   (0.1)
Total   100.0%

 

Touchstone Small Company Fund

Sector Allocation*  (% of Net Assets) 
Information Technology   24.3%
Industrials   23.2 
Health Care   20.0 
Consumer Discretionary   14.1 
Financials   10.3 
Communication Services   2.9 
Consumer Staples   2.2 
Real Estate   1.5 
Short-Term Investment Fund   2.3 
Other Assets/Liabilities (Net)   (0.8)
Total   100.0%

 

Touchstone Ohio Tax-Free Bond Fund

Credit Quality**  (% of Fixed Income Securities) 
AAA/Aaa   8.8%
AA/Aa   68.6 
A/A   18.0 
BBB/Baa   3.7 
Not Rated   0.9 
Total   100.0%

Portfolio Allocation  (% of Net Assets) 
Fixed Rate Revenue Bonds   65.8%
General Obligation Bonds   18.2 
Pre-refunded/Escrowed to Maturity   11.8 
Variable Rate Demand Notes   3.8 
Other Assets/Liabilities (Net)   0.4 
Total   100.0%

 

Touchstone Value Fund

Sector Allocation*  (% of Net Assets) 
Health Care   19.6%
Financials   17.2 
Energy   14.2 
Information Technology   12.3 
Consumer Discretionary   9.1 
Industrials   7.5 
Materials   6.5 
Utilities   3.9 
Communication Services   3.7 
Consumer Staples   3.6 
Short-Term Investment Fund   2.3 
Other Assets/Liabilities (Net)   0.1 
Total   100.0%

 

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

 

**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 credit worthiness of the issuer.

 

 C: 
 6 

 

 

Portfolio of Investments

Touchstone Balanced FundDecember 31, 2018 (Unaudited)

 

       Market 
   Shares   Value 
         
Common Stocks — 62.5%          
           
Information Technology — 12.4%          
Accenture PLC (Ireland) - Class A   30,000   $4,230,300 
Apple, Inc.   48,000    7,571,520 
Microsoft Corp.   123,000    12,493,110 
Oracle Corp.   11,308    510,556 
salesforce.com, Inc.*   3,733    511,309 
Texas Instruments, Inc.   60,000    5,670,000 
Visa, Inc. - Class A   53,000    6,992,820 
         37,979,615 
           
Health Care — 11.0%          
AmerisourceBergen Corp.   23,954    1,782,178 
Amgen, Inc.   15,000    2,920,050 
Becton Dickinson and Co.   13,000    2,929,160 
Biogen, Inc.*   5,000    1,504,600 
Bristol-Myers Squibb Co.   45,000    2,339,100 
CVS Health Corp.   10,000    655,200 
Johnson & Johnson   23,000    2,968,150 
Merck & Co., Inc.   70,000    5,348,700 
Novartis AG (Switzerland) ADR   28,756    2,467,552 
Stryker Corp.   15,000    2,351,250 
UnitedHealth Group, Inc.   20,000    4,982,400 
Zoetis, Inc.   40,000    3,421,600 
         33,669,940 
           
Financials — 9.0%          
American Express Co.   25,000    2,383,000 
Berkshire Hathaway, Inc. - Class B*   27,693    5,654,357 
CME Group, Inc.   18,000    3,386,160 
JPMorgan Chase & Co.   39,000    3,807,180 
Morgan Stanley   100,000    3,965,000 
PNC Financial Services          
Group, Inc. (The)   27,000    3,156,570 
S&P Global, Inc.   20,000    3,398,800 
Signature Bank/NewYork NY   17,239    1,772,342 
         27,523,409 
           
Industrials — 6.6%          
Boeing Co. (The)   20,000    6,450,000 
Canadian National Railway Co.          
(Canada)   32,000    2,371,520 
General Dynamics Corp.   14,000    2,200,940 
Honeywell International, Inc.   35,000    4,624,200 
Resideo Technologies, Inc.*   5,833    119,868 
United Technologies Corp.   22,000    2,342,560 
Verisk Analytics, Inc.*   20,000    2,180,800 
         20,289,888 
           
Consumer Discretionary — 6.6%          
Amazon.com, Inc.*   1,301    1,954,063 
Carnival Corp.   18,121    893,365 
Garrett Motion, Inc. (Switzerland)*   3,500    43,190 
Home Depot, Inc. (The)   8,683    1,491,913 
JD.com, Inc. (China) ADR*   59,294    1,241,023 
Marriott International, Inc. - Class A   31,100    3,376,216 
McDonald's Corp.   33,000    5,859,810 
Starbucks Corp.   20,393    1,313,309 
TJX Cos., Inc. (The)   90,000    4,026,600 
         20,199,489 
           
Communication Services — 5.9%          
Alphabet, Inc. - Class C*   6,000    6,213,660 
AT&T, Inc.   28,740    820,240 
Comcast Corp. - Class A   120,000    4,086,000 
Facebook, Inc. - Class A*   22,420    2,939,038 
Verizon Communications, Inc.   75,000    4,216,500 
         18,275,438 
           
Consumer Staples — 5.5%          
Kraft Heinz Co. (The)   30,000    1,291,200 
Monster Beverage Corp.*   18,792    924,942 
PepsiCo, Inc.   40,000    4,419,200 
Philip Morris International, Inc.   40,000    2,670,400 
Procter & Gamble Co. (The)   40,000    3,676,800 
Unilever NV (United Kingdom)   70,000    3,766,000 
         16,748,542 
           
Energy — 3.5%          
Chevron Corp.   20,000    2,175,800 
EOG Resources, Inc.   25,000    2,180,250 
Exxon Mobil Corp.   38,000    2,591,220 
Marathon Petroleum Corp.   40,000    2,360,400 
Schlumberger Ltd.   37,700    1,360,216 
         10,667,886 
           
Materials — 1.3%          
DowDuPont, Inc.   38,460    2,056,841 
Linde PLC (United Kingdom)   12,000    1,872,480 
         3,929,321 
           
Real Estate — 0.7%          
Jones Lang LaSalle, Inc.   7,564    957,602 
Simon Property Group, Inc. REIT   6,587    1,106,550 
         2,064,152 
Total Common Stocks       $191,347,680 

Principal        
Amount        
         
     Corporate Bonds — 13.2%     
           
     Financials — 3.5%     
$78,000   Allstate Corp. (The), Ser B, 5.750%, 8/15/53   76,050 
 440,000   American Express Co., 3.000%, 10/30/24   421,054 
 355,000   Bank of America Corp., 3.705%, 4/24/28   340,540 
 535,000   Bank of America Corp. MTN, 4.000%, 1/22/25   521,168 
 390,000   Bank of Montreal (Canada), 3.803%, 12/15/32   361,140 
 449,000   Bank of New York Mellon Corp. (The) MTN, 2.950%, 1/29/23   441,933 

 

 C: 
 7 

 

 

Touchstone Balanced Fund (Unaudited) (Continued)

 

Principal      Market 
Amount      Value 
         
     Corporate Bonds — 13.2% (Continued)     
           
     Financials — (Continued)     
$435,000   Barclays PLC (United Kingdom), 4.610%, 2/15/23  $431,329 
 380,000   BB&T Corp. MTN, 2.850%, 10/26/24   365,091 
 330,000   Citigroup, Inc., 3.300%, 4/27/25   313,387 
 197,000   Citigroup, Inc., 4.750%, 5/18/46   182,118 
 305,000   Credit Suisse AG/New York NY (Switzerland) MTN, 3.625%, 9/9/24   299,263 
 345,000   Fifth Third Bancorp, 2.875%, 7/27/20   343,010 
 385,000   General Motors Financial Co., Inc., 3.200%, 7/13/20   380,221 
 440,000   Goldman Sachs Group, Inc. (The), (3M LIBOR +1.000%), 3.487%, 7/24/23(A)   427,543 
 150,000   Goldman Sachs Group, Inc. (The), 3.691%, 6/5/28   139,406 
 350,000   Goldman Sachs Group, Inc. (The), 5.250%, 7/27/21   363,332 
 335,000   HSBC Holdings PLC (United Kingdom), 3.900%, 5/25/26   320,999 
 562,000   Huntington Bancshares, Inc., 4.000%, 5/15/25   564,936 
 350,000   JPMorgan Chase & Co., (3M LIBOR +0.730%), 3.207%, 4/23/24(A)   338,151 
 270,000   JPMorgan Chase & Co., 3.250%, 9/23/22   267,856 
 425,000   JPMorgan Chase & Co., 3.509%, 1/23/29   402,434 
 416,000   Lloyds Banking Group PLC (United Kingdom), 3.574%, 11/7/28   370,042 
 148,000   Morgan Stanley, 3.737%, 4/24/24   146,740 
 470,000   Morgan Stanley, 3.950%, 4/23/27   443,113 
 300,000   Northwestern Mutual Life Insurance Co. (The), 144a, 3.850%, 9/30/47   271,666 
 370,000   PNC Bank NA, 2.700%, 11/1/22   359,548 
 339,000   Prudential Financial, Inc., 5.625%, 6/15/43   331,993 
 434,000   Royal Bank of Canada (Canada) MTN, 3.200%, 4/30/21   433,955 
 380,000   SunTrust Banks, Inc., 4.000%, 5/1/25   381,221 
 285,000   Wells Fargo & Co., 2.100%, 7/26/21   276,102 
 270,000   Wells Fargo & Co., 4.125%, 8/15/23   271,595 
 63,000   Wells Fargo & Co. MTN, 4.100%, 6/3/26   61,521 
         10,648,457 
           
     Health Care — 1.2%     
 114,000   Abbott Laboratories, 3.750%, 11/30/26   112,586 
 365,000   AbbVie, Inc., 4.450%, 5/14/46   319,280 
 260,000   Allergan Funding SCS (Luxembourg), 3.800%, 3/15/25   253,818 
 322,000   Allergan Sales LLC, 144a, 5.000%, 12/15/21   331,306 
 299,000   Celgene Corp., 5.000%, 8/15/45   276,480 
 312,000   Cigna Corp., 144a, 4.375%, 10/15/28   313,741 
 475,000   CVS Health Corp., 4.300%, 3/25/28   464,364 
 230,000   CVS Health Corp., 5.125%, 7/20/45   223,884 
 327,000   Express Scripts Holding Co., 3.300%, 2/25/21   325,800 
 270,000   Thermo Fisher Scientific, Inc., 3.600%, 8/15/21   270,794 
 442,000   UnitedHealth Group, Inc., 2.375%, 10/15/22   428,433 
 287,000   Zimmer Biomet Holdings, Inc., 3.150%, 4/1/22   280,603 
 139,000   Zoetis, Inc., 3.250%, 2/1/23   136,900 
         3,737,989 
           
     Energy — 1.2%     
 224,000   Boardwalk Pipelines LP, 4.450%, 7/15/27   206,820 
 333,000   Cenovus Energy, Inc. (Canada), 4.250%, 4/15/27   303,304 
 350,000   Cheniere Corpus Christi Holdings LLC, 7.000%, 6/30/24   369,250 
 301,000   Columbia Pipeline Group, Inc., 4.500%, 6/1/25   303,168 
 418,000   Enbridge, Inc. (Canada), (3M LIBOR +0.700%), 3.488%, 6/15/20(A)   416,554 
 243,000   Energy Transfer Partners LP, 4.950%, 6/15/28   237,754 
 264,000   EOG Resources, Inc., 3.900%, 4/1/35   249,244 
 440,000   Kinder Morgan Energy Partners LP, 3.500%, 9/1/23   427,403 
 106,000   Midcontinent Express Pipeline LLC, 144a, 6.700%, 9/15/19   106,994 
 324,000   Newfield Exploration Co., 5.375%, 1/1/26   317,520 
 89,000   NGPL PipeCo LLC, 144a, 7.768%, 12/15/37   101,460 
 307,000   Petroleos Mexicanos (Mexico), 4.500%, 1/23/26   264,634 
 53,000   Petroleos Mexicanos (Mexico), 144a, 5.350%, 2/12/28   46,242 
 100,000   Shell International Finance BV (Netherlands), 1.875%, 5/10/21   97,399 
 286,000   Valero Energy Corp., 4.350%, 6/1/28   283,329 
         3,731,075 
           
     Consumer Staples — 1.2%     
 379,620   Anheuser-Busch InBev Finance, Inc., 4.900%, 2/1/46   352,054 
 242,000   Ashtead Capital, Inc., 144a, 4.375%, 8/15/27   217,800 
 438,000   Cargill, Inc., 144a, 3.050%, 4/19/21   437,566 
 336,000   Conagra Brands, Inc., 4.850%, 11/1/28   330,413 
 205,000   General Mills, Inc., 3.200%, 4/16/21   203,874 
 380,000   Grupo Bimbo SAB de CV (Mexico), 144a, 4.500%, 1/25/22   387,031 
 475,000   Imperial Brands Finance PLC (United Kingdom), 144a, 4.250%, 7/21/25   467,202 
 255,000   Kraft Heinz Foods Co., 6.875%, 1/26/39   284,512 
 140,000   Kroger Co. (The), 5.000%, 4/15/42   133,256 
 374,000   Moody's Corp., 2.750%, 12/15/21   366,781 

 

 C: 
 8 

 

 

Touchstone Balanced Fund (Unaudited) (Continued)

 

Principal      Market 
Amount      Value 
         
     Corporate Bonds — 13.2% (Continued)     
           
     Consumer Staples — (Continued)     
$351,000   Reynolds American, Inc., 4.450%, 6/12/25  $338,446 
 200,000   Tyson Foods, Inc., 3.900%, 9/28/23   199,722 
         3,718,657 
           
     Industrials — 1.1%     
 103,649   Air Canada 2015-1 Class A Pass Through Trust (Canada), 144a, 3.600%, 3/15/27   99,629 
 418,000   Burlington Northern Santa Fe LLC, 5.750%, 5/1/40   489,506 
 370,000   CRH America Finance, Inc., 144a, 4.500%, 4/4/48   328,882 
 377,000   Eagle Materials, Inc., 4.500%, 8/1/26   374,308 
 166,000   Embraer Netherlands Finance BV (Netherlands), 5.050%, 6/15/25   167,869 
 167,000   Embraer Netherlands Finance BV (Netherlands), 5.400%, 2/1/27   172,429 
 280,000   FedEx Corp., 5.100%, 1/15/44   275,649 
 500,000   General Electric Co., 4.125%, 10/9/42   390,671 
 330,000   Vulcan Materials Co., 4.500%, 4/1/25   327,814 
 400,000   Wabtec Corp., 4.700%, 9/15/28   375,143 
 420,000   Westrock Co., 144a, 4.650%, 3/15/26   426,418 
         3,428,318 
           
     Communication Services — 1.1%     
 254,000   Activision Blizzard, Inc., 4.500%, 6/15/47   227,861 
 552,000   AT&T, Inc., 3.800%, 3/15/22   554,407 
 88,000   AT&T, Inc., 4.350%, 6/15/45   74,366 
 368,000   Charter Communications Operating LLC / Charter Communications Operating Capital, 6.484%, 10/23/45   378,281 
 232,000   Comcast Corp., 4.000%, 3/1/48   211,405 
 267,000   Cox Communications, Inc., 144a, 3.350%, 9/15/26   246,334 
 267,000   Interpublic Group of Cos., Inc. (The), 3.750%, 10/1/21   268,666 
 250,000   Qwest Corp., 6.750%, 12/1/21   255,613 
 426,000   Telecom Italia SpA/Milano (Italy), 144a, 5.303%, 5/30/24   404,700 
 130,000   Verizon Communications, Inc., 4.672%, 3/15/55   119,379 
 285,000   Verizon Communications, Inc., 5.012%, 4/15/49   283,975 
 287,000   Warner Media LLC, 3.800%, 2/15/27   269,293 
         3,294,280 
           
     Consumer Discretionary — 1.0%     
 105,000   Aptiv PLC (Jersey), 3.150%, 11/19/20   103,950 
 89,000   AutoNation, Inc., 5.500%, 2/1/20   90,940 
 658,000   BMW US Capital LLC, 144a, 3.100%, 4/12/21   651,676 
 410,000   Booking Holdings, Inc., 3.600%, 6/1/26   398,334 
 434,000   Dollar Tree, Inc., (3M LIBOR +0.700%), 3.149%, 4/17/20(A)   431,232 
 118,000   Ford Motor Co., 4.750%, 1/15/43   91,000 
 217,000   Ford Motor Credit Co. LLC, 4.140%, 2/15/23   206,261 
 150,000   General Motors Financial Co., Inc., 3.950%, 4/13/24   142,456 
 279,000   General Motors Financial Co., Inc., 4.350%, 4/9/25   264,340 
 285,000   Home Depot, Inc. (The), 5.950%, 4/1/41   349,726 
 434,000   Toyota Motor Credit Corp. MTN, 2.950%, 4/13/21   434,065 
         3,163,980 
           
     Real Estate — 0.9%     
 390,000   Boston Properties LP REIT, 3.200%, 1/15/25   372,401 
 403,000   Crown Castle International Corp. REIT, 3.650%, 9/1/27   373,597 
 202,000   Kimco Realty Corp. REIT, 3.125%, 6/1/23   195,374 
 288,000   Mid-America Apartments LP, REIT, 3.750%, 6/15/24   285,284 
 149,000   Sabra Health Care LP REIT, 5.125%, 8/15/26   138,089 
 110,000   SL Green Operating Partnership LP REIT, 3.250%, 10/15/22   106,282 
 244,000   Spirit Realty LP REIT, 4.450%, 9/15/26   234,405 
 795,000   VEREIT Operating Partnership LP REIT, 4.600%, 2/6/24   803,744 
 309,000   Welltower, Inc. REIT, 4.250%, 4/1/26   308,450 
         2,817,626 
           
     Information Technology — 0.9%     
 899,000   Apple, Inc., 2.750%, 1/13/25   866,869 
 110,000   Apple, Inc., 4.650%, 2/23/46   116,439 
 235,000   Dell International LLC / EMC Corp., 144a, 6.020%, 6/15/26   236,063 
 210,000   Microsoft Corp., 3.500%, 2/12/35   200,425 
 430,000   NXP BV / NXP Funding LLC (Netherlands), 144a, 5.350%, 3/1/26   437,310 
 351,000   Oracle Corp., 2.650%, 7/15/26   325,293 
 340,000   QUALCOMM, Inc., 3.450%, 5/20/25   327,125 
 297,000   Visa, Inc., 4.150%, 12/14/35   307,160 
         2,816,684 
           
     Materials — 0.6%     
 250,000   Braskem America Finance Co., 144a, 7.125%, 7/22/41   271,125 
 520,000   DowDuPont, Inc., 4.493%, 11/15/25   535,380 
 398,000   Sherwin-Williams Co. (The), 4.500%, 6/1/47   358,902 
 470,000   Suzano Austria GmbH (Austria), 144a, 5.750%, 7/14/26   479,400 
         1,644,807 

 

 C: 
 9 

 

 

Touchstone Balanced Fund (Unaudited) (Continued)

 

Principal      Market 
Amount      Value 
         
     Corporate Bonds — 13.2% (Continued)     
           
     Utilities — 0.5%     
$105,000   DTE Energy Co., 3.700%, 8/1/23  $104,265 
 237,000   Duke Energy Progress LLC, 4.150%, 12/1/44   230,083 
 329,000   Electricite de France SA (France), 144a, 4.500%, 9/21/28   318,879 
 250,000   NextEra Energy Capital Holdings, Inc., 2.800%, 1/15/23   241,259 
 76,000   Oncor Electric Delivery Co. LLC, 3.800%, 9/30/47   71,871 
 125,000   Pacific Gas & Electric Co., 144a, 4.650%, 8/1/28   114,596 
 125,000   PacifiCorp., 5.750%, 4/1/37   149,222 
 170,000   WEC Energy Group, Inc., (3M LIBOR +2.113%), 4.729%, 5/15/67(A)   138,705 
         1,368,880 
     Total Corporate Bonds  $40,370,753 
           
     U.S. Treasury Obligations — 10.1%     
 164,000   U.S. Treasury Bond, 3.000%, 8/15/48   163,225 
 120,000   U.S. Treasury Bond, 3.125%, 5/15/48   122,278 
 4,870,000   U.S. Treasury Inflation Indexed Bonds, 1.000%, 2/15/48   4,732,429 
 5,845,000   U.S. Treasury Inflation Indexed Notes, 0.750%, 7/15/28   5,763,300 
 2,365,000   U.S. Treasury Note, 2.500%, 5/31/20   2,362,875 
 14,194,000   U.S. Treasury Note, 2.500%, 3/31/23   14,195,663 
 3,500,000   U.S. Treasury Note, 2.875%, 8/15/28   3,554,141 
     Total U.S. Treasury Obligations  $30,893,911 
           
     U.S. Government Mortgage-Backed Obligations — 6.7%     
 3,591   FHLMC, Pool #G08062, 5.000%, 6/1/35   3,813 
 565,242   FHLMC, Pool #G08637, 4.000%, 4/1/45   577,577 
 532   FHLMC, Pool #G18091, 6.000%, 12/1/20   538 
 7,470   FHLMC, Pool #P00020, 6.500%, 10/1/22   7,468 
 2,401,183   FHLMC, Pool #Q02664, 4.500%, 8/1/41   2,514,157 
 3,366,093   FHLMC, Pool #Q29056, 4.000%, 10/1/44   3,440,371 
 1,595,616   FHLMC, Pool #Q29260, 4.000%, 10/1/44   1,630,889 
 380   FNMA, Pool #255273, 4.500%, 6/1/19   387 
 156   FNMA, Pool #255358, 5.000%, 9/1/19   159 
 32   FNMA, Pool #687301, 6.000%, 11/1/32   34 
 1,220   FNMA, Pool #690305, 5.500%, 3/1/33   1,290 
 672,461   FNMA, Pool #725423, 5.500%, 5/1/34   724,075 
 634,408   FNMA, Pool #725610, 5.500%, 7/1/34   683,272 
 68,523   FNMA, Pool #748895, 6.000%, 12/1/33   71,006 
 345,660   FNMA, Pool #AD9193, 5.000%, 9/1/40   366,912 
 750,857   FNMA, Pool #AH8925, 4.500%, 3/1/41   785,785 
 957,880   FNMA, Pool #AL2860, 3.000%, 12/1/42   942,187 
 423,023   FNMA, Pool #AL5718, 3.500%, 9/1/44   425,014 
 620,201   FNMA, Pool #AR9195, 3.000%, 3/1/43   609,832 
 1,184,654   FNMA, Pool #AS4707, 3.500%, 4/1/45   1,189,133 
 1,455,886   FNMA, Pool #AS8703, 2.500%, 2/1/32   1,422,374 
1,850,385   FNMA, Pool #AZ7347, 3.000%, 11/1/45  1,809,238 
 1,953,691   FNMA, Pool #BC1809, 3.500%, 5/1/46   1,959,566 
 1,191,863   GNMA, Pool #5175, 4.500%, 9/20/41   1,250,438 
     Total U.S. Government Mortgage-Backed Obligations  $20,415,515 

 

   Shares     
         
Exchange-Traded Fund — 1.7%          
iShares JP Morgan USD Emerging Markets Bond ETF   49,202   $5,112,580 

 

Principal
Amount
        
         
     Non-Agency Collateralized Mortgage Obligations — 1.6%     
$777,523   Agate Bay Mortgage Trust, Ser 2015-7, Class B1, 144a, 3.766%, 10/25/45(A)(B)   784,077 
 778,521   CSMC Trust, Ser 2015-1, Class B3, 144a, 3.941%, 1/25/45(A)(B)   761,383 
 883,908   CSMC Trust, Ser 2015-WIN1, Class B3, 144a, 3.858%, 12/25/44(A)(B)   880,012 
 828,171   CSMC Trust, Ser 2018-RPL9, Class A, 144a, 3.850%, 9/25/57(A)(B)   838,236 
 758,232   PMT Loan Trust, Ser 2013-J1, Class A11, 144a, 3.500%, 9/25/43(A)(B)   750,170 
 853,427   Sequoia Mortgage Trust 2015-2, Ser 2015-2, Class A19, 144a, 3.500%, 5/25/45(A)(B)   832,324 
     Total Non-Agency Collateralized Mortgage Obligations  $4,846,202 
           
     Asset-Backed Securities — 1.2%     
 399,523   Adams Outdoor Advertising LP, Ser 2018-1, Class A, 144a, 4.810%, 11/15/48   410,897 
 1,350,000   Hertz Vehicle Financing II LP, Ser 2016-4A, Class A, 144a, 2.650%, 7/25/22   1,321,739 
 839,375   Jimmy Johns Funding LLC, Ser 2017-1A, Class A2I, 144a, 3.610%, 7/30/47   837,000 
 1,336,508   Wendy's Funding LLC, Ser 2018-1A, Class A2I, 144a, 3.573%, 3/15/48   1,280,830 
     Total Asset-Backed Securities  $3,850,466 
           
     Agency Collateralized Mortgage Obligations — 1.0%     
 1,181,402   FHLMC REMIC, Ser 3859 Class JB, 5.000%, 5/15/41   1,251,181 
 900,000   FNMA REMIC, Ser 2013-111, Class BA, 3.000%, 11/25/33   882,075 

 

 C: 
 10 

 

 

Touchstone Balanced Fund (Unaudited) (Continued)

 

Principal      Market 
Amount      Value 
         
     Agency Collateralized Mortgage Obligations — 1.0% (Continued)     
$750,000   GNMA, Ser 2010-169, Class AW, 4.500%, 12/20/40  $782,615 
 7,420,103   GNMA, Ser 2012-147, Class IO, 0.563%, 4/16/54(A)(B)(C)   255,276 
     Total Agency Collateralized Mortgage Obligations  $3,171,147 
           
     Commercial Mortgage-Backed Securities — 0.7%     
 1,400,000   GS Mortgage Securities Trust, Ser 2017-FARM, Class B, 144a, 3.541%, 1/10/43(A)(B)   1,357,132 
 800,000   STWD 2018-URB Mortgage Trust, Ser 2018-URB, Class C, 144a, (1M LIBOR + 1.550%), 4.005%, 5/15/35(A)   793,551 
     Total Commercial Mortgage-Backed Securities  $2,150,683 
           
     Sovereign Government Obligations — 0.5%     
 238,000   Colombia Government International Bond, 5.000%, 6/15/45   226,576 
 345,000   Mexico Government International Bond, 4.350%, 1/15/47   295,665 
 359,000   Province of Alberta Canada, 2.200%, 7/26/22   350,961 
 417,000   Province of Ontario Canada, 1.875%, 5/21/20   412,264 
 140,000   Uruguay Government International Bond, 4.975%, 4/20/55   133,141 
     Total Sovereign Government Obligations  $1,418,607 

 

   Shares     
         
Preferred Stock — 0.0%          
           
Utilities — 0.0%          
Integrys Holding, Inc., 6.000%, 8/1/73   2,052   $48,530 
           
Short-Term Investment Fund — 0.5%          
Dreyfus Government Cash Management, Institutional Shares, 2.29%∞Ω   1,534,841   $1,534,841 
           
Total Investment Securities —99.7%          
(Cost $204,736,226)       $305,160,915 
           
Other Assets in Excess of Liabilities — 0.3%        879,898 
           
Net Assets — 100.0%       $306,040,813 

 

(A)Variable rate security - Rate reflected is the rate in effect as of December 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)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.

 

*Non-income producing security.

 

Open-End Fund.

 

ΩRepresents the 7-day SEC yield as of December 31, 2018.

 

Portfolio Abbreviations:

 

ADR - American Depositary Receipt

 

ETF - Exchange-Traded Fund

 

FHLMC - Federal Home Loan Mortgage Corporation

 

FNMA - Federal National Mortgage Association

 

GNMA - Government National Mortgage Association

 

LIBOR - London Interbank 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

 

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 December 31, 2018, these securities were valued at $17,543,371 or 5.7% of net assets. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees.

 

 C: 
 11 

 

 

Touchstone Balanced 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  $191,347,680   $   $   $191,347,680 
Corporate Bonds       40,370,753        40,370,753 
U.S. Treasury Obligations       30,893,911        30,893,911 
U.S. Government Mortgage-Backed Obligations       20,415,515        20,415,515 
Exchange-Traded Fund   5,112,580            5,112,580 
Non-Agency Collateralized Mortgage Obligations       4,846,202        4,846,202 
Asset-Backed Securities       3,850,466        3,850,466 
Agency Collateralized Mortgage Obligations       3,171,147        3,171,147 
Commercial Mortgage-Backed Securities       2,150,683        2,150,683 
Sovereign Government Obligations       1,418,607        1,418,607 
Preferred Stock   48,530            48,530 
Short-Term Investment Fund   1,534,841            1,534,841 
Total  $198,043,631   $107,117,284   $   $305,160,915 

 

See accompanying Notes to Financial Statements.

 

 C: 
 12 

 

 

Portfolio of Investments

Touchstone Credit Opportunities Fund December 31, 2018 (Unaudited)

 

Principal      Market 
Amount      Value 
         
     Corporate Bonds — 72.7%     
           
     Communication Services — 15.1%     
$524,000   Altice Luxembourg SA (Luxembourg), 144a, 7.625%, 2/15/25†  $391,690 
 480,000   Altice Luxembourg SA (Luxembourg), 144a, 7.750%, 5/15/22   436,800 
 255,000   AMC Networks, Inc., 4.750%, 8/1/25   231,413 
 350,000   Block Communications, Inc., 144a, 6.875%, 2/15/25   350,875 
 300,000   Cablevision Systems Corp., 5.875%, 9/15/22   294,750 
 315,000   CCO Holdings LLC / CCO Holdings Capital Corp., 144a, 5.000%, 2/1/28(A)   289,800 
 190,000   CCO Holdings LLC / CCO Holdings Capital Corp., 144a, 5.125%, 5/1/27   176,966 
 58,000   CSC Holdings LLC, 5.250%, 6/1/24   53,143 
 500,000   CSC Holdings LLC, 144a, 5.375%, 7/15/23   487,600 
 133,000   Digicel Group Ltd. (Bermuda), 144a, 8.250%, 9/30/20   89,775 
 230,000   Frontier Communications Corp., 11.000%, 9/15/25   143,164 
 60,000   Frontier Communications Corp., 144a, 8.500%, 4/1/26   52,500 
 74,000   Gray Escrow, Inc., 144a, 7.000%, 5/15/27   72,015 
 285,000   Gray Television, Inc., 144a, 5.125%, 10/15/24   262,770 
 240,000   Inmarsat Finance PLC (United Kingdom), 144a, 6.500%, 10/1/24   224,400 
 210,000   Intelsat Jackson Holdings SA (Luxembourg), 5.500%, 8/1/23   182,700 
 120,000   Intelsat Jackson Holdings SA (Luxembourg), 144a, 8.000%, 2/15/24   123,600 
 500,000   Level 3 Financing, Inc., 5.375%, 1/15/24   476,250 
 385,000   Netflix, Inc., 4.875%, 4/15/28   351,312 
 404,000   Nexstar Broadcasting, Inc., 144a, 5.625%, 8/1/24   377,740 
 262,000   Sinclair Television Group, Inc., 144a, 5.125%, 2/15/27   231,215 
 300,000   Sinclair Television Group, Inc., 144a, 5.625%, 8/1/24   281,250 
 5,000   Sirius XM Radio, Inc., 144a, 5.000%, 8/1/27   4,569 
 300,000   Sirius XM Radio, Inc., 144a, 5.375%, 7/15/26(A)   280,500 
 443,000   Sprint Corp., 7.625%, 2/15/25   443,000 
 350,000   T-Mobile USA, Inc., 4.750%, 2/1/28   316,750 
 215,000   Townsquare Media, Inc., 144a, 6.500%, 4/1/23   197,800 
 250,000   Tribune Media Co., 5.875%, 7/15/22(A)   251,250 
 125,000   Videotron Ltd. (Canada), 144a, 5.125%, 4/15/27   118,125 
         7,193,722 
           
     Consumer Discretionary — 11.1%     
230,000   Boyd Gaming Corp., 6.375%, 4/1/26  222,525 
 110,000   Carlson Travel, Inc., 144a, 6.750%, 12/15/23   106,013 
 100,000   Cedar Fair LP / Canada's Wonderland Co. / Magnum Management Corp., 5.375%, 6/1/24   97,750 
 95,000   Delphi Technologies PLC (Jersey), 144a, 5.000%, 10/1/25   79,800 
 185,000   Enterprise Development Authority (The), 144a, 12.000%, 7/15/24   168,350 
 140,000   Golden Nugget, Inc., 144a, 6.750%, 10/15/24   131,950 
 379,000   Group 1 Automotive, Inc., 5.000%, 6/1/22   359,102 
 590,000   Hillman Group, Inc. (The), 144a, 6.375%, 7/15/22   477,900 
 600,000   IRB Holding Corp., 144a, 6.750%, 2/15/26   525,000 
 33,000   JELD-WEN, Inc., 144a, 4.625%, 12/15/25   28,875 
 575,000   JELD-WEN, Inc., 144a, 4.875%, 12/15/27   485,875 
 385,000   KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC, 144a, 4.750%, 6/1/27   358,050 
 140,000   L Brands, Inc., 6.875%, 11/1/35   116,928 
 145,000   MGM Resorts International, 5.750%, 6/15/25   139,925 
 119,000   Penske Automotive Group, Inc., 5.500%, 5/15/26   110,670 
 77,000   PetSmart, Inc., 144a, 5.875%, 6/1/25   55,632 
 714,000   Sabre GLBL, Inc., 144a, 5.250%, 11/15/23(A)   705,075 
 34,000   Scientific Games International, Inc., 144a, 5.000%, 10/15/25   30,345 
 557,000   Six Flags Entertainment Corp., 144a, 4.875%, 7/31/24   524,972 
 250,000   Six Flags Entertainment Corp., 144a, 5.500%, 4/15/27   235,625 
 380,000   Station Casinos LLC, 144a, 5.000%, 10/1/25   343,900 
         5,304,262 
           
     Industrials — 9.8%     
 462,000   Air Medical Group Holdings, Inc., 144a, 6.375%, 5/15/23   390,390 
 159,000   Avolon Holdings Funding Ltd. (Cayman Islands), 144a, 5.125%, 10/1/23   151,845 
 185,000   Berry Global, Inc., 144a, 4.500%, 2/15/26   169,275 
 50,000   Bombardier, Inc. (Canada), 144a, 6.000%, 10/15/22   46,875 
 289,000   Bombardier, Inc. (Canada), 144a, 7.500%, 12/1/24   272,383 

 

 C: 
 13 

 

 

Touchstone Credit Opportunities Fund (Unaudited) (Continued)

 

Principal      Market 
Amount      Value 
         
     Corporate Bonds — 72.7% (Continued)     
           
     Industrials — (Continued)     
$201,000   BWX Technologies, Inc., 144a, 5.375%, 7/15/26  $193,402 
 141,000   Core & Main LP, 144a, 6.125%, 8/15/25   124,080 
 30,000   DAE Funding LLC, 144a, 4.500%, 8/1/22   28,800 
 250,000   DAE Funding LLC, 144a, 5.750%, 11/15/23   247,500 
 132,000   GFL Environmental, Inc. (Canada), 144a, 5.375%, 3/1/23   115,500 
 171,000   HD Supply, Inc., 144a, 5.375%, 10/15/26   165,870 
 250,000   KAR Auction Services, Inc., 144a, 5.125%, 6/1/25   225,625 
 320,000   Multi-Color Corp., 144a, 4.875%, 11/1/25   275,200 
 191,000   Novelis Corp., 144a, 5.875%, 9/30/26   169,035 
 326,000   OI European Group BV (Netherlands), 144a, 4.000%, 3/15/23   304,810 
 273,000   RBS Global, Inc. / Rexnord LLC, 144a, 4.875%, 12/15/25   247,748 
 54,000   Refinitiv US Holdings, Inc., 144a, 8.250%, 11/15/26   49,342 
 474,000   Sensata Technologies BV (Netherlands), 144a, 5.000%, 10/1/25   445,560 
 69,000   TransDigm, Inc., 6.000%, 7/15/22   67,965 
 250,000   TransDigm, Inc., 6.500%, 5/15/25   238,750 
 405,000   Tutor Perini Corp., 144a, 6.875%, 5/1/25   376,650 
 375,000   United Rentals North America, Inc., 5.875%, 9/15/26   353,438 
         4,660,043 
           
     Energy — 9.3%     
 81,000   Calfrac Holdings LP, 144a, 8.500%, 6/15/26   57,510 
 114,000   California Resources Corp., 144a, 8.000%, 12/15/22†   77,235 
 33,000   Carrizo Oil & Gas, Inc., 6.250%, 4/15/23   30,525 
 226,000   Exterran Energy Solutions LP / EES Finance Corp., 8.125%, 5/1/25   216,960 
 348,000   Extraction Oil & Gas, Inc., 144a, 5.625%, 2/1/26   254,040 
 63,000   Extraction Oil & Gas, Inc., 144a, 7.375%, 5/15/24   51,975 
 387,000   FTS International, Inc., 6.250%, 5/1/22   342,495 
 106,000   Great Western Petroleum LLC / Great Western Finance Corp., 144a, 9.000%, 9/30/21   96,460 
 191,000   Hess Infrastructure Partners LP / Hess Infrastructure Partners Finance Corp., 144a, 5.625%, 2/15/26   184,792 
 69,000   Hilcorp Energy I LP / Hilcorp Finance Co., 144a, 5.000%, 12/1/24   61,065 
 73,000   Hilcorp Energy I LP / Hilcorp Finance Co., 144a, 5.750%, 10/1/25   64,970 
 110,000   Hilcorp Energy I LP / Hilcorp Finance Co., 144a, 6.250%, 11/1/28   96,800 
 198,000   Murphy Oil Corp., 6.875%, 8/15/24   196,930 
 27,000   Murray Energy Corp., 144a, 11.250%, 4/15/21   16,841 
 168,475   Murray Energy Corp., 144a, 12.000%, 4/15/24(B)   90,976 
 99,000   Parsley Energy LLC / Parsley Finance Corp., 144a, 5.375%, 1/15/25   91,080 
 500,000   Parsley Energy LLC / Parsley Finance Corp., 144a, 6.250%, 6/1/24   485,000 
 230,000   Peabody Energy Corp., 144a, 6.000%, 3/31/22   223,100 
 195,000   Rowan Cos., Inc., 7.375%, 6/15/25   156,488 
 200,000   Seven Generations Energy Ltd. (Canada), 144a, 5.375%, 9/30/25   179,000 
 220,000   SRC Energy, Inc., 6.250%, 12/1/25   182,600 
 207,000   Summit Midstream Holdings LLC / Summit Midstream Finance Corp., 5.500%, 8/15/22   196,650 
 347,000   Summit Midstream Holdings LLC / Summit Midstream Finance Corp., 5.750%, 4/15/25   319,240 
 89,000   Targa Resources Partners LP / Targa Resources Partners Finance Corp., 144a, 5.875%, 4/15/26   86,552 
 78,000   TerraForm Power Operating LLC, 144a, 4.250%, 1/31/23   72,735 
 45,000   TerraForm Power Operating LLC, 144a, 5.000%, 1/31/28   39,600 
 188,000   Vine Oil & Gas LP / Vine Oil & Gas Finance Corp., 144a, 9.750%, 4/15/23   150,400 
 40,000   Weatherford International LLC, 144a, 9.875%, 3/1/25   24,300 
 60,000   Weatherford International Ltd. (Bermuda), 5.875%, 7/1/21   37,617 
 35,000   Weatherford International Ltd. (Bermuda), 9.875%, 2/15/24†   21,350 
 50,000   Whiting Petroleum Corp., 5.750%, 3/15/21   47,500 
 239,000   Whiting Petroleum Corp., 6.250%, 4/1/23   217,490 
 80,000   Whiting Petroleum Corp., 6.625%, 1/15/26   68,600 
         4,438,876 
           
     Health Care — 8.4%     
 92,000   Acadia Healthcare Co., Inc., 5.125%, 7/1/22   87,860 
 320,000   Acadia Healthcare Co., Inc., 5.625%, 2/15/23   303,200 
 18,000   Acadia Healthcare Co., Inc., 6.500%, 3/1/24   17,370 

 

 C: 
 14 

 

 

Touchstone Credit Opportunities Fund (Unaudited) (Continued)

 

Principal      Market 
Amount      Value 
         
     Corporate Bonds — 72.7% (Continued)     
           
     Health Care — (Continued)     
$444,000   Bausch Health Cos, Inc. (Canada), 144a, 5.500%, 3/1/23  $406,260 
 4,000   Bausch Health Cos, Inc. (Canada), 144a, 5.625%, 12/1/21   3,940 
 100,000   Bausch Health Cos, Inc. (Canada), 144a, 6.125%, 4/15/25   87,250 
 100,000   Bausch Health Cos, Inc. (Canada), 144a, 6.500%, 3/15/22   100,500 
 443,000   BioScrip, Inc., 8.875%, 2/15/21†   413,098 
 160,000   Centene Corp., 4.750%, 1/15/25   152,800 
 95,000   Centene Corp., 6.125%, 2/15/24(A)   97,256 
 410,000   DJO Finance LLC / DJO Finance Corp., 144a, 8.125%, 6/15/21   422,300 
 100,000   HCA, Inc., 7.690%, 6/15/25   106,500 
 222,000   Hill-Rom Holdings, Inc., 144a, 5.000%, 2/15/25   210,900 
 23,000   Immucor, Inc., 144a, 11.125%, 2/15/22   23,000 
 295,000   Molina Healthcare, Inc., 5.375%, 11/15/22   284,675 
 100,000   Molina Healthcare, Inc., 144a, 4.875%, 6/15/25   91,250 
 157,000   RegionalCare Hospital Partners Holdings, Inc., 144a, 8.250%, 5/1/23   158,570 
 356,000   Sotera Health Holdings LLC, 144a, 6.500%, 5/15/23   340,870 
 220,000   Tenet Healthcare Corp., 4.625%, 7/15/24   204,600 
 424,000   Tenet Healthcare Corp., 7.000%, 8/1/25†   392,200 
 85,000   WellCare Health Plans, Inc., 144a, 5.375%, 8/15/26   82,025 
         3,986,424 
           
     Materials — 5.5%     
 145,000   Ardagh Packaging Finance PLC / Ardagh Holdings USA, Inc. (Ireland), 144a, 6.000%, 2/15/25   133,852 
 214,000   Constellium NV (Netherlands), 144a, 5.750%, 5/15/24   196,880 
 95,000   Constellium NV (Netherlands), 144a, 5.875%, 2/15/26   84,550 
 530,000   Crown Americas LLC / Crown Americas Capital Corp. VI, 144a, 4.750%, 2/1/26   499,525 
 135,000   First Quantum Minerals Ltd. (Canada), 144a, 6.875%, 3/1/26   108,338 
 109,000   Freeport-McMoRan, Inc., 4.000%, 11/14/21   106,002 
 210,000   Freeport-McMoRan, Inc., 5.400%, 11/14/34(A)   165,375 
 160,000   Freeport-McMoRan, Inc., 5.450%, 3/15/43   121,800 
 93,000   HB Fuller Co., 4.000%, 2/15/27   78,120 
223,000   Kraton Polymers LLC / Kraton Polymers Capital Corp., 144a, 7.000%, 4/15/25  205,160 
 625,000   New Gold, Inc. (Canada), 144a, 6.250%, 11/15/22   525,000 
 100,000   New Gold, Inc. (Canada), 144a, 6.375%, 5/15/25   76,000 
 105,000   Olin Corp., 5.000%, 2/1/30   92,006 
 91,000   Starfruit Finco BV / Starfruit US Holdco LLC, 144a, 8.000%, 10/1/26†   84,175 
 101,000   Trinseo Materials Operating SCA / Trinseo Materials Finance, Inc. (Luxembourg), 144a, 5.375%, 9/1/25   88,274 
 100,000   Tronox Finance PLC (United Kingdom), 144a, 5.750%, 10/1/25   81,000 
         2,646,057 
           
     Information Technology — 4.0%     
 245,000   Genesys Telecommunications Laboratories, Inc./Greeneden Lux 3 SARL/Greeneden US Ho, 144a, 10.000%, 11/30/24   256,638 
 526,000   NCR Corp., 5.000%, 7/15/22   495,755 
 395,000   Nielsen Co. Luxembourg SARL (The) (Luxembourg), 144a, 5.000%, 2/1/25(A)   369,325 
 325,000   Nielsen Finance LLC / Nielsen Finance Co., 144a, 5.000%, 4/15/22   310,375 
 320,000   Radiate Holdco LLC / Radiate Finance, Inc., 144a, 6.625%, 2/15/25   276,800 
 200,000   Solera LLC / Solera Finance, Inc., 144a, 10.500%, 3/1/24   213,000 
         1,921,893 
           
     Financials — 3.3%     
 313,000   Acrisure LLC / Acrisure Finance, Inc., 144a, 7.000%, 11/15/25   266,833 
 611,000   ASP AMC Merger Sub, Inc., 144a, 8.000%, 5/15/25   323,830 
 750,000   Blue Racer Midstream LLC / Blue Racer Finance Corp., 144a, 6.125%, 11/15/22(A)   723,750 
 315,000   Quicken Loans, Inc., 144a, 5.250%, 1/15/28   278,775 
         1,593,188 
           
     Real Estate — 2.9%     
 521,000   ESH Hospitality, Inc. REIT, 144a, 5.250%, 5/1/25   484,530 
 40,000   GEO Group, Inc. (The) REIT, 5.125%, 4/1/23   36,000 
 135,000   GEO Group, Inc. (The) REIT, 6.000%, 4/15/26   118,462 

 

 C: 
 15 

 

 

Touchstone Credit Opportunities Fund (Unaudited) (Continued)

 

Principal      Market 
Amount      Value 
         
     Corporate Bonds — 72.7% (Continued)     
           
     Real Estate — (Continued)     
$351,000   Iron Mountain, Inc. REIT, 144a, 5.250%, 3/15/28  $309,758 
 498,000   Realogy Group LLC / Realogy Co.-Issuer Corp., 144a, 4.875%, 6/1/23†   433,260 
         1,382,010 
           
     Consumer Staples — 1.7%     
 380,000   B&G Foods, Inc., 5.250%, 4/1/25(A)   353,400 
 100,000   Clearwater Seafoods, Inc. (Canada), 144a, 6.875%, 5/1/25   95,750 
 115,000   Cott Holdings, Inc., 144a, 5.500%, 4/1/25   108,388 
 245,000   Simmons Foods, Inc., 144a, 5.750%, 11/1/24   173,950 
 70,000   Simmons Foods, Inc., 144a, 7.750%, 1/15/24   70,350 
         801,838 
           
     Utilities — 1.6%     
 306,000   NGL Energy Partners LP / NGL Energy Finance Corp., 7.500%, 11/1/23   293,760 
 31,000   Pacific Gas & Electric Co., 3.300%, 3/15/27   25,519 
 31,000   Pacific Gas & Electric Co., 3.500%, 6/15/25   26,568 
 60,000   Pacific Gas & Electric Co., 144a, 4.250%, 8/1/23   55,593 
 200,000   Vistra Energy Corp., 7.625%, 11/1/24   211,000 
 151,000   Vistra Operations Co. LLC, 144a, 5.500%, 9/1/26   145,338 
         757,778 
     Total Corporate Bonds  $34,686,091 
           
     Bank Loans(C) — 16.8%     
           
     Consumer Discretionary — 3.6%     
 239,756   Caesars Resort Collection LLC, Term B Loan (LIBOR +2.750%), 5.272%, 12/23/24(D)   229,823 
 174,230   GOBP Holdings, Inc., First Lien Initial Term Loan ( LIBOR + 3.750%), 6.553%, 10/22/25   169,583 
 259,526   Golden Nugget, Inc., B Team Loan (LIBOR +2.750%), 5.237%, 10/4/23(D)   249,145 
 109,716   Houghton Mifflin Harcourt Publishers, Inc., Term Loan (LIBOR +3.000%), 5.522%, 5/28/21   99,156 
 227,211   IRB Holding Corp., Team B Loan (LIBOR +3.250%), 5.682%, 2/5/25   216,191 
 125,752   Jeld-Wen, Inc., Term B-4 Loan (LIBOR +2.000%), 4.803%, 12/14/24   119,360 
 112,206   Mohegan Tribal Gaming Authority, Team B Loan (LIBOR + 4.000%), 6.522%, 10/13/23   99,639 
327,799   Petco Animal Supplies Inc, Term Loan (LIBOR +3.250%), 5.777%, 1/26/23  238,746 
 216,827   Scientific Games International, Inc., Initial Term B-5 Loan (LIBOR+2.750%), 5.250%, 8/14/24(D)   202,966 
 99,742   Station Casinos LLC, Team B Facility Loan (LIBOR +2.500%), 5.030%, 6/8/23(D)   95,539 
         1,720,148 
           
     Industrials — 3.2%     
 298,021   Air Medical Group Holdings Inc, 2018 Term Loan (LIBOR +3.250%), 5.682%, 4/28/22   277,624 
 33,978   Avolon TLB Borrower 1 US LLC, Term B-3 Loan (LIBOR +2.000%), 1/15/25(D)   32,591 
 265,733   Cumulus Media New Holdings Inc., Exit Term Loan (LIBOR +4.500%), 7.030%, 5/13/22   248,128 
 83,420   Engility Corporation, New Term B-2 Loan (LIBOR +2.750%), 5.272%, 8/14/23   82,769 
 56,549   Envigo Laboratories Inc, First Lien Dollar Term Loan (LIBOR +8.500%), 10.930%, 10/28/21   55,531 
 471,157   Forterra Finance LLC, Replacement Term Loan (LIBOR +3.000%), 5.522%, 10/25/23   423,872 
 199,644   Gardner Denver, Inc., Tranche B-1 Dollar Term Loan (LIBOR +2.750%), 7/30/24(D)   192,345 
 238,325   Sequa Mezzanine Holdings LLC, Initial Term Loan (First Lien) (LIBOR +5.000%), 7.408%, 11/28/21   226,706 
         1,539,566 
           
     Health Care — 2.4%     
 150,000   Air Methods Corporation, Initial Term Loan (LIBOR +3.500%), 6.303%, 4/21/24   118,071 
 101,408   Bausch Health Companies, Inc., Initial Term Loan (LIBOR +3.000%), 5.379%, 6/2/25(D)   96,648 
 352,985   BPA Laboratories, Inc., Term Loan (Second Lien) (LIBOR +7.750%), 10.553%, 4/29/20   324,746 
 247,457   DJO Finance LLC, Initial Term Loan (LIBOR +3.250%), 5.709%, 6/8/20   243,869 
 117,372   General Nutrition Center, Inc., First in last Out Term Loan (LIBOR +7.000%), 9.530%, 12/31/22   115,611 

 

 C: 
 16 

 

 

Touchstone Credit Opportunities Fund (Unaudited) (Continued)

 

Principal      Market 
Amount      Value 
         
     Bank Loans(C) — 16.8% (Continued)     
           
     Health Care — (Continued)     
$208,860   LifePoint Health, Inc., First Lien Term B Loan (LIBOR +4.500%), 7.129%, 11/14/25  $197,633 
 63,131   Universal Hospital Services, Inc., Delayed Draw Team Loan B (LIBOR +3.000%), 10/20/25(D)   60,922 
         1,157,500 
           
     Energy — 2.2%     
 155,385   California Resources Corp., Term Loan (LIBOR +10.375%), 12.897%, 12/31/21(D)   151,888 
 96,739   California Resources Corp., Term Loan (LIBOR +4.750%), 7.256%, 12/31/22   93,514 
 88,000   Equitrans Midstream Corp., Term Loan (LIBOR +4.500%), 12/13/23(D)   85,873 
 35,096   FTS International Inc, Initial Term Loan (LIBOR +4.750%), 7.272%, 4/16/21   34,453 
 118,428   Gulf Finance LLC, Tranche B Term Loan (LIBOR +5.250%), 7.885%, 8/25/23   89,857 
 124,687   Murray Energy Corporation, Superpriority Term B-2 Loan (LIBOR +7.250%), 9.777%, 10/17/22   105,049 
 202,281   Traverse Midstream Partners LLC, Advance (LIBOR +4.000%), 6.600%, 9/27/24(D)   193,684 
 116,410   Ultra Resources, Inc., Senior Secured Term Loan (LIBOR +4.000%), 6.469%, 4/12/24   103,459 
 179,371   Woodford Express LLC, Initial Term Loan (LIBOR +5.000%), 7.522%, 1/27/25   170,253 
         1,028,030 
           
     Communication Services — 1.9%     
 42,151   Applied Systems Inc, Second Lien Initial Term Loan (LIBOR +7.000%), 9.522%, 9/19/25   40,991 
 99,748   CenturyLink, Inc., Initial Team B Loan (LIBOR +2.750%), 5.272%, 1/31/25   92,865 
 239,395   Charter Communications Operating LLC, Term B Loan (LIBOR +2.000%), 4/30/25(D)   228,953 
 80,000   Nielsen Finance LLC, Class B-4 Team Loan (LIBOR +2.000%), 10/4/23(D)   77,500 
 496,231   WideOpenWest Finance LLC, Refinancing Term B Loan (LIBOR +3.250%), 5.720%, 8/18/23   458,394 
         898,703 
           
     Information Technology — 1.4%     
 51,652   Diebold Nixdorf Incorporated, New Dollar Term B Loan (PRIME +1.750%), 5.188%, 11/6/23(D)   43,388 
 135,866   Diebold Nixdorf Incorporated, Term Loan A1 (LIBOR +9.250%), 11.813%, 8/30/22   139,179 
 186,672   Evergreen Skills Lux SARL, First Lien Initial Term Loan (Luxembourg) (LIBOR +4.750%), 7.272%, 4/28/21   150,426 
 103,877   Infoblox, Inc., Refinancing Term Loan (LIBOR +4.500%), 7.022%, 11/7/23   103,164 
 191,138   Iron Mountain Information Management LLC, Term Loan A (LIBOR +1.750%), 4.182%, 6/5/23   188,271 
 48,144   Optiv Inc, Initial Term Loan (First Lien) (LIBOR +3.250%), 5.772%, 2/1/24   44,473 
         668,901 
           
     Financials — 1.2%     
 130,345   Acrisure LLC, 1st Lien 2018-1 Additional Term Loan (LIBOR +3.750%), 6.272%, 11/22/23   122,850 
 227,946   Asurion LLC, Second Lien Replacement B-2 Term Loan (LIBOR +6.500%), 9.022%, 8/4/25   224,955 
 233,494   HUB International Ltd., Initial Term Loan (LIBOR +3.000%), 5.240%, 4/25/25   219,996 
         567,801 
           
     Materials — 0.5%     
 278,233   BWay Holding Company, Initial Term Loan (LIBOR +3.250%), 5.658%, 4/3/24(D)   261,074 
           
     Utilities — 0.3%     
 137,871   Vistra Operations Company LLC, 2018 Incremental Term Loan (LIBOR +2.000%), 4.473%, 12/31/25   132,375 
           
     Consumer Staples — 0.1%     
 46,533   Energizer Holdings, Inc., Term B Loan (LIBOR+2.250%), 12/17/25(D)   44,847 
     Total Bank Loans  $8,018,945 
           
     Asset-Backed Securities — 3.8%     
 250,000   Dryden 45 Senior Loan Fund, Ser 2016-45A, Class ER, (Cayman Islands), 144a, (3M LIBOR +5.850%), 8.286% 10/15/30(E)   227,459 
 300,000   Madison Park Funding XII Ltd., Ser 2014-12A, Class SUB, (Cayman Islands), 144a, 7/20/26(F)   151,470 
 250,000   Madison Park Funding XXXI Ltd., Ser 2018-31A, Class SUB, (Cayman Islands), 144a, 1/23/48(F)   230,776 

 

 C: 
 17 

 

 

Touchstone Credit Opportunities Fund (Unaudited) (Continued)

 

Principal      Market 
Amount      Value 
         
     Asset-Backed Securities — 3.8% (Continued)     
$500,000   Oaktree CLO Ltd., Ser 2018-1A, Class SUB, (Cayman Islands), 144a, 10/20/30(F)  $445,554 
 500,000   OZLM XXI, Ser 2017-21A, Class SUB, (Cayman Islands), 144a, 1/20/31(F)   390,468 
 250,000   Venture XVIII CLO Ltd., Ser 2014-18A, Class SUB, (Cayman Islands), 144a, 10/15/29(F)   157,802 
 250,000   Wellfleet CLO Ltd., Ser 2018-3A, Class SUB, (Cayman Islands), 144a, 1/20/32(F)   215,892 
     Total Asset-Backed Securities  $1,819,421 

Shares        
         
     Common Stocks — 2.0%     
           
     Information Technology — 1.9%     
 692,722   Eagle Topco Ltd.*   233,097 
 8,386   MModal LLC*   645,722 
         878,819 
           
     Industrials — 0.0%     
 1,299   Cumulus Media New Holdings*   12,016 
           
     Energy — 0.1%     
 74,381   Trident, Class A Templar Restructure*   18,595 
 11,748   Trident, Templar Restructure*   29,370 
         47,965 
     Total Common Stocks  $938,800 

   Number         
   of   Notional     
   Contracts   Amount     
Purchased Call Options — 0.1%               
VIX, Strike @20.00, Exp 1/19(A)   64    162,688   $28,800 

Shares        
         
     Warrants — 0.0%     
           
     Health Care — 0.0%     
 1,179   Envigo Laboratories, Inc. (Fka Bpa Laboratories Inc.) Series A Warrant(G)*    
 1,890   Envigo Laboratories, Inc. (Fka Bpa Laboratories Inc.) Series B Warrant(G)*    
     Total Warrants  $ 
           
     Short-Term Investment Funds — 11.0%     
 3,546,294   Dreyfus Government Cash Management, Institutional Shares, 2.29%∞Ω   3,546,294 
 1,694,164   Invesco Government & Agency Portfolio, Institutional Class, 2.30%**∞Ω   1,694,164 
     Total Short-Term Investment Funds  $5,240,458 

 

   Market 
   Value 
     
Total Long Positions —106.4%     
(Cost $53,415,273)  $50,732,515 

   Number         
   of   Notional     
   Contracts   Amount     
             
Written Call Options — (0.0%)               
VIX, Strike @25.00, Exp 1/19   (64)  $(162,688)   (10,560)
(Premiums received $7,621)            $(10,560)
                
Total — 106.4%          $50,721,955 
                
Liabilities in Excess of Other Assets — (6.4%)             (3,014,566)
                
Net Assets — 100.0%          $47,707,389 

 

(A)All or a portion of these securities are pledged as collateral for written options. The total value of the securities pledged as collateral as of December 31, 2018 was $2,058,444.

 

(B)Represents a payment-in-kind (“PIK”) security, which may pay interest in additional principal amounts.

 

(C)Bank loans pay interest at rates which adjust periodically unless otherwise indicated. The interest rates shown are the current interest rates as of December 31, 2018.

 

(D)All or a portion of this position has not settled. Full contract rates do not take effect until settlement date.

 

(E)Variable rate security - Rate reflected is the rate in effect as of December 31, 2018.

 

(F)Security has no stated coupon and is considered an equity position in the collateralized loan obligation (“CLO”). CLO equity investments are entitled to recurring distributions which are generally equal to the excess cash flow generated from the underlying investments after payment of the contractual payments to debt holders and fund expenses.

 

(G)Level3 - 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.

 

**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 December 31, 2018 was $1,615,787.

 

 C: 
 18 

 

 

Touchstone Credit Opportunities Fund (Unaudited) (Continued)

 

Open-End Fund.

 

ΩRepresents the 7-day SEC yield as of December 31, 2018.

 

Portfolio Abbreviations:

 

CLO - Collateral Loan Obligations

 

LIBOR - London Interbank Offered Rate

 

LLC - Limited Liability Company

 

LP - Limited Partnership

 

PIK - Pay-in-Kind

 

PLC - Public Limited Company

 

REIT - Real Estate Investment Trust

 

144a - This is a restricted security that was sold in a transaction exempt from Rule 144a of the Securities Act of 1933. This security may be sold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2018, these securities were valued at $ 25,836,956 or 54.2% 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:                    
Corporate Bonds  $   $34,686,091   $   $34,686,091 
Bank Loans       8,018,945        8,018,945 
Asset-Backed Securities       1,819,421        1,819,421 
Common Stocks   938,800            938,800 
Purchased Call Options Equity Contracts   28,800            28,800 
Warrants                
Short-Term Investment Funds   5,240,458            5,240,458 
Total Assets  $6,208,058   $44,524,457   $   $50,732,515 
                     
Liabilities:                    
Written Call Options Equity Contracts  $(10,560)  $   $   $(10,560)
Total Liabilities  $(10,560)  $   $   $(10,560)
Total  $6,197,498   $44,524,457   $   $50,721,955 

 

See accompanying Notes to Financial Statements.

 

 C: 
 19 

 

 

Portfolio of Investments

Touchstone International Equity Fund December 31, 2018 (Unaudited)

 

       Market 
   Shares   Value 
         
Common Stocks — 95.8%          
           
United Kingdom — 27.8%          
           
Communication Services — 7.2%          
Auto Trader Group PLC, 144a   530,000   $3,075,799 
ITV PLC   2,610,000    4,154,244 
WPP PLC   310,000    3,373,728 
           
Consumer Discretionary — 8.4%          
BCA Marketplace PLC   1,616,766    4,528,724 
Compass Group PLC   174,000    3,659,377 
InterContinental Hotels Group PLC   76,000    4,111,057 
           
Consumer Staples — 3.3%          
Reckitt Benckiser Group PLC   62,500    4,786,021 
           
Health Care — 0.4%          
Indivior PLC*   431,000    617,526 
           
Industrials — 2.4%          
Experian PLC   148,000    3,587,806 
           
Information Technology — 2.1%          
AVEVA Group PLC   100,000    3,084,943 
           
Real Estate — 4.0%          
Foxtons Group PLC   1,750,000    1,186,653 
Savills PLC   520,000    4,687,977 
Total United Kingdom        40,853,855 
           
Switzerland — 9.1%          
           
Consumer Staples — 3.8%          
Nestle SA   68,000    5,519,069 
           
Health Care — 2.4%          
Novartis AG   42,000    3,597,059 
           
Industrials — 2.9%          
Adecco Group AG   91,000    4,277,220 
Total Switzerland        13,393,348 
           
Germany — 6.7%          
           
Industrials — 3.5%          
Brenntag AG   120,000    5,237,907 
           
Information Technology — 3.2%          
SAP SE   47,000    4,664,740 
Total Germany        9,902,647 
           
India — 6.6%          
           
Consumer Discretionary — 2.2%          
PC Jeweller Ltd.   2,600,000    3,202,139 
           
Financials — 4.4%          
Indian Energy Exchange Ltd., 144a   848,898    2,015,031 
Shriram Transport Finance Co. Ltd.   255,000    4,526,604 
Total India        9,743,774 
           
Canada — 6.6%        
         
Consumer Discretionary — 2.3%          
Uni-Select, Inc.†   240,000   $3,412,247 
           
Information Technology — 2.0%          
BlackBerry Ltd.*   419,000    2,979,090 
           
Materials — 2.3%          
Pretium Resources, Inc.*†   389,000    3,287,050 
Total Canada        9,678,387 
           
France — 5.1%          
           
Communication Services — 4.0%          
Eutelsat Communications SA   125,000    2,462,647 
JCDecaux SA   121,000    3,399,351 
           
Industrials — 1.1%          
Edenred   43,000    1,583,647 
Total France        7,445,645 
           
China — 4.9%          
           
Communication Services — 3.4%          
Baidu, Inc. ADR*   16,500    2,616,900 
Tencent Holdings Ltd.   60,000    2,404,821 
           
Consumer Discretionary — 1.5%          
Alibaba Group Holding Ltd. ADR*   16,000    2,193,120 
Total China        7,214,841 
           
Japan — 4.8%          
           
Consumer Discretionary — 2.5%          
USS Co. Ltd.   222,000    3,724,806 
           
Industrials — 2.3%          
FANUC Corp.   22,000    3,338,713 
Total Japan        7,063,519 
           
Denmark — 3.3%          
           
Industrials — 3.3%          
ISS A/S   172,000    4,815,450 
           
Greece — 3.1%          
           
Consumer Discretionary — 3.1%          
OPAP SA   520,000    4,525,029 
           
Ireland — 2.9%          
           
Health Care — 2.9%          
Medtronic PLC   46,000    4,184,160 
           
Brazil — 2.5%          
           
Health Care — 2.5%          
Qualicorp Consultoria e Corretora de Seguros SA   1,095,000    3,641,760 

 

 C: 
 20 

 

 

Touchstone International Equity Fund (Unaudited) (Continued)

 

       Market 
   Shares   Value 
         
Common Stocks — 95.8% (Continued)          
           
Mexico — 2.0%          
           
Consumer Staples — 2.0%          
Gruma SAB de CV - Class B   265,000   $2,991,873 
           
Spain — 1.9%        
         
Utilities — 1.9%          
Red Electrica Corp. SA   127,000    2,832,132 
           
Jersey — 1.9%          
           
Materials — 1.9%          
Randgold Resources Ltd.   33,500    2,811,907 
           
Australia — 1.8%          
           
Materials — 1.8%          
Northern Star Resources Ltd.   400,000    2,611,023 
           
Netherlands — 1.7%          
           
Energy — 1.7%          
Core Laboratories NV   41,000    2,446,060 
           
United States — 1.6%          
           
Information Technology — 1.6%          
Mastercard, Inc. - Class A   12,500    2,358,125 
           
Hong Kong — 1.5%          
           
Consumer Discretionary — 1.5%          
Galaxy Entertainment Group Ltd.   350,000    2,210,828 
Total Common Stocks       $140,724,363 
           
Short-Term Investment Funds — 8.8%          
Dreyfus Government Cash Management, Institutional Shares, 2.29%∞Ω   6,921,476    6,921,476 
Invesco Government & Agency Portfolio, Institutional Class, 2.30%**∞Ω   5,935,346    5,935,346 
Total Short-Term Investment Funds       $12,856,822 
           
Total Investment Securities —104.6%          
(Cost $160,335,323)       $153,581,185 
           
Liabilities in Excess of Other Assets — (4.6%)        (6,696,267)
           
Net Assets — 100.0%       $146,884,918 

 

*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 December 31, 2018 was $5,859,782.

 

Open-End Fund.

 

ΩRepresents the 7-day SEC yield as of December 31, 2018.

 

Portfolio Abbreviations:

 

ADR - American Depositary Receipt

 

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 December 31, 2018, these securities were valued at $5,090,830 or 3.5% of net assets. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees.

 

 C: 
 21 

 

 

Touchstone International 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                    
United Kingdom  $4,846,030   $36,007,825   $   $40,853,855 
Switzerland       13,393,348        13,393,348 
Germany       9,902,647        9,902,647 
India       9,743,774        9,743,774 
Canada   9,678,387            9,678,387 
France   3,399,351    4,046,294        7,445,645 
China   4,810,020    2,404,821        7,214,841 
Japan       7,063,519        7,063,519 
Denmark       4,815,450        4,815,450 
Greece   4,525,029            4,525,029 
Ireland   4,184,160            4,184,160 
Brazil   3,641,760            3,641,760 
Mexico   2,991,873            2,991,873 
Spain       2,832,132        2,832,132 
Jersey       2,811,907        2,811,907 
Australia       2,611,023        2,611,023 
Netherlands   2,446,060            2,446,060 
United States   2,358,125            2,358,125 
Hong Kong       2,210,828        2,210,828 
Short-Term Investment Funds   12,856,822            12,856,822 
Total  $55,737,617   $97,843,568   $   $153,581,185 

 

See accompanying Notes to Financial Statements.

 

 C: 
 22 

 

 

Portfolio of Investments

Touchstone International Growth Opportunities FundDecember 31, 2018 (Unaudited)

 

       Market 
   Shares   Value 
         
Common Stocks — 99.7%          
           
China — 38.5%          
           
Communication Services — 22.4%          
58.com, Inc. ADR*   13,390   $725,872 
Autohome, Inc. ADR*   15,075    1,179,317 
Baidu, Inc. ADR*   5,645    895,297 
Tencent Holdings Ltd.   61,125    2,449,911 
Tencent Music Entertainment Group ADR*†   24,450    323,229 
Weibo Corp. ADR*   29,500    1,723,685 
           
Consumer Discretionary — 12.4%          
Alibaba Group Holding Ltd. ADR*   18,135    2,485,764 
Ctrip.com International Ltd. ADR*   23,705    641,457 
New Oriental Education &          
Technology Group, Inc. ADR*   16,590    909,298 
           
Consumer Staples — 3.7%          
Kweichow Moutai Co. Ltd. - Class A   7,300    630,565 
Wuliangye Yibin Co. Ltd. - Class A   80,528    598,828 
Total China        12,563,223 
           
France — 10.5%          
           
Communication Services — 2.4%          
Ubisoft Entertainment SA*   9,585    772,187 
           
Industrials — 5.2%          
Safran SA   14,140    1,695,883 
           
Information Technology — 2.9%          
Capgemini SE   9,625    957,352 
Total France        3,425,422 
           
India — 8.6%          
           
Financials — 8.6%          
HDFC Bank Ltd. ADR   19,210    1,989,964 
IndusInd Bank Ltd.   35,540    813,785 
Total India        2,803,749 
           
Canada — 7.4%          
           
Financials — 4.1%          
Toronto-Dominion Bank (The)   27,055    1,344,823 
           
Industrials — 3.3%          
Canadian Pacific Railway Ltd.   6,025    1,070,160 
Total Canada        2,414,983 
           
Japan — 6.9%          
           
Communication Services — 2.2%          
Nexon Co. Ltd.*   56,200    725,516 
           
Consumer Discretionary — 1.3%          
Suzuki Motor Corp.   8,000    403,292 
           
Industrials — 3.4%        
Recruit Holdings Co. Ltd.   45,800   $1,106,470 
Total Japan        2,235,278 
           
Switzerland — 5.3%          
           
Consumer Staples — 3.0%          
Coca-Cola HBC AG   31,120    973,984 
           
Health Care — 2.3%          
Sonova Holding AG   4,625    760,564 
Total Switzerland        1,734,548 
           
Singapore — 5.2%          
           
Financials — 5.2%          
DBS Group Holdings Ltd.   96,500    1,678,121 
           
Germany — 4.0%          
           
Information Technology — 4.0%          
SAP SE   12,995    1,289,751 
           
Israel — 3.7%          
           
Information Technology — 3.7%          
Nice Ltd. ADR*   11,205    1,212,493 
           
Brazil — 2.8%          
           
Consumer Discretionary — 2.1%          
Magazine Luiza SA   14,700    686,765 
           
Information Technology — 0.7%          
Pagseguro Digital Ltd. - Class A*   12,325    230,847 
Total Brazil        917,612 
           
Sweden — 2.8%          
           
Information Technology — 2.8%          
Hexagon AB   19,405    897,046 
           
Argentina — 2.2%          
           
Information Technology — 2.2%          
Globant SA*   12,585    708,787 
           
Indonesia — 1.8%          
           
Communication Services — 1.8%          
Telekomunikasi Indonesia Persero Tbk PT   2,285,900    597,611 
Total Common Stocks       $32,478,624 

 

 C: 
 23 

 

 

Touchstone International Growth Opportunities Fund (Unaudited) (Continued)

 

       Market 
   Shares   Value 
         
Short-Term Investment Funds — 1.4%          
Dreyfus Government Cash Management, Institutional Shares, 2.29%∞Ω   138,735   $138,735 
Invesco Government & Agency Portfolio, Institutional Class, 2.30%**∞Ω   331,609    331,609 
Total Short-Term Investment Funds       $470,344 
           
Total Investment Securities — 101.1%          
(Cost $35,275,757)       $32,948,968 
           
Liabilities in Excess of Other Assets — (1.1%)        (358,339)
           
Net Assets — 100.0%       $32,590,629 

 

*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 December 31, 2018 was $319,990.

 

Open-End Fund.

 

ΩRepresents the 7-day SEC yield as of December 31, 2018.

 

Portfolio Abbreviations:

 

ADR - American Depositary Receipt

 

Other Information:

 

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

 

Valuation inputs at Reporting Date:

Description  Level 1   Level 2   Level 3   Total 
Common Stocks                    
China  $8,883,919   $3,679,304   $   $12,563,223 
France       3,425,422        3,425,422 
India   1,989,964    813,785        2,803,749 
Canada   2,414,983            2,414,983 
Japan       2,235,278        2,235,278 
Switzerland       1,734,548        1,734,548 
Singapore       1,678,121        1,678,121 
Germany       1,289,751        1,289,751 
Israel   1,212,493            1,212,493 
Brazil   917,612            917,612 
Sweden       897,046        897,046 
Argentina   708,787            708,787 
Indonesia       597,611        597,611 
Short-Term Investment Funds   470,344            470,344 
Total  $16,598,102   $16,350,866   $   $32,948,968 

 

See accompanying Notes to Financial Statements.

 

 C: 
 24 

 

 

Portfolio of Investments

Touchstone International Small Cap FundDecember 31, 2018 (Unaudited)

 

       Market 
   Shares   Value 
         
Common Stocks — 100.5%          
           
Japan — 27.8%          
           
Communication Services — 1.2%          
Capcom Co. Ltd.   130,400   $2,585,509 
           
Consumer Discretionary — 4.1%          
Kyoritsu Maintenance Co. Ltd.   62,300    2,724,505 
Marui Group Co. Ltd.   171,400    3,321,718 
Sega Sammy Holdings, Inc.   177,300    2,471,695 
           
Consumer Staples — 4.7%          
Lion Corp.   157,100    3,246,867 
Morinaga & Co. Ltd.   63,000    2,703,198 
Nippon Suisan Kaisha Ltd.   682,500    3,806,640 
           
Financials — 1.8%          
Fukuoka Financial Group, Inc.   72,700    1,473,885 
Zenkoku Hosho Co. Ltd.   73,200    2,295,579 
           
Health Care — 3.8%          
Medipal Holdings Corp.   103,500    2,214,299 
Rohto Pharmaceutical Co. Ltd.   90,400    2,467,484 
Takara Bio, Inc.   138,200    3,230,840 
           
Industrials — 6.5%          
Japan Airport Terminal Co. Ltd.   61,300    2,119,110 
Kamigumi Co. Ltd.   138,000    2,823,309 
Kandenko Co. Ltd.   280,900    2,722,660 
Seino Holdings Co. Ltd.   155,200    2,031,938 
TechnoPro Holdings, Inc.   52,400    2,152,707 
Toda Corp.   283,500    1,766,774 
           
Information Technology — 3.1%          
Azbil Corp.   99,100    1,958,591 
Nihon Unisys Ltd.   140,200    3,124,848 
Taiyo Yuden Co. Ltd.   91,200    1,352,892 
           
Materials — 0.7%          
Sumitomo Bakelite Co. Ltd.   45,000    1,548,499 
           
Real Estate — 0.9%          
Katitas Co. Ltd.†   82,800    1,961,782 
           
Utilities — 1.0%          
Hokkaido Electric Power Co., Inc.   313,700    2,167,460 
Total Japan        58,272,789 
           
United Kingdom — 11.0%          
           
Consumer Discretionary — 1.2%          
SSP Group PLC   302,235    2,494,910 
           
Consumer Staples — 1.3%          
Britvic PLC   271,694    2,767,155 
           
Energy — 1.6%          
Petrofac Ltd.   267,245    1,622,217 
Premier Oil PLC*   1,983,198    1,673,661 
           
Financials — 0.7%          
Intermediate Capital Group PLC   122,648   1,462,972 
           
Health Care — 2.0%          
Abcam PLC   122,724    1,708,257 
Dechra Pharmaceuticals PLC   89,504    2,364,795 
           
Industrials — 2.2%          
HomeServe PLC   237,606    2,624,571 
Pagegroup PLC   359,883    2,067,326 
           
Information Technology — 0.8%          
Electrocomponents PLC   254,374    1,643,097 
           
Utilities — 1.2%          
Pennon Group PLC   292,015    2,581,401 
Total United Kingdom        23,010,362 
           
Australia — 8.1%          
           
Energy — 2.5%          
Beach Energy Ltd.   2,568,287    2,426,544 
WorleyParsons Ltd.   344,700    2,768,582 
           
Health Care — 1.1%          
Ansell Ltd.   150,243    2,333,979 
           
Industrials — 1.2%          
Cleanaway Waste Management Ltd.   2,065,294    2,422,067 
           
Materials — 1.2%          
St Barbara Ltd.   771,860    2,556,664 
           
Real Estate — 2.1%          
Charter Hall Group REIT   853,555    4,462,980 
Total Australia        16,970,816 
           
Canada — 6.3%          
           
Consumer Discretionary — 1.4%          
Great Canadian Gaming Corp.*   83,001    2,910,385 
           
Energy — 1.9%          
Enerplus Corp.   185,890    1,446,053 
Parkland Fuel Corp.   96,496    2,497,926 
           
Industrials — 1.9%          
Boyd Group Income Fund   28,124    2,326,843 
Finning International, Inc.   95,530    1,665,407 
           
Utilities — 1.1%          
Capital Power Corp.   117,690    2,292,248 
Total Canada        13,138,862 
           
Germany — 6.0%          
           
Communication Services — 1.0%          
Stroeer SE & Co. KGaA   43,389    2,102,988 

 

 C: 
 25 

 

 

Touchstone International Small Cap Fund (Unaudited) (Continued)

 

   Shares   Market
Value
 
         
Common Stocks — 100.5% (Continued)          
           
Germany — (Continued)          
           
Consumer Discretionary — 0.9%          
HUGO BOSS AG   30,007   $1,849,762 
           
Financials — 0.8%          
Deutsche Pfandbriefbank AG, 144a   166,962    1,669,477 
           
Industrials — 1.0%          
Rheinmetall AG   24,774    2,196,933 
           
Information Technology — 1.0%          
Dialog Semiconductor PLC*   79,859    2,069,442 
           
Real Estate — 1.3%          
TAG Immobilien AG   117,940    2,686,298 
Total Germany        12,574,900 
           
France — 5.6%          
           
Communication Services — 1.2%          
Lagardere SCA   96,905    2,445,435 
           
Health Care — 1.1%          
Korian SA   63,593    2,263,313 
           
Industrials — 2.0%          
Air France-KLM*   186,878    2,029,448 
Rexel SA   214,668    2,286,668 
           
Information Technology — 1.3%          
Alten SA   31,702    2,643,165 
Total France        11,668,029 
           
Switzerland — 5.4%          
           
Communication Services — 1.6%          
Sunrise Communications Group AG, 144a   38,962    3,430,342 
           
Consumer Discretionary — 1.4%          
Forbo Holding AG   2,046    2,879,587 
           
Health Care — 0.8%          
Galenica AG, 144a   37,353    1,645,384 
           
Industrials — 1.6%          
Sulzer AG   6,785    540,740 
Wizz Air Holdings PLC, 144a*   77,320    2,762,337 
Total Switzerland        11,258,390 
           
Netherlands — 3.6%          
           
Financials — 2.7%          
ASR Nederland NV   75,363    2,982,038 
Euronext NV, 144a   44,786    2,580,461 
           
Materials — 0.9%        
AMG Advanced Metallurgical Group NV   61,174   1,973,816 
Total Netherlands        7,536,315 
           
Italy — 3.1%          
           
Energy — 0.9%          
Saras SpA   970,490    1,880,290 
           
Health Care — 1.2%          
Amplifon SpA   158,501    2,559,146 
           
Utilities — 1.0%          
Italgas SpA   375,813    2,155,113 
Total Italy        6,594,549 
           
Denmark — 2.6%          
           
Financials — 1.4%          
Topdanmark A/S   63,364    2,957,138 
           
Information Technology — 1.2%          
SimCorp A/S   37,281    2,556,778 
Total Denmark        5,513,916 
           
Norway — 2.6%          
           
Consumer Staples — 1.2%          
Leroy Seafood Group ASA   337,894    2,571,537 
           
Financials — 1.4%          
Storebrand ASA   395,631    2,822,361 
Total Norway        5,393,898 
           
Sweden — 2.5%          
           
Consumer Discretionary — 0.7%          
Dometic Group AB, 144a   236,269    1,473,975 
           
Industrials — 1.1%          
Loomis AB   72,304    2,330,712 
           
Real Estate — 0.7%          
Hemfosa Fastigheter AB   187,590    1,480,319 
Total Sweden        5,285,006 
           
Luxembourg — 2.2%          
           
Materials — 0.9%          
Orion Engineered Carbons SA   77,324    1,954,751 
           
Real Estate — 1.3%          
Grand City Properties SA   119,997    2,608,139 
Total Luxembourg        4,562,890 
           
Ireland — 1.9%          
           
Consumer Staples — 1.1%          
Greencore Group PLC†   1,013,397    2,301,766 

 

 C: 
 26 

 

 

Touchstone International Small Cap Fund (Unaudited) (Continued)

 

       Market 
   Shares   Value 
         
Common Stocks — 100.5% (Continued)          
           
Ireland — (Continued)          
           
Health Care — 0.8%          
UDG Healthcare PLC   217,553   $1,656,279 
Total Ireland        3,958,045 
           
India — 1.7%          
           
Information Technology — 1.7%          
WNS Holdings Ltd. ADR*   86,391    3,564,493 
           
New Zealand — 1.6%          
           
Communication Services — 1.6%          
Spark New Zealand Ltd.   1,230,597    3,432,657 
           
Argentina — 1.3%          
           
Information Technology — 1.3%          
Globant SA*   50,093    2,821,238 
           
Jordan — 1.3%          
           
Health Care — 1.3%          
Hikma Pharmaceuticals PLC   125,999    2,755,351 
           
Spain — 1.3%          
           
Health Care — 1.3%          
Almirall SA   174,714    2,674,748 
           
Singapore — 1.2%          
           
Industrials — 1.2%          
ComfortDelGro Corp. Ltd.   1,615,600    2,551,913 
           
Hong Kong — 1.2%          
           
Consumer Discretionary — 1.2%          
Melco International Development Ltd.   1,225,000    2,484,044 
Studio City International Holdings Ltd. ADR*   306    5,121 
Total Hong Kong        2,489,165 
           
South Korea — 1.1%          
           
Consumer Staples — 1.1%          
Orion Corp./Republic of Korea   22,340    2,395,901 
           
Finland — 1.1%          
           
Industrials — 1.1%          
Valmet Oyj   110,729    2,280,686 
Total Common Stocks       $210,704,919 
           
Short-Term Investment Funds — 3.7%        
Dreyfus Government Cash Management, Institutional Shares, 2.29%∞Ω   1,082,681   $1,082,681 
Invesco Government & Agency Portfolio, Institutional Class, 2.30%**∞Ω   6,677,154    6,677,154 
Total Short-Term Investment Funds       $7,759,835 
           
Total Investment Securities —104.2%          
(Cost $230,227,643)       $218,464,754 
           
Liabilities in Excess of Other Assets — (4.2%)        (8,778,185)
           
Net Assets — 100.0%       $209,686,569 

 

*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 December 31, 2018 was $3,742,461.

 

Open-End Fund.

 

ΩRepresents the 7-day SEC yield as of December 31, 2018.

 

Portfolio Abbreviations:

 

ADR - American Depositary Receipt

 

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 December 31, 2018, these securities were valued at $13,561,976 or 6.5% of net assets. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees.

 

 C: 
 27 

 

 

Touchstone International 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                    
Japan  $   $58,272,789   $   $58,272,789 
United Kingdom       23,010,362        23,010,362 
Australia       16,970,816        16,970,816 
Canada   13,138,862            13,138,862 
Germany       12,574,900        12,574,900 
France       11,668,029        11,668,029 
Switzerland       11,258,390        11,258,390 
Netherlands       7,536,315        7,536,315 
Italy   1,880,290    4,714,259        6,594,549 
Denmark       5,513,916        5,513,916 
Norway       5,393,898        5,393,898 
Sweden       5,285,006        5,285,006 
Luxembourg   1,954,751    2,608,139        4,562,890 
Ireland   2,301,766    1,656,279        3,958,045 
India   3,564,493            3,564,493 
New Zealand       3,432,657        3,432,657 
Argentina   2,821,238            2,821,238 
Jordan       2,755,351        2,755,351 
Spain       2,674,748        2,674,748 
Singapore       2,551,913        2,551,913 
Hong Kong   5,121    2,484,044        2,489,165 
South Korea       2,395,901        2,395,901 
Finland       2,280,686        2,280,686 
Short-Term Investment Funds   7,759,835            7,759,835 
Total  $33,426,356   $185,038,398   $   $218,464,754 

 

See accompanying Notes to Financial Statements.

 

 C: 
 28 

 

 

Portfolio of Investments

Touchstone Large Cap Focused Fund December 31, 2018 (Unaudited)

 

       Market 
   Shares   Value 
         
Common Stocks — 94.2%          
           
Information Technology — 20.9%          
Accenture PLC (Ireland) - Class A   223,043   $31,451,293 
Apple, Inc.   340,315    53,681,288 
Cisco Systems, Inc.   584,365    25,320,535 
Microsoft Corp.   905,572    91,978,948 
Oracle Corp.   413,559    18,672,189 
salesforce.com, Inc.*   166,328    22,781,946 
Texas Instruments, Inc.   164,701    15,564,245 
Visa, Inc. - Class A   475,920    62,792,885 
         322,243,329 
           
Financials — 14.6%          
American Express Co.   156,332    14,901,566 
Berkshire Hathaway, Inc. - Class B*   251,854    51,423,550 
CME Group, Inc.   182,926    34,412,039 
Goldman Sachs Group, Inc. (The)   38,247    6,389,161 
JPMorgan Chase & Co.   325,000    31,726,500 
Morgan Stanley   527,914    20,931,790 
PNC Financial Services Group, Inc. (The)   262,000    30,630,420 
S&P Global, Inc.   123,089    20,917,745 
Signature Bank/NewYork NY   127,757    13,134,697 
         224,467,468 
           
Health Care — 14.0%          
AmerisourceBergen Corp.   312,267    23,232,665 
Amgen, Inc.   91,644    17,840,337 
Becton Dickinson and Co.   82,860    18,670,015 
Biogen, Inc.*   54,698    16,459,722 
Bristol-Myers Squibb Co.   244,323    12,699,910 
Johnson & Johnson   100,337    12,948,490 
Merck & Co., Inc.   536,551    40,997,862 
Novartis AG (Switzerland) ADR   191,666    16,446,859 
Stryker Corp.   48,156    7,548,453 
UnitedHealth Group, Inc.   138,540    34,513,085 
Zoetis, Inc.   155,835    13,330,126 
         214,687,524 
           
Consumer Discretionary — 12.5%          
Amazon.com, Inc.*   26,751    40,179,199 
Booking Holdings, Inc.*   7,878    13,569,225 
Carnival Corp.   231,991    11,437,156 
Garrett Motion, Inc. (Switzerland)*   23,989    296,019 
Home Depot, Inc. (The)   73,353    12,603,512 
JD.com, Inc. (China) ADR*   466,788    9,769,873 
Marriott International, Inc. - Class A   50,834    5,518,539 
McDonald's Corp.   186,095    33,044,889 
Starbucks Corp.   284,475    18,320,190 
TJX Cos, Inc. (The)   776,438    34,737,836 
Yum China Holdings, Inc. (China)   362,791    12,164,382 
         191,640,820 
           
Communication Services — 10.8%          
Alphabet, Inc. - Class C*   57,000    59,029,770 
AT&T, Inc.   140,021    3,996,207 
Baidu, Inc. (China) ADR*   106,623    16,910,408 
Comcast Corp. - Class A   947,256    32,254,067 
Facebook, Inc. - Class A*   270,892    35,511,232 
Verizon Communications, Inc.   327,594    18,417,335 
         166,119,019 
           
Industrials — 7.7%          
Boeing Co. (The)   82,793    26,700,743 
Canadian National Railway Co. (Canada)   217,247    16,100,175 
Deere & Co.   26,692    3,981,646 
FedEx Corp.   19,742    3,184,977 
Honeywell International, Inc.   226,295    29,898,095 
Resideo Technologies, Inc.*   39,981    821,610 
United Technologies Corp.   208,281    22,177,761 
Verisk Analytics, Inc.*   148,725    16,216,974 
         119,081,981 
           
Consumer Staples — 6.4%          
Estee Lauder Cos., Inc. (The) - Class A   120,785    15,714,129 
Kraft Heinz Co. (The)   183,288    7,888,716 
Monster Beverage Corp.*   170,309    8,382,609 
PepsiCo, Inc.   116,115    12,828,385 
Philip Morris International, Inc.   275,000    18,359,000 
Procter & Gamble Co. (The)   173,277    15,927,622 
Unilever NV (United Kingdom)   370,454    19,930,425 
         99,030,886 
           
Energy — 4.7%          
Chevron Corp.   172,149    18,728,090 
Exxon Mobil Corp.   455,000    31,026,450 
Marathon Petroleum Corp.   215,607    12,722,969 
Schlumberger Ltd.   248,127    8,952,422 
         71,429,931 
           
Real Estate — 1.7%          
Jones Lang LaSalle, Inc.   133,496    16,900,594 
Simon Property Group, Inc. REIT   58,609    9,845,726 
         26,746,320 
           
Materials — 0.9%          
DowDuPont, Inc.   270,314    14,456,393 
Total Common Stocks       $1,449,903,671 
           
Exchange-Traded Funds — 5.0%          
SPDR S&P 500 ETF Trust   230,000    57,481,600 
Utilities Select Sector SPDR Fund†   385,000    20,374,200 
Total Exchange-Traded Funds       $77,855,800 

 

 C: 
 29 

 

 

Touchstone Large Cap Focused Fund (Unaudited) (Continued)

 

   Shares   Market
Value
 
         
Short-Term Investment Funds — 2.0%          
Dreyfus Government Cash Management, Institutional Shares, 2.29%∞Ω   13,357,729   $13,357,729 
Invesco Government & Agency Portfolio, Institutional Class, 2.30%**∞Ω   17,172,000    17,172,000 
Total Short-Term Investment Funds       $30,529,729 
           
Total Investment Securities —101.2%          
(Cost $829,395,395)       $1,558,289,200 
           
Liabilities in Excess of Other Assets — (1.2%)        (19,222,895)
           
Net Assets — 100.0%       $1,539,066,305 

 

*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 December 31, 2018 was $16,828,560.

 

Open-End Fund.

 

ΩRepresents the 7-day SEC yield as of December 31, 2018.

 

Portfolio Abbreviations:

 

ADR - American Depositary Receipt

 

ETF - Exchange-Traded Fund

 

PLC - Public Limited Company

 

REIT - Real Estate Investment Trust

 

SPDR - Standard & Poor's 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  $1,449,903,671   $   $   $1,449,903,671 
Exchange-Traded Funds   77,855,800            77,855,800 
Short-Term Investment Funds   30,529,729            30,529,729 
Total  $1,558,289,200   $   $   $1,558,289,200 

 

See accompanying Notes to Financial Statements.

 

 C: 
 30 

 

 

Portfolio of Investments

Touchstone Large Cap FundDecember 31, 2018 (Unaudited)

 

       Market 
   Shares   Value 
         
Common Stocks — 98.6%          
           
Financials — 24.7%          
Alleghany Corp.   15,259   $9,511,240 
Bank of America Corp.   172,755    4,256,683 
Berkshire Hathaway, Inc. - Class B*   106,432    21,731,286 
BlackRock, Inc.   24,003    9,428,858 
Progressive Corp. (The)   251,179    15,153,629 
Wells Fargo & Co.   175,246    8,075,336 
         68,157,032 
           
Consumer Discretionary — 20.0%          
CarMax, Inc.*   168,187    10,550,371 
Carnival Corp.   203,676    10,041,227 
Dollar Tree, Inc.*   139,113    12,564,686 
Home Depot, Inc. (The)   50,492    8,675,535 
Lowe's Cos., Inc.   43,700    4,036,132 
O'Reilly Automotive, Inc.*   27,189    9,361,988 
         55,229,939 
           
Information Technology — 13.4%          
Apple, Inc.   88,471    13,955,416 
Cisco Systems, Inc.   200,199    8,674,623 
Visa, Inc. - Class A   109,118    14,397,029 
         37,027,068 
           
Industrials — 13.0%          
Deere & Co.   27,189    4,055,783 
FedEx Corp.   35,862    5,785,616 
General Dynamics Corp.   43,987    6,915,196 
Norfolk Southern Corp.   77,942    11,655,447 
Southwest Airlines Co.   158,820    7,381,954 
         35,793,996 
           
Materials — 8.4%          
Albemarle Corp.   89,759    6,917,726 
Martin Marietta Materials, Inc.   44,363    7,624,669 
NewMarket Corp.   20,728    8,541,802 
         23,084,197 
           
Consumer Staples — 8.0%          
Altria Group, Inc.   146,213    7,221,460 
Coca-Cola Co. (The)   115,803    5,483,272 
Nestle SA (Switzerland) ADR   114,316    9,255,023 
         21,959,755 
           
Communication Services — 7.0%          
Alphabet, Inc. - Class C*   13,820    14,312,130 
Verizon Communications, Inc.   88,863    4,995,878 
         19,308,008 
           
Energy — 2.2%          
Chevron Corp.   54,170    5,893,154 
           
Health Care — 1.9%        
Bristol-Myers Squibb Co.   102,617    5,334,032 
Total Common Stocks       $271,787,181 
           
Short-Term Investment Fund — 2.4%          
Dreyfus Government Cash Management, Institutional Shares, 2.29%∞Ω   6,698,321   $6,698,321 
           
Total Investment Securities —101.0%          
(Cost $232,846,909)       $278,485,502 
           
Liabilities in Excess of Other Assets — (1.0%)        (2,742,337)
           
Net Assets — 100.0%       $275,743,165 

 

*Non-income producing security.

 

Open-End Fund.

 

ΩRepresents the 7-day SEC yield as of December 31, 2018.

 

Portfolio Abbreviations:

 

ADR - American Depositary Receipt

 

Other Information:

 

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

  

   Valuation inputs at Reporting Date: 
Description  Level 1   Level 2   Level 3   Total 
Common  Stocks  $271,787,181   $   $   $271,787,181 
Short-Term Investment  Fund   6,698,321            6,698,321 
Total  $278,485,502   $   $   $278,485,502 

 

See accompanying Notes to Financial Statements.

 

 C: 
 31 

 

 

Portfolio of Investments

Touchstone Large Company Growth FundDecember 31, 2018 (Unaudited)

 

       Market 
   Shares   Value 
         
Common Stocks — 99.9%          
           
Information Technology — 33.1%          
Adobe, Inc.*   57,350   $12,974,864 
Automatic Data Processing, Inc.   42,725    5,602,102 
Intuit, Inc.   32,750    6,446,838 
Microsoft Corp.   150,825    15,319,295 
PayPal Holdings, Inc.*   92,575    7,784,632 
Visa, Inc. - Class A   102,200    13,484,268 
         61,611,999 
           
Communication Services — 18.7%          
Alphabet, Inc. - Class A*   12,075    12,617,892 
Facebook, Inc. - Class A*   83,275    10,916,520 
Tencent Holdings Ltd. (China) ADR   283,175    11,176,917 
         34,711,329 
           
Health Care — 18.1%          
Abbott Laboratories   114,875    8,308,909 
Becton Dickinson and Co.   26,300    5,925,916 
Regeneron Pharmaceuticals, Inc.*   15,050    5,621,175 
Thermo Fisher Scientific, Inc.   26,075    5,835,324 
Zoetis, Inc.   94,025    8,042,898 
         33,734,222 
           
Consumer Discretionary — 16.5%          
Alibaba Group Holding Ltd. (China) ADR*   84,850    11,630,389 
Amazon.com, Inc.*   3,000    4,505,910 
Booking Holdings, Inc.*   3,850    6,631,317 
Burlington Stores, Inc.*   23,850    3,879,680 
Royal Caribbean Cruises Ltd.   42,425    4,148,741 
         30,796,037 
           
Financials — 7.3%          
Charles Schwab Corp. (The)   88,300    3,667,099 
MSCI, Inc.   48,300    7,120,869 
Toronto-Dominion Bank (The) (Canada)   55,400    2,754,488 
         13,542,456 
           
Consumer Staples — 3.7%          
Monster Beverage Corp.*   139,300    6,856,346 
           
Industrials — 2.5%          
Canadian Pacific Railway Ltd. (Canada)   26,300    4,671,406 
Total Common Stocks       $185,923,795 
           
Short-Term Investment Fund — 0.2%        
Dreyfus Government Cash Management, Institutional Shares, 2.29%∞Ω   426,660   $426,660 
           
Total Investment Securities —100.1%          
(Cost $122,441,990)       $186,350,455 
           
Liabilities in Excess of Other Assets — (0.1%)        (172,075)
           
Net Assets — 100.0%       $186,178,380 

 

*Non-income producing security.

 

Open-End Fund.

 

ΩRepresents the 7-day SEC yield as of December 31, 2018.

 

Portfolio Abbreviations:

 

ADR - American Depositary Receipt

 

Other Information:

 

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

 

   Valuation inputs at Reporting Date: 
Description  Level 1   Level 2   Level 3   Total 
Common Stocks  $185,923,795   $   $   $185,923,795 
Short-term Investment Fund   426,660          426,660 
Total  $186,350,455   $   $   $186,350,455 

 

See accompanying Notes to Financial Statements.

 

 C: 
 32 

 

 

Portfolio of Investments

Touchstone Ohio Tax-Free Bond FundDecember 31, 2018 (Unaudited)

 

Principal      Interest   Maturity  Market 
Amount      Rate   Date  Value 
                
     Fixed Rate Revenue Bonds — 65.8%             
$500,000   New Albany OH Cmnty Auth (Ref) Ser C   5.000%  10/01/24  $548,905 
 375,000   Univ of Akron OH (Ref) Ser A   5.000   01/01/28   418,762 
 650,000   Greene Co OH Hosp Fac Rev (Kettering Health Network)   5.125   04/01/29   655,206 
 650,000   Montgomery Co OH Rev (Unrefunded Catholic Hlth Initiatives)   5.250   05/01/29   717,802 
 750,000   Cleveland OH Income Tax Rev (Ref Sub Lien) Ser B 2   5.000   10/01/29   860,662 
 500,000   Hamilton Co OH Hosp Facs Rev (Uc Hlth)   5.000   02/01/30   552,715 
 1,000,000   Butler Co OH Hosp Facs (Ref Cincinnati Children's Hosp)   5.000   05/15/30   1,212,880 
 1,000,000   Hamilton Co OH Student Rev (Ref Stratford Heights Proj)   5.000   06/01/30   1,039,530 
 200,000   Dayton OH Wtr Sys Rev   4.000   12/01/30   215,302 
 1,000,000   Green OH Cmnty Learning Ctr (Ref)   4.000   12/01/30   1,055,920 
 500,000   Butler Co OH Hosp Facs (Kettering Health Network Oblig)   5.250   04/01/31   529,250 
 1,000,000   Wright OH St Univ (Gen Recpts) Ser A   5.000   05/01/31   1,030,270 
 750,000   Middleburg Heights OH Hosp Rev (Facs Southwest Gen)   5.125   08/01/31   805,065 
 1,000,000   Kent OH St Univ Rev (Gen Recpts) Ser A   4.500   05/01/32   1,056,890 
 1,000,000   Hamilton Co OH Hlth Care Facs (Christ Hosp Proj)   5.250   06/01/32   1,085,260 
 1,000,000   Cuyahoga Co OH COP (Convention Hotel Proj)   5.000   12/01/32   1,098,140 
 1,060,000   OH St EDR (Enterprise Bd Fd) Ser 7   4.750   12/01/32   1,109,078 
 500,000   OH St Univ Ser A   4.000   12/01/32   527,165 
 150,000   OH Univ Gen Recpts Athens (Ref) Ser A   5.000   12/01/32   173,601 
 265,000   OH St Hgr Edl Fac Commis (Ref Xavier Univ) Ser C   5.000   05/01/33   292,276 
 1,080,000   Hamilton Co OH Hosp Facs Rev (Ref Cincinnati Childrens Hosp)   5.000   05/15/33   1,201,576 
 970,000   Franklin Co OH Sales Tax Rev (Various Purpose)   4.000   06/01/33   1,048,997 
 1,000,000   Hamilton Co OH EDR (Ref King Highland Cmnty Urban)   5.000   06/01/33   1,128,270 
 250,000   Warren Co OH Hlth Care Facs Rev (Ref & Impt Otterbein Homes)   5.000   07/01/33   269,762 
 2,000,000   Cincinnati OH EDR (U Square The Loop Proj)   5.000   11/01/33   2,143,540 
 525,000   OH St Univ Ser A   4.000   12/01/33   552,069 
 265,000   Cleveland OH Wtr Rev (Ref) Ser Y   4.000   01/01/34   275,958 
 625,000   Hamilton Co OH Hosp Facs Rev (Ref Cincinnati Childrens Hosp)   5.000   05/15/34   693,056 
 250,000   Warren Co OH Hlth Care Facs Rev (Ref & Impt Otterbein Homes)   5.000   07/01/34   268,985 
 500,000   Cuyahoga Co OH Sales Tax Rev (Ref)   5.000   12/01/34   563,885 
 570,000   Miami Univ OH (Ref)   5.000   09/01/35   650,837 
 1,085,000   Cincinnati OH Urban Redev Rev (Mercer Commons Phase 2 Proj) Ser B   5.000   11/01/35   1,226,614 
 500,000   Polaris Career Ctr OH COP   5.000   11/01/35   560,320 
 475,000   Cincinnati OH Wtr Sys Rev Ser A   5.000   12/01/35   548,953 
 200,000   Clermont Co OH Port Auth Lease (W Clermont Local Sch Dist Proj)   5.000   12/01/35   225,460 
 290,000   OH St Hgr Edl Fac Commis (University Of Dayton 2018 Pro) Ser A   4.000   12/01/35   303,430 
 500,000   OH St Hgr Edl Fac Commis (Ref Higher Eductnl Fac John Ca)   5.000   04/01/36   547,590 
 350,000   Warren Co OH Hlth Care Facs Rev (Ref Otterbein Homes) Ser A   5.000   07/01/36   380,499 
 550,000   Franklin Co OH Hosp Facs Rev (Ref Nationwide Childrens Hosp)   4.000   11/01/36   568,596 
 1,000,000   OH St Parks & Recreation Cap (Lease Approp Impt Fund Projs S)   5.000   12/01/36   1,162,890 
 500,000   Cleveland OH Arpt Sys Rev (Ser B)   5.000   01/01/37   568,800 
 1,000,000   Univ Of Cincinnati OH Recpts (Ref) Ser A   5.000   06/01/37   1,153,150 
     Total Fixed Rate Revenue Bonds          $31,027,916 
                   
     General Obligation Bonds — 18.2%             
 840,000   Licking Heights OH LSD UTGO   6.400   12/01/28   1,023,809 
 1,000,000   Toledo OH CSD (Ref Sch Facs Impt) UTGO   5.000   12/01/32   1,114,350 
 300,000   Upper Arlington OH (Ref Various Purpose) LTGO   4.000   12/01/32   318,978 
 345,000   Bowling Green OH CSD (Ref) UTGO   5.000   12/01/34   390,116 
 700,000   Miami Vly Career Tech Center O UTGO   4.000   12/01/34   738,766 
 500,000   Three Rivers OH LSD (Ref) UTGO   5.000   12/01/34   563,010 
 500,000   Dublin OH (Ser A) LTGO   5.000   12/01/35   591,765 

 

 C: 
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Touchstone Ohio Tax-Free Bond Fund (Unaudited) (Continued)

 

Principal      Interest   Maturity  Market 
Amount      Rate   Date  Value 
                
     General Obligation Bonds — 18.2% (Continued)             
$435,000   Miami Trace OH LSD UTGO   5.000%  12/01/35  $492,407 
 200,000   Milford OH Exempt Vlg Sch Dist (Ref) UTGO   5.000   12/01/35   226,030 
 500,000   Lakewood OH (Ref) LTGO   5.000   12/01/36   568,815 
 1,000,000   Hamilton Co OH (Ref) LTGO Ser A   5.000   12/01/37   1,157,040 
 1,250,000   Brecksville-Broadview Heights OH CSD (Sch Facs Impt) UTGO   5.000   12/01/38   1,375,338 
     Total General Obligation Bonds          $8,560,424 
                   
     Pre-refunded/Escrowed to Maturity(A) — 11.8%             
 1,000,000   Columbus OH CSD (Sch Facs Constr & Impt) UTGO Pre-refunded @ $100   4.500   06/01/19   1,011,490 
 1,000,000   Franklin Co OH Hosp Rev (Nationwide Childrens Hosp Impt) Pre-refunded @ $100   4.750   11/01/19   1,023,270 
 895,000   Milton Union OH Exempt Vlg Sch Dist (Sch Impt) Pre-refunded @ $100   4.875   12/01/19   919,254 
 1,500,000   Cincinnati OH CSD (Ref Sch Impt) LTGO Pre-refunded @$100 Pre-refunded @ $100   5.000   06/01/20   1,563,555 
 345,000   Univ of Toledo OH Ser B Pre-refunded @ $100   5.000   06/01/21   370,675 
 250,000   Lakewood OH CSD (Sch Facs Impt) UTGO Ser A Pre-refunded @ $100   5.000   11/01/22   278,378 
 350,000   Montgomery Co OH Rev (Prerefunded Catholic Hlth Initiatives) Pre-refunded @ $100   5.250   11/12/23   395,986 
     Total Pre-refunded/Escrowed to Maturity          $5,562,608 
                   
     Variable Rate Demand Notes(B)(C) — 3.8%             
                   
 400,000   Allen Co OH Hosp Facs Rev (Adj Catholic Healthcare) Ser C (LOC: Union Bank NA)(D)   1.350   06/01/34   400,000 
 900,000   OH St Hgr Edl Fac Commis (Variable Cleveland Clinic Hosp) Ser B 3 (LIQ: U.S. Bank N.A.)(D)   1.380   01/01/39   900,000 
 200,000   Montgomery Co OH Hosp Rev (Ref Premier Health Miami V) (LOC: Barclays Bank PLC)(D)   1.300   11/15/39   200,000 
 300,000   Montgomery Co OH Hosp Rev (Ref Premier Health Miami V) (LOC: Barclays Bank PLC)(D)   1.300   11/15/45   300,000 
     Total Variable Rate Demand Notes          $1,800,000 
                   
     Total Investment Securities —99.6%             
     (Cost $45,434,923)          $46,950,948 
                   
     Other Assets in Excess of Liabilities — 0.4%           175,461 
                   
     Net Assets — 100.0%          $47,126,409 

 

(A)Bonds denoted as pre-refunded are anticipated to be redeemed prior to their scheduled maturity. The dates indicated are the stipulated pre-refunded dates.

 

(B)Floating and variable rate demand notes (“put bonds”) earn interest at a coupon rate which fluctuates at specified intervals, usually daily, monthly or semi-annually. The interest rates shown are the coupon rates in effect at December 31, 2018. Put bonds may be redeemed at the discretion of the holder on specified dates prior to maturity. Mandatory put bonds are automatically redeemed at a specified put date unless action is taken by the holder to prevent redemption.

 

(C)Demand Feature - Maturities shown are the final maturities, not the date on which principal could be recovered through the demand feature.

 

 C: 
 34 

 

 

Touchstone Ohio Tax-Free Bond Fund (Unaudited) (Continued)

 

(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.

 

As of December 31, 2018, the Touchstone Ohio Tax-Free Bond Fund was invested exclusively in debt obligations issued by the State of Ohio and its political subdivisions, agencies, authorities and instrumentalities and by other issuers, the interest from which is exempt from Ohio personal income tax. The Touchstone Ohio Tax-Free Bond Fund is a non-diversified Fund under the Investment Company Act of 1940. Thus, the Fund may invest in fewer issuers than those of a diversified fund. As of December 31, 2018, there were no investments of 10% or greater in any one issuer held by the Fund.

 

Portfolio Abbreviations:

 

COP – Certificates of Participation

 

CSD – City School District

 

EDR – Economic Development Revenue

 

LIQ - Liquidity Agreement

 

LOC – Letter of Credit

 

LSD – Local School District

 

LTGO – Limited Tax General Obligation

 

UTGO – Unlimited Tax General Obligation

 

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 
Municipal Bonds  $   $46,950,948   $   $46,950,948 

 

See accompanying Notes to Financial Statements.

 

 C: 
 35 

 

 

Portfolio of Investments

Touchstone Small Company Fund December 31, 2018 (Unaudited)

 

       Market 
   Shares   Value 
         
Common Stocks — 98.5%          
           
Information Technology — 24.3%          
8x8, Inc.*   879,761   $15,870,888 
Aspen Technology, Inc.*   194,900    16,016,882 
Avaya Holdings Corp.*   1,455,007    21,184,902 
Bottomline Technologies de, Inc.*   285,149    13,687,152 
Carbonite, Inc.*   638,895    16,138,488 
Cision Ltd.*   1,238,725    14,493,083 
CommVault Systems, Inc.*   268,104    15,842,265 
j2 Global, Inc.   228,419    15,847,710 
MAXIMUS, Inc.   243,601    15,855,989 
NetScout Systems, Inc.*   641,457    15,157,629 
Nice Ltd. ADR (Israel)*   143,620    15,541,120 
Nuance Communications, Inc.*   1,207,118    15,970,171 
ON Semiconductor Corp.*   611,380    10,093,884 
Open Text Corp. (Canada)   333,320    10,866,232 
Plantronics, Inc.   455,025    15,061,328 
Verint Systems, Inc.*   646,477    27,352,442 
         254,980,165 
           
Industrials — 23.2%          
Clean Harbors, Inc.*   323,794    15,979,234 
Crane Co.   311,452    22,480,605 
EnerSys, Inc.   314,234    24,387,701 
Genesee & Wyoming, Inc. - Class A*   208,519    15,434,576 
Hillenbrand, Inc.   416,512    15,798,300 
ITT, Inc.   450,544    21,747,759 
Knight-Swift Transportation Holdings, Inc.   577,776    14,484,844 
Mobile Mini, Inc.   481,142    15,276,259 
Quanta Services, Inc.   869,945    26,185,345 
Regal Beloit Corp.   384,435    26,929,672 
SkyWest, Inc.   475,801    21,158,870 
Trex Co., Inc.*   126    7,479 
Woodward, Inc.   310,418    23,060,953 
         242,931,597 
           
Health Care — 20.0%          
Allscripts Healthcare Solutions, Inc.*   2,845,154    27,427,285 
AngioDynamics, Inc.*   760,720    15,313,294 
Bio-Rad Laboratories, Inc. - Class A*   51,964    12,067,080 
Bio-Techne Corp.   85,276    12,341,143 
Encompass Health Corp.   208,700    12,876,790 
Globus Medical, Inc. - Class A*   365,751    15,829,703 
Haemonetics Corp.*   161,248    16,132,862 
MEDNAX, Inc.*   482,945    15,937,185 
NuVasive, Inc.*   442,554    21,932,976 
Omnicell, Inc.*   238,742    14,620,560 
Orthofix Medical, Inc.*   299,485    15,719,968 
Tactile Systems Technology, Inc.*   312,802    14,248,131 
Tivity Health, Inc.*   607,781    15,079,047 
         209,526,024 
           
Consumer Discretionary — 14.1%          
Aaron's, Inc.   381,026    16,022,143 
Adtalem Global Education, Inc.*   331,416    15,682,605 
Bloomin' Brands, Inc.   1,294,603    23,160,448 
Brunswick Corp.   75,700    3,516,265 
Dave & Buster's Entertainment, Inc.   350,179    15,603,976 
Dick's Sporting Goods, Inc.   514,228    16,043,914 
G-III Apparel Group Ltd.*   114,000    3,179,460 
Movado Group, Inc.   104,000    3,288,480 
Oxford Industries, Inc.   49,500    3,516,480 
Steven Madden Ltd.   113,900    3,446,614 
Texas Roadhouse, Inc.   261,659    15,621,042 
TopBuild Corp.*   570,226    25,660,170 
Williams-Sonoma, Inc.   66,200    3,339,790 
         148,081,387 
           
Financials — 10.3%          
Chemical Financial Corp.   581,786    21,299,185 
Glacier Bancorp, Inc.   286,814    11,363,571 
Heartland Financial USA, Inc.   356,507    15,668,483 
Webster Financial Corp.   445,614    21,964,314 
Western Alliance Bancorp*   551,396    21,774,628 
WSFS Financial Corp.   422,506    16,017,202 
         108,087,383 
           
Communication Services — 2.9%          
Care.com, Inc.*   380,000    7,337,800 
Cogent Communications Holdings, Inc.   349,951    15,821,285 
QuinStreet, Inc.*   469,000    7,611,870 
         30,770,955 
           
Consumer Staples — 2.2%          
Sprouts Farmers Market, Inc.*   962,428    22,626,682 
           
Real Estate — 1.5%          
Corporate Office Properties Trust REIT   721,657    15,176,447 
Total Common Stocks       $1,032,180,640 
           
Short-Term Investment Fund — 2.3%          
Dreyfus Government Cash Management, Institutional Shares, 2.29%∞Ω   24,375,156   $24,375,156 
           
Total Investment Securities —100.8%          
(Cost $989,681,962)       $1,056,555,796 
           
Liabilities in Excess of Other Assets — (0.8%)        (7,880,215)
           
Net Assets — 100.0%       $1,048,675,581 

 

*Non-income producing security.

 

Open-End Fund.

 

ΩRepresents the 7-day SEC yield as of December 31, 2018.

 

 C: 
 36 

 

 

Touchstone Small Company Fund (Unaudited) (Continued)

 

Portfolio Abbreviations:

 

ADR - American Depositary Receipt

 

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  $1,032,180,640   $   $   $1,032,180,640 
Short-Term Investment  Fund   24,375,156            24,375,156 
Total  $1,056,555,796   $   $   $1,056,555,796 

 

See accompanying Notes to Financial Statements.

 

 C: 
 37 

 

 

Portfolio of Investments

Touchstone Value FundDecember 31, 2018 (Unaudited)

 

       Market 
   Shares   Value 
         
Common Stocks — 97.6%          
           
Health Care — 19.6%          
Anthem, Inc.   26,520   $6,964,948 
Cardinal Health, Inc.   56,312    2,511,515 
Cigna Corp.   15,468    2,937,742 
CVS Health Corp.   140,017    9,173,914 
Johnson & Johnson   35,627    4,597,664 
Medtronic PLC (Ireland)   114,288    10,395,637 
Merck & Co., Inc.   48,511    3,706,726 
Pfizer, Inc.   237,197    10,353,649 
Sanofi (France) ADR   160,195    6,954,065 
         57,595,860 
           
Financials — 17.2%          
American Express Co.   73,823    7,036,808 
American International Group, Inc.   186,213    7,338,654 
Bank of New York Mellon Corp. (The)   123,646    5,820,017 
JPMorgan Chase & Co.   86,013    8,396,589 
New York Community Bancorp, Inc.   322,141    3,031,347 
State Street Corp.   52,381    3,303,670 
US Bancorp   133,223    6,088,291 
Wells Fargo & Co.   208,584    9,611,551 
         50,626,927 
           
Energy — 14.2%          
BP PLC (United Kingdom) ADR   199,501    7,565,078 
Chevron Corp.   66,981    7,286,863 
ConocoPhillips   151,496    9,445,776 
Occidental Petroleum Corp.   68,430    4,200,233 
Phillips 66   109,142    9,402,583 
Schlumberger Ltd.   103,650    3,739,692 
         41,640,225 
           
Information Technology — 12.3%          
Broadcom, Inc.   12,620    3,209,014 
Microsoft Corp.   86,242    8,759,600 
Oracle Corp.   202,416    9,139,082 
QUALCOMM, Inc.   148,934    8,475,834 
Texas Instruments, Inc.   69,168    6,536,376 
         36,119,906 
           
Consumer Discretionary — 9.1%          
Advance Auto Parts, Inc.   26,056    4,102,778 
Dollar General Corp.   109,373    11,821,034 
Lowe's Cos., Inc.   115,251    10,644,582 
         26,568,394 
           
Industrials — 7.5%          
General Dynamics Corp.   19,876    3,124,706 
General Electric Co.   566,692    4,289,859 
Johnson Controls International PLC   256,616    7,608,664 
United Technologies Corp.   67,056    7,140,123 
         22,163,352 
           
Materials — 6.5%        
Air Products & Chemicals, Inc.   66,706    10,676,295 
DowDuPont, Inc.   155,331    8,307,102 
         18,983,397 
           
Utilities — 3.9%          
Dominion Energy, Inc.   92,636    6,619,769 
Exelon Corp.   109,302    4,929,520 
         11,549,289 
           
Communication Services — 3.7%          
Comcast Corp. - Class A   315,428    10,740,323 
           
Consumer Staples — 3.6%          
Altria Group, Inc.   93,542    4,620,039 
Philip Morris International, Inc.   87,247    5,824,610 
         10,444,649 
Total Common Stocks       $286,432,322 
           
Short-Term Investment Fund — 2.3%          
Dreyfus Government Cash Management, Institutional Shares, 2.29%∞Ω   6,623,448   $6,623,448 
           
Total Investment Securities —99.9%          
(Cost $263,810,851)       $293,055,770 
           
Other Assets in Excess of Liabilities — 0.1%        404,625 
           
Net Assets — 100.0%       $293,460,395 

 

Open-End Fund.

 

ΩRepresents the 7-day SEC yield as of December 31, 2018.

 

Portfolio Abbreviations:

 

ADR - American Depositary Receipt

 

PLC - Public Limited Company

 

 C: 
 38 

 

 

Touchstone Value Fund (Unaudited) (Continued)

 

Other Information:

 

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

  

   Valuation inputs at Reporting Date: 
Description  Level 1   Level 2   Level 3   Total 
Common Stocks  $286,432,322   $   $   $286,432,322 
Short-Term  Investment  Fund   6,623,448            6,623,448 
Total  $293,055,770   $   $   $293,055,770 

 

See accompanying Notes to Financial Statements.

 C: 
 39 

 

 

Statements of Assets and Liabilities

December 31, 2018 (Unaudited)

 

               Touchstone 
       Touchstone   Touchstone   International 
   Touchstone   Credit   International   Growth 
   Balanced   Opportunities   Equity   Opportunities 
   Fund   Fund   Fund   Fund 
Assets                    
Investments, at cost  $204,736,226   $53,415,273   $160,335,323   $35,275,757 
Investments, at market value (A)  $305,160,915   $50,732,515   $153,581,185   $32,948,968 
Cash   190    39,056         
Foreign currency (B)       24,548         
Dividends and interest receivable   920,988    638,121    189,649    2,685 
Receivable for capital shares sold   856,496    110,395    340,588     
Receivable for investments sold       117,297         
Loan receivable from affiliates(C)                
Receivable for securities lending income       2,532    7,963    807 
Tax reclaim receivable           256,457    5,433 
Other assets   29,314    7,961    26,497    18,072 
Total Assets   306,967,903    51,672,425    154,402,339    32,975,965 
                     
Liabilities                    
Written options, at market value(D)       10,560         
Dividends and interest payable on securities sold short       768        411 
Bank overdrafts           306    1 
Due to prime broker       734,111    887    24 
Dividends payable                
Payable for return of collateral for securities on loan       1,694,164    5,935,346    331,609 
Payable for capital shares redeemed   586,270    31,186    1,347,609    3,730 
Payable for investments purchased       1,405,681         
Loan payable to affiliates(C)                
Payable to Investment Advisor   139,665    40,100    84,434    12,574 
Payable to other affiliates   95,927    114    34,344    114 
Payable to Trustees   3,836    3,372    3,836    3,372 
Payable to Transfer Agent   77,901    292    68,770    4,037 
Payable for professional services   15,366    21,307    18,869    18,148 
Payable for pricing services   7,434    14,636    17,310    4,985 
Other accrued expenses and liabilities   691    8,745    5,710    6,331 
Total Liabilities   927,090    3,965,036    7,517,421    385,336 
Net Assets  $306,040,813   $47,707,389   $146,884,918   $32,590,629 
                     
Net assets consist of:                    
Paid-in capital  $206,140,616   $50,869,293   $154,449,932   $37,527,636 
Distributable earnings (deficit)   99,900,197    (3,161,904)   (7,565,014)   (4,937,007)
Net Assets  $306,040,813   $47,707,389   $146,884,918   $32,590,629 
(A) Includes market value of securities on loan of:  $   $1,615,787   $5,859,782   $319,990 
(B) Cost of foreign currency:  $   $22,722   $   $ 
(C) See Note 5 in Notes to Financial Statements.                    
(D) Premiums received for written options:  $   $7,621   $   $ 

 

See accompanying Notes to Financial Statements.

 C: 
 40 

 

 

Statements of Assets and Liabilities (Unaudited) (Continued)

 

Touchstone   Touchstone       Touchstone   Touchstone   Touchstone     
International   Large Cap   Touchstone   Large Company   Ohio Tax-Free   Small   Touchstone 
Small Cap   Focused   Large Cap   Growth   Bond   Company   Value 
Fund   Fund   Fund   Fund   Fund   Fund   Fund 
$230,227,643   $829,395,395   $232,846,909   $122,441,990   $45,434,923   $989,681,962   $263,810,851 
$218,464,754   $1,558,289,200   $278,485,502   $186,350,455   $46,950,948   $1,056,555,796   $293,055,770 
 122            25    87,503    684     
 446,177                         
 302,349    1,715,936    257,178    79,658    316,789    512,742    658,409 
 296,319    3,149,200    326,680    327,179    5,082    2,864,733    1,230,185 
 3,321,969                    20,894,331     
     5,250,292                     
 12,216    11,205                    1,459 
 279,170    141,925                8,003     
 30,587    62,823    33,206    22,745    9,075    75,499    26,160 
 223,153,663    1,568,620,581    279,102,566    186,780,062    47,369,397    1,080,911,788    294,971,983 
                                 
                          
                          
     2,623                    352 
                          
                 29,025         
 6,677,154    17,172,000                     
 1,181,813    10,895,560    634,070    430,258    154,490    10,053,003    1,253,858 
         2,436,935            20,918,979     
 5,250,292                         
 166,697    795,034    166,192    108,967    14,557    614,611    156,650 
 20,840    321,406    10,931    15,202    9,655    244,085    7,838 
 3,372    3,836    3,372    3,372    3,366    3,836    3,372 
 79,007    306,085    80,949    24,567    7,661    346,395    63,257 
 33,507    23,606    14,141    13,012    12,827    22,176    14,300 
 24,077    1,596    646    556    5,177    1,849    939 
 30,335    32,530    12,165    5,748    6,230    31,273    11,022 
 13,467,094    29,554,276    3,359,401    601,682    242,988    32,236,207    1,511,588 
$209,686,569   $1,539,066,305   $275,743,165   $186,178,380   $47,126,409   $1,048,675,581   $293,460,395 
                                 
$232,547,954   $790,255,923   $221,233,989   $121,710,149   $45,644,561   $991,940,242   $241,369,311 
 (22,861,385)   748,810,382    54,509,176    64,468,231    1,481,848    56,735,339    52,091,084 
$209,686,569   $1,539,066,305   $275,743,165   $186,178,380   $47,126,409   $1,048,675,581   $293,460,395 
$3,742,461   $16,828,560   $   $   $   $   $ 
$443,006   $   $   $   $   $   $ 
                                 
$   $   $   $   $   $   $ 

 

 C: 
 41 

 

 

Statements of Assets and Liabilities (Unaudited) (Continued)

 

               Touchstone 
       Touchstone   Touchstone   International 
   Touchstone   Credit   International   Growth 
   Balanced   Opportunities   Equity   Opportunities 
   Fund   Fund   Fund   Fund 
                     
Pricing of Class A Shares                    
Net assets applicable to Class A shares  $214,909,689   $108,528   $99,008,505   $657,241 
Shares of beneficial interest outstanding  (unlimited number of shares authorized, no par value)   10,974,097    11,705    7,064,948    38,178 
Net asset value price per share*  $19.58   $9.27   $14.01   $17.22 
Maximum sales charge - Class A shares   5.00%   5.00%   5.00%   5.00%
Maximum offering price per share  (100%/(100%-maximum sales charge) of net asset value  adjusted to the nearest cent) - Class A shares  $20.61   $9.76   $14.75   $18.13 
                     
Pricing of Class C Shares                    
Net assets applicable to Class C shares  $35,533,961   $90,957   $5,024,966   $154,319 
Shares of beneficial interest outstanding  (unlimited number of shares authorized, no par value)   1,805,823    9,784    380,987    9,153 
Net asset value and offering price per share**  $19.68   $9.30   $13.19   $16.86 
                     
Pricing of Class Y Shares                    
Net assets applicable to Class Y shares  $55,597,163   $968,039   $40,546,025   $2,258,703 
Shares of beneficial interest outstanding  (unlimited number of shares authorized, no par value)   2,860,346    104,465    2,937,373    130,750 
Net asset value, offering price and redemption price per share  $19.44   $9.27   $13.80   $17.27 
                     
Pricing of Institutional Class Shares                    
Net assets applicable to Institutional Class shares  $   $46,539,865   $2,305,422   $29,520,366 
Shares of beneficial interest outstanding  (unlimited number of shares authorized, no par value)       5,021,052    167,339    1,703,547 
Net asset value, offering price and redemption price per share  $   $9.27   $13.78   $17.33 
                     
Pricing of Class R6 Shares                    
Net assets applicable to Class R6 shares  $   $   $   $ 
Shares of beneficial interest outstanding  (unlimited number of shares authorized, no par value)                
Net asset value, offering price and redemption price per share  $   $   $   $ 

 

*There is no sales load on subscriptions of $1 million or more for all funds except for Ohio Tax-Free Bond Fund. There is no sales load on subscriptions of $500,000 or more for Ohio Tax-Free Bond Fund. Redemptions that were part of a $500,000 or $1million or more subscription, as applicable, 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.

 C: 
 42 

 

 

Statements of Assets and Liabilities (Unaudited) (Continued)

 

Touchstone   Touchstone       Touchstone   Touchstone   Touchstone     
International   Large Cap   Touchstone   Large Company   Ohio Tax-Free   Small   Touchstone 
Small Cap   Focused   Large Cap   Growth   Bond   Company   Value 
Fund   Fund   Fund   Fund   Fund   Fund   Fund 
                                 
$3,462,694   $1,048,690,938   $2,829,349   $1,075,556   $32,673,417   $525,768,084   $30,086,495 
 266,980    28,419,253    227,350    31,245    2,889,409    125,052,905    3,642,470 
$12.97   $36.90   $12.44   $34.42   $11.31   $4.20   $8.26 
 5.00%   5.00%   5.00%   5.00%   2.00%   5.00%   5.00%
                                 
$13.65   $38.84   $13.09   $36.23   $11.54   $4.42   $8.69 
                                 
$1,581,094   $57,523,174   $7,847,033   $713,632   $4,976,977   $77,375,548   $2,947,389 
                                 
 124,514    1,659,895    639,950    21,142    440,129    35,130,556    357,952 
$12.70   $34.65   $12.26   $33.75   $11.31   $2.20   $8.23 
                                 
$95,769,837   $363,006,620   $207,833,532   $14,658,328   $5,678,521   $322,638,439   $78,599,549 
                                 
 7,230,322    9,879,093    16,692,763    423,183    502,169    69,537,093    9,476,933 
$13.25   $36.74   $12.45   $34.64   $11.31   $4.64   $8.29 
                                 
$108,872,944   $69,845,573   $57,233,251   $169,730,864   $3,797,494   $721,450   $181,826,963 
                                 
 8,175,406    1,898,474    4,592,289    4,887,052    335,824    155,815    21,987,435 
$13.32   $36.79   $12.46   $34.73   $11.31   $4.63   $8.27 
                                 
$   $   $   $   $   $122,172,060   $ 
                                 
                     28,355,019     
$   $   $   $   $   $4.31   $ 

 

 C: 
 43 

 

 

Statements of Operations

For the Six Months Ended December 31, 2018 (Unaudited)

 

               Touchstone 
       Touchstone   Touchstone   International 
   Touchstone   Credit   International   Growth 
   Balanced   Opportunities   Equity   Opportunities 
   Fund   Fund   Fund   Fund 
Investment Income                    
Dividends(A)  $2,310,843   $22,777   $1,365,378   $110,360 
Interest   1,699,665    1,842,234         
Income from securities loaned   43    12,770    32,217    977 
Total Investment Income   4,010,551    1,877,781    1,397,595    111,337 
Expenses                    
Investment advisory fees   854,551    278,357    601,783    149,593 
Administration fees   233,201    36,692    124,655    27,114 
Compliance fees and expenses   710    710    710    710 
Custody fees   5,614    12,739    17,828    6,696 
Professional fees   20,241    21,857    22,391    18,492 
Transfer Agent fees, Class A   90,900    197    63,453    662 
Transfer Agent fees, Class C   16,297    31    5,296    242 
Transfer Agent fees, Class Y   17,052    151    29,192    2,162 
Transfer Agent fees, Institutional Class       40    45    4,376 
Transfer Agent fees, Class R6                
Pricing Expense   11,297    20,456    9,186    3,085 
Registration Fees, Class A   7,831    1,920    7,704    7,194 
Registration Fees, Class C   5,990    1,753    2,660    2,272 
Registration Fees, Class Y   5,177    2,749    8,057    4,728 
Registration Fees, Institutional Class       1,630    1,995    2,889 
Registration Fees, Class R6                
Interest expense on securities sold short       24,413         
Reports to Shareholders, Class A   4,144    1,361    4,635    1,389 
Reports to Shareholders, Class C   2,625    1,347    2,052    1,358 
Reports to Shareholders, Class Y   2,255    1,355    3,859    1,405 
Reports to Shareholders, Institutional Class       1,346    1,711    1,372 
Reports to Shareholders, Class R6                
Distribution expenses, Class A   293,644    167    139,631    922 
Distribution and shareholder servicing expenses, Class C   197,981    273    31,319    1,480 
Trustee fees   7,203    7,282    7,203    7,282 
Other expenses   48,932    6,313    38,545    6,107 
Total Expenses   1,825,645    423,139    1,123,910    251,530 
Fees waived by the Advisor and/or Affiliates(B)   (95,970)   (58,807)   (76,319)   (80,309)
Net Expenses   1,729,675    364,332    1,047,591    171,221 
Net Investment Income (Loss)   2,280,876    1,513,449    350,004    (59,884)
Realized and Unrealized Gains (Losses) on Investments                    
Net realized gains (losses) on investments(C)   9,679,094    (436,987)   1,153,835    (2,526,214)
Net realized gains (losses) on foreign currency transactions       87    (26,392)   (2,205)
Net realized gains on written options       1,767         
Net realized gains on securities sold short       18,375         
Net realized gains on swap agreements       10,208         
Net change in unrealized appreciation (depreciation) on investments(D)(E)   (23,175,623)   (2,454,938)   (20,975,779)   (6,287,889)
Net change in unrealized appreciation (depreciation) on foreign currency transactions       (473)   7,623    (42)
Net change in unrealized appreciation (depreciation) on securities sold short       (1,750)        
Net change in unrealized appreciation (depreciation) on written options       (1,521)        
Net Realized and Unrealized Gains (Losses) on Investments   (13,496,529)   (2,865,232)   (19,840,713)   (8,816,350)
Change in Net Assets Resulting from Operations  $(11,215,653)  $(1,351,783)  $(19,490,709)  $(8,876,234)
(A)  Net of foreign tax withholding of:  $12,688   $   $55,059   $4,365 
(B)  See Note 4 in Notes to Financial Statements.                    

(C)  For the six month ended December 31, 2018, Large Cap Focused Fund, Large Cap Fund, Small Company Fund and the Value Fund had redemptions-in-kind of securities in the amount of $10,207,890, $39,892,784, $2,695,518, and $63,282,300 respectively. Net realized gains (losses) on investments includes the realized gain on the transactions of $8,149,494, $12,036,019, $71,802, and $22,735,531 respectively, which will not be realized by the Fund for tax purposes.

(D)  Includes change in deferred foreign capital gains tax of $11,192 for the International Growth Opportunities Fund.

(E)  Change in unrealized appreciation (depreciation) does not include net appreciation of $24,471,563 for the Small Company Fund in connection with the Fund's merger. See Note 9 in the Notes to Financial Statements.

 

See accompanying Notes to Financial Statements.

 C: 
 44 

 

 

Statements of Operations (Unaudited) (Continued)

 

Touchstone   Touchstone       Touchstone   Touchstone         
International   Large Cap   Touchstone   Large Company   Ohio   Touchstone   Touchstone 
Small Cap   Focused   Large Cap   Growth   Tax-Free Bond   Small Company   Value 
Fund   Fund   Fund   Fund   Fund   Fund   Fund 
$2,120,968   $16,279,611   $2,615,754   $752,299   $290   $5,549,256   $4,839,507 
     680            911,395    20,455     
 60,800    25,209        4,431        19,764    1,513 
 2,181,768    16,305,500    2,615,754    756,730    911,685    5,589,475    4,841,020 
                                 
 1,290,811    5,219,469    1,258,751    847,795    120,385    3,986,895    1,187,245 
 197,125    1,272,430    260,741    163,907    34,912    914,983    264,847 
 710    710    710    710    709    710    710 
 47,569    13,582    4,781    3,868    2,000    11,450    5,116 
 30,748    45,142    17,767    15,290    13,285    37,293    18,106 
 9,826    355,899    1,559    2,343    9,302    387,218    22,783 
 1,618    28,983    1,585    116    1,282    49,953    1,720 
 76,204    214,247    99,653    7,312    695    202,548    38,058 
 31,915    13,114    6,526    51,524    199    107    55,330 
                     239     
 14,566    1,483    643    584    6,253    1,617    913 
 7,943    10,729    4,769    4,714    3,918    8,199    8,907 
 4,779    6,692    5,965    2,154    2,912    6,602    4,274 
 7,557    20,043    12,371    6,628    1,749    11,966    8,465 
 9,245    5,200    6,968    8,991    1,749    4,326    8,942 
                     9,251     
                          
 2,032    10,269    1,536    1,500    1,770    14,172    2,437 
 1,531    3,458    1,515    1,352    1,450    5,437    1,488 
 6,732    8,050    8,865    1,535    1,363    13,100    3,300 
 2,222    2,704    1,412    1,864    1,352    1,795    4,487 
                     1,882     
 10,976    1,519,865    3,640    3,674    42,973    814,930    45,913 
 10,851    337,144    42,114    1,181    26,282    493,113    17,324 
 7,282    7,203    7,282    7,282    7,277    7,203    7,282 
 41,508    159,926    47,206    12,364    8,644    102,798    22,055 
 1,813,750    9,256,342    1,796,359    1,146,688    290,461    7,087,787    1,729,702 
 (100,879)   (1,101,532)   (240,224)   (133,763)   (77,613)   (467,547)   (343,065)
 1,712,871    8,154,810    1,556,135    1,012,925    212,848    6,620,240    1,386,637 
 468,897    8,150,690    1,059,619    (256,195)   698,837    (1,030,765)   3,454,383 
                                 
 (4,893,909)   150,071,021    23,149,619    4,986,492    (16,067)   82,576,480    47,340,494 
 (92,442)                        
                          
                          
                          
                                 
 (53,377,950)   (255,618,855)   (38,702,052)   (26,730,400)   (98,195)   (257,319,724)   (62,417,038)
                                 
 4,567                         
                                 
                          
                                 
                          
 (58,359,734)   (105,547,834)   (15,552,433)   (21,743,908)   (114,262)   (174,743,244)   (15,076,544)
$(57,890,837)  $(97,397,144)  $(14,492,814)  $(22,000,103)  $584,575   $(175,774,009)  $(11,622,161)
$158,046   $85,875   $   $21,918   $   $15,283   $2,215 

 

 C: 
 45 

 

 

Statements of Changes in Net Assets

 

   Touchstone Balanced Fund 
   For the         
   Six Months   For the     
   Ended   Seven Months   For the Year 
   December 31,   Ended   Ended 
   2018   June 30,   November 30, 
   (Unaudited)   2018(A)   2017(B) 
From Operations               
Net investment income  $2,280,876   $2,180,528   $3,034,376 
Net realized gains (losses) on investments, foreign currency transactions, written  options, securities sold short and swap agreements   9,679,094    6,347,607    15,905,893 
Net change in unrealized appreciation (depreciation) on investments, foreign currency  transactions, securities sold short, written options and unfunded loan commitments   (23,175,623)   (3,085,132)   30,193,699 
Change in Net Assets from Operations   (11,215,653)   5,443,003    49,133,968 
                
Distributions to Shareholders from(C):               
Distributed earnings, Class A   (13,240,615)        
Distributed earnings, Class C   (2,057,508)        
Distributed earnings, Class Y   (3,501,474)        
Distributed earnings, Institutional Class            
Net investment income, Class A       (2,042,843)   (3,241,942)
Net investment income, Class C       (98,271)   (199,892)
Net investment income, Class Y       (306,197)   (283,053)
Net investment income, Institutional Class            
Net realized gains, Class A       (11,994,902)   (1,736,894)
Net realized gains, Class C       (1,997,013)   (284,357)
Net realized gains, Class Y       (1,470,918)   (102,948)
Net realized gains, Institutional Class            
Total Distributions   (18,799,597)   (17,910,144)   (5,849,086)
                
Net Increase (Decrease) from Share Transactions(D)   26,618,135    (10,388,249)   (33,445,071)
                
Total Increase (Decrease) in Net Assets   (3,397,115)   (22,855,390)   9,839,811 
                
Net Assets               
Beginning of period   309,437,928    332,293,318    322,453,507 
End of period  $306,040,813   $309,437,928   $332,293,318 
Undistributed (Distributions in excess of) Net Investment Income(C)   N/A   $224,126   $306,053 

 

(A)The Fund changed its fiscal year end from November 30 to June 30.
(B)See Note 9 in Notes to Financial Statements.
(C)The presentation of Distributions to Shareholders and Undistributed (Distributions in excess of) Net Investment Income have been updated to reflect the changes prescribed in amendments to Regulation S-X, effective November 5, 2018. The June 30, 2018 and November 30, 2017 presentations were not revised.
(D)For details on share transactions by class, see Statements of Changes in Net Assets - Capital Stock Activity on pages 52 - 54.

 

See accompanying Notes to Financial Statements.

 C: 
 46 

 

 

Statements of Changes in Net Assets (Continued)

 

Touchstone      
Credit Opportunities Fund     Touchstone International Equity Fund
For the           For the              
Six Months           Six Months     For the        
Ended           Ended     Seven Months     For the Year  
December 31,     For the Year     December 31,     Ended     Ended  
2018     Ended     2018     June 30,     November 30,  
(Unaudited)     June 30, 2018     (Unaudited)     2018(A)     2017(B)  
$ 1,513,449     $ 2,745,337     $ 350,004     $ 3,776,017   $ 1,894,495  
  (406,550 )     883,277       1,127,443       15,613,501     7,249,972  
  (2,458,682 )     (1,700,810 )     (20,968,156 )     (25,665,271 )   35,716,910  
  (1,351,783 )     1,927,804       (19,490,709 )     (6,275,753 )   44,861,377  
                                   
  (5,240 )           (13,527,353 )          
  (3,066 )           (697,755 )          
  (26,448 )           (5,855,380 )          
  (2,049,142 )           (322,138 )          
        (4,696 )           (1,381,745 )   (764,365)  
        (971 )                
        (19,128 )           (927,040 )   (486,213)  
        (2,779,367 )           (52 )    
        (1,263 )           (4,565,200 )    
        (590 )           (262,489 )    
        (8,581 )           (2,274,644 )    
        (1,323,281 )           (117 )    
  (2,083,896 )     (4,137,877 )     (20,402,626 )     (9,411,287 )   (1,250,578)  
                                   
  (1,191,475 )     1,013,131       1,951,773       1,127,073     (5,244,715)  
                                   
  (4,627,154 )     (1,196,942 )     (37,941,562 )     (14,559,967 )   38,366,084  
                                   
  52,334,543       53,531,485       184,826,480       199,386,447     161,020,363  
$ 47,707,389     $ 52,334,543     $ 146,884,918     $ 184,826,480   $ 199,386,447  
  N/A     $ 15,138       N/A     $ 1,889,327   $ 1,037,307  

 

 C: 
 47 

 

 

Statements of Changes in Net Assets (Continued)

 

   Touchstone     
   International   Touchstone 
   Growth   International 
   Opportunities Fund   Small Cap Fund 
   For the       For the     
   Six Months       Six Months     
   Ended   For the Year   Ended   For the Year 
   December 31,   Ended   December 31,   Ended 
   2018   June 30,   2018   June 30, 
   (Unaudited)   2018   (Unaudited)   2018 
From Operations                    
Net investment income (loss)  $(59,884)  $79,627   $468,897   $2,676,704 
Net realized gains (losses) on investments and foreign currency  transactions   (2,528,419)   5,136,283    (4,986,351)   35,096,340 
Net change in unrealized appreciation (depreciation) on  investments and foreign currency transactions   (6,287,931)   (1,526,328)   (53,373,383)   (6,560,538)
Change in Net Assets from Operations   (8,876,234)   3,689,582    (57,890,837)   31,212,506 
                     
Distributions to Shareholders from(C):                    
Distributed earnings, Class A   (96,097)       (348,193)    
Distributed earnings, Class C   (23,262)       (157,412)    
Distributed earnings, Class Y   (327,856)       (9,166,622)    
Distributed earnings, Institutional Class   (4,250,656)       (10,641,768)    
Net investment income, Class A               (224,474)
Net investment income, Class C               (35,220)
Net investment income, Class Y               (4,356,261)
Net investment income, Institutional Class               (5,229,613)
Net realized gains, Class A       (10,467)        
Net realized gains, Class C       (4,915)        
Net realized gains, Class Y       (5,274)        
Net realized gains, Institutional Class       (500,804)        
Total Distributions   (4,697,871)   (521,460)   (20,313,995)   (9,845,568)
                     
Net Increase (Decrease) from Share Transactions(D)   12,098,458    6,637,894    (28,009,078)   (20,494,615)
                     
Total Increase (Decrease) in Net Assets   (1,475,647)   9,806,016    (106,213,910)   872,323 
                     
Net Assets                    
Beginning of period   34,066,276    24,260,260    315,900,479    315,028,156 
End of period  $32,590,629   $34,066,276   $209,686,569   $315,900,479 
                     
Undistributed (Distributions in excess of) Net Investment  Income(C)   N/A   $77,010    N/A   $(2,101,065)

 

(A)The Fund changed its fiscal year end from November 30 to June 30.
(B)See Note 9 in Notes to Financial Statements.
(C)The presentation of Distributions to Shareholders and Undistributed (Distributions in excess of) Net Investment Income have been updated to reflect the changes prescribed in amendments to Regulation S-X, effective November 5, 2018. The June 30, 2018 and November 30, 2017 presentations were not revised.
(D)For details on share transactions by class, see Statements of Changes in Net Assets - Capital Stock Activity on pages 55 - 57.

 

See accompanying Notes to Financial Statements.

 

 C: 
 48 

 

 

Statements of Changes in Net Assets (Continued)

 

Touchstone Large Cap Focused Fund   Touchstone Large Cap Fund 
For the           For the     
Six Months   For the       Six Months     
Ended   Seven Months   For the Year   Ended   For the Year 
December 31,   Ended   Ended   December 31,   Ended 
2018   June 30,   November 30,   2018   June 30, 
(Unaudited)   2018(A)   2017(B)   (Unaudited)   2018 
                       
$8,150,690   $9,480,909   $20,628,747   $1,059,619   $2,650,765 
                       
 150,071,021    131,863,649    326,286,157    23,149,619    4,594,631 
                       
 (255,618,855)   (54,861,111)   77,569,795    (38,702,052)   30,816,488 
 (97,397,144)   86,483,447    424,484,699    (14,492,814)   38,061,884 
                       
                       
 (118,893,074)           (17,881)    
 (6,543,243)                
 (41,722,772)           (2,046,031)    
 (7,761,440)           (635,594)    
     (1,856,543)   (15,710,842)       (15,190)
         (349,488)        
     (1,927,798)   (7,901,170)       (1,521,043)
     (218,011)   (519,211)       (811,456)
     (183,755,594)   (77,329,736)        
     (10,906,303)   (5,018,041)        
     (64,798,741)   (31,927,617)        
     (6,199,833)   (1,506,542)        
 (174,920,529)   (269,662,823)   (140,262,647)   (2,699,506)   (2,347,689)
                       
 84,303,291    31,161,686    (421,767,332)   (74,631,415)   (1,585,818)
                       
 (188,014,382)   (152,017,690)   (137,545,280)   (91,823,735)   34,128,377 
                       
                       
 1,727,080,687    1,879,098,377    2,016,643,657    367,566,900    333,438,523 
$1,539,066,305   $1,727,080,687   $1,879,098,377   $275,743,165   $367,566,900 
                       
 N/A   $5,226,183   $2,586,763    N/A   $1,637,893 

 

 C: 
 49 

 

 

Statements of Changes in Net Assets (Continued)

 

   Touchstone   Touchstone 
   Large Company   Ohio Tax-Free 
   Growth Fund   Bond Fund 
   For the       For the     
   Six Months       Six Months     
   Ended   For the Year   Ended   For the Year 
   December 31,   Ended   December 31,   Ended 
   2018   June 30,   2018   June 30, 
   (Unaudited)   2018   (Unaudited)   2018 
From Operations                    
Net investment income (loss)  $(256,195)  $(664,338)  $698,837   $1,331,678 
Net realized gains (losses) on investments   4,986,492    11,427,420    (16,067)   22,620 
Net change in unrealized appreciation (depreciation) on  investments   (26,730,400)   28,941,080    (98,195)   (945,346)
Change in Net Assets from Operations   (22,000,103)   39,704,162    584,575    408,952 
                     
Distributions to Shareholders from(C):                    
Distributed earnings, Class A   (73,858)       (505,400)    
Distributed earnings, Class C   (12,084)       (57,485)    
Distributed earnings, Class Y   (1,058,842)       (79,925)    
Distributed earnings, Institutional Class   (12,527,470)       (56,066)    
Distributed earnings, Class R6                
Net investment income, Class A               (1,129,730)
Net investment income, Class C               (123,927)
Net investment income, Class Y               (63,307)
Net investment income, Institutional Class               (14,365)
Net realized gains, Class A       (79,495)        
Net realized gains, Class C       (4,037)        
Net realized gains, Class Y       (334,448)        
Net realized gains, Institutional Class       (5,903,548)        
Net realized gains, Class R6                
Total Distributions   (13,672,254)   (6,321,528)   (698,876)   (1,331,329)
                     
Net Increase (Decrease) from Share Transactions(D)   (22,142,506)   11,058,131    994,362    (2,169,116)
                     
Total Increase (Decrease) in Net Assets   (57,814,863)   44,440,765    880,061    (3,091,493)
                     
Net Assets                    
Beginning of period   243,993,243    199,552,478    46,246,348    49,337,841 
End of period  $186,178,380   $243,993,243   $47,126,409   $46,246,348 
                     
Undistributed (Distributions in excess of) Net Investment  Income(C)   N/A   $    N/A   $(18,071)

 

(A)The Fund changed its fiscal year end from November 30 to June 30.
(B)See Note 9 in Notes to Financial Statements.
(C)The presentation of Distributions to Shareholders and Undistributed (Distributions in excess of) Net Investment Income have been updated to reflect the changes prescribed in amendments to Regulation S-X, effective November 5, 2018. The June 30, 2018 and November 30, 2017 presentations were not revised.
(D)For details on share transactions by class, see Statements of Changes in Net Assets - Capital Stock Activity on pages 57-60.

 

See accompanying Notes to Financial Statements.

 

 C: 
 50 

 

 

Statements of Changes in Net Assets (Continued)

 

            Touchstone 
Touchstone Small Company Fund   Value Fund 
For the           For the     
Six Months   For the       Six Months     
Ended   Seven Months   For the Year   Ended   For the Year 
December 31,   Ended   Ended   December 31,   Ended 
2018   June 30,   November 30,   2018   June 30, 
(Unaudited)   2018(A)   2017(B)   (Unaudited)   2018 
                       
$(1,030,765)  $(1,601,393)  $(5,229,124)  $3,454,383   $6,774,255 
 82,576,480    59,511,081    125,291,363    47,340,494    27,488,737 
                       
 (257,319,724)   25,431,940    72,290,088    (62,417,038)   (7,210,659)
 (175,774,009)   83,341,628    192,352,327    (11,622,161)   27,052,333 
                       
                       
 (70,438,346)           (4,110,162)    
 (18,479,476)           (374,489)    
 (40,694,612)           (10,005,506)    
 (92,997)           (23,932,877)    
 (15,325,342)                
                 (552,960)
                 (28,376)
                 (1,461,974)
                 (4,807,215)
     (55,816,413)   (54,250,628)       (2,904,492)
     (13,671,576)   (13,229,732)       (312,663)
     (29,679,392)   (20,710,154)       (6,143,348)
     (203)           (18,521,160)
     (5,534,630)   (1,025,672)        
 (145,030,773)   (104,702,214)   (89,216,186)   (38,423,034)   (34,732,188)
                       
 151,174,863    3,102,430    66,295,636    (41,571,240)   11,638,173 
                       
 (169,629,919)   (18,258,156)   169,431,777    (91,616,435)   3,958,318 
                       
                       
 1,218,305,500    1,236,563,656    1,067,131,879    385,076,830    381,118,512 
$1,048,675,581   $1,218,305,500   $1,236,563,656   $293,460,395   $385,076,830 
                       
 N/A   $   $    N/A   $90,275 

 

 C: 
 51 

 

 

Statements of Changes in Net Assets - Capital Stock Activity

 

           Touchstone Balanced Fund         
   For the Six Months                 
   Ended   For the Seven Months   For the Year 
   December 31, 2018   Ended   Ended 
   (Unaudited)   June 30, 2018(A)   November 30, 2017(B) 
   Shares   Dollars   Shares   Dollars   Shares   Dollars 
Class A                              
Proceeds from Shares issued   344,156   $7,390,891    511,448   $11,135,471    1,213,883   $25,250,539 
Reinvestment of distributions   623,168    12,712,537    624,673    13,440,191    232,528    4,719,857 
Cost of Shares redeemed   (1,093,506)   (23,784,324)   (1,566,532)   (34,116,123)   (3,376,990)   (71,336,387)
Change from Class A Share Transactions   (126,182)   (3,680,896)   (430,411)   (9,540,461)   (1,930,579)   (41,365,991)
Class C                              
Proceeds from Shares issued   90,898    1,937,441    103,613    2,254,694    380,017    7,809,067 
Reinvestment of distributions   95,123    1,943,516    91,678    1,983,483    22,578    454,129 
Cost of Shares redeemed   (218,572)   (4,696,043)   (262,440)   (5,705,271)   (679,379)   (14,377,072)
Change from Class C Share Transactions   (32,551)   (815,086)   (67,149)   (1,467,094)   (276,784)   (6,113,876)
Class Y(C)                              
Proceeds from Shares issued   1,735,536    37,611,798    191,050    4,149,196    1,036,380    21,843,739 
Reinvestment of distributions   172,305    3,486,053    79,069    1,689,671    15,954    323,761 
Cost of Shares redeemed   (478,805)   (9,983,734)   (240,934)   (5,219,561)   (390,115)   (8,132,704)
Change from Class Y Share Transactions   1,429,036    31,114,117    29,185    619,306    662,219    14,034,796 
Institutional Class                              
Proceeds from Shares issued                        
Reinvestment of distributions                        
Cost of Shares redeemed                        
Change from Institutional Class Share  Transactions                        
Change from Share Transactions   1,270,303   $26,618,135    (468,375)  $(10,388,249)   (1,545,144)  $(33,445,071)

(A)The Fund changed its fiscal year from November 30 to June 30.

(B)See Note 9 in Notes to Financial Statements.

(C)Effective October 28, 2017, Class I shares of the Sentinel Balanced Fund (the “Predecessor Fund”) were reorganized into Class Y shares of the Touchstone Balanced Fund.

 

See accompanying Notes to Financial Statements.

 

 C: 
 52 

 

 

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

 

Touchstone Credit Opportunities Fund 
For the     
Six Months Ended   For the 
December 31, 2018   Year Ended 
(Unaudited)   June 30, 2018 
Shares   Dollars   Shares   Dollars 
                  
 5,335   $51,788    11,643   $118,995 
 440    4,227    558    5,652 
 (9,432)   (93,232)   (1,170)   (11,882)
 (3,657)   (37,217)   11,031    112,765 
                  
 9,113    90,215         
 320    3,066    152    1,561 
 (1,883)   (18,658)        
 7,550    74,623    152    1,561 
                  
 70,545    676,730    22,305    226,981 
 2,762    26,448    2,719    27,709 
 (13,418)   (133,521)   (10,727)   (108,970)
 59,889    569,657    14,297    145,720 
                  
 158,863    1,570,700    621,437    6,398,512 
 213,541    2,049,142    402,090    4,102,648 
 (544,411)   (5,418,380)   (936,639)   (9,748,075)
                  
 (172,007)   (1,798,538)   86,888    753,085 
 (108,225)  $(1,191,475)   112,368   $1,013,131 

 

 C: 
 53 

 

 

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

 

   Touchstone International Equity Fund 
   For the Six Months         
   Ended   For the Seven Months   For the Year 
   December 31, 2018   Ended   Ended 
   (Unaudited)   June 30, 2018(A)   November 30, 2017(B) 
   Shares   Dollars   Shares   Dollars   Shares   Dollars 
Class A                              
Proceeds from Shares issued   282,691   $4,823,262    473,654   $9,152,679    1,311,801   $23,285,877 
Reinvestment of distributions   906,753    13,019,094    293,806    5,682,188    44,226    688,604 
Cost of Shares redeemed   (645,879)   (10,945,311)   (822,238)   (15,736,184)   (2,162,637)   (38,654,321)
Change from Class A Share Transactions   543,565    6,897,045    (54,778)   (901,317)   (806,610)   (14,679,840)
Class C                              
Proceeds from Shares issued   11,691    190,617    70,047    1,268,035    133,628    2,213,614 
Reinvestment of distributions   50,627    679,647    13,759    252,206         
Cost of Shares redeemed   (74,764)   (1,142,963)   (65,387)   (1,176,556)   (159,419)   (2,683,483)
Change from Class C Share Transactions   (12,446)   (272,699)   18,419    343,685    (25,791)   (469,869)
Class Y(C)                              
Proceeds from Shares issued   372,435    6,229,078    807,622    15,303,803    2,569,654    45,276,408 
Reinvestment of distributions   408,231    5,783,890    164,684    3,143,813    30,455    468,087 
Cost of Shares redeemed   (1,046,024)   (17,339,905)   (1,024,275)   (19,283,081)   (1,976,731)   (35,842,676)
Change from Class Y Share Transactions   (265,358)   (5,326,937)   (51,969)   (835,465)   623,378    9,901,819 
Institutional Class(D)                              
Proceeds from Shares issued   21,218    381,372    125,960    2,520,019    167    3,175 
Reinvestment of distributions   22,775    322,138    9    169         
Cost of Shares redeemed   (2,789)   (49,146)   (1)   (18)        
Change from Institutional Class Share  Transactions   41,204    654,364    125,968    2,520,170    167    3,175 
Change from Share Transactions   306,965   $1,951,773    37,640   $1,127,073    (208,856)  $(5,244,715)

 

(A)The Fund changed its fiscal year from November 30 to June 30.

(B)See Note 9 in Notes to Financial Statements.

(C)Effective October 28, 2017, Class I shares of the Sentinel International Equity Fund (the “Predecessor Fund”) were reorganized into Class Y shares of the Touchstone International Equity Fund.

(D)The International Equity Fund began issuing Institutional Class shares on October 30, 2017.

 

See accompanying Notes to Financial Statements.

 

 C: 
 54 

 

 

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

 

Touchstone International Growth Opportunities Fund   Touchstone International Small Cap Fund 
For the       For the     
Six Months Ended   For the   Six Months Ended   For the 
December 31, 2018   Year Ended   December 31, 2018   Year Ended 
(Unaudited)   June 30, 2018   (Unaudited)   June 30, 2018 
Shares   Dollars   Shares   Dollars   Shares   Dollars   Shares   Dollars 
                                      
 12,021   $280,509    38,090   $957,819    25,026   $433,016    345,684   $6,430,894 
 5,357    96,098    421    10,400    19,506    263,989    9,187    169,676 
 (15,749)   (376,551)   (8,258)   (209,568)   (433,042)   (6,673,728)   (684,584)   (12,593,056)
 1,629    56    30,253    758,651    (388,510)   (5,976,723)   (329,713)   (5,992,486)
                                      
 1,604    37,371    17,363    432,259    7,000    106,201    29,552    533,110 
 1,323    23,263    201    4,915    10,792    143,043    1,567    28,533 
 (11,392)   (259,840)   (79)   (1,996)   (35,399)   (530,225)   (60,140)   (1,082,759)
 (8,465)   (199,206)   17,485    435,178    (17,607)   (280,981)   (29,021)   (521,116)
                                      
 17,414    388,144    185,801    4,785,015    228,654    3,502,135    1,072,936    20,052,296 
 18,201    327,855    214    5,274    645,591    8,930,258    221,715    4,176,429 
 (85,639)   (1,780,044)   (12,498)   (325,519)   (1,531,997)   (24,932,200)   (1,932,134)   (36,110,600)
 (50,024)   (1,064,045)   173,517    4,464,770    (657,752)   (12,499,807)   (637,483)   (11,881,875)
                                      
 430,744    10,703,452    28,498    703,725    1,349,741    21,602,437    4,228,129    79,770,190 
 234,395    4,238,825    20,134    498,928    764,467    10,631,410    274,388    5,194,163 
 (75,754)   (1,580,624)   (8,538)   (223,358)   (2,512,837)   (41,485,414)   (4,534,311)   (87,063,491)
                                      
 589,385    13,361,653    40,094    979,295    (398,629)   (9,251,567)   (31,794)   (2,099,138)
 532,525   $12,098,458    261,349   $6,637,894    (1,462,498)  $(28,009,078)   (1,028,011)  $(20,494,615)

 

 C: 
 55 

 

 

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

 

   Touchstone Large Cap Focused Fund 
   For the Six Months         
   Ended   For the Seven Months   For the Year 
   December 31, 2018   Ended   Ended 
   (Unaudited)   June 30, 2018(A)   November 30, 2017(B) 
   Shares   Dollars   Shares   Dollars   Shares   Dollars 
Class A                              
Proceeds from Shares issued   695,646   $29,717,707    815,107   $35,628,247    1,459,660   $63,541,135 
Reinvestment of distributions   2,715,788    106,532,964    3,889,740    165,033,926    1,998,894    82,231,470 
Cost of Shares redeemed   (2,819,827)   (122,329,293)   (3,982,603)   (177,279,849)   (8,302,661)   (368,083,987)
Change from Class A Share Transactions   591,607    13,921,378    722,244    23,382,324    (4,844,107)   (222,311,382)
Class C                              
Proceeds from Shares issued   103,752    3,892,206    50,250    2,070,075    211,838    8,585,918 
Reinvestment of distributions   171,148    6,291,421    260,648    10,467,621    130,769    5,107,041 
Cost of Shares redeemed   (252,294)   (9,811,346)   (268,366)   (11,164,662)   (806,388)   (34,030,006)
Change from Class C Share Transactions   22,606    372,281    42,532    1,373,034    (463,781)   (20,337,047)
Class Y(C)                              
Proceeds from Shares issued   1,255,097    54,759,358    1,429,384    64,702,421    2,583,052    111,976,965 
Reinvestment of distributions   870,960    34,044,871    1,306,403    55,221,657    781,425    32,153,805 
Cost of Shares redeemed   (1,267,880)   (55,888,342)   (2,719,325)   (118,462,809)   (7,436,364)   (331,943,211)
Change from Class Y Share Transactions   858,177    32,915,887    16,462    1,461,269    (4,071,887)   (187,812,441)
Institutional Class(D)                              
Proceeds from Shares issued   1,226,413    53,888,167    3,028,530    135,629,681    1,083,816    49,314,099 
Reinvestment of distributions   198,310    7,761,440    151,651    6,417,844    48,834    2,025,753 
Cost of Shares redeemed   (593,328)   (24,555,862)   (3,029,751)   (137,102,466)   (923,130)   (42,646,314)
Change from Institutional Class Share  Transactions   831,395    37,093,745    150,430    4,945,059    209,520    8,693,538 
Change from Share Transactions   2,303,785   $84,303,291    931,668   $31,161,686    (9,170,255)  $(421,767,332)

(A)The Fund changed its fiscal year from November 30 to June 30.

(B)See Note 9 in Notes to Financial Statements.

(C)Effective October 28, 2017, Class I shares of the Sentinel Common Stock Fund (the “Predecessor Fund”) were reorganized into Class Y shares of the Touchstone Large Cap Focused Fund.

(D)Effective October 30, 2017, Class R6 shares of the Sentinel Common Stock Fund (the “Predecessor Fund”) were reorganized into Institutional Class shares of the Touchstone Large Cap Focused Fund.

 

See accompanying Notes to Financial Statements.

 C: 
 56 

 

 

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

 

Touchstone Large Cap Fund   Touchstone Large Company Growth Fund 
For the       For the     
Six Months Ended   For the   Six Months Ended   For the 
December 31, 2018   Year Ended   December 31, 2018   Year Ended 
(Unaudited)   June 30, 2018   (Unaudited)   June 30, 2018 
Shares   Dollars   Shares   Dollars   Shares   Dollars   Shares   Dollars 
                                      
 29,051   $371,626    95,560   $1,247,461    43,551   $1,846,968    123,690   $4,870,568 
 1,281    15,801    1,038    13,968    2,021    73,857    2,033    79,495 
 (27,174)   (376,120)   (321,234)   (4,203,183)   (96,999)   (4,019,016)   (46,986)   (1,908,742)
 3,158    11,307    (224,636)   (2,941,754)   (51,427)   (2,098,191)   78,737    3,041,321 
                                      
 89,339    1,186,320    71,811    933,646    16,823    565,325    4,822    193,954 
                 337    12,084    104    4,037 
 (51,222)   (659,977)   (156,637)   (2,005,538)   (1,811)   (73,375)        
 38,117    526,343    (84,826)   (1,071,892)   15,349    504,034    4,926    197,991 
                                      
 625,674    8,236,782    1,543,884    20,431,285    46,202    1,830,445    137,093    5,592,515 
 161,741    1,995,885    109,646    1,478,024    22,207    816,318    8,523    334,448 
 (1,524,173)   (20,721,564)   (2,732,808)   (35,729,564)   (29,602)   (1,136,249)   (40,424)   (1,666,941)
 (736,758)   (10,488,897)   (1,079,278)   (13,820,255)   38,807    1,510,514    105,192    4,260,022 
                                      
 594,371    8,293,709    1,489,272    19,874,004    399,656    15,847,394    926,758    37,540,549 
 42,766    528,158    58,429    788,793    320,166    11,801,333    143,468    5,638,302 
 (5,403,506)   (73,502,035)   (335,590)   (4,414,714)   (1,225,413)   (49,707,590)   (994,504)   (39,620,054)
                                      
 (4,766,369)   (64,680,168)   1,212,111    16,248,083    (505,591)   (22,058,863)   75,722    3,558,797 
 (5,461,852)  $(74,631,415)   (176,629)  $(1,585,818)   (502,862)  $(22,142,506)   264,577   $11,058,131 

 

 C: 
 57 

 

 

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

 

   Touchstone Ohio Tax-Free Bond Fund 
   For the     
   Six Months Ended   For the 
   December 31, 2018   Year Ended 
   (Unaudited)   June 30, 2018 
   Shares   Dollars   Shares   Dollars 
Class A                    
Proceeds from Shares issued  $96,747   $1,082,449    407,502   $4,689,822 
Proceeds from Shares issued in connection with merger(B)                
Reinvestment of distributions   33,604    377,728    70,240    804,607 
Cost of Shares redeemed   (394,520)   (4,418,351)   (1,030,455)   (11,842,288)
Change from Class A Share Transactions   (264,169)   (2,958,174)   (552,713)   (6,347,859)
Class C                    
Proceeds from Shares issued   57,127    639,748    24,400    279,406 
Proceeds from Shares issued in connection with merger(B)                
Reinvestment of distributions   3,456    38,910    8,628    99,015 
Cost of Shares redeemed   (93,790)   (1,050,423)   (122,815)   (1,417,373)
Change from Class C Share Transactions   (33,207)   (371,765)   (89,787)   (1,038,952)
Class Y(C)                    
Proceeds from Shares issued   189,027    2,114,966    411,840    4,721,220 
Proceeds from Shares issued in connection with merger(B)                
Reinvestment of distributions   5,683    63,906    4,519    51,370 
Cost of Shares redeemed   (98,179)   (1,100,285)   (10,935)   (124,361)
Change from Class Y Share Transactions   96,531    1,078,587    405,424    4,648,229 
Institutional Class(D)                    
Proceeds from Shares issued   369,018    4,174,012    58,836    681,123 
Proceeds from Shares issued in connection with merger(B)                
Reinvestment of distributions   4,111    46,214    1,256    14,365 
Cost of Shares redeemed   (86,719)   (974,512)   (10,892)   (126,022)
Change from Institutional Class Share Transactions   286,410    3,245,714    49,200    569,466 
Class R6                    
Proceeds from Shares issued                
Reinvestment of distributions                
Cost of Shares redeemed                
Change from Class R6 Share Transactions                
Change from Share Transactions   85,565   $994,362    (187,876)  $(2,169,116)

(A)The Fund changed its fiscal year from November 30 to June 30.

(B)See Note 9 in Notes to Financial Statements.

(C)Effective October 28, 2017, Class I shares of the Sentinel Small Company Fund (the “Predecessor Fund”) were reorganized into Class Y shares of the Touchstone Small Company Fund.

(D)The Small Company Fund began issuing Institutional Class shares on October 30, 2017.

 

See accompanying Notes to Financial Statements.

 

 C: 
 58 

 

 

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

 

Touchstone Small Company Fund 
For the Six Months         
Ended   For the Seven Months   For the Year 
December 31, 2018   Ended   Ended 
(Unaudited)   June 30, 2018(A)   November 30, 2017(B) 
Shares   Dollars   Shares   Dollars   Shares   Dollars 
                            
$4,670,344   $24,403,891    5,895,776   $31,725,207    12,736,974   $64,922,273 
 3,572,822    21,326,954                 
 14,440,331    65,847,900    9,931,506    51,941,762    10,260,090    50,274,442 
 (17,212,003)   (92,540,331)   (16,353,009)   (88,164,421)   (35,156,499)   (181,071,810)
 5,471,494    19,038,414    (525,727)   (4,497,452)   (12,159,435)   (65,875,095)
                            
 848,607    2,469,893    1,201,762    3,809,548    4,275,835    13,492,231 
 1,917,820    6,665,795                 
 7,546,781    18,036,807    4,368,606    13,367,905    4,154,959    12,714,176 
 (5,271,789)   (14,742,442)   (5,246,225)   (16,802,180)   (11,339,284)   (36,511,088)
 5,041,419    12,430,053    324,143    375,273    (2,908,490)   (10,304,681)
                            
 10,215,631    61,305,072    10,885,478    63,650,858    33,014,830    182,189,524 
 11,284,528    73,494,700                 
 7,860,688    39,597,755    4,412,737    25,152,605    3,158,900    16,678,996 
 (23,290,765)   (139,007,613)   (15,544,983)   (91,507,813)   (18,800,069)   (104,298,111)
 6,070,082    35,389,914    (246,768)   (2,704,350)   17,373,661    94,570,409 
                            
 325,993    2,005,521    878    5,183    431    2,500 
 556,531    3,625,412                 
 17,201    86,450    36    203         
 (745,255)   (4,731,464)                
 154,470    985,919    914    5,386    431    2,500 
                            
 16,894,193    96,278,225    2,887,650    16,010,197    11,135,743    58,124,146 
 1,780,528    8,323,538    1,038,392    5,534,630    206,788    1,025,672 
 (3,814,936)   (21,271,200)   (2,127,109)   (11,621,254)   (2,126,522)   (11,247,315)
 14,859,785    83,330,563    1,798,933    9,923,573    9,216,009    47,902,503 
 31,597,250   $151,174,863    1,351,495   $3,102,430    11,522,176   $66,295,636 

 

 C: 
 59 

 

 

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

 

   Touchstone Value Fund 
   For the     
   Six Months Ended   For the 
   December 31, 2018   Year Ended 
   (Unaudited)   June 30, 2018 
   Shares   Dollars   Shares   Dollars 
Class A                    
Proceeds from Shares issued   122,302   $1,177,211    220,556   $2,207,890 
Reinvestment of distributions   444,058    3,876,751    327,947    3,256,583 
Cost of Shares redeemed   (650,331)   (5,849,454)   (1,125,388)   (11,384,407)
Change from Class A Share Transactions   (83,971)   (795,492)   (576,885)   (5,919,934)
Class C                    
Proceeds from Shares issued   52,303    477,239    12,381    124,927 
Reinvestment of distributions   36,869    319,659    27,913    275,950 
Cost of Shares redeemed   (100,609)   (962,689)   (116,542)   (1,169,914)
Change from Class C Share Transactions   (11,437)   (165,791)   (76,248)   (769,037)
Class Y                    
Proceeds from Shares issued   983,092    9,540,881    1,420,393    14,432,337 
Reinvestment of distributions   1,112,585    9,760,478    729,059    7,268,521 
Cost of Shares redeemed   (852,234)   (8,104,741)   (2,172,809)   (22,089,267)
Change from Class Y Share Transactions   1,243,443    11,196,618    (23,357)   (388,409)
Institutional Class                    
Proceeds from Shares issued   1,669,154    16,697,681    4,724,179    47,634,334 
Reinvestment of distributions   2,712,724    23,811,241    2,318,457    23,063,384 
Cost of Shares redeemed   (8,820,076)   (92,315,497)   (5,164,702)   (51,982,165)
Change from Institutional Class Share Transactions   (4,438,198)   (51,806,575)   1,877,934    18,715,553 
Change from Share Transactions   (3,290,163)  $(41,571,240)   1,201,444   $11,638,173 

 

See accompanying Notes to Financial Statements.

 

 C: 
 60 

 

 

Financial Highlights

 

Touchstone Balanced Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

   Six Months                         
   Ended   Seven Months                     
   December 31,   Ended                     
   2018   June 30,   Year Ended November 30, 
   (Unaudited)   2018(A)   2017   2016   2015   2014   2013 
Net asset value at beginning of period  $21.54   $22.40   $19.68   $19.87   $20.98   $20.23   $18.03 
Income (loss) from investment operations:                                   
Net investment income   0.17    0.16    0.21    0.23(B)   0.43(B)   0.26(B)   0.23(B)
Net realized and unrealized gains (losses) on investments   (0.86)   0.22    2.89    0.66    (0.35)   1.50    2.91 
Total from investment operations   (0.69)   0.38    3.10    0.89    0.08    1.76    3.14 
Distributions from:                                   
Net investment income   (0.20)   (0.18)   (0.25)   (0.44)   (0.30)   (0.26)   (0.26)
Realized capital gains   (1.07)   (1.06)   (0.13)   (0.64)   (0.89)   (0.75)   (0.68)
Total distributions   (1.27)   (1.24)   (0.38)   (1.08)   (1.19)   (1.01)   (0.94)
Net asset value at end of period  $19.58   $21.54   $22.40   $19.68   $19.87   $20.98   $20.23 
Total return(C)   (3.43%)(D)   1.72%(D)   15.95%   4.75%   0.56%   9.10%   18.15%
Ratios and supplemental data:                                   
Net assets at end of period (000's)  $214,910   $239,056   $258,279   $264,910   $263,276   $278,385   $267,627 
Ratio to average net assets:                                   
Net expenses   1.01%(E)   1.01%(E)   1.03%   1.01%   1.04%   1.07%   1.06%
Gross expenses   1.07%(E)   1.07%(E)   1.04%   1.01%   1.04%   1.07%   1.06%
Net investment income   1.48%(E)   1.24%(E)   0.99%   1.20%   2.17%(F)   1.29%   1.22%
Portfolio turnover rate   40%(D)   119%(D)   46%   45%   86%   94%   154%

 

(A)The Fund changed its fiscal year end from November 30 to June 30.
(B)The net investment income per share was based on average shares outstanding for the period.
(C)Total returns shown exclude the effect of applicable sales loads and fees. If these charges were included, the returns would be lower.
(D)Not annualized.
(E)Annualized.
(F)Includes the impact of special dividends resulting from an acquisition of Covidien plc by Medtronic, Inc. on January 26, 2015 through the formation of a new holding company, Medtronic plc, incorporated in Ireland. These special dividends enhanced the ratios of net investment income for Class A shares by 0.86% for the fiscal year ended November 30, 2015.

 

See accompanying Notes to Financial Statements.

 

 C: 
 61 

 

Financial Highlights (Continued)

 

Touchstone Balanced Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

   Six Months                         
   Ended
December 31,
2018
   Seven Months
Ended
June 30,
   Year Ended November 30, 
   (Unaudited)   2018(A)   2017   2016   2015   2014   2013 
Net asset value at beginning of period  $21.63   $22.46   $19.73   $19.93   $21.04   $20.27   $18.07 
Income (loss) from investment operations:                  0.08(B)   0.28(B)   0.11(B)   0.08(B)
Net investment income   0.08    0.06    0.04                     
Net realized and unrealized gains (losses) on investments   (0.85)   0.22    2.91    0.66    (0.35)   1.51    2.91 
Total from investment operations   (0.77)   0.28    2.95    0.74    (0.07)   1.62    2.99 
Distributions from:                                   
Net investment income   (0.11)   (0.05)   (0.09)   (0.30)   (0.15)   (0.10)   (0.11)
Realized capital gains   (1.07)   (1.06)   (0.13)   (0.64)   (0.89)   (0.75)   (0.68)
Total distributions   (1.18)   (1.11)   (0.22)   (0.94)   (1.04)   (0.85)   (0.79)
Net asset value at end of period  $19.68   $21.63   $22.46   $19.73   $19.93   $21.04   $20.27 
Total return(C)   (3.75%)(D)   1.25%(D)   15.09%   3.91%   (0.23%)   8.34%   17.19%
Ratios and supplemental data:                                   
Net assets at end of period (000's)  $35,534   $39,769   $42,800   $43,066   $35,344   $32,002   $30,647 
Ratio to average net assets:                                   
Net expenses   1.78%(E)   1.78%(E)   1.79%   1.78%   1.82%   1.82%   1.86%
Gross expenses   1.86%(E)   1.86%(E)   1.81%   1.78%   1.82%   1.82%   1.86%
Net investment income   0.71%(E)   0.47%(E)   0.23%   0.43%   1.39%(F)   0.53%   0.42%
Portfolio turnover rate   40%(D)   119%(D)   46%   45%   86%   94%   154%

 

(A)The Fund changed its fiscal year end from November 30 to June 30.

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

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

(D)Not annualized.

(E)Annualized.

(F)Includes the impact of special dividends resulting from an acquisition of Covidien plc by Medtronic, Inc. on January 26, 2015 through the formation of a new holding company, Medtronic plc, incorporated in Ireland. These special dividends enhanced the ratios of net investment income for Class C shares by 0.86% for the fiscal year ended November 30, 2015.

 

See accompanying Notes to Financial Statements.

 

 C: 
 62 

 

Financial Highlights (Continued)

 

Touchstone Balanced Fund—Class Y(A)

Selected Data for a Share Outstanding Throughout Each Period

   Six Months                         
   Ended   Seven Months                     
   December 31,
2018
   Ended
June 30,
   Year Ended November 30, 
   (Unaudited)   2018(B)   2017   2016   2015   2014   2013 
Net asset value at beginning of period  $21.39   $22.26   $19.57   $19.78   $20.90   $20.15   $17.95 
Income (loss) from investment operations:                           
Net investment income   0.18    0.19    0.28    0.27(C)   0.47(C)   0.31(C)   0.28(C)
Net realized and unrealized gains (losses) on investments   (0.84)   0.22    2.84    0.65    (0.34)   1.50    2.89 
Total from investment operations   (0.66)   0.41    3.12    0.92    0.13    1.81    3.17 
Distributions from:                                   
Net investment income   (0.22)   (0.22)   (0.30)   (0.49)   (0.36)   (0.31)   (0.29)
Realized capital gains   (1.07)   (1.06)   (0.13)   (0.64)   (0.89)   (0.75)   (0.68)
Total distributions   (1.29)   (1.28)   (0.43)   (1.13)   (1.25)   (1.06)   (0.97)
Net asset value at end of period  $19.44   $21.39   $22.26   $19.57   $19.78   $20.90   $20.15 
Total return   (3.30%)(D)   1.86%(D)   16.20%   4.94%   0.79%   9.43%   18.46%
Ratios and supplemental data:                                   
Net assets at end of period (000's)  $55,597   $30,612   $31,215   $14,477   $12,589   $17,062   $20,468 
Ratio to average net assets:                                   
Net expenses   0.81%(E)   0.81%(E)   0.78%   0.81%   0.81%   0.80%   0.77%
Gross expenses   0.84%(E)   0.90%(E)   0.80%   0.81%   0.81%   0.80%   0.77%
Net investment income   1.68%(E)   1.44%(E)   1.25%   1.41%   2.39%(F)   1.55%   1.50%
Portfolio turnover rate   40%(D)   119%(D)   46%   45%   86%   94%   154%

 

(A)Effective October 28, 2017, Class I shares of the Sentinel Balanced Fund (the “Predecessor Fund”) were reorganized into Class Y shares of the Fund.
(B)The Fund changed its fiscal year end from November 30 to June 30.

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

(D)Not annualized.

(E)Annualized.

(F)Includes the impact of special dividends resulting from an acquisition of Covidien plc by Medtronic, Inc. on January 26, 2015 through the formation of a new holding company, Medtronic plc, incorporated in Ireland. These special dividends enhanced the ratios of net investment income for Class Y shares by 0.86% for the fiscal year ended November 30, 2015.

 

See accompanying Notes to Financial Statements.

 

 C: 
 63 

 

Financial Highlights (Continued)

 

Touchstone Credit Opportunities Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

   Six Months             
   Ended             
   December 31,   Year Ended   Year Ended   Period Ended 
   2018   June 30,   June 30,   June 30, 
   (Unaudited)   2018   2017   2016(A) 
Net asset value at beginning of period  $9.96   $10.41   $10.05   $10.00 
Income (loss) from investment operations:                    
Net investment income   0.26    0.49    0.45    0.22 
Net realized and unrealized gains (losses) on investments   (0.55)   (0.13)   0.45    0.07 
Total from investment operations   (0.29)   0.36    0.90    0.29 
Distributions from:                    
Net investment income   (0.29)   (0.53)   (0.47)   (0.23)
Realized capital gains   (0.11)   (0.28)   (0.07)   (0.01)
Total distributions   (0.40)   (0.81)   (0.54)   (0.24)
Net asset value at end of period  $9.27   $9.96   $10.41   $10.05 
Total return(B)   (2.99%)(C)   3.50%   9.08%   2.95%(C)
Ratios and supplemental data:                    
Net assets at end of period (000's)  $109   $153   $45   $43 
Ratio to average net assets:                    
Net expenses (including dividend and interest expense on securities sold short)(D)   1.79%(E)   1.76%   1.87%   1.73%(E)
Gross expenses (including dividend and interest expense on securities sold short)(F)   7.08%(E)   10.00%   16.01%   38.32%(E)
Net investment income   5.63%(E)   5.00%   4.44%   3.53%(E)
Portfolio turnover rate   37%(C)   70%   84%   91%(C)

 

(A)Represents the period from commencement of operations (September 1, 2015) through June 30, 2016.

(B)Total returns shown exclude the effect of applicable sales loads and fees. 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 1.69%, 1.69%, 1.69% and 1.69% for the six months ended December 31, 2018 and years ended June 30, 2018, June 30, 2017 and for the period ended June 30, 2016, respectively.

(E)Annualized.

(F)The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short was 6.98%, 9.93%, 15.83% and 38.28% for the six months ended December 31, 2018 and years ended June 30, 2018, June 30, 2017 and for the period ended June 30, 2016, respectively.

 

See accompanying Notes to Financial Statements.

 

 C: 
 64 

 

Financial Highlights (Continued)

 

Touchstone Credit Opportunities Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

   Six Months             
   Ended             
   December 31,   Year Ended   Year Ended   Period Ended 
   2018   June 30,   June 30,   June 30, 
   (Unaudited)   2018   2017   2016(A) 
Net asset value at beginning of period  $10.00   $10.44   $10.08   $10.00 
Income (loss) from investment operations:                    
Net investment income   0.20    0.44    0.34    0.17 
Net realized and unrealized gains (losses) on investments   (0.52)   (0.15)   0.48    0.08 
Total from investment operations   (0.32)   0.29    0.82    0.25 
Distributions from:                    
Net investment income   (0.27)   (0.45)   (0.39)   (0.16)
Realized capital gains   (0.11)   (0.28)   (0.07)   (0.01)
Total distributions   (0.38)   (0.73)   (0.46)   (0.17)
Net asset value at end of period  $9.30   $10.00   $10.44   $10.08 
Total return(B)   (3.20%)(C)   2.69%   8.31%   2.59%(C)
Ratios and supplemental data:                    
Net assets at end of period (000's)  $91   $22   $22   $6 
Ratio to average net assets:                    
Net expenses (including dividend and interest expense on securities sold short)(D)   2.54%(E)   2.51%   2.62%   2.48%(E)
Gross expenses (including dividend and interest expense on securities sold short)(F)   14.09%(E)   34.60%   73.30%   276.34%(E)
Net investment income   4.88%(E)   4.25%   3.69%   2.79%(E)
Portfolio turnover rate   37%(C)   70%   84%   91%(C)

 

(A)Represents the period from commencement of operations (September 1, 2015) through June 30, 2016.

(B)Total returns shown exclude the effect of applicable sales loads and fees. 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 2.44%, 2.44%, 2.44% and 2.44% for the six months ended December 31, 2018 and years ended June 30, 2018, June 30, 2017 and for the period ended June 30, 2016, respectively.

(E)Annualized.

(F)The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short was 13.99%, 34.53%, 73.12% and 276.30% for the six months ended December 31, 2018 and years ended June 30, 2018, June 30, 2017 and for the period ended June 30, 2016, respectively.

 

See accompanying Notes to Financial Statements.

 

 C: 
 65 

 

Financial Highlights (Continued)

 

Touchstone Credit Opportunities Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period

   Six Months             
   Ended             
   December 31,   Year Ended   Year Ended   Period Ended 
   2018   June 30,   June 30,   June 30, 
   (Unaudited)   2018   2017   2016(A) 
Net asset value at beginning of period  $9.96   $10.41   $10.04   $10.00 
Income (loss) from investment operations:                    
Net investment income   0.32    0.50    0.39    0.31 
Net realized and unrealized gains (losses) on investments   (0.59)   (0.12)   0.54    (0.02)
Total from investment operations   (0.27)   0.38    0.93    0.29 
Distributions from:                    
Net investment income   (0.31)   (0.55)   (0.49)   (0.24)
Realized capital gains   (0.11)   (0.28)   (0.07)   (0.01)
Total distributions   (0.42)   (0.83)   (0.56)   (0.25)
Net asset value at end of period  $9.27   $9.96   $10.41   $10.04 
Total return   (2.77%)(B)   3.73%   9.39%   3.04%(B)
Ratios and supplemental data:                    
Net assets at end of period (000's)  $968   $444   $315   $3 
Ratio to average net assets:                    
Net expenses (including dividend and interest expense on securities sold short)(C)   1.54%(D)   1.51%   1.62%   1.48%(D)
Gross expenses (including dividend and interest expense on securities sold short)(E)   3.06%(D)   4.29%   8.25%   355.77%(D)
Net investment income   5.88%(D)   5.25%   4.69%   3.79%(D)
Portfolio turnover rate   37%(B)   70%   84%   91%(B)

 

(A)Represents the period from commencement of operations (September 1, 2015) through June 30, 2016.

(B)Not annualized.

(C)The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short was 1.44%, 1.44%, 1.44% and 1.44% for the six months ended December 31, 2018 and years ended June 30, 2018, June 30, 2017 and for the period ended June 30, 2016, respectively.

(D)Annualized.

(E)The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short was 2.96%, 4.22%, 8.07% and 355.73% for the six months ended December 31, 2018 and years ended June 30, 2018, June 30, 2017 and for the period ended June 30, 2016, respectively.

 

See accompanying Notes to Financial Statements.

 

 C: 
 66 

 

Financial Highlights (Continued)

 

Touchstone Credit Opportunities Fund—Institutional Class

Selected Data for a Share Outstanding Throughout Each Period

   Six Months             
   Ended             
   December 31,   Year Ended   Year Ended   Period Ended 
   2018   June 30,   June 30,   June 30, 
   (Unaudited)   2018   2017   2016(A) 
Net asset value at beginning of period  $9.96   $10.41   $10.05   $10.00 
Income (loss) from investment operations:                    
Net investment income   0.30    0.55    0.50    0.28 
Net realized and unrealized gains (losses) on investments   (0.57)   (0.16)   0.43    0.03 
Total from investment operations   (0.27)   0.39    0.93    0.31 
Distributions from:                    
Net investment income   (0.31)   (0.56)   (0.50)   (0.25)
Realized capital gains   (0.11)   (0.28)   (0.07)   (0.01)
Total distributions   (0.42)   (0.84)   (0.57)   (0.26)
Net asset value at end of period  $9.27   $9.96   $10.41   $10.05 
Total return   (2.82%)(B)   3.85%   9.47%   3.22%(B)
Ratios and supplemental data:                    
Net assets at end of period (000's)  $46,540   $51,715   $53,150   $54,411 
Ratio to average net assets:                    
Net expenses (including dividend and interest expense on securities sold short)(C)   1.44%(D)   1.41%   1.52%   1.38%(D)
Gross expenses (including dividend and interest expense on securities sold short)(E)   1.63%(D)   1.59%   1.69%   1.65%(D)
Net investment income   5.98%(D)   5.35%   4.79%   3.88%(D)
Portfolio turnover rate   37%(B)   70%   84%   91%(B)

 

(A)Represents the period from commencement of operations (September 1, 2015) through June 30, 2016.

(B)Not annualized.

(C)The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short was 1.34%, 1.34%, 1.34% and 1.34% for the six months ended December 31, 2018 and years ended June 30, 2018, June 30, 2017 and for the period ended June 30, 2016, respectively.

(D)Annualized.

(E)The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short was 1.53%, 1.52%, 1.51% and 1.61% for the six months ended December 31, 2018 and years ended June 30, 2018, June 30, 2017 and for the period ended June 30, 2016, respectively.

 

See accompanying Notes to Financial Statements.

 

 C: 
 67 

 

Financial Highlights (Continued)

 

Touchstone International Equity Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

   Six Months                         
   Ended   Seven Months                     
   December 31,
2018
   Ended
June 30,
   Year Ended November 30, 
   (Unaudited)   2018(A)   2017   2016   2015   2014   2013 
Net asset value at beginning of period  $18.15   $19.64   $15.52   $16.92   $19.61   $20.18   $16.03 
Income (loss) from investment operations:                                   
Net investment income   0.01    0.36(B)   0.17    0.18(C)   0.13(C)   0.25(C)   0.16(C)
Net realized and unrealized gains (losses) on investments   (2.02)   (0.94)   4.05    (0.97)   0.47    (0.61)   4.13 
Total from investment operations   (2.01)   (0.58)   4.22    (0.79)   0.60    (0.36)   4.29 
Distributions from:                                   
Net investment income   (0.26)   (0.21)   (0.10)   (0.12)   (0.34)   (0.21)   (0.14)
Realized capital gains   (1.87)   (0.70)       (0.49)   (2.95)        
Total distributions   (2.13)   (0.91)   (0.10)   (0.61)   (3.29)   (0.21)   (0.14)
Net asset value at end of period  $14.01   $18.15   $19.64   $15.52   $16.92   $19.61   $20.18 
Total return(D)   (11.18%)(E)   (3.23%)(E)   27.39%   (4.81%)   4.49%   (1.81%)   26.93%
Ratios and supplemental data:                                   
Net assets at end of period (000's)  $99,009   $118,391   $129,139   $114,616   $113,212   $115,216   $122,646 
Ratio to average net assets:                                   
Net expenses   1.28%(F)   1.23%(F)   1.37%   1.36%   1.41%   1.41%   1.44%
Gross expenses   1.34%(F)   1.30%(F)   1.39%   1.36%   1.41%   1.41%   1.44%
Net investment income   0.35%(F)   3.22%(B)(F)   0.92%   1.11%   0.76%   1.22%   0.91%
Portfolio turnover rate   20%(E)   26%(E)   37%   36%   55%   50%   52%

 

(A)The Fund changed its fiscal year end from November 30 to June 30.

(B)Reflects the impact of a special dividend that resulted in a one-time increase to net investment income. If the special dividend had not occurred, the ratio of net investment income to average net assets would have been lower by 1.54% and the net investment income per share would have been lower by $0.17 for Class A.

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

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

(E)Not annualized.

(F)Annualized.

 

See accompanying Notes to Financial Statements.

 

 C: 
 68 

 

Financial Highlights (Continued)

 

Touchstone International Equity Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

   Six Months                         
   Ended   Seven Months                     
   December 31,
2018
   Ended
June 30,
   Year Ended November 30, 
   (Unaudited)   2018(A)   2017   2016   2015   2014   2013 
Net asset value at beginning of period  $17.12   $18.46   $14.66   $16.06   $18.71   $19.34   $15.49 
Income (loss) from investment operations:                                   
Net investment income (loss)   (0.06)   0.26(B)   (0.06)   (0.01)(C)   (0.10)(C)   (0.04)(C)   (0.11)(C)
Net realized and unrealized gains (losses) on investments   (1.90)   (0.90)   3.86    (0.90)   0.47    (0.59)   3.97 
Total from investment operations   (1.96)   (0.64)   3.80    (0.91)   0.37    (0.63)   3.86 
Distributions from:                                   
Net investment income   (0.10)               (0.07)       (0.01)
Realized capital gains   (1.87)   (0.70)       (0.49)   (2.95)        
Total distributions   (1.97)   (0.70)       (0.49)   (3.02)       (0.01)
Net asset value at end of period  $13.19   $17.12   $18.46   $14.66   $16.06   $18.71   $19.34 
Total return(D)   (11.59%)(E)   (3.72%)(E)   25.92%   (5.82%)   3.14%   (3.26%)   24.92%
Ratios and supplemental data:                                   
Net assets at end of period (000's)  $5,025   $6,737   $6,924   $5,876   $4,732   $3,581   $3,634 
Ratio to average net assets:                                   
Net expenses   2.21%(F)   2.18%(F)   2.45%   2.49%   2.70%   2.86%   3.04%
Gross expenses   2.28%(F)   2.25%(F)   2.49%   2.49%   2.70%   2.86%   3.04%
Net investment income (loss)   (0.58%)(F)   2.27%(B)(F)   (0.16%)   (0.04%)   (0.60%)   (0.23%)   (0.66%)
Portfolio turnover rate   20%(E)   26%(E)   37%   36%   55%   50%   52%

 

(A)The Fund changed its fiscal year end from November 30 to June 30.

(B)Reflects the impact of a special dividend that resulted in a one-time increase to net investment income. If the special dividend had not occurred, the ratio of net investment income to average net assets would have been lower by 1.54% and the net investment income per share would have been lower by $0.16 for Class C.

(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 and fees. If these charges were included, the returns would be lower.

(E)Not annualized.

(F)Annualized.

 

See accompanying Notes to Financial Statements.

 

 C: 
 69 

 

Financial Highlights (Continued)

 

Touchstone International Equity Fund—Class Y(A)

Selected Data for a Share Outstanding Throughout Each Period

   Six Months                         
   Ended   Seven Months                     
   December 31,
2018
   Ended
June 30,
   Year Ended November 30, 
   (Unaudited)   2018(B)   2017   2016   2015   2014   2013 
Net asset value at beginning of period  $17.93   $19.45   $15.40   $16.79   $19.53   $20.13   $15.99 
Income (loss) from investment operations:                                   
Net investment income   0.07    0.40(C)   0.25    0.23(D)   0.18(D)   0.38(D)   0.26(D)
Net realized and unrealized gains (losses) on investments   (2.03)   (0.93)   3.98    (0.95)   0.47    (0.65)   4.11 
Total from investment operations   (1.96)   (0.53)   4.23    (0.72)   0.65    (0.27)   4.37 
Distributions from:                                   
Net investment income   (0.30)   (0.29)   (0.18)   (0.18)   (0.44)   (0.33)   (0.23)
Realized capital gains   (1.87)   (0.70)       (0.49)   (2.95)        
Total distributions   (2.17)   (0.99)   (0.18)   (0.67)   (3.39)   (0.33)   (0.23)
Net asset value at end of period  $13.80   $17.93   $19.45   $15.40   $16.79   $19.53   $20.13 
Total return   (11.05%)(E)   (3.05%)(E)   27.78%   (4.41%)   4.89%   (1.39%)   27.64%
Ratios and supplemental data:                                   
Net assets at end of period (000's)  $40,546   $57,438   $63,320   $40,528   $14,967   $10,997   $34,561 
Ratio to average net assets:                                   
Net expenses   0.99%(F)   0.99%(F)   1.01%   0.99%   1.02%   0.92%   0.89%
Gross expenses   1.12%(F)   1.09%(F)   1.03%   0.99%   1.02%   0.92%   0.89%
Net investment income   0.64%(F)   3.47%(C)(F)   1.28%   1.45%   1.05%   1.91%   1.48%
Portfolio turnover rate   20%(E)   26%(E)   37%   36%   55%   50%   52%

 

(A)Effective October 28, 2017, Class I shares of the Sentinel International Equity Fund (the “Predecessor Fund”) were reorganized into Class Y shares of the Fund.
(B)The Fund changed its fiscal year end from November 30 to June 30.

(C)Reflects the impact of a special dividend that resulted in a one-time increase to net investment income. If the special dividend had not occurred, the ratio of net investment income to average net assets would have been lower by 1.54% and the net investment income per share would have been lower by $0.17 for Class Y.

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

(E)Not annualized.

(F)Annualized.

 

See accompanying Notes to Financial Statements.

 

 C: 
 70 

 

Financial Highlights (Continued)

 

Touchstone International Equity Fund—Institutional Class

Selected Data for a Share Outstanding Throughout Each Period

   Six Months         
   Ended   Seven Months     
   December 31,   Ended   Period Ended 
   2018   June 30,   November 30, 
   (Unaudited)   2018(A)   2017(B) 
Net asset value at beginning of period  $17.92   $19.46   $18.91 
Income (loss) from investment operations:               
Net investment income   (C)   0.56(D)   0.02 
Net realized and unrealized gains (losses) on investments   (1.95)   (1.09)   0.53 
Total from investment operations   (1.95)   (0.53)   0.55 
Distributions from:               
Net investment income   (0.32)   (0.31)    
Realized capital gains   (1.87)   (0.70)    
Total distributions   (2.19)   (1.01)    
Net asset value at end of period  $13.78   $17.92   $19.46 
Total return   (10.98%)(E)   (3.02%)(E)   2.91%(E)
Ratios and supplemental data:               
Net assets at end of period (000's)  $2,305   $2,260   $3 
Ratio to average net assets:               
Net expenses   0.89%(F)   0.89%(F)   0.89%(F)
Gross expenses   1.26%(F)   1.63%(F)   1921.18%(F)
Net investment income   0.74%(F)   3.57%(D)(F)   1.40%(F)
Portfolio turnover rate   20%(E)   26%(E)   37%

 

(A)The Fund changed its fiscal year end from November 30 to June 30.

(B)Represents the period from commencement of operations (October 30, 2017) through November 30, 2017.

(C)Represents less than $0.005 per share.

(D)Reflects the impact of a special dividend that resulted in a one-time increase to net investment income. If the special dividend had not occurred, the ratio of net investment income to average net assets would have been lower by 1.54% and the net investment income per share would have been lower by $0.16 for Institutional Class.

(E)Not annualized.

(F)Annualized.

 

See accompanying Notes to Financial Statements.

 

 C: 
 71 

 

Financial Highlights (Continued)

 

Touchstone International Growth Opportunities Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period 

   Six Months         
   Ended         
   December 31,   Year Ended   Period Ended 
   2018   June 30,   June 30, 
   (Unaudited)   2018   2017(A) 
Net asset value at beginning of period  $25.12   $22.25   $18.74(B)
Income (loss) from investment operations:               
Net investment loss   (0.07)(C)   (0.01)   (0.01)
Net realized and unrealized gains (losses) on investments   (4.98)   3.34    3.52 
Total from investment operations   (5.05)   3.33    3.51 
Distributions from:               
Realized capital gains   (2.85)   (0.46)    
Net asset value at end of period  $17.22   $25.12   $22.25 
Total return(D)   (20.56%)(E)   15.00%   18.73%(E)
Ratios and supplemental data:               
Net assets at end of period (000's)  $657   $918   $140 
Ratio to average net assets:               
Net expenses   1.24%(F)   1.36%   1.41%(F)
Gross expenses   3.93%(F)   3.75%   42.93%(F)
Net investment loss   (0.64%)(F)   (0.05%)   (0.35%)(F)
Portfolio turnover rate   43%(E)   109%   72%(G)

 

Touchstone International Growth Opportunities Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

   Six Months         
   Ended         
   December 31,   Year Ended   Period Ended 
   2018   June 30,   June 30, 
   (Unaudited)   2018   2017(A) 
Net asset value at beginning of period  $24.76   $22.10   $18.74(B)
Income (loss) from investment operations:               
Net investment loss   (0.16)(C)   (0.11)   (0.19)
Net realized and unrealized gains (losses) on investments   (4.89)   3.23    3.55 
Total from investment operations   (5.05)   3.12    3.36 
Distributions from:               
Realized capital gains   (2.85)   (0.46)    
Net asset value at end of period  $16.86   $24.76   $22.10 
Total return(D)   (20.87%)(E)   14.14%   17.93%(E)
Ratios and supplemental data:               
Net assets at end of period (000's)  $154   $436   $3 
Ratio to average net assets:               
Net expenses   1.99%(F)   2.10%   2.16%(F)
Gross expenses   4.79%(F)   5.06%   237.46%(F)
Net investment loss   (1.39%)(F)   (0.79%)   (1.11%)(F)
Portfolio turnover rate   43%(E)   109%   72%(G)

 

(A)Represents the period from commencement of operations (August 15, 2016) through June 30, 2017.

(B)Net asset value at the beginning of period is based on the net asset value of Institutional Class shares on August 15, 2016.

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

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

(E)Not annualized.

(F)Annualized.

(G)Portfolio turnover excludes the purchases and sales of the DSM Global Growth & Income Fund merger on August 15, 2016. If these transactions were included, portfolio turnover would have been higher.

 

See accompanying Notes to Financial Statements.

 

 C: 
 72 

 

Financial Highlights (Continued)

 

Touchstone International Growth Opportunities Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period

   Six Months         
   Ended         
   December 31,   Year Ended   Period Ended 
   2018   June 30,   June 30, 
   (Unaudited)   2018   2017(A) 
Net asset value at beginning of period  $25.19   $22.25   $18.74(B)
Income (loss) from investment operations:               
Net investment income (loss)   (0.04)(C)   0.02    (—)(D)
Net realized and unrealized gains (losses) on investments   (5.01)   3.38    3.51 
Total from investment operations   (5.05)   3.40    3.51 
Distributions from:               
Net investment income   (0.02)        
Realized capital gains   (2.85)   (0.46)    
Total distributions   (2.87)   (0.46)    
Net asset value at end of period  $17.27   $25.19   $22.25 
Total return   (20.50%)(E)   15.32%   18.73%(E)
Ratios and supplemental data:               
Net assets at end of period (000's)  $2,259   $4,553   $161 
Ratio to average net assets:               
Net expenses   0.99%(F)   1.03%   1.16%(F)
Gross expenses   1.61%(F)   1.81%   51.68%(F)
Net investment income (loss)   (0.39%)(F)   0.28%   (0.10%)(F)
Portfolio turnover rate   43%(E)   109%   72%(G)

 

Touchstone International Growth Opportunities Fund—Institutional Class

Selected Data for a Share Outstanding Throughout Each Period

   Six Months                     
   Ended                     
   December 31, 2018   Year Ended June 30, 
   (Unaudited)   2018   2017   2016   2015   2014 
Net asset value at beginning of period  $25.27   $22.30   $17.60   $19.75   $20.26   $16.38 
Income (loss) from investment operations:                              
Net investment income (loss)   (0.03)(C)   0.07    (0.02)   (0.04)(C)   (0.02)(C)   0.07(C)
Net realized and unrealized gains (losses) on investments   (5.02)   3.36    5.15    (0.73)   1.56    4.48 
Total from investment operations   (5.05)   3.43    5.13    (0.77)   1.54    4.55 
Distributions from:                              
Net investment income   (0.04)               (0.06)    
Realized capital gain   (2.85)   (0.46)   (0.43)   (1.38)   (1.99)   (0.67)
Total distributions   (2.89)   (0.46)   (0.43)   (1.38)   (2.05)   (0.67)
Net asset value at end of period  $17.33   $25.27   $22.30   $17.60   $19.75   $20.26 
Total return   (20.42%)(E)   15.42%   29.63%   (4.06%)   8.52%   28.04%
Ratios and supplemental data:                              
Net assets at end of period (000's)  $29,520   $28,159   $23,956   $6,418   $6,040   $5,015 
Ratio to average net assets:                              
Net expenses   0.89%(F)   1.02%   1.06%   1.15%(H)   1.20%   1.20%
Gross expenses   1.22%(F)   1.31%   1.82%   4.12%   4.54%   5.92%
Net investment income (loss)   (0.29%)(F)   0.28%   (0.14%)   (0.23%)   (0.10%)   0.37%
Portfolio turnover rate   43%(E)   109%   72%(G)   57%   91%   82%

 

 

(A)Represents the period from commencement of operations (August 15, 2016) through June 30, 2017.

(B)Net asset value at the beginning of period is based on the net asset value of Institutional Class shares on August 15, 2016.

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

(D)Less than $0.005 per share.

(E)Not annualized.

(F)Annualized.

(G)Portfolio turnover excludes the purchases and sales of the DSM Global Growth & Income Fund merger on August 15, 2016. If these transactions were included, portfolio turnover would have been higher.
(H)Expense cap was lowered to 1.10% from 1.20% on January 1, 2016.

 

See accompanying Notes to Financial Statements.

 

 C: 
 73 

 

Financial Highlights (Continued)

 

Touchstone International Small Cap Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

   Six Months                     
   Ended                     
   December 31,
2018
   Year Ended June 30, 
   (Unaudited)   2018   2017   2016   2015   2014 
Net asset value at beginning of period  $17.89   $16.78   $14.98   $16.52   $15.48   $12.58 
Income (loss) from investment operations:                            
Net investment income   0.39    0.18    0.10    0.09    0.11    0.11(A)
Net realized and unrealized gains (losses) on investments   (4.03)   1.32    1.84    (1.53)   1.00    3.00 
Total from investment operations   (3.64)   1.50    1.94    (1.44)   1.11    3.11 
Distributions from:                              
Net investment income   (0.18)   (0.39)   (0.14)   (0.10)   (0.07)   (0.21)
Realized capital gains   (1.10)                    
Total distributions   (1.28)                    
Net asset value at end of period  $12.97   $17.89   $16.78   $14.98   $16.52   $15.48 
Total return(B)   (20.53%)(C)   8.85%   13.13%   (8.77%)   7.29%   24.74%
Ratios and supplemental data:                              
Net assets at end of period (000's)  $3,463   $11,727   $16,529   $23,095   $24,635   $10,721 
Ratio to average net assets:                              
Net expenses   1.55%(D)   1.55%   1.55%   1.55%   1.55%   1.55%
Gross expenses   1.90%(D)   1.74%   1.71%   1.66%   1.84%   2.12%
Net investment income   0.05%(D)   0.51%   0.56%   0.59%   0.90%   0.76%
Portfolio turnover rate   55%(C)   94%   89%   90%   84%   60%

 

Touchstone International Small Cap Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

   Six Months                     
   Ended                     
   December 31,
2018
   Year Ended June 30, 
   (Unaudited)   2018   2017   2016   2015   2014 
Net asset value at beginning of period  $17.58   $16.47   $14.67   $16.28   $15.33   $12.54 
Income (loss) from investment operations:                              
Net investment income (loss)   (0.09)   (0.11)   (0.12)   (0.04)   0.06    (A)(E)
Net realized and unrealized gains (losses) on investments   (3.54)   1.44    1.92    (1.49)   0.92    2.99 
Total from investment operations   (3.63)   1.33    1.80    (1.53)   0.98    2.99 
Distributions from:                              
Net investment income   (0.15)   (0.22)       (0.08)   (0.03)   (0.20)
Realized capital gains   (1.10)                    
Total distributions   (1.25)                   (0.20)
Net asset value at end of period  $12.70   $17.58   $16.47   $14.67   $16.28   $15.33 
Total return(B)   (20.83%)(C)   8.04%   12.27%   (9.43%)   6.44%   23.94%
Ratios and supplemental data:                              
Net assets at end of period (000's)  $1,581   $2,498   $2,818   $4,294   $4,120   $613 
Ratio to average net assets:                              
Net expenses   2.30%(D)   2.30%   2.30%   2.30%   2.30%   2.30%
Gross expenses   2.93%(D)   2.81%   2.73%   2.62%   2.92%   7.28%
Net investment income (loss)   (0.70%)(D)   (0.25%)   (0.19%)   (0.16%)   0.15%   0.01%
Portfolio turnover rate   55%(C)   94%   89%   90%   84%   60%

 

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

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

(C)Not annualized.

(D)Annualized.

(E)Less than $0.005 per share.

 

See accompanying Notes to Financial Statements.

 

 C: 
 74 

 

Financial Highlights (Continued)

 

Touchstone International Small Cap Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period

   Six Months                     
   Ended                     
   December 31,                 
   2018    Year Ended June 30, 
   (Unaudited)   2018   2017   2016   2015   2014 
Net asset value at beginning of period  $18.28   $17.21   $15.39   $16.94   $15.86   $12.84 
Income (loss) from investment operations:                              
Net investment income   0.03    0.13    0.17    0.13    0.14    0.16(A)
Net realized and unrealized gains (losses) on investments   (3.73)   1.46    1.85    (1.57)   1.04    3.07 
Total from investment operations   (3.70)   1.59    2.02    (1.44)   1.18    3.23 
Distributions from:                              
Net investment income   (0.23)   (0.52)   (0.20)   (0.11)   (0.10)   (0.21)
Realized capital gains   (1.10)                    
Total distributions   (1.33)                    
Net asset value at end of period  $13.25   $18.28   $17.21   $15.39   $16.94   $15.86 
Total return   (20.39%)(B)   9.17%   13.39%   (8.56%)   7.54%   25.16%
Ratios and supplemental data:                              
Net assets at end of period (000's)  $95,770   $144,173   $146,744   $166,801   $172,477   $120,537 
Ratio to average net assets:                              
Net expenses   1.30%(C)   1.30%(D)   1.30%   1.30%   1.30%   1.25%
Gross expenses   1.34%(C)    1.30%    1.32%   1.32%   1.38%   1.44%
Net investment income   0.30%(C)   0.75%   0.81%   0.84%   1.15%   1.06%
Portfolio turnover rate   55%(B)   94%   89%   90%   84%   60%

 

Touchstone International Small Cap Fund—Institutional Class

Selected Data for a Share Outstanding Throughout Each Period

 

   Six Months                     
   Ended                     
   December 31,                 
   2018    Year Ended June 30,
   (Unaudited)   2018   2017   2016   2015   2014 
Net asset value at beginning of period  $18.37   $17.31   $15.48   $17.02   $15.94   $12.90 
Income (loss) from investment operations:                              
Net investment income   0.02    0.12    0.16    0.12    0.18    0.18(A)
Net realized and unrealized gains (losses) on investments   (3.73)   1.50    1.90    (1.55)   1.02    3.09 
Total from investment operations   (3.71)   1.62    2.06    (1.43)   1.20    3.27 
Distributions from:                              
Net investment income   (0.24)   (0.56)   (0.23)   (0.11)   (0.12)   (0.23)
Realized capital gains   (1.10)                    
Total distributions   (1.34)                   (0.23)
Net asset value at end of period  $13.32   $18.37   $17.31   $15.48   $17.02   $15.94 
Total return   (20.38%)(B)   9.25%   13.56%   (8.43%)   7.65%   25.38%
Ratios and supplemental data:                              
Net assets at end of period (000's)  $108,873   $157,502   $148,937   $197,693   $47,319   $30,223 
Ratio to average net assets:                              
Net expenses   1.18%(C)   1.18%   1.18%   1.18%   1.18%   1.08%
Gross expenses   1.26%(C)   1.22%   1.23%   1.23%   1.30%   1.33%
Net investment income   0.42%(C)   0.87%   0.93%   0.96%   1.27%   1.23%
Portfolio turnover rate   55%(B)   94%   89%   90%   84%   60%

 

(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 recouped by the Advisor.

 

See accompanying Notes to Financial Statements.

 

 C: 
 75 

 

Financial Highlights (Continued)

 

Touchstone Large Cap Focused Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

   Six Months                         
   Ended   Seven Months                     
   December 31,   Ended             
   2018   June 30,   Year Ended November 30, 
   (Unaudited)   2018(A)   2017   2016   2015   2014   2013 
Net asset value at beginning of period  $43.80   $48.75   $42.28   $43.08   $42.79   $43.31   $34.84 
Income (loss) from investment operations:                                   
Net investment income   0.19    0.23    0.45    0.53(B)   1.01(B)   0.56(B)   0.44(B)
Net realized and unrealized gains  (losses) on investments   (2.56)   1.85    8.99    2.43    (0.25)   4.97    9.50 
Total from investment operations   (2.37)   2.08    9.44    2.96    0.76    5.53    9.94 
Distributions from:                                   
Net investment income   (0.27)   (0.07)   (0.51)   (1.08)   (0.45)   (0.58)   (0.43)
Realized capital gains   (4.26)   (6.96)   (2.46)   (2.68)   (0.02)   (5.47)   (1.04)
Total distributions   (4.53)   (7.03)   (2.97)   (3.76)   (0.47)   (6.05)   (1.47)
Net asset value at end of period  $36.90   $43.80   $48.75   $42.28   $43.08   $42.79   $43.31 
Total return(C)   (5.98%)(D)   4.74%(D)   23.67%   7.53%   1.79%   13.30%   29.53%
Ratios and supplemental data:                                   
Net assets at end of period (000's)  $1,048,691   $1,218,721   $1,321,506   $1,350,861   $1,416,147   $1,577,546   $1,454,446 
Ratio to average net assets:                                   
Net expenses (including liquidity  provider expenses)(E)   0.96%(F)   0.97%(F)   1.02%   1.00%   0.99%   1.00%   1.03%
Gross expenses (including liquidity  provider expenses)(G)   1.07%(F)   1.09%(F)   1.02%   1.00%   0.99%   1.00%   1.03%
Net investment income   0.89%(F)   0.88%(F)   0.98%   1.32%   2.36%(H)   1.28%   1.15%
Portfolio turnover rate   10%(D)(I)   9%(D)(I)   12%(I)   8%   11%   19%   12%

 

 

(A)The Fund changed its fiscal year end from November 30 to June 30.

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

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

(D)Not annualized.

(E)The ratio of net expenses to average net assets excluding liquidity provider expenses was 0.95% and 1.02% for the seven months ended June 30, 2018 and the year ended November 30, 2017, respectively. There were no liquidity provider expenses prior to 2017.

(F)Annualized.

(G)The ratio of gross expenses to average net assets excluding liquidity provider expenses was 1.07% and 1.02% for the seven months ended June 30, 2018 and the year ended November 30, 2017, respectively. There were no liquidity provider expenses prior to 2017.

(H)Includes the impact of special dividends resulting from an acquisition of Covidien plc by Medtronic, Inc. on January 26, 2015 through the formation of a new holding company, Medtronic plc, incorporated in Ireland. These special dividends enhanced the ratios of net investment income for Class A shares by 1.22% for the fiscal year ended November 30, 2015.

(I)Portfolio turnover excludes securities delivered from processing redemptions-in-kind.

 

See accompanying Notes to Financial Statements.

 

 C: 
 76 

 

 

Financial Highlights (Continued)

 

Touchstone Large Cap Focused Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

   Six Months                         
   Ended   Seven Months                     
   December 31,   Ended             
   2018   June 30,   Year Ended November 30, 
   (Unaudited)   2018(A)   2017   2016   2015   2014   2013 
Net asset value at beginning of period  $41.29   $46.48   $40.44   $41.36   $41.15   $41.82   $33.70 
Income (loss) from investment operations:             (B)   0.21(C)   0.64(C)   0.21(C)   0.12(C)
Net investment income   0.02    0.03                          
Net realized and unrealized gains  (losses) on investments   (2.40)   1.74    8.67    2.33    (0.24)   4.78    9.18 
Total from investment operations   (2.38)   1.77    8.67    2.54    0.40    4.99    9.30 
Distributions from:                                   
Net investment income           (0.17)   (0.78)   (0.17)   (0.19)   (0.14)
Realized capital gains   (4.26)   (6.96)   (2.46)   (2.68)   (0.02)   (5.47)   (1.04)
Total distributions   (4.26)   (6.96)   (2.63)   (3.46)   (0.19)   (5.66)   (1.18)
Net asset value at end of period  $34.65   $41.29   $46.48   $40.44   $41.36   $41.15   $41.82 
Total return(D)   (6.37%)(E)   4.24%(E)   22.69%   6.71%   0.98%   12.40%   28.47%
Ratios and supplemental data:                                   
Net assets at end of period (000's)  $57,523   $67,599   $74,122   $83,246   $89,890   $90,784   $78,259 
Ratio to average net assets:                                   
Net expenses (including liquidity  provider expenses)(F)   1.77%(G)   1.78%(G)   1.82%   1.79%   1.78%   1.79%   1.84%
Gross expenses (including liquidity  provider expenses)(H)   1.88%(G)   1.89%(G)   1.82%   1.79%   1.78%   1.79%   1.84%
Net investment income   0.09%(G)   0.07%(G)   0.18%   0.54%   1.57%(I)   0.50%   0.32%
Portfolio turnover rate   10%(E)(J)   9%(E)(J)   12%(J)   8%   11%   19%   12%

 

(A)The Fund changed its fiscal year end from November 30 to June 30.
(B)Represents less than $0.005 per share.

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

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

(E)Not annualized.

(F)The ratio of net expenses to average net assets excluding liquidity provider expenses was 1.76% and 1.82% for the seven months ended June 30, 2018 and the year ended November 30, 2017, respectively. There were no liquidity provider expenses prior to 2017.

(G)Annualized.

(H)The ratio of gross expenses to average net assets excluding liquidity provider expenses was 1.87% and 1.82% for the seven months ended June 30, 2018 and the year ended November 30, 2017, respectively. There were no liquidity provider expenses prior to 2017.

(I)Includes the impact of special dividends resulting from an acquisition of Covidien plc by Medtronic, Inc. on January 26, 2015 through the formation of a new holding company, Medtronic plc, incorporated in Ireland. These special dividends enhanced the ratios of net investment income for Class C shares by 1.22% for the fiscal year ended November 30, 2015.

(J)Portfolio turnover excludes securities delivered from processing redemptions-in-kind.

 

See accompanying Notes to Financial Statements.

 

 C: 
 77 

 

 

Financial Highlights (Continued)

 

Touchstone Large Cap Focused Fund— Class Y(A)

Selected Data for a Share Outstanding Throughout Each Period 

   Six Months                         
   Ended   Seven Months                     
   December 31,   Ended     
   2018   June 30,   Year Ended November 30, 
   (Unaudited)   2018(B)   2017   2016   2015   2014   2013 
Net asset value at beginning of period  $43.68   $48.72   $42.26   $43.06   $42.76   $43.31   $34.85 
Income (loss) from investment operations:                                   
Net investment income   0.24    0.29    0.56    0.64(C)   1.12(C)   0.68(C)   0.56(C)
Net realized and unrealized gains  (losses) on investments   (2.55)   1.84    8.99    2.43    (0.25)   4.97    9.50 
Total from investment operations   (2.31)   2.13    9.55    3.07    0.87    5.65    10.06 
Distributions from:                                   
Net investment income   (0.37)   (0.21)   (0.63)   (1.19)   (0.55)   (0.73)   (0.56)
Realized capital gains   (4.26)   (6.96)   (2.46)   (2.68)   (0.02)   (5.47)   (1.04)
Total distributions   (4.63)   (7.17)   (3.09)   (3.87)   (0.57)   (6.20)   (1.60)
Net asset value at end of period  $36.74   $43.68   $48.72   $42.26   $43.06   $42.76   $43.31 
Total return   (5.85%)(D)   4.85%(D)   24.03%   7.84%   2.07%   13.61%   29.93%
Ratios and supplemental data:                                   
Net assets at end of period (000's)  $363,007   $394,077   $438,732   $552,611   $689,502   $932,941   $941,223 
Ratio to average net assets:                                   
Net expenses (including liquidity  provider expenses)(E)   0.72%(F)   0.74%(F)   0.74%   0.72%   0.71%   0.72%   0.72%
Gross expenses (including liquidity  provider expenses)(G)   0.88%(F)   0.90%(F)   0.75%   0.72%   0.71%   0.72%   0.72%
Net investment income   1.13%(F)   1.11%(F)   1.26%   1.60%   2.63%(H)   1.55%   1.45%
Portfolio turnover rate   10%(D)(I)   9%(D)(I)   12%(I)   8%   11%   19%   12%

 

(A)Effective October 28, 2017, Class I shares of the Sentinel Common Stock Fund (the “Predecessor Fund”) were reorganized into Class Y shares of the Fund.
(B)The Fund changed its fiscal year end from November 30 to June 30.

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

(D)Not annualized.

(E)The ratio of net expenses to average net assets excluding liquidity provider expenses was 0.72% and 0.74% for the seven months ended June 30, 2018 and the year ended November 30, 2017, respectively. There were no liquidity provider expenses prior to 2017.

(F)Annualized.

(G)The ratio of gross expenses to average net assets excluding liquidity provider expenses was 0.88% and 0.75% for the seven months ended June 30, 2018 and the year ended November 30, 2017, respectively. There were no liquidity provider expenses prior to 2017.

(H)Includes the impact of special dividends resulting from an acquisition of Covidien plc by Medtronic, Inc. on January 26, 2015 through the formation of a new holding company, Medtronic plc, incorporated in Ireland. These special dividends enhanced the ratios of net investment income for Class Y shares by 1.22%, for the fiscal year ended November 30, 2015.

(I)Portfolio turnover excludes securities delivered from processing redemptions-in-kind.

 

See accompanying Notes to Financial Statements.

 

 C: 
 78 

 

 

 Financial Highlights (Continued)

 

Touchstone Large Cap Focused Fund — Institutional Class(A)

Selected Data for a Share Outstanding Throughout Each Period

   Six Months                 
   Ended   Seven Months             
   December 31,   Ended           Period Ended 
   2018   June 30,   Year Ended November 30,   November 30, 
   (Unaudited)   2018(B)   2017   2016   2015(C) 
Net asset value at beginning of period  $43.75   $48.81   $42.32   $43.11   $43.01 
Income (loss) from investment operations:                         
Net investment income   0.17    0.34    0.61    0.70(D)   1.07(D)
Net realized and unrealized gains (losses) on investments   (2.47)   1.80    9.01    2.41    (0.51)
Total from investment operations   (2.30)   2.14    9.62    3.11    0.56 
Distributions from:                         
Net investment income   (0.40)   (0.24)   (0.67)   (1.22)   (0.46)
Realized capital gains   (4.26)   (6.96)   (2.46)   (2.68)    
Total distributions   (4.66)   (7.20)   (3.13)   (3.90)   (0.46)
Net asset value at end of period  $36.79   $43.75   $48.81   $42.32   $43.11 
Total return   (5.82%)(E)   4.93%(E)   24.14%   7.92%   1.31%(E)
Ratios and supplemental data:                         
Net assets at end of period (000's)  $69,846   $46,683   $44,738   $29,927   $18,225 
Ratio to average net assets:                         
Net expenses (including liquidity provider expenses)(F)   0.65%(G)   0.67%(G)   0.68%   0.65%   0.61%(G)
Gross expenses (including liquidity provider expenses)(H)   0.83%(G)   0.88%(G)   0.70%   0.72%   1.76%(G)
Net investment income   1.20%(G)   1.18%(G)   1.32%   1.72%   2.65%(G)(I)
Portfolio turnover rate   10%(E)(J)   9%(E)(J)   12%(J)   8%   11%

 

(A)Effective October 30, 2017, Class R6 shares of the Predecessor Fund were reorganized into Institutional Class shares of the Fund.

(B)The Fund changed its fiscal year end from November 30 to June 30.

(C)Represents the period from commencement of operations (December 23, 2014) through November 30, 2015.

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

(E)Not annualized.

(F)The ratio of net expenses to average net assets excluding liquidity provider expenses was 0.65% and 0.68% for the seven months ended June 30, 2018 and the year ended November 30, 2017, respectively. There were no liquidity provider expenses prior to 2017.

(G)Annualized.

(H)The ratio of gross expenses to average net assets excluding liquidity provider expenses was 0.86% and 0.70% for the seven months ended June 30, 2018 and the year ended November 30, 2017, respectively. There were no liquidity provider expenses prior to 2017.

(I)Includes the impact of special dividends resulting from an acquisition of Covidien plc by Medtronic, Inc. on January 26, 2015 through the formation of a new holding company, Medtronic plc, incorporated in Ireland. These special dividends enhanced the ratios of net investment income for Institutional Class shares by 1.30%, for the fiscal year ended November 30, 2015.

(J)Portfolio turnover excludes securities delivered from processing redemptions-in-kind.

 

See accompanying Notes to Financial Statements.

 

 C: 
 79 

 

 

Financial Highlights (Continued)

 

Touchstone Large Cap Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

   Six Months                 
   Ended                 
   December 31,               Period Ended 
   2018   Year Ended June 30,   June 30, 
   (Unaudited)   2018   2017   2016   2015(A) 
Net asset value at beginning of period  $13.27   $11.96   $10.49   $10.65   $10.00 
Income (loss) from investment operations:                       
Net investment income   0.02    0.09    0.06    0.08     0.09(B) 
Net realized and unrealized gains (losses) on investments   (0.77)   1.27    1.49    (0.18)   0.57 
Total from investment operations   (0.75)   1.36    1.55    (0.10)   0.66 
Distributions from:                         
Net investment income   (0.08)   (0.05)   (0.08)   (0.06)   (0.01)
Net asset value at end of period  $12.44   $13.27   $11.96   $10.49   $10.65 
Total return(C)   (5.63%)(D)   11.35%   14.82%   (0.92%)   6.57%(D)
Ratios and supplemental data:                         
Net assets at end of period (000's)  $2,829   $2,975   $5,368   $3,657   $2,013 
Ratio to average net assets:                     
Net expenses   1.12%(E)    1.12 %   1.12 %    1.12%   1.12%(E)
Gross expenses   1.68%(E)   1.50%   1.57%   1.68%   4.17%(E)
Net investment income   0.33%(E)   0.48%   0.56%   0.87%   0.81%(E)
Portfolio turnover rate   9%(D)(F)   10%   23%   33%   8%(D)(G)

 

Touchstone Large Cap Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

 

   Six Months                 
   Ended                
   December 31,               Period Ended 
   2018   Year Ended June 30,   June 30, 
   (Unaudited)   2018   2017   2016   2015(A) 
Net asset value at beginning of period  $13.04   $11.80   $10.37   $10.60   $10.00 
Income (loss) from investment operations:                         
Net investment income (loss)   (0.02)   (0.04)   (0.02)   0.02    0.01(B)
Net realized and unrealized gains (losses) on investments   (0.76)   1.28    1.47    (0.20)   0.59 
Total from investment operations   (0.78)   1.24    1.45    (0.18)   0.60 
Distributions from:                         
Net investment income           (0.02)   (0.05)    
Net asset value at end of period  $12.26   $13.04   $11.80   $10.37   $10.60 
Total return(C)   (5.98%)(D)   10.51%   13.98%   (1.72%)   6.00%(D)
Ratios and supplemental data:                         
Net assets at end of period (000's)  $7,847   $7,849   $8,102   $6,124   $1,370 
Ratio to average net assets:                         
Net expenses   1.87%(E)   1.87%   1.87%   1.87%   1.87%(E)
Gross expenses   2.10%(E)   2.12%   2.12%   2.39%   4.34%(E)
Net investment income (loss)   (0.42%)(E)   (0.27%)   (0.19%)   0.12%   0.06%(E)
Portfolio turnover rate   9%(D)(F)   10%   23%   33%   8%(D)(G)

 

(A)Represents the period from commencement of operations (July 10, 2014) through June 30, 2015.
(B)The net investment income per share was based on average shares outstanding for the period.

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

(D)Not annualized.

(E)Annualized.

(F)Portfolio turnover excludes securities delivered from processing redemptions-in-kind.

(G)Portfolio turnover excludes the purchases and sales of the Touchstone Capital Growth Fund acquired on June 26, 2015. If these transactions were included, portfolio turnover would have been higher.

 

See accompanying Notes to Financial Statements.

 

 C: 
 80 

 

  

Financial Highlights (Continued)

 

Touchstone Large Cap Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period

   Six Months                 
   Ended                 
   December 31,               Period Ended 
   2018   Year Ended June 30,   June 30, 
   (Unaudited)   2018   2017   2016   2015(A) 
Net asset value at beginning of period  $13.31   $12.00   $10.52   $10.67   $10.00 
Income (loss) from investment operations:                         
Net investment income   0.05    0.10    0.09    0.11    0.11(B)
Net realized and unrealized gains  (losses) on investments   (0.78)   1.30    1.49    (0.19)   0.57 
Total from investment operations   (0.73)   1.40    1.58    (0.08)   0.68 
Distributions from:                         
Net investment income   (0.13)   (0.09)   (0.10)   (0.07)   (0.01)
Net asset value at end of period  $12.45   $13.31   $12.00   $10.52   $10.67 
Total return   (5.51%)(C)   11.62%   15.13%   (0.70%)   6.80%(C)
Ratios and supplemental data:                         
Net assets at end of period (000's)  $207,834   $231,984   $222,080   $208,463   $194,226 
Ratio to average net assets:                     
Net expenses   0.87%(D)   0.87%    0.87%    0.87%   0.87%(D)
Gross expenses   0.99%(D)   0.99%   1.01%   1.04%   1.19%(D)
Net investment income   0.58%(D)   0.73%   0.81%   1.11%   1.06%(D)
Portfolio turnover rate   9%(C)(E)   10%   23%   33%   8%(C)(F)

 

Touchstone Large Cap Fund—Institutional Class

Selected Data for a Share Outstanding Throughout Each Period

 

   Six Months                 
   Ended                 
   December 31,               Period Ended 
   2018   Year Ended June 30,   June 30, 
   (Unaudited)   2018   2017   2016   2015(A) 
Net asset value at beginning of period  $13.33   $12.02   $10.53   $10.68   $10.00 
Income (loss) from investment operations:                         
Net investment income   0.19    0.10    0.11    0.13    0.12(B)
Net realized and unrealized gains (losses) on investments   (0.92)   1.31    1.49    (0.20)   0.57 
Total from investment operations   (0.73)   1.41    1.60    (0.07)   0.69 
Distributions from:                         
Net investment income   (0.14)   (0.10)   (0.11)   (0.08)   (0.01)
Net asset value at end of period  $12.46   $13.33   $12.02   $10.53   $10.68 
Total return   (5.47%)(C)   11.70%   15.31%   (0.66%)   6.92%(C)
Ratios and supplemental data:                         
Net assets at end of period (000's)  $57,233   $124,759   $97,888   $87,032   $98,889 
Ratio to average net assets:                         
Net expenses   0.77%(D)   0.77%   0.77%   0.77%   0.77%(D)
Gross expenses   0.91%(D)   0.91%   0.91%   0.93%   0.98%(D)
Net investment income   0.68%(D)   0.83%   0.91%   1.21%   1.16%(D)
Portfolio turnover rate   9%(C)(E)   10%   23%   33%   8%(C)(F)

 

(A)Represents the period from commencement of operations (July 10, 2014) through June 30, 2015.
(B)The net investment income per share was based on average shares outstanding for the period.

(C)Not annualized.

(D)Annualized.

(E)Portfolio turnover excludes securities delivered from processing redemptions-in-kind.

(F)Portfolio turnover excludes the purchases and sales of the Touchstone Capital Growth Fund acquired on June 26, 2015. If these transactions were included, portfolio turnover would have been higher.

 

See accompanying Notes to Financial Statements.

 

 C: 
 81 

 

 

Financial Highlights (Continued)

 

Touchstone Large Company Growth Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

   Six Months         
   Ended         
   December 31,   Year Ended   Period Ended 
   2018   June 30,   June 30, 
   (Unaudited)   2018   2017(A) 
Net asset value at beginning of period  $41.33   $35.52   $31.38(B)
Income (loss) from investment operations:               
Net investment loss   (0.12)(C)   (0.24)   (0.19)(C)
Net realized and unrealized gains (losses) on investments   (4.10)   7.19    5.41 
Total from investment operations   (4.22)   6.95    5.22 
Distributions from:               
Realized capital gains   (2.69)   (1.14)   (1.08)
Net asset value at end of period  $34.42   $41.33   $35.52 
Total return(D)   (10.60%)(E)   19.75%   17.31%(E)
Ratios and supplemental data:               
Net assets at end of period (000's)  $1,076   $3,417   $140 
Ratio to average net assets:               
Net expenses   1.23%(F)   1.23%   1.23%(F)
Gross expenses   1.76%(F)   1.67%   11.14%(F)
Net investment loss   (0.56%)(F)   (0.63%)   (0.68%)(F)
Portfolio turnover rate   40%(E)   44%   55%

 

Touchstone Large Company Growth Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

 

   Six Months         
   Ended         
   December 31,   Year Ended   Period Ended 
   2018   June 30,   June 30, 
   (Unaudited)   2018   2017(A) 
Net asset value at beginning of period  $40.74   $35.29   $31.38(B)
Income (loss) from investment operations:               
Net investment loss   (0.26)(C)   (0.30)   (0.38)(C)
Net realized and unrealized gains (losses) on investments   (4.04)   6.89    5.37 
Total from investment operations   (4.30)   6.59    4.99 
Distributions from:               
Realized capital gains   (2.69)   (1.14)   (1.08)
Net asset value at end of period  $33.75   $40.74   $35.29 
Total return(D)   (10.95%)(E)   18.88%   16.52%(E)
Ratios and supplemental data:               
Net assets at end of period (000's)  $714   $236   $31 
Ratio to average net assets:               
Net expenses   1.98%(F)   1.98%   1.98%(F)
Gross expenses   4.99%(F)   8.12%   257.02%(F)
Net investment loss   (1.31%)(F)   (1.38%)   (1.43%)(F)
Portfolio turnover rate   40%(E)   44%   55%

 

(A)Represents the period from commencement of operations (August 15, 2016) through June 30, 2017.

(B)Net asset value at the beginning of period is based on the net asset value of Institutional Class shares on August 15, 2016.

(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 and fees. If these charges were included, the returns would be lower.

(E)Not annualized.

(F)Annualized.

 

See accompanying Notes to Financial Statements.

 

 C: 
 82 

 

 

Financial Highlights (Continued)

 

Touchstone Large Company Growth Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period

   Six Months         
   Ended         
   December 31,   Year Ended   Period Ended 
   2018   June 30,   June 30, 
   (Unaudited)   2018   2017(A) 
Net asset value at beginning of period  $41.53   $35.60   $31.38(B)
Income (loss) from investment operations:         
Net investment loss   (0.06)(C)   (0.13)   (0.12)(C)
Net realized and unrealized gains (losses) on investments   (4.14)   7.20    5.42 
Total from investment operations   (4.20)   7.07    5.30 
Distributions from:               
Realized capital gains   (2.69)   (1.14)   (1.08)
Net asset value at end of period  $34.64   $41.53   $35.60 
Total return   (10.48%)(D)   20.02%   17.57%(D)
Ratios and supplemental data:               
Net assets at end of period (000's)  $14,658   $15,961   $9,938 
Ratio to average net assets:           
Net expenses   0.98%(E)   0.98%   0.98%(E)
Gross expenses   1.12%(E)   1.12%   1.12%(E)
Net investment loss   (0.31%)(E)   (0.38%)   (0.42%)(E)
Portfolio turnover rate   40%(D)   44%   55%

 

Touchstone Large Company Growth Fund—Institutional Class

Selected Data for a Share Outstanding Throughout Each Period

 

   Six Months                     
   Ended                     
   December 31,                 
   2018   Year Ended June 30, 
   (Unaudited)   2018   2017   2016   2015   2014 
Net asset value at beginning of period  $41.61   $35.63   $29.15   $33.17   $29.67   $24.25 
Income (loss) from investment operations:                              
Net investment loss   (0.04)(C)   (0.11)   (0.12)(C)   (0.14)(C)   (0.08)(C)   (0.01)(C)
Net realized and unrealized gains (losses) on investments   (4.15)   7.23    7.68    (1.45)   4.61    6.08 
Total from investment operations   (4.19)   7.12    7.56    (1.59)   4.53    6.07 
Distributions from:                              
Net investment income                       (0.03)
Realized capital gains   (2.69)   (1.14)   (1.08)   (2.43)   (1.03)   (0.62)
Total distributions   (2.69)   (1.14)   (1.08)   (2.43)   (1.03)   (0.65)
Proceeds from redemption fees collected               (F)        
Net asset value at end of period  $34.73   $41.61   $35.63   $29.15   $33.17   $29.67 
Total return   (10.45%)(D)   20.17%   26.67%   (5.08%)   15.59%   25.19%
Ratios and supplemental data:                              
Net assets at end of period (000's)  $169,731   $224,379   $189,444   $180,104   $196,084   $152,569 
Ratio to average net assets:                              
Net expenses   0.88%(E)   0.88%   0.89%   0.95%   0.95%   0.95%
Gross expenses   0.99%(E)   0.98%   1.02%   1.00%   1.00%   1.07%
Net investment loss   (0.21%)(E)   (0.28%)   (0.39%)   (0.46%)   (0.25%)   (0.04%)
Portfolio turnover rate   40%(D)   44%   55%   57%   80%   56%

 

(A)Represents the period from commencement of operations (August 15, 2016) through June 30, 2017.

(B)Net asset value at the beginning of period is based on the net asset value of Institutional Class shares on August 15, 2016.

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

(D)Not annualized.

(E)Annualized.

(F)Proceeds from redemption fees are related to the DSM Large Cap Growth Fund, the Predecessor Fund, and are less than $0.005 per share.

 

See accompanying Notes to Financial Statements.

 

 C: 
 83 

 

 

Financial Highlights (Continued)

 

Touchstone Ohio Tax-Free Bond Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

   Six Months                     
   Ended                     
   December 31,                 
   2018   Year Ended June 30, 
   (Unaudited)   2018   2017   2016   2015   2014 
Net asset value at beginning of period  $11.33   $11.55   $12.04   $11.70   $11.76   $11.47 
Income (loss) from investment operations:                              
Net investment income   0.17    0.33    0.35    0.36    0.38    0.39 
Net realized and unrealized gains  (losses) on investments   (0.02)   (0.22)   (0.47)   0.36    (0.06)   0.33 
Total from investment operations   0.15    0.11    (0.12)   0.72    0.32    0.72 
Distributions from:                              
Net investment income   (0.17)   (0.33)   (0.35)   (0.36)   (0.38)   (0.39)
Realized capital gains           (0.02)   (0.02)       (0.04)
Total distributions   (0.17)   (0.33)   (0.37)   (0.38)   (0.38)   (0.43)
Net asset value at end of period  $11.31   $11.33   $11.55   $12.04   $11.70   $11.76 
Total return(A)   1.22%(B)   0.99%   (1.03%)   6.25%   2.72%   6.41%
Ratios and supplemental data:                              
Net assets at end of period (000's)  $32,673   $35,728   $42,818   $52,599   $47,153   $44,939 
Ratio to average net assets:                              
Net expenses   0.85%(C)   0.85%   0.85%   0.85%   0.85%   0.85%
Gross expenses   1.14%(C)   1.13%   1.13%   1.13%   1.09%   1.10%
Net investment income   2.94%(C)   2.91%   2.98%   3.05%   3.20%   3.42%
Portfolio turnover rate   27%(B)   47%   34%   27%   23%   25%

 

Touchstone Ohio Tax-Free Bond Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

 

   Six Months                     
   Ended                     
   December 31,                 
   2018   Year Ended June 30, 
   (Unaudited)   2018   2017   2016   2015   2014 
Net asset value at beginning of period  $11.33   $11.57   $12.06   $11.72   $11.78   $11.48 
Income (loss) from investment operations:                              
Net investment income   0.12    0.25    0.26    0.27    0.29    0.31 
Net realized and unrealized gains  (losses) on investments   (0.02)   (0.24)   (0.47)   0.36    (0.06)   0.34 
Total from investment operations   0.10    0.01    (0.21)   0.63    0.23    0.65 
Distributions from:                              
Net investment income   (0.12)   (0.25)   (0.26)   (0.27)   (0.29)   (0.31)
Realized capital gains           (0.02)   (0.02)       (0.04)
Total distributions   (0.12)   (0.25)   (0.28)   (0.29)   (0.29)   (0.35)
Net asset value at end of period  $11.31   $11.33   $11.57   $12.06   $11.72   $11.78 
Total return(A)   0.93%(B)   0.06%   (1.77%)   5.45%   1.96%   5.70%
Ratios and supplemental data:                              
Net assets at end of period (000's)  $4,977   $5,363   $6,515   $7,320   $7,266   $7,333 
Ratio to average net assets:                              
Net expenses   1.60%(C)   1.60%   1.60%   1.60%   1.60%   1.60%
Gross expenses   2.02%(C)   2.01%   2.03%   2.09%   1.93%   2.01%
Net investment income   2.19%(C)   2.16%   2.23%   2.30%   2.45%   2.67%
Portfolio turnover rate   27%(B)   47%   34%   27%   23%   25%

 

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

 

See accompanying Notes to Financial Statements.

 

 C: 
 84 

 

 

Financial Highlights (Continued)

 

Touchstone Ohio Tax-Free Bond Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period

   Six Months         
   Ended         
   December 31,   Year Ended   Period Ended 
   2018   June 30,   June 30, 
   (Unaudited)   2018   2017(A) 
Net asset value at beginning of period  $11.33   $11.56   $12.00(B)
Income (loss) from investment operations:               
Net investment income   0.18    0.29    0.38 
Net realized and unrealized losses on investments   (0.02)   (0.16)   (0.49)
Total from investment operations   0.16    0.13    (0.11)
Distributions from:               
Net investment income   (0.18)   (0.36)   (0.31)
Realized capital gains           (0.02)
Total distributions   (0.18)   (0.36)   (0.33)
Net asset value at end of period  $11.31   $11.33   $11.56 
Total return   1.44%(C)   1.15%   (0.90%)(C)
Ratios and supplemental data:               
Net assets at end of period (000's)  $5,679   $4,596   $2 
Ratio to average net assets:               
Net expenses   0.60%(D)   0.60%   0.60%(D)
Gross expenses   0.96%(D)   1.16%   298.27%(D)
Net investment income   3.19%(D)   3.16%   4.00%(D)
Portfolio turnover rate   27%(C)   47%   34%

 

Touchstone Ohio Tax-Free Bond Fund—Institutional Class

Selected Data for a Share Outstanding Throughout Each Period

 

   Six Months         
   Ended         
   December 31,   Year Ended   Period Ended 
   2018   June 30,   June 30, 
   (Unaudited)   2018   2017(A) 
Net asset value at beginning of period  $11.33   $11.56   $12.00(B)
Income (loss) from investment operations:               
Net investment income   0.18    0.30    0.39 
Net realized and unrealized losses on investments   (0.02)   (0.16)   (0.50)
Total from investment operations   0.16    0.14    (0.11)
Distributions from:               
Net investment income   (0.18)   (0.37)   (0.31)
Realized capital gains           (0.02)
Total distributions   (0.18)   (0.37)   (0.33)
Net asset value at end of period  $11.31   $11.33   $11.56 
Total return   1.46%(C)   1.18%   (0.90%)(C)
Ratios and supplemental data:               
Net assets at end of period (000's)  $3,797   $560   $2 
Ratio to average net assets:               
Net expenses   0.55%(D)   0.55%   0.55%(D)
Gross expenses   0.99%(D)   2.54%   298.26%(D)
Net investment income   3.24%(D)   3.21%   4.04%(D)
Portfolio turnover rate   27%(C)   47%   34%

 

(A)Represents the period from commencement of operations (August 31, 2016) through December 31, 2017.
(B)Net asset value at the beginning of period is based on the net asset value of Class A shares on August 31, 2016.
(C)Not annualized.
(D)Annualized.

 

See accompanying Notes to Financial Statements.

 

 C: 
 85 

 

 

Financial Highlights (Continued)

 

Touchstone Small Company Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

   Six Months                         
   Ended   Seven Months                     
   December 31,   Ended             
   2018   June 30,   Year Ended November 30, 
   (Unaudited)   2018(A)   2017   2016   2015   2014   2013 
Net asset value at beginning of period  $5.53   $5.64   $5.19   $5.58   $7.19   $8.52   $7.96 
Income (loss) from investment operations:                                   
Net investment income (loss)   (0.01)   (0.01)   (0.02)   (0.02)(B)   (0.03)(B)   (B)(C)    (0.02)(B)
Net realized and unrealized gains (losses) on investments   (0.70)   0.37    0.89    0.57    0.26    0.38    2.25 
Total from investment operations   (0.71)   0.36    0.87    0.55    0.23    0.38    2.23 
Distributions from:                                   
Realized capital gains   (0.62)   (0.47)   (0.42)   (0.94)   (1.84)   (1.71)   (1.67)
Net asset value at end of period  $4.20   $5.53   $5.64   $5.19   $5.58   $7.19   $8.52 
Total return(D)   (13.68%)(E)   6.89%(E)   17.95%   12.52%   5.32%   5.40%   34.79%
Ratios and supplemental data:                                   
Net assets at end of period (000's)  $525,768   $661,866   $677,055   $685,807   $596,864   $682,481   $808,145 
Ratio to average net assets:                                   
Net expenses   1.11%(F)   1.10%(F)   1.18%   1.22%   1.25%   1.20%   1.21%
Gross expenses   1.18%(F)   1.18%(F)   1.18%   1.22%   1.25%   1.20%   1.21%
Net investment income (loss)   (0.22%)(F)   (0.26%)(F)   (0.49%)   (0.38%)   (0.61%)   0.06%   (0.24%)
Portfolio turnover rate   47%(E)(G)(H)   30%(E)   82%   61%   70%   59%   23%

  

Touchstone Small Company Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

 

   Six Months                         
   Ended   Seven Months                     
   December 31,   Ended             
   2018   June 30,   Year Ended November 30, 
   (Unaudited)   2018(A)   2017   2016   2015   2014   2013 
Net asset value at beginning of period  $3.23   $3.50   $3.39   $4.01   $5.72   $7.17   $6.99 
Income (loss) from investment operations:                                   
Net investment loss   (0.01)   (0.02)   (0.10)   (0.03)(B)   (0.05)(B)   (0.04)(B)   (0.06)(B)
Net realized and unrealized gains (losses) on investments   (0.40)   0.22    0.63    0.35    0.18    0.30    1.91 
Total from investment operations   (0.41)   0.20    0.53    0.32    0.13    0.26    1.85 
Distributions from:                                   
Realized capital gains   (0.62)   (0.47)   (0.42)   (0.94)   (1.84)   (1.71)   (1.67)
Net asset value at end of period  $2.20   $3.23   $3.50   $3.39   $4.01   $5.72   $7.17 
Total return(D)   (14.14%)(E)   6.51%(E)   17.36%   11.48%   4.72%   4.55%   33.94%
Ratios and supplemental data:                                   
Net assets at end of period (000's)  $77,376   $97,136   $104,051   $110,842   $108,192   $115,642   $128,521 
Ratio to average net assets:                                   
Net expenses   1.86%(F)   1.85%(F)   1.92%   1.95%   1.94%   1.91%   1.93%
Gross expenses   1.93%(F)   1.93%(F)   1.92%   1.95%   1.94%   1.91%   1.93%
Net investment loss   (0.97%)(F)   (1.02%)(F)   (1.23%)   (1.10%)   (1.30%)   (0.66%)   (0.97%)
Portfolio turnover rate   47%(E)(G)(H)   30%(E)   82%   61%   70%   59%   23%

 

 

(A)The Fund changed its fiscal year end from November 30 to June 30.
(B)The net investment income (loss) per share was based on average shares outstanding for the period.
(C)Less than $0.005 per share.
(D)Total returns shown exclude the effect of applicable sales loads and fees. If these charges were included, the returns would be lower.
(E)Not annualized.
(F)Annualized.
(G)Portfolio turnover excludes the purchases and sales of securities by the Touchstone Small Cap Growth Fund acquired on September 21, 2018 (See Note 9 in the Notes to Financial Statements). If these transactions were included, portfolio turnover would have been higher.
(H)Portfolio turnover excludes securities delivered from processing redemptions-in-kind.

 

See accompanying Notes to Financial Statements.

 

 C: 
 86 

 

 

Financial Highlights (Continued)

 

Touchstone Small Company Fund—Class Y(A)

Selected Data for a Share Outstanding Throughout Each Period

   Six Months                         
   Ended   Seven Months                     
   December 31,   Ended             
   2018   June 30,   Year Ended November 30, 
   (Unaudited)   2018(B)   2017   2016   2015   2014   2013 
Net asset value at beginning of period  $6.04   $6.10   $5.56   $5.89   $7.48   $8.78   $8.16 
Income (loss) from investment operations:                                   
Net investment income (loss)   (C)   (—)(C)   (0.06)   (—)(C)(D)   (0.01)(D)   0.03(D)   0.01(D)
Net realized and unrealized gains (losses) on investments   (0.78)   0.41    1.02    0.61    0.28    0.38    2.32 
Total from investment operations   (0.78)   0.41    0.96    0.61    0.27    0.41    2.33 
Distributions from:                                   
Net investment income   (—)(C)                (0.02)       (0.04)
Realized capital gains   (0.62)   (0.47)   (0.42)   (0.94)   (1.84)   (1.71)   (1.67)
Total distributions   (0.62)   (0.47)   (0.42)   (0.94)   (1.86)   (1.71)   (1.71)
Net asset value at end of period  $4.64   $6.04   $6.10   $5.56   $5.89   $7.48   $8.78 
Total return   (13.63%)(E)   7.21%(E)   18.41%   12.95%   5.71%   5.62%   35.40%
Ratios and supplemental data:                                   
Net assets at end of period (000's)  $322,638   $383,050   $388,404   $257,483   $220,543   $247,639   $385,692 
Ratio to average net assets:                                   
Net expenses   0.84%(F)   0.84%(F)   0.85%   0.89%   0.87%   0.85%   0.81%
Gross expenses   0.91%(F)   0.92%(F)   0.85%   0.89%   0.87%   0.85%   0.81%
Net investment income (loss)   0.04%(F)   (0.01%)(F)   (0.16%)   (0.04%)   (0.24%)   0.46%   0.17%
Portfolio turnover rate   47%(E)(G)(H)   30%(E)   82%   61%   70%   59%   23%

 

(A)Effective October 28, 2017, Class I shares of the Sentinel Small Company Fund (the “Predecessor Fund”) were reorganized into Class Y shares of the Fund.
(B)The Fund changed its fiscal year end from November 30 to June 30.
(C)Less than $0.005 per share.
(D)The net investment income (loss) per share was based on average shares outstanding for the period.
(E)Not annualized.
(F)Annualized.
(G)Portfolio turnover excludes the purchases and sales of securities by the Touchstone Small Cap Growth Fund acquired on September 21, 2018 (See Note 9 in the Notes to Financial Statements). If these transactions were included, portfolio turnover would have been higher.
(H)Portfolio turnover excludes securities delivered from processing redemptions-in-kind.

 

See accompanying Notes to Financial Statements.

 

 C: 
 87 

 

 

Financial Highlights (Continued)

 

Touchstone Small Company Fund—Institutional Class

Selected Data for a Share Outstanding Throughout Each Period

   Six Months         
   Ended   Seven Months     
   December 31,   Ended   Period Ended 
   2018   June 30,   November 30, 
   (Unaudited)   2018(A)   2017(B) 
Net asset value at beginning of period  $6.04   $6.10   $5.80 
Income (loss) from investment operations:               
Net investment income (loss)   (C)   (C)   (—)(C)
Net realized and unrealized gains (losses) on investments   (0.79)   0.41    0.30 
Total from investment operations   (0.79)   0.41    0.30 
Distributions from:               
Net investment income   (—)(C)         
Realized capital gains   (0.62)   (0.47)    
Total distributions   (0.62)        
Net asset value at end of period  $4.63   $6.04   $6.10 
Total return   (13.76%)(D)   7.21%(D)   5.17%(D)
Ratios and supplemental data:               
Net assets at end of period (000's)  $721   $8   $3 
Ratio to average net assets:               
Net expenses   0.79%(E)   0.79%(E)   0.79%(E)
Gross expenses   2.39%(E)   275.86%(E)   2069.15%(E)
Net investment income (loss)   0.10%(E)   0.05%(E)   (0.70%)(E)
Portfolio turnover rate   47%(D)(F)(G)   30%(D)   82%

 

(A)The Fund changed its fiscal year end from November 30 to June 30.
(B)Represents the period from commencement of operations (October 30, 2017) through November 30, 2017.
(C)Less than $0.005 per share.
(D)Not annualized.
(E)Annualized.
(F)Portfolio turnover excludes the purchases and sales of securities by the Touchstone Small Cap Growth Fund acquired on September 21, 2018 (See Note 9 in the Notes to Financial Statements). If these transactions were included, portfolio turnover would have been higher.
(G)Portfolio turnover excludes securities delivered from processing redemptions-in-kind.

 

See accompanying Notes to Financial Statements.

 

 C: 
 88 

 

 

Financial Highlights (Continued)

 

Touchstone Small Company Fund—Class R6

Selected Data for a Share Outstanding Throughout Each Period

   Six Months             
   Ended   Seven Months         
   December 31,   Ended       Period Ended 
   2018   June 30,   Year Ended November 30,   November 30, 
   (Unaudited)   2018(A)   2017   2016   2015(B) 
Net asset value at beginning of period  $5.65   $5.73   $5.24   $5.60   $5.44 
Income (loss) from investment operations:                         
Net investment income (loss)   0.01    (C)   (0.03)   0.01(D)   (0.01)(D)
Net realized and unrealized gains (losses) on investments   (0.72)   0.39    0.94    0.57    0.17 
Total from investment operations   (0.71)   0.39    0.91    0.58    0.16 
Distributions from:                         
Net investment income   (0.01)                
Realized capital gains   (0.62)   (0.47)   (0.42)   (0.94)    
Total distributions   (0.63)   (0.47)   (0.42)   (0.94)    
Net asset value at end of period  $4.31   $5.65   $5.73   $5.24   $5.60 
Total return   (13.44%)(E)   7.33%(E)   18.58%   13.07%   2.94%(E)
Ratios and supplemental data:                         
Net assets at end of period (000's)  $122,172   $76,246   $67,052   $13,000   $599 
Ratio to average net assets:                         
Net expenses   0.73%(F)   0.73%(F)   0.75%   0.73%   0.73%(F)
Gross expenses   0.82%(F)   0.84%(F)   0.77%   0.99%   2.96%(F)
Net investment income (loss)   0.15%(F)   0.10%(F)   (0.07%)   0.16%   (0.18%)(F)
Portfolio turnover rate   47%(E)(G)(H)   30%(E)   82%   61%   70%

 

(A)The Fund changed its fiscal year end from November 30 to June 30.
(B)Represents the period from commencement of operations (December 23, 2014) through November 30, 2015.
(C)Less than $0.005 per share.
(D)The net investment income (loss) per share was based on average shares outstanding for the period.
(E)Not annualized.
(F)Annualized.
(G)Portfolio turnover excludes the purchases and sales of securities by the Touchstone Small Cap Growth Fund acquired on September 21, 2018 (See Note 9 in the Notes to Financial Statements). If these transactions were included, portfolio turnover would have been higher.
(H)Portfolio turnover excludes securities delivered from processing redemptions-in-kind.

 

See accompanying Notes to Financial Statements.

 

 C: 
 89 

 

 

Financial Highlights (Continued)

 

Touchstone Value Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

   Six Months     
   Ended     
   December 31,     
   2018   Year Ended June 30, 
   (Unaudited)   2018   2017   2016   2015   2014 
Net asset value at beginning of period  $9.92   $10.13   $8.84   $9.78   $9.56   $8.02 
Income (loss) from investment operations:                              
Net investment income   0.08    0.14    0.19    0.16    0.16    0.19 
Net realized and unrealized gains (losses) on investments   (0.58)   0.55    1.30    (0.27)   0.34    1.53 
Total from investment operations   (0.50)   0.69    1.49    (0.11)   0.50    1.72 
Distributions from:                              
Net investment income   (0.08)   (0.14)   (0.18)   (0.16)   (0.11)   (0.18)
Realized capital gains   (1.08)   (0.76)   (0.02)   (0.67)   (0.17)    
Total distributions   (1.16)   (0.90)   (0.20)   (0.83)   (0.28)   (0.18)
Net asset value at end of period  $8.26   $9.92   $10.13   $8.84   $9.78   $9.56 
Total return(A)   (5.53%)(B)   6.92%   16.92%   (0.89%)   5.26%   21.50%
Ratios and supplemental data:                              
Net assets at end of period (000's)  $30,086   $36,968   $43,607   $47,939   $55,539   $66,000 
Ratio to average net assets:                              
Net expenses   1.08%(C)   1.08%   1.08%   1.08%   1.08%   1.07%
Gross expenses   1.26%(C)   1.26%   1.24%   1.28%   1.27%   1.31%
Net investment income   1.57%(C)   1.42%   1.86%   1.71%   1.54%   2.13%
Portfolio turnover rate   16%(B)(D)   24%   29%   19%(E)   20%   26%

 

Touchstone Value Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period 

 

   Six Months     
   Ended     
   December 31,     
   2018   Year Ended June 30, 
   (Unaudited)   2018   2017   2016   2015   2014 
Net asset value at beginning of period  $9.89   $10.10   $8.81   $9.75   $9.55   $8.02 
Income (loss) from investment operations:                              
Net investment income   0.04    0.08    0.12    0.09    0.07    0.11 
Net realized and unrealized gains (losses) on investments   (0.58)   0.54    1.29    (0.27)   0.35    1.54 
Total from investment operations   (0.54)   0.62    1.41    (0.18)   0.42    1.65 
Distributions from:                              
Net investment income   (0.04)   (0.07)   (0.10)   (0.09)   (0.05)   (0.12)
Realized capital gains   (1.08)   (0.76)   (0.02)   (0.67)   (0.17)    
Total distributions   (1.12)   (0.83)   (0.12)   (0.76)   (0.22)   (0.12)
Net asset value at end of period  $8.23   $9.89   $10.10   $8.81   $9.75   $9.55 
Total return(A)   (5.93%)(B)   6.12%   16.06%   (1.65%)   4.41%   20.61%
Ratios and supplemental data:                              
Net assets at end of period (000's)  $2,947   $3,654   $4,503   $5,624   $6,932   $5,218 
Ratio to average net assets:                              
Net expenses   1.83%(C)   1.83%   1.83%   1.83%   1.83%   1.82%
Gross expenses   2.26%(C)   2.21%   2.12%   2.16%   2.14%   2.19%
Net investment income   0.82%(C)   0.68%   1.11%   0.96%   0.79%   1.38%
Portfolio turnover rate   16%(B)(D)   24%   29%   19%(E)   20%   26%

 

(A)Total returns shown exclude the effect of applicable sales loads and fees. If these charges were included, the returns would be lower.
(B)Not annualized.
(C)Annualized.
(D)Portfolio turnover excludes securities delivered from processing redemptions-in-kind.
(E)Portfolio turnover rate excludes securities received from processing a subscription-in-kind.

 

See accompanying Notes to Financial Statements.

 

 C: 
 90 

 

  

Financial Highlights (Continued)

 

Touchstone Value Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period 

   Six Months                     
   Ended                     
   December 31,                 
   2018   Year Ended June 30, 
   (Unaudited)   2018   2017   2016   2015   2014 
Net asset value at beginning of period  $9.96   $10.17   $8.87   $9.81   $9.59   $8.05 
Income (loss) from investment operations:                              
Net investment income   0.09    0.17    0.20    0.18    0.18    0.21 
Net realized and unrealized gains (losses) on investments   (0.58)   0.55    1.32    (0.27)   0.35    1.53 
Total from investment operations   (0.49)   0.72    1.52    (0.09)   0.53    1.74 
Distributions from:                              
Net investment income   (0.10)   (0.17)   (0.20)   (0.18)   (0.14)   (0.20)
Realized capital gains   (1.08)   (0.76)   (0.02)   (0.67)   (0.17)    
Total distributions   (1.18)   (0.93)   (0.22)   (0.85)   (0.31)   (0.20)
Net asset value at end of period  $8.29   $9.96   $10.17   $8.87   $9.81   $9.59 
Total return   (5.47%)(A)   7.19%   17.28%   (0.64%)   5.52%   21.71%
Ratios and supplemental data:                              
Net assets at end of period (000's)  $78,600   $81,988   $83,974   $76,852   $104,668   $113,055 
Ratio to average net assets:                              
Net expenses   0.80%(B)   0.81%   0.83%   0.83%   0.82%   0.80%
Gross expenses   0.94%(B)   0.95%   0.97%   0.99%   0.97%   0.99%
Net investment income   1.85%(B)   1.70%   2.11%   1.96%   1.80%   2.39%
Portfolio turnover rate   16%(A)(C)   24%   29%   19%(D)   20%   26%

 

Touchstone Value Fund—Institutional Class

Selected Data for a Share Outstanding Throughout Each Period

 

   Six Months                     
   Ended                     
   December 31,                 
   2018   Year Ended June 30, 
   (Unaudited)   2018   2017   2016   2015   2014 
Net asset value at beginning of period  $9.93   $10.14   $8.85   $9.79   $9.57   $8.03 
Income (loss) from investment operations:                              
Net investment income   0.10    0.19    0.22    0.19    0.18    0.21 
Net realized and unrealized gains (losses) on investments   (0.58)   0.55    1.31    (0.27)   0.36    1.54 
Total from investment operations   (0.48)   0.74    1.53    (0.08)   0.54    1.75 
Distributions from:                              
Net investment income   (0.10)   (0.19)   (0.22)   (0.19)   (0.15)   (0.21)
Realized capital gains   (1.08)   (0.76)   (0.02)   (0.67)   (0.17)    
Total distributions   (1.18)   (0.95)   (0.24)   (0.86)   (0.32)   (0.21)
Net asset value at end of period  $8.27   $9.93   $10.14   $8.85   $9.79   $9.57 
Total return   (5.33%)(A)   7.34%   17.38%   (0.49%)   5.68%   21.92%
Ratios and supplemental data:                              
Net assets at end of period (000's)  $181,827   $262,467   $249,035   $219,824   $248,381   $245,573 
Ratio to average net assets:                              
Net expenses   0.68%(B)   0.68%   0.68%   0.68%   0.68%   0.67%
Gross expenses   0.88%(B)   0.87%   0.86%   0.87%   0.86%   0.87%
Net investment income   1.97%(B)   1.82%   2.26%   2.11%   1.94%   2.52%
Portfolio turnover rate   16%(A)(C)   24%   29%   19%(D)   20%   26%

 

(A)Not annualized.
(B)Annualized.
(C)Portfolio turnover excludes securities delivered from processing redemptions-in-kind.
(D)Portfolio turnover rate excludes securities received from processing a subscription-in-kind.

 

See accompanying Notes to Financial Statements. 

 

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Notes to Financial Statements

December 31, 2018 (Unaudited)

 

1. Organization

 

The Touchstone Strategic Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was established as a Massachusetts business trust pursuant to an Agreement and Declaration of Trust dated November 18, 1982. The Trust consists of twenty-two funds, including the following eleven funds (individually, a “Fund”, and collectively, the “Funds”):

  

Touchstone Balanced Fund (“Balanced Fund”)

Touchstone Credit Opportunities Fund (“Credit Opportunities Fund”

Touchstone International Equity Fund (“International Equity Fund“)

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

Touchstone Large Cap Focused Fund (“Large Cap Focused Fund”) Touchstone Large Cap Fund (“Large Cap Fund”)

Touchstone Large Company Growth Fund (“Large Company Growth Fund”) Touchstone Ohio Tax-Free Bond Fund (“Ohio Tax-Free Bond Fund”) Touchstone Small Company Fund (“Small Company Fund”)

Touchstone Value Fund (“Value Fund”)

 

Each Fund is diversified, with the exception of the Credit Opportunities Fund, the International Growth Opportunities Fund, the Large Cap Focused Fund, the Large Cap Fund, the Large Company Growth Fund and the Ohio Tax-Free Bond 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 Y Class Class R6
Balanced Fund X X X    
Credit Opportunities Fund X X X X  
International Equity Fund X X X X  
International Growth Opportunities Fund X X X X  
International Small Cap Fund X X X X  
Large Cap Focused Fund X X X X  
Large Cap Fund X X X X  
Large Company Growth Fund X X X X  
Ohio Tax-Free Bond Fund X X X X  
Small Company Fund X X X X X
Value Fund 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.

 

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Notes to Financial Statements (Unaudited) (Continued)

 

Regulatory Updates — In August 2018, the Securities and Exchange Commission (the “SEC”) released its Final Rules that eliminated or amended disclosure requirements in the financial statements that were redundant or outdated in light of changes in SEC requirements or U.S. generally accepted accounting principles (“U.S. GAAP”). The Final Rules were effective November 5, 2018. Management has evaluated the SEC Final Rules and is complying with the amendments in the current financial statements.

 

In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update (the “ASU”) No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which amends and eliminates certain disclosure requirements for fair value as part of its framework project. The ASU is effective for annual and interim periods beginning after December 15, 2019. The early adoption of the removal or modification of disclosures and delay of adoption of the additional disclosures is permitted. As of December 31, 2018, the Funds have adopted the removal of applicable disclosures.

 

Security valuation and fair value measurements — U.S. GAAP defines fair value as the price the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. All investments in securities are recorded at their 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 December 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 Credit Opportunities Fund held Level 3 categorized securities during the period ended December 31, 2018.

 

Changes in valuation techniques may result in transfers into or out of an investment’s assigned level within the hierarchy. At December 31, 2018, there were no transfers for Level 3 for the Funds.

 

During the six months ended December 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 time as 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

 

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Notes to Financial Statements (Unaudited) (Continued)

 

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 value (“NAV”) as reported by 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 Credit Opportunities 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 Fund’s valuation policies and procedures approved by the Funds’ Board of Trustees (the “Board”), and are generally categorized in Level 2. The Credit Opportunities 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.

 

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 Board and are generally categorized in Level 3.

 

Bank Loans — The Credit Opportunities 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

 

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Notes to Financial Statements (Unaudited) (Continued)

 

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. 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 Statements of Assets and Liabilities. Unrealized appreciation/depreciation on unfunded commitments presented on the Statements of Assets and Liabilities represents fair value of the unfunded portion of the Fund’s bank loans.

 

As of December 31, 2018, the Credit Opportunities Fund did not hold any unfunded loan commitments.

 

Collateralized Loan Obligations — The Credit Opportunities 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 higher 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.

 

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Notes to Financial Statements (Unaudited) (Continued)

 

Securities sold short — The Credit Opportunities Fund 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 December 31, 2018, the Credit Opportunities did not hold any securities sold short.

 

Options — The Credit Opportunities Fund may write or purchase financial option contracts primarily to hedge against changes in the value of equity securities (or securities that the Fund intends to purchase), against fluctuations in fair value caused by changes in prevailing market interest rates or foreign currency exchange rates and against changes in overall equity market volatility. In addition, the Fund may utilize options in an attempt to generate gains from option premiums or to reduce overall portfolio risk. The Fund’s option strategy primarily focuses on the use of writing and/or purchasing call or put options on equity indexes. When the Fund writes or purchases an option, an amount equal to the premium received or paid by the Fund is recorded as a liability or an asset and is subsequently adjusted to the current market value of the option written or purchased. Premiums received or paid from writing or purchasing options which expire unexercised are treated by the Fund on the expiration date as realized gains or losses. The difference between the premium and the amount paid or received on effecting a closing purchase or sale transaction, including brokerage commissions, is also treated as a realized gain or loss. If an option is exercised, the premium paid or received is added to the cost of the purchase or proceeds from the sale in determining whether the Fund has realized a gain or loss on investment transactions. The Fund, as writer of an option, may have no control over whether the underlying securities may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the security underlying the written option. The Fund, as purchaser of an option, bears the risk that the counterparties to the option may not have the ability to meet the terms of the option contracts. There is minimal counterparty credit risk involved in entering into option contracts since they are exchange-traded instruments and the exchange’s clearinghouse, as counterparty to all exchange-traded options, guarantees the options against default.

 

As of December 31, 2018, the Credit Opportunities Fund had written options with fair value of $(10,560) and pledged securities with a fair value of $2,058,444 as collateral for written options and had a related due to prime broker balance of $734,111. The Credit Opportunities Fund held purchased options with a fair value of $28,800 as of December 31, 2018.

 

Warrants — The Funds can invest in warrants and stock purchase rights of companies of any market capitalization. A warrant gives the holder 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.

 

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

 

Swap agreements may increase or decrease the overall volatility of the investments of the Fund and its share price. The performance of swap agreements may be affected by a change in the specific interest rate, currency, or other factors that determine the amounts of payments due to and from the Fund. If a swap agreement calls

 

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Notes to Financial Statements (Unaudited) (Continued)

 

for payments by a Fund, the Fund must be prepared to make such payments when due. In addition, if the counterparty’s creditworthiness declines, the value of a swap agreement would be likely to decline, potentially resulting in losses.

 

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

 

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

 

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

 

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

 

As of December 31, 2018, the Credit Opportunities Fund did not hold any swap contracts.

 

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

 

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

 

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

 

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

 

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Notes to Financial Statements (Unaudited) (Continued)

 

Real Estate Investment Trusts — The Funds may invest in real estate investment trusts (“REITs”) that involve risks not associated with investing in stocks. Risks associated with investments in REITs 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.

 

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

 

When entering into a derivative transaction, the Fund may be required to post and maintain collateral or margin (including both initial and maintenance margin). Collateral and margin requirements differ by type of derivative. Margin requirements are established by the broker or clearing house for exchange-traded and centrally cleared derivatives (financial futures contracts, options, and centrally cleared swaps). Brokers can ask for margining in excess of the clearing house’s minimum in certain circumstances. Collateral terms are contract specific for OTC derivatives (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 the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA Master Agreement, which would cause the Fund (counterparty) to accelerate payment of any net liability owed to the counterparty (Fund).

 

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

 

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Notes to Financial Statements (Unaudited) (Continued)

 

As of December 31, 2018, the Credit Opportunities Fund’s assets and liabilities that were subject to a MNA on a gross basis were as follows:

 

   Assets   Liabilities 
Derivative Financial Instruments:          
Written Options  $   $(10,560)

 

The following table presents the Credit Opportunities Fund’s liabilities net of amounts available for offset under a MNA and net of the related collateral received by the Fund as of December 31, 2018:

 

       Gross Amounts            
       Available for Offset            
   Gross Amount of   in Statement of  Non-cash         
   Recognized   Assets and  Collateral   Cash Collateral     
   Liabilities   Liabilities  Pledged   Pledged   Net Amount(B) 
Written Options(A)  $10,560 $   $(10,560)  $   $ 

 

(A)Pershing LLC is the counterparty.

 

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

 

The following table sets forth the fair value of the Credit Opportunities Fund’s derivative financial instruments by primary risk exposure as of December 31, 2018:

  

Fair Value of Derivative Investments
As of December 31, 2018
   Derivatives not accounted for as hedging  Asset   Liability 
Fund  instruments under ASC 815  Derivatives   Derivatives 
Credit Opportunities Fund  Purchased Options - Equity Contracts*  $28,800   $ 
   Written Options - Equity Contracts**       (10,560)

 

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

 

The following table sets forth the effect of the Credit Opportunities Fund’s derivative financial instruments by primary risk exposure on the Statements of Operations for the six months ended December 31, 2018:

  

The Effect of Derivative Investments on the Statements of Operations

for the Six Months Ended December 31, 2018

          Change in 
          Unrealized 
      Realized Gain   Appreciation 
      (Loss)   (Depreciation) 
   Derivatives not accounted for as hedging  on   on 
Fund  instruments under ASC 815  Derivatives   Derivatives 
Credit Opportunities Fund  Purchased Options - Equity Contracts*  $(47,957)  $338 
   Written Options - Equity Contracts**   1,767    (1,521)
   Credit Default Swap - Credit Contracts***   10,208     

 

*Statements of Operations Location: Net realized gains (losses) on investments and Net change in unrealized appreciation (depreciation) on investments.

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

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

 

For the six months ended December 31, 2018, the average quarterly balances of outstanding derivative financial instruments were as follows:

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Notes to Financial Statements (Unaudited) (Continued)

 

   Credit 
   Opportunities 
   Fund 
Equity Contracts:     
Purchased Options - Cost  $24,699 
Written Options - Premiums received   3,868 
Credit contracts:     
Credit Default Swaps - Notional value*    

 

*The balance at each quarter end was zero.

 

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 December 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*** 
Credit Opportunities Fund  Corporate Bonds  $1,615,787   $1,694,164   $78,377 
International Equity Fund  Common Stocks   5,859,782    5,935,346    75,564 
International Growth Opportunities  Fund  Common Stocks   319,990    331,609    11,619 
International Small Cap Fund  Common Stocks   3,742,461    6,677,154    2,934,693 
Large Cap Focused Fund  Exchange-Traded Funds   16,828,560    17,172,000    343,440 

 

*The remaining contractual maturity is overnight for all securities.
**Gross amount of recognized liabilities for securities lending included in the Statements of Assets and Liabilities.
***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 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.

 

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

 

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Notes to Financial Statements (Unaudited) (Continued)

 

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.

 

Effective August 17, 2018, the maximum offering price per share of Class A shares of the equity funds (all of the Funds except the Ohio Tax-Free Bond Fund) is equal to the NAV per share plus a sales load equal to 5.26% of the NAV (or 5.00% of the offering price). The maximum offering price per share of Class A shares of the fixed income fund (the Ohio Tax-Free Bond Fund) is equal to the NAV per share plus a sales load equal to 2.04% of the NAV (or 2.00% of the offering price). Prior to August 17, 2018 the maximum offering price per share of Class A shares of the equity funds was 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 Ohio Tax-Free Bond Fund was equal to the NAV per share plus a sales load equal to 4.99% of the NAV (or 4.75% of the offering price). There is no sales load on fund purchases of Class A shares when aggregate purchases in all Touchstone funds equal the maximum breakpoint which is at least $1 million for equity funds or $500,000 for fixed income funds. The maximum offering price per share of Classes C, Y, Institutional Class and R6 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 purchase due to the aggregate purchase amount in all Touchstone Funds equaling at least the maximum breakpoint where a Finder’s Fee was paid may be subject to a contingent deferred sales charge (“CDSC”) of up to 1.00% or 0.50% for equity or fixed income funds, respectively, if redeemed within a one-year period from the date of purchase. Additionally, purchases of Class C shares of the Funds may be subject to a CDSC of 1.00% if redeemed within a one-year period from the date of purchase. 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.

 

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 discounts and market premiums on debt securities are accreted/amortized to interest income over the life of the security with a corresponding adjustment in the cost basis of that security. In addition, it is the Funds’ policy to accrue for foreign capital gains taxes, if applicable, on certain foreign securities held by the Funds. An estimated foreign capital gains tax is recorded daily on net unrealized gains on these securities and is payable upon the sale of such securities when a gain is realized.

 

Distributions to shareholders — Each Fund intends to distribute to its shareholders substantially all of its income and capital gains. Each Fund, except the Balanced Fund, Credit Opportunities Fund, Ohio Tax-Free Bond Fund and the Value Fund, declares and distributes net investment income, if any, annually, as a dividend to shareholders. The Balanced Fund, Credit Opportunities Fund and Value Fund declare and distribute net investment income, if any, quarterly as a dividend to shareholders. The Ohio Tax-Free Bond Fund declares distributions from net investment income on a daily basis and distributes as a dividend to shareholders on a

 

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Notes to Financial Statements (Unaudited) (Continued)

  

monthly basis. 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 Funds in the Trust, and, if applicable, Touchstone Funds Group Trust, Touchstone Institutional Funds 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 December 31, 2018:

 

               International 
       Credit   International   Growth 
   Balanced   Opportunities   Equity   Opportunities 
   Fund   Fund   Fund   Fund 
Purchases of investment securities  $27,436,752   $17,803,583   $31,289,839   $22,929,937 
Proceeds from sales and maturities  $26,896,566   $19,813,753   $42,719,122   $15,542,487 
                     
                   Large 
    International    Large Cap         Company 
    Small Cap    Focused    Large Cap    Growth 
    Fund    Fund*    Fund**    Fund 
Purchases of investment securities  $145,201,118   $177,255,366   $32,762,325   $45,082,648 
Proceeds from sales and maturities  $179,220,555   $267,316,617   $69,233,509   $80,620,901 
                     
    Ohio                
    Tax-free    Small           
    Bond    Company    Value      
    Fund    Fund***, ****    Fund*****      
Purchases of investment securities  $14,165,323   $558,114,920   $54,859,908      
Proceeds from sales and maturities  $12,942,033   $656,331,147   $65,517,055      

 

*Large Cap Focused Fund had redemptions-in-kind which resulted in redemptions out of the Fund of $15,981,386 and is excluded from the proceeds from sales and maturities. The redemptions were comprised of securities and cash in the amount of $10,207,890 and $5,773,496, respectively.

 

**Large Cap Fund had redemptions-in-kind which resulted in redemptions out of the Fund of $41,132,098 and is excluded from the proceeds from sales and maturities. The redemptions were comprised of securities and cash in the amount of $39,892,784 and $1,239,314, respectively.

 

***The costs of purchases and proceeds from sales on the Small Company Fund excludes the purchases and sales of the Small Cap Growth Fund (see Note 9). If these transactions were included, purchases and sales would have been higher.

 

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Notes to Financial Statements (Unaudited) (Continued)

 

****Small Company Fund had redemptions-in-kind which resulted in redemptions out of the Fund of $4,650,137 and is excluded from the proceeds from sales and maturities. The redemptions were comprised of securities and cash in the amount of $2,695,518 and $1,954,619, respectively.

 

*****Value Fund had redemptions-in-kind which resulted in redemptions out of the Fund of $65,223,894 and is excluded from the proceeds from sales and maturities. The redemptions were comprised of securities and cash in the amount of $63,282,300 and $1,941,594, respectively.

 

For the six months ended December 31, 2018, purchases and proceeds from sales and maturities in U.S. Government Securities were $109,167,869 and $98,677,850, respectively, for the Balanced Fund. There were no purchases or proceeds from sales and maturities of U.S. Government securities by the other Funds for the six months ended December 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 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 $79,781 for the six months ended December 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.

 

Balanced Fund 0.55% on the first $200 million
  0.50% on the next $200 million
  0.45% on the next $600 million
  0.40% on the next $1 billion
  0.35% on such assets over $2 billion
Credit Opportunities Fund 1.10%
International Equity Fund 0.70% on the first $500 million
  0.65% on the next $300 million
  0.60% on the next $200 million
  0.50% on the next $1 billion
  0.40% on such assets over $2 billion
International Growth Opportunities Fund 0.80%

 

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Notes to Financial Statements (Unaudited) (Continued)

 

International Small Cap Fund 0.95% on the first $300 million
  0.90% on the next $200 million
  0.85% on the next $250 million
  0.80% on the next $250 million
  0.75% on the next $500 million
  0.70% on the next $500 million
  0.65% on such assets over $2 billion
Large Cap Focused Fund 0.70% on the first $500 million
  0.65% on the next $300 Million
  0.60% on the next $200 million
  0.50% on the next $1 billion
  0.40% on such assets over $2 billion
Large Cap Fund 0.70% on the first $500 million
  0.64% on the next $500 million
  0.60% on such assets over $1 billion
Large Company Growth Fund 0.75% on the first $500 million
  0.725% on the next $1.5 billion
  0.70% on such assets over $2 billion
Ohio Tax-Free Bond Fund 0.50% on the first $100 million
  0.45% on the next $100 million
  0.40% on the next $100 million
  0.375% on such assets over $300 million
Small Company Fund 0.70% on the first $500 million
  0.65% on the next $300 million
  0.60% on the next $200 million
  0.50% on the next $1 billion
  0.40% on such assets over $2 billion
Value Fund 0.65%

 

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

 

Ares Capital Management II LLC DSM Capital Partners LLC
Credit Opportunities Fund International Growth Opportunities Fund
  Large Company Growth Fund
   
Barrow, Hanley, Mewhinney & Strauss, LLC The London Company
Value Fund Large Cap Fund
   
Copper Rock Capital Partners LLC Fort Washington Investment Advisors, Inc.*
International Small Cap Fund Balanced Fund
  International Equity Fund
  Large Cap Focused Fund
  Ohio Tax-Free Bond Fund
  Small Company Fund

 

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

 

The Advisor, not the Funds, pays the 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

 

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Notes to Financial Statements (Unaudited) (Continued)

 

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 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 waive a portion of its fees, and to reimburse certain fund expenses in order to maintain the following expense limitations for the Funds:

 

               Institutional     
Fund  Class A   Class C   Class Y   Class   Class R6 
Balanced Fund   1.01%   1.78%   0.81%        
Credit Opportunities Fund   1.69%   2.44%   1.44%   1.34%    
International Equity Fund   1.36%   2.49%   0.99%   0.89%    
International Growth Opportunities Fund   1.24%   1.99%   0.99%   0.89%    
International Small Cap Fund   1.55%   2.30%   1.30%   1.18%    
Large Cap Focused Fund   1.00%   1.79%   0.72%   0.65%    
Large Cap Fund   1.12%   1.87%   0.87%   0.77%    
Large Company Growth Fund   1.23%   1.98%   0.98%   0.88%    
Ohio Tax-Free Bond Fund   0.85%   1.60%   0.60%   0.55%    
Small Company Fund   1.22%   1.95%   0.89%   0.79%   0.73%
Value Fund   1.08%   1.83%   0.83%   0.68%    

 

These expense limitations will remain in effect for all Funds through at least October 29, 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 December 31, 2018, the Advisor or its affiliates waived investment advisory fees, administration fees or other operating expenses, including distribution fees, of the Funds as follows:

 

   Investment             
   Advisory       Other Operating     
   Fees   Administration   Expenses     
Fund  Waived   Fees Waived   Waived   Total 
Balanced Fund  $   $   $95,970   $95,970 
Credit Opportunities Fund   8,624    36,692    13,491    58,807 
International Equity Fund       57,311    19,008    76,319 
International Growth Opportunities Fund   25,559    27,114    27,636    80,309 
International Small Cap Fund       21,531    79,348    100,879 
Large Cap Focused Fund       982,266    119,266    1,101,532 
Large Cap Fund       209,670    30,554    240,224 
Large Company Growth Fund       53,478    80,285    133,763 
Ohio Tax-Free Bond Fund   26,277    34,912    16,424    77,613 
Small Company Fund       450,239    17,308    467,547 
Value Fund       262,934    80,131    343,065 

 

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. The Fund will make repayments to the Advisor only if such repayment does not cause the Fund’s operating expenses (after the repayment is taken into account) to exceed the Fund’s expense limit in place when such amounts were waived or reimbursed by the Advisor and the Fund’s current expense limitation.

 

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Notes to Financial Statements (Unaudited) (Continued)

 

As of December 31, 2018, the Advisor may seek recoupment of previously waived fees and reimbursed expenses as follows:

 

   Expires   Expires   Expires   Expires   Expires     
   on or   on or   on or   on or   on or     
   before   before   before   before   before     
   June 30,   June 30,   November 30,   June 30,   June 30,     
Fund  2019   2020   2020   2021   2022   Total 
Balanced Fund  $   $   $3,422   $16,819   $6,725   $26,966 
Credit Opportunities Fund   93,832    110,236        112,035    58,367    374,470 
International Equity Fund           33,634    98,681    76,319    208,634 
International Growth  Opportunities Fund       105,564        106,252    77,906    289,722 
International Small Cap Fund   79,831    109,847        72,874    83,283    345,835 
Large Cap Focused Fund           90,753    1,304,229    1,101,532    2,496,514 
Large Cap Fund   313,595    464,555        449,854    231,727    1,459,731 
Large Company Growth Fund       193,888        249,815    128,908    572,611 
Ohio Tax-Free Bond Fund   15,919    133,855        129,632    66,991    346,397 
Small Company Fund           29,439    596,684    467,547    1,093,670 
Value Fund   321,504    620,025        680,915    331,669    1,954,113 

 

The Advisor did not recoup any amounts it previously waived or reimbursed during the six months ended December 31, 2018.

 

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.

 

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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 pays an annual fee of up to 0.25% of average daily net assets that are attributable to Class A shares. Under the Class C plan, each Fund offering Class C shares pays an annual fee not to exceed 1.00% of average daily net assets that are attributable to Class C shares (of which up to 0.75% is a distribution fee and up to 0.25% is a shareholder servicing fee).

 

UNDERWRITING AGREEMENT

 

The Underwriter is the Funds’ principal underwriter and, as such, acts as exclusive agent for distribution of the Funds’ shares. Under the terms of the Underwriting Agreement between the Trust and the Underwriter, the Underwriter earned underwriting and broker commissions on the sale of Class A shares of the Funds. W&S Brokerage Services, Inc., an affiliate of the Underwriter and the Advisor, also earned broker commissions on the sale of Class A shares of the Funds. Listed below are the total underwriting and broker commissions earned by the Underwriter and its affiliate during the six months ended December 31, 2018:

 

Fund  Amount 
Balanced Fund  $7,229 
Credit Opportunities Fund   10 
International Equity Fund   3,189 
International Growth Opportunities Fund   186 
International Small Cap Fund   276 
Large Cap Focused Fund   8,715 
Large Cap Fund   289 
Large Company Growth Fund   399 
Ohio Tax-Free Bond Fund   2,274 
Small Company Fund   11,935 
Value Fund   446 

 

In addition, the Underwriter collected CDSC on the redemption of Class A and Class C shares of the Funds listed below during the six months ended December 31, 2018:

 

   Class   Class 
   A   C 
Fund  Shares   Shares 
Balanced Fund  $   $326 
International Equity Fund   1    11 
International Small Cap Fund       40 
Large Cap Focused Fund   35    141 
Large Cap Fund       158 
Small Company Fund   38    225 
Value Fund       543 

 

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Notes to Financial Statements (Unaudited) (Continued)

 

INTERFUND TRANSACTIONS

 

Pursuant to Rule 17a-7 under the 1940 act, 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 December 31, 2018, the Funds did not engage in any Rule 17a-7 transactions.

 

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 (in cash or in-kind) when the Fund experiences net sales, at the end of a maximum holding period determined by ReFlow, or at other times at ReFlow’s discretion. 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 December 31, 2018, the following Funds utilized ReFlow. The shares ReFlow subscribed to and redemptions-in-kind were as follows:

 

   Shares ReFlow     
Fund  Subscribed to   Redemptions-in-kind 
Large Cap Focused Fund   417,103   $10,207,890 
Small Company Fund   729,142    2,695,518 

 

The resulting fee is included 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 December 31, 2018, the following Funds participated as a lender in the interfund lending program. The daily average amount loaned, weighted average interest rate and interest income were as follows:

 

   Daily Average   Weighted Average     
   Amount   Interest   Interest 
Fund  Loaned   Rate   Income* 
Large Cap Focused Fund  $57,061    2.33%  $680 
Small Company Fund   1,970,676    2.06%   20,455 

 

*Included in Interest in the Statements of Operations.

 

During the six months ended December 31, 2018, the following Funds participated as a borrower in the interfund lending program. The daily average amount borrowed, weighted average interest rate and interest expense were as follows:

 

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Notes to Financial Statements (Unaudited) (Continued)

 

   Daily Average   Weighted Average     
   Amount   Interest   Interest 
Fund  Borrowed   Rate   Expense* 
International Small Cap Fund  $479,462    2.09%  $5,160 
Large Cap Focused Fund   67,719    2.14%   741 
Large Cap Fund   298,609    2.26%   3,374 
Large Company Growth Fund   351,724    1.99%   3,585 

 

*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 and tax-exempt 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 is as follows:

 

   Balanced Fund   Credit Opportunities Fund 
   Seven                 
   Months Ended   Year Ended   Year Ended   Year Ended   Year Ended 
   June 30,   November 30,   November 30,   June 30,   June 30, 
   2018   2017   2016   2018   2017 
From ordinary income  $2,415,681   $3,724,887   $6,767,216   $3,211,801   $2,960,568 
From long-term capital gains   15,494,463    2,124,199    9,916,784    926,076     
Total Distributions  $17,910,144   $5,849,086   $16,684,000   $4,137,877   $2,960,568 

 

   International Equity Fund   International Growth Opportunities Fund 
   Seven                 
   Months Ended   Year Ended   Year Ended   Year Ended   Year Ended 
   June 30,   November 30,   November 30,   June 30,   June 30, 
   2018   2017   2016   2018   2017 
From ordinary income  $2,308,837   $1,250,578   $976,876   $372,285   $15,884 
From long-term capital gains   7,102,450        3,860,204    149,175    139,199 
Total Distributions  $9,411,287   $1,250,578   $4,837,080   $521,460   $155,083 

 

   International Small Cap Fund   Large Cap Focused Fund 
           Seven         
   Year Ended   Year Ended   Months Ended   Year Ended   Year Ended 
   June 30,   June 30,   June 30,   November 30,   November 30, 
   2018   2017   2018   2017   2016 
From ordinary income  $7,979,769   $4,439,994   $4,002,079   $24,480,711   $57,077,267 
From long-term capital gains   1,865,799        265,660,471    115,781,936    137,723,635 
Total Distributions  $9,845,568   $4,439,994   $269,662,550   $140,262,647   $194,800,902 

 

 C: 
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Notes to Financial Statements (Unaudited) (Continued)

 

   Large Cap Fund   Large Company Growth Fund   Ohio Tax Free Bond Fund 
   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended   Year Ended 
   June 30,   June 30,   June 30,   June 30,   June 30,   June 30, 
   2018   2017   2018   2017   2018   2017 
From ordinary income  $2,347,689   $2,907,516   $1,615,959   $   $640   $8,371 
From tax-exempt income                   1,338,760    1,584,185 
From long-term capital gains           4,705,569    6,376,311        69,440 
Total Distributions  $2,347,689   $2,907,516   $6,321,528   $6,376,311   $1,339,400   $1,661,996 

 

   Small Company Fund   Value Fund 
   Seven                 
   Months Ended   Year Ended   Year Ended   Year Ended   Year Ended 
   June 30,   November 30,   November 30,   June 30,   June 30, 
   2018   2017   2016   2018   2017 
From ordinary income  $19,425,568   $   $   $7,015,940   $8,066,842 
From long-term capital gains   85,276,646    89,216,186    159,188,187    27,716,248    776,054 
Total Distributions  $104,702,214   $89,216,186   $159,188,187   $34,732,188   $8,842,896 

 

The following information is computed on a tax basis for each item as of June 30, 2018:

 

               International 
       Credit   International   Growth 
   Balanced   Opportunities   Equity   Opportunities 
   Fund   Fund   Fund   Fund 
Tax cost of portfolio investments  $185,670,936   $54,672,721   $175,347,746   $30,412,020 
Gross unrealized appreciation on investments   125,514,059    986,063    27,758,153    5,166,776 
Gross unrealized depreciation on investments   (1,999,539)   (1,331,237)   (13,559,429)   (1,215,922)
Net unrealized appreciation (depreciation) on investments   123,514,520    (345,174)   14,198,724    3,950,854 
Gross unrealized appreciation on foreign currency transactions, securities sold short, deferred capital gains tax and derivatives       1,750        79 
Gross unrealized depreciation on foreign currency transactions, securities sold short, deferred capital gains tax and derivatives       (99)   (11,172)   (11,192)
Net unrealized appreciation (depreciation) on foreign currency transactions, securities sold short, deferred capital gains tax and derivatives       1,651    (11,172)   (11,113)
Other temporary differences   (450)            
Undistributed ordinary income   338,007    310,154    1,952,690    425,298 
Undistributed long-term capital gains   6,063,370    307,144    16,188,079    4,272,059 
Distributable earnings (deficit)  $129,915,447   $273,775   $32,328,321   $8,637,098 

 

       Large       Large 
   International   Cap   Large   Company 
   Small Cap   Focused   Cap   Growth 
   Fund   Fund   Fund   Fund 
Tax cost of portfolio investments  $282,505,770   $751,127,156   $283,833,595   $157,040,267 
Gross unrealized appreciation on investments   45,434,035    990,182,055    86,088,499    92,658,091 
Gross unrealized depreciation on investments   (6,701,212)   (7,423,401)   (2,233,750)   (2,469,156)
Net unrealized appreciation (depreciation) on investments   38,732,823    982,758,654    83,854,749    90,188,935 
Gross unrealized appreciation on foreign currency transactions   13,144             
Gross unrealized depreciation on foreign currency transactions   (16,103)            

 

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Notes to Financial Statements (Unaudited) (Continued)

 

       Large       Large 
   International   Cap   Large   Company 
   Small Cap   Focused   Cap   Growth 
   Fund   Fund   Fund   Fund 
Net unrealized appreciation (depreciation) on foreign currency transactions  $(2,959)  $   $   $ 
Accumulated capital and other losses           (13,791,146)    
Other temporary differences       (273)        
Undistributed ordinary income       15,934,570    1,637,893    716,305 
Undistributed long-term capital gains   16,613,583    22,435,104        9,235,348 
Distributable earnings (deficit)  $55,343,447   $1,021,128,055   $71,701,496   $100,140,588 

 

   Ohio         
   Tax-Free         
   Bond   Small Company   Value 
   Fund   Fund   Fund 
Tax cost of portfolio investments  $44,360,368   $924,870,531   $295,457,551 
Gross unrealized appreciation on investments   1,656,120    310,582,076    108,171,657 
Gross unrealized depreciation on investments   (41,900)   (13,531,414)   (18,836,393)
Net unrealized appreciation (depreciation) on investments   1,614,220    297,050,662    89,335,264 
Other temporary differences   (27,720)        
Undistributed ordinary income       23,281,263    2,018,640 
Undistributed tax-exempt income   9,649         
Undistributed long-term capital gains       32,736,633    10,782,375 
Distributable earnings (deficit)  $1,596,149   $353,068,558   $102,136,279 

 

The difference between the tax cost of portfolio investments and the financial statement cost is primarily due to wash sale loss deferrals, passive foreign investment company (“PFIC”) adjustments and nontaxable distribution basis outstanding.

 

As of June 30, 2018, the Funds had the following capital loss carryforwards for federal income tax purposes:

 

   No 
   Expiration 
   Short Term 
Large Cap Fund  $13,791,146 

 

The capital loss carryforwards may be utilized in future years to offset net realized capital gains, if any, prior to distributing such gains to shareholders.

 

Under current laws, certain capital losses realized after October 31 and ordinary losses realized after December 31 may be deferred (and certain ordinary losses after October and/or December 31 may be deferred) and treated as occurring on the first day of the following fiscal year. For the year ended June 30, 2018 and the seven months ended June 30, 2018, as applicable, the Funds did not elect to defer any losses.

 

The Funds have analyzed their tax positions taken on federal income tax returns for all open tax years (tax years ended June 30, 2015 through 2018 and June 30, 2018 and November 30, 2014 through 2017, as applicable) and have concluded that no provision for income tax is required in their financial statements.

 

 C: 
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Notes to Financial Statements (Unaudited) (Continued)

 

As of December 31, 2018, the Trust had the following federal tax costs resulting in net unrealized appreciation (depreciation) as follows:

 

       Gross   Gross             
       Unrealized   Unrealized   Gross   Gross   Net 
   Federal   Appreciation   Depreciation   Unrealized   Unrealized   Unrealized 
   Tax   on   on   Appreciation   Depreciation   Appreciation/ 
Fund  Cost   Investments   Investments   on Other*   on Other*   (Depreciation) 
Balanced Fund  $204,736,226   $106,746,048   $(6,321,359)  $   $   $100,424,689 
Credit Opportunities Fund   53,415,273    682,310    (3,365,068)   1,828    (2,941)   (2,683,871)
International Equity Fund   160,335,323    15,241,887    (21,996,025)   2    (3,551)   (6,757,687)
International Growth  Opportunities Fund   35,275,757    2,089,389    (4,416,178)   36        (2,326,753)
International Small Cap Fund   230,227,643    13,888,474    (25,651,363)   3,178    (1,570)   (11,761,281)
Large Cap Focused Fund   829,395,395    775,406,138    (46,512,333)           728,893,805 
Large Cap Fund   232,846,909    54,444,110    (8,805,517)           45,638,593 
Large Company Growth Fund   122,441,990    64,562,104    (653,639)           63,908,465 
Ohio Tax-Free Bond Fund   45,434,923    1,534,451    (18,426)           1,516,025 
Small Company Fund   989,681,962    133,214,824    (66,340,990)           66,873,834 
Value Fund   263,810,851    57,975,399    (28,730,480)           29,244,919 

 

* Other includes Derivatives, Foreign Currency Transactions and Deferred Foreign Capital Gains Tax.

 

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.

 

Risks Associated with Sector 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.

 

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Notes to Financial Statements (Unaudited) (Continued)

 

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 — 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 a Fund’s returns because a 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 Reorganizations

 

Small Company Fund Reorganization:

 

The shareholders of the Touchstone Small Cap Growth Fund, a series of the Trust, approved an Agreement and Plan of Reorganization providing for the transfer of all assets and liabilities of the Touchstone Small Cap Growth Fund to the Touchstone Small Company Fund. The tax-free reorganization took place on September 21, 2018.

 

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

 

       After 
   Before Reorganization   Reorganization 
   Touchstone   Touchstone   Touchstone 
   Small Cap   Small Company   Small Company 
   Growth Fund   Fund   Fund 
Class A               
Shares   3,572,822(A)   113,082,178    116,655,000 
Net Assets  $21,326,954   $675,012,128   $696,339,082 
Net Asset Value  $5.97(A)  $5.97   $5.97 
                
Class C               
Shares   1,917,820(B)   29,092,599    31,010,419 
Net Assets  $6,665,795   $101,117,364   $107,783,159 
Net Asset Value  $3.48(B)  $3.48   $3.48 
                
Class Y               
Shares   11,284,528(C)   65,216,246    76,500,774 
Net Assets  $73,494,700   $424,748,096   $498,242,796 
Net Asset Value  $6.51(C)  $6.51   $6.51 

 

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Notes to Financial Statements (Unaudited) (Continued)

 

       After 
   Before Reorganization   Reorganization 
   Touchstone   Touchstone   Touchstone 
   Small Cap   Small Company   Small Company 
   Growth Fund   Fund   Fund 
Institutional Class               
Shares   556,531(D)   74,162    630,693 
Net Assets  $3,625,412   $483,116   $4,108,528 
Net Asset Value  $6.51(D)  $6.51   $6.51 
                
Class R6               
Shares       13,592,489    13,592,489 
Net Assets  $   $82,888,657   $82,888,657 
Net Asset Value  $   $6.10   $6.10 
                
Fund Total               
Shares Outstanding   20,075,021    221,057,674    238,389,375 
Net Assets  $105,112,861   $1,284,249,361   $1,389,362,222 
Unrealized Appreciation (Depreciation)  $24,471,563   $345,400,026   $369,871,589 

 

(A)Reflects a 0.8051:1 stock split which occurred on the date of reorganization, September 21, 2018.

 

(B)Reflects a 1.0348:1 reverse stock split which occurred on the date of reorganization, September 21, 2018.

 

(C)Reflects a 0.8586:1 stock split which occurred on the date of reorganization, September 21, 2018.

 

(D)Reflects a 0.8691:1 stock split which occurred on the date of reorganization, September 21, 2018.

 

Assuming the reorganization had been completed on July 1, 2018, the Small Company Fund’s results of operations for the six months ended December 31, 2018 would have been as follows:

 

Net investment loss  $(1,336,397)
Net realized and unrealized gain (loss) on investments  $(164,076,322)
Net decrease in net assets resulting from operations  $(165,412,719)

 

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

 

Sentinel Reorganization:

 

The shareholders of the Sentinel Balanced Fund, Sentinel International Equity Fund, Sentinel Common Stock Fund and Sentinel Small Company Fund (the “Reorganizing Funds”), each a series of Sentinel Group Funds, Inc., approved an Agreement and Plan of Reorganization providing for the transfer of all assets and liabilities of each Reorganizing Fund to the corresponding Touchstone Fund as noted below. The Balanced Fund, International Equity Fund, Large Cap Focused Fund and Small Company Fund, each a new series of the Trust, assumed the financial and performance history of the Sentinel Balanced Fund, Sentinel International Equity Fund, Sentinel Common Stock Fund and Sentinel Small Company Fund, respectively. The tax-free reorganizations took place on October 27, 2017.

 

 C: 
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Notes to Financial Statements (Unaudited) (Continued)

 

      Net   Shares 
Reorganizing Funds  Touchstone Funds*  Assets   Outstanding 
Sentinel Balanced Fund  Balanced Fund  $331,423,150    15,092,088 
Sentinel International Equity Fund  International Equity Fund   203,883,053    10,805,595 
Sentinel Common Stock Fund  Large Cap Focused Fund   1,895,170,925    40,069,142 
Sentinel Small Company Fund  Small Company Fund   1,214,732,067    230,307,818 

 

*Class A, Class C, and Class I shares of the Reorganizing Funds were exchanged for Class A, Class C and Class Y shares, respectively, of the corresponding Touchstone Fund. Class R6 shares of the Sentinel Common Stock Fund were exchanged for Institutional Class shares of the Large Cap Focused Fund. Class R6 shares of the Sentinel Small Company Fund were exchanged for Class R6 shares of the Small Company Fund. On October 30, 2017, the International Equity Fund and Small Company Fund began issuing Institutional Class shares.

 

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.

 

 C: 
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Other Items (Unaudited)

 

Proxy Voting Guidelines and Proxy Voting Records

 

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, which will be filed by August 31 of that year, 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. Effective March 2019, this information will be filed on Form N-PORT and will be publicly available 60 days after the end of the period. The complete listing of each Fund’s portfolio holdings is available on the Commission’s website and will be made available to shareholders upon request by calling 1.800.543.0407.

 

Schedule of Shareholder Expenses

 

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, such as sales charges (loads); 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 (July 1, 2018 through December 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 December 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 Funds’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

 

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

 

 C: 
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Other Items (Unaudited) (Continued)

 

total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

                  Expenses 
      Net Expense   Beginning   Ending   Paid During 
      Ratio   Account   Account   the Six Months 
      Annualized   Value   Value   Ended 
      December 31,   July 1,   December 31,   December 31, 
      2018   2018   2018   2018* 
Touchstone Balanced Fund                    
Class A  Actual   1.01%  $1,000.00   $965.70   $5.00 
Class A  Hypothetical   1.01%  $1,000.00   $1,020.11   $5.14 
                        
Class C  Actual   1.78%  $1,000.00   $962.50   $8.80 
Class C  Hypothetical   1.78%  $1,000.00   $1,016.23   $9.05 
                        
Class Y  Actual   0.81%  $1,000.00   $967.00   $4.02 
Class Y  Hypothetical   0.81%  $1,000.00   $1,021.12   $4.13 
                        
Touchstone Credit Opportunities Fund                    
Class A  Actual   1.79%  $1,000.00   $970.10   $8.89**
Class A  Hypothetical   1.79%  $1,000.00   $1,016.18   $9.10**
                        
Class C  Actual   2.54%  $1,000.00   $968.00   $12.60**
Class C  Hypothetical   2.54%  $1,000.00   $1,012.40   $12.88**
                        
Class Y  Actual   1.54%  $1,000.00   $972.30   $7.66**
Class Y  Hypothetical   1.54%  $1,000.00   $1,017.44   $7.83**
                        
Institutional Class  Actual   1.44%  $1,000.00   $971.80   $7.16**
Institutional Class  Hypothetical   1.44%  $1,000.00   $1,017.95   $7.32**
                        
Touchstone International Equity Fund                    
Class A  Actual   1.28%  $1,000.00   $888.20   $6.09 
Class A  Hypothetical   1.28%  $1,000.00   $1,018.75   $6.51 
                        
Class C  Actual   2.21%  $1,000.00   $884.10   $10.50 
Class C  Hypothetical   2.21%  $1,000.00   $1,014.06   $11.22 
                        
Class Y  Actual   0.99%  $1,000.00   $889.50   $4.71 
Class Y  Hypothetical   0.99%  $1,000.00   $1,020.21   $5.04 
                        
Institutional Class  Actual   0.89%  $1,000.00   $890.20   $4.24 
Institutional Class  Hypothetical   0.89%  $1,000.00   $1,020.72   $4.53 
                        
Touchstone International Growth Opportunities Fund                
Class A  Actual   1.24%  $1,000.00   $794.40   $5.61 
Class A  Hypothetical   1.24%  $1,000.00   $1,018.95   $6.31 
                        
Class C  Actual   1.99%  $1,000.00   $791.30   $8.98 
Class C  Hypothetical   1.99%  $1,000.00   $1,015.17   $10.11 
                        
Class Y  Actual   0.99%  $1,000.00   $795.00   $4.48 
Class Y  Hypothetical   0.99%  $1,000.00   $1,020.21   $5.04 
                        
Institutional Class  Actual   0.89%  $1,000.00   $795.80   $4.03 
Institutional Class  Hypothetical   0.89%  $1,000.00   $1,020.72   $4.53 

 

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Other Items (Unaudited) (Continued)

 

                  Expenses 
      Net Expense   Beginning   Ending   Paid During 
      Ratio   Account   Account   the Six Months 
      Annualized   Value   Value   Ended 
      December 31,   July 1,   December 31,   December 31, 
      2018   2018   2018   2018* 
Touchstone International Small Cap Fund                    
Class A  Actual   1.55%  $1,000.00   $794.70   $7.01 
Class A  Hypothetical   1.55%  $1,000.00   $1,017.39   $7.88 
                        
Class C  Actual   2.30%  $1,000.00   $791.70   $10.39 
Class C  Hypothetical   2.30%  $1,000.00   $1,013.61   $11.67 
                        
Class Y  Actual   1.30%  $1,000.00   $796.10   $5.89 
Class Y  Hypothetical   1.30%  $1,000.00   $1,018.65   $6.61 
                        
Institutional Class  Actual   1.18%  $1,000.00   $796.20   $5.34 
Institutional Class  Hypothetical   1.18%  $1,000.00   $1,019.26   $6.01 
                        
Touchstone Large Cap Focused Fund                    
Class A  Actual   0.96%  $1,000.00   $940.20   $4.69 
Class A  Hypothetical   0.96%  $1,000.00   $1,020.37   $4.89 
                        
Class C  Actual   1.77%  $1,000.00   $936.30   $8.64 
Class C  Hypothetical   1.77%  $1,000.00   $1,016.28   $9.00 
                        
Class Y  Actual   0.72%  $1,000.00   $941.50   $3.52 
Class Y  Hypothetical   0.72%  $1,000.00   $1,021.58   $3.67 
                        
Institutional Class  Actual   0.65%  $1,000.00   $941.80   $3.18 
Institutional Class  Hypothetical   0.65%  $1,000.00   $1,021.93   $3.31 
                        
Touchstone Large Cap Fund                   
Class A  Actual   1.12%  $1,000.00   $943.70   $5.49 
Class A  Hypothetical   1.12%  $1,000.00   $1,019.56   $5.70 
                        
Class C  Actual   1.87%  $1,000.00   $940.20   $9.14 
Class C  Hypothetical   1.87%  $1,000.00   $1,015.78   $9.50 
                        
Class Y  Actual   0.87%  $1,000.00   $944.90   $4.26 
Class Y  Hypothetical   0.87%  $1,000.00   $1,020.82   $4.43 
                        
Institutional Class  Actual   0.77%  $1,000.00   $945.30   $3.78 
Institutional Class  Hypothetical   0.77%  $1,000.00   $1,021.32   $3.92 
                        
Touchstone Large Company Growth Fund                   
Class A  Actual   1.23%  $1,000.00   $894.00   $5.87 
Class A  Hypothetical   1.23%  $1,000.00   $1,019.00   $6.26 
                        
Class C  Actual   1.98%  $1,000.00   $890.50   $9.43 
Class C  Hypothetical   1.98%  $1,000.00   $1,015.22   $10.06 
                        
Class Y  Actual   0.98%  $1,000.00   $895.20   $4.68 
Class Y  Hypothetical   0.98%  $1,000.00   $1,020.27   $4.99 
                        
Institutional Class  Actual   0.88%  $1,000.00   $895.50   $4.20 
Institutional Class  Hypothetical   0.88%  $1,000.00   $1,020.77   $4.48 

 

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Other Items (Unaudited) (Continued)

 

                  Expenses 
      Net Expense   Beginning   Ending   Paid During 
      Ratio   Account   Account   the Six Months 
      Annualized   Value   Value   Ended 
      December 31,   July 1,   December 31,   December 31, 
      2018   2018   2018   2018* 
Touchstone Ohio Tax-Free Bond Fund                    
Class A  Actual   0.85%  $1,000.00   $1,012.20   $4.31 
Class A  Hypothetical   0.85%  $1,000.00   $1,020.92   $4.33 
                        
Class C  Actual   1.60%  $1,000.00   $1,009.30   $8.10 
Class C  Hypothetical   1.60%  $1,000.00   $1,017.14   $8.13 
                        
Class Y  Actual   0.60%  $1,000.00   $1,014.40   $3.05 
Class Y  Hypothetical   0.60%  $1,000.00   $1,022.18   $3.06 
                        
Institutional Class  Actual   0.55%  $1,000.00   $1,014.60   $2.79 
Institutional Class  Hypothetical   0.55%  $1,000.00   $1,022.43   $2.80 
                        
Touchstone Small Company Fund                    
Class A  Actual   1.11%  $1,000.00   $863.20   $5.21 
Class A  Hypothetical   1.11%  $1,000.00   $1,019.61   $5.65 
                        
Class C  Actual   1.86%  $1,000.00   $858.60   $8.71 
Class C  Hypothetical   1.86%  $1,000.00   $1,015.83   $9.45 
                        
Class Y  Actual   0.84%  $1,000.00   $863.70   $3.95 
Class Y  Hypothetical   0.84%  $1,000.00   $1,020.97   $4.28 
                        
Institutional Class  Actual   0.79%  $1,000.00   $862.40   $3.71 
Institutional Class  Hypothetical   0.79%  $1,000.00   $1,021.22   $4.02 
                        
Class R6  Actual   0.73%  $1,000.00   $865.60   $3.43 
Class R6  Hypothetical   0.73%  $1,000.00   $1,021.53   $3.72 
                     
Touchstone Value Fund                    
Class A  Actual   1.08%  $1,000.00   $944.70   $5.29 
Class A  Hypothetical   1.08%  $1,000.00   $1,019.76   $5.50 
                        
Class C  Actual   1.83%  $1,000.00   $940.70   $8.95 
Class C  Hypothetical   1.83%  $1,000.00   $1,015.98   $9.30 
                        
Class Y  Actual   0.80%  $1,000.00   $945.30   $3.92 
Class Y  Hypothetical   0.80%  $1,000.00   $1,021.17   $4.08 
                        
Institutional Class  Actual   0.68%  $1,000.00   $946.70   $3.34 
Institutional Class  Hypothetical   0.68%  $1,000.00   $1,021.78   $3.47 

 

* Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (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 $8.39, $12.10, $7.16 and $6.66, respectively, and your hypothetical cost of investment in Class A, Class C, Class Y and Institutional Class would be $8.59, $12.38, $7.32 and $6.82, respectively.

 

Advisory and Sub-Advisory Agreement Approval Disclosure

 

At a meeting held on November 15, 2018, the Board of Trustees (the “Board” or “Trustees”) of the Touchstone Strategic Trust (the “Trust”), and by a separate vote, the Independent Trustees of the Trust, approved the continuance

 

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Other Items (Unaudited) (Continued)

 

of the Investment Advisory Agreement between the Trust and the Advisor with respect to each Fund of the Trust, and the continuance of the 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 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 one 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 periodic compliance due diligence of 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. The Board noted that the Advisor’s compliance monitoring processes also include quarterly reviews of compliance certifications, 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.

 

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Other Items (Unaudited) (Continued)

 

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 certain 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 had waived a portion of advisory fees and administrative fees and/or reimbursed expenses in order to limit each Fund’s net operating expenses. The Board also noted that the Advisor pays the Sub-Advisors’ sub-advisory fees out of the advisory fees the Advisor receives from the Funds. The Board reviewed the profitability of the Advisor’s relationship with the Funds both before and after tax expenses, and also considered whether the Advisor has the financial wherewithal to continue to provide services to the Funds, noting the ongoing commitment of the Advisor’s parent company with respect to providing support and resources as needed. The Board also considered that the Funds’ distributor, an affiliate of the Advisor, receives Rule 12b-1 distribution fees from the Funds and receives a portion of the sales charges on sales or redemptions of certain classes of shares. The Board also noted that the Advisor derives benefits to its reputation and other benefits from its association with the Funds.

 

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 September 30, 2018, 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 the Funds in order to reduce those 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 total 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 Balanced 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 and/or reimbursing a portion of the Fund’s fees and/or expenses. The Fund’s performance for the six-, twelve- and thirty-six-month periods ended September 30, 2018 was in the 1st quintile of its peer group. 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 from the Advisor and the other factors considered.

 

Touchstone Credit Opportunities 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 and/or reimbursing a portion of the Fund’s fees and/or expenses. The Fund’s performance

 

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Other Items (Unaudited) (Continued)

 

for the six- and thirty-six-month periods ended September 30, 2018 was in the 1st quintile of its peer group, while the Fund’s performance for the twelve-month period ended September 30, 2018 was in the 2nd quintile of its peer group. 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 from the Advisor and the other factors considered.

 

Touchstone International Equity Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were below the median and at the median, respectively, of its peer group. The Board noted that the Advisor was currently waiving and/or reimbursing a portion of the Fund’s fees and/or expenses. The Fund’s performance for the six- and twelve-month periods ended September 30, 2018 was in the 4th quintile of its peer group, while the Fund’s performance for the thirty-six-month period ended September 30, 2018 was in the 5th quintile of its peer group. The Board noted management’s discussion of the Fund’s performance, including both its recent and long-term 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 from the Advisor and the other factors considered.

 

Touchstone International Growth Opportunities 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 and/or reimbursing a portion of the Fund’s fees and/or expenses. The Fund’s performance for the six- and twelve-month periods ended September 30, 2018 was in the 5th quintile of its peer group, while the Fund’s performance for the thirty-six-month period ended September 30, 2018 was in the 3rd quintile of its peer group. The Board took into consideration changes made to the Fund’s principal investment strategies in April 2018 to reflect an international strategy rather than a global strategy. 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 from the Advisor and the other factors considered.

 

Touchstone International Small Cap 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 and/or reimbursing a portion of the Fund’s fees and/or expenses. The Fund’s performance for the six-month period ended September 30, 2018 was in the 4th quintile of its peer group, while the Fund’s performance for the twelve- and thirty-six-month periods ended September 30, 2018 was in the 5th quintile of its peer group. The Board noted management’s discussion of the Fund’s performance, including both its recent and long-term 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 from the Advisor and the other factors considered.

 

Touchstone Large Cap 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 and/or reimbursing a portion of the Fund’s fees and/or expenses. The Fund’s performance for the six- and thirty-six-month periods ended September 30, 2018 was in the 4th quintile of its peer group, while the Fund’s performance for the twelve-month period ended September 30, 2018 was in the 3rd quintile of its peer group. The Board noted management’s discussion of the Fund’s performance, including both its recent and long-term 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

 

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Other Items (Unaudited) (Continued)

 

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

 

Touchstone Large Cap Focused 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 and/or reimbursing a portion of the Fund’s fees and/or expenses. The Fund’s performance for the six-month period ended September 30, 2018 was in the 2nd quintile of its peer group, while the Fund’s performance for the twelve- and thirty-six-month periods ended September 30, 2018 was in the 1st quintile of its peer group. 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 from the Advisor and the other factors considered.

 

Touchstone Large Company Growth Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were above the median of its peer group. The Board noted that the Advisor was currently waiving and/or reimbursing a portion of the Fund’s fees and/or expenses. The Fund’s performance for the six- and twelve-month periods ended September 30, 2018 was in the 5th quintile of its peer group, while the Fund’s performance for the thirty-six-month period ended September 30, 2018 was in the 4th quintile of its peer group. The Board noted management’s discussion of the Fund’s performance, including both its recent and long-term 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 from the Advisor and the other factors considered.

 

Touchstone Ohio Tax-Free Bond 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 and/or reimbursing a portion of the Fund’s fees and/or expenses. The Fund’s performance for the six- month period ended September 30, 2018 was in the 4th quintile of its peer group, the Fund’s performance for the twelve-month period ended September 30, 2018 was in the 2nd quintile of its peer group and the Fund’s performance for the thirty-six-month period ended September 30, 2018 was in the 3rd quintile of its peer group. 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 from the Advisor and the other factors considered.

 

Touchstone Small Company 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 and/or reimbursing a portion of the Fund’s fees and/or expenses. The Fund’s performance for the six- and twelve-month periods ended September 30, 2018 was in the 3rd quintile of its peer group, while the Fund’s performance for the thirty-six-month period ended September 30, 2018 was in the 2nd quintile of its peer group. 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 from the Advisor and the other factors considered.

 

Touchstone Value 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 and/or reimbursing a portion of the Fund’s fees and/or expenses. The Fund’s performance for the six- and twelve-month periods ended September 30, 2018 was in the 1st quintile of its peer group, while the Fund’s performance for the thirty-six-month period ended September 30, 2018

 

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Other Items (Unaudited) (Continued)

 

was in the 3rd quintile of its peer group. 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 from the Advisor 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 all but three 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 each Fund that did not currently have such breakpoints in its advisory fee schedule. The Board determined that adding breakpoints at specified levels to the advisory fee schedules of the Funds 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; and (d) each Fund’s advisory fee is reasonable in light of the services received by the Fund from the Advisor and the 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 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 the Sub-Advisor to certain of the Funds with the Advisor, noting any potential conflicts of interest. The Board 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 also 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.

 

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Other Items (Unaudited) (Continued)

 

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 all but three 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 each Sub-Advisor to manage comparable institutional separate accounts, as applicable. 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 Balanced 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 Credit Opportunities 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 International Equity Fund. The Fund’s sub-advisory fee was below the median of its peer group. Based upon their review, the Trustees concluded that the sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.

 

Touchstone International Growth Opportunities 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 International 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 sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.

 

Touchstone Large 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 sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.

 

Touchstone Large Cap Focused 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.

 

 C: 
 125 

 

 

Other Items (Unaudited) (Continued)

 

Touchstone Large Company 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 sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.

 

Touchstone Ohio Tax-Free Bond Fund. The Trustees considered the Fund’s sub-advisory fee relative to the fees paid by other funds to their sub-advisors. 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 Small Company Fund. The Fund’s sub-advisory fee was below 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 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 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 September 30, 2018, 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 also 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; (d) each Fund’s sub-advisory fee is 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 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.

 

 C: 
 126 

 

 

PRIVACY PROTECTION POLICY

 

We Respect Your Privacy

 

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

 

Our Pledge to Our Clients

 

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

 

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

 

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

 

We Collect the Following Nonpublic Personal Information About You:

 

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

 

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

 

Categories of Information We Disclose and Parties to Whom We Disclose

 

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

 

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

 

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

 

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

 

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

 

We will not sell your personal information to anyone.

 

We May Provide Information to Service Your Account

 

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

 

This policy is applicable to the following affiliated companies: Touchstone Funds Group Trust, Touchstone 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.

 

 C: 
 127 

 

 

 

 

 

 

 

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-54BB-TST-SAR-1812

 

 C: 

 

 

 

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.

 

 C: 

 

 

 

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.

 

 C: 

 

 

 

SIGNATURES

 

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

 

(Registrant) Touchstone Strategic Trust  

 

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

 

Date February 25, 2019  

 

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 February 25, 2019  

 

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

 

Date February 25, 2019  

 

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

 

 C: 

 


Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘N-CSRS’ Filing    Date    Other Filings
1/1/21
12/15/19
10/29/19
Filed on / Effective on:3/1/19
2/25/19
For Period End:12/31/18N-Q
11/30/18497,  N-CSRS
11/15/18497,  497K
11/5/18
9/30/18N-CSRS,  N-Q
9/21/18
8/17/18
7/1/18
6/30/1824F-2NT,  N-CEN,  N-CSR,  N-CSRS,  N-PX,  N-Q
12/31/1724F-2NT,  N-CSR,  N-CSRS,  N-Q,  NSAR-A,  NSAR-B
11/30/1724F-2NT,  N-CSR,  NSAR-B
10/30/17485BPOS,  497K
10/28/17
10/27/17485BPOS,  485BXT
6/30/1724F-2NT,  N-CSR,  N-CSRS,  N-PX,  N-Q,  NSAR-A,  NSAR-B
3/28/17
8/31/16
8/15/16485BPOS,  497K
6/30/1624F-2NT,  N-CSR,  N-CSRS,  N-PX,  N-Q,  NSAR-A,  NSAR-B
1/1/16
11/30/15
9/1/15
6/30/1524F-2NT,  N-CSR,  N-CSRS,  N-PX,  N-Q,  NSAR-A,  NSAR-B
6/26/15
1/26/15
12/23/14
11/30/14
7/10/14497K
 List all Filings 
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