ck0000711080-20220630
October 28,
2022
Prospectus
Touchstone
Strategic Trust
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Class A |
|
Class C |
|
Class Y |
|
Institutional Class |
| Class
R6 |
Touchstone
Balanced Fund |
SEBLX |
| SBACX |
| SIBLX |
|
|
| TBARX |
Touchstone
Core Municipal Bond Fund |
TOHAX |
| TOHCX |
| TOHYX |
| TOHIX |
| |
Touchstone
International Equity Fund |
SWRLX |
| SWFCX |
| SIIEX |
| TOIIX |
| |
Touchstone
International Growth Fund |
TNSAX |
|
TNSCX |
| TNSYX |
| TNSIX |
| |
Touchstone
Large Cap Focused Fund |
SENCX |
| SCSCX |
| SICWX |
| SCRLX |
| TSRLX |
Touchstone
Large Cap Fund |
TACLX |
|
TFCCX |
| TLCYX |
| TLCIX |
| |
Touchstone
Large Company Growth Fund |
TSAGX |
| TCGLX |
| TLGYX |
| DSMLX |
| |
Touchstone
Small Company Fund |
SAGWX |
| SSCOX |
| SIGWX |
| TICSX |
| SSRRX |
Touchstone
Value Fund |
TVLAX |
|
TVLCX |
| TVLYX |
| TVLIX |
| TVLRX |
The
Securities and Exchange Commission has not approved or disapproved these
securities or determined if this prospectus is accurate or complete. Any
representation to the contrary is a criminal offense.
Table
of Contents
|
|
|
|
| |
|
Page |
| |
TOUCHSTONE
BALANCED FUND SUMMARY |
|
TOUCHSTONE
CORE MUNICIPAL BOND FUND SUMMARY |
|
TOUCHSTONE
INTERNATIONAL EQUITY FUND SUMMARY |
|
TOUCHSTONE
INTERNATIONAL GROWTH FUND SUMMARY |
|
TOUCHSTONE
LARGE CAP FOCUSED FUND SUMMARY |
|
TOUCHSTONE
LARGE CAP FUND SUMMARY |
|
TOUCHSTONE
LARGE COMPANY GROWTH FUND SUMMARY |
|
TOUCHSTONE
SMALL COMPANY FUND SUMMARY |
|
TOUCHSTONE
VALUE FUND SUMMARY |
|
PRINCIPAL
INVESTMENT STRATEGIES AND RISKS |
|
THE
FUNDS’ MANAGEMENT |
|
CHOOSING
A CLASS OF SHARES |
|
DISTRIBUTION
AND SHAREHOLDER SERVICING ARRANGEMENTS |
|
INVESTING
WITH TOUCHSTONE |
|
DISTRIBUTIONS
AND TAXES |
|
FINANCIAL
HIGHLIGHTS |
|
APPENDIX
A — INTERMEDIARY-SPECIFIC SALES CHARGE WAIVERS AND DISCOUNTS |
|
TOUCHSTONE BALANCED FUND
SUMMARY
The Fund’s Investment
Goal
The Touchstone Balanced Fund
(the “Fund”) seeks capital appreciation and current
income.
The Fund’s Fees and
Expenses
This
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
You may qualify for sales charge discounts
for Class A shares of Touchstone equity funds and Touchstone fixed income
funds if you and your family invest, or agree to invest in the future, at least
$25,000 or $50,000, respectively, in Touchstone
funds. More information about these and other discounts is
available from your financial professional, in the section titled “Choosing a
Class of Shares” in the Fund’s prospectus and Statement of Additional
Information ("SAI") on page 77 and 78, respectively, and in Appendix
A–Intermediary-Specific Sales Charge Waivers and Discounts to
the Fund's prospectus. An
investor transacting in Class R6 shares, which do not have any front-end sales
charge, contingent deferred sales charge, or other asset-based fee for sales or
distribution, may be required to pay a commission to a broker for effecting such
transactions on an agency basis. Such commissions are not reflected in the table
or in the "Example" below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Class A |
| Class C |
| Class Y |
|
Class
R6 |
|
Shareholder Fees (fees paid directly from
your investment) |
|
| |
| |
|
| |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.00% |
| None |
| None |
| None |
|
Maximum
Deferred Sales Charge (Load) (as a percentage of original purchase price
or the amount redeemed, whichever is less) |
None |
| 1.00% |
| None |
| None |
|
Wire
Redemption Fee |
Up
to $15 |
|
Up
to $15 |
|
Up
to $15 |
|
Up
to $15 |
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your
investment) |
|
| |
| |
|
| |
Management
Fees |
0.48% |
| 0.48% |
| 0.48% |
| 0.48% |
|
Distribution
and/or Shareholder Service (12b-1) Fees |
0.25% |
| 1.00% |
| None |
| None |
|
Other
Expenses |
0.26% |
| 0.27% |
| 0.27% |
| 33.50% |
|
Acquired
Fund Fees and Expenses |
0.01% |
| 0.01% |
| 0.01% |
| 0.01% |
|
Total
Annual Fund Operating Expenses(1) |
1.00% |
| 1.76% |
| 0.76% |
| 33.99% |
|
Fee
Waiver and/or Expense Reimbursement(2) |
0.00% |
| 0.00% |
| 0.00% |
| (33.34)% |
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement(1)(2) |
1.00% |
| 1.76% |
| 0.76% |
(3) |
0.65% |
|
___________________________________________
(1)Total Annual Fund
Operating Expenses include Acquired Fund Fees and Expenses and will differ from
the ratios of expenses to average net assets that are included in the Fund’s
annual report for the fiscal year ended June 30,
2022.
(2)Touchstone
Advisors, Inc. (the "Advisor" or "Touchstone Advisors") and Touchstone
Strategic Trust (the “Trust”) have entered into a contractual expense limitation
agreement whereby Touchstone Advisors will waive a portion of its fees or
reimburse certain Fund expenses (excluding dividend and interest expenses
relating to short sales; interest; taxes; brokerage commissions and other
transaction costs; portfolio transaction and investment related expenses,
including expenses associated with the Fund's liquidity providers; other
expenditures which are capitalized in accordance with U.S. generally accepted
accounting principles; the cost of “Acquired Fund Fees and Expenses”, if any;
and other extraordinary expenses not incurred in the ordinary course of
business) in order to limit annual Fund operating expenses to 1.01%, 1.78%,
0.81%, and 0.64% of average daily net assets for Classes A, C, Y, and R6 shares,
respectively. This contractual expense limitation is effective through
October 29,
2023, but can be
terminated by a vote of the Board of Trustees of the Trust (the “Board”) if it
deems the termination to be beneficial to the Fund’s shareholders. The terms of
the contractual expense limitation agreement provide that Touchstone Advisors is
entitled to recoup, subject to approval by the 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 Fund. The Fund will make
repayments to the Advisor only if such repayment does not cause the annual Fund
operating expenses (after the repayment is taken into account) to exceed both
(1) the expense cap in place when such amounts were waived or reimbursed and (2)
the Fund’s current expense limitation.
(3)Expenses shown above do
not reflect Touchstone Advisors' recoupment of previously waived and/or
reimbursed expenses and will differ from the net expenses shown in the Fund’s
annual report for the fiscal year ended June 30,
2022.
Example.
This example is intended to help
you compare the cost of investing in the Fund with the cost of investing in
other mutual funds. The example assumes that you invest $10,000 in the Fund for
the time periods indicated and then, except as indicated, redeem all of your
shares at the end of those periods. The example also assumes that your
investment has a 5% return
each year, that the Fund’s operating
expenses remain the same and that all fee waivers or expense limits for the Fund
will expire after one year. Although your actual costs may be higher or
lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Assuming Redemption at End of Period |
Assuming No Redemption |
|
Class A |
| Class C |
| Class Y |
| Class R6 |
| Class C |
1
Year |
$ |
597 |
|
| $ |
279 |
|
| $ |
78 |
|
| $ |
66 |
|
| $ |
179 |
|
3
Years |
$ |
802 |
|
| $ |
554 |
|
| $ |
243 |
|
| $ |
5,253 |
|
| $ |
554 |
|
5
Years |
$ |
1,025 |
|
| $ |
954 |
|
| $ |
422 |
|
| $ |
7,868 |
|
| $ |
954 |
|
10
Years |
$ |
1,663 |
|
| $ |
2,073 |
|
| $ |
942 |
|
| $ |
10,047 |
|
| $ |
2,073 |
|
Portfolio
Turnover.
The Fund pays transaction
costs, such as brokerage commissions, when it buys and sells securities (or
“turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not
reflected in total annual Fund operating expenses or in the example, affect the
Fund’s performance. During the most recent fiscal year, the Fund’s
portfolio turnover rate was 92% of the average value of its
portfolio.
The Fund’s Principal Investment
Strategies
The
Fund seeks to achieve its investment goal by investing primarily in a
diversified portfolio of fixed-income and equity securities. The following table
details, under normal circumstances, how the Fund generally expects to allocate
its assets among equity and fixed-income, as of the date of this
prospectus.
Allocations
Approximate
Target Allocation
Equity
60%
Fixed-Income
40%
With
respect to equities, the Fund invests primarily in issuers having a market
capitalization, at the time of purchase, above $5 billion. Equity securities
include common stock and preferred stock. These securities may be listed on an
exchange or traded over-the-counter. Up to 35% of the Fund’s equity sleeve may
be invested in securities of foreign issuers through the use of ordinary shares
or depositary receipts such as American Depositary Receipts (“ADRs”). The Fund
may also invest in equity securities of emerging market countries. Emerging
market countries are generally countries that are included in the Morgan Stanley
Capital International (“MSCI”) Emerging Markets Index.
With
respect to fixed-income securities, the Fund will invest primarily in bonds,
including mortgage-related securities, asset-backed securities, government
securities (both U.S. government securities and foreign sovereign debt), and
corporate debt securities. Fort Washington Investment Advisors, Inc. ("Fort
Washington"), the Fund's sub-advisor, investment-grade debt securities rated as
low as B by a Nationally Recognized Statistical Rating Organization
(“NRSRO”). Non-investment-grade debt securities are often referred to as
“junk bonds” and are considered speculative.
The
Fund may engage in frequent and active trading as part of its principal
investment strategies. Additionally, in order to implement its investment
strategy, the Fund may invest in mortgage dollar-roll transactions, and in
derivatives, including forwards, futures contracts, interest rate and credit
default swap agreements, and options. Mortgage “dollar rolls” are transactions
in which mortgage-backed securities are sold for delivery in the current month
and the seller simultaneously contracts to repurchase substantially similar
securities on a specified future date. These investments may be used to gain or
hedge market exposure, to adjust the Fund’s duration, to manage interest rate
risk, and for any other purposes consistent with the Fund’s investment
strategies and limitations.
Fort
Washington, subject to approval by the Fund’s Advisor, may change the Fund’s
target allocation to each asset class (or to additional asset classes) without
prior approval from or notice to shareholders.
The Fund’s Principal Risks
The Fund’s share price will
fluctuate. You could lose money on your investment in the Fund and
the Fund could also return less than other investments.
Investments in the Fund are not
bank guaranteed, are not deposits, and are not insured by the Federal Deposit
Insurance Corporation (the "FDIC") or any other federal government
agency.
As
with any mutual fund, there is no guarantee that the Fund will achieve its
investment goal. You can find more information about the Fund’s
investments and risks under the “Principal Investment Strategies and Risks”
section of the Fund’s prospectus. The Fund is subject to the principal risks
summarized below.
Equity
Securities Risk:
The
Fund is subject to the risk that stock prices will fall over short or extended
periods of time. Individual companies may report poor results or be negatively
affected by industry and/or economic trends and developments, or as a result of
irregular and/or unexpected trading activity among retail investors. The prices
of securities issued by these companies may decline in response to such
developments, which could result in a decline in the value of the Fund’s
shares.
•Large-Cap
Risk:
Large-cap
companies may be unable to respond quickly to new competitive challenges, such
as changes in technology and consumer tastes, and also may not be able to attain
the high growth rate of successful smaller companies, especially during extended
periods of economic expansion.
•Mid-Cap
Risk:
Stocks of mid-sized companies may be subject to more abrupt or erratic market
movements than stocks of larger, more established companies. Mid-sized companies
may have limited product lines or financial resources, and may be dependent upon
a particular niche of the market.
•Preferred
Stock Risk:
In the event an issuer is liquidated or declares bankruptcy, the claims of
owners of bonds take precedence over the claims of those who own preferred and
common stock. If interest rates rise, the fixed dividend on preferred stocks may
be less attractive, causing the price of preferred stocks to
decline.
Fixed-Income
Risk: The
market value of the Fund’s fixed-income securities responds to economic
developments, particularly interest rate changes, as well as to perceptions
about the creditworthiness of individual issuers, including governments.
Generally, the Fund’s fixed-income securities will decrease in value if interest
rates rise and increase in value if interest rates fall. Normally, the longer
the maturity or duration of the fixed-income securities the Fund owns, the more
sensitive the value of the Fund’s shares will be to changes in interest
rates.
•Asset-Backed
Securities Risk:
Asset-backed securities are fixed-income securities backed by other assets such
as credit card, automobile or consumer loan receivables, retail installment
loans, or participations in pools of leases. The values of these securities are
sensitive to changes in the credit quality of the underlying collateral, the
credit strength of any credit enhancement feature, changes in interest rates,
and, at times, the financial condition of the issuer.
•Credit
Risk:
The
fixed-income securities in the Fund’s portfolio are subject to the possibility
that a deterioration, whether sudden or gradual, in the financial condition of
an issuer, or a deterioration in general economic conditions, could cause an
issuer to fail to make timely payments of principal or interest, when due. This
may cause the issuer’s securities to decline in value.
•Interest
Rate Risk: In
general, when interest rates rise, the prices of debt securities fall, and when
interest rates fall, the prices of debt securities rise. 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 used to
determine the sensitivity of a security’s price to changes in interest rates
that incorporates a security’s yield, coupon, final maturity, and call features,
among other characteristics. The longer a fixed-income security’s duration, the
more sensitive it will be to changes in interest rates. Maturity, on the other
hand, is the date on which a fixed-income security becomes due for payment of
principal. Recent and potential future changes in government policy may affect
interest rates.
•Investment-Grade
Debt Securities Risk:
Investment-grade
debt securities may be downgraded by a nationally recognized statistical rating
organization ("NRSRO") to below-investment-grade status, which would increase
the risk of holding these securities. Investment-grade debt securities rated in
the lowest rating category by a NRSRO involve a higher degree of risk than
fixed-income securities with higher credit ratings.
•Mortgage-Backed
Securities Risk:
Mortgage-backed securities are fixed-income securities representing an interest
in a pool of underlying mortgage loans. Mortgage-backed securities are sensitive
to changes in interest rates, but may respond to these changes differently from
other fixed-income securities due to the possibility of prepayment of the
underlying mortgage loans. Mortgage-backed securities may fluctuate in price
based on deterioration in the value of the collateral underlying the pool of
mortgage loans, which may result in the collateral being worth less than the
remaining principal amount owed on the mortgages in the pool.
•Non-Investment-Grade
Debt Securities Risk: Non-investment-grade
debt securities are sometimes referred to as “junk bonds” and are considered
speculative with respect to their issuers’ ability to make payments of interest
and principal. There is a high risk that the Fund could suffer a loss from
investments in non-investment-grade debt securities caused by the default of an
issuer of such securities. Non-investment-grade debt securities may also be less
liquid than investment-grade debt securities.
•Prepayment
Risk:
The risk that a debt security may be paid off and proceeds reinvested earlier
than anticipated. Prepayment impacts both the interest rate sensitivity of the
underlying asset, such as an asset-backed or mortgage-backed security and its
cash flow projections. Therefore, prepayment risk may make it difficult to
calculate the average duration of the Fund’s asset- or mortgage-backed
securities which in turn would make it difficult to assess the interest rate
risk of the Fund.
•U.S.
Government Securities Risk: Certain
U.S. government securities are backed by the right of the issuer to borrow from
the U.S. Treasury while others are supported only by the credit of the issuer or
instrumentality. While the U.S. government is able to provide financial
support to U.S. government-sponsored agencies or instrumentalities, no assurance
can be given that it will always do so. Such securities are generally neither
issued nor guaranteed by the U.S. Treasury.
Management
Risk:
In
managing the Fund’s portfolio, the Advisor engages one or more sub-advisors to
make investment decisions for a portion of or the entire portfolio. There is a
risk that the Advisor may be unable to identify and retain sub-advisors who
achieve superior investment returns relative to other similar
sub-advisors.
Derivatives
Risk:
The use of derivatives may expose the Fund to additional risks that it would not
be subject to if it invested directly in the securities underlying those
derivatives. Risks associated with derivatives may include the risk that the
derivative does not correlate well with the security, index, or currency to
which it relates, the risk that the Fund will be unable to sell or close out the
derivative due to an illiquid market, the risk that the counterparty may be
unwilling or unable to meet its obligations, and the risk that the derivative
could expose the Fund to the risk of magnified losses resulting from leverage.
These additional risks could cause the Fund to experience losses to which it
would otherwise not be subject.
•Leverage
Risk:
Leverage occurs when the Fund uses borrowings, derivatives (such as futures or
options), or similar instruments or techniques to gain exposure to investments
in an amount that exceeds the Fund's initial investment. The use of leverage
magnifies changes in the Fund's net asset value and thus may result in increased
portfolio volatility and increased risk of loss. Leverage can create an interest
expense that may lower the Fund’s overall returns. There can be no guarantee
that a leveraging strategy will be successful.
•Futures
Contracts Risk:
The
risks associated with the Fund’s futures positions include liquidity and
counterparty risks associated with derivative instruments.
•Options
Risk:
Options
trading is a highly specialized activity that involves investment techniques and
risks different from those associated with ordinary portfolio securities
transactions. The value of options can be highly volatile, and their use can
result in loss if the sub-advisor is incorrect in its expectation of price
fluctuations. Options, whether exchange traded or over-the-counter, may also be
illiquid.
•Swap
Agreements Risk:
Swap agreements (“swaps”) are individually negotiated and structured to include
exposure to a variety of different types of investments or market factors. Swaps
may increase or decrease the overall volatility of the investments of the Fund
and its share price. The performance of swaps 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. A swap can be a form of leverage, which can
magnify the Fund’s gains or losses.
•Forward
Foreign Currency Exchange Contract Risk:
A forward foreign currency exchange contract is an agreement to buy or sell a
specific currency at a future date and at a price set at the time of the
contract. Forward foreign currency exchange contracts may reduce the risk of
loss from a change in value of a currency, but they also limit any potential
gains and do not protect against fluctuations in the value of the underlying
position.
Economic
and Market Events Risk:
Events in the U.S. and global financial markets, including actions taken by the
U.S. Federal Reserve or foreign central banks to stimulate or stabilize economic
growth, may at times, and for varying periods of time, result in unusually high
market volatility, which could negatively impact the Fund’s performance and
cause the Fund to experience illiquidity, shareholder redemptions, or other
potentially adverse effects. Reduced liquidity in credit and fixed-income
markets could negatively affect issuers worldwide. Financial institutions could
suffer losses as interest rates rise or
economic
conditions deteriorate. In addition, the Funds' service providers are
susceptible to operational and information or cyber security risks that could
result in losses to a Fund and its shareholders. Cyber security breaches are
either intentional or unintentional events that allow an unauthorized party to
gain access to Fund assets, customer data, or proprietary information, or cause
a Fund or Fund service provider to suffer data corruption or lose operational
functionality. A cyber security breach could result in the loss or theft of
customer data or funds, loss or theft of proprietary information or corporate
data, physical damage to a computer or network system, or costs associated with
system repairs, any of which could have a substantial impact on a Fund. Such
incidents could affect issuers in which a Fund invests, thereby causing the
Fund’s investments to lose value.
Foreign
Securities Risk: Investing
in foreign securities poses additional risks since political and economic events
unique in a country or region will affect those markets and their issuers, while
such events may not necessarily affect the U.S. economy or issuers located in
the United States. In addition, investments in foreign securities are generally
denominated in foreign currency. As a result, changes in the value of those
currencies compared to the U.S. dollar may affect (positively or negatively) the
value of the Fund's investments. There are also risks associated with foreign
accounting standards, government regulation, market information, and clearance
and settlement procedures. Foreign markets may be less liquid and more volatile
than U.S. markets and offer less protection to investors.
•Depositary
Receipts Risk:
Foreign
receipts, which include ADRs, Global Depositary Receipts, and European
Depositary Receipts, are securities that evidence ownership interests in a
security or a pool of securities issued by a foreign issuer. The risks of
depositary receipts include many risks associated with investing directly in
foreign securities.
•Emerging
Markets Risk:
Emerging markets may be more likely to experience political turmoil or rapid
changes in market or economic conditions than more developed countries. In
addition, the financial stability of issuers (including governments) in emerging
market countries may be more precarious than that of issuers in other
countries.
•Sovereign
Debt Risk: The
actions of foreign governments concerning their respective economies could have
an important effect on their ability or willingness to service their sovereign
debt. Such actions could have significant effects on market conditions and on
the prices of securities and instruments held by the Fund, including the
securities and instruments of foreign private issuers.
Mortgage
Dollar Roll Risk:
Mortgage “dollar rolls” are transactions in which mortgage-backed securities are
sold for delivery in the current month and the seller simultaneously contracts
to repurchase substantially similar securities on a specified future date. If
the broker-dealer to whom the Fund sells the security becomes insolvent, the
Fund’s right to repurchase the security may be restricted. Other risks involved
in entering into mortgage dollar rolls include the risk that the value of the
security may change adversely over the term of the mortgage dollar roll and that
the security the Fund is required to repurchase may be worth less than the
security that the Fund held.
Portfolio
Turnover Risk: Frequent
and active trading may result in greater expenses to the Fund, which may lower
the Fund's performance and may result in the realization of substantial capital
gains, including net short-term capital gains. As a result, high portfolio
turnover may reduce the Fund's returns.
The Fund’s
Performance
Before
the Fund commenced operations, the assets and liabilities of the Sentinel
Balanced Fund (the “Predecessor Fund”) were transferred to the Fund in a
tax-free reorganization on October 27, 2017 (the “Reorganization”). The
investment objectives, guidelines, and restrictions of the Predecessor Fund were
similar to those of the Fund. The performance information included prior to the
Reorganization is that of the Predecessor Fund.
The
bar chart and performance table below illustrate some indication of the risks
and volatility of an investment in the Fund by showing changes in the Fund’s
performance from calendar year to calendar year and by showing how the Fund’s
average annual total returns for one year, five years, and ten years compare
with a blended index comprised of 60% S&P 500® Index and 40% Bloomberg U.S. Aggregate
Bond Index. The bar chart does not reflect any
sales charges, which would reduce your return. The performance table reflects
any applicable sales charges. Past performance (before and
after taxes) does not necessarily indicate how the Fund will perform in the
future. More recent performance information is available at no
cost by visiting TouchstoneInvestments.com
or by calling 1.800.543.0407.
Touchstone Balanced Fund - Class A Shares Total Return
as of December 31
|
|
|
|
|
|
|
| |
Best Quarter:
2nd Quarter
2020 14.80% |
|
Worst Quarter:
1st Quarter
2020 (11.09)% |
The return of the Fund's Class A
shares for the nine months ended September 30, 2022 was
(21.15)%.
After-tax returns are
calculated using the highest individual marginal federal income tax rates in
effect on a given distribution reinvestment date and do not reflect the impact
of state and local taxes. Your actual after-tax returns may differ from those
shown and depend on your tax situation. The after-tax returns do not
apply to shares held in an individual retirement account ("IRA"), 401(k), or
other tax-advantaged account. The after-tax returns shown in
the table are for Class A shares only. The after-tax returns for other classes
of shares offered by the Fund will differ from the Class A shares' after-tax
returns. The Return After Taxes on
Distributions and Sale of Fund Shares may be greater than other returns for the
same period due to a tax benefit of realizing a capital loss on the sale of Fund
shares.
Class R6 shares commenced operations on
October 28, 2021 and do not have a full calendar year of
performance. Class R6 shares would have had substantially
similar annual returns to Class A, Class C and Class Y shares because the shares
are invested in the same portfolio of securities and the annual returns differ
only to the extent that the share classes do not have the same shareholder fees
and operating expenses.
Average
Annual Total Returns*
For
the periods ended December 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| 1
Year |
| 5
Years |
| 10
Years |
Touchstone
Balanced Fund - Class A |
|
|
|
|
| |
Return Before
Taxes |
| 8.28 |
% |
| 12.21 |
% |
| 10.49 |
% |
Return After Taxes on
Distributions |
| 7.57 |
% |
| 10.31 |
% |
| 8.97 |
% |
Return After Taxes on Distributions and
Sale of Fund Shares |
| 5.37 |
% |
| 9.29 |
% |
| 8.21 |
% |
Touchstone
Balanced Fund - Class C |
|
|
|
|
| |
Return Before
Taxes |
| 12.09 |
% |
| 12.50 |
% |
| 10.37 |
% |
Touchstone
Balanced Fund - Class Y** |
|
|
|
|
| |
Return Before
Taxes |
| 14.15 |
% |
| 13.61 |
% |
| 11.28 |
% |
60%
S&P 500®
Index and 40% Bloomberg U.S. Aggregate Bond Index
(reflects no deduction for
fees, expenses or taxes) |
| 15.86 |
% |
| 12.62 |
% |
| 11.14 |
% |
*Returns are not presented
for Class R6 shares, which commenced operations on October 28, 2021. Performance
information for Class R6 shares will be shown when those shares have a full
calendar year of operations. An investor transacting in Class R6 shares may be
required to pay a commission to a broker for effecting such transactions on an
agency basis. Such commissions will not be reflected in the table.
**Class Y shares of the Fund
assumed the performance history of Class I shares of the Predecessor
Fund.
The
Fund’s Management
Investment
Advisor
Touchstone
Advisors, Inc. serves as the Fund’s investment advisor.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Sub-Advisor |
|
Portfolio Managers |
|
Investment Experience
with the Fund |
|
Primary Title with Sub-Advisor |
Fort
Washington Investment Advisors, Inc. |
| Daniel
J. Carter, CFA |
| Since
inception in October 2017 |
| Managing
Director & Senior Portfolio Manager |
|
| James
Wilhelm |
| Since
inception in October 2017 |
| Managing
Director & Senior Portfolio Manager |
|
|
Austin
R. Kummer, CFA |
| Since
inception in October 2017 |
| Vice
President & Senior Portfolio Manager |
Buying
and Selling Fund Shares
Minimum
Investment Requirements
|
|
|
|
|
|
|
|
|
|
| |
|
Classes A, C, and Y |
| Initial Investment |
| Additional Investment |
Regular
Account |
$ |
2,500 |
|
| $ |
50 |
|
Retirement
Account or Custodial Account under the Uniform Gifts/Transfers to Minors
Act |
$ |
1,000 |
|
| $ |
50 |
|
Investments
through the Automatic Investment Plan |
$ |
100 |
|
| $ |
50 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Class
R6 |
| Initial Investment |
| Additional Investment |
Regular
Account |
$ |
50,000 |
|
| $ |
50 |
|
Class
R6 shares held on the Fund’s records require a $50,000 minimum initial
investment and have a $50 subsequent investment minimum. Financial
intermediaries may set different minimum initial and additional investment
requirements, may impose other restrictions or may charge you fees for their
services.
Fund
shares may be purchased and sold on days that the New York Stock Exchange is
open for trading. Existing Class A and Class C shareholders may purchase shares
directly through Touchstone Funds via the transfer agent, BNY Mellon, or through
their financial intermediary. Class Y shares are available only through
financial intermediaries who have appropriate selling agreements in place with
Touchstone Securities. Shares may be purchased or sold by writing to Touchstone
Securities at P.O. Box 9878, Providence, Rhode Island 02940, calling
1.800.543.0407, or visiting the Touchstone Funds’ website:
TouchstoneInvestments.com. You may only sell shares over the telephone or
via the Internet if the value of the shares sold is less than or equal to
$100,000. Shares held in IRAs and qualified retirement plans cannot be sold via
the Internet. If your shares are held by a processing organization or financial
intermediary you will need to follow its purchase and redemption procedures. For
more information about buying and selling shares, see the “Investing with
Touchstone” section of the Fund’s prospectus or call 1.800.543.0407.
Tax
Information
The
Fund intends to make distributions that may be taxed as ordinary income or
capital gains except when shares are held through a tax-advantaged account, such
as a 401(k) plan or an IRA. Withdrawals from a tax-advantaged account, however,
may be taxable.
Financial
Intermediary Compensation
If
you purchase shares in the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related companies may pay the
intermediary for the sale of Fund shares and related services. These
payments may create a conflict of interest by influencing the broker-dealer or
other financial intermediary and your salesperson to recommend the Fund over
another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
TOUCHSTONE CORE MUNICIPAL BOND FUND
SUMMARY
The Fund’s Investment
Goal
The Touchstone Core Municipal
Bond Fund (the “Fund”) seeks a high level of current income exempt from federal
income taxes, consistent with the protection of
capital.
The Fund’s Fees and
Expenses
This
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
You may qualify for sales charge discounts
for Class A shares of Touchstone equity funds and Touchstone fixed income
funds if you and your family invest, or agree to invest in the future, at least
$25,000 or $50,000, respectively, in Touchstone
funds. More information about these and other discounts is
available from your financial professional, in the section titled “Choosing a
Class of Shares” in the Fund’s prospectus and Statement of Additional
Information ("SAI") on page 77 and 78, respectively, and in Appendix
A–Intermediary-Specific Sales Charge Waivers and Discounts to
the Fund's prospectus.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Shareholder Fees (fees paid directly from
your investment) |
Class A |
| Class C |
| Class
Y |
| Institutional
Class |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
3.25% |
| None |
| None |
| None |
Maximum
Deferred Sales Charge (Load) (as a percentage of original purchase price
or the amount redeemed, whichever is less) |
None |
| 1.00% |
| None |
| None |
Wire
Redemption Fee |
Up
to $15 |
| Up
to $15 |
| Up
to $15 |
| Up
to $15 |
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your
investment) |
|
| |
|
|
| |
Management
Fees(1) |
0.40% |
| 0.40% |
| 0.40% |
| 0.40% |
Distribution
and/or Shareholder Service (12b-1) Fees |
0.25% |
| 1.00% |
| None |
| None |
Other
Expenses |
0.40% |
| 1.04% |
| 0.68% |
| 0.32% |
Total
Annual Fund Operating Expenses |
1.05% |
| 2.44% |
| 1.08% |
| 0.72% |
Fee
Waiver and/or Expense Reimbursement(2) |
(0.25)% |
| (0.89)% |
| (0.53)% |
| (0.24)% |
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement(2)(3) |
0.80% |
| 1.55% |
| 0.55% |
| 0.48% |
______________________________________
(1)Management Fees have been
restated to reflect contractual changes to the Fund's Investment Advisory
Agreement effective October 28, 2021.
(2)Touchstone Advisors, Inc.
(the "Advisor" or "Touchstone Advisors") and Touchstone Strategic Trust (the
“Trust”) have entered into a contractual expense limitation agreement whereby
Touchstone Advisors will waive a portion of its fees or reimburse certain Fund
expenses (excluding dividend and interest expenses relating to short sales;
interest; taxes; brokerage commissions and other transaction costs; portfolio
transaction and investment related expenses, including expenses associated with
the Fund's liquidity providers; other expenditures which are capitalized in
accordance with U.S. generally accepted accounting principles; the cost of
“Acquired Fund Fees and Expenses”, if any; and other extraordinary expenses not
incurred in the ordinary course of business) in order to limit annual Fund
operating expenses to 0.80%, 1.55%, 0.55% and 0.48% of average daily net assets
for Classes A, C, Y and Institutional Class shares, respectively. This
contractual expense limitation is effective through October 29,
2023, but can be
terminated by a vote of the Board of Trustees of the Trust (the “Board”) if it
deems the termination to be beneficial to the Fund’s shareholders. The terms of
the contractual expense limitation agreement provide that Touchstone Advisors is
entitled to recoup, subject to approval by the 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 Fund. The Fund will make
repayments to the Advisor only if such repayment does not cause the annual Fund
operating expenses (after the repayment is taken into account) to exceed both
(1) the expense cap in place when such amounts were waived or reimbursed and (2)
the Fund’s current expense limitation.
(3)Total Annual Fund
Operating Expenses After Fee Waiver and/or Expense Reimbursement will differ
from the ratio of net expenses to average net assets that is included in the
Fund's annual report for the fiscal year ended June 30, 2022 due to a
contractual change in the Fund's expense limitation agreement effective October
28, 2021.
Example.
This example is intended to help
you compare the cost of investing in the Fund with the cost of investing in
other mutual funds.
The
example assumes that you invest $10,000 in the Fund for the time periods
indicated and then, except as indicated, redeem all of your shares at the end of
those periods. The example also assumes that your investment has a 5%
return each year, that the Fund’s operating expenses remain the same and that
all fee waivers or expense limits for the Fund will expire after one year.
Although your actual costs may be higher or lower, based on these assumptions
your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Assuming Redemption at End of Period |
| Assuming No Redemption |
|
Class A |
| Class C |
| Class
Y |
| Institutional
Class |
| Class C |
1
Year |
$ |
404 |
|
| $ |
258 |
|
| $ |
56 |
|
| $ |
49 |
|
| $ |
158 |
|
3
Years |
$ |
624 |
|
| $ |
676 |
|
| $ |
291 |
|
| $ |
206 |
|
| $ |
676 |
|
5
Years |
$ |
862 |
|
| $ |
1,220 |
|
| $ |
544 |
|
| $ |
377 |
|
| $ |
1,220 |
|
10
Years |
$ |
1,544 |
|
| $ |
2,709 |
|
| $ |
1,269 |
|
| $ |
872 |
|
| $ |
2,709 |
|
Portfolio
Turnover.
The Fund pays transaction costs,
such as brokerage commissions, when it buys and sells securities (or “turns
over” its portfolio). A higher portfolio turnover rate may indicate
higher transaction costs and may result in higher taxes when Fund shares
are held in a taxable account. These costs, which are not reflected
in total annual Fund operating expenses or in the example, affect the Fund’s
performance. During the most recent fiscal year, the Fund’s portfolio
turnover rate was 157% of the average value of its portfolio. On
October 28, 2021, the Fund changed its principal investment strategies and
sub-advisor, as further described below. The portfolio turnover rate is higher
for the most recent fiscal year as a result of these
changes.
The Fund’s Principal Investment
Strategies
Under
normal circumstances, the Fund seeks to achieve its investment goal by investing
its assets primarily in high-quality, municipal debt, including general
obligation bonds, revenue bonds, and pre-refunded municipal bonds. This
includes, but is not limited to, municipal bonds that are issued by U.S. states
and their subdivisions, authorities, instrumentalities and corporations, as well
as obligations issued by U.S. territories (such as Puerto Rico, the U.S. Virgin
Islands and Guam) that pay interest that is exempt from regular federal personal
income tax. High-quality municipal debt is, for purposes of the Fund, considered
to be debt with an underlying credit rating of investment grade (Baa3) or higher
by Moody’s Investor Service, Inc. (“Moody’s”), or equivalently rated by S&P
Global Ratings (“S&P”) or Fitch, Inc. (“Fitch”), or, if unrated, determined
by the sub-advisor to be of comparable quality.
The
Fund has adopted a fundamental investment policy that under normal circumstances
at least 80% of the income it distributes will be exempt from federal income
tax, including the federal alternative minimum tax. This fundamental policy may
not be changed without the approval of the Fund’s shareholders.
In
managing the Fund’s portfolio, Sage Advisory Services, Ltd. Co. ("Sage" or the
"sub-advisor"), the Fund's sub-advisor, seeks to exploit market inefficiencies
using its income, price, and volatility framework:
•Income:
Sage seeks to construct portfolios that generate consistent tax-free income by
capturing diversified sources of credit, liquidity, and term premiums.
•Price:
Sage seeks to control price sensitivity at the portfolio level by managing
duration and yield curve positioning.
•Volatility:
During periods when the price of bonds decline because of economic uncertainty
or market stress, Sage seeks to identify and purchase bonds that are priced
attractively relative to historical averages. Sage will add positions in a
risk-controlled manner, meaning the bond is well-supported by Sage’s outlook and
the risk associated with purchasing the bond is carefully considered along with
the benefits including yield and the potential for the price to
increase.
The
Fund may invest in bonds of any maturity. The average duration of the Fund will
vary based on the sub-advisor’s forecast for interest rates and will normally be
within 25% (plus/minus) of the Bloomberg Municipal Bond Index. Duration is a
measure used to determine the sensitivity of a security’s price to changes in
interest rates.
Throughout
the investment process, Sage analyzes each municipal issue for various
environmental, social and governance (“ESG”) criteria. For this analysis, Sage
uses a proprietary ESG framework to evaluate and score (the "Sage ESG Leaf
Score") municipal projects for both their project impact and impact intensity
and related controversies. The Fund does not have a minimum scoring threshold of
their ESG framework for inclusion in the Fund, however, this analysis is used to
evaluate the fundamental health and long-term credit risk of each issuer. Sage
also engages with individual companies on ESG issues as required. The Fund may
invest in a security that scores poorly on ESG criteria if the security scores
highly on other factors such as valuation and strong fundamental
health.
The Fund’s Principal Risks
The
Fund’s share price will fluctuate. You could lose money on your investment in the Fund and
the Fund could also return less than other investments.
Investments in the Fund are not
bank guaranteed, are not deposits, and are not insured by the Federal Deposit
Insurance Corporation (the "FDIC") or any other federal government
agency.
As
with any mutual fund, there is no guarantee that the Fund will achieve its
investment goal. You can find more information about the Fund’s
investments and risks under the “Principal Investment Strategies and Risks”
section of the Fund’s prospectus. The Fund is subject to the principal risks
summarized below.
Fixed-Income
Risk: The
market value of the Fund’s fixed-income securities responds to economic
developments, particularly interest rate changes, as well as to perceptions
about the creditworthiness of individual issuers, including governments.
Generally, the Fund’s fixed-income securities will decrease in value if interest
rates rise and increase in value if interest rates fall. Normally, the longer
the maturity or duration of the fixed-income securities the Fund owns, the more
sensitive the value of the Fund’s shares will be to changes in interest
rates.
•Credit
Risk:
The
fixed-income securities in the Fund’s portfolio are subject to the possibility
that a deterioration, whether sudden or gradual, in the financial condition of
an issuer, or a deterioration in general economic conditions, could cause an
issuer to fail to make timely payments of principal or interest, when due. This
may cause the issuer’s securities to decline in value.
•Interest
Rate Risk: In
general, when interest rates rise, the prices of debt securities fall, and when
interest rates fall, the prices of debt securities rise. 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 used to
determine the sensitivity of a security’s price to changes in interest rates
that incorporates a security’s yield, coupon, final maturity, and call features,
among other characteristics. The longer a fixed-income security’s duration, the
more sensitive it will be to changes in interest rates. Maturity, on the other
hand, is the date on which a fixed-income security becomes due for payment of
principal. Recent and potential future changes in government policy may affect
interest rates.
•Investment-Grade
Debt Securities Risk:
Investment-grade
debt securities may be downgraded by a nationally recognized statistical rating
organization ("NRSRO") to below-investment-grade status, which would increase
the risk of holding these securities. Investment-grade debt securities rated in
the lowest rating category by a NRSRO involve a higher degree of risk than
fixed-income securities with higher credit ratings.
•Prepayment
Risk:
The risk that a debt security may be paid off and proceeds reinvested earlier
than anticipated. Prepayment impacts both the interest rate sensitivity of the
underlying asset, such as an asset-backed or mortgage-backed security and its
cash flow projections. Therefore, prepayment risk may make it difficult to
calculate the average duration of the Fund’s asset- or mortgage-backed
securities which in turn would make it difficult to assess the interest rate
risk of the Fund.
•U.S.
Government Securities Risk: Certain
U.S. government securities are backed by the right of the issuer to borrow from
the U.S. Treasury while others are supported only by the credit of the issuer or
instrumentality. While the U.S. government is able to provide financial support
to U.S. government-sponsored agencies or instrumentalities, no assurance can be
given that it will always do so. Such securities are generally neither issued
nor guaranteed by the U.S. Treasury.
Municipal
Securities Risk:
The value of municipal securities may be affected by uncertainties in the
municipal market related to legislation or litigation involving the taxation of
municipal securities or the rights of municipal securities holders in the event
of bankruptcy. In addition, a downturn in the national economy may negatively
impact the economic performance of issuers of municipal securities, and may
increase the likelihood that issuers of securities in which the Fund may invest
may be unable to meet their obligations. Also, some municipal obligations may be
backed by a letter of credit issued by a bank or other financial institution.
Adverse developments affecting banks or other financial institutions could have
a negative effect on the value of the Fund’s portfolio securities.
In
order to be tax exempt, tax-exempt securities must meet certain legal
requirements. Failure to meet such requirements may cause the interest received
and distributed by the Fund to shareholders to be taxable. The Fund may invest
in securities whose interest is subject to state tax, federal regular income
tax, or federal alternative minimum tax. Consult your tax professional for more
information.
Management
Risk:
In
managing the Fund’s portfolio, the Advisor engages one or more sub-advisors to
make investment decisions for a portion of or the entire portfolio. There is a
risk that the Advisor may be unable to identify and retain sub-advisors who
achieve superior investment returns relative to other similar
sub-advisors.
Economic
and Market Events Risk:
Events in the U.S. and global financial markets, including actions taken by the
U.S. Federal Reserve or foreign central banks to stimulate or stabilize economic
growth, may at times, and for varying periods of time, result in unusually high
market volatility, which could negatively impact the Fund’s performance and
cause the Fund to experience illiquidity, shareholder redemptions, or other
potentially adverse effects. Reduced liquidity in credit and fixed-income
markets could negatively affect issuers worldwide. Financial institutions could
suffer losses as interest rates rise or economic conditions deteriorate. In
addition, the Funds' service providers are susceptible to operational and
information or cyber security risks that could result in losses to a Fund and
its shareholders. Cyber security breaches are either intentional or
unintentional events that allow an unauthorized party to gain access to Fund
assets, customer data, or proprietary information, or cause a Fund or Fund
service provider to suffer data corruption or lose operational functionality. A
cyber security breach could result in the loss or theft of customer data or
funds, loss or theft of proprietary information or corporate data, physical
damage to a computer or network system, or costs associated with system repairs,
any of which could have a substantial impact on a Fund. Such incidents could
affect issuers in which a Fund invests, thereby causing the Fund’s investments
to lose value.
ESG
Investing Risk:
The Fund's sub-advisor considers ESG factors that it deems relevant or additive,
along with other material factors and analysis, when selecting investments for
Fund. The Fund’s ESG criteria may cause the Fund to forgo opportunities to buy
certain securities, or forgo opportunities to gain exposure to certain
industries, sectors, regions and municipalities. In addition, the Fund may be
required to sell a security when it might otherwise be disadvantageous for it to
do so.
The Fund’s
Performance
On
December 16, 2016, the Touchstone Ohio Tax-Free Bond Fund, a series of
Touchstone Tax-Free Trust (the "Predecessor Fund"), was reorganized into the
Fund. The investment objectives, guidelines, and restrictions of the Predecessor
Fund were substantially similar to those of the Fund. As a result of the
reorganization, the performance and accounting history of the Predecessor Fund
was assumed by the Fund. Financial and performance information prior
to December 16, 2016 is that of the Predecessor Fund. On October 28, 2021, the
Fund changed its name from the Touchstone Ohio Tax-Free Bond Fund to the
Touchstone Core Municipal Bond Fund, and also changed its investment goal,
principal investment strategies, diversification status and sub-advisor. The
Fund's performance shown below might have differed if Sage had managed the Fund
pursuant to its current strategies prior to October 28, 2021.
The bar chart
and performance table below illustrate some indication of the risks and
volatility of an investment in the Fund by showing changes in the Fund’s
performance from calendar year to calendar year and by showing how the Fund’s
average annual total returns for one year, five years, and ten years compare
with the Bloomberg Municipal Bond Index. The bar chart does not reflect any
sales charges, which would reduce your return. The performance table reflects
any applicable sales charges. Past performance (before and
after taxes) does not necessarily indicate how the Fund will perform in the
future. More recent performance information is available at no
cost by visiting TouchstoneInvestments.com
or by calling 1.800.543.0407.
Touchstone Core Municipal Bond Fund — Class A
Shares Total Return as of December 31
|
|
|
|
|
|
|
| |
Best Quarter:
1st Quarter
2014 3.25% |
|
Worst Quarter:
2nd Quarter
2013 (3.31)% |
The return of the Fund's Class A
shares for the nine months ended September 30, 2022 was
(12.14)%.
After-tax returns are
calculated using the highest individual marginal federal income tax rates in
effect on a given distribution reinvestment date and do not reflect the impact
of state and local taxes. Your actual after-tax returns may differ from those
shown and depend on your tax situation. The after-tax returns do not
apply to shares held in an individual retirement account ("IRA"), 401(k), or
other tax-advantaged account. The after-tax returns shown in
the table are for Class A shares only. The after-tax returns for other classes
of shares offered by the Fund will differ from the Class A shares' after-tax
returns. The Return After Taxes on
Distributions and Sale of Fund Shares may be greater than other returns for the
same period due to a tax benefit of realizing a capital loss on the sale of Fund
shares.
The
inception dates of Class Y shares and Institutional Class shares was
August 30,
2016. Class Y and Institutional
Class shares’ performance was calculated using the historical performance
of Class A shares for the periods prior to August 30, 2016. Performance for
these periods has been restated to reflect the impact of the fees and expenses
applicable to Class Y and Institutional
Class shares.
Average
Annual Total Returns
For
the Periods Ended December 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1 Year |
| 5 Years |
| 10 Years |
Touchstone
Core Municipal Bond Fund - Class A |
|
| |
| |
Return Before
Taxes |
(2.10) |
% |
| 2.33 |
% |
| 2.74 |
% |
Return After Taxes on
Distributions |
(2.11) |
% |
| 2.33 |
% |
| 2.71 |
% |
Return After Taxes on Distributions and
Sale of Fund Shares |
(0.49) |
% |
| 2.38 |
% |
| 2.76 |
% |
Touchstone
Core Municipal Bond Fund - Class C |
|
|
|
| |
Return Before
Taxes |
(0.56) |
% |
| 2.58 |
% |
| 2.63 |
% |
Touchstone
Core Municipal Bond Fund - Class Y |
|
|
|
| |
Return Before
Taxes |
1.44 |
% |
| 3.61 |
% |
| 3.39 |
% |
Touchstone
Core Municipal Bond Fund - Institutional Class |
|
|
|
| |
Return Before
Taxes |
1.49 |
% |
| 3.65 |
% |
| 3.41 |
% |
Bloomberg
Municipal Bond Index (reflects no deductions for
fees, expenses or taxes) |
1.52 |
% |
| 4.17 |
% |
| 3.72 |
% |
The
Fund’s Management
Investment
Advisor
Touchstone
Advisors, Inc. serves as the Fund’s investment advisor.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Sub-Advisor |
|
Portfolio Managers |
|
Investment Experience with the
Fund |
|
Primary Title with Sub-Advisor |
Sage
Advisory Services, Ltd. Co. |
|
Robert
G. Smith, AIF®, CIMC
|
| Since
October 2021 |
| President
and Chief Investment Officer |
|
|
Jeffery
S. Timlin, CFA, CMT |
| Since
October 2021 |
|
Principal
and Managing Director |
|
|
Thomas
H. Urano, CFA |
| Since
October 2021 |
|
Principal
and Managing Director |
Buying
and Selling Fund Shares
Minimum
Investment Requirements
|
|
|
|
|
|
|
|
|
|
| |
|
Classes A, C, and Y |
| Initial Investment |
| Additional Investment |
Regular
Account |
$ |
2,500 |
|
| $ |
50 |
|
Retirement
Account or Custodial Account under the Uniform Gifts/Transfers to Minors
Act |
$ |
1,000 |
|
| $ |
50 |
|
Investments
through the Automatic Investment Plan |
$ |
100 |
|
| $ |
50 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Institutional Class |
|
Initial Investment |
| Additional Investment |
Regular
Account |
$ |
500,000 |
|
| $ |
50 |
|
Fund
shares may be purchased and sold on days that the New York Stock Exchange is
open for trading. Existing Class A, C and Institutional Class shareholders may
purchase shares directly through Touchstone Funds via the transfer agent, BNY
Mellon, or through their financial intermediary. Class Y shares are
available only through financial intermediaries who have appropriate selling
agreements in place with Touchstone Securities. Shares may be purchased or sold
by writing to Touchstone Securities at P.O. Box 9878, Providence, Rhode
Island 02940, calling 1.800.543.0407, or visiting the Touchstone Funds’ website:
TouchstoneInvestments.com. You may only sell shares over the telephone or
via the Internet if the value of the shares sold is less than or equal to
$100,000. Shares held in IRAs and qualified retirement plans cannot be sold via
the Internet. If your shares are held by a processing organization or financial
intermediary you will need to follow its purchase and redemption procedures. For
more information about buying and selling shares, see the "Investing with
Touchstone" section of the Fund’s prospectus or call
1.800.543.0407.
Tax
Information
The
Fund intends to distribute tax-exempt income. The Fund intends to meet certain
federal tax requirements so that distributions of the tax-exempt interest it
earns may be treated as “exempt-interest dividends.” A portion of the Fund's
distributions may, however, be subject to federal income tax.
Financial
Intermediary Compensation
If
you purchase shares in the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related companies may pay the
intermediary for the sale of Fund shares and related services. These
payments may create a conflict of interest by influencing the broker-dealer or
other financial intermediary and your salesperson to recommend the Fund over
another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
TOUCHSTONE INTERNATIONAL EQUITY FUND
SUMMARY
The Fund’s Investment
Goal
The Touchstone International
Equity Fund (the “Fund”) seeks growth of capital.
The Fund’s Fees and
Expenses
This
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
You may qualify for sales charge discounts
for Class A shares of Touchstone equity funds and Touchstone fixed income
funds if you and your family invest, or agree to invest in the future, at least
$25,000 or $50,000, respectively, in Touchstone
funds. More information about these and other discounts is
available from your financial professional, in the section titled “Choosing a
Class of Shares” in the Fund’s prospectus and Statement of Additional
Information ("SAI") on page 77 and 78, respectively, and in Appendix
A–Intermediary-Specific Sales Charge Waivers and Discounts
to the Fund's prospectus.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Class A |
| Class C |
| Class Y |
| Institutional Class |
Shareholder Fees (fees paid directly from
your investment) |
|
|
|
|
|
| |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.00% |
| None |
| None |
| None |
Maximum
Deferred Sales Charge (Load) (as a percentage of original purchase price
or the amount redeemed, whichever is less) |
None |
| 1.00% |
| None |
| None |
Wire
Redemption Fee |
Up
to $15 |
| Up
to $15 |
| Up
to $15 |
| Up
to $15 |
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your
investment) |
|
|
|
|
|
| |
Management
Fees |
0.70% |
| 0.70% |
| 0.70% |
| 0.70% |
Distribution
and/or Shareholder Service (12b-1) Fees |
0.25% |
| 1.00% |
| None |
| None |
Other
Expenses |
0.45% |
| 1.01% |
| 0.49% |
| 0.64% |
Acquired
Fund Fees and Expenses |
0.01% |
| 0.01% |
| 0.01% |
| 0.01% |
Total
Annual Fund Operating Expenses(1) |
1.41% |
| 2.72% |
| 1.20% |
| 1.35% |
Fee
Waiver and/or Expense Reimbursement(2) |
(0.04)% |
| (0.72)% |
| (0.20)% |
| (0.45)% |
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement(1)(2) |
1.37% |
| 2.00% |
| 1.00% |
| 0.90% |
___________________________________________
(1)Total Annual Fund
Operating Expenses include Acquired Fund Fees and Expenses and will differ from
the ratios of expenses to average net assets that are included in the Fund’s
annual report for the fiscal year ended June 30,
2022.
(2)Touchstone
Advisors, Inc. (the "Advisor" or "Touchstone Advisors") and Touchstone
Strategic Trust (the “Trust”) have entered into a contractual expense limitation
agreement whereby Touchstone Advisors will waive a portion of its fees or
reimburse certain Fund expenses (excluding dividend and interest expenses
relating to short sales; interest; taxes; brokerage commissions and other
transaction costs; portfolio transaction and investment related expenses,
including expenses associated with the Fund's liquidity providers; other
expenditures which are capitalized in accordance with U.S. generally accepted
accounting principles; the cost of “Acquired Fund Fees and Expenses”, if any;
and other extraordinary expenses not incurred in the ordinary course of
business) in order to limit annual Fund operating expenses to 1.36%, 1.99%,
0.99%, and 0.89% of average daily net assets for Classes A, C, Y and
Institutional Class shares, respectively. This contractual expense
limitation is effective through October 29,
2023, but can be
terminated by a vote of the Board of Trustees of the Trust (the “Board”) if it
deems the termination to be beneficial to the Fund’s shareholders. The terms of
the contractual expense limitation agreement provide that Touchstone Advisors is
entitled to recoup, subject to approval by the 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 Fund. The Fund will make
repayments to the Advisor only if such repayment does not cause the annual Fund
operating expenses (after the repayment is taken into account) to exceed both
(1) the expense cap in place when such amounts were waived or reimbursed and (2)
the Fund’s current expense limitation.
Example.
This example is
intended to help you compare the cost of investing in the Fund with the cost of
investing in other mutual funds. The example assumes that you invest $10,000 in
the Fund for the time periods indicated and then, except as indicated, redeem
all of your shares at the end of those periods. The example also assumes
that your investment has a 5% return each year, that the Fund’s operating
expenses remain the same and that all fee waivers or expense limits for the Fund
will expire after one year. Although your actual costs may be higher or
lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Assuming Redemption at End of Period |
| Assuming No Redemption |
| Class A |
| Class C |
| Class Y |
| Institutional Class |
| Class C |
1
Year |
$ |
633 |
|
| $ |
303 |
|
| $ |
102 |
|
| $ |
92 |
|
| $ |
203 |
|
3
Years |
$ |
920 |
|
| $ |
776 |
|
| $ |
361 |
|
| $ |
383 |
|
| $ |
776 |
|
5
Years |
$ |
1,229 |
|
| $ |
1,376 |
|
| $ |
640 |
|
| $ |
696 |
|
| $ |
1,376 |
|
10
Years |
$ |
2,103 |
|
| $ |
2,999 |
|
| $ |
1,437 |
|
| $ |
1,585 |
|
| $ |
2,999 |
|
Portfolio
Turnover.
The Fund pays transaction
costs, such as brokerage commissions, when it buys and sells securities (or
“turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not
reflected in total annual Fund operating expenses or in the example, affect the
Fund’s performance. During the most recent fiscal year, the Fund’s
portfolio turnover rate was 45% of the average value of its
portfolio.
The Fund’s Principal Investment
Strategies
The
Fund normally invests at least 80% of its assets in equity securities. The Fund
invests primarily in common stocks of companies located in or that conduct their
business mainly in one or more foreign countries, which may include emerging
markets. The Fund will normally be invested in ten or more foreign countries and
may invest up to 40% of its assets in any one country if Fort Washington
Investment Advisors, Inc. ("Fort Washington"), the Fund's sub-advisor, feels
that economic and business conditions make it appropriate to do so. The Fund
focuses its investments on developed foreign countries, but may invest up to 25%
of its total assets in emerging markets. It normally will have substantial
investments in European countries. Normally, at least 75% of the Fund's total
assets are invested in securities of non-U.S. issuers selected by Fort
Washington mainly for their long-term capital growth prospects. The remaining
25% may be invested in companies organized in the United States that have at
least 50% of their assets and/or revenues outside the United States. The Fund
also expects to purchase American Depositary Receipts ("ADRs") and Global
Depositary Receipts ("GDRs") in bearer form, which are designed for use in
non-U.S. securities markets.
Fort
Washington employs a fundamental, bottom up approach to building the Fund's
international equity portfolio. The process starts with a regular quantitative
screening in order to narrow the investable universe, which seeks to identify
businesses with high returns on capital, operating margins, and strong cash flow
generation. Stocks are then analyzed based on the following five fundamental
factors: business quality, valuation, growth, management, and balance sheet
strength. The Fund generally may sell a security when there is a deterioration
of one or more of the five factors described above or when the portfolio manager
identifies a more favorable investment opportunity. The Fund may also sell a
security to meet redemptions or for tax management
purposes.
The Fund’s Principal Risks
The
Fund’s share price will fluctuate. You could lose money on your investment in the Fund and
the Fund could also return less than other investments.
Investments in the Fund are not
bank guaranteed, are not deposits, and are not insured by the Federal Deposit
Insurance Corporation (the "FDIC") or any other federal government
agency.
As
with any mutual fund, there is no guarantee that the Fund will achieve its
investment goal. You can find more information about the Fund’s
investments and risks under the “Principal Investment Strategies and Risks”
section of the Fund’s prospectus. The Fund is subject to the principal risks
summarized below.
Equity
Securities Risk:
The
Fund is subject to the risk that stock prices will fall over short or extended
periods of time. Individual companies may report poor results or be negatively
affected by industry and/or economic trends and developments, or as a result of
irregular and/or unexpected trading activity among retail investors. The prices
of securities issued by these companies may decline in response to such
developments, which could result in a decline in the value of the Fund’s
shares.
Foreign
Securities Risk: Investing
in foreign securities poses additional risks since political and economic events
unique in a country or region will affect those markets and their issuers, while
such events may not necessarily affect the U.S. economy or issuers located in
the United States. In addition, investments in foreign securities are generally
denominated in foreign currency. As a result, changes in the value of those
currencies compared to the U.S. dollar may affect (positively or negatively) the
value of the Fund's investments. There are also risks associated with foreign
accounting standards, government regulation, market information, and clearance
and settlement procedures. Foreign markets may be less liquid and more volatile
than U.S. markets and offer less protection to
investors.
•Depositary
Receipts Risk:
Foreign
receipts, which include ADRs, GDRs,
and European Depositary Receipts, are securities that evidence ownership
interests in a security or a pool of securities issued by a foreign issuer. The
risks of depositary receipts include many risks associated with investing
directly in foreign securities.
•Emerging
Markets Risk:
Emerging markets may be more likely to experience political turmoil or rapid
changes in market or economic conditions than more developed countries. In
addition, the financial stability of issuers (including governments) in emerging
market countries may be more precarious than that of issuers in other
countries.
Management
Risk:
In
managing the Fund’s portfolio, the Advisor engages one or more sub-advisors to
make investment decisions for a portion of or the entire portfolio. There is a
risk that the Advisor may be unable to identify and retain sub-advisors who
achieve superior investment returns relative to other similar
sub-advisors.
Economic
and Market Events Risk:
Events in the U.S. and global financial markets, including actions taken by the
U.S. Federal Reserve or foreign central banks to stimulate or stabilize economic
growth, may at times, and for varying periods of time, result in unusually high
market volatility, which could negatively impact the Fund’s performance and
cause the Fund to experience illiquidity, shareholder redemptions, or other
potentially adverse effects. Reduced liquidity in credit and fixed-income
markets could negatively affect issuers worldwide. Financial institutions could
suffer losses as interest rates rise or economic conditions deteriorate. In
addition, the Funds' service providers are susceptible to operational and
information or cyber security risks that could result in losses to a Fund and
its shareholders. Cyber security breaches are either intentional or
unintentional events that allow an unauthorized party to gain access to Fund
assets, customer data, or proprietary information, or cause a Fund or Fund
service provider to suffer data corruption or lose operational functionality. A
cyber security breach could result in the loss or theft of customer data or
funds, loss or theft of proprietary information or corporate data, physical
damage to a computer or network system, or costs associated with system repairs,
any of which could have a substantial impact on a Fund. Such incidents could
affect issuers in which a Fund invests, thereby causing the Fund’s investments
to lose value.
The Fund’s
Performance
Before
the Fund commenced operations, the assets and liabilities of the Sentinel
International Equity Fund (the “Predecessor Fund”) were transferred to the Fund
in a tax-free reorganization on October 27, 2017 (the “Reorganization”). The
investment objectives, guidelines, and restrictions of the Predecessor Fund were
similar to those of the Fund. The performance information included prior to the
Reorganization is that of the Predecessor Fund.
The bar chart
and performance table below illustrate some indication of the risks and
volatility of an investment in the Fund by showing changes in the Fund’s
performance from calendar year to calendar year and by showing how the Fund’s
average annual total returns for one year, five years, and ten years compare
with the MSCI EAFE Index. The bar chart does not reflect any
sales charges, which would reduce your return. The performance table reflects
any applicable sales charges. Past performance (before and
after taxes) does not necessarily indicate how the Fund will perform in the
future. More recent performance information is available at no
cost by visiting TouchstoneInvestments.com
or by calling 1.800.543.0407.
Touchstone International Equity Fund - Class A Shares
Total Return as of December 31
|
|
|
|
|
|
|
| |
Best Quarter:
2nd Quarter
2020 18.76% |
|
Worst Quarter:
1st Quarter
2020 (26.96)% |
The return of the Fund's Class A
shares for the nine months ended September 30, 2022 was
(23.73)%.
After-tax returns are
calculated using the highest individual marginal federal income tax rates in
effect on a given distribution reinvestment date and do not reflect the impact
of state and local taxes. Your actual after-tax returns may differ from those
shown and depend on your tax situation. The after-tax returns do not
apply to shares held in an individual retirement account ("IRA"), 401(k), or
other tax-advantaged account. The after-tax returns shown in
the table are for Class A shares only. The after-tax returns for other classes
of shares offered by the Fund will differ from the Class A shares' after-tax
returns. The Return After Taxes on
Distributions and Sale of Fund Shares may be greater than other returns for the
same period due to a tax benefit of realizing a capital loss on the sale of Fund
shares.
Average
Annual Total Returns
For
the Periods Ended December 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| 1
Year |
| 5
Years |
| 10
Years |
Touchstone
International Equity Fund - Class A |
|
|
|
|
| |
Return Before
Taxes |
| (1.21) |
% |
| 6.47 |
% |
| 6.82 |
% |
Return After Taxes on
Distributions |
| (4.75) |
% |
| 4.61 |
% |
| 5.29 |
% |
Return After Taxes on Distributions and
Sale of Fund Shares |
| 1.01 |
% |
| 4.88 |
% |
| 5.26 |
% |
Touchstone
International Equity Fund - Class C |
|
|
|
|
| |
Return Before
Taxes |
| 2.41 |
% |
| 6.50 |
% |
| 6.28 |
% |
Touchstone
International Equity Fund - Class Y* |
|
|
|
|
| |
Return Before
Taxes |
| 4.30 |
% |
| 7.91 |
% |
| 7.79 |
% |
Touchstone
International Equity Fund - Institutional Class** |
|
|
|
|
| |
Return Before
Taxes |
| 4.43 |
% |
| 7.99 |
% |
| 7.81 |
% |
MSCI
EAFE Index (reflects no deduction for
fees, expenses or taxes) |
| 11.26 |
% |
| 9.55 |
% |
| 8.03 |
% |
*Class Y shares of the Fund
assumed the performance history of Class I shares of the Predecessor
Fund.
**Performance of
Institutional Class shares of the Fund prior to October 30, 2017 (the inception
date for Institutional Class shares) is based on the Fund's Class Y share
performance.
The
Fund’s Management
Investment
Advisor
Touchstone
Advisors, Inc. serves as the Fund’s investment advisor.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Sub-Advisor |
| Portfolio Manager |
| Investment Experience with the Fund
and the Predecessor Fund |
| Primary Title with Sub-Advisor |
Fort
Washington Investment Advisors, Inc. |
| Andrew
Boczek |
| Since
inception in October 2017; managed the Predecessor Fund from 2012 to
2017 |
| Vice-President
& Senior Portfolio Manager |
Buying
and Selling Fund Shares
Minimum
Investment Requirements
|
|
|
|
|
|
|
|
|
|
| |
|
Classes A, C, and Y |
| Initial Investment |
| Additional Investment |
Regular
Account |
$ |
2,500 |
|
| $ |
50 |
|
Retirement
Account or Custodial Account under the Uniform Gifts/Transfers to Minors
Act |
$ |
1,000 |
|
| $ |
50 |
|
Investments
through the Automatic Investment Plan |
$ |
100 |
|
| $ |
50 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Institutional Class |
|
Initial Investment |
| Additional Investment |
Regular
Account |
$ |
500,000 |
|
| $ |
50 |
|
Fund
shares may be purchased and sold on days that the New York Stock Exchange is
open for trading. Existing Class A, Class C and Institutional Class shareholders
may purchase shares directly through Touchstone Funds via the transfer agent,
BNY Mellon, or through their financial intermediary. Class Y shares are
available only through financial intermediaries who have appropriate selling
agreements in place with Touchstone Securities. Shares may be purchased or sold
by writing to Touchstone Securities at P.O. Box 9878, Providence, Rhode
Island 02940, calling 1.800.543.0407, or visiting the Touchstone Funds’ website:
TouchstoneInvestments.com. You may only sell shares over the telephone or
via the Internet if the value of the shares sold is less than or equal to
$100,000. Shares held in IRAs and qualified retirement plans cannot be sold via
the Internet. If your shares are held by a processing organization or financial
intermediary you will need to follow its purchase and redemption procedures. For
more information about buying and selling shares, see the "Investing with
Touchstone" section of the Fund’s prospectus or call 1.800.543.0407.
Tax
Information
The
Fund intends to make distributions that may be taxed as ordinary income or
capital gains except when shares are held through a tax-advantaged account, such
as a 401(k) plan or an IRA. Withdrawals from a tax-advantaged account, however,
may be taxable.
Financial
Intermediary Compensation
If
you purchase shares in the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related companies may pay the
intermediary for the sale of Fund shares and related services. These
payments may create a conflict of interest by influencing the broker-dealer or
other financial intermediary and your salesperson to recommend the Fund over
another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
TOUCHSTONE INTERNATIONAL GROWTH FUND
SUMMARY
The Fund’s Investment
Goal
The Touchstone International
Growth Fund (the “Fund”) seeks to achieve long-term capital
appreciation.
The Fund’s Fees and
Expenses
This
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
You may qualify for sales charge discounts
for Class A shares of Touchstone equity funds and Touchstone fixed income
funds if you and your family invest, or agree to invest in the future, at least
$25,000 or $50,000, respectively, in Touchstone
funds. More information about these and other discounts is
available from your financial professional, in the section titled “Choosing a
Class of Shares” in the Fund’s prospectus and Statement of Additional
Information ("SAI") on page 77 and 78, respectively, and in Appendix
A–Intermediary-Specific Sales Charge Waivers and Discounts to
the Fund's prospectus.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Class A |
| Class C |
| Class Y |
| Institutional Class |
Shareholder Fees (fees paid directly from
your investment) |
|
| |
| |
| |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.00% |
| None |
| None |
| None |
Maximum
Deferred Sales Charge (Load) (as a percentage of original purchase price
or the amount redeemed, whichever is less) |
None |
| 1.00% |
| None |
| None |
Wire
Redemption Fee |
Up
to $15 |
| Up
to $15 |
| Up
to $15 |
| Up
to $15 |
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your
investment) |
|
| |
| |
| |
Management
Fees |
0.80% |
| 0.80% |
| 0.80% |
| 0.80% |
Distribution
and/or Shareholder Service (12b-1) Fees |
0.25% |
| 1.00% |
| None |
| None |
Other
Expenses |
1.57% |
| 1.82% |
| 0.51% |
| 0.52% |
Total
Annual Fund Operating Expenses |
2.62% |
| 3.62% |
| 1.31% |
| 1.32% |
Fee
Waiver and/or Expense Reimbursement(1) |
(1.38)% |
| (1.63)% |
| (0.32)% |
| (0.43)% |
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement(1) |
1.24% |
| 1.99% |
| 0.99% |
| 0.89% |
___________________________________________
(1)Touchstone Advisors, Inc.
(the "Advisor" or "Touchstone Advisors") and Touchstone Strategic Trust (the
“Trust”) have entered into a contractual expense limitation agreement whereby
Touchstone Advisors will waive a portion of its fees or reimburse certain Fund
expenses (excluding dividend and interest expenses relating to short sales;
interest; taxes; brokerage commissions and other transaction costs; portfolio
transaction and investment related expenses, including expenses associated with
the Fund's liquidity providers; other expenditures which are capitalized in
accordance with U.S. generally accepted accounting principles; the cost of
“Acquired Fund Fees and Expenses”, if any; and other extraordinary expenses not
incurred in the ordinary course of business) in order to limit annual Fund
operating expenses to 1.24%, 1.99%, 0.99%, and 0.89% of average daily net
assets for Classes A, C, Y and Institutional Class shares,
respectively. This contractual expense limitation is effective through
October 29,
2023, but can be
terminated by a vote of the Board of Trustees of the Trust (the “Board”) if it
deems the termination to be beneficial to the Fund’s shareholders. The terms of
the contractual expense limitation agreement provide that Touchstone Advisors is
entitled to recoup, subject to approval by the 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 Fund. The Fund will make
repayments to the Advisor only if such repayment does not cause the annual Fund
operating expenses (after the repayment is taken into account) to exceed both
(1) the expense cap in place when such amounts were waived or reimbursed and (2)
the Fund’s current expense limitation.
Example.
This example is intended to help
you compare the cost of investing in the Fund with the cost of investing in
other mutual funds.
The
example assumes that you invest $10,000 in the Fund for the time periods
indicated and then, except as indicated, redeem all of your shares at the end of
those periods. The example also assumes that your investment has a 5%
return each year, that the Fund’s operating expenses remain the same and that
all fee waivers or expense limits for the Fund will expire after one year.
Although your actual costs may be higher or lower, based on these assumptions
your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Assuming Redemption at End of Period |
| Assuming No Redemption |
|
Class A |
| Class C |
| Class Y |
| Institutional Class |
| Class C |
1
Year |
$ |
620 |
|
| $ |
302 |
|
| $ |
101 |
|
| $ |
91 |
|
| $ |
202 |
|
3
Years |
$ |
1,149 |
|
| $ |
958 |
|
| $ |
384 |
|
| $ |
376 |
|
| $ |
958 |
|
5
Years |
$ |
1,703 |
|
| $ |
1,735 |
|
| $ |
688 |
|
| $ |
682 |
|
| $ |
1,735 |
|
10
Years |
$ |
3,209 |
|
| $ |
3,774 |
|
| $ |
1,551 |
|
| $ |
1,553 |
|
| $ |
3,774 |
|
Portfolio
Turnover.
The Fund pays transaction
costs, such as brokerage commissions, when it buys and sells securities (or
“turns over” its portfolio). A higher portfolio turnover rate may indicate
higher transaction costs and may result in higher taxes when Fund shares
are held in a taxable account. These costs, which are not reflected in
total annual Fund operating expenses or in the example, affect the Fund’s
performance. During the most recent fiscal year, the Fund’s portfolio turnover
rate was 49% of the average value of its
portfolio.
The Fund’s Principal Investment
Strategies
Under
normal circumstances, the Fund will primarily invest its net assets (plus any
borrowings for investment purposes) in equity securities of foreign issuers.
Equity securities include, but are not limited to, common stocks, preferred
stocks, securities convertible into common stocks, rights and warrants. Under
normal market conditions, the Fund primarily invests its assets directly in the
securities of foreign issuers, and may also invest through, but not limited to,
American Depository Receipts ("ADRs") and other depositary receipts. The Fund
may generally invest up to 20% of its net assets in equity securities of
non-foreign issuers. The Fund generally will contain 25 to 50 equity
securities.
In
determining whether an issuer is foreign, DSM Capital Partners LLC ("DSM"), the
Fund's sub-advisor, will consider various factors including where the issuer is
headquartered, where the issuer’s principal operations are located, where the
issuer’s revenues are derived, where the principal trading market is located and
the country in which the issuer is legally organized. The weight given to each
of these factors will vary depending upon the circumstances and as determined by
DSM. The Fund intends to invest in securities of issuers from at least three
different countries outside of the United States, including issuers in emerging
market countries. The Fund may, from time to time, have significant exposure to
one or more issuers, geographic regions or sectors of the global
economy.
The
Fund may focus its investments in a particular sector or sectors of the economy.
From time to time, the Fund may invest more than 25% of its assets in issuers
connected to China, and in issuers in other emerging market countries, which
involves certain additional risks and special considerations not typically
associated with investment in more developed economies or markets. Emerging
market countries are generally countries that are included in the Morgan Stanley
Capital International (“MSCI”) Emerging Markets Index. As of September 30, 2022,
the countries in the MSCI Emerging Markets Index included: Brazil, Chile, China,
Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea,
Kuwait, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Saudi Arabia, South
Africa, Taiwan, Thailand, Turkey and United Arab Emirates. The country
composition of the MSCI Emerging Markets Index can change over
time.
DSM
manages the Fund using a bottom-up, “idea-driven,” growth-style with a long-term
(i.e.,
three-year) investment horizon. This means in general terms that DSM seeks to
identify issuers which it believes exhibit certain quality characteristics. For
instance, DSM selects issuers that it believes have growing businesses with
solid fundamentals, attractive profitability, and successful managements. DSM
normally holds securities with long-term investment horizons and does not engage
in short-term frequent trading. DSM generally sells an equity security when its
projected future return becomes unattractive relative to the rest of the
portfolio or the investable universe.
The Fund’s Principal Risks
The
Fund’s share price will fluctuate. You could lose money on your investment in the Fund and
the Fund could also return less than other investments.
Investments in the Fund are not
bank guaranteed, are not deposits, and are not insured by the Federal Deposit
Insurance Corporation or any other federal government
agency.
As
with any mutual fund, there is no guarantee that the Fund will achieve its
investment goal. You can find more information about the Fund’s
investments and risks under the “Principal Investment Strategies and Risks”
section of the Fund’s prospectus. The Fund is subject to the principal risks
summarized below.
Equity
Securities Risk:
The
Fund is subject to the risk that stock prices will fall over short or extended
periods of time. Individual companies may report poor results or be negatively
affected by industry and/or economic trends and developments, or as a result of
irregular and/or unexpected trading activity among retail investors. The prices
of securities issued by these companies may decline in response to such
developments, which could result in a decline in the value of the Fund’s
shares.
•Preferred
Stock Risk:
In
the event an issuer is liquidated or declares bankruptcy, the claims of owners
of bonds take precedence over the claims of those who own preferred and common
stock. If interest rates rise, the fixed dividend on preferred stocks may be
less attractive, causing the price of preferred stocks to decline.
Foreign
Securities Risk: Investing
in foreign securities poses additional risks since political and economic events
unique in a country or region will affect those markets and their issuers, while
such events may not necessarily affect the U.S. economy or issuers located in
the United States. In addition, investments in foreign securities are generally
denominated in foreign currency. As a result, changes in the value of those
currencies compared to the U.S. dollar may affect (positively or negatively) the
value of the Fund's investments. There are also risks associated with foreign
accounting standards, government regulation, market information, and clearance
and settlement procedures. Foreign markets may be less liquid and more volatile
than U.S. markets and offer less protection to investors.
•Depositary
Receipts Risk:
Foreign
receipts, which include ADRs, Global Depositary Receipts, and European
Depositary Receipts, are securities that evidence ownership interests in a
security or a pool of securities issued by a foreign issuer. The risks of
depositary receipts include many risks associated with investing directly in
foreign securities.
•Emerging
Markets Risk:
Emerging markets may be more likely to experience political turmoil or rapid
changes in market or economic conditions than more developed countries. In
addition, the financial stability of issuers (including governments) in emerging
market countries may be more precarious than that of issuers in other
countries.
Growth-Investing
Risk:
Growth-oriented
funds may underperform when value investing is in favor, and growth stocks may
be more volatile than other stocks because they are more sensitive to investor
perceptions of the issuing company’s growth of earnings potential.
Management
Risk:
In
managing the Fund’s portfolio, the Advisor engages one or more sub-advisors to
make investment decisions for a portion of or the entire portfolio. There is a
risk that the Advisor may be unable to identify and retain sub-advisors who
achieve superior investment returns relative to other similar
sub-advisors.
Economic
and Market Events Risk:
Events in the U.S. and global financial markets, including actions taken by the
U.S. Federal Reserve or foreign central banks to stimulate or stabilize economic
growth, may at times, and for varying periods of time, result in unusually high
market volatility, which could negatively impact the Fund’s performance and
cause the Fund to experience illiquidity, shareholder redemptions, or other
potentially adverse effects. Reduced liquidity in credit and fixed-income
markets could negatively affect issuers worldwide. Financial institutions could
suffer losses as interest rates rise or economic conditions deteriorate. In
addition, the Funds' service providers are susceptible to operational and
information or cyber security risks that could result in losses to a Fund and
its shareholders. Cyber security breaches are either intentional or
unintentional events that allow an unauthorized party to gain access to Fund
assets, customer data, or proprietary information, or cause a Fund or Fund
service provider to suffer data corruption or lose operational functionality. A
cyber security breach could result in the loss or theft of customer data or
funds, loss or theft of proprietary information or corporate data, physical
damage to a computer or network system, or costs associated with system repairs,
any of which could have a substantial impact on a Fund. Such incidents could
affect issuers in which a Fund invests, thereby causing the Fund’s investments
to lose value.
Convertible
Securities Risk:
Convertible securities are subject to the risks of both debt securities and
equity securities. The values of convertible securities tend to decline as
interest rates rise and, due to the conversion feature, tend to vary with
fluctuations in the market value of the underlying security.
Sector
Focus Risk: A
fund that focuses its investments in the securities of a particular market
sector is subject to the risk that adverse circumstances will have a greater
impact on the fund than a fund that does not focus its investments in a
particular sector.
The Fund’s
Performance
On
September 11, 2020, the Touchstone International Growth Opportunities Fund, a
series of the Trust (the "Predecessor Fund"), was reorganized into the Fund (the
"Reorganization").
Effective
September 12, 2020, the Fund changed its name to the Touchstone International
Growth Fund and changed its principal investment strategies and sub-advisor to
match those of the Predecessor Fund.
As
a result of the Reorganization, the Fund assumed the performance and accounting
history of the Predecessor Fund. Financial and performance information prior to
September 12, 2020 included in the Fund’s prospectus is that of the Predecessor
Fund.
The bar chart
and performance table below illustrate some indication of the risks and
volatility of an investment in the Fund by showing changes in the Fund’s
performance from calendar year to calendar year and by showing how the Fund’s
average annual total returns for one year, five years, and since inception
compare with the MSCI All Country World Ex USA Index. The
performance table reflects any applicable sales charges. Past performance (before and
after taxes) does not necessarily indicate how the Fund will perform in the
future. More recent performance information is available at no
cost by visiting TouchstoneInvestments.com
or by calling 1.800.543.0407.
Touchstone International Growth Fund - Institutional
Class Shares Total Return as of December 31
|
|
|
|
|
|
|
| |
Best Quarter:
2nd Quarter
2020 23.53% |
|
Worst Quarter:
1st Quarter
2020 (19.22)% |
The return for the Fund’s Institutional Class
shares for the nine months ended September 30, 2022 was
(32.07)%.
After-tax returns are
calculated using the highest individual marginal federal income tax rates in
effect on a given distribution reinvestment date and do not reflect the impact
of state and local taxes. Your actual after-tax returns may differ from those
shown and depend on your tax situation. The after-tax returns do not
apply to shares held in an individual retirement account ("IRA"), 401(k), or
other tax-advantaged account. The after-tax returns shown in
the table are for Institutional Class shares only. The after-tax returns for
other classes of shares offered by the Fund will differ from the Institutional
Class shares' after-tax returns. The Return After Taxes on
Distributions and Sale of Fund Shares may be greater than other returns for the
same period due to a tax benefit of realizing a capital loss on the sale of Fund
shares.
The
inception dates of the Fund's Class A shares, Class C shares, Class Y shares,
and Institutional Class shares were August 15, 2016,
August 15, 2016,
August 15, 2016 and
March 28,
2012, respectively. The performance of each
share class was calculated using the historical performance of Institutional
Class shares for periods prior to August 15, 2016. Performance for these periods
has been restated to reflect the impact of the fees and expenses applicable to
Class A, Class C and Class Y shares.
Average
Annual Total Returns
For
the periods ended December 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1 Year |
| 5 Years |
| Since
Inception (3/28/2012) |
Touchstone
International Growth - Institutional Class |
|
| |
| |
Return Before
Taxes |
(4.67) |
% |
| 12.74 |
% |
| 10.86 |
% |
Return After Taxes on
Distributions |
(4.67) |
% |
| 11.85 |
% |
| 9.71 |
% |
Return After Taxes on Distributions and
Sale of Fund Shares |
(2.76) |
% |
| 9.95 |
% |
| 8.55 |
% |
Touchstone
International Growth - Class A |
|
|
|
| |
Return Before
Taxes |
(9.68) |
% |
| 11.04 |
% |
| 9.87 |
% |
Touchstone
International Growth - Class C |
|
|
|
| |
Return Before
Taxes |
(6.69) |
% |
| 11.51 |
% |
| 9.72 |
% |
Touchstone
International Growth - Class Y |
|
|
|
| |
Return Before
Taxes |
(4.70) |
% |
| 12.61 |
% |
| 10.78 |
% |
MSCI
All Country World Ex USA Index
(reflects no deductions for
fees, expenses or taxes) |
7.82 |
% |
| 9.61 |
% |
| 6.27 |
% |
The
Fund’s Management
Investment
Advisor
Touchstone
Advisors, Inc. serves as the Fund’s investment advisor.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Sub-Advisor |
|
Portfolio Manager |
|
Investment Experience with
the Fund and the Predecessor Fund |
|
Primary Title with
Sub-Advisor |
DSM
Capital Partners LLC |
|
Daniel
Strickberger |
|
Since
September 2020; managed the Predecessor Fund from 2012 to
2020 |
|
Chief
Investment Officer and Managing Partner |
|
|
David
McVey |
|
Since
September 2020; managed the Predecessor Fund from 2012 to
2020 |
|
Deputy
Chief Investment Officer and Portfolio Manager |
|
| Eric
Woodworth, CFA |
| Since
October 2021 |
|
Deputy
Chief Investment Officer and Portfolio
Manager |
Buying
and Selling Fund Shares
Minimum
Investment Requirements
|
|
|
|
|
|
|
|
|
|
| |
|
Classes A, C, and Y |
| Initial Investment |
| Additional Investment |
Regular
Account |
$ |
2,500 |
|
| $ |
50 |
|
Retirement
Account or Custodial Account under the Uniform Gifts/Transfers to Minors
Act |
$ |
1,000 |
|
| $ |
50 |
|
Investments
through the Automatic Investment Plan |
$ |
100 |
|
| $ |
50 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Institutional Class |
|
Initial Investment |
| Additional Investment |
Regular
Account |
$ |
500,000 |
|
| $ |
50 |
|
Fund
shares may be purchased and sold on days that the New York Stock Exchange is
open for trading. Existing Class A, Class C and Institutional Class shareholders
may purchase shares directly through Touchstone Funds via the transfer agent,
BNY Mellon, or through their financial intermediary. Class Y shares are
available only through financial intermediaries who have appropriate selling
agreements in place with Touchstone Securities. Shares may be purchased or sold
by writing to Touchstone Securities at P.O. Box 9878, Providence, Rhode Island
02940, calling 1.800.543.0407, or visiting the Touchstone Funds’ website:
TouchstoneInvestments.com. You may only sell shares over the telephone or via
the Internet if the value of the shares sold is less than or equal to $100,000.
Shares held in IRAs and qualified retirement plans cannot be sold via the
Internet. If your shares are held by a processing organization or financial
intermediary you will need to follow its purchase and redemption
procedures.
For more information about buying and selling shares, see the “Investing with
Touchstone” section of the Fund’s prospectus or call
1.800.543.0407.
Tax
Information
The
Fund intends to make distributions that may be taxed as ordinary income or
capital gains except when shares are held through a tax-advantaged account, such
as a 401(k) plan or an IRA. Withdrawals from a tax-advantaged account, however,
may be taxable.
Financial
Intermediary Compensation
If
you purchase shares in the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related companies may pay the
intermediary for the sale of Fund shares and related services. These
payments may create a conflict of interest by influencing the broker-dealer or
other financial intermediary and your salesperson to recommend the Fund over
another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
TOUCHSTONE LARGE CAP FOCUSED FUND
SUMMARY
The Fund’s Investment
Goal
The Touchstone Large Cap
Focused Fund (the “Fund”) seeks to provide investors with capital
appreciation.
The Fund’s Fees and
Expenses
This
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
You may qualify for sales charge discounts
for Class A shares of Touchstone equity funds and Touchstone fixed income
funds if you and your family invest, or agree to invest in the future, at least
$25,000 or $50,000, respectively, in Touchstone
funds. More information about these and other discounts is
available from your financial professional, in the section titled “Choosing a
Class of Shares” in the Fund’s prospectus and Statement of Additional
Information ("SAI") on page 77 and 78, respectively, and in Appendix
A–Intermediary-Specific Sales Charge Waivers and Discounts to
the Fund's prospectus. An
investor transacting in Class R6 shares, which do not have any front-end sales
charge, contingent deferred sales charge, or other asset-based fee for sales or
distribution, may be required to pay a commission to a broker for effecting such
transactions on an agency basis. Such commissions are not reflected in the table
or in the "Example" below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Class A |
| Class C |
| Class Y |
| Institutional Class |
|
Class
R6 |
|
Shareholder Fees (fees paid directly from
your investment) |
|
| |
| |
| |
|
| |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.00% |
| None |
| None |
| None |
| None |
|
Maximum
Deferred Sales Charge (Load) (as a percentage of original purchase price
or the amount redeemed, whichever is less) |
None |
| 1.00% |
| None |
| None |
| None |
|
Wire
Redemption Fee |
Up
to $15 |
| Up
to $15 |
| Up
to $15 |
| Up
to $15 |
| Up
to $15 |
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your
investment) |
|
| |
| |
| |
|
| |
Management
Fees |
0.52% |
| 0.52% |
| 0.52% |
| 0.52% |
| 0.52% |
|
Distribution
and/or Shareholder Service (12b-1) Fees |
0.25% |
| 1.00% |
| None |
| None |
| None |
|
Other
Expenses |
|
|
|
|
|
|
|
|
| |
Liquidity
Provider Expense |
0.01% |
| 0.01% |
| 0.01% |
| 0.01% |
| 0.01% |
|
Other
Operating Expenses |
0.21% |
| 0.27% |
| 0.25% |
| 0.20% |
| 2.49% |
|
Total
Other Expenses |
0.22% |
| 0.28% |
| 0.26% |
| 0.21% |
| 2.50% |
|
|
|
|
|
|
|
|
|
|
| |
Total
Annual Fund Operating Expenses |
0.99% |
| 1.80% |
| 0.78% |
| 0.73% |
| 3.02% |
|
Fee
Waiver and/or Expense Reimbursement(1) |
0.00% |
| 0.00% |
| (0.05)% |
| (0.03)% |
| (2.36)% |
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement(1) |
0.99% |
| 1.80% |
| 0.73% |
| 0.70% |
| 0.66% |
|
___________________________________________
(1)Touchstone
Advisors, Inc. (the "Advisor" or "Touchstone Advisors") and Touchstone
Strategic Trust (the “Trust”) have entered into a contractual expense limitation
agreement whereby Touchstone Advisors will waive a portion of its fees or
reimburse certain Fund expenses (excluding dividend and interest expenses
relating to short sales; interest; taxes; brokerage commissions and other
transaction costs; portfolio transaction and investment related expenses,
including expenses associated with the Fund's liquidity providers; other
expenditures which are capitalized in accordance with U.S. generally accepted
accounting principles; the cost of “Acquired Fund Fees and Expenses”, if any;
and other extraordinary expenses not incurred in the ordinary course of
business) in order to limit annual Fund operating expenses to 1.00%, 1.79%,
0.72%, 0.69% and 0.65% of average daily net assets for Classes A, C, Y,
Institutional Class and Class R6 shares, respectively. This contractual
expense limitation is effective through October 29,
2023,
but can be terminated by a vote of the Board of Trustees of the Trust (the
“Board”) if it deems the termination to be beneficial to the Fund’s
shareholders. The terms of the contractual expense limitation agreement provide
that Touchstone Advisors is entitled to recoup, subject to approval by the
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 Fund. The Fund will make repayments to the Advisor only if such repayment
does not cause the annual Fund operating expenses (after the repayment is taken
into account) to exceed both (1) the expense cap in place when such amounts were
waived or reimbursed and (2) the Fund’s current expense
limitation.
Example.
This example is
intended to help you compare the cost of investing in the Fund with the cost of
investing in other mutual funds. The example assumes that you invest $10,000 in
the Fund for the time periods indicated and then, except as indicated, redeem
all of your shares at the end of those periods. The example also assumes
that your investment has a 5% return each year, that the Fund’s operating
expenses remain the same and that all fee waivers or expense limits for the Fund
will expire after one year. Although your actual costs may be higher or
lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Assuming Redemption at End of Period |
Assuming No Redemption |
|
Class A |
| Class C |
| Class Y |
| Institutional Class |
| Class
R6 |
| Class C |
1
Year |
$ |
596 |
|
| $ |
283 |
|
| $ |
75 |
|
| $ |
72 |
|
| $ |
67 |
|
| $ |
183 |
|
3
Years |
$ |
800 |
|
| $ |
566 |
|
| $ |
244 |
|
| $ |
230 |
|
| $ |
710 |
|
| $ |
566 |
|
5
Years |
$ |
1,020 |
|
| $ |
975 |
|
| $ |
428 |
|
| $ |
403 |
|
| $ |
1,379 |
|
| $ |
975 |
|
10
Years |
$ |
1,652 |
|
| $ |
2,116 |
|
| $ |
961 |
|
| $ |
904 |
|
| $ |
3,169 |
|
| $ |
2,116 |
|
Portfolio
Turnover.
The Fund pays transaction
costs, such as brokerage commissions, when it buys and sells securities (or
“turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not
reflected in total annual Fund operating expenses or in the example, affect the
Fund’s performance. During the most recent fiscal year, the Fund’s
portfolio turnover rate was 27% of the average value of its
portfolio.
The Fund’s Principal Investment
Strategies
The
Fund invests, under normal market conditions, at least 80% of its assets in
large capitalization equity securities. The Fund invests primarily in issuers
having a market capitalization, at the time of purchase, above $5 billion. The
Fund’s 80% policy is a non-fundamental investment policy that can be changed by
the Fund upon 60 days’ prior notice to shareholders. Equity securities include
common stock and preferred stock. These securities may be listed on an exchange
or traded over-the-counter.
In
selecting securities for the Fund, Fort Washington Investment
Advisors, Inc. (“Fort Washington”), the Fund’s sub-advisor, seeks to invest
in companies that:
•Are
trading below its estimate of the companies’ intrinsic value; and
•Have
a sustainable competitive advantage or a high barrier to entry in place. The
barrier(s) to entry can be created through a cost advantage, economies of
scale, high customer loyalty, or a government barrier (e.g., license or
subsidy). Fort Washington believes that the strongest barrier to entry is the
combination of economies of scale and higher customer loyalty.
The
Fund will generally hold 25 to 45 companies, with residual cash and equivalents
expected to represent less than 10% of the Fund’s net assets. The Fund may, at
times, hold fewer securities and a higher percentage of cash and equivalents
when, among other reasons, Fort Washington cannot find a sufficient number of
securities that meets its purchase requirements. Although the Fund may invest in
any economic sector, at times it may emphasize one or more particular
sectors.
The
Fund may invest up to 35% of its assets in securities of foreign issuers through
the use of ordinary shares or depositary receipts such as American Depositary
Receipts (“ADRs”). The Fund may also invest in securities of emerging market
countries. Emerging market countries are generally countries that are included
in the Morgan Stanley Capital International (“MSCI”) Emerging Markets Index.
The
Fund will generally sell a security if it reaches Fort Washington’s estimate of
fair value, if a more attractive investment opportunity is available, or if a
structural change has taken place and Fort Washington cannot reliably estimate
the impact of the change on the business fundamentals.
The Fund is non-diversified and, therefore
may, from time to time, have significant exposure to a limited number of
issuers.
The Fund’s Principal Risks
The Fund’s share price will
fluctuate. You could lose money on your investment in the Fund and
the Fund could also return less than other investments.
Investments in the Fund are not
bank guaranteed, are not deposits, and are not insured by the Federal Deposit
Insurance Corporation (the "FDIC") or any other federal government
agency.
As
with any mutual fund, there is no guarantee that the Fund will achieve its
investment goal. You can find more information about the Fund’s
investments and risks under the “Principal Investment Strategies and Risks”
section of the Fund’s prospectus. The Fund is subject to the principal risks
summarized below.
Equity
Securities Risk:
The
Fund is subject to the risk that stock prices will fall over short or extended
periods of time. Individual companies may report poor results or be negatively
affected by industry and/or economic trends and developments, or as a result of
irregular and/or unexpected trading activity among retail investors. The prices
of securities issued by these companies may decline in response to such
developments, which could result in a decline in the value of the Fund’s
shares.
•Large-Cap
Risk:
Large-cap
companies may be unable to respond quickly to new competitive challenges, such
as changes in technology and consumer tastes, and also may not be able to attain
the high growth rate of successful smaller companies, especially during extended
periods of economic expansion.
•Mid-Cap
Risk:
Stocks of mid-sized companies may be subject to more abrupt or erratic market
movements than stocks of larger, more established companies. Mid-sized companies
may have limited product lines or financial resources, and may be dependent upon
a particular niche of the market.
•Preferred
Stock Risk:
In
the event an issuer is liquidated or declares bankruptcy, the claims of owners
of bonds take precedence over the claims of those who own preferred and common
stock. If interest rates rise, the fixed dividend on preferred stocks may be
less attractive, causing the price of preferred stocks to decline.
Non-Diversification
Risk: The
Fund is non-diversified, which means that it may invest a greater percentage of
its assets than a diversified mutual fund in the securities of a limited number
of issuers. The use of a non-diversified investment strategy may increase the
volatility of the Fund’s investment performance, as the Fund may be more
susceptible to risks associated with a single economic, political or regulatory
event.
Management
Risk:
In
managing the Fund’s portfolio, the Advisor engages one or more sub-advisors to
make investment decisions for a portion of or the entire portfolio. There is a
risk that the Advisor may be unable to identify and retain sub-advisors who
achieve superior investment returns relative to other similar
sub-advisors.
Economic
and Market Events Risk:
Events in the U.S. and global financial markets, including actions taken by the
U.S. Federal Reserve or foreign central banks to stimulate or stabilize economic
growth, may at times, and for varying periods of time, result in unusually high
market volatility, which could negatively impact the Fund’s performance and
cause the Fund to experience illiquidity, shareholder redemptions, or other
potentially adverse effects. Reduced liquidity in credit and fixed-income
markets could negatively affect issuers worldwide. Financial institutions could
suffer losses as interest rates rise or economic conditions deteriorate. In
addition, the Funds' service providers are susceptible to operational and
information or cyber security risks that could result in losses to a Fund and
its shareholders. Cyber security breaches are either intentional or
unintentional events that allow an unauthorized party to gain access to Fund
assets, customer data, or proprietary information, or cause a Fund or Fund
service provider to suffer data corruption or lose operational functionality. A
cyber security breach could result in the loss or theft of customer data or
funds, loss or theft of proprietary information or corporate data, physical
damage to a computer or network system, or costs associated with system repairs,
any of which could have a substantial impact on a Fund. Such incidents could
affect issuers in which a Fund invests, thereby causing the Fund’s investments
to lose value.
Foreign
Securities Risk: Investing
in foreign securities poses additional risks since political and economic events
unique in a country or region will affect those markets and their issuers, while
such events may not necessarily affect the U.S. economy or issuers located in
the United States. In addition, investments in foreign securities are generally
denominated in foreign currency. As a result, changes in the value of those
currencies compared to the U.S. dollar may affect (positively or negatively) the
value of the Fund's investments. There are also risks associated with foreign
accounting standards, government regulation, market information, and clearance
and settlement procedures. Foreign markets may be less liquid and more volatile
than U.S. markets and offer less protection to investors.
•Depositary
Receipts Risk:
Foreign
receipts, which include ADRs, Global Depositary Receipts, and European
Depositary Receipts, are securities that evidence ownership interests in a
security or a pool of securities issued by a foreign issuer. The risks of
depositary receipts include many risks associated with investing directly in
foreign securities.
•Emerging
Markets Risk:
Emerging markets may be more likely to experience political turmoil or rapid
changes in market or economic conditions than more developed countries. In
addition, the financial stability of issuers (including governments) in emerging
market countries may be more precarious than that of issuers in other
countries.
Sector
Focus Risk: A
fund that focuses its investments in the securities of a particular market
sector is subject to the risk that adverse circumstances will have a greater
impact on the fund than a fund that does not focus its investments in a
particular sector.
The Fund’s
Performance
Before
the Fund commenced operations, the assets and liabilities of the Sentinel Common
Stock Fund (the “Predecessor Fund”) were transferred to the Fund in a tax-free
reorganization on October 27, 2017 (the “Reorganization”). The investment
objectives, guidelines, and restrictions of the Predecessor Fund were similar to
those of the Fund. The performance information included prior to the
Reorganization is that of the Predecessor Fund.
The
bar chart and performance table below illustrate some indication of the risks
and volatility of an investment in the Fund by showing changes in the Fund’s
performance from calendar year to calendar year and by showing how the Fund’s
average annual total returns for one year, five years, and ten years compare
with the S&P 500® Index. The bar chart does not reflect any
sales charges, which would reduce your return. The performance table reflects
any applicable sales charges. Past performance (before and
after taxes) does not necessarily indicate how the Fund will perform in the
future. More recent performance information is available at no
cost by visiting TouchstoneInvestments.com
or by calling 1.800.543.0407.
Touchstone Large Cap Focused Fund - Class A Shares
Total Return as of December 31
|
|
|
|
|
|
|
| |
Best Quarter:
2nd Quarter
2020 20.31% |
|
Worst Quarter:
1st Quarter
2020 (17.79)% |
The return of the Fund's Class A
shares for the nine months ended September 30, 2022 was
(23.63)%.
After-tax returns are
calculated using the highest individual marginal federal income tax rates in
effect on a given distribution reinvestment date and do not reflect the impact
of state and local taxes. Your actual after-tax returns may differ from those
shown and depend on your tax situation. The after-tax returns do not
apply to shares held in an individual retirement account ("IRA"), 401(k), or
other tax-advantaged account. The after-tax returns shown in
the table are for Class A shares only. The after-tax returns for other classes
of shares offered by the Fund will differ from the Class A shares' after-tax
returns. The Return After Taxes on
Distributions and Sale of Fund Shares may be greater than other returns for the
same period due to a tax benefit of realizing a capital loss on the sale of Fund
shares.
Class R6 shares commenced operations on
October 28, 2021 and do not have a full calendar year of
performance. Class R6 shares would have had substantially
similar annual returns to Class A, Class C, Class Y and Institutional Class
shares because the shares are invested in the same portfolio of securities and
the annual returns differ only to the extent that the share classes do not have
the same shareholder fees and operating expenses.
Average Annual Total
Returns*
For the Periods Ended December 31,
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| 1
Year |
| 5
Years |
| 10
Years |
Touchstone
Large Cap Focused Fund - Class A |
|
|
|
|
| |
Return Before
Taxes |
| 19.03 |
% |
| 18.11 |
% |
| 15.55 |
% |
Return After Taxes on
Distributions |
| 17.14 |
% |
| 15.38 |
% |
| 13.32 |
% |
Return After Taxes on Distributions and
Sale of Fund Shares |
| 12.46 |
% |
| 13.89 |
% |
| 12.32 |
% |
Touchstone
Large Cap Focused Fund - Class C |
|
|
|
|
| |
Return Before
Taxes |
| 23.28 |
% |
| 18.37 |
% |
| 15.40 |
% |
Touchstone
Large Cap Focused Fund - Class Y** |
|
|
|
|
| |
Return Before
Taxes |
| 25.61 |
% |
| 19.64 |
% |
| 16.47 |
% |
Touchstone
Large Cap Focused Fund - Institutional Class*** |
|
|
|
|
| |
Return Before
Taxes |
| 25.64 |
% |
| 19.71 |
% |
| 16.41 |
% |
S&P
500®
Index (reflects no deduction for
fees, expenses or taxes) |
| 28.71 |
% |
| 18.47 |
% |
| 16.55 |
% |
*Returns are not presented
for Class R6 shares, which commenced operations on October 28, 2021. Performance
information for Class R6 shares will be shown when those shares have a full
calendar year of operations. An investor transacting in Class R6 shares may be
required to pay a commission to a broker for effecting such transactions on an
agency basis. Such commissions will not be reflected in the
table.
**Class Y shares of the Fund
assumed the performance history of Class I shares of the Predecessor
Fund.
***Institutional Class shares
of the Fund assumed the performance history of Class R6 shares of the
Predecessor Fund. Performance of Class R6 shares of the Predecessor Fund prior
to December 23, 2014 (the inception date for Class R6 shares) is based on the
Predecessor Fund's Class A share performance.
The
Fund’s Management
Investment
Advisor
Touchstone
Advisors, Inc. serves as the Fund’s investment advisor.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Sub-Advisor |
|
Portfolio
Manager |
|
Investment Experience with the Fund |
|
Primary Title with
Sub-Advisor |
Fort
Washington Investment Advisors, Inc. |
|
James
Wilhelm |
|
Since
inception in October 2017 |
|
Managing
Director & Senior Portfolio Manager |
Buying
and Selling Fund Shares
Minimum
Investment Requirements
|
|
|
|
|
|
|
|
|
|
| |
|
Classes A, C, and Y |
| Initial Investment |
| Additional Investment |
Regular
Account |
$ |
2,500 |
|
| $ |
50 |
|
Retirement
Account or Custodial Account under the Uniform Gifts/Transfers to Minors
Act |
$ |
1,000 |
|
| $ |
50 |
|
Investments
through the Automatic Investment Plan |
$ |
100 |
|
| $ |
50 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Institutional Class |
|
Initial Investment |
| Additional Investment |
Regular
Account |
$ |
500,000 |
|
| $ |
50 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Class
R6 |
|
Initial Investment |
| Additional Investment |
Regular
Account |
$ |
50,000 |
|
| $ |
50 |
|
Class
R6 shares held on the Fund’s records require a $50,000 minimum initial
investment and have a $50 subsequent investment minimum. Financial
intermediaries may set different minimum initial and additional investment
requirements, may impose other restrictions or may charge you fees for their
services.
Fund
shares may be purchased and sold on days that the New York Stock Exchange is
open for trading. Existing Class A, Class C and Institutional Class shareholders
may purchase shares directly through Touchstone Funds via the transfer agent,
BNY Mellon, or through their financial intermediary. Class Y shares are
available only through financial intermediaries who have appropriate selling
agreements in place with Touchstone Securities. Shares may be purchased or sold
by writing to Touchstone Securities at P.O. Box 9878, Providence, Rhode
Island 02940, calling 1.800.543.0407, or visiting the Touchstone Funds’ website:
TouchstoneInvestments.com. You may only sell shares over the telephone or
via the Internet if the value of the shares sold is less than or equal to
$100,000. Shares held in IRAs and qualified retirement plans cannot be sold via
the Internet. If your shares are held by a processing organization or financial
intermediary you will need to follow its purchase and redemption procedures. For
more information about buying and selling shares, see the "Investing with
Touchstone" section of the Fund’s prospectus or call 1.800.543.0407.
Tax
Information
The
Fund intends to make distributions that may be taxed as ordinary income or
capital gains except when shares are held through a tax-advantaged account, such
as a 401(k) plan or an IRA. Withdrawals from a tax-advantaged account, however,
may be taxable.
Financial
Intermediary Compensation
If
you purchase shares in the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related companies may pay the
intermediary for the sale of Fund shares and related services. These
payments may create a conflict of interest by influencing the broker-dealer or
other financial intermediary and your salesperson to recommend the Fund over
another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
TOUCHSTONE LARGE CAP FUND
SUMMARY
The Fund’s Investment
Goal
The Touchstone Large Cap Fund
(the “Fund”) seeks to provide investors with long-term capital
growth.
The Fund’s Fees and
Expenses
This
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
You may qualify for sales charge discounts
for Class A shares of Touchstone equity funds and Touchstone fixed income
funds if you and your family invest, or agree to invest in the future, at least
$25,000 or $50,000, respectively, in Touchstone
funds. More information about these and other discounts is
available from your financial professional, in the section titled “Choosing a
Class of Shares” in the Fund’s prospectus and Statement of Additional
Information ("SAI") on page 77 and 78, respectively, and in Appendix
A–Intermediary-Specific Sales Charge Waivers and Discounts to
the Fund's prospectus.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Class A |
| Class C |
| Class Y |
| Institutional Class |
Shareholder Fees (fees paid directly from
your investment) |
|
| |
| |
| |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.00% |
| None |
| None |
| None |
Maximum
Deferred Sales Charge (Load) (as a percentage of original purchase price
or the amount redeemed, whichever is less) |
None |
| 1.00% |
| None |
| None |
Wire
Redemption Fee |
Up
to $15 |
| Up
to $15 |
| Up
to $15 |
| Up
to $15 |
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your
investment) |
|
| |
| |
| |
Management
Fees |
0.60% |
| 0.60% |
| 0.60% |
| 0.60% |
Distribution
and/or Shareholder Service (12b-1) Fees |
0.25% |
| 1.00% |
| None |
| None |
Other
Expenses |
|
|
|
|
|
| |
Liquidity
Provider Expense |
0.02% |
| 0.02% |
| 0.02% |
| 0.02% |
Other
Operating Expenses |
0.61% |
| 0.50% |
| 0.26% |
| 0.20% |
Total
Other Expenses |
0.63% |
| 0.52% |
| 0.28% |
| 0.22% |
|
|
|
|
|
|
| |
Total
Annual Fund Operating Expenses |
1.48% |
| 2.12% |
| 0.88% |
| 0.82% |
Fee
Waiver and/or Expense Reimbursement(1) |
(0.43)% |
| (0.32)% |
| (0.08)% |
| (0.12)% |
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement(1) |
1.05% |
| 1.80% |
| 0.80% |
| 0.70% |
___________________________________________
(1)Touchstone Advisors, Inc.
(the "Advisor" or "Touchstone Advisors") and Touchstone Strategic Trust (the
“Trust”) have entered into a contractual expense limitation agreement whereby
Touchstone Advisors will waive a portion of its fees or reimburse certain Fund
expenses (excluding dividend and interest expenses relating to short sales;
interest; taxes; brokerage commissions and other transaction costs; portfolio
transaction and investment related expenses, including expenses associated with
the Fund's liquidity providers; other expenditures which are capitalized in
accordance with U.S. generally accepted accounting principles; the cost of
“Acquired Fund Fees and Expenses”, if any; and other extraordinary expenses not
incurred in the ordinary course of business) in order to limit annual Fund
operating expenses to 1.03%, 1.78%, 0.78%, and 0.68% of average daily net assets
for Classes A, C, Y, and Institutional Class shares, respectively. This
contractual expense limitation is effective through October 29,
2023, but can be
terminated by a vote of the Board of Trustees of the Trust (the “Board”) if it
deems the termination to be beneficial to the Fund’s shareholders. The terms of
the contractual expense limitation agreement provide that Touchstone Advisors is
entitled to recoup, subject to approval by the 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 Fund. The Fund will make
repayments to the Advisor only if such repayment does not cause the annual Fund
operating expenses (after the repayment is taken into account) to exceed both
(1) the expense cap in place when such amounts were waived or reimbursed and (2)
the Fund’s current expense limitation.
Example.
This example is
intended to help you compare the cost of investing in the Fund with the cost of
investing in other mutual funds. The example assumes that you invest
$10,000 in the Fund for the time periods indicated and then, except as
indicated, redeem all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year, that the
Fund’s operating expenses remain the same and that all fee waivers or expense
limits for the Fund will expire after one year. Although your actual costs
may be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Assuming Redemption at End of Period |
| Assuming No Redemption |
|
Class A |
| Class C |
| Class Y |
| Institutional Class |
| Class C |
1
Year |
$ |
602 |
|
| $ |
283 |
|
| $ |
82 |
|
| $ |
72 |
|
| $ |
183 |
|
3
Years |
$ |
904 |
|
| $ |
633 |
|
| $ |
273 |
|
| $ |
250 |
|
| $ |
633 |
|
5
Years |
$ |
1,229 |
|
| $ |
1,110 |
|
| $ |
480 |
|
| $ |
443 |
|
| $ |
1,110 |
|
10
Years |
$ |
2,145 |
|
| $ |
2,427 |
|
| $ |
1,077 |
|
| $ |
1,002 |
|
| $ |
2,427 |
|
Portfolio
Turnover.
The Fund pays transaction
costs, such as brokerage commissions, when it buys and sells securities (or
“turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not
reflected in total annual Fund operating expenses or in the example, affect the
Fund’s performance. During the most recent fiscal year, the Fund’s
portfolio turnover rate was 12% of the average value of its
portfolio.
The Fund’s Principal Investment
Strategies
The
Fund invests, under normal market conditions, at least 80% of its assets in
common stocks of large capitalization U.S. listed companies. For purposes of the
Fund, a large capitalization company has a market capitalization within the
range represented in the Russell 1000® Index
(between approximately $1.4 billion and $2.2 trillion as of September 30,
2022) at the time of purchase. The size of the companies in the Russell
1000® Index
will change with market conditions.
London
Company of Virginia d/b/a/ The London Company (“The London Company”), the Fund’s
sub-advisor, seeks to purchase financially stable large-cap companies that it
believes are consistently generating high returns on unleveraged operating
capital, run by shareholder-oriented management, and trading at a discount to
the company’s respective private market values. Guiding principles of The London
Company’s large-cap philosophy include: (1) a focus on cash return on
tangible capital, not earnings per share; (2) balance sheet optimization;
(3) optimal allocation of investments is essential to good investment
results; and (4) low turnover and tax sensitivity enhances real returns.
The
Fund will typically hold approximately 30 to 40 securities. The London Company
invests for the long term and attempts to minimize turnover in an effort to
reduce transaction costs and taxes. The Fund may invest a high percentage of its
assets in specific sectors of the market in order to achieve a potentially
greater investment return. The London Company generally sells a security when:
it becomes overvalued and has reached its price target; the issuer’s
fundamentals deteriorate; there is significant trading activity by insiders; or
there is a more promising alternative. The London Company may also sell a
security to adjust the Fund’s overall portfolio
risk.
The Fund’s Principal Risks
The
Fund’s share price will fluctuate. You could lose money on your investment in the Fund and
the Fund could also return less than other investments.
Investments in the Fund are not
bank guaranteed, are not deposits, and are not insured by the Federal Deposit
Insurance Corporation (the "FDIC") or any other federal government
agency.
As
with any mutual fund, there is no guarantee that the Fund will achieve its
investment goal. You can find more information about the Fund’s
investments and risks under the “Principal Investment Strategies and Risks”
section of the Fund’s prospectus. The Fund is subject to the principal risks
summarized below.
Equity
Securities Risk:
The
Fund is subject to the risk that stock prices will fall over short or extended
periods of time. Individual companies may report poor results or be negatively
affected by industry and/or economic trends and developments, or as a result of
irregular and/or unexpected trading activity among retail investors. The prices
of securities issued by these companies may decline in response to such
developments, which could result in a decline in the value of the Fund’s
shares.
•Large-Cap
Risk:
Large-cap
companies may be unable to respond quickly to new competitive challenges, such
as changes in technology and consumer tastes, and also may not be able to attain
the high growth rate of successful smaller companies, especially during extended
periods of economic expansion.
Management
Risk:
In
managing the Fund’s portfolio, the Advisor engages one or more sub-advisors to
make investment decisions for a portion of or the entire portfolio. There is a
risk that the Advisor may be unable to identify and retain sub-advisors who
achieve superior investment returns relative to other similar
sub-advisors.
Economic
and Market Events Risk:
Events in the U.S. and global financial markets, including actions taken by the
U.S. Federal Reserve or foreign central banks to stimulate or stabilize economic
growth, may at times, and for varying periods of time, result in unusually high
market volatility, which could negatively impact the Fund’s performance and
cause the Fund to experience illiquidity, shareholder redemptions, or other
potentially adverse effects. Reduced liquidity in credit and fixed-income
markets could negatively affect issuers worldwide. Financial institutions could
suffer losses as interest rates rise or economic conditions deteriorate. In
addition, the Funds' service providers are susceptible to operational and
information or cyber security risks that could result in losses to a Fund and
its shareholders. Cyber security breaches are either intentional or
unintentional events that allow an unauthorized party to gain access to Fund
assets, customer data, or proprietary information, or cause a Fund or Fund
service provider to suffer data corruption or lose operational functionality. A
cyber security breach could result in the loss or theft of customer data or
funds, loss or theft of proprietary information or corporate data, physical
damage to a computer or network system, or costs associated with system repairs,
any of which could have a substantial impact on a Fund. Such incidents could
affect issuers in which a Fund invests, thereby causing the Fund’s investments
to lose value.
Sector
Focus Risk: A
fund that focuses its investments in the securities of a particular market
sector is subject to the risk that adverse circumstances will have a greater
impact on the fund than a fund that does not focus its investments in a
particular sector.
The Fund’s
Performance
The
bar chart and performance table below illustrate some indication of the risks
and volatility of an investment in the Fund by showing changes in the Fund’s
performance from calendar year to calendar year and by showing how the Fund’s
average annual total returns for one year, five years, and since inception
compare with the Russell 1000®
Index. The bar chart does not reflect any
sales charges, which would reduce your return. The performance
table reflects any applicable sales charges. Past performance (before and
after taxes) does not necessarily indicate how the Fund will perform in the
future. More recent performance information is available at no
cost by visiting TouchstoneInvestments.com
or by calling 1.800.543.0407.
Touchstone Large Cap Fund - Class A Shares Total
Return as of December 31
|
|
|
|
|
|
|
| |
Best Quarter:
2nd Quarter
2020 16.74% |
|
Worst Quarter:
1st Quarter
2020 (22.00)% |
The return of the Fund’s Class A
shares for the nine months ended September 30, 2022 was
(23.05)%.
After-tax returns are
calculated using the highest individual marginal federal income tax rates in
effect on a given distribution reinvestment date and do not reflect the impact
of state and local taxes. Your actual after-tax returns may differ from those
shown and depend on your tax situation. The after-tax returns do not
apply to shares held in an individual retirement account ("IRA"), 401(k), or
other tax-advantaged account. The after-tax returns shown in
the table are for Class A shares only. The after-tax returns for other classes
of shares offered by the Fund will differ from the Class A shares' after-tax
returns. The Return After Taxes on
Distributions and Sale of Fund Shares may be greater than other returns for the
same period due to a tax benefit of realizing a capital loss on the sale of Fund
shares.
Average
Annual Total Returns
For
the Periods Ended December 31, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| 1 Year |
| 5 Years |
|
Since
Inception (7/9/2014) |
Touchstone
Large Cap Fund - Class A |
|
|
|
| |
Return Before
Taxes |
19.34 |
% |
| 12.64 |
% |
| 10.01 |
% |
Return After Taxes on
Distributions |
18.57 |
% |
| 12.05 |
% |
| 9.57 |
% |
Return After Taxes on Distributions and
Sale of Fund Shares |
11.98 |
% |
| 10.02 |
% |
| 8.03 |
% |
Touchstone
Large Cap Fund - Class C |
|
|
|
| |
Return Before
Taxes |
23.65 |
% |
| 13.13 |
% |
| 10.07 |
% |
Touchstone
Large Cap Fund - Class Y |
|
|
|
| |
Return Before
Taxes |
25.85 |
% |
| 14.27 |
% |
| 11.15 |
% |
Touchstone
Large Cap Fund - Institutional Class |
|
|
|
| |
Return Before
Taxes |
26.01 |
% |
| 14.39 |
% |
| 11.26 |
% |
Russell
1000®
Index
(reflects no deduction for
fees, expenses or taxes) |
26.45 |
% |
| 18.43 |
% |
| 14.58 |
% |
The
Fund’s Management
Investment
Advisor
Touchstone
Advisors, Inc. serves as the Fund’s investment advisor.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Sub-Advisor |
|
Portfolio
Manager |
|
Investment Experience with the Fund |
|
Primary Title with
Sub-Advisor |
London
Company of Virginia d/b/a/ The London Company |
|
Stephen
Goddard, CFA |
|
Since
inception in July 2014 |
|
Founder,
CIO and Co-Lead Portfolio Manager |
|
| J.
Brian Campbell, CFA |
| Since
October 2019 |
| Principal
and Portfolio Manager |
|
| Mark
DeVaul, CFA, CPA |
| Since
October 2019 |
| Principal
and Portfolio Manager |
|
| Jonathan
Moody, CFA |
| Since
October 2019 |
| Principal
and Portfolio Manager |
|
| Sam
Hutchings, CFA |
| Since
October 2019 |
| Principal
and Co-Lead Portfolio Manager |
Buying
and Selling Fund Shares
Minimum
Investment Requirements
|
|
|
|
|
|
|
|
|
|
| |
|
Classes A, C, and Y |
| Initial Investment |
| Additional Investment |
Regular
Account |
$ |
2,500 |
|
| $ |
50 |
|
Retirement
Account or Custodial Account under the Uniform Gifts/Transfers to Minors
Act |
$ |
1,000 |
|
| $ |
50 |
|
Investments
through the Automatic Investment Plan |
$ |
100 |
|
| $ |
50 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Institutional Class |
|
Initial Investment |
| Additional Investment |
Regular
Account |
$ |
500,000 |
|
| $ |
50 |
|
Fund
shares may be purchased and sold on days that the New York Stock Exchange is
open for trading. Existing Class A, Class C and Institutional Class shareholders
may purchase shares directly through Touchstone Funds via the transfer agent,
BNY Mellon, or through their financial intermediary. Class Y shares are
available only through financial intermediaries who have appropriate selling
agreements in place with Touchstone Securities. Shares may be purchased or sold
by writing to Touchstone
Securities
at P.O. Box 9878, Providence, Rhode Island 02940, calling 1.800.543.0407,
or visiting the Touchstone Funds’ website: TouchstoneInvestments.com. You
may only sell shares over the telephone or via the Internet if the value of the
shares sold is less than or equal to $100,000. Shares held in IRAs and qualified
retirement plans cannot be sold via the Internet. If your shares are held by a
processing organization or financial intermediary you will need to follow its
purchase and redemption procedures. For more information about buying and
selling shares, see the "Investing with Touchstone" section of the Fund’s
prospectus or call 1.800.543.0407.
Tax
Information
The
Fund intends to make distributions that may be taxed as ordinary income or
capital gains except when shares are held through a tax-advantaged account, such
as a 401(k) plan or an IRA. Withdrawals from a tax-advantaged account, however,
may be taxable.
Financial
Intermediary Compensation
If
you purchase shares in the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related companies may pay the
intermediary for the sale of Fund shares and related services. These
payments may create a conflict of interest by influencing the broker-dealer or
other financial intermediary and your salesperson to recommend the Fund over
another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
TOUCHSTONE LARGE COMPANY GROWTH FUND
SUMMARY
The Fund’s Investment
Goal
The Touchstone Large Company
Growth Fund (the “Fund”) seeks to achieve long-term capital
appreciation.
The Fund’s Fees and
Expenses
This
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
You may qualify for sales charge discounts
for Class A shares of Touchstone equity funds and Touchstone fixed income
funds if you and your family invest, or agree to invest in the future, at least
$25,000 or $50,000, respectively, in Touchstone
funds. More information about these and other discounts is
available from your financial professional, in the section titled “Choosing a
Class of Shares” in the Fund’s prospectus and Statement of Additional
Information ("SAI") on page 77 and 78, respectively, and in Appendix
A–Intermediary-Specific Sales Charge Waivers and Discounts
to the Fund's prospectus.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Class A |
| Class C |
| Class Y |
| Institutional Class |
|
Shareholder Fees (fees paid directly from
your investment) |
|
|
|
|
|
|
| |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.00% |
| None |
| None |
| None |
|
Maximum
Deferred Sales Charge (Load) (as a percentage of original purchase price
or the amount redeemed, whichever is less) |
None |
| 1.00% |
| None |
| None |
|
Wire
Redemption Fee |
Up
to $15 |
| Up
to $15 |
| Up
to $15 |
| Up
to $15 |
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your
investment) |
|
|
|
|
|
|
| |
Management
Fees |
0.60% |
| 0.60% |
| 0.60% |
| 0.60% |
|
Distribution
and/or Shareholder Service (12b-1) Fees |
0.25% |
| 1.00% |
| None |
| None |
|
Other
Expenses |
|
|
|
|
|
|
| |
Liquidity
Provider Expense |
0.03% |
| 0.03% |
| 0.03% |
| 0.03% |
|
Other
Operating Expenses |
0.70% |
| 2.61% |
| 0.34% |
| 0.21% |
|
Total
Other Expenses |
0.73% |
| 2.64% |
| 0.37% |
| 0.24% |
|
Total
Annual Fund Operating Expenses |
1.58% |
| 4.24% |
| 0.97% |
| 0.84% |
|
Fee
Waiver and/or Expense Reimbursement(1) |
(0.51)% |
| (2.42)% |
| (0.15)% |
| (0.12)% |
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement(1) |
1.07% |
| 1.82% |
| 0.82% |
| 0.72% |
|
___________________________________________
(1) Touchstone Advisors, Inc.
(the "Advisor" or "Touchstone Advisors") and Touchstone Strategic Trust (the
“Trust”) have entered into a contractual expense limitation agreement whereby
Touchstone Advisors will waive a portion of its fees or reimburse certain Fund
expenses (excluding dividend and interest expenses relating to short sales;
interest; taxes; brokerage commissions and other transaction costs; portfolio
transaction and investment related expenses, including expenses associated with
the Fund's liquidity providers; other expenditures which are capitalized in
accordance with U.S. generally accepted accounting principles; the cost of
“Acquired Fund Fees and Expenses”, if any; and other extraordinary expenses not
incurred in the ordinary course of business) in order to limit annual Fund
operating expenses to 1.04%, 1.79%, 0.79%, and 0.69% of average daily net assets
for Classes A, C, Y and Institutional Class shares, respectively. This
contractual expense limitation is effective through October 29,
2023, but can be
terminated by a vote of the Board of Trustees of the Trust (the “Board”) if it
deems the termination to be beneficial to the Fund’s shareholders. The terms of
the contractual expense limitation agreement provide that Touchstone Advisors is
entitled to recoup, subject to approval by the 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 Fund. The Fund will make
repayments to the Advisor only if such repayment does not cause the annual Fund
operating expenses (after the repayment is taken into account) to exceed both
(1) the expense cap in place when such amounts were waived or reimbursed and (2)
the Fund’s current expense limitation.
Example.
This example is intended to help
you compare the cost of investing in the Fund with the cost of investing in
other mutual funds.
The
example assumes that you invest $10,000 in the Fund for the time periods
indicated and then, except as indicated, redeem all of your shares at the end of
those periods. The example also assumes that your investment has a 5%
return each year, that the Fund’s operating expenses remain the same and that
all fee waivers or expense limits for the Fund will expire after one year.
Although your actual costs may be higher or lower, based on these assumptions
your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Assuming Redemption at End of Period |
| Assuming No Redemption |
| Class A |
| Class C |
| Class Y |
| Institutional Class |
| Class C |
1
Year |
$ |
604 |
|
| $ |
285 |
|
| $ |
84 |
|
| $ |
74 |
|
| $ |
185 |
|
3
Years |
$ |
926 |
|
| $ |
1,067 |
|
| $ |
294 |
|
| $ |
256 |
|
| $ |
1,067 |
|
5
Years |
$ |
1,272 |
|
| $ |
1,962 |
|
| $ |
522 |
|
| $ |
454 |
|
| $ |
1,962 |
|
10
Years |
$ |
2,243 |
|
| $ |
4,260 |
|
| $ |
1,176 |
|
| $ |
1,026 |
|
| $ |
4,260 |
|
Portfolio
Turnover.
The Fund pays transaction
costs, such as brokerage commissions, when it buys and sells securities (or
“turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not
reflected in total annual Fund operating expenses or in the example, affect the
Fund’s performance. During the most recent fiscal year, the Fund’s
portfolio turnover rate was 41% of the average value of its
portfolio.
The Fund’s Principal Investment
Strategies
Under
normal circumstances, the Fund will invest at least 80% of its net assets (plus
any borrowings for investment purposes) in equity securities of large
capitalization issuers. Equity securities include, but are not limited to,
common stocks, preferred stocks, securities convertible into common stocks,
rights and warrants. The Fund’s portfolio generally will contain 25 to 35 equity
securities. The Fund currently defines a large capitalization issuer as one that
has a market capitalization of $10 billion or more at the time of
purchase.
In
addition, the Fund may invest up to 20% of its assets in equity securities of
foreign issuers, including emerging markets, through, but not limited to,
American Depositary Receipts ("ADRs") or other depositary receipts. The Fund is
a
non-diversified fund
and may, from time to time, have significant exposure to one or more issuers,
geographic regions or sectors of the global economy. The Fund may invest greater
than 25% of its assets in one or more of the following sectors: consumer
discretionary, consumer staples, energy, financials, health care, industrials,
materials, technology and telecommunications services.
DSM
Capital Partners LLC ("DSM"), the Fund's sub–advisor, manages the Fund using a
bottom-up, “idea-driven,” growth-style with a long-term (i.e.,
three-year) investment horizon. This means in general terms that DSM seeks to
identify issuers which it believes exhibit certain quality characteristics. For
instance, DSM selects issuers that it believes have growing businesses with
solid fundamentals, attractive profitability, and successful managements. DSM
generally sells an equity security when its projected future return becomes
unattractive relative to the rest of the portfolio or the investable
universe.
The Fund’s Principal Risks
The
Fund’s share price will fluctuate. You could lose money on your investment in the Fund and
the Fund could also return less than other investments.
Investments in the Fund are not
bank guaranteed, are not deposits, and are not insured by the Federal Deposit
Insurance Corporation (the "FDIC") or any other federal government
agency.
As
with any mutual fund, there is no guarantee that the Fund will achieve its
investment goal. You can find more information about the Fund’s
investments and risks under the “Principal Investment Strategies and Risks”
section of the Fund’s prospectus. The Fund is subject to the principal risks
summarized below.
Equity
Securities Risk:
The
Fund is subject to the risk that stock prices will fall over short or extended
periods of time. Individual companies may report poor results or be negatively
affected by industry and/or economic trends and developments, or as a result of
irregular and/or unexpected trading activity among retail investors. The prices
of securities issued by these companies may decline in response to such
developments, which could result in a decline in the value of the Fund’s
shares.
•Large-Cap
Risk:
Large-cap
companies may be unable to respond quickly to new competitive challenges, such
as changes in technology and consumer tastes, and also may not be able to attain
the high growth rate of successful smaller companies, especially during extended
periods of economic expansion.
•Preferred
Stock Risk:
In
the event an issuer is liquidated or declares bankruptcy, the claims of owners
of bonds take precedence over the claims of those who own preferred and common
stock. If interest rates rise, the fixed dividend on preferred stocks may be
less attractive, causing the price of preferred stocks to
decline.
Growth-Investing
Risk:
Growth-oriented
funds may underperform when value investing is in favor, and growth stocks may
be more volatile than other stocks because they are more sensitive to investor
perceptions of the issuing company’s growth of earnings potential.
Management
Risk:
In
managing the Fund’s portfolio, the Advisor engages one or more sub-advisors to
make investment decisions for a portion of or the entire portfolio. There is a
risk that the Advisor may be unable to identify and retain sub-advisors who
achieve superior investment returns relative to other similar
sub-advisors.
Economic
and Market Events Risk:
Events in the U.S. and global financial markets, including actions taken by the
U.S. Federal Reserve or foreign central banks to stimulate or stabilize economic
growth, may at times, and for varying periods of time, result in unusually high
market volatility, which could negatively impact the Fund’s performance and
cause the Fund to experience illiquidity, shareholder redemptions, or other
potentially adverse effects. Reduced liquidity in credit and fixed-income
markets could negatively affect issuers worldwide. Financial institutions could
suffer losses as interest rates rise or economic conditions deteriorate. In
addition, the Funds' service providers are susceptible to operational and
information or cyber security risks that could result in losses to a Fund and
its shareholders. Cyber security breaches are either intentional or
unintentional events that allow an unauthorized party to gain access to Fund
assets, customer data, or proprietary information, or cause a Fund or Fund
service provider to suffer data corruption or lose operational functionality. A
cyber security breach could result in the loss or theft of customer data or
funds, loss or theft of proprietary information or corporate data, physical
damage to a computer or network system, or costs associated with system repairs,
any of which could have a substantial impact on a Fund. Such incidents could
affect issuers in which a Fund invests, thereby causing the Fund’s investments
to lose value.
Foreign
Securities Risk: Investing
in foreign securities poses additional risks since political and economic events
unique in a country or region will affect those markets and their issuers, while
such events may not necessarily affect the U.S. economy or issuers located in
the United States. In addition, investments in foreign securities are generally
denominated in foreign currency. As a result, changes in the value of those
currencies compared to the U.S. dollar may affect (positively or negatively) the
value of the Fund's investments. There are also risks associated with foreign
accounting standards, government regulation, market information, and clearance
and settlement procedures. Foreign markets may be less liquid and more volatile
than U.S. markets and offer less protection to investors.
•Depositary
Receipts Risk:
Foreign
receipts, which include ADRs, Global Depositary Receipts, and European
Depositary Receipts, are securities that evidence ownership interests in a
security or a pool of securities issued by a foreign issuer. The risks of
depositary receipts include many risks associated with investing directly in
foreign securities.
•Emerging
Markets Risk:
Emerging markets may be more likely to experience political turmoil or rapid
changes in market or economic conditions than more developed countries. In
addition, the financial stability of issuers (including governments) in emerging
market countries may be more precarious than that of issuers in other
countries.
Convertible
Securities Risk:
Convertible securities are subject to the risks of both debt securities and
equity securities. The values of convertible securities tend to decline as
interest rates rise and, due to the conversion feature, tend to vary with
fluctuations in the market value of the underlying security.
Non-Diversification
Risk: The
Fund is non-diversified, which means that it may invest a greater percentage of
its assets than a diversified mutual fund in the securities of a limited number
of issuers. The use of a non-diversified investment strategy may increase the
volatility of the Fund’s investment performance, as the Fund may be more
susceptible to risks associated with a single economic, political or regulatory
event.
Sector
Focus Risk: A
fund that focuses its investments in the securities of a particular market
sector is subject to the risk that adverse circumstances will have a greater
impact on the fund than a fund that does not focus its investments in a
particular sector.
The Fund’s
Performance
Before the Fund commenced
operations, all of the assets and liabilities of the DSM Large Cap Growth Fund
(the “Predecessor Fund”) were transferred to the Fund in a tax-free
reorganization (the “Reorganization”). The Reorganization occurred on August 15,
2016. As a result of the Reorganization, the Fund assumed the performance and
accounting history of the Predecessor Fund.
The
bar chart and performance table below illustrate some indication of the risks
and volatility of an investment in the Fund by showing changes in the Fund’s
performance from calendar year to calendar year and by showing how the Fund’s
average annual total returns for one year, five years and ten years compare with
the Russell 1000®
Growth Index and the S&P 500® Index. The performance
table reflects any applicable sales charges. Past performance (before and
after taxes) does not necessarily indicate how the Fund will perform in the
future. More recent performance information is available at no
cost by visiting TouchstoneInvestments.com
or by calling 1.800.543.0407.
Touchstone Large Company Growth Fund — Institutional
Class Shares Total Return as of December 31
|
|
|
|
|
|
|
| |
Best Quarter:
2nd Quarter
2020 25.76% |
|
Worst Quarter:
4th Quarter
2018 (13.37)% |
The return of the Fund’s Institutional Class
shares for the nine months ended September 30, 2022 was
(29.40)%.
After-tax returns are
calculated using the highest individual marginal federal income tax rates in
effect on a given distribution reinvestment date and do not reflect the impact
of state and local taxes. Your actual after-tax returns may differ from those
shown and depend on your tax situation. The after-tax returns do not
apply to shares held in an individual retirement account ("IRA"), 401(k), or
other tax-advantaged account. The after-tax returns shown in
the table are for Institutional Class shares only. The after-tax returns for
other classes of shares offered by the Fund will differ from the Institutional
Class shares' after-tax returns. The Return After Taxes on
Distributions and Sale of Fund Shares may be greater than other returns for the
same period due to a tax benefit of realizing a capital loss on the sale of Fund
shares.
The
inception dates of Class A shares, Class C shares, and Class Y shares was
August 15,
2016. The performance of each
share class was calculated using the historical performance of Institutional
Class shares for periods prior to August 15, 2016. Performance for these periods
has been restated to reflect the impact of the fees and expenses applicable to
Class A, Class C and Class Y shares.
Average Annual Total
Returns
For the Periods Ended December 31,
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| 1 Year |
| 5 Years |
| 10
Years |
|
Touchstone
Large Company Growth Fund - Institutional Class |
|
|
|
|
| |
Return Before
Taxes |
21.42 |
% |
| 23.02 |
% |
| 17.98 |
% |
|
Return After Taxes on
Distributions |
16.01 |
% |
| 20.22 |
% |
| 16.11 |
% |
|
Return After Taxes on Distributions and
Sale of Fund Shares |
15.82 |
% |
| 18.37 |
% |
| 14.83 |
% |
|
Touchstone
Large Company Growth Fund - Class A |
|
|
|
|
| |
Return Before
Taxes |
14.96 |
% |
| 21.14 |
% |
| 16.91 |
% |
|
Touchstone
Large Company Growth Fund - Class C |
|
|
|
|
| |
Return Before
Taxes |
19.11 |
% |
| 21.67 |
% |
| 16.73 |
% |
|
Touchstone
Large Company Growth Fund - Class Y |
|
|
|
|
| |
Return Before
Taxes |
21.30 |
% |
| 22.89 |
% |
| 17.90 |
% |
|
Russell
1000®
Growth Index (reflects no deductions for
fees, expenses or taxes) |
27.60 |
% |
| 25.32 |
% |
| 19.79 |
% |
|
S&P
500®
Index
(reflects no deductions for
fees, expenses or taxes) |
28.71 |
% |
| 18.47 |
% |
| 16.55 |
% |
|
The
Fund’s Management
Investment
Advisor
Touchstone
Advisors, Inc. serves as the Fund’s investment advisor.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Sub-
Advisor |
| Portfolio
Manager |
|
Investment Experience
with
the Fund and the Predecessor Fund |
| Primary Title with
Sub-Advisor |
DSM
Capital Partners LLC |
| Daniel
Strickberger |
| Since
inception in August 2016; managed the Predecessor Fund from 2009 to
2016 |
| Chief
Investment Officer and Managing Partner |
|
|
David
McVey |
|
Since
inception in August 2016; managed the Predecessor Fund from 2009 to
2016 |
|
Deputy
Chief Investment Officer and Portfolio Manager |
|
| Eric
Woodworth, CFA |
| Since
October 2021 |
|
Deputy
Chief Investment Officer and Portfolio
Manager |
Buying
and Selling Fund Shares
Minimum
Investment Requirements
|
|
|
|
|
|
|
|
|
|
| |
|
Classes A, C, and Y |
| Initial Investment |
| Additional Investment |
Regular
Account |
$ |
2,500 |
|
| $ |
50 |
|
Retirement
Account or Custodial Account under the Uniform Gifts/Transfers to Minors
Act |
$ |
1,000 |
|
| $ |
50 |
|
Investments
through the Automatic Investment Plan |
$ |
100 |
|
| $ |
50 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Institutional Class |
|
Initial Investment |
| Additional Investment |
Regular
Account |
$ |
500,000 |
|
| $ |
50 |
|
Fund
shares may be purchased and sold on days that the New York Stock Exchange is
open for trading. Existing Class A, Class C and Institutional Class shareholders
may purchase shares directly through Touchstone Funds via the transfer agent,
BNY Mellon, or through their financial intermediary. Class Y shares are
available only through financial intermediaries who have appropriate selling
agreements in place with Touchstone Securities. Shares may be purchased or sold
by writing to Touchstone Securities at P.O. Box 9878, Providence, Rhode
Island 02940, calling 1.800.543.0407, or visiting the Touchstone Funds’ website:
TouchstoneInvestments.com. You may only sell shares over the telephone or
via the Internet if the value of the shares
sold
is less than or equal to $100,000. Shares held in IRAs and qualified retirement
plans cannot be sold via the Internet. If your shares are held by a processing
organization or financial intermediary you will need to follow its purchase and
redemption procedures. For more information about buying and selling shares, see
the "Investing with Touchstone" section of the Fund’s prospectus or call
1.800.543.0407.
Tax
Information
The
Fund intends to make distributions that may be taxed as ordinary income or
capital gains except when shares are held through a tax-advantaged account, such
as a 401(k) plan or an IRA. Withdrawals from a tax-advantaged account, however,
may be taxable.
Financial
Intermediary Compensation
If
you purchase shares in the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related companies may pay the
intermediary for the sale of Fund shares and related services. These
payments may create a conflict of interest by influencing the broker-dealer or
other financial intermediary and your salesperson to recommend the Fund over
another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
TOUCHSTONE SMALL COMPANY FUND
SUMMARY
The Fund’s Investment
Goal
The Touchstone Small Company
Fund (the “Fund”) seeks to provide investors with growth of
capital.
The Fund’s Fees and
Expenses
This
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
You may qualify for sales charge discounts
for Class A shares of Touchstone equity funds and Touchstone fixed income
funds if you and your family invest, or agree to invest in the future, at least
$25,000 or $50,000, respectively, in Touchstone
funds. More information about these and other discounts is
available from your financial professional, in the section titled “Choosing a
Class of Shares” in the Fund’s prospectus and Statement of Additional
Information ("SAI") on page 77 and 78, respectively, and in Appendix
A–Intermediary-Specific Sales Charge Waivers and Discounts to
the Fund's prospectus.
An
investor transacting in Class R6 shares, which do not have any front-end sales
charge, contingent deferred sales charge, or other asset-based fee for sales or
distribution, may be required to pay a commission to a broker for effecting such
transactions on an agency basis. Such commissions are not reflected in the table
or in the "Example" below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Class A |
| Class C |
| Class Y |
| Institutional Class |
| Class
R6 |
|
Shareholder Fees (fees paid directly from
your investment) |
|
| |
| |
| |
|
| |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.00% |
| None |
| None |
| None |
| None |
|
Maximum
Deferred Sales Charge (Load) (as a percentage of original purchase price
or the amount redeemed, whichever is less) |
None |
| 1.00% |
| None |
| None |
| None |
|
Wire
Redemption Fee |
Up
to $15 |
| Up
to $15 |
| Up
to $15 |
| Up
to $15 |
| Up
to $15 |
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your
investment) |
|
| |
| |
| |
|
| |
Management
Fees |
0.67% |
| 0.67% |
| 0.67% |
| 0.67% |
| 0.67% |
|
Distribution
and/or Shareholder Service (12b-1) Fees |
0.25% |
| 1.00% |
| None |
| None |
| None |
|
Other
Expenses |
|
|
|
|
|
|
|
|
| |
Liquidity
Provider Expense |
0.02% |
| 0.02% |
| 0.02% |
| 0.02% |
| 0.02% |
|
Other
Operating Expenses |
0.23% |
| 0.33% |
| 0.28% |
| 0.27% |
| 0.18% |
|
Total
Other Expenses |
0.25% |
| 0.35% |
| 0.30% |
| 0.29% |
| 0.20% |
|
|
|
|
|
|
|
|
|
|
| |
Total
Annual Fund Operating Expenses |
1.17% |
| 2.02% |
| 0.97% |
| 0.96% |
| 0.87% |
|
Fee
Waiver and/or Expense Reimbursement(1) |
0.00% |
| (0.05)% |
| (0.06)% |
| (0.15)% |
| (0.06)% |
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement(1) |
1.17% |
| 1.97% |
| 0.91% |
| 0.81% |
| 0.81% |
|
___________________________________________
(1)Touchstone
Advisors, Inc. (the "Advisor" or "Touchstone Advisors") and Touchstone
Strategic Trust (the “Trust”) have entered into a contractual expense limitation
agreement whereby Touchstone Advisors will waive a portion of its fees or
reimburse certain Fund expenses (excluding dividend and interest expenses
relating to short sales; interest; taxes; brokerage commissions and other
transaction costs; portfolio transaction and investment related expenses,
including expenses associated with the Fund's liquidity providers; other
expenditures which are capitalized in accordance with U.S. generally accepted
accounting principles; the cost of “Acquired Fund Fees and Expenses”, if any;
and other extraordinary expenses not incurred in the ordinary course of
business) in order to limit annual Fund operating expenses to 1.22%, 1.95%,
0.89%, 0.79%, and 0.79% of average daily net assets for Classes A,
C, Y, Institutional Class, and Class R6 shares,
respectively. This contractual expense limitation is effective through
October 29,
2023,
but can be terminated by a vote of the Board of Trustees of the Trust (the
“Board”) if it deems the termination to be beneficial to the Fund’s
shareholders. The terms of the contractual expense limitation agreement provide
that Touchstone Advisors is entitled to recoup, subject to approval by the
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 Fund. The Fund will make repayments to the Advisor only if such repayment
does not cause the annual Fund operating expenses (after the repayment is taken
into account) to exceed both (1) the expense cap in place when such amounts were
waived or reimbursed and (2) the Fund’s current expense
limitation.
Example.
This example is intended to help
you compare the cost of investing in the Fund with the cost of investing in
other mutual funds. The example assumes that you invest $10,000 in the Fund for
the time periods indicated and then, except as indicated, redeem all of your
shares at the end of those periods. The example also assumes that your
investment has a 5% return
each year, that the Fund’s operating
expenses remain the same and that all fee waivers or expense limits for the Fund
will expire after one year. Although your actual costs may be higher or
lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Assuming Redemption at End of Period |
| Assuming No Redemption |
|
Class A |
| Class C |
| Class Y |
| Institutional Class |
| Class
R6 |
| Class C |
1
Year |
$ |
613 |
|
| $ |
300 |
|
| $ |
93 |
|
| $ |
83 |
|
| $ |
83 |
|
| $ |
200 |
|
3
Years |
$ |
853 |
|
| $ |
629 |
|
| $ |
303 |
|
| $ |
291 |
|
| $ |
272 |
|
| $ |
629 |
|
5
Years |
$ |
1,111 |
|
| $ |
1,083 |
|
| $ |
530 |
|
| $ |
516 |
|
| $ |
476 |
|
| $ |
1,083 |
|
10
Years |
$ |
1,849 |
|
| $ |
2,344 |
|
| $ |
1,184 |
|
| $ |
1,164 |
|
| $ |
1,067 |
|
| $ |
2,344 |
|
Portfolio
Turnover.
The Fund pays transaction
costs, such as brokerage commissions, when it buys and sells securities (or
“turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not
reflected in total annual Fund operating expenses or in the example, affect the
Fund’s performance. During the most recent fiscal year, the Fund’s
portfolio turnover rate was 70% of the average value of its
portfolio.
The Fund’s Principal Investment
Strategies
The
Fund normally invests at least 80% of its assets in small–capitalization
companies. For this purpose, small capitalization companies are companies that
have market capitalizations within the range represented in the Russell
2000®
Index (between approximately $15 million and $10.8 billion as of September 30,
2022). The market cap range of the Russell 2000®
Index will change with market conditions. The Fund seeks to invest primarily in
common stocks of small-capitalization companies that Fort Washington Investment
Advisors, Inc. ("Fort Washington"), the Fund's sub-advisor, believes are high
quality, have superior business models, solid management teams, sustainable
growth potential and are attractively valued. The Fund may invest without
limitation in foreign securities, although only where the securities are trading
in the U.S. or Canada and only where trading is denominated in U.S. or Canadian
dollars.
Up
to 25% of the Fund's assets may be invested in securities within a single
industry. Although the Fund may invest in any economic sector, at times it may
emphasize one or more particular sectors. At times the Fund may have less than
80% of its investments in companies within the market cap range of the Russell
2000®
Index
due to market appreciation.
The
Fund would typically sell a security if the portfolio managers believe it is
overvalued, if the original investment premise is no longer true, if the holding
size exceeds the portfolio managers' company or sector weighting guidelines
and/or to take advantage of a more attractive investment opportunity. The Fund
may also sell a partial position in a security in order to manage the size of
the position. A security may also be sold to meet
redemptions.
The Fund’s Principal Risks
The
Fund’s share price will fluctuate. You could lose money on your investment in the Fund and
the Fund could also return less than other investments.
Investments in the Fund are not
bank guaranteed, are not deposits, and are not insured by the Federal Deposit
Insurance Corporation (the "FDIC") or any other federal government
agency.
As
with any mutual fund, there is no guarantee that the Fund will achieve its
investment goal. You can find more information about the Fund’s
investments and risks under the “Principal Investment Strategies and Risks”
section of the Fund’s prospectus. The Fund is subject to the principal risks
summarized below.
Equity
Securities Risk:
The
Fund is subject to the risk that stock prices will fall over short or extended
periods of time. Individual companies may report poor results or be negatively
affected by industry and/or economic trends and developments, or as a result of
irregular and/or unexpected trading activity among retail investors. The prices
of securities issued by these companies may decline in response to such
developments, which could result in a decline in the value of the Fund’s
shares.
•Small-Cap
Risk:
Stocks
of smaller companies may be subject to more abrupt or erratic market movements
than stocks of larger, more established companies. Small companies may have
limited product lines or financial resources and may be dependent upon a small
or inexperienced management group.
Management
Risk:
In
managing the Fund’s portfolio, the Advisor engages one or more sub-advisors to
make investment decisions for a portion of or the entire portfolio. There is a
risk that the Advisor may be unable to identify and retain sub-advisors who
achieve superior investment returns relative to other similar
sub-advisors.
Economic
and Market Events Risk:
Events in the U.S. and global financial markets, including actions taken by the
U.S. Federal Reserve or foreign central banks to stimulate or stabilize economic
growth, may at times, and for varying periods of time, result in unusually high
market volatility, which could negatively impact the Fund’s performance and
cause the Fund to experience illiquidity, shareholder redemptions, or other
potentially adverse effects. Reduced liquidity in credit and fixed-income
markets could negatively affect issuers worldwide. Financial institutions could
suffer losses as interest rates rise or economic conditions deteriorate. In
addition, the Funds' service providers are susceptible to operational and
information or cyber security risks that could result in losses to a Fund and
its shareholders. Cyber security breaches are either intentional or
unintentional events that allow an unauthorized party to gain access to Fund
assets, customer data, or proprietary information, or cause a Fund or Fund
service provider to suffer data corruption or lose operational functionality. A
cyber security breach could result in the loss or theft of customer data or
funds, loss or theft of proprietary information or corporate data, physical
damage to a computer or network system, or costs associated with system repairs,
any of which could have a substantial impact on a Fund. Such incidents could
affect issuers in which a Fund invests, thereby causing the Fund’s investments
to lose value.
Foreign
Securities Risk: Investing
in foreign securities poses additional risks since political and economic events
unique in a country or region will affect those markets and their issuers, while
such events may not necessarily affect the U.S. economy or issuers located in
the United States. In addition, investments in foreign securities are generally
denominated in foreign currency. As a result, changes in the value of those
currencies compared to the U.S. dollar may affect (positively or negatively) the
value of the Fund's investments. There are also risks associated with foreign
accounting standards, government regulation, market information, and clearance
and settlement procedures. Foreign markets may be less liquid and more volatile
than U.S. markets and offer less protection to investors.
Sector
and Industry Focus Risk: The
Fund may invest a high percentage of its assets in specific sectors and/or
industries of the market in order to achieve a potentially greater investment
return. As a result, the Fund may be more susceptible to economic, political,
and regulatory developments in a particular sector or industry of the market,
positive or negative, than a fund that does not invest a high percentage of its
assets in specific sectors or industries.
The Fund’s
Performance
Before
the Fund commenced operations, the assets and liabilities of the Sentinel Small
Company Fund (the “Predecessor Fund”) were transferred to the Fund in a tax-free
reorganization on October 27, 2017 (the “Reorganization”). The investment
objectives, guidelines, and restrictions of the Predecessor Fund were similar to
those of the Fund. The performance information included prior to the
Reorganization is that of the Predecessor Fund.
The
bar chart and performance table below illustrate some indication of the risks
and volatility of an investment in the Fund by showing changes in the Fund’s
performance from calendar year to calendar year and by showing how the Fund’s
average annual total returns for one year, five years, and ten years compare
with the Russell 2000® Index. The bar chart does not reflect any
sales charges, which would reduce your return. The performance table reflects
any applicable sales charges. Past performance (before and
after taxes) does not necessarily indicate how the Fund will perform in the
future. More recent performance information is available at no
cost by visiting TouchstoneInvestments.com
or by calling 1.800.543.0407.
Touchstone Small Company Fund - Class A Shares Total
Return as of December 31
|
|
|
|
|
|
|
| |
Best Quarter:
4th Quarter
2020 35.30% |
|
Worst Quarter:
1st Quarter
2020 (30.77)% |
The return of the Fund's Class A
shares for the nine months ended September 30, 2022 was
(22.76)%.
After-tax returns are
calculated using the highest individual marginal federal income tax rates in
effect on a given distribution reinvestment date and do not reflect the impact
of state and local taxes. Your actual after-tax returns may differ from those
shown and depend on your tax situation. The after-tax returns do not
apply to shares held in an individual retirement account ("IRA"), 401(k), or
other tax-advantaged account. The after-tax returns shown in
the table are for Class A shares only. The after-tax returns for other classes
of shares offered by the Fund will differ from the Class A shares' after-tax
returns. The Return After Taxes on
Distributions and Sale of Fund Shares may be greater than other returns for the
same period due to a tax benefit of realizing a capital loss on the sale of Fund
shares.
Average Annual Total
Returns
For the Periods Ended December 31,
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| 1
Year |
| 5
Years |
| 10
Years |
Touchstone
Small Company Fund - Class A |
|
|
|
|
| |
Return Before
Taxes |
| 16.99 |
% |
| 12.38 |
% |
| 12.86 |
% |
Return After Taxes on
Distributions |
| 11.37 |
% |
| 9.75 |
% |
| 9.22 |
% |
Return After Taxes on Distributions and
Sale of Fund Shares |
| 12.31 |
% |
| 9.13 |
% |
| 9.35 |
% |
Touchstone
Small Company Fund - Class C |
|
|
|
|
| |
Return Before
Taxes |
| 21.34 |
% |
| 12.68 |
% |
| 12.77 |
% |
Touchstone
Small Company Fund - Class Y* |
|
|
|
|
| |
Return Before
Taxes |
| 23.69 |
% |
| 13.88 |
% |
| 13.78 |
% |
Touchstone
Small Company Fund - Institutional Class** |
|
|
|
|
| |
Return Before
Taxes |
| 23.88 |
% |
| 13.88 |
% |
| 13.76 |
% |
Touchstone
Small Company Fund - Class R6*** |
|
|
|
|
| |
Return Before
Taxes |
| 23.67 |
% |
| 14.01 |
% |
| 13.77 |
% |
Russell
2000®
Index (reflects no deduction for
fees, expenses or taxes) |
| 14.82 |
% |
| 12.02 |
% |
| 13.23 |
% |
*Class Y shares of the Fund
assumed the performance history of Class I shares of the Predecessor
Fund.
**Performance of
Institutional Class shares of the Fund prior to October 30, 2017 (the inception
date for Institutional Class shares) is based on the Fund's Class Y share
performance.
***Performance of Class R6
shares of the Predecessor Fund prior to December 23, 2014 (the inception date
for Class R6 shares) is based on the Predecessor Fund's Class A shares
performance. An investor transacting in Class R6 shares may be required to pay a
commission to a broker for effecting such transactions on an agency basis. Such
commissions are not reflected in the table.
The
Fund’s Management
Investment
Advisor
Touchstone
Advisors, Inc. serves as the Fund’s investment advisor.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Sub-Advisor |
|
Portfolio
Manager |
|
Investment Experience with
the Fund and the Predecessor Fund |
|
Primary Title with
Sub-Advisor |
Fort
Washington Investment Advisors, Inc. |
|
Jason
Ronovech, CFA
|
|
Since
inception in October 2017; managed the Predecessor Fund from 2013 to
2017 |
|
Vice
President & Senior Portfolio Manager |
Buying
and Selling Fund Shares
Minimum
Investment Requirements
|
|
|
|
|
|
|
|
|
|
| |
|
Classes A, C, and Y |
| Initial Investment |
| Additional Investment |
Regular
Account |
$ |
2,500 |
|
| $ |
50 |
|
Retirement
Account or Custodial Account under the Uniform Gifts/Transfers to Minors
Act |
$ |
1,000 |
|
| $ |
50 |
|
Investments
through the Automatic Investment Plan |
$ |
100 |
|
| $ |
50 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Institutional Class |
|
Initial Investment |
| Additional Investment |
Regular
Account |
$ |
500,000 |
|
| $ |
50 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Class
R6 |
|
Initial Investment |
| Additional Investment |
Regular
Account |
$ |
50,000 |
|
| $ |
50 |
|
Class
R6 shares held on the Fund’s records require a $50,000 minimum initial
investment and have a $50 subsequent investment minimum. Financial
intermediaries may set different minimum initial and additional investment
requirements, may impose other restrictions or may charge you fees for their
services.
Fund
shares may be purchased and sold on days that the New York Stock Exchange is
open for trading. Existing Class A, Class C and Institutional Class shareholders
may purchase shares directly through Touchstone Funds via the transfer agent,
BNY Mellon, or through their financial intermediary. Class Y shares are
available only through financial intermediaries who have appropriate selling
agreements in place with Touchstone Securities. Shares may be purchased or sold
by writing to Touchstone Securities at P.O. Box 9878, Providence, Rhode
Island 02940, calling 1.800.543.0407, or visiting the Touchstone Funds’ website:
TouchstoneInvestments.com. You may only sell shares over the telephone or
via the Internet if the value of the shares sold is less than or equal to
$100,000. Shares held in IRAs and qualified retirement plans cannot be sold via
the Internet. If your shares are held by a processing organization or financial
intermediary you will need to follow its purchase and redemption procedures. For
more information about buying and selling shares, see the "Investing with
Touchstone" section of the Fund’s prospectus or call
1.800.543.0407.
Tax
Information
The
Fund intends to make distributions that may be taxed as ordinary income or
capital gains except when shares are held through a tax-advantaged account, such
as a 401(k) plan or an IRA. Withdrawals from a tax-advantaged account, however,
may be taxable.
Financial
Intermediary Compensation
If
you purchase shares in the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related companies may pay the
intermediary for the sale of Fund shares and related services. These
payments may create a conflict of interest by influencing the broker-dealer or
other financial intermediary and your salesperson to recommend the Fund over
another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
TOUCHSTONE VALUE FUND
SUMMARY
The Fund’s Investment
Goal
The Touchstone Value Fund (the
“Fund”) seeks to provide investors with long-term capital
growth.
The Fund’s Fees and
Expenses
This
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
You may qualify for sales charge discounts
for Class A shares of Touchstone equity funds and Touchstone fixed income
funds if you and your family invest, or agree to invest in the future, at least
$25,000 or $50,000, respectively, in Touchstone
funds. More information about these and other discounts is
available from your financial professional, in the section titled “Choosing a
Class of Shares” in the Fund’s prospectus and Statement of Additional
Information ("SAI") on page 77 and 78, respectively, and in Appendix
A–Intermediary-Specific Sales Charge Waivers and Discounts to
the Fund's prospectus. An
investor transacting in Class R6 shares, which do not have any front-end sales
charge, contingent deferred sales charge, or other asset-based fee for sales or
distribution, may be required to pay a commission to a broker for effecting such
transactions on an agency basis. Such commissions are not reflected in the table
or in the "Example" below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Class A |
| Class C |
| Class Y |
| Institutional Class |
| Class
R6 |
|
Shareholder Fees (fees paid directly from
your investment) |
|
| |
| |
| |
|
| |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.00% |
| None |
| None |
| None |
| None |
|
Maximum
Deferred Sales Charge (Load) (as a percentage of original purchase price
or the amount redeemed, whichever is less) |
None |
| 1.00% |
| None |
| None |
| None |
|
Wire
Redemption Fee |
Up
to $15 |
| Up
to $15 |
| Up
to $15 |
| Up
to $15 |
| Up
to $15 |
|
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your
investment) |
|
| |
| |
| |
|
| |
Management
Fees(1) |
0.59% |
| 0.59% |
| 0.59% |
| 0.59% |
| 0.59% |
|
Distribution
and/or Shareholder Service (12b-1) Fees |
0.25% |
| 1.00% |
| None |
| None |
| None |
|
Other
Expenses |
0.28% |
| 0.48% |
| 0.28% |
| 0.23% |
| 7.51% |
|
|
|
|
|
|
|
|
|
|
| |
Total
Annual Fund Operating Expenses |
1.12% |
| 2.07% |
| 0.87% |
| 0.82% |
| 8.10% |
|
Fee
Waiver and/or Expense Reimbursement(2) |
(0.04)% |
| (0.24)% |
| (0.04)% |
| (0.14)% |
| (7.47)% |
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement(2) |
1.08% |
| 1.83% |
| 0.83% |
| 0.68% |
| 0.63% |
|
___________________________________________
(1)Management Fees have been
restated to reflect contractual changes to the Fund's Investment Advisory
Agreement effective September 1,
2021.
(2)
Touchstone Advisors, Inc.
(the "Advisor" or "Touchstone Advisors") and Touchstone Strategic Trust (the
“Trust”) have entered into a contractual expense limitation agreement whereby
Touchstone Advisors will waive a portion of its fees or reimburse certain Fund
expenses (excluding dividend and interest expenses relating to short sales;
interest; taxes; brokerage commissions and other transaction costs; portfolio
transaction and investment related expenses, including expenses associated with
the Fund's liquidity providers; other expenditures which are capitalized in
accordance with U.S. generally accepted accounting principles; the cost of
“Acquired Fund Fees and Expenses”, if any; and other extraordinary expenses not
incurred in the ordinary course of business) in order to limit annual Fund
operating expenses to 1.08%, 1.83%, 0.83%, 0.68% and 0.63% of average daily
net assets for Classes A, C, Y, Institutional Class and Class R6 shares,
respectively. This contractual expense limitation is effective through
October 29,
2023,
but can be terminated by a vote of the Board of Trustees of the Trust (the
“Board”) if it deems the termination to be beneficial to the Fund’s
shareholders. The terms of the contractual expense limitation agreement provide
that Touchstone Advisors is entitled to recoup, subject to approval by the
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 Fund. The Fund will make repayments to the Advisor only if such repayment
does not cause the annual Fund operating expenses (after the repayment is taken
into account) to exceed both (1) the expense cap in place when such amounts were
waived or reimbursed and (2) the Fund’s current expense
limitation.
Example.
This example is intended to help
you compare the cost of investing in the Fund with the cost of investing in
other mutual funds.
The
example assumes that you invest $10,000 in the Fund for the time periods
indicated and then, except as indicated, redeem all of your shares at the end of
those periods. The example also assumes that your investment has a 5%
return
each year, that the Fund’s operating
expenses remain the same and that all fee waivers or expense limits for the Fund
will expire after one year. Although your actual costs may be higher or
lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Assuming Redemption at End of Period |
| Assuming No Redemption |
|
Class A |
| Class C |
| Class Y |
| Institutional Class |
| Class
R6 |
| Class C |
1
Year |
$ |
605 |
|
| $ |
286 |
|
| $ |
85 |
|
| $ |
69 |
|
| $ |
64 |
|
| $ |
186 |
|
3
Years |
$ |
834 |
|
| $ |
626 |
|
| $ |
274 |
|
| $ |
248 |
|
| $ |
1,703 |
|
| $ |
626 |
|
5
Years |
$ |
1,082 |
|
| $ |
1,092 |
|
| $ |
478 |
|
| $ |
441 |
|
| $ |
3,242 |
|
| $ |
1,092 |
|
10
Years |
$ |
1,792 |
|
| $ |
2,381 |
|
| $ |
1,069 |
|
| $ |
1,001 |
|
| $ |
6,690 |
|
| $ |
2,381 |
|
Portfolio
Turnover.
The Fund pays transaction
costs, such as brokerage commissions, when it buys and sells securities (or
“turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not
reflected in total annual Fund operating expenses or in the example, affect the
Fund’s performance. During the most recent fiscal year, the Fund’s
portfolio turnover rate was 63% of the average value of its
portfolio.
The Fund’s Principal Investment
Strategies
The
Fund normally invests in equity securities of large- and mid-cap companies
(generally, companies with market capitalizations of approximately $2.5 billion
or higher) that Barrow, Hanley, Mewhinney & Strauss, LLC d/b/a Barrow
Hanley Global Investors (“Barrow Hanley”), the Fund’s sub-advisor, believes are
undervalued. As part of this strategy, the Fund may invest up to 15% of its
assets in foreign equity securities. Equity securities include common and
preferred stocks and depositary receipts. Barrow Hanley uses traditional
methods of stock selection — research and analysis — to identify securities it
believes are undervalued and searches for companies that have price to earnings
and price to book ratios below the market and that have above average dividend
yields.
Although
the Fund may also focus its investments within certain sectors, Barrow Hanley
uses risk management tools to prevent over-exposure to particular market
segments. Barrow Hanley is a “bottom-up” value manager, meaning it analyzes the
fundamentals of companies one at a time rather than focusing on broader market
themes.
Barrow
Hanley generally considers selling a security when it reaches fair value
estimate, when earnings forecasts do not appear to justify the current price,
when there has been or there is an expectation of an adverse change in the
company’s fundamentals, or when other investment opportunities appear more
attractive.
The Fund’s Principal Risks
The
Fund’s share price will fluctuate. You could lose money on your investment in the Fund and
the Fund could also return less than other investments.
Investments in the Fund are not
bank guaranteed, are not deposits, and are not insured by the Federal Deposit
Insurance Corporation (the "FDIC") or any other federal government
agency.
As
with any mutual fund, there is no guarantee that the Fund will achieve its
investment goal. You can find more information about the Fund’s
investments and risks under the “Principal Investment Strategies and Risks”
section of the Fund’s prospectus. The Fund is subject to the principal risks
summarized below.
Equity
Securities Risk:
The
Fund is subject to the risk that stock prices will fall over short or extended
periods of time. Individual companies may report poor results or be negatively
affected by industry and/or economic trends and developments, or as a result of
irregular and/or unexpected trading activity among retail investors. The prices
of securities issued by these companies may decline in response to such
developments, which could result in a decline in the value of the Fund’s
shares.
•Large-Cap
Risk:
Large-cap
companies may be unable to respond quickly to new competitive challenges, such
as changes in technology and consumer tastes, and also may not be able to attain
the high growth rate of successful smaller companies, especially during extended
periods of economic expansion.
•Mid-Cap
Risk:
Stocks of mid-sized companies may be subject to more abrupt or erratic market
movements than stocks of larger, more established companies. Mid-sized companies
may have limited product lines or financial resources, and may be dependent upon
a particular niche of the market.
•Preferred
Stock Risk:
In
the event an issuer is liquidated or declares bankruptcy, the claims of owners
of bonds take precedence over the claims of those who own preferred and common
stock. If interest rates rise, the fixed dividend on preferred stocks may be
less attractive, causing the price of preferred stocks to decline.
Value
Investing Risk:
Value
investing presents the risk that the Fund’s security holdings may never reach
their full market value because the market fails to recognize what the portfolio
managers consider the true business value or because the portfolio managers have
misjudged those values.
Management
Risk:
In
managing the Fund’s portfolio, the Advisor engages one or more sub-advisors to
make investment decisions for a portion of or the entire portfolio. There is a
risk that the Advisor may be unable to identify and retain sub-advisors who
achieve superior investment returns relative to other similar
sub-advisors.
Economic
and Market Events Risk:
Events in the U.S. and global financial markets, including actions taken by the
U.S. Federal Reserve or foreign central banks to stimulate or stabilize economic
growth, may at times, and for varying periods of time, result in unusually high
market volatility, which could negatively impact the Fund’s performance and
cause the Fund to experience illiquidity, shareholder redemptions, or other
potentially adverse effects. Reduced liquidity in credit and fixed-income
markets could negatively affect issuers worldwide. Financial institutions could
suffer losses as interest rates rise or economic conditions deteriorate. In
addition, the Funds' service providers are susceptible to operational and
information or cyber security risks that could result in losses to a Fund and
its shareholders. Cyber security breaches are either intentional or
unintentional events that allow an unauthorized party to gain access to Fund
assets, customer data, or proprietary information, or cause a Fund or Fund
service provider to suffer data corruption or lose operational functionality. A
cyber security breach could result in the loss or theft of customer data or
funds, loss or theft of proprietary information or corporate data, physical
damage to a computer or network system, or costs associated with system repairs,
any of which could have a substantial impact on a Fund. Such incidents could
affect issuers in which a Fund invests, thereby causing the Fund’s investments
to lose value.
Foreign
Securities Risk: Investing
in foreign securities poses additional risks since political and economic events
unique in a country or region will affect those markets and their issuers, while
such events may not necessarily affect the U.S. economy or issuers located in
the United States. In addition, investments in foreign securities are generally
denominated in foreign currency. As a result, changes in the value of those
currencies compared to the U.S. dollar may affect (positively or negatively) the
value of the Fund's investments. There are also risks associated with foreign
accounting standards, government regulation, market information, and clearance
and settlement procedures. Foreign markets may be less liquid and more volatile
than U.S. markets and offer less protection to investors.
•Depositary
Receipts Risk:
Foreign
receipts, which include American
Depositary Receipts,
Global Depositary Receipts, and European Depositary Receipts, are securities
that evidence ownership interests in a security or a pool of securities issued
by a foreign issuer. The risks of depositary receipts include many risks
associated with investing directly in foreign securities.
Sector
Focus Risk: A
fund that focuses its investments in the securities of a particular market
sector is subject to the risk that adverse circumstances will have a greater
impact on the fund than a fund that does not focus its investments in a
particular sector.
The Fund’s
Performance
Before
the Fund commenced operations, the assets and liabilities of the Old Mutual
Barrow Hanley Value Fund (the “Predecessor Fund”) were transferred to the Fund
in a tax-free reorganization (the “Reorganization”). The Reorganization
occurred on April 16, 2012. As a result of the Reorganization, the Fund
assumed the performance and accounting history of the Predecessor Fund prior to
the date of the Reorganization.
The
bar chart and performance table below illustrate some indication of the risks
and volatility of an investment in the Fund by showing changes in the Fund’s
performance from calendar year to calendar year and by showing how the Fund’s
average annual total returns for one year, five years, and ten years compare
with the Russell 1000® Value Index.
The bar chart does not reflect any
sales charges, which would reduce your return. The performance table reflects
any applicable sales charges. Past performance (before and
after taxes) does not necessarily indicate how the Fund will perform in the
future. More recent performance information is available at no
cost by visiting TouchstoneInvestments.com
or by calling 1.800.543.0407.
Touchstone Value Fund — Class A Shares Total
Return as of December 31
|
|
|
|
|
|
|
| |
Best Quarter:
4th Quarter
2020 19.05% |
|
Worst Quarter:
1st Quarter
2020 (30.31)% |
The return of the Fund’s Class A
shares for the nine months ended September 30, 2022
was (15.03)%.
After-tax returns are
calculated using the highest individual marginal federal income tax rates in
effect on a given distribution reinvestment date and do not reflect the impact
of state and local taxes. Your actual after-tax returns may differ from those
shown and depend on your tax situation. The after-tax returns do not
apply to shares held in an individual retirement account ("IRA"), 401(k), or
other tax-advantaged account. The after-tax returns shown in
the table are for Class A shares only. The after-tax returns for other classes
of shares offered by the Fund will differ from the Class A shares' after-tax
returns. The Return After Taxes on
Distributions and Sale of Fund Shares may be greater than other returns for the
same period due to a tax benefit of realizing a capital loss on the sale of Fund
shares.
The
inception date of Class C shares was April 12, 2012.
Class C shares’ performance was calculated using the historical performance
of Class Y shares for the periods prior to April 12, 2012. Performance
for these periods has been restated to reflect the impact of the fees and
expenses applicable to Class C shares.
Class R6 shares commenced operations on
October 28, 2021 and do not have a full calendar year of
performance. Class R6 shares would have had substantially
similar annual returns to Class A, Class C, Class Y and Institutional Class
shares because the shares are invested in the same portfolio of securities and
the annual returns differ only to the extent that the share classes do not have
the same shareholder fees and operating expenses.
Average Annual Total
Returns*
For the Periods Ended December 31,
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1 Year |
| 5 Years |
| 10 Years |
Touchstone
Value Fund - Class A |
|
| |
| |
Return Before
Taxes |
18.37 |
% |
| 10.28 |
% |
| 11.68 |
% |
Return After Taxes on
Distributions |
15.93 |
% |
| 8.21 |
% |
| 10.03 |
% |
Return After Taxes on Distributions and
Sale of Fund Shares |
12.25 |
% |
| 7.70 |
% |
| 9.20 |
% |
Touchstone
Value Fund - Class C |
|
|
|
| |
Return Before
Taxes |
22.57 |
% |
| 10.76 |
% |
| 11.81 |
% |
Touchstone
Value Fund - Class Y |
|
|
|
| |
Return Before
Taxes |
24.75 |
% |
| 11.90 |
% |
| 12.63 |
% |
Touchstone
Value Fund - Institutional Class |
|
|
|
| |
Return Before
Taxes |
25.13 |
% |
| 12.05 |
% |
| 12.78 |
% |
Russell
1000®
Value
Index
(reflects no deduction for
fees, expenses or taxes) |
25.16 |
% |
| 11.16 |
% |
| 12.97 |
% |
*Returns are not presented
for Class R6 shares, which commenced operations on October 28, 2021. Performance
information for Class R6 shares will be shown when those shares have a full
calendar year of operations. An investor transacting in Class R6 shares may be
required to pay a commission to a broker for effecting such transactions on an
agency basis. Such commissions will not be reflected in the
table.
The
Fund’s Management
Investment
Advisor
Touchstone
Advisors, Inc. serves as the Fund’s investment advisor.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Sub-Advisor |
|
Portfolio Managers |
|
Investment
Experience with the Fund |
|
Primary Title with
Sub-Advisor |
Barrow,
Hanley, Mewhinney & Strauss, LLC d/b/a Barrow Hanley Global
Investors |
|
Mark
Giambrone |
|
Since
April 2012 |
|
Portfolio
Manager, Senior Managing Director |
| |
Lewis
Ropp |
|
Since
December 2014 |
|
Portfolio
Manager, Senior Managing Director |
|
|
David
Ganucheau, CFA |
|
Since
October 2015 |
|
Portfolio
Manager, Senior Managing Director |
Buying
and Selling Fund Shares
Minimum
Investment Requirements
|
|
|
|
|
|
|
|
|
|
| |
|
Classes A, C, and Y |
| Initial Investment |
| Additional Investment |
Regular
Account |
$ |
2,500 |
|
| $ |
50 |
|
Retirement
Account or Custodial Account under the Uniform Gifts/Transfers to Minors
Act |
$ |
1,000 |
|
| $ |
50 |
|
Investments
through the Automatic Investment Plan |
$ |
100 |
|
| $ |
50 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Institutional Class |
|
Initial Investment |
| Additional Investment |
Regular
Account |
$ |
500,000 |
|
| $ |
50 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Class
R6 |
|
Initial Investment |
| Additional Investment |
Regular
Account |
$ |
50,000 |
|
| $ |
50 |
|
Class
R6 shares held on the Fund’s records require a $50,000 minimum initial
investment and have a $50 subsequent investment minimum. Financial
intermediaries may set different minimum initial and additional investment
requirements, may impose other restrictions or may charge you fees for their
services.
Fund
shares may be purchased and sold on days that the New York Stock Exchange is
open for trading. Existing Class A, Class C and Institutional Class shareholders
may purchase shares directly through Touchstone Funds via the transfer agent,
BNY Mellon, or through their financial intermediary. Class Y shares are
available only through financial intermediaries who have appropriate selling
agreements in place with Touchstone Securities. Shares may be purchased or sold
by writing to Touchstone Securities at P.O. Box 9878, Providence, Rhode
Island 02940, calling 1.800.543.0407, or visiting the Touchstone Funds’ website:
TouchstoneInvestments.com. You may only sell shares over the telephone or
via the Internet if the value of the shares sold is less than or equal to
$100,000. Shares held in IRAs and qualified retirement plans cannot be sold via
the Internet. If your shares are held by a processing organization or financial
intermediary you will need to follow its purchase and redemption procedures. For
more information about buying and selling shares, see the "Investing with
Touchstone" section of the Fund’s prospectus or call
1.800.543.0407.
Tax
Information
The
Fund intends to make distributions that may be taxed as ordinary income or
capital gains except when shares are held through a tax-advantaged account, such
as a 401(k) plan or an IRA. Withdrawals from a tax-advantaged account, however,
may be taxable.
Financial
Intermediary Compensation
If
you purchase shares in the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related companies may pay the
intermediary for the sale of Fund shares and related services. These
payments may create a conflict of interest by influencing the broker-dealer or
other financial intermediary and your salesperson to recommend the Fund over
another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
PRINCIPAL
INVESTMENT STRATEGIES AND RISKS
This
prospectus applies to the Touchstone Balanced Fund (the "Balanced Fund"),
Touchstone Core Municipal Bond Fund (the "Core Municipal Bond Fund"), Touchstone
International Equity Fund (the "International Equity Fund"), Touchstone
International Growth Fund (the “International Growth Fund”), Touchstone Large
Cap Focused Fund (the "Large Cap Focused Fund"), Touchstone Large Cap Fund (the
“Large Cap Fund”), Touchstone Large Company Growth Fund (the "Large Company
Growth Fund"), Touchstone Small Company Fund (the "Small Company Fund"), and
Touchstone Value Fund (the “Value Fund”) (each a “Fund”, and collectively, the
“Funds”).
How
Do The Funds Implement Their Investment Goals?
Each
Fund's investment goal and strategies are described above in the "Principal
Investment Strategies" summary sections.
Balanced
Fund. With
respect to equities, the Fund invests primarily in issuers having a market
capitalization, at the time of purchase, above $5 billion. Equity securities
include common stock and preferred stock. These securities may be listed on an
exchange or traded over-the-counter. Up to 35% of the Fund’s equity sleeve may
be invested in securities of foreign issuers through the use of ordinary shares
or depositary receipts such as American Depositary Receipts (“ADRs”). The Fund
may also invest in equity securities of emerging market countries. Emerging
market countries are generally countries that are included in the Morgan Stanley
Capital International (“MSCI”) Emerging Markets Index. As of September 30, 2022,
the countries in the MSCI Emerging Markets Index included:
Brazil,
Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India,
Indonesia, Korea, Kuwait, Malaysia, Mexico, Peru, Philippines, Poland, Qatar,
Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.
The country composition of the MSCI Emerging Markets Index can change over
time.
With
respect to fixed-income, the Fund will invest primarily in bonds, including
mortgage-related securities, asset-backed securities, government securities
(both U.S. government securities and foreign sovereign debt), and corporate debt
securities. The Fund's sub-advisor, Fort Washington Investment Advisors, Inc.
("Fort Washington"), primarily invests in investment-grade debt securities, but
may invest up to 30% of the Fund's fixed-income sleeve in non-investment-grade
debt securities rated as low as B by a Nationally Recognized Statistical Rating
Organization (“NRSRO”). Non-investment-grade debt securities are often
referred to as “junk bonds” and are considered speculative.
The
Fund may engage in frequent and active trading as part of its principal
investment strategies. Additionally, in order to implement its investment
strategy, the Fund may invest in mortgage dollar-roll transactions and reverse
repurchase agreements, and in derivatives, including forwards, futures
contracts, interest rate and credit default swap agreements, and options.
Mortgage “dollar rolls” are transactions in which mortgage-backed securities are
sold for delivery in the current month and the seller simultaneously contracts
to repurchase substantially similar securities on a specified future date. These
investments may be used to gain or hedge market exposure, to adjust the Fund’s
duration, to manage interest rate risk, and for any other purposes consistent
with the Fund’s investment strategies and limitations.
Core
Municipal Bond Fund. Under
normal circumstances, the Fund seeks to achieve its investment goal by investing
its assets primarily in high-quality, municipal debt, including general
obligation bonds, revenue bonds, and pre-refunded municipal bonds. This
includes, but is not limited to, municipal bonds that are issued by U.S. states
and their subdivisions, authorities, instrumentalities and corporations, as well
as obligations issued by U.S. territories (such as Puerto Rico, the U.S. Virgin
Islands and Guam) that pay interest that is exempt from regular federal personal
income tax. A general obligation bond is a type of bond that is backed solely by
the taxing power and credit of the issuing municipality rather than revenues
from a specific project. Revenue bonds are supported by revenues of
income-producing projects such as toll roads or a sports stadium. Pre-refunded
bonds have Treasury securities set aside in an escrow account to pay off the
bonds at a specific call date. High-quality municipal debt is, for purposes of
the Fund, considered to be debt with an underlying credit rating of investment
grade (Baa3) or higher by Moody’s Investor Service, Inc. (“Moody’s”), or
equivalently rated by S&P Global Ratings (“S&P”) or Fitch, Inc.
(“Fitch”), or, if unrated, determined by the sub-advisor to be of comparable
quality.
In
managing the Fund’s portfolio, Sage Advisory Services, Ltd. Co. ("Sage" or the
"sub-advisor"), the Fund's sub-advisor, seeks to exploit market inefficiencies
using its income, price, and volatility framework:
•Income:
Sage seeks to construct portfolios that generate consistent tax-free income by
capturing diversified sources of credit, liquidity, and term
premiums.
•Price:
Sage seeks to control price sensitivity at the portfolio level by managing
duration and yield curve positioning.
•Volatility:
During periods when the price of bonds decline because of economic uncertainty
or market stress, Sage seeks to identify and purchase bonds that are priced
attractively relative to historical averages. Sage will add positions in a
risk-controlled manner, meaning the bond is well-supported by Sage’s outlook and
the risk associated with
purchasing
the bond is carefully considered along with the benefits including yield and the
potential for the price to increase.
The
Fund may invest in bonds of any maturity. The average duration of the Fund will
vary based on the sub-advisor’s forecast for interest rates and will normally be
within 25% (plus/minus) of the Bloomberg Municipal Bond Index. Duration is a
measure used to determine the sensitivity of a security’s price to changes in
interest rates.
Throughout
the investment process, Sage analyzes each municipal issue for various
environmental, social and governance (“ESG”) criteria. Sage separates potential
investment opportunities into three project categories: environmental projects
(water, energy, buildings, transport); social projects (basic infrastructure,
affordable housing, employment generation, food security); and governance
projects (pension and general obligation issuances). For this analysis, Sage
uses a proprietary ESG framework to evaluate and score (the "Sage ESG Leaf
Score") municipal projects for both their project impact and impact intensity
and related controversies. Sage utilizes a proprietary climate risk scoring
methodology to identify each municipality’s climate risk sensitivity, financial
vulnerability, and relative preparedness as part of Sage’s ESG and long-term
credit risk assessment for each issuer. The Fund does not have a minimum scoring
threshold of their ESG framework for inclusion in the Fund, however, this
analysis is used to evaluate the fundamental health and long-term credit risk of
each issuer. Sage supports these efforts through the production of original ESG
research and the proprietary Sage ESG Leaf Score. Sage also engages with
individual companies on ESG issues as required. The Fund may invest in a
security that scores poorly on ESG criteria if the security scores highly on
other factors such as valuation and strong fundamental health.
International
Equity Fund. The
Fund’s sub-advisor, Fort Washington, employs a fundamental, bottom up approach
to building the Fund's international equity portfolio. The process starts with a
regular quantitative screening in order to narrow the investable universe, which
seeks to identify businesses with high returns on capital, operating margins,
and strong cash flow generation. Stocks are then analyzed based on the following
five fundamental factors: business quality, valuation, growth, management, and
balance sheet strength. The Fund generally may sell a security when there is a
deterioration of one or more of the five factors described above or when the
portfolio manager identifies a more favorable investment opportunity. The Fund
may also sell a security to meet redemptions or for tax management
purposes.
International
Growth Fund.
Under normal market conditions, the Fund primarily invests its assets in the
securities of foreign issuers as described in the "Principal Investment
Strategies" section above. In selecting investments for the Fund, the Fund's
sub-advisor, DSM Capital Partners LLC (“DSM”) manages the Fund using a
bottom-up, “idea-driven,” growth-style with a long-term (i.e., three-year)
investment horizon. This means in general terms that DSM seeks to identify
issuers which it believes exhibit certain quality characteristics. For instance,
DSM selects issuers that it believes have growing businesses with solid
fundamentals, attractive profitability, and successful managements. DSM normally
holds securities with long-term investment horizons and does not engage in
short-term frequent trading. DSM generally sells an equity security when its
projected future return becomes unattractive relative to the rest of the
portfolio or the investable universe.
DSM
is a research-driven investment manager. Potential investments are identified
based on each issuer’s detailed financial and operational history and on
proprietary projections of future company results prepared by in-house analysts.
These projections are based on modeling of the company, discussions with the
management of the company and its competitors, interviews with industry experts,
a study of the candidate’s industry, and the significant factors that drive
industry growth. The “bottom-up” research process involves using various
criteria, including reviewing a company’s:
•revenue
growth
•prudent
use of debt
•earnings
growth
•lack
of earnings misses
•free
cash flow
•open
and experienced management
•profitability
In
order for DSM to purchase an equity security, the issuer must also have an
attractive valuation, which DSM evaluates based on the following valuation
methods: (1) a historical evaluation of investor sentiment regarding each
issuer’s shares to determine typical price-to-earnings (“P/E”) ratios when the
issuer is “in favor” or “out of favor;” and (2) the effect of past and current
interest rates on the P/E ratio of each company’s shares, and projects these
effects going forward. These valuation methods support investment decisions
regarding the price and timing of purchases and sales of equity securities as
well as the size of positions.
Large
Cap Focused Fund.
In selecting securities for the Fund, the Fund’s sub-advisor, Fort Washington,
seeks to invest in companies that:
•Are
trading below its estimate of the companies’ intrinsic value; and
•Have
a sustainable competitive advantage or a high barrier to entry in place. The
barrier(s) to entry can be created through a cost advantage, economies of
scale, high customer loyalty, or a government barrier (e.g., license or
subsidy). Fort Washington believes that the strongest barrier to entry is the
combination of economies of scale and higher customer loyalty.
The
Fund will generally hold 25 to 45 companies, with residual cash and equivalents
expected to represent less than 10% of the Fund’s net assets. The Fund may, at
times, hold fewer securities and a higher percentage of cash and equivalents
when, among other reasons, Fort Washington cannot find a sufficient number of
securities that meets its purchase requirements.
The
Fund may invest up to 35% of its assets in securities of foreign issuers through
the use of ordinary shares or depositary receipts such as American Depositary
Receipts (“ADRs”). The Fund may also invest in securities of emerging market
countries. Emerging market countries are generally countries that are included
in the Morgan Stanley Capital International (“MSCI”) Emerging Markets Index. As
of September 30, 2022, the countries in the MSCI Emerging Markets Index
included: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece,
Hungary, India, Indonesia, Korea, Kuwait, Malaysia, Mexico, Peru, Philippines,
Poland, Qatar, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United
Arab Emirates. The country composition of the MSCI Emerging Markets Index can
change over time.
The
Fund will generally sell a security if it reaches Fort Washington’s estimate of
fair value, if a more attractive investment opportunity is available, or if a
structural change has taken place and Fort Washington cannot reliably estimate
the impact of the change on the business fundamentals.
Large
Cap Fund. The
Fund’s sub-advisor, London Company of Virginia d/b/a/ The London Company (“The
London Company”), seeks to purchase financially stable large-cap companies that
it believes are consistently generating high returns on unleveraged operating
capital, run by shareholder-oriented management, and trading at a discount to
the company’s respective private market values. Guiding principles of The London
Company’s large-cap philosophy include: (1) a focus on cash return on
tangible capital, not earnings per share; (2) balance sheet optimization;
(3) optimal allocation of investments is essential to good investment
results; and (4) low turnover and tax sensitivity enhances real returns.
The London Company utilizes a bottom-up approach in the security selection
process. The London Company screens a large-cap universe against an internally
developed quantitative model, scoring companies along several dimensions
including return on capital, earnings to enterprise value ratio, and free cash
flow yield. The London Company seeks companies that are trading at 30-40%
discount to intrinsic value. The London Company looks at a company’s corporate
governance structure and management incentives to try to ascertain whether
management’s interests are aligned with shareholders’ interests. The London
Company seeks to identify the sources of a company’s competitive advantage as
well as what levers management has at its disposal to increase shareholder
value. The London Company adds securities to the Fund when it determines that
risk/reward profile of the security has made it attractive to warrant
purchase.
Large
Company Growth Fund. In
selecting investments for the Fund, the Fund's sub-advisor, DSM, manages the
Fund using a bottom-up, “idea-driven,” growth-style with a long-term
(i.e.,
three-year) investment horizon. This means in general terms that DSM seeks to
identify issuers which it believes exhibit certain quality characteristics. For
instance, DSM selects issuers that it believes have growing businesses with
solid fundamentals, attractive profitability, and successful managements. DSM
holds securities with long-term investment horizons and does not engage in
short-term frequent trading. DSM generally sells an equity security when its
projected future return becomes unattractive relative to the rest of the
portfolio or the investable universe.
The
Fund may invest up to 20% of its assets in equity securities of foreign issuers
through, but not limited to, American Depositary Receipts ("ADRs") or other
depositary receipts. In determining whether an issuer is foreign, DSM will
consider various factors, including where the issuer is headquartered, where the
issuer’s principal operations are located, where the issuer’s revenues are
derived, where the principal trading market is located and the country in which
the issuer is legally organized. The weight given to each of these factors will
vary depending upon the circumstances and as determined by the DSM. The Fund is
a non-diversified fund and may, from time to time, have significant exposure to
one or more issuers, geographic regions or sectors of the global economy. The
Fund may invest greater than 25% of its assets in one or more of the following
sectors: consumer discretionary, consumer staples, energy, financials, health
care, industrials, materials, technology and telecommunications
services.
DSM
is a research-driven investment manager. Potential investments are identified
based on each issuer’s detailed financial and operational history and on
proprietary projections of future company results prepared by in-house analysts.
These projections are based on modeling of the company, discussions with the
management of the company and its competitors, interviews with industry experts,
a study of the candidate’s industry, and the significant factors that drive
industry growth. The “bottom-up” research process involves using various
criteria, including reviewing a company’s:
•revenue
growth
•prudent
use of debt
•earnings
growth
•lack
of earnings misses
•free
cash flow
•open
and experienced management
•profitability
In
addition to superior fundamental characteristics, in order for DSM to purchase
an equity security, the issuer must also have an attractive valuation. One of
DSM’s valuation methods involves a historical evaluation of investor sentiment
regarding each issuer’s shares to determine typical price-to-earnings (“P/E”)
ratios when the issuer is “in favor” or “out of favor.” In addition, DSM studies
the effect of past and current interest rates on the P/E ratio of each company’s
shares, and projects these effects going forward. These valuation methods
support investment decisions regarding the price and timing of purchases and
sales of equity securities as well as the size of positions.
Small
Company Fund. The
Fund would typically sell a security if the portfolio managers believe it is
overvalued, if the original investment premise is no longer true, if the holding
size exceeds the portfolio managers' company or sector weighting guidelines
and/or to take advantage of a more attractive investment opportunity. The Fund
may also sell a partial position in a security in order to manage the size of
the position. A security may also be sold to meet redemptions.
Value
Fund. The
Fund's sub-advisor, Barrow Hanley Global Investors ("Barrow Hanley"), investment
management approach may be described as traditional value with a focus on income
from dividends because it generally focuses on companies which are out of favor
with other investors due to internal or external challenges judged to be
short-term in nature. Barrow Hanley’s process seeks to identify the reasons for
a temporary undervaluation of a company’s shares and believes that value can be
added through individual stock selection.
Can
a Fund Depart From its Principal Investment Strategies?
In
addition to the investments and strategies described in this prospectus, each
Fund may invest in other securities, use other strategies and engage in other
investment practices. These permitted investments and strategies are described
in detail in the Funds’ Statement of Additional Information
(“SAI”).
Each
Fund’s investment goal is non-fundamental, and may be changed by the Trust’s
Board of Trustees (the "Board") without shareholder approval. Shareholders
will be notified at least 60 days before any change takes effect.
The
investments and strategies described throughout this prospectus are those that
the Funds use under normal circumstances. During unusual economic or market
conditions, or for temporary defensive purposes, each Fund may invest up to 100%
of its assets in cash, repurchase agreements, and short-term obligations (i.e.,
fixed and variable rate securities and high quality debt securities of corporate
and government issuers) that would not ordinarily be consistent with the Fund's
goals. This defensive investing may increase a Fund’s taxable income, and
when a Fund is invested defensively, it may not achieve its investment
goal. A Fund will do so only if the Fund’s sub-advisor believes that the
risk of loss in using the Fund’s normal strategies and investments outweighs the
opportunity for gains. Of course, there can be no guarantee that any Fund
will achieve its investment goal.
80%
Investment Policy. Certain
of the Funds have adopted a policy to invest, under normal circumstances, at
least 80% of the value of its “assets” in certain types of investments suggested
by its name (the “80% Policy”). For purposes of this 80% Policy, the term
“assets” means net assets plus the amount of borrowings for investment purposes.
A Fund must comply with its 80% Policy at the time the Fund invests its assets.
Accordingly, when a Fund no longer meets the 80% requirement as a result of
circumstances beyond its control, such as changes in the value of portfolio
holdings, it would not have to sell its holdings but would have to make any new
investments in such a way as to comply with the 80% Policy.
The
Core Municipal Bond Fund has a fundamental investment policy that under normal
circumstances at least 80% of the income it distributes will be exempt from
federal income tax, including the federal alternative minimum tax. This
fundamental policy may not be changed without the approval of the Fund’s
shareholders.
The
International Equity Fund, Large Cap Focused Fund, Large Cap Fund, Large Company
Growth Fund, and Small Company Fund have non-fundamental 80% policies that can
be changed upon 60 days' notice to shareholders.
Change
in Market Capitalization.
A
Fund may specify in its principal investment strategy a market capitalization
range for acquiring portfolio securities. If a security that is within the range
for a Fund at the time of purchase later falls outside the range, which is most
likely to happen because of market fluctuation, the Fund may continue to hold
the security if, in the sub-advisor’s judgment, the security remains otherwise
consistent with the Fund’s investment goal and strategies. However, this change
in market capitalization could affect the Fund’s flexibility in making new
investments.
The
following Funds have specified a market capitalization range: Balanced Fund,
Large Cap Focused Fund, Large Cap Fund, Large Company Growth Fund, Small Company
Fund and Value Fund.
Other
Investment Companies.
A
Fund may invest in securities issued by other investment companies to the extent
permitted by the Investment Company Act of 1940, as amended ("1940 Act"), the
rules thereunder and applicable Securities and Exchange Commission (“SEC”) staff
interpretations thereof, or applicable exemptive relief granted by the
SEC.
Lending
of Portfolio Securities.
The
Funds may lend their portfolio securities to brokers, dealers, and financial
institutions under guidelines adopted by the Board, including a requirement that
a Fund must receive collateral equal to no less than 100% of the market value of
the securities loaned. The risk in lending portfolio securities, as with other
extensions of credit, consists of possible loss of rights in the collateral
should the borrower fail financially. In determining whether to lend securities,
the Advisor will consider all relevant facts and circumstances, including the
creditworthiness of the borrower. More information on securities lending is
available in the SAI.
ReFlow
Liquidity Program.
The Funds may participate in the ReFlow liquidity program, which is designed to
provide an alternative liquidity source for mutual funds experiencing net
redemptions of their shares. Pursuant to the program, ReFlow Fund, LLC
(“ReFlow”)
provides participating mutual funds with a source of cash to meet net
shareholder redemptions by standing ready each business day to purchase Fund
shares up to the value of the net shares redeemed by other shareholders that are
to settle the next business day. Following purchases of Fund shares, ReFlow then
generally redeems those shares 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. While ReFlow holds Fund shares, it will have the same rights and
privileges with respect to those shares as any other shareholder. In the event
the Fund uses the ReFlow service, the Fund will pay a fee to ReFlow each time
ReFlow purchases Fund shares, calculated by applying to the purchase amount a
fee rate determined through an automated daily auction among participating
mutual funds. ReFlow’s purchases of Fund shares through the liquidity program
are made on an investment-blind basis without regard to the Fund’s objective,
policies or anticipated performance. In accordance with federal securities laws,
ReFlow is prohibited from acquiring more than 3% of the outstanding voting
securities of the Fund.
What
are the Principal Risks of Investing in the Funds?
The
following is a list of principal risks that may apply to your investment in a
Fund. Unless otherwise noted, in this section, references to a single Fund
apply equally to all of the Funds. Further information about investment risks is
available in the Funds’ SAI:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Risks |
| Balanced
Fund |
|
Core
Municipal Bond Fund |
| International
Equity Fund |
| International
Growth Fund |
| Large
Cap Focused Fund |
|
Large Cap Fund |
|
Large
Company Growth Fund |
| Small
Company Fund |
|
Value
Fund |
Asset-Backed
Securities Risk |
| X |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Convertible
Securities Risk |
|
| |
|
|
|
| X |
|
| |
|
|
X |
| |
|
|
Credit
Risk |
| X |
|
X |
|
|
| |
|
| |
|
|
|
| |
|
|
Depositary
Receipts Risk |
| X |
|
|
| X |
| X |
| X |
|
|
|
X |
|
| |
X |
Derivatives
Risk |
| X |
|
|
|
|
| |
|
| |
|
|
|
|
| |
|
Economic
and Market Events Risk |
| X |
| X |
| X |
| X |
| X |
| X |
| X |
| X |
| X |
Emerging
Markets Risk |
| X |
|
|
| X |
| X |
| X |
|
|
|
X |
|
| |
|
Equity
Securities Risk |
| X |
|
|
| X |
| X |
| X |
|
X |
|
X |
| X |
|
X |
ESG
Investing Risk |
|
|
| X |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Fixed-Income
Risk |
| X |
|
X |
|
|
| |
|
| |
|
|
|
|
| |
|
Foreign
Securities Risk |
| X |
|
|
| X |
| X |
| X |
|
|
|
X |
| X |
|
X |
Forward
Currency Exchange Contract Risk |
| X |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Futures
Contracts Risk |
| X |
|
|
|
|
| |
|
| |
|
|
|
| |
|
|
Growth-Investing
Risk |
|
|
|
|
|
|
| X |
|
|
|
|
| X |
|
|
| |
Interest
Rate Risk |
| X |
|
X |
|
|
| |
|
| |
|
|
|
| |
|
|
Investment-Grade
Debt Securities Risk |
| X |
| X |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Large-Cap
Risk |
| X |
|
|
|
|
| |
| X |
|
X |
|
X |
| |
|
X |
Leverage
Risk |
| X |
|
|
|
|
| |
|
| |
|
|
|
| |
|
|
Management
Risk |
| X |
|
X |
| X |
| X |
| X |
|
X |
|
X |
| X |
|
X |
Mid-Cap
Risk |
| X |
|
|
|
|
| |
| X |
|
|
|
|
|
| |
X |
Mortgage-Backed
Securities Risk |
| X |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Mortgage
Dollar Roll Risk |
| X |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Municipal
Securities Risk |
|
|
| X |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Non-Diversification
Risk |
|
| |
|
|
|
| |
| X |
|
| |
X |
|
| |
|
Non-Investment-Grade
Debt Securities Risk |
| X |
|
|
|
|
| |
|
| |
|
|
|
|
| |
|
Options
Risk |
| X |
|
|
|
|
| |
|
| |
|
|
|
|
| |
|
Portfolio
Turnover Risk |
| X |
|
|
|
|
| |
|
| |
|
|
|
|
| |
|
Preferred
Stock Risk |
| X |
|
|
|
|
| X |
| X |
|
|
|
X |
|
| |
X |
Prepayment
Risk |
| X |
| X |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Sector
Focus Risk |
|
| |
|
|
|
| X |
| X |
|
X |
|
X |
|
| |
X |
Sector
and Industry Focus Risk |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| X |
| |
Small-Cap
Risk |
|
| |
|
|
|
|
|
|
| |
|
|
|
| X |
|
|
Sovereign
Debt Risk |
| X |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Swap
Agreements Risk |
| X |
|
|
|
|
| |
|
| |
|
|
|
| |
|
|
U.S.
Government Securities Risk |
| X |
| X |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Value
Investing Risk |
|
| |
|
|
|
| |
|
| |
|
|
|
|
| |
X |
Convertible
Securities Risk:
Convertible securities are subject to the risks of both debt securities and
equity securities. The values of convertible securities tend to decline as
interest rates rise and, due to the conversion feature, tend to vary with
fluctuations in the market value of the underlying security.
Derivatives
Risk: The
use of derivatives may expose the Fund to additional risks that it would not be
subject to if it invested directly in the securities underlying those
derivatives. Risks associated with derivatives may include correlation risk,
which is the risk that the derivative does not correlate well with the security,
index, or currency to which it relates. Other risks include
liquidity
risk, which is the risk that the Fund may be unable to sell or close out the
derivative due to an illiquid market, counterparty risk, which is the risk that
the counterparty to a derivative instrument may be unwilling or unable to make
required payments or otherwise meet its obligations, and leverage risk, which is
the risk that a derivative could expose the Fund to magnified losses resulting
from leverage. The use of derivatives for hedging purposes may result in losses
that partially or completely offset gains in portfolio positions. Using
derivatives can increase the volatility of the Fund’s share price. For some
derivatives, it is possible for the Fund to lose more than the amount invested
in the derivative instrument. Derivatives may, for federal income tax purposes,
affect the character of gain and loss realized by the Fund, accelerate
recognition of income to the Fund, affect the holding periods for certain of the
Fund’s assets and defer recognition of certain of the Fund’s losses. The Fund’s
ability to invest in derivatives may be restricted by certain provisions of the
federal income tax laws relating to the Fund’s qualification as a regulated
investment company (“RIC”). These additional risks could cause the Fund to
experience losses to which it would otherwise not be subject. Regulatory changes
in derivatives markets could impact the cost of or the Fund's ability to engage
in derivative transactions.
Additionally,
the regulation of the U.S. and non-U.S. derivatives markets has undergone
substantial change in recent years and such change may continue. In particular,
effective August 19, 2022 (the “Compliance Date”), Rule 18f-4 under the 1940 Act
(the “Derivatives Rule”) replaced the asset segregation regime of Investment
Company Act Release No. 10666 (“Release 10666”) with a new framework for the use
of derivatives by registered funds. As of the Compliance Date, the SEC rescinded
Release 10666 and withdrew no-action letters and similar guidance addressing a
fund's use of derivatives and began requiring funds to satisfy the requirements
of the Derivatives Rule. As a result, on or after the Compliance Date, the Funds
are no longer required to engage in “segregation” or “coverage” techniques with
respect to derivatives transactions and will instead comply with the applicable
requirements of the Derivatives Rule.
The
Derivatives Rule mandates that a fund adopt and/or implement: (i) value-at-risk
limitations (“VaR”); (ii) a written derivatives risk management program; (iii)
new Board oversight responsibilities; and (iv) new reporting and recordkeeping
requirements. In the event that a fund's derivative exposure is 10% or less of
its net assets, excluding certain currency and interest rate hedging
transactions, it can elect to be classified as a limited derivatives user
(“Limited Derivatives User”) under the Derivatives Rule, in which case a fund is
not subject to the full requirements of the Derivatives Rule. Limited
Derivatives Users are excepted from VaR testing, implementing a derivatives risk
management program, and certain Board oversight and reporting requirements
mandated by the Derivatives Rule. However, a Limited Derivatives User is still
required to implement written compliance policies and procedures reasonably
designed to manage its derivatives risks.
The
Derivatives Rule also provides special treatment for reverse repurchase
agreements, similar financing transactions and unfunded commitment agreements.
Specifically, a fund may elect whether to treat reverse repurchase agreements
and similar financing transactions as “derivatives transactions” subject to the
requirements of the Derivatives Rule or as senior securities equivalent to bank
borrowings for purposes of Section 18 of the 1940 Act. In addition, when-issued
or forward settling securities transactions that physically settle within
35-days are deemed not to involve a senior security.
•Leverage
Risk: Leverage
occurs when a Fund uses derivatives or similar instruments or techniques to gain
exposure to investments in an amount that exceeds a Fund’s initial investment.
The use of leverage magnifies changes in a Fund’s net asset value and thus
results in increased portfolio volatility and increased risk of loss. Leverage
can also create an interest expense that may lower a Fund’s overall returns.
There can be no guarantee that a leveraging strategy will be
successful.
•Futures
Contracts Risk:
Futures
contracts provide for the future sale by one party and purchase by another party
of a specified amount of a specific security at a specified future time and at a
specified price. An option on a futures contract gives the purchaser the right,
in exchange for a premium, to assume a position in a futures contract at a
specified exercise price during the term of the option. There are risks
associated with these activities, including the following: (1) the success of a
hedging strategy may depend on an ability to predict movements in the prices of
individual securities, fluctuations in markets and movements in interest rates;
(2) there may be an imperfect or no correlation between the changes in market
value of the securities held by a Fund and the prices of futures and options on
futures; (3) there may not be a liquid secondary market for a futures contract
or option; (4) trading restrictions or limitations may be imposed by an
exchange; and (5) government regulations may restrict trading in futures
contracts and futures options.
•Options
Risk: Options
trading is a highly specialized activity that involves investment techniques and
risks different from those associated with ordinary portfolio securities
transactions. The value of options can be highly volatile, and their use can
result in loss if the sub-advisor is incorrect in its expectation of price
fluctuations. The successful use of options for hedging purposes also depends in
part on the ability of the sub-advisor to predict future price fluctuations
and
the degree of correlation between the options and securities markets. When
options are purchased over the counter, the Fund bears counterparty risk, which
is the risk that the counterparty that wrote the option will be unable or
unwilling to perform its obligations under the option contract. Such options may
also be illiquid, and in such cases, the Fund may have difficulty closing out
its position.
•Swap
Agreements Risk: Swap
agreements (“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. Swaps may increase
or decrease the overall volatility of the investments of the Fund and its share
price. The performance of swaps 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 calls for payments by the Fund, the Fund
must be prepared to make such payments when due. Additionally, if the
counterparty’s creditworthiness declines, the value of a swap may decline. If
the counterparty is unable to meet its obligations under the contract, declares
bankruptcy, defaults, or becomes insolvent, the Fund may not be able to recoup
the money it expected to receive under the contract. Finally, a swap can be a
form of leverage, which can magnify the Fund’s gains or losses.
•Forward
Foreign Currency Exchange Contract Risk:
A forward foreign currency exchange contract is an agreement to buy or sell a
specific currency at a future date and at a price set at the time of the
contract. Forward foreign currency exchange contracts may reduce the risk of
loss from a change in value of a currency, but they also limit any potential
gains and do not protect against fluctuations in the value of the underlying
position and are subject to counterparty risk. The forecasting of currency
market movement is extremely difficult, and whether any hedging strategy will be
successful is highly uncertain. Moreover, it is impossible to forecast with
precision the market value of portfolio securities at the expiration of a
forward foreign currency contract. Accordingly, a Fund may be required to buy or
sell additional currency on the spot market (and bear the expense of such
transaction) if the sub-advisor’s predictions regarding the movement of foreign
currency or securities markets prove inaccurate. Because foreign currency
forward contracts are privately negotiated transactions, there can be no
assurance that a Fund will have flexibility to rollover a forward foreign
currency contract upon its expiration if it desires to do so. Additionally,
there can be no assurance that the other party to the contract will perform its
services under the contract.
Economic
and Market Events Risk:
Events
in certain sectors historically have resulted, and may in the future result, in
an unusually high degree of volatility in the financial markets, both domestic
and foreign. These events have included, but are not limited to: bankruptcies,
corporate restructurings, and other similar events; governmental efforts to
limit short selling and high frequency trading; measures to address U.S. federal
and state budget deficits; social, political, and economic instability in
Europe; economic stimulus by the Japanese central bank; dramatic changes in
energy prices
and currency exchange rates; and China’s economic slowdown. Interconnected
global economies and financial markets increase the possibility that conditions
in one country or region might adversely impact issuers in a different country
or region. Both domestic and foreign equity markets have experienced increased
volatility and turmoil, with issuers that have exposure to the real estate,
mortgage, and credit markets particularly affected. Financial institutions could
suffer losses as interest rates rise or economic conditions
deteriorate.
In
addition, relatively high market volatility and reduced liquidity in credit and
fixed-income markets may adversely affect many issuers worldwide. Actions taken
by the U.S. Federal Reserve (“Fed”) or foreign central banks to stimulate or
stabilize economic growth, such as interventions in currency markets, could
cause high volatility in the equity and fixed-income markets. Reduced liquidity
may result in less money being available to purchase raw materials, goods, and
services from emerging markets, which may, in turn, bring down the prices of
these economic staples. It may also result in emerging-market issuers having
more difficulty obtaining financing, which may, in turn, cause a decline in
their securities prices.
Beginning
in March 2022, the Fed began increasing interest rates and has signaled the
potential for further increases. As a result, risks associated with rising
interest rates are currently heightened. It is difficult to accurately predict
the pace at which the Fed will increase interest rates any further, or the
timing, frequency or magnitude of any such increases, and the evaluation of
macro-economic and other conditions could cause a change in approach in the
future. Any such increases generally will cause market interest rates to rise,
which will cause the value of a Fund’s fixed-income securities to fall. Any such
rate increases may also increase volatility and reduce liquidity in the
fixed-income markets, which would make it more difficult to sell a Fund’s
fixed-income securities.
In
addition, as the Fed increases the target Fed funds rate, any such rate
increases, among other factors, could cause markets to experience continuing
high volatility. A significant increase in interest rates may cause a decline in
the market for equity securities. These events and the possible resulting market
volatility may have an adverse effect on the Fund.
Political
turmoil within the United States and abroad may also impact the Fund. Although
the U.S. government has honored its credit obligations, it remains possible that
the United States could default on its obligations. While it is impossible to
predict the consequences of such an unprecedented event, it is likely that a
default by the United States would be highly disruptive to the U.S. and global
securities markets and could significantly impair the value of the Fund’s
investments. Similarly, political events within the United States at times have
resulted, and may in the future result, in a shutdown of government services,
which could negatively affect the U.S. economy, decrease the value of many Fund
investments, and increase uncertainty in or impair the operation of the U.S. or
other securities markets. In recent years, the U.S. renegotiated many of its
global trade relationships and has imposed or threatened to impose significant
import tariffs. These actions could lead to price volatility and overall
declines in U.S. and global investment markets.
Uncertainties
surrounding the sovereign debt of a number of European Union (EU) countries and
the viability of the EU have disrupted and may in the future disrupt markets in
the United States and around the world. If one or more countries leave the EU or
the EU dissolves, the global securities markets likely will be significantly
disrupted. On January 31, 2020, the United Kingdom (UK) left the EU, commonly
referred to as “Brexit,” and the UK ceased to be a member of the EU. Following a
transition period during which the EU and the UK Government engaged in a series
of negotiations regarding the terms of the UK’s future relationship with the EU,
the EU and UK Government signed an agreement on December 30, 2020 regarding the
economic relationship between the UK and the EU. This agreement became effective
on a provisional basis on January 1, 2021 and formally entered into force on May
1, 2021. While the full impact of Brexit is unknown, Brexit has already resulted
in volatility in European and global markets. There remains significant market
uncertainty regarding Brexit’s ramifications, and the range and potential
implications of possible political, regulatory, economic, and market outcomes
are difficult to predict. This uncertainty may affect other countries in the EU
and elsewhere, and may cause volatility within the EU, triggering prolonged
economic downturns in certain countries within the EU. Despite the influence of
the lockdowns, and the economic bounce back, Brexit has had a material impact on
the UK's economy. Additionally, trade between the UK and the EU did not benefit
from the global rebound in trade in 2021, and remained at the very low levels
experienced at the start of the coronavirus (“COVID-19”) pandemic in 2020,
highlighting Brexit's potential long-term effects on the UK
economy.
In
addition, Brexit may create additional and substantial economic stresses for the
UK, including a contraction of the UK economy and price volatility in UK stocks,
decreased trade, capital outflows, devaluation of the British pound, wider
corporate bond spreads due to uncertainty and declines in business and consumer
spending as well as foreign direct investment. Brexit may also adversely affect
UK-based financial firms that have counterparties in the EU or participate in
market infrastructure (trading venues, clearing houses, settlement facilities)
based in the EU. Additionally, the spread of the COVID-19 pandemic is likely to
continue to stretch the resources and deficits of many countries in the EU and
throughout the world, increasing the possibility that countries may be unable to
make timely payments on their sovereign debt. These events and the resulting
market volatility may have an adverse effect on the performance of the
Fund.
A
widespread health crisis such as a global pandemic could cause substantial
market volatility, exchange trading suspensions and closures, which may lead to
less liquidity in certain instruments, industries, sectors or the markets
generally, and may ultimately affect Fund performance. For example, the COVID-19
pandemic has resulted and may continue to result in significant disruptions to
global business activity and market volatility due to disruptions in market
access, resource availability, facilities operations, imposition of tariffs,
export controls and supply chain disruption, among others. The impact of a
health crisis and other epidemics and pandemics that may arise in the future,
could affect the global economy in ways that cannot necessarily be foreseen at
the present time. A health crisis may exacerbate other pre-existing political,
social and economic risks. Any such impact could adversely affect the fund’s
performance, resulting in losses to your investment.
The
United States responded to the COVID-19 pandemic and resulting economic distress
with fiscal and monetary stimulus packages. In late March 2020, the government
passed the Coronavirus Aid, Relief, and Economic Security Act, a stimulus
package providing for over $2.2 trillion in resources to small businesses, state
and local governments, and individuals adversely impacted by the COVID-19
pandemic. In late December 2020, the government also passed a spending bill that
included $900 billion in stimulus relief for the COVID-19 pandemic. Further, in
March 2021, the government passed the American Rescue Plan Act of 2021, a $1.9
trillion stimulus bill to accelerate the United States’ recovery from the
economic and health effects of the COVID-19 pandemic. In addition, in mid-March
2020, the U.S. Federal Reserve (“Fed”) cut interest rates to historically low
levels and promised unlimited and open-ended quantitative easing, including
purchases of corporate and municipal government bonds. The Fed also enacted
various programs to support liquidity operations and funding in the financial
markets, including expanding its reverse repurchase agreement operations, adding
$1.5 trillion of liquidity to the banking system; establishing swap lines with
other major central banks to provide dollar funding; establishing a program to
support money market funds; easing various bank capital buffers; providing
funding backstops for businesses to provide bridging loans for up to four years;
and providing funding to help credit flow in asset-backed securities markets.
The Fed also extended credit to small- and medium-sized businesses.
As
the Fed “tapers” or reduces the amount of securities it purchases pursuant to
quantitative easing, and/or raises the federal funds target rate, there is a
heightened risk that interest rates will rise, which could expose fixed-income
and related markets to heightened volatility and could cause the value of a
Fund's investments, and the Fund's NAV, to decline, potentially suddenly and
significantly. As a result, the Fund may experience high redemptions and, as a
result, increased portfolio turnover, which could increase the costs that the
Fund incurs and may negatively impact the Fund's performance.
Political
and military events, including in North Korea, Venezuela, Russia, Ukraine, Iran,
Syria, and other areas of the Middle East, and nationalist unrest in Europe and
South America, also may cause market disruptions. As a result of continued
political tensions and armed conflicts, including the Russian invasion of
Ukraine commencing in February of 2022, the extent and ultimate result of which
are unknown at this time, the United States and the EU, along with the
regulatory bodies of a number of countries, have imposed economic sanctions on
certain Russian corporate entities and individuals, and certain sectors of
Russia’s economy, which may result in, among other things, the continued
devaluation of Russian currency, a downgrade in the country’s credit rating,
and/or a decline in the value and liquidity of Russian securities, property or
interests. These sanctions could also result in the immediate freeze of Russian
securities and/or funds invested in prohibited assets, impairing the ability of
a Fund to buy, sell, receive or deliver those securities and/or assets. These
sanctions or the threat of additional sanctions could also result in Russia
taking counter measures or retaliatory actions, which may further impair the
value and liquidity of Russian securities. The United States and other nations
or international organizations may also impose additional economic sanctions or
take other actions that may adversely affect Russia exposed issuers and
companies in various sectors of the Russian economy. Any or all of these
potential results could lead Russia’s economy into a recession. Economic
sanctions and other actions against Russian institutions, companies, and
individuals resulting from the ongoing conflict may also have a substantial
negative impact on other economies and securities markets both regionally and
globally, as well as on companies with operations in the conflict region, the
extent to which is unknown at this time. The United States and the EU have also
imposed similar sanctions on Belarus for its support of Russia’s invasion of
Ukraine. Additional sanctions may be imposed on Belarus and other countries that
support Russia. Any such sanctions could present substantially similar risks as
those resulting from the sanctions imposed on Russia, including substantial
negative impacts on the regional and global economies and securities
markets.
In
addition, there is a risk that the prices of goods and services in the United
States and many foreign economies may decline over time, known as deflation.
Deflation may have an adverse effect on stock prices and creditworthiness and
may make defaults on debt more likely. If a country’s economy slips into a
deflationary pattern, it could last for a prolonged period and may be difficult
to reverse. Further, there is a risk that the present value of assets or income
from investments will be less in the future, known as inflation. Inflation rates
may change frequently and drastically as a result of various factors, including
unexpected shifts in the domestic or global economy, and a Fund’s investments
may be affected, which may reduce a Fund's performance. Further, inflation may
lead to the rise in interest rates, which may negatively affect the value of
debt instruments held by the Fund, resulting in a negative impact on a Fund's
performance. Generally, securities issued in emerging markets are subject to a
greater risk of inflationary or deflationary forces, and more developed markets
are better able to use monetary policy to normalize markets.
In
addition, with the increased use of technologies, such as mobile devices and
"cloud"-based service offerings and the dependence on the Internet and computer
systems to perform necessary business functions, the Funds' service providers
are susceptible to operational and information or cyber security risks that
could result in losses to a Fund and its shareholders. Cyber security breaches
are either intentional or unintentional events that allow an unauthorized party
to gain access to Fund assets, customer data, or proprietary information, or
cause a Fund or Fund service provider to suffer data corruption or lose
operational functionality. Intentional cyber security incidents include:
unauthorized access to systems, networks, or devices (such as through “hacking”
activity or "phishing"); infection from computer viruses or other malicious
software code; and attacks that shut down, disable, slow, or otherwise disrupt
operations, business processes, or website access or functionality.
Cyber-attacks can also be carried out in a manner that does not require gaining
unauthorized access, such as causing denial-of-service attacks on the service
providers' systems or websites rendering them unavailable to intended users or
via "ransomware" that renders the systems inoperable until appropriate actions
are taken. In addition, unintentional incidents can occur, such as the
inadvertent release of confidential information (possibly resulting in the
violation of applicable privacy laws).
A
cyber security breach could result in the loss or theft of customer data or
funds, loss or theft of proprietary information or corporate data, physical
damage to a computer or network system, or costs associated with system repairs,
any of which could have a substantial impact on a Fund. For example, in a denial
of service, Fund shareholders could lose access to their electronic accounts
indefinitely, and employees of the Advisor, a Sub-Advisor, or the Funds’ other
service providers may not be able to access electronic systems to perform
critical duties for the Funds, such as trading, NAV calculation, shareholder
accounting, or fulfillment of Fund share purchases and redemptions. Cyber
security incidents could cause a Fund, the Advisor, a Sub-Advisor, or other
service provider to incur regulatory penalties, reputational damage, compliance
costs associated with corrective measures, litigation costs, or financial loss.
They may also result in violations of applicable privacy and other laws. In
addition, such incidents could affect issuers in which a Fund invests, thereby
causing the Fund’s investments to lose value.
Cyber-events
have the potential to materially affect the Funds', the Advisor and the
sub-advisor’s relationships with accounts, shareholders, clients, customers,
employees, products, and service providers. The Funds have established risk
management systems reasonably designed to seek to reduce the risks associated
with cyber-events. There is no guarantee that the Funds will be able to prevent
or mitigate the impact of any or all cyber-events.
The
Funds are exposed to operational risk arising from a number of factors,
including, but not limited to, human error, processing and communication errors,
errors of the Funds’ service providers, counterparties, or other third parties,
failed or inadequate processes, and technology or system failures.
The
Advisor, Sub-Advisor, and their affiliates have established risk management
systems that seek to reduce cybersecurity and operational risks, and business
continuity plans in the event of a cybersecurity breach or operational failure.
However, there are inherent limitations in such plans, including that certain
risks have not been identified, and there is no guarantee that such efforts will
succeed, especially since none of the Advisor, a Sub-Advisor, or their
affiliates controls the cybersecurity or operations systems of the Funds’ third
party service providers (including the Funds’ custodian), or those of the
issuers of securities in which the Funds invest.
In
addition, other disruptive events, including (but not limited to) natural
disasters and public health crises (such as the COVID-19 pandemic), may
adversely affect a Fund’s ability to conduct business, in particular if the
Fund’s employees or the employees of its service providers are unable or
unwilling to perform their responsibilities as a result of any such event. Even
if the Fund’s employees and the employees of its service providers are able to
work remotely, those remote work arrangements could result in the Fund’s
business operations being less efficient than under normal circumstances, could
lead to delays in its processing of transactions, and could increase the risk of
cyber-events.
Equity
Securities Risk: A
Fund is subject to the risk that stock prices will fall over short or extended
periods of time. Individual companies may report poor results or be negatively
affected by industry and/or economic trends and developments, or as a result of
irregular and/or unexpected trading activity among retail investors. The prices
of securities issued by these companies may decline in response to such
developments, which could result in a decline in the value of the Funds' shares.
These factors contribute to price volatility. In addition, common stocks
represent a share of ownership in a company, and rank after bonds and preferred
stock in their claim on the company’s assets in the event of
liquidation.
•Large-Cap
Risk:
A Fund is subject to the risk that stocks of larger companies may underperform
relative to those of small- and mid-sized companies. Large-cap companies may be
unable to respond quickly to new competitive challenges, such as changes in
technology and consumer tastes, and also may not be able to attain the high
growth rate of successful smaller companies, especially during extended periods
of economic expansion.
•Mid-Cap
Risk: A
Fund is subject to the risk that medium capitalization stocks may underperform
other types of stocks or the equity markets as a whole. Stocks of mid-sized
companies may be subject to more abrupt or erratic market movements than stocks
of larger, more established companies. Mid-sized companies may have limited
product lines or financial resources, and may be dependent upon a particular
niche of the market.
•Preferred
Stock Risk: Preferred
stock represents an equity or ownership interest in an issuer that pays
dividends at a specified rate and that has precedence over common stock in the
payment of dividends. In the event an issuer is liquidated or declares
bankruptcy, the claims of owners of bonds take precedence over the claims of
those who own preferred and common stock. If interest rates rise, the fixed
dividend on preferred stocks may be less attractive, causing the price of
preferred stocks to decline. Preferred stock may have mandatory sinking fund
provisions, as well as provisions allowing the stock to be called or redeemed
prior to its maturity, which can have a negative impact on the stock’s price
when interest rates decline.
•Small-Cap
Risk: A
Fund is subject to the risk that small capitalization stocks may underperform
other types of stocks or the equity markets as a whole. Stocks of smaller
companies may be subject to more abrupt or erratic market movements than stocks
of larger, more established companies. Small companies may have limited product
lines or financial resources, or may be dependent upon a small or inexperienced
management group. In addition, small-cap stocks typically are traded in lower
volume, and their issuers typically are subject to greater degrees of changes in
their earnings and prospects.
ESG
Investing Risk:
Incorporating ESG criteria and investing primarily in instruments that have
certain ESG characteristics, as determined by the manager, carries the risk that
the Fund may perform differently, including underperforming funds that do not
utilize an ESG investment strategy, or funds that utilize different ESG
criteria. The application of ESG investment principles may affect the Fund’s
exposure to certain sectors or types of investments and may impact the Fund’s
investment
performance.
A company’s ESG performance or the manager’s assessment of a company’s ESG
performance may change over time. In evaluating a company, the manager is
reliant upon information and data that may turn out to be incomplete, inaccurate
or unavailable, which may negatively impact the manager’s assessment of a
company’s ESG performance. Although the manager has established its own process
for evaluation of ESG factors, successful application of the Fund’s sustainable
investment strategy will depend on the manager’s skill in researching,
identifying and analyzing material ESG issues, as well as on the availability of
relevant data. ESG factors may be evaluated differently by different managers,
and may not carry the same meaning to all investors and managers.
The
risk that the Fund may forego opportunities to buy certain instruments when it
might otherwise be advantageous to do so, or sell securities for ESG-related
reasons when it might be otherwise disadvantageous for it to do so is heightened
when ESG exclusionary criteria is applied. The regulatory landscape with respect
to ESG investing in the United States is evolving and any future rules or
regulations may require the Fund to change its investment process with respect
to ESG integration.
Fixed
Income Risk: The
market value of the Fund’s fixed-income securities responds to economic
developments, particularly interest rate changes, as well as to perceptions
about the creditworthiness of individual issuers, including governments.
Generally, the Fund’s fixed-income securities will decrease in value if interest
rates rise and increase in value if interest rates fall. Normally, the longer
the maturity or duration of the fixed-income securities the Fund owns, the more
sensitive the value of the Fund’s shares will be to changes in interest rates.
The fixed-income securities market has been and may continue to be negatively
affected by the COVID-19 pandemic. As with other serious economic disruptions,
governmental authorities and regulators responded to this crisis with
significant fiscal and monetary policy changes, including considerably lowering
interest rates, which, in some cases could result in negative interest rates.
These actions, including their reversal or potential ineffectiveness, could
further increase volatility in securities and other financial markets and reduce
market liquidity. To the extent the Fund has a bank deposit or holds a debt
instrument with a negative interest rate to maturity, the Fund would generate a
negative return on that investment. Similarly, negative rates on investments by
money market funds and similar cash management products could lead to losses on
investments, including on investments of the Fund's uninvested cash. As the Fed
“tapers” or reduces the amount of securities it purchases pursuant to its
quantitative easing program, and/or raises the federal funds target rate, there
is a heightened risk that interest rates will rise, which could expose
fixed-income and related markets to heightened volatility and could cause the
value of the Fund’s investments, and the Fund’s NAV, to decline, potentially
suddenly and significantly, which may negatively impact the Fund’s
performance.
•Asset-Backed
Securities Risk: Asset-backed
securities are fixed income securities backed by other assets such as credit
card, automobile or consumer loan receivables, retail installment loans, or
participations in pools of leases. Credit support for these securities may be
based on the structural features such as subordination or overcollateralization
and/or provided through credit enhancements by a third party. Even with a credit
enhancement by a third party, there is still risk of loss. There could be
inadequate collateral or no collateral for asset-backed securities. The values
of these securities are sensitive to changes in the credit quality of the
underlying collateral, the credit strength of the credit enhancement, changes in
interest rates, and, at times, the financial condition of the issuer. Some
asset-backed securities also may receive prepayments that can change the
securities’ effective durations.
•Credit
Risk: The
fixed-income securities in the Fund’s portfolio are subject to the possibility
that a deterioration, whether sudden or gradual, in the financial condition of
an issuer, or a deterioration in general economic conditions, could cause an
issuer to fail to make timely payments of principal or interest when due. This
may cause the issuer’s securities to decline in value. Credit risk is
particularly relevant to those portfolios that invest a significant amount of
their assets in non-investment grade (or "junk") bonds or lower-rated
securities.
•Interest
Rate Risk: The
market price of debt securities is generally linked to the prevailing market
interest rates. In general, when interest rates rise, the prices of debt
securities fall, and when interest rates fall, the prices of debt securities
rise. 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 used to determine the sensitivity of a security’s price to changes
in interest rates that incorporates a security’s yield, coupon, final maturity,
and call features, among other characteristics. The longer a fixed-income
security’s duration, the more sensitive it will be to changes in interest rates.
Specifically, duration is the change in the value of a fixed-income security
that will result from a 1% change in interest rates, and generally is stated in
years. For example, as a general rule a 1% rise in interest rates means a 1%
fall in value for every year of duration. Maturity, on the other hand, is the
date on which a fixed-income security becomes due for payment of principal.
There may be less governmental intervention in the securities markets in the
near future. An increase in interest rates could negatively impact a Fund’s net
asset value. Recent and potential future changes in government monetary policy
may affect interest rates.
•Investment-Grade
Debt Securities Risk: Investment-grade
debt securities may be downgraded by a NRSRO to below-investment-grade status,
which would increase the risk of holding these securities. Investment-grade debt
securities rated in the lowest rating category by a NRSRO involve a higher
degree of risk than fixed-income securities with higher credit ratings. While
such securities are considered investment-grade quality and are deemed to have
adequate capacity for payment of principal and interest, such securities lack
outstanding investment characteristics and may share certain speculative
characteristics with non-investment-grade securities.
•Mortgage-Backed
Securities Risk: Mortgage-backed
securities are fixed income securities representing an interest in a pool of
underlying mortgage loans. Mortgage-backed securities are sensitive to changes
in interest rates, but may respond to these changes differently from other fixed
income securities due to the possibility of prepayment of the underlying
mortgage loans. As a result, it may not be possible to determine in advance the
actual maturity date or average life of a mortgage-backed security. Rising
interest rates tend to discourage re-financings, with the result that the
average life and volatility of the security will increase, exacerbating its
decrease in market price. When interest rates fall, however, mortgage-backed
securities may not gain as much in market value because of the expectation of
additional mortgage prepayments that must be reinvested at lower interest rates.
Prepayment risk may make it difficult to calculate the average duration of the
Fund’s mortgage-backed securities and, therefore, to fully assess the interest
rate risk of the Fund. An unexpectedly high rate of defaults on the mortgages
held by a mortgage pool may adversely affect the value of mortgage-backed
securities and could result in losses to the Fund. The risk of such defaults is
generally higher in the cases of mortgage pools that include subprime mortgages.
Subprime mortgages refer to loans made to borrowers with weakened credit
histories or with lower capacity to make timely payments on their mortgages. In
addition, mortgage-backed securities may fluctuate in price based on
deterioration in the perceived or actual value of the collateral underlying the
pool of mortgage loans, typically residential or commercial real estate, which
may result in negative amortization or negative equity meaning that the value of
the collateral would be worth less than the remaining principal amount owed on
the mortgages in the pool. The mortgage-backed securities market has been and
may continue to be negatively affected by the COVID-19 pandemic. The U.S.
government, its agencies or its instrumentalities may implement initiatives in
response to the economic impacts of the COVID-19 pandemic applicable to
federally backed mortgage loans. These initiatives could involve forbearance of
mortgage payments or suspension or restrictions of foreclosures and evictions.
The Fund cannot predict with certainty the extent to which such initiatives or
the economic effects of the pandemic generally may affect rates of prepayment or
default or adversely impact the value of the Fund's investments in securities in
the mortgage industry as a whole.
•Non-Investment-Grade
Debt Securities Risk:
Non-investment-grade debt securities are sometimes referred to as “junk bonds”
and are considered speculative with respect to their issuers’ ability to make
payments of interest and principal. There is a high risk that a Fund could
suffer a loss from investments in non-investment-grade debt securities caused by
the default of an issuer of such securities. Part of the reason for this high
risk is that non-investment-grade debt securities are generally unsecured and
therefore, in the event of a default or bankruptcy, holders of
non-investment-grade debt securities generally will not receive payments until
the holders of all other debt have been paid. Non-investment-grade debt
securities may also be less liquid than investment-grade debt
securities.
•Prepayment
Risk:
Prepayment risk is the risk that a debt security may be paid off and proceeds
invested earlier than anticipated. Prepayment risk is more prevalent during
periods of falling interest rates. Prepayment impacts both the interest rate
sensitivity of the underlying asset, such as an asset-backed or mortgage-backed
security, and its cash flow projections. Therefore, prepayment risk may make it
difficult to calculate the average duration of the Fund's asset- or
mortgage-backed securities which in turn would make it difficult to assess the
interest rate risk of the Fund.
•U.S.
Government Securities Risk:
Certain U.S. government securities are backed by the right of the issuer to
borrow from the U.S. Treasury while others are supported only by the credit of
the issuer or instrumentality. While the U.S. government is able to provide
financial support to U.S. government-sponsored agencies or instrumentalities, no
assurance can be given that it will always do so. Such securities are neither
issued nor guaranteed by the U.S. Treasury.
Foreign
Securities Risk:
Investing
in foreign securities poses additional risks since political and economic events
unique in a country or region will affect those markets and their issuers, while
such events may not necessarily affect the U.S. economy or issuers located in
the United States. In addition, investments in foreign securities are generally
denominated in foreign currency. As a result, changes in the value of those
currencies compared to the U.S. dollar may affect the value of the Fund’s
investments. These currency movements may happen separately from, or in response
to, events that do not otherwise affect the value of the security in the
issuer’s home country. There is a risk that issuers of foreign securities may
not be subject to accounting standards or governmental supervision comparable to
those to which U.S. companies are subject and that less public information about
their operations may exist. There is risk associated with the clearance and
settlement procedures in non-U.S.
markets,
which may be unable to keep pace with the volume of securities transactions and
may cause delays. Foreign markets may be less liquid and more volatile than U.S.
markets and offer less protection to investors. Over-the-counter securities may
also be less liquid than exchange-traded securities. Investments in securities
of foreign issuers may be subject to foreign withholding and other taxes. In
addition, it may be more difficult and costly for the Fund to seek recovery from
an issuer located outside the United States in the event of a default on a
portfolio security or an issuer’s insolvency proceeding. To the extent a Fund
focuses its investments in a single country or only a few countries in a
particular geographic region, economic, political, regulatory or other
conditions affecting such country or region may have a greater impact on Fund
performance relative to a more geographically diversified fund.
While
a Fund’s net assets are valued in U.S. dollars, the securities of foreign
companies are frequently denominated in foreign currencies. Thus, a change in
the value of a foreign currency against the U.S. dollar will result in a
corresponding change in value of securities denominated in that currency. Some
of the factors that may impair the investments denominated in a foreign currency
are: (1) it may be expensive to convert foreign currencies into U.S. dollars and
vice versa; (2) complex political and economic factors may significantly affect
the values of various currencies, including U.S. dollars, and their exchange
rates; (3) government intervention may increase risks involved in purchasing or
selling foreign currency options, forward contracts and futures contracts, since
exchange rates may not be free to fluctuate in response to other market forces;
(4) there may be no systematic reporting of last sale information for foreign
currencies or regulatory requirement that quotations available through dealers
or other market sources be firm or revised on a timely basis; (5) available
quotation information is generally representative of very large round-lot
transactions in the inter-bank market and thus may not reflect exchange rates
for smaller odd-lot transactions (less than $1 million) where rates may be less
favorable; and (6) the inter-bank market in foreign currencies is a global,
around-the-clock market. To the extent that a market is closed while the markets
for the underlying currencies remain open, certain markets may not always
reflect significant price and rate movements.
Political
events in foreign countries may cause market disruptions. Uncertainties
surrounding the sovereign debt of a number of European Union (“EU”) countries
and the viability of the EU have disrupted and may in the future disrupt markets
in the United States and around the world. If one or more countries leave the EU
or the EU dissolves, the world’s securities markets likely will be significantly
disrupted. In January 2020, the United Kingdom (“UK”) left the EU, commonly
referred to as “Brexit,” and the UK ceased to be a member of the EU. Following a
transition period during which the EU and the UK Government engaged in a series
of negotiations regarding the terms of the UK’s future relationship with the EU,
the EU and the UK Government signed an agreement on December 30, 2020 regarding
the economic relationship between the UK and the EU. This agreement became
effective on a provisional basis on January 1, 2021 and formally entered into
force on May 1, 2021. While the full impact of Brexit is unknown, Brexit has
already resulted in volatility in European and global markets. There remains
significant market uncertainty regarding Brexit’s ramifications, and the range
and potential implications of possible political, regulatory, economic, and
market outcomes are difficult to predict. This uncertainty may affect other
countries in the EU and elsewhere, and may cause volatility within the EU,
triggering prolonged economic downturns in certain European countries. Despite
the influence of the lockdowns, and the economic bounce back, Brexit has had a
material impact on the UK's economy. Additionally, trade between the UK and EU
did not benefit from the global rebound in trade in 2021, and remained at the
very low levels experienced at the start of the COVID-19 pandemic in 2020,
highlighting Brexit's potential long-term effects on the UK economy. In
addition, Brexit may create additional and substantial economic stresses for the
UK, including a contraction of the UK economy and price volatility in UK stocks,
decreased trade, capital outflows, devaluation of the British pound, wider
corporate bond spreads due to uncertainty, and declines in business and consumer
spending as well as foreign direct investment. Brexit may also adversely affect
UK-based financial firms that have counterparties in the EU or participate in
market infrastructure (trading venues, clearing houses, settlement facilities)
based in the EU. Additionally, the spread of the COVID-19 pandemic is likely to
continue to stretch the resources and deficits of many countries in the EU and
throughout the world, increasing the possibility that countries may be unable to
make timely payments on their sovereign debt. These events and the resulting
market volatility may have an adverse effect on the performance of the
Fund.
•Depositary
Receipts Risk: Foreign
receipts, which include American Depositary Receipts ("ADRs"), Global Depositary
Receipts, and European Depositary Receipts, are securities that evidence
ownership interests in a security or a pool of securities issued by a foreign
issuer. The risks of depositary receipts include many risks associated with
investing directly in foreign securities, such as individual country risk and
liquidity risk. Unsponsored ADRs, which are issued by a depositary bank without
the participation or consent of the issuer, involve additional risks because
U.S. reporting requirements do not apply, and the issuing bank will recover
shareholder distribution costs from movement of share prices and payment of
dividends. Additionally, the Holding Foreign Companies Accountable Act "HFCAA"
could cause securities of foreign companies, including ADRs, to be delisted from
U.S. stock exchanges if the companies do not allow the U.S. government to
oversee the auditing of their financial information. Although the requirements
of the HFCAA apply to securities of all foreign issuers, the SEC has thus far
limited its enforcement efforts to securities of Chinese companies. If
securities are delisted, a Fund’s ability to transact in such securities will
be
impaired, and the liquidity and market price of the securities may decline. The
Fund may also need to seek other markets in which to transact in such
securities, which could increase the Fund’s costs.
•Emerging
Markets Risk: Investments
in the securities of issuers based in countries with emerging-market economies
are subject to greater levels of risk and uncertainty than investments in
more-developed foreign markets, since emerging-market securities may present
market, credit, currency, liquidity, legal, political, and other risks greater
than, or in addition to, the risks of investing in developed foreign countries.
These risks include high currency exchange-rate fluctuations; increased risk of
default (including both government and private issuers); greater social,
economic, and political uncertainty and instability (including the risk of war);
more substantial governmental involvement in the economy; less governmental
supervision and regulation of the securities markets and participants in those
markets; controls on foreign investment and limitations on repatriation of
invested capital and on a fund’s ability to exchange local currencies for U.S.
dollars; unavailability of currency hedging techniques in certain
emerging-market countries; the fact that companies in emerging-market countries
may be newly organized, smaller, and less seasoned; the difference in, or lack
of, auditing and financial reporting requirements or standards, which may result
in the unavailability of material information about issuers; different clearance
and settlement procedures, which may be unable to keep pace with the volume of
securities transactions or otherwise make it difficult to engage in such
transactions; difficulties in obtaining and/or enforcing legal judgments against
non-U.S. companies and non-U.S. persons, including company directors and
officers, in foreign jurisdictions; and significantly smaller market
capitalizations of emerging-market issuers. In addition, shareholders of
emerging market issuers, such as the fund, often have limited rights and few
practical remedies in emerging markets. Finally, the risks associated with
investments in emerging markets often are significant, and vary from
jurisdiction to jurisdiction and company to company.
•Sovereign
Debt Risk: The
actions of foreign governments concerning their respective economies could have
an important effect on their ability or willingness to service their sovereign
debt. Such actions could have significant effects on market conditions and on
the prices of securities and instruments held by a Fund, including the
securities and instruments of foreign private issuers. Factors which may
influence the ability or willingness of foreign sovereigns to service debt
include, but are not limited to: the availability of sufficient foreign exchange
on the date payment is due; the relative size of its debt service burden to the
economy as a whole; its balance of payments (including export performance) and
cash flow situation; its access to international credits and investments;
fluctuations in interest and currency rates and reserves; and its government's
policies towards the International Monetary Fund, the World Bank, and other
international agencies. If a foreign sovereign defaults on all or a portion of
its foreign debt, a Fund may have limited legal recourse against the issuer
and/or guarantor. In some cases, remedies must be pursued in the courts of the
defaulting party itself, and the ability of the holder of foreign sovereign debt
securities to obtain recourse may be subject to the political climate in the
prevailing country which could substantially delay or defeat any
recovery.
Growth-Investing
Risk:
Growth-oriented
funds may underperform when value investing is in favor, and growth stocks may
be more volatile than other stocks because they are more sensitive to investor
perceptions of the issuing company’s growth of earnings potential. Also, because
growth companies usually reinvest a high portion of earnings in their
businesses, growth stocks may lack the dividends of some value stocks that can
cushion stock prices in a falling market.
Management
Risk: In
managing a Fund’s portfolio, the Advisor may engage one or more sub-advisors to
make investment decisions on a portion of or the entire portfolio. There
is a risk that the Advisor may be unable to identify and retain sub-advisors who
achieve superior investment returns relative to other similar
sub-advisors. The value of your investment may decrease if the sub-advisor
incorrectly judges the attractiveness, value, or market trends affecting a
particular security, issuer, industry, or sector.
Mortgage
Dollar Roll Risk:
Mortgage “dollar rolls” are transactions in which mortgage-backed securities are
sold for delivery in the current month and the seller simultaneously contracts
to repurchase substantially similar securities on a specified future date. The
difference between the sale price and the purchase price (plus any interest
earned on the cash proceeds of the sale) is netted against the interest income
foregone on the securities sold to arrive at an implied borrowing rate.
Alternatively, the sale and purchase transactions can be executed at the same
price, with the Fund being paid a fee as consideration for entering into the
commitment to purchase. If the broker-dealer to whom the Fund sells the security
becomes insolvent, the Fund’s right to repurchase the security may be
restricted. Other risks involved in entering into mortgage dollar rolls include
the risk that the value of the security may change adversely over the term of
the mortgage dollar roll and that the security the Fund is required to
repurchase may be worth less than the security that the Fund originally held.
Municipal
Securities Risk:
The value of municipal securities may be affected by uncertainties in the
municipal market related to legislation or litigation involving the taxation of
municipal securities or the rights of municipal securities holders in the event
of
a bankruptcy. In addition, the ongoing issues facing the national economy may
negatively impact the economic performance of issuers of municipal securities,
and may increase the likelihood that issuers of securities in which the Fund may
invest may be unable to meet their obligations. Proposals to restrict or
eliminate the federal income tax exemption for interest on municipal securities
are introduced before Congress from time to time. Proposals also may be
introduced before state legislatures that would affect the state tax treatment
of a municipal fund's distributions. If such proposals were enacted, the
availability of municipal securities and the value of a municipal fund's
holdings would be affected, and the Board of Trustees would reevaluate the
Fund's investment goals and policies. Municipal bankruptcies are relatively
rare, and certain provisions of the U.S. Bankruptcy Code governing such
bankruptcies are unclear and remain untested. Further, the application of state
law to municipal issuers could produce varying results among the states or among
municipal securities issuers within a state. The ability of a municipal issuer
to seek bankruptcy protection may be subject to the authorization of the
executive or legislative branch of the state's government, and a municipal
bankruptcy may be subject to challenge in the state's courts. These legal
uncertainties could affect the municipal securities market generally, certain
specific segments of the market, or the relative credit quality of particular
securities. There is also the possibility that as a result of litigation or
other conditions, the power or ability of issuers to meet their obligations for
the payment of interest and principal on their municipal securities may be
materially affected or their obligations may be found to be invalid or
unenforceable. Such litigation or conditions may from time to time have the
effect of introducing uncertainties in the market for municipal securities or
certain segments thereof, or of materially affecting the credit risk with
respect to particular bonds.
Adverse
economic, business, legal or political developments might affect all or a
substantial portion of the Fund's municipal securities in the same manner. Also,
some municipal obligations may be backed by a letter of credit issued by a bank
or other financial institution. Adverse developments affecting banks or other
financial institutions could have a negative effect on the value of the Fund's
portfolio securities.
In
making investments, the Fund and the investment sub-advisor will rely on the
opinion of issuers' bond counsel. Neither the Fund nor the sub-advisor will
independently review the basis for those tax opinions. If any of those tax
opinions are ultimately determined to be incorrect, the Fund and its
shareholders could be subject to substantial tax liabilities. Certain provisions
of the Internal Revenue Code of 1986, as amended (the "Code"), relating to the
issuance of municipal obligations may reduce the volume of municipal securities
that qualify for federal tax exemptions. Proposals that may further restrict or
eliminate the income tax exemptions for interest on municipal obligations may be
introduced in the future. If any such proposal became law, it may reduce the
number of municipal obligations available for purchase by the Fund and could
adversely affect the Fund's shareholders by subjecting the income from the Fund
to tax. If this occurs, the Board of Trustees would reevaluate the Fund's
investment goals and strategies and may submit possible changes in its structure
to shareholders.
In
order to be tax exempt, tax-exempt securities must meet certain legal
requirements. Failure to meet such requirements may cause the interest received
and distributed by the Fund to shareholders to be taxable. The Fund may invest
in securities whose interest is subject to state tax, federal regular income
tax, or federal alternative minimum tax. Consult your tax professional for more
information.
The
costs associated with combating the COVID-19 pandemic and the negative impact on
tax revenues has adversely affected the financial condition of many states and
their political subdivisions. The effects of this pandemic could affect the
ability of states and their political subdivisions to make payments on debt
obligations when due and could adversely impact the value of their bonds, which
could negatively impact the performance of the Fund.
Non-Diversification
Risk: A
non-diversified Fund may invest a significant percentage of its assets in the
securities of a limited number of issuers, subject to federal income tax
restrictions relating to the Fund’s qualification as a regulated investment
company. Because a higher percentage of a non-diversified Fund’s holdings may be
invested in the securities of a limited number of issuers, the Fund may be more
susceptible to risks associated with a single economic, business, political or
regulatory event than a diversified fund.
Portfolio
Turnover Risk:
A
Fund may sell its portfolio securities, regardless of the length of time that
they have been held, if the sub-advisor determines that it would be in the
Fund’s best interest to do so. It may be appropriate to buy or sell portfolio
securities due to economic, market, or other factors that are not within the
sub-advisor’s control. These transactions will increase a Fund’s “portfolio
turnover.” A 100% portfolio turnover rate would occur if all of the securities
in the Fund were replaced during a given period. Frequent and active trading may
result in greater expenses to the Fund, which may lower the Fund’s performance
and may result in the realization of substantial capital gains, including net
short-term capital gains. As a result, high portfolio turnover may reduce the
Fund’s returns.
Sector
and Industry Focus Risk: The
Fund may invest a high percentage of its assets in specific sectors and/or
industries of the market in order to achieve a potentially greater investment
return. As a result, the Fund may be more susceptible to
economic,
political, and regulatory developments in a particular sector or industry of the
market, positive or negative, and may experience increased volatility of the
Fund's net asset value with a magnified effect on the total return.
Sector
Focus Risk: A
Fund that focuses its investments in the securities of a particular market
sector is subject to the risk that adverse circumstances will have a greater
impact on the Fund than a fund that does not focus its investments in a
particular sector. It is possible that economic, business or political
developments or other changes affecting one security in the sector of focus will
affect other securities in that sector of focus in the same manner, thereby
increasing the risk of such investments.
Value
Investing Risk: Value
investing presents the risk that the Fund’s security holdings may never reach
their full market value because the market fails to recognize what the portfolio
managers consider the true business value or because the portfolio managers have
misjudged those values. In addition, value investing may fall out of favor and
underperform growth or other styles of investing during given certain
periods.
Where
Can I Find Information About the Funds’ Portfolio Holdings Disclosure
Policies?
A
description of the Funds' policies and procedures for disclosing portfolio
securities to any person is available in the SAI and can also be found on the
Funds' website at TouchstoneInvestments.com.
THE
FUNDS’ MANAGEMENT
Investment
Advisor
Touchstone
Advisors, Inc. ("Touchstone Advisors")
303
Broadway, Suite 1100, Cincinnati, Ohio 45202
Touchstone
Advisors has been a registered investment advisor since 1994. As of September
30, 2022, Touchstone Advisors had approximately $23.1 billion in assets under
management. As the Funds’ investment advisor, Touchstone Advisors reviews,
supervises, and administers the Funds’ investment programs and also ensures
compliance with the Funds’ investment policies and guidelines.
Touchstone
Advisors is responsible for selecting each Fund’s sub-advisor(s), subject to
approval by the Board. Touchstone Advisors selects a sub-advisor that has
shown good investment performance in its areas of expertise. Touchstone
Advisors considers various factors in evaluating a sub-advisor, including:
•Level
of knowledge and skill;
•Performance
as compared to its peers or benchmark;
•Consistency
of performance over 5 years or more;
•Level
of compliance with investment rules and strategies;
•Employees,
facilities and financial strength; and
•Quality
of service.
Touchstone
Advisors will also continually monitor each sub-advisor’s performance through
various analyses and through in-person, telephone, and written consultations
with a sub-advisor. Touchstone Advisors discusses its expectations for
performance with each sub-advisor and provides evaluations and recommendations
to the Board of Trustees, including whether or not a sub-advisor’s contract
should be renewed, modified, or terminated.
The
SEC has granted an exemptive order that permits Touchstone Strategic Trust (the
“Trust”) or Touchstone Advisors, under certain conditions, to select or change
unaffiliated sub-advisors, enter into new sub-advisory agreements, or amend
existing sub-advisory agreements without first obtaining shareholder approval.
The Funds must still obtain shareholder approval of any sub-advisory agreement
with a sub-advisor affiliated with the Trust or Touchstone Advisors other than
by reason of serving as a sub-advisor to one or more Touchstone Funds.
Shareholders of a Fund will be notified of any changes in its sub-advisor.
Two
or more sub-advisors may manage a Fund, from time to time, with each managing a
portion of the Fund’s assets. If a Fund has more than one sub-advisor,
Touchstone Advisors allocates how much of a Fund’s assets are managed by each
sub-advisor. Touchstone Advisors may change these allocations from time to time,
often based upon the results of its evaluations of the sub-advisors.
Touchstone
Advisors is also responsible for running all of the operations of the Funds,
except those that are subcontracted to a sub-advisor, custodian, transfer agent,
sub-administrative agent or other parties. For its services, Touchstone
Advisors is entitled to receive an investment advisory fee from each Fund at an
annualized rate, based on the average daily net assets of the Fund. The
Annual Fee Rate below is the fee paid to Touchstone Advisors by each Fund, net
of any advisory fee waivers and/or expense reimbursements, for the fiscal year
ended June 30, 2022. Touchstone Advisors pays sub-advisory fees to each
sub-advisor from its advisory fee.
|
|
|
|
|
|
|
| |
Fund |
| Net
Annual Fee Rate as a % of Average Daily Net
Assets* |
Balanced
Fund |
| 0.48 |
% |
Core
Municipal Bond Fund(1) |
| 0.22 |
% |
International
Equity Fund |
| 0.60 |
% |
International
Growth Fund |
| 0.54 |
% |
Large
Cap Focused Fund |
| 0.51 |
% |
Large
Cap Fund |
| 0.52 |
% |
Large
Company Growth Fund |
| 0.53 |
% |
Small
Company Fund |
| 0.65 |
% |
Value
Fund(2) |
| 0.53 |
% |
*Advisory
fee waivers and/or expense reimbursements are described in the "Annual Fund
Operating Expenses" table and the related footnotes in each Fund's summary
above.
(1)The
Fund's investment advisory fee rate was contractually reduced to 0.40% on the
first $300 million of assets and 0.30% on assets over $300 million, effective
October 28, 2021. Prior to that date, Fund's advisory fee was 0.50% on the first
$100 million; 0.45% on the next $100 million; 0.40% on the next $100 million;
and 0.375% on assets over $300 million.
(2)The
Fund's investment advisory fee rate was contractually reduced to 0.65% on the
first $200 million of assets and 0.55% on assets over $200 million, effective
September 1, 2021. Prior to that date, Fund's advisory fee was 0.65% on all
assets.
Advisory
and Sub-Advisory Agreement Approval.
A discussion of the basis for the Board’s approval of the Funds’ advisory and
sub-advisory agreements will be found in the Funds' December 31, 2022
semi-annual report.
Fort
Washington Investment Advisors, Inc. ("Fort Washington") is an affiliate of
Touchstone Advisors and serves as sub-advisor to the Balanced Fund,
International Equity Fund, Large Cap Focused Fund, and Small Company Fund.
Therefore, Touchstone Advisors may have a conflict of interest when making
decisions to keep Fort Washington as sub-advisor to the aforementioned Funds.
The Board reviews Touchstone Advisors’ decisions, with respect to the retention
of Fort Washington, to reduce the possibility of a conflict of interest
situation.
Additional
Information
The
Trustees of the Trust oversee generally the operations of each Fund and the
Trust. The Trust enters into contractual arrangements with various parties,
including, among others, the Funds' investment advisor, custodian, transfer
agent, accountants and distributor, who provide services to each Fund.
Shareholders are not parties to, or intended (or “third-party”) beneficiaries
of, any of those contractual arrangements, and those contractual arrangements
are not intended to create in any such individual shareholder or group of
shareholders any right to enforce the terms of the contractual arrangements
against the service providers or to seek any remedy under the contractual
arrangements against the service providers, either directly or on behalf of the
Trust.
This
prospectus provides information concerning the Trust and the Funds that you
should consider in determining whether to purchase shares of a Fund. The Funds
may make changes to this information from time to time. Neither this prospectus,
the SAI or any document filed as an exhibit to the Trust’s registration
statement, is intended to, nor does it, give rise to an agreement or contract
between the Trust or a Fund and its shareholders, or give rise to any contract
or other rights in any such individual shareholder, group of shareholders or
other person other than any rights conferred explicitly by federal or state
securities laws that may not be waived.
Sub-Advisors
and Portfolio Managers
Listed
below are the sub-advisors and their respective portfolio managers that have
responsibility for the day-to-day management of each Fund. A brief biographical
description of each portfolio manager is also provided. The SAI provides
additional information about the portfolio managers’ investments in the Fund or
Funds that they manage, a description of their compensation structure, and
information regarding other accounts that they manage.
International
Growth Fund and Large Company Growth Fund
DSM
Capital Partners LLC (“DSM”),
located at 7111 Fairway Drive, Suite 350, Palm Beach Gardens, Florida 33418,
serves as sub-advisor to the International Growth Fund and Large Company Growth
Fund and served as sub-advisor to the corresponding Predecessor Funds. As
sub-advisor, DSM makes investment decisions for the Funds and also seeks to
ensure compliance with the Funds' investment policies and guidelines. DSM
was founded in 2001 and serves as investment advisor to endowments and
foundations, pensions plans, family offices, high net worth individual
investors, and corporations. DSM is primarily owned by its co-founders Stephen
Memishian and Daniel Strickberger. As of June 30, 2022, DSM had
approximately $7 billion in assets under management.
Daniel
Strickberger,
Chief Investment Officer, co-founded DSM in February 2001 and has served as a
Managing Partner ever since. Mr. Strickberger serves as portfolio manager for
the Funds and served as portfolio manager for the corresponding Predecessor
Funds. Prior to co-founding DSM, Mr. Strickberger was a partner at W.P. Stewart
& Company and Lazard Freres & Co. Mr. Strickberger is a member of DSM’s
Board of Managers.
David
McVey,
Deputy Chief Investment Officer and Portfolio Manager, started in 1992 at Mutual
Funds Service Company in Boston. In 1995 he became equity research associate for
biotechnology and healthcare at Hambrecht & Quist. He then moved to Furman
Selz, becoming a vice president and serving as media and entertainment analyst.
Most recently, he has been media and entertainment associate analyst at J.P.
Morgan H&Q. David received a Bachelor
of
Science degree in Economics and Finance from New Hampshire College, and holds a
Chartered Financial Analyst designation. David joined DSM in 2001 and is a
member of DSM’s Board of Managers.
Eric
Woodworth, CFA,
Deputy Chief Investment Officer and Portfolio Manager, joined
PricewaterhouseCoopers (PwC) in 1994 as a technology consultant. He became a
team leader and managed projects for PwC in Toronto and Chicago. He also served
as an internal instructor for PwC in Tampa, Florida. Eric left PwC in 1999 to
attend business school, spending his summer in equity research at Merrill Lynch.
Eric holds a Bachelor of Arts in Economics from Williams College, an MBA in
Finance from New York University, and holds a Chartered Financial Analyst
designation. Eric joined DSM in 2001 and is a member of DSM's Board of
Managers.
Large
Cap Fund
London
Company of Virginia d/b/a The London Company (“The London Company”),
located at 1800 Bayberry Court, Suite 301, Richmond, Virginia, 23226,
serves as sub-advisor to the Large Cap Fund. As sub-advisor, The London Company
makes investment decisions for the Fund and also ensures compliance with the
Fund’s investment policies and guidelines. The London Company was founded in
1994 and is majority employee owned. Stephen Goddard may be deemed to be a
control person of The London Company through his ownership in TLC Holdings LLC,
which owns a majority of The London Company. As of June 30, 2022, The
London Company had approximately $14.2 billion in assets under
management.
Stephen
Goddard, CFA,
Founder, CIO and Co-Lead Portfolio Manager, founded The London Company in 1994.
Previously, he held Senior Portfolio Management positions at CFB Advisory and
Flippin, Bruce & Porter. He has over 30 years of investment
experience.
J.
Brian Campbell, CFA,
Principal and Portfolio Manager, joined The London Company in 2010. Previously
he spent six years as Portfolio Manager and the Director of Research at Hilliard
Lyons Capital Management. He has over 15 years of investment
experience.
Mark
DeVaul, CFA, CPA,
Principal and Portfolio Manager, joined The London Company in 2011. Previously
he spent eight years as an Equity Research Analyst at Nuveen Investments. He has
over 20 years of investment experience.
Jonathan
Moody, CFA,
Principal and Portfolio Manager, joined The London Company in 2002. Previously,
he founded Primary Research Group. He has over 25 years of investment
experience.
Sam
Hutchings, CFA,
Principal and Co-Lead Portfolio Manager, joined the London Company in 2015.
Previously, he held positions as a Senior Consultant at FactSet Research, and as
a Research Associate at Eaton Vance. He has over 10 years of investment
experience.
Balanced
Fund, International Equity Fund, Large Cap Focused Fund, and Small Company
Fund
Fort
Washington Investment Advisors, Inc. (“Fort Washington”),
located at 303 Broadway, Suite 1200, Cincinnati, Ohio 45202, serves as
sub-advisor to the Balanced Fund, International Equity Fund, Large Cap Focused
Fund, and Small Company Fund. Fort Washington has been a registered investment
advisor since 1990 and provides investment advisory services to individuals,
institutions, mutual funds and variable annuity products. Fort Washington makes
the daily decisions regarding buying and selling specific securities for the
Funds, according to the Funds' investment goals and strategies. As of June 30,
2022, Fort Washington managed approximately $72.2 billion in assets under
management (includes assets under management by Fort Washington of $67.2 billion
and $5.0 billion in commitments managed by Fort Washington Capital Partners
Group (FW Capital), a division of Fort Washington). Fort Washington is
controlled by Western & Southern Mutual Holding Company. Jill T.
McGruder and E. Blake Moore, Jr., the interested Trustees of the Trust, may be
deemed to be an affiliate of Fort Washington.
Balanced
Fund
Daniel
J. Carter, CFA,
began as an Assistant Portfolio Manager of Fort Washington in 2000 and was an
Assistant Vice President and Portfolio Manager, since 2007, until becoming a
Managing Director and Senior Portfolio Manager in 2021. Mr. Carter has
co-managed the Balanced Fund since its inception in 2017.
James
Wilhelm, Managing
Director and Senior Portfolio Manager, joined Fort Washington in 2002. Mr.
Wilhelm has investment experience dating back to 1993. He began as a Senior
Equity Analyst in 2002 and was named Portfolio
Manager
in 2005. He became Assistant Vice President in 2007, Vice President in 2008,
Managing Director in 2014, was Head of Public Equities from 2015 - 2020. He has
co-managed the Balanced Fund since its inception in 2017.
Austin
R. Kummer, CFA,
Vice President and Senior Portfolio Manager. Mr. Kummer has worked at Fort
Washington since 2013, and has co-managed the Balanced Fund since its inception
in 2017.
International
Equity Fund
Andrew
Boczek
is the portfolio manager of the International Equity Fund and joined Fort
Washington in 2017. Mr. Boczek is a Vice President and Senior Portfolio Manager.
Mr. Boczek served as the portfolio manager of the Predecessor Fund, which was
managed by Sentinel Asset Management, Inc. ("Sentinel"), from 2012 to 2017.
Prior to joining Sentinel, from 2006-2012, Mr. Boczek served as an analyst with
Legend Capital Management, LLC. Prior to Legend Capital, Mr. Boczek served as an
analyst on the International Value team at Artisan Partners LP from 2002 to
2006.
Large
Cap Focused Fund
James
Wilhelm,
Managing Director and Senior Portfolio Manager, joined Fort Washington in 2002.
He has investment experience dating back to 1993. He began as a Senior
Equity Analyst in 2002 and was named Portfolio Manager in 2005. He became
Assistant Vice President in 2007, Vice President in 2008, Managing Director in
2014, and was Head of Public Equities from 2015 - 2020.
Small
Company Fund
Jason
Ronovech, CFA
is lead manager of the Small Company Fund and joined Fort Washington in 2017.
Mr. Ronovech is a Vice President and Senior Portfolio Manager. Mr. Ronovech
served as the portfolio manager of the Predecessor Fund, which was managed by
Sentinel, from 2013 to 2017. Prior to joining Sentinel, Mr. Ronovech was a
portfolio manager with Paradigm Capital Management, where he co-managed the
firm’s flagship Small Cap and Smid Cap portfolios. In addition to his management
responsibilities, Mr. Ronovech built and led Paradigm’s equity research team and
served as lead analyst for the technology, consumer and health care sectors over
the course of his 12 years with the firm.
Core
Municipal Bond Fund
Sage
Advisory Services, Ltd. Co. (“Sage”),
located at 5900 Southwest Parkway, Building 1, Austin, Texas 78735, serves as
sub-advisor to the Fund. Sage is an asset manager with approximately $16.5
billion in AUM/AUA as of June 30, 2022. Sage is an employee-owned firm that was
co-founded in 1996 by Robert G. Smith, III and Mark C. MacQueen. Sage serves the
institutional and high net-worth marketplace with conventional ESG fixed income
asset management, asset/liability solutions, and global asset allocation
strategies.
Robert
G. Smith, AIF®, CIMC. Robert
Smith co-founded Sage in 1996 and serves as the firm’s President and Chief
Investment Officer and leads the Investment Committee. He began his career in
1970 at Moody’s Investor Services as a member of the Corporate Bond Rating
Committee. He then went to Loeb, Rhoades & Co. to cover the insurance
industry in the firm’s Institutional Equity Research department. He later worked
for Merrill Lynch & Co. for 13 years in a variety of institutional research,
trading and portfolio management roles. During his time at Merrill Lynch, he was
assigned to the Saudi Arabian Monetary Agency as a Resident Financial Advisor in
Riyadh, responsible for managing the foreign reserves for the Central Bank. Mr.
Smith received his MBA in Finance from New York University Stern School of
Business, and he is an Accredited Investment Fiduciary (AIF) and Certified
Investment Management Consultant (CIMC).
Jeffery
S. Timlin, CFA, CMT. Jeffery
Timlin is a Principal and Managing Director of the firm and a member of the
Investment Committee. Jeffery joined the firm in 2003 and serves as a Senior
Portfolio Manager. Prior to joining Sage, he worked with MFS Investment
Management in Boston as a Fixed Income Associate Trader. He began his career in
1997 as a former Client Account Manager with Brown Brothers Harriman & Co.
Jeff received his B.S. degree in Business Administration from Villanova
University. He is a Chartered Financial Analyst (CFA) and member of the CFA
Institute, and is a Chartered Market Technician (CMT). He is also a member of
the Market Technicians Association, the National Federation of Municipal
Analysts, and the Southern Municipal Finance Society.
Thomas
H. Urano, CFA. Thomas
Urano is a Principal and Managing Director of the firm and a member of the
Investment Committee. Thomas joined Sage in 2003 and leads the Portfolio
Management team. Mr. Urano began his career in 1996 as a Fixed Income Trader
with Credit Suisse Asset Management. Later, he joined Morgan Keegan as Fixed
Income Portfolio Accountant. Mr. Urano received his B.A. in Economics from The
University of Texas at Austin and he is a CFA charter holder.
Prior
Performance for Similar Accounts Managed by Sage
The
following table sets forth composite performance data relating to the historical
performance of all accounts managed by Sage for the periods indicated with
investment objectives, policies, strategies, and risks substantially similar to
those of the Fund. The data is provided to illustrate the past performance of
Sage in managing substantially similar accounts as measured against market
indices and does not represent the performance of the Fund.
The
following performance information is not the Fund’s performance (or that of the
Fund's Predecessor Fund), should not be considered indicative of the past or
future performance of the Fund, and should not be considered a substitute for
the Fund’s performance.
Average
Annual Total Returns
For
the periods ended June 30, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1 Year |
| 3 Years |
| 5
Years |
| 10
Years |
| Since
12/31/04 |
Sage
Core Municipal Fixed Income Composite (Net) |
(8.67)% |
| (0.30)% |
| 1.32% |
| 2.16% |
| 3.24% |
Sage
Core Municipal Fixed Income Composite (Gross) |
(8.44)% |
| (0.02)% |
| 1.65% |
| 2.52% |
| 3.60% |
Bloomberg
Municipal Bond Index
(reflects
no deductions for fees, expenses or taxes) |
(8.57)% |
| (0.18)% |
| 1.51% |
| 2.38% |
| 3.54% |
The
Sage Core Municipal Fixed Income Composite (the “Composite”) represents the
investment performance track record of Sage's core municipal fixed income
strategy, which is the strategy that will be used to manage the Fund. The
accounts comprising the Composite are not subject to the same types of expenses
to which the Fund is subject, certain investment limitations, diversification
requirements, and other restrictions imposed by the 1940 Act and the Internal
Revenue Code of 1986, as amended. Thus, the performance results for the account
could have been adversely affected if the account had been regulated as
investment companies under federal securities and tax laws. The method for
computing historical performance information for the Composite differs from the
SEC's method for computing the historical performance of the Fund.
The
Composite’s returns shown above are presented gross and net of management fees
and include the reinvestment of all income. Gross returns represent historical
gross performance with no deduction for investment fees but net of all trading
expenses. Net returns are net the Composite's actual fees and expenses, which
include all trading expenses and a management fee of twenty-five basis points
(0.25%). Individual portfolio returns are calculated on a daily valuation basis.
These fees and expenses are not reflective of the fees and expenses of the Fund
and may vary depending on, among other things, the applicable fee schedule and
portfolio size. If the Fund's higher expenses were reflected, then the Composite
performance presented would be lower. All returns are expressed in U.S. dollars.
The Fund’s fees are reflected in its fee table in the "Summary" section of this
prospectus.
Sage
claims compliance with the Global Investment Performance Standards (GIPS). The
performance information for the Composite was calculated in accordance with
industry best practices. The Composite performance information is intended to
illustrate past performance for substantially similarly managed accounts by
Sage. Past performance of the Composite is not indicative of future results. As
with any investment there is always the potential for gains as well as the
possibility of losses. The Composite performance information presented herein
has been calculated and provided by Sage, the Fund's sub-advisor. Although
the performance is believed to be reliable, Touchstone Advisors does not
guarantee or make any warranty, express or implied, as to the accuracy or
completeness of such information.
Value
Fund
Barrow,
Hanley, Mewhinney & Strauss, LLC d/b/a Barrow Hanley Global Investors
(“Barrow
Hanley”),
a SEC-registered advisor located at 2200 Ross Avenue, 31st Floor, Dallas,
Texas 75201, serves as sub-advisor to the Value Fund. As sub-advisor, Barrow
Hanley makes investment decisions for the Fund and also ensures compliance with
the Fund’s investment policies and guidelines. Barrow Hanley has provided
value-oriented investment strategies to institutional investors and mutual funds
since 1979. As of June 30, 2022, Barrow Hanley managed approximately $43.3
billion in assets under management.
David
Ganucheau, CFA
joined Barrow Hanley in March 2004. Mr. Ganucheau is a Senior
Managing Director and Portfolio Manager and serves as a member of the large cap
value equity team.
Mark
Giambrone
joined Barrow Hanley in January 1999. Mr. Giambrone is a Senior
Managing Director and Portfolio Manager and serves as a member of the large cap
value equity team.
Lewis
Ropp
joined Barrow Hanley in 2001. Mr. Ropp is a Senior Managing Director
and Portfolio Manager and serves as a member of the large cap value equity
team.
CHOOSING
A CLASS OF SHARES
Share
Class Offerings.
Each class of shares has different sales charges and distribution fees.
The amount of sales charges and distribution fees you pay will depend on which
class of shares you decide to purchase. In addition, certain intermediaries may
provide different sales charge discounts and waivers. The sales charge
variations and waivers for Fund shares purchased through Ameriprise Financial,
Edward D. Jones & Co., Janney Montgomery Scott LLC, Merrill Lynch, Morgan
Stanley, Oppenheimer & Co. Inc., Raymond James and Robert W. Baird & Co.
Incorporated are described in Appendix
A – Intermediary-Specific Sales Charge Waivers and Discounts to
this prospectus.
Class
A Shares
The
offering price of Class A shares of each Fund is equal to its net asset
value (“NAV”) plus a front-end sales charge that you pay when you buy your
shares. The front-end sales charge is generally deducted from the amount of your
investment. Class A shares are subject to a Rule 12b-1 distribution
fee of up to 0.25% of the Fund’s average daily net assets allocable to
Class A shares.
Class
A Sales Charge.
The
following tables show the amount of front-end sales charge you will pay on
purchases of Class A shares for the Touchstone equity funds and the Touchstone
fixed income funds.
For
these purposes, the following Funds are "Touchstone equity funds": Balanced
Fund, International Equity Fund, International Growth Fund, Large Cap
Focused Fund, Large Cap Fund, Large Company Growth Fund, Small Company Fund, and
Value Fund, and the following Fund is a "Touchstone fixed income fund": Core
Municipal Bond Fund.
Applicable
to Touchstone equity funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Amount of Your Investment |
Sales Charge as % of Offering Price |
| Sales Charge as % of Net Amount Invested |
| Dealer Reallowance as % of Offering Price |
Under
$25,000 |
5.00 |
% |
| 5.26 |
% |
| 4.50 |
% |
$25,000
but less than $50,000 |
4.50 |
% |
| 4.71 |
% |
| 4.25 |
% |
$50,000
but less than $100,000 |
4.00 |
% |
| 4.17 |
% |
| 3.75 |
% |
$100,000
but less than $250,000 |
3.00 |
% |
| 3.09 |
% |
| 2.75 |
% |
$250,000
but less than $1 million |
2.00 |
% |
| 2.04 |
% |
| 1.75 |
% |
$1
million or more |
0.00 |
% |
| 0.00 |
% |
| None* |
*
Distributor may pay a Finder's Fee (as defined in the Funds' SAI) on qualifying
assets to dealers who initiate purchases of Class A shares of the Touchstone
equity funds of $1,000,000 or more. However if shares are redeemed prior to 12
months after the date of purchase they may be subject to a CDSC of up to
1.00%.
Applicable
to Touchstone fixed income funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Amount of Your Investment |
| Sales Charge as % of Offering Price |
| Sales Charge as % of Net Amount Invested |
| Dealer Reallowance as % of Offering Price |
Under
$100,000 |
| 3.25 |
% |
| 3.36 |
% |
| 3.00 |
% |
$100,000
but less than $250,000 |
| 2.50 |
% |
| 2.56 |
% |
| 2.35 |
% |
$250,000
but less than $500,000 |
| 1.50 |
% |
| 1.52 |
% |
| 1.40 |
% |
$500,000
or more |
| 0.00 |
% |
| 0.00 |
% |
| None* |
*
Distributor may pay a Finder's Fee on qualifying assets to dealers who initiate
purchases of Touchstone fixed income funds Class A shares of $500,000 or more.
However if shares are redeemed prior to 12 months after the date of purchase
they may be subject to a CDSC of up to 1.00%.
Waiver
of Class A Sales Charge.*
There is no front-end sales charge if you invest $1 million or more in any share
class of the Touchstone equity funds. Additionally, there is no front-end sales
charge if you invest $500,000 or more in any share class of the Touchstone fixed
income funds. If you redeem shares that were part of the $1 million or $500,000
breakpoint purchase within one year of that purchase, you may pay a contingent
deferred sales charge (“CDSC”) of up to 1.00% or 0.50%, respectively, on the
shares redeemed if a commission was paid by Touchstone Securities, Inc. (the
"Distributor" or "Touchstone Securities") to a participating unaffiliated
broker-dealer. There is no front-end sales charge on exchanges between Funds
with the same load schedule or from a higher load schedule to a lower load
schedule. In addition, there is no front-end sales charge on the following
purchases:
•Purchases
by registered representatives or other employees** (and their immediate family
members***) of financial intermediaries having selling agreements with
Touchstone Securities.
•Purchases
in accounts as to which a broker-dealer or other financial intermediary charges
an asset management fee economically comparable to a sales charge, provided the
broker-dealer or other financial intermediary has a selling agreement with
Touchstone Securities.
•Purchases
by a trust department of any financial intermediary serving in a fiduciary
capacity as trustee to any trust over which it has discretionary trading
authority.
•Purchases
through a financial intermediary that has agreements with Touchstone Securities,
or whose programs are available through financial intermediaries that have
agreements with Touchstone Securities relating to mutual fund supermarket
programs, fee-based wrap or asset allocation programs.
•Purchases
by an employee benefit plan having more than 25 eligible employees or a minimum
of $250,000 in plan assets. This waiver applies to any investing employee
benefit plan meeting the minimum eligibility requirements and whose transactions
are executed through a financial intermediary that has entered into an agreement
with Touchstone Securities to use the Touchstone Funds in connection with the
plan’s accounts. The term “employee benefit plan” applies to qualified
pension, profit-sharing, or other employee benefit plans.
•Purchases
by an employee benefit plan that is provided administrative services by a third
party administrator that has entered into a special service arrangement with
Touchstone Securities.
•Reinvestment
of redemption proceeds from Class A shares of any Touchstone Fund if the
reinvestment occurs within 90 days of redemption.
*Please
see Appendix A – Intermediary-Specific Sales Charge Waivers and
Discounts in the prospectus for a description of variations in sales
charges and waivers for Fund shares purchased through Ameriprise Financial,
Edward D. Jones & Co., Janney Montgomery Scott LLC, Merrill Lynch, Morgan
Stanley, Oppenheimer & Co. Inc., Raymond James and Robert W. Baird & Co.
Incorporated.
**The
term “employee” is deemed to include current and retired employees.
***Immediate
family members are defined as the parents, mother-in-law or father-in-law,
spouse, brother or sister, brother-in-law or sister-in-law, son-in-law or
daughter-in-law, niece or nephew and children of a registered representative or
employee, and any other individual to whom the registered representative or
employee provides material support.
Touchstone
Securities has agreed to waive the Class A sales charge for clients of financial
intermediaries that have entered into an agreement with Touchstone Securities to
offer shares to self-directed investment brokerage accounts that may or may not
charge a transaction fee to their customers. As of the date of this Prospectus,
this arrangement applies to shareholders purchasing Fund shares through
platforms at the following intermediaries:
•Merrill
Lynch
•RBC
•JP
Morgan Securities
•Morgan
Stanley
•Raymond
James
•Ameriprise
Financial
Please
see Appendix
A – Intermediary-Specific Sales Charge Waivers and Discounts in
the prospectus for a description of variations in sales charges and waivers for
Fund shares purchased through Ameriprise Financial, Edward D. Jones & Co.,
Janney Montgomery Scott LLC, Merrill Lynch, Morgan Stanley, Oppenheimer &
Co. Inc., Raymond James and Robert W. Baird & Co. Incorporated. You should
ask your financial intermediary if it offers and you are eligible to participate
in such a
mutual
fund program and whether participation in the program is consistent with your
investment goals. The intermediaries sponsoring or participating in these
mutual fund programs may also offer their clients other classes of shares of the
funds and investors may receive different levels of services or pay different
fees depending upon the class of shares included in the program. Investors
should carefully consider any separate transaction fee or other fees charged by
these programs in connection with investing in each available share class before
selecting a share class.
You
must notify your financial intermediary (or Touchstone Securities for purchases
made directly from the Funds) at the time of purchase that you believe you
qualify for a sales charge waiver, in addition to providing appropriate proof of
your eligibility. Failure to provide such notification and proof may result in
you not receiving the sales charge waiver to which you are otherwise entitled.
For direct purchases through Touchstone Securities you may apply for a waiver by
marking the appropriate section on the investment application and completing the
“Special Account Options” form. You can obtain the application and form by
calling Touchstone at 1.800.543.0407 or by visiting the Touchstone Funds'
website: TouchstoneInvestments.com. Purchases at NAV may be made for
investment only, and the shares may not be resold except through redemption by
or on behalf of the Fund. At the option of the Fund, the front-end sales
charge may be included on future purchases.
Reduced
Class A Sales Charge.
You may also purchase Class A shares of a Fund at the reduced sales charges
shown in the table above through the Rights of Accumulation Program or by
signing a Letter of Intent. The following purchasers (“Qualified
Purchasers”) may qualify for a reduced sales charge under the Rights of
Accumulation Program or Letter of Intent:
•an
individual, an individual’s spouse, or an individual’s children under the age of
21; or
•a
trustee or other fiduciary purchasing shares for a single fiduciary account
although more than one beneficiary is involved.
The
following accounts (“Qualified Accounts”) held in any Touchstone Fund may be
grouped together to qualify for the reduced sales charge under the Rights of
Accumulation Program or Letter of Intent:
•Individual
accounts
•Joint
tenant with rights of survivorship accounts
•Uniform
Gifts/Transfers to Minors Act (“UGTMA”) Accounts
•Trust
accounts
•Estate
accounts
•Guardian/Conservator
accounts
•Individual
Retirement Accounts ("IRAs"), including Traditional, Roth, Simplified Employee
Pension Plans ("SEP") and Savings Incentive Match Plan for Employees
("SIMPLE")
•Coverdell
Education Savings Accounts ("Education IRAs")
Please
see Appendix
A – Intermediary-Specific Sales Charge Waivers and Discounts in
the prospectus for a description of variations in sales charges and waivers for
Fund shares purchased through Ameriprise Financial, Edward D. Jones & Co.,
Janney Montgomery Scott LLC, Merrill Lynch, Morgan Stanley, Oppenheimer &
Co. Inc., Raymond James and Robert W. Baird & Co. Incorporated.
Rights
of Accumulation Program.
Under the Rights of Accumulation Program, you may qualify for a reduced sales
charge by aggregating all of your investments held in Qualified
Accounts. You or your dealer must notify Touchstone Securities at the time
of purchase that a purchase qualifies for a reduced sales charge under the
Rights of Accumulation Program and must provide either a list of account numbers
or copies of account statements verifying your qualification. If your
shares are held directly in a Touchstone Fund or through a dealer, you may
combine the historical cost or current NAV (whichever is higher) of your
existing shares of any Touchstone Fund with the amount of your current purchase
in order to take advantage of the reduced sales charge. Historical cost is
the price you actually paid for the shares you own, plus your reinvested
dividends and capital gains. If you are using historical cost to qualify
for a reduced sales charge, you should retain any records to substantiate your
historical costs since the Fund, its transfer agent or your broker-dealer may
not maintain this information.
If
your shares are held through a financial intermediary, you may combine the
current NAV of your existing shares of any Touchstone Fund with the amount of
your current purchase in order to take advantage of the reduced sales
charge. You or your financial intermediary must notify Touchstone at the
time of purchase that a purchase qualifies for a reduced sales charge under the
Rights of Accumulation Program and must provide copies of account statements
dated within three months of your current purchase verifying your
qualification.
Upon
receipt of the above referenced supporting documentation, Touchstone Securities
will calculate the combined value of all of the Qualified Purchaser’s Qualified
Accounts to determine if the current purchase is eligible for a reduced sales
charge.
Purchases
made for nominee or street name accounts (securities held in the name of a
dealer or another nominee such as a bank trust department instead of the
customer) may not be aggregated with purchases for other accounts and may not be
aggregated with other nominee or street name accounts unless otherwise qualified
as described above.
Please
see Appendix
A – Intermediary-Specific Sales Charge Waivers and Discounts in
the prospectus for a description of variations in sales charges and waivers for
Fund shares purchased through Ameriprise Financial, Edward D. Jones & Co.,
Janney Montgomery Scott LLC, Merrill Lynch, Morgan Stanley, Oppenheimer &
Co. Inc., Raymond James and Robert W. Baird & Co. Incorporated.
Letter
of Intent.
If you plan to invest at least $25,000 in Class A shares of Touchstone equity
funds sold with a front-end sales charge or $50,000 in Class A shares of
Touchstone fixed income funds sold with a front-end sales charge (excluding any
reinvestment of dividends and capital gains distributions) during the next 13
months you may qualify for a reduced sales charge by completing the Letter of
Intent section of your account application. A Letter of Intent indicates your
intent to purchase at least $25,000 in Class A shares of any Touchstone equity
fund sold with a front-end sales charge or at least $50,000 in Class A shares of
any Touchstone fixed income fund sold with a front-end sales charge over the
next 13 months in exchange for a reduced sales charge indicated on the above
chart. The minimum initial investment under a Letter of Intent is $10,000. You
are not obligated to purchase additional shares if you complete a Letter of
Intent. If you do not buy enough shares to qualify for the projected level of
sales charge by the end of the 13-month period (or when you sell your shares, if
earlier), then your sales charge will be recalculated to reflect your actual
purchase level. During the term of the Letter of Intent, shares representing 5%
of your intended purchase will be held in escrow. If you do not purchase enough
shares during the 13-month period to qualify for the projected reduced sales
charge, the additional sales charge will be deducted from your escrow account.
If you have purchased Class A shares of any Touchstone Fund sold with a
front-end sales charge within 90 days prior to signing a Letter of Intent, they
may be included as part of your intended purchase, however, previous purchase
transactions will not be recalculated with the proposed new breakpoint. You must
provide either a list of account numbers or copies of account statements
verifying your purchases within the past 90 days.
Please
see Appendix
A – Intermediary-Specific Sales Charge Waivers and Discounts in
the prospectus for a description of variations in sales charges and waivers for
Fund shares purchased through Ameriprise Financial, Edward D. Jones & Co.,
Janney Montgomery Scott LLC, Merrill Lynch, Morgan Stanley, Oppenheimer &
Co. Inc., Raymond James and Robert W. Baird & Co. Incorporated.
Other
Information.
Information about sales charges and breakpoints is also available in a clear and
prominent format on the Touchstone Funds' website:
TouchstoneInvestments.com. You can access this information by selecting the
"Resources" link and then the "Sales Charges and Breakpoints" link under the
heading "Regulatory." For more information about qualifying for a reduced or
waived sales charge, contact your financial advisor or contact Touchstone at
1.800.543.0407.
Class
C Shares
Class
C shares of the Funds are sold at NAV without an initial sales charge so that
the full amount of your purchase payment may be immediately invested in the
Funds. Class C shares are subject to a Rule 12b-1 fee. A CDSC of 1.00%
will be charged on Class C shares redeemed within 1 year after you purchased
them. In most cases it is more advantageous to purchase Class A shares for
amounts of $1 million or more. Therefore, a request to purchase Class C
shares for $1 million or more will be considered as a purchase request for Class
A shares or declined. Please see Appendix
A – Intermediary-Specific Sales Charge Waivers and Discounts in
the prospectus for a description of variations in sales charges and waivers for
Fund shares purchased through Ameriprise Financial, Edward D. Jones & Co.,
Janney Montgomery Scott LLC, Merrill Lynch, Morgan Stanley, Oppenheimer &
Co. Inc., Raymond James and Robert W. Baird & Co. Incorporated.
Effective
June 30, 2020 (the “Effective Date”), Class C shares of each Fund automatically
convert into Class A shares of the same Fund after they have been held for eight
(8) years. The conversion is not considered a taxable event for federal income
tax purposes. These automatic conversions are executed without any sales charge
(including CDSCs), redemption or transaction fee, or other charge. After such a
conversion takes place, the shares will be subject to all features, rights and
expenses of Class A shares. If you hold Class C shares through certain financial
intermediaries, such as an omnibus account or group retirement recordkeeping
platform, your intermediary may not be able to track the amount of time you held
your Class C shares purchased before June 30, 2020. In that case, Class C shares
held prior to June 30, 2020 would convert to Class A shares eight (8) years
after the Effective Date of this policy. In addition, Class C shares held
through certain financial intermediaries may convert to Class A shares of the
same Fund in a shorter time frame than shares purchased directly from the Fund.
Please contact your financial intermediary for further information about its
Class C shares to Class A shares conversion policy.
Class
Y Shares
Class
Y shares of the Funds are sold at NAV without an initial sales charge so that
the full amount of your purchase payment may be immediately invested in the
Funds. Class Y shares are not subject to a Rule 12b-1 fee or CDSC. In
addition, Class Y shares may be purchased through certain mutual fund programs
sponsored by qualified intermediaries, such as broker-dealers and investment
advisors. In each case, the intermediary has entered into an agreement
with Touchstone Securities to include the Touchstone Funds in their program
where the intermediary provides investors participating in their program with
additional services, including advisory, asset allocation, recordkeeping or
other services. You should ask your financial institution if it offers and
you are eligible to participate in such a mutual fund program and whether
participation in the program is consistent with your investment goals. The
intermediaries sponsoring or participating in these mutual fund programs may
also offer their clients other classes of shares of the funds and investors may
receive different levels of services or pay different fees depending upon the
class of shares included in the program. If you purchase Class Y shares
through a broker acting solely as an agent on behalf of its customers, that
broker may charge you a commission. Such commissions, if any, are not charged by
the Touchstone Funds and are not reflected in the fee tables or expense examples
in this prospectus. Investors should carefully consider any separate transaction
fee or other fees charged by these programs in connection with investing in each
available share class before selecting a share class.
Institutional
Class Shares (all Funds except Balanced Fund)
Institutional
Class shares of the Funds are sold at NAV without an initial sales charge so
that the full amount of your purchase payment may be immediately invested in the
Funds. Institutional Class shares are not subject to a Rule 12b-1 fee or
CDSC.
Class
R6 Shares (Balanced Fund, Large Cap Focused Fund, Small Company Fund and Value
Fund)
No
dealer compensation is paid from the sale of Class R6 shares of a Fund. Class R6
shares of a Fund are sold at NAV and do not pay a sales charge, Rule 12b-1 fee,
impose a CDSC, or make payments to financial intermediaries/broker-dealers for
assisting the Distributor in promoting the sales of a Fund's shares. In
addition, neither a Fund nor its affiliates make any type of administrative,
service, relationship, or revenue sharing payments in connection with Class R6
shares. An investor transacting in Class R6 shares may be required to pay a
commission to a broker for effecting such transactions on an agency
basis.
DISTRIBUTION
AND SHAREHOLDER SERVICING ARRANGEMENTS
Rule 12b-1
Distribution Plans.
Each Fund offering Class A shares and Class C shares has adopted a
distribution plan under Rule 12b-1 of the 1940 Act. 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. Under the Class A plan,
the Funds pay 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, the Funds pay
an annual fee of up to 1.00% of average daily net assets that are attributable
to Class C shares (of which up to 0.75% is a distribution fee and up to
0.25% is a shareholder servicing fee). Because these fees are paid out of a
Fund’s assets on an ongoing basis, they will increase the cost of your
investment and over time may cost you more than paying other types of sales
charges.
Additional
Compensation to Financial Intermediaries.
Touchstone Securities, the Trust’s principal underwriter, at its expense
(from a designated percentage of its income) currently provides additional
compensation to certain dealers. Touchstone Securities pursues a focused
distribution strategy with a limited number of dealers who have sold shares of a
Fund or other Touchstone Funds. Touchstone Securities reviews and makes
changes to the focused distribution strategy on a periodic basis. These
payments are generally based on a pro rata share of a dealer’s sales.
Touchstone Securities may also provide compensation in connection with
conferences, sales or training programs for employees, seminars for the public,
advertising and other dealer-sponsored programs.
Touchstone
Advisors, at its own expense, may also provide additional compensation to
certain affiliated and unaffiliated dealers, financial intermediaries or service
providers for certain services including distribution, administrative,
sub-accounting, sub-transfer agency and/or shareholder servicing
activities. These additional cash payments to a financial intermediary are
payments over and above sales commissions or reallowances, distribution fees or
servicing fees (including networking, administration and sub-transfer agency
fees). These additional cash payments also may be made as an expense
reimbursement in cases where the financial intermediary bears certain costs in
connection with providing shareholder services to Fund shareholders.
Touchstone Advisors may also reimburse Touchstone Securities for making these
payments.
Touchstone
Advisors and its affiliates may also pay cash compensation in the form of
finders’ fees or referral fees that vary depending on the dollar amount of
shares sold. The amount and value of additional cash payments vary for
each financial
intermediary.
The additional cash payment arrangement between a particular financial
intermediary and Touchstone Advisors or its affiliates may provide for increased
rates of compensation as the dollar value of the Fund’s shares or particular
class of shares sold or invested through such financial intermediary
increases. The availability of these additional cash payments, the varying
fee structure within a particular additional cash payment arrangement and the
basis for and manner in which a financial intermediary compensates its sales
representatives may create a financial incentive for a particular financial
intermediary and its sales representatives to recommend a Fund’s shares over the
shares of other mutual funds based, at least in part, on the level of
compensation paid. You should consult with your financial advisor and
review carefully any disclosure by the financial firm as to compensation
received by your financial advisor. Although the Funds may use financial
firms that sell the Funds’ shares to effect portfolio transactions for the
Funds, the Funds and Touchstone Advisors will not consider the sale of a Fund’s
shares as a factor when choosing financial firms to effect those
transactions. For more information on payment arrangements, please see the
section entitled “Touchstone Securities” in the SAI.
INVESTING
WITH TOUCHSTONE
Choosing
the Appropriate Investments to Match Your Goals.
Investing well requires a plan. We recommend that you meet with your
financial advisor to plan a strategy that will best meet your financial
goals.
Purchasing
Your Shares
Please
read this prospectus carefully and then determine how much you want to
invest.
•Classes
A and C shares may be purchased directly through Touchstone Securities, Inc.
("Touchstone Securities") or through your financial intermediary.
•Class
Y shares are available through certain financial intermediaries who have
appropriate selling agreements in place with Touchstone Securities.
•Institutional
Class and Class R6 shares may be purchased directly through Touchstone
Securities or through your financial intermediary.
In
order to open an account you must complete an investment application. You can
obtain an investment application from Touchstone Securities, your financial
advisor or other financial intermediary, or by visiting
TouchstoneInvestments.com.
Subject
to the restrictions on new accounts described in the section of this prospectus
entitled “Buying and Selling Fund Shares,” you may purchase shares of the Fund
directly from Touchstone Securities or through your financial
intermediary.
You
may purchase shares in the Fund on a day when the New York Stock Exchange
("NYSE") is open for trading (“Business Day”). Currently, the NYSE is
normally open for trading every weekday except: (1) in the event of an
emergency, or (2) for the following holidays: New Year’s Day, Martin Luther
King, Jr. Day, Presidents’ Day, Good Friday, Memorial Day, Juneteenth
National Independence Day, Independence Day, Labor Day, Thanksgiving Day and
Christmas Day. For more information about how to purchase shares, call
Touchstone Securities at 1.800.543.0407.
Investor
Alert:
Each
Touchstone Fund reserves the right to restrict or reject any purchase request,
including exchanges from other Touchstone Funds, which it regards as disruptive
to efficient portfolio management. For example, a purchase request could
be rejected because of the timing of the investment or because of a history of
excessive trading by the investor. (See “Market Timing Policy” in this
prospectus.) Touchstone Securities may change applicable initial and
additional investment minimums at any time.
Opening
an Account
Important
Information About Procedures for Opening an Account.
Federal law requires all financial institutions to obtain, verify and record
information that identifies each person who opens an account. What this
means for you: When you open an account, we will ask for your name, residential
address, date of birth, government identification number and other information
that will allow us to identify you. We may also ask to see your driver’s
license or other identifying documents. If we do not receive these
required pieces of information, there will be a delay in processing your
investment request, which could subject your investment to market risk. If
we are unable to immediately verify your identity, the Fund may restrict further
investment until your identity is verified. However, if we are unable to
completely verify your identity through our verification process, the Fund
reserves the right to close your account without notice and return your
investment to you at the price determined at the end of business (typically
4:00 p.m. Eastern time or at such other time that the NYSE establishes
official closing prices), on the day that your account is closed. If we
close your account because we are unable to completely verify your identity,
your investment will be subject to market fluctuation, which could result in a
loss of a portion of your principal investment.
Investing
in the Funds
By
mail or through your financial advisor
•Please
make your check (drawn on a U.S. bank and payable in U.S. dollars) payable to
the Touchstone Funds. We do not accept third party checks for initial
investments.
•Send
your check with the completed investment application by regular mail to
Touchstone Investments, P.O. Box 9878, Providence, Rhode Island 02940, or
by overnight mail to Touchstone Investments, c/o BNY Mellon Investment Servicing
(US) Inc., 4400 Computer Drive, Westborough, Massachusetts 01581.
•Your
application will be processed subject to your check clearing. If your
check is returned for insufficient funds or uncollected funds, you may be
charged a fee and you will be responsible for any resulting loss to the
Fund.
•You
may also open an account through your financial advisor.
By
wire or Automated Clearing House (“ACH”)
•You
may open an account by purchasing shares by wire or ACH transfer. Call
Touchstone Investments at 1.800.543.0407 for wire or ACH
instructions.
•Touchstone
Securities will not process wire or ACH purchases until it receives a completed
investment application.
•There
is no charge imposed by the Funds to make a wire or ACH purchase. Your
bank, financial intermediary or processing organization may charge a fee to send
a wire or ACH purchase to Touchstone Securities.
Through
your financial intermediary
•You
may invest in certain share classes by establishing an account through financial
intermediaries that have appropriate selling agreements with Touchstone
Securities.
•Your
financial intermediary will act as the shareholder of record of your
shares.
•Financial
intermediaries may set different minimum initial and additional investment
requirements, may impose other restrictions or may charge you fees for their
services.
•Financial
intermediaries may designate intermediaries to accept purchase and sales orders
on the Funds’ behalf.
•Your
financial intermediaries may receive compensation from the Funds, Touchstone
Securities, Touchstone Advisors or their affiliates.
•Before
investing in the Funds through your financial intermediary, you should read any
materials provided by your financial intermediary together with this
prospectus.
By
exchange.
Touchstone Funds may be exchanged pursuant to the exchange rules outlined
below:
•Class A
shares may be exchanged into Class A shares of any other Touchstone Fund at
NAV, although Touchstone Funds that are closed to new investors may not accept
exchanges.
•Class C
shares may be exchanged into Class C shares of any other Touchstone Fund,
although Touchstone Funds that are closed to new investors may not accept
exchanges.
•Class
Y shares of a Fund are exchangeable for Class Y shares of any other Touchstone
Fund, as long as investment minimums and proper selling agreement requirements
are met. Class Y shares may be available through financial intermediaries that
have appropriate selling agreements with Touchstone Securities, or through
“processing organizations” (e.g., mutual fund supermarkets) that purchase shares
for their customers. Touchstone Funds that are closed to new investors may not
accept exchanges.
•Institutional
Class shares of the Funds are exchangeable for Institutional Class shares of any
other Touchstone Fund as long as investment minimums and proper selling
agreement requirements are met, although Touchstone Funds that are closed to new
investors may not accept exchanges.
•Class A,
C, Y, and R6 shareholders who are eligible to invest in Institutional
Class shares are eligible to exchange their Class A shares,
Class C shares, and Class Y shares and Class R6 shares for
Institutional Class shares of the same Fund, if offered in their state, and
such an exchange can be accommodated by their financial intermediary. Please see
the SAI for more information under “Choosing a Class of
Shares”.
•Class
A, C, Y and Institutional shareholders who are eligible to invest in R6 Class
shares are eligible to exchange their Class A shares, Class C shares, Class Y
shares and Institutional Class shares for R6 shares of the same Fund, if offered
in their state and such an exchange can be accommodated by their financial
intermediary. Please see the SAI for more information under “Choosing a Class of
Shares".
•Class A
and Class C shareholders who are eligible to invest in Class Y shares
are eligible to exchange their Class A shares and/or Class C shares
for Class Y shares of the same Fund, if offered in their state and such an
exchange can be accommodated by their financial intermediary.
•Class
R6 shares may be exchanged into Class R6 shares of any other Touchstone Fund at
NAV, although Touchstone Funds that are closed to new investors may not accept
exchanges.
•Class
R6 shareholders who are eligible to invest in Institutional Class shares
are eligible to exchange their Class R6 shares for Institutional
Class shares of the same Fund, if offered in their state and such an
exchange can be accommodated by their financial intermediary. Please see
the Fund's SAI for more information under “Choosing a Class of
Shares.”
IMPORTANT
INFORMATION ABOUT EXCHANGES: Shares otherwise subject to a CDSC will not be
charged a CDSC in an exchange. However, when you redeem the shares
acquired through the exchange, the shares you redeem may be subject to a CDSC,
depending on when you originally purchased the exchanged shares. For
purposes of computing the CDSC, the length of time you have owned your shares
will be measured from the date of original purchase and will not be affected by
any exchange.
Before
making an exchange of your Fund shares, you should carefully review the
disclosure provided in the prospectus relating to the Fund into which you are
exchanging. Touchstone Funds that are closed to new investors may not accept
exchanges. You do not have to pay any exchange fee for your exchange, but if you
exchange from a Fund with a lower load schedule to a Fund with a higher load
schedule you may be charged the load differential.
You
may realize a taxable gain if you exchange shares of a Fund for shares of
another Fund. See “Distributions and Taxes — Federal Income Tax
Information” for more information and the federal income tax consequences of
such an exchange.
Through
retirement plans.
You may invest in certain Funds through various retirement plans. These
include individual retirement plans and employer sponsored retirement
plans.
Individual
Retirement Plans
•Traditional
IRAs
•SIMPLE
IRAs
•Spousal
IRAs
•Roth
IRAs
•Education
IRAs
•SEP
IRAs
Employer
Sponsored Retirement Plans
•Defined
benefit plans
•Defined
contribution plans (including 401(k) plans, profit sharing plans and money
purchase plans)
•457
plans
To
determine which type of retirement plan is appropriate for you, please contact
your tax advisor.
For
further information about any of the plans, agreements, applications and annual
fees, contact Touchstone at 1.800.543.0407 or contact your financial
intermediary.
Through
a processing organization.
You may also purchase shares of the Funds through a “processing organization,”
(e.g., a mutual fund supermarket) which is a broker-dealer, bank or other
financial institution that purchases shares for its customers.
Some
of the Touchstone Funds have authorized certain processing organizations
(“Authorized Processing Organizations”) to receive purchase and sales orders on
their behalf. Before investing in the Funds through a processing
organization, you should read any materials provided by the processing
organization together with this prospectus. You should also ask the
processing organization if they are authorized by Touchstone Securities to
receive purchase and sales orders on their behalf. If the processing
organization is not authorized, then your purchase order could be rejected which
could subject your investment to market risk. When shares are purchased
through an Authorized Processing Organization, there may be various differences
compared to investing directly with Touchstone Securities. The Authorized
Processing Organization may:
•Charge
a fee for its services.
•Act
as the shareholder of record of the shares.
•Set
different minimum initial and additional investment requirements.
•Impose
other charges and restrictions.
•Designate
intermediaries to accept purchase and sales orders on the Funds’
behalf.
Touchstone
Securities considers a purchase or sales order as received when an Authorized
Processing Organization, or its authorized designee, receives the order in
proper form.
Shares
held through an Authorized Processing Organization may be transferred into your
name following procedures established by your Authorized Processing Organization
and Touchstone Securities. Certain Authorized Processing Organizations may
receive compensation from the Funds, Touchstone Securities, Touchstone Advisors
or their affiliates. It is the responsibility of an Authorized Processing
Organization to transmit properly completed orders so that they will be received
by Touchstone Securities in a timely manner.
Pricing
of Purchases
Purchase
orders received in proper form by Touchstone Securities, an Authorized
Processing Organization, or a financial intermediary, by the close of the
regular session of trading on the NYSE, typically 4:00 p.m. Eastern time, or at
such other time that the NYSE establishes official closing prices, are processed
at that day’s public offering price (NAV plus any applicable sales charge).
Purchase orders received after the close of the regular session of trading on
the NYSE are processed at the public offering price determined on the following
Business Day. It is the responsibility of the financial intermediary or
Authorized Processing Organization to transmit orders that will be received by
Touchstone Securities in proper form and in a timely manner.
Adding
to Your Account
By
check
•Complete
the investment form provided with a recent account statement.
•Make
your check (drawn on a U.S. bank and payable in U.S. dollars) payable to
Touchstone Funds.
•Write
your account number on the check.
•Either
mail the check with the investment form to (1) Touchstone Securities; or (2) to
your financial intermediary at the address printed on your account statement.
Your financial advisor or financial intermediary is responsible for forwarding
payment promptly to Touchstone Securities.
•If
your check is returned for insufficient funds or uncollected funds, you may be
charged a fee and you will be responsible for any resulting loss to the
Fund.
Through
Touchstone Securities -
By
telephone or Internet
•You
can exchange your shares over the telephone by calling Touchstone Securities at
1.800.543.0407, unless you have specifically declined this option. If you do not
wish to have this ability, you must mark the appropriate section of the
investment application.
•You
may also exchange your shares online via the Touchstone Funds’ website
TouchstoneInvestments.com. You may only sell shares over the telephone or via
the Internet if the value of the shares sold is less than or equal to
$100,000.
•In
order to protect your investment assets, Touchstone Securities will only follow
instructions received by telephone that it reasonably believes to be genuine.
However, there is no guarantee that the instructions relied upon will always be
genuine and Touchstone Securities will not be liable, in those cases. Touchstone
Securities has certain procedures to confirm that telephone instructions are
genuine. If it does not follow such procedures in a particular case, it may be
liable for any losses due to unauthorized or fraudulent instructions. Some of
these procedures may include:
•Requiring
personal identification.
•Making
checks payable only to the owner(s) of the account shown on Touchstone
Securities’ records.
•Mailing
checks only to the account address shown on Touchstone Securities’
records.
•Directing
wires only to the bank account shown on Touchstone Securities’
records.
•Providing
written confirmation for transactions requested by telephone.
•Digitally
recording instructions received by telephone.
By
wire or ACH
•Contact
your bank and ask it to wire or ACH funds to Touchstone Securities.
Specify your name and account number when remitting the funds.
•Your
bank may charge a fee for handling wire transfers. ACH transactions take
2-3 business days but can be transferred from most banks without a
fee.
•If
you hold your shares directly with Touchstone Securities and have ACH
instructions on file for your non-retirement individual or joint account you may
initiate a purchase transaction through the Touchstone Funds’ website at
TouchstoneInvestments.com.
•Purchases
in the Funds will be processed at that day’s NAV (or public offering price, if
applicable) if Touchstone Securities receives a properly executed wire or ACH by
the close of the regular session of trading on the NYSE, typically
4:00 p.m. Eastern time or at such other time that the NYSE establishes
official closing prices, on a day when the NYSE is open for regular
trading.
•Contact
Touchstone Securities or your financial intermediary for further
instructions.
By
exchange
•You
may add to your account by exchanging shares from another Touchstone
Fund.
•For
information about how to exchange shares among the Touchstone Funds, see
“Investing in the Funds - By exchange” in this prospectus.
•Exchange
transactions can also be initiated for non-retirement individual or joint
accounts via the Touchstone Funds’ website
TouchstoneInvestments.com.
Purchases
with Securities
Shares
may be purchased by tendering payment in-kind in the form of marketable
securities, including but not limited to, shares of common stock, provided the
acquisition of such securities is consistent with the applicable Fund’s
investment goal and is otherwise acceptable to Touchstone Advisors. Transactions
of this type are generally a taxable transaction. Shareholders should
consult with their particular tax advisor regarding their personal tax
situation.
Automatic
Investment Options
The
various ways that you can automatically invest in the Funds are outlined
below. Touchstone Securities does not charge any fees for these
services. For further details about these services, call Touchstone
Securities at 1.800.543.0407. If you hold your shares through a financial
intermediary or Authorized Processing Organization, please contact them for
further details on automatic investment options.
Automatic
Investment Plan.
You can pre-authorize monthly investments in a Fund of $50 or more to be
processed electronically from a checking or savings account. You will need
to complete the appropriate section in the investment application or special
account options to do this. Amounts that are automatically invested in a
Fund will not be available for redemption until three business days after the
automatic reinvestment.
Reinvestment/Cross
Reinvestment.
Dividends and capital gains can be automatically reinvested in the Fund that
pays them or in another Touchstone Fund within the same class of shares without
a fee or sales charge. Dividends and capital gains will be reinvested in the
Fund that pays them, unless you indicate otherwise on your investment
application. You may also choose to have your dividends or capital gains paid to
you in cash if such amounts are greater than $25; lesser amounts will be
automatically reinvested in the Fund. Dividends are taxable for federal income
tax purposes whether you reinvest such dividends in additional shares of a Fund
or choose to receive cash. If you elect to receive dividends and distributions
in cash for a non–retirement account and the payment (1) is returned and marked
as “undeliverable” or (2) is not cashed for six months, your cash election will
be changed automatically and future dividends will be reinvested in the Fund at
the per share NAV determined as of the payable date. In addition, any
undeliverable checks from non-retirement accounts will be deposited into an
account for potential escheatment to your state of residence. Checks from open
non-retirement accounts that are not cashed for
six
months will be cancelled and then reinvested in the Fund at the per share NAV
determined as of the date of cancellation. Otherwise, no action will be taken
regarding undeliverable or uncashed checks.
Direct
Deposit Purchase Plan.
You may automatically invest Social Security checks, private payroll checks,
pension payouts or any other pre-authorized government or private recurring
payments in our Funds.
Dollar
Cost Averaging.
Our dollar cost averaging program allows you to diversify your investments by
investing the same amount on a regular basis. You can set up periodic
automatic exchanges of at least $50 from one Touchstone Fund to any other.
The applicable sales charge, if any, will be assessed.
Selling
Your Shares
If
you elect to receive your redemption proceeds from a non–retirement account in
cash, the payment is not cashed for six months and the account remains open, the
redemption check will be cancelled and then reinvested in the Fund at the per
share NAV determined as of the date of cancellation. Otherwise, no action will
be taken.
Through
Touchstone Securities - By telephone or Internet
•You
can sell your shares over the telephone by calling Touchstone Securities at
1.800.543.0407, unless you have specifically declined this option. If you
do not wish to have this ability, you must mark the appropriate section of the
investment application.
•You
may also sell your shares online via the Touchstone Funds’ website:
TouchstoneInvestments.com.
•You
may sell shares over the telephone or via the Internet only if the value of the
shares sold is less than or equal to $100,000.
•Shares
held in qualified retirement plans cannot be sold via Internet.
•If
we receive your sale request by the close of the regular session of trading on
the NYSE, typically 4:00 p.m., Eastern time or at such other time that the
NYSE establishes official closing prices, on a day when the NYSE is open for
regular trading, the sale of your shares will be processed at the next
determined NAV on that Business Day. Otherwise it will occur on the next
Business Day.
•Interruptions
in telephone or Internet service could prevent you from selling your shares when
you want to. When you have difficulty making telephone or Internet sales,
you should mail to Touchstone Securities (or send by overnight delivery) a
written request for the sale of your shares.
•In
order to protect your investment assets, Touchstone Securities will only follow
instructions received by telephone that it reasonably believes to be
genuine. However, there is no guarantee that the instructions relied upon
will always be genuine and Touchstone Securities will not be liable, in those
cases. Touchstone Securities has certain procedures to confirm that
telephone instructions are genuine. If it does not follow such procedures
in a particular case, it may be liable for any losses due to unauthorized or
fraudulent instructions. Some of these procedures may
include:
•Requiring
personal identification.
•Making
checks payable only to the owner(s) of the account shown on Touchstone
Securities’ records.
•Mailing
checks only to the account address shown on Touchstone Securities’
records.
•Directing
wires only to the bank account shown on Touchstone Securities’
records.
•Providing
written confirmation for transactions requested by telephone.
•Digitally
recording instructions received by telephone.
Through
Touchstone Securities - By mail
•Write
to Touchstone Securities, P.O. Box 9878, Providence, Rhode Island
02940.
•Indicate
the number of shares or dollar amount to be sold.
•Include
your name and account number.
•Sign
your request exactly as your name appears on your investment
application.
•You
may be required to have your signature guaranteed. (See “Signature
Guarantees” in this prospectus for more information).
Through
Touchstone Securities - By wire
•Complete
the appropriate information on the investment application.
•If
your proceeds are $1,000 or more, you may request that Touchstone Securities
wire them to your bank account.
•You
may be charged a fee of up to $15 by a Fund or a Fund’s Authorized Processing
Organization for wiring redemption proceeds. You may also be charged a fee
by your bank. Certain institutional shareholders who trade daily are not charged
wire redemption fees.
•Your
redemption proceeds may be deposited directly into your bank account through an
ACH transaction. There is no fee imposed by the Funds for ACH
transactions, however, you may be charged a fee by your bank to receive an ACH
transaction. Contact Touchstone Securities for more
information.
•If
you hold your shares directly with Touchstone Securities and have ACH or wire
instructions on file for your non-retirement account you may transact through
the Touchstone Funds’ website at TouchstoneInvestments.com.
Through
Touchstone Securities - Through a systematic withdrawal plan
•You
may elect to receive, or send to a third party, withdrawals of $50 or more if
your account value is at least $5,000.
•Systematic
withdrawals can be made monthly, quarterly, semiannually or
annually.
•There
is no fee for this service.
•There
is no minimum account balance required for retirement plans.
Through
your financial intermediary or Authorized Processing Organization
•You
may also sell shares by contacting your financial intermediary or Authorized
Processing Organization, which may charge you a fee for this service.
Shares held in street name must be sold through your financial intermediary or,
if applicable, the Authorized Processing Organization.
•Your
intermediary or Authorized Processing Organization is responsible for making
sure that sale requests are transmitted to Touchstone Securities in proper form
and in a timely manner.
•Your
financial intermediary may charge you a fee for selling your
shares.
•Redemption
proceeds will only be wired to your account at the financial
intermediary.
Investor
Alert:
Unless
otherwise specified, proceeds will be sent to the record owner at the address
shown on Touchstone Securities’ records.
Pricing
of Redemptions
Redemption
orders received in proper form by Touchstone Securities, an Authorized
Processing Organization, or a financial intermediary, by the close of the
regular session of trading on the NYSE, generally 4:00 p.m. Eastern time, are
processed at that day’s NAV. Redemption orders received after the close of the
regular session of trading on the NYSE are processed at the NAV determined on
the following business day. It is the responsibility of the financial
intermediary or Authorized Processing Organization to transmit orders that will
be received by Touchstone Securities in proper form and in a timely
manner.
Contingent
Deferred Sales Charge (“CDSC”)
If
you purchase $1 million or more in Touchstone equity fund Class A shares at NAV
or $500,000 or more in Touchstone fixed income fund Class A shares at NAV and a
commission was paid by Touchstone Securities to a participating unaffiliated
dealer, a CDSC of up to 1.00% or 0.50%, respectively, may be charged on
redemptions made within 1 year of your purchase. Additionally, when an upfront
commission is paid to a participating dealer on transactions of $1 million or
more in Touchstone equity fund Class A shares or $500,000 or more in Touchstone
fixed income fund Class A shares, the Fund will withhold any 12b-1 fee for the
first 12 months following the purchase date. If you redeem Class C shares within
12 months of your purchase, a CDSC of 1.00% will be charged.
The
CDSC will not apply to redemptions of shares you received through reinvested
dividends or capital gains distributions and may be waived under certain
circumstances described below. The CDSC will be assessed on the lesser of
your shares’ NAV at the time of redemption or the time of purchase. The
CDSC is paid to Touchstone Securities to reimburse expenses incurred in
providing distribution-related services to the Funds.
All
sales charges imposed on redemptions are paid to Touchstone
Securities. In determining whether the CDSC is payable, it is assumed
that shares not subject to the CDSC are the first redeemed followed by other
shares held for the longest period of time. The CDSC will not be imposed
upon shares representing reinvested dividends or capital gains distributions, or
upon amounts representing share appreciation.
No
CDSC is applied if:
•The
redemption is due to the death or post-purchase disability of a shareholder.
Touchstone Securities may require documentation prior to waiver of the
charge.
•Any
partial or complete redemption following death or disability (as defined in the
Code) of a shareholder (including one who owns the shares with his or her spouse
as a joint tenant with rights of survivorship) from an account in which the
deceased or disabled is named. Touchstone Securities may require documentation
prior to waiver of the charge, including death certificates, physicians’
certificates, etc.
•Redemptions
from a systematic withdrawal plan.
If the systematic withdrawal plan is based on a fixed dollar amount or number of
shares, systematic withdrawal redemptions are limited to no more than 10% of
your account value or number of shares per year, as of the date the transfer
agent receives your request. If the systematic withdrawal plan is based on a
fixed percentage of your account value, each redemption is limited to an amount
that would not exceed 10% of your annual account value at the time of
withdrawal.
•Redemptions
from retirement plans qualified under Section 401 of the Code.
The CDSC will be waived for benefit payments made by Touchstone Securities
directly to plan participants. Benefit payments will include, but are
not limited to, payments resulting from death, disability, retirement,
separation from service, required minimum distributions (as described under
Section 401(a)(9) of the Code), in-service distributions, hardships,
loans and qualified domestic relations orders. The CDSC waiver will
not apply in the event of termination of the plan or transfer of the plan to
another financial intermediary.
•The
redemption is for a mandatory withdrawal from a traditional IRA account after
reaching the qualified age based on applicable IRS regulations.
The
above mentioned CDSC waivers do not apply to Class A share redemptions made
within one year of the date of purchase where a Finder's Fee was paid. The SAI
contains further details about the CDSC and the conditions for waiving the CDSC.
Please see Appendix
A – Intermediary-Specific Sales Charge Waivers and Discounts in
the prospectus for a description of variations in sales charges and waivers for
Fund shares purchased through Ameriprise Financial, Edward D. Jones & Co.,
Janney Montgomery Scott LLC, Merrill Lynch, Morgan Stanley, Oppenheimer &
Co. Inc., Raymond James and Robert W. Baird & Co. Incorporated.
Signature
Guarantees
Some
circumstances may require that your request to sell shares be made in writing
accompanied by an original Medallion Signature Guarantee. A Medallion
Signature Guarantee helps protect you against fraud. You can obtain one
from many banks or securities dealers, but not from a notary public. Each
Fund reserves the right to require a signature guarantee for any request related
to your account including, but not limited to:
•Proceeds
to be paid when information on your account has been changed within the last 30
days (including a change in your name or your address, or the name or address of
a payee).
•Proceeds
are being sent to an address other than the address of record.
•Proceeds
or shares are being sent/transferred from unlike registrations such as a joint
account to an individual’s account.
•Sending
proceeds via wire or ACH when bank instructions have been added or changed
within 30 days of your redemption request.
•Proceeds
or shares are being sent/transferred between accounts with different account
registrations.
Market
Timing Policy
Market
timing or excessive trading in accounts that you own or control may disrupt
portfolio investment strategies, may increase brokerage and administrative
costs, and may negatively impact investment returns for all shareholders,
including long-term shareholders who do not generate these costs. The Funds will
take reasonable steps to discourage excessive short-term trading and will not
knowingly accommodate frequent purchases and redemptions of Fund shares by
shareholders. The Board of Trustees has adopted the following policies and
procedures with respect to market timing of the Funds by shareholders. The Funds
will monitor selected trades on a daily basis in an effort to deter excessive
short-term trading. If a Fund has reason to believe that a shareholder has
engaged in excessive short-term trading, the Fund may ask the shareholder to
stop such activities, or restrict or refuse to process purchases or exchanges in
the shareholder’s accounts. While a Fund cannot assure the prevention of all
excessive trading and market timing, by making these judgments the Fund believes
it is acting in a manner that is in the best interests of its shareholders.
However, because the Funds cannot prevent all market timing, shareholders may be
subject to the risks described above.
Generally,
a shareholder may be considered a market timer if he or she has
(i) requested an exchange or redemption out of any of the Touchstone Funds
within 2 weeks of an earlier purchase or exchange request into any Touchstone
Fund, or (ii) made more than 2 “round-trip” exchanges within a rolling 90
day period. A “round-trip” exchange occurs when a shareholder exchanges
from one Touchstone Fund to another Touchstone Fund and back to the original
Touchstone Fund. If a shareholder exceeds these limits, the Funds may
restrict or suspend that shareholder’s exchange privileges and subsequent
exchange requests during the suspension will not be processed. The Funds
may also restrict or refuse to process purchases by the shareholder. These
exchange limits and excessive trading policies generally do not apply to
systematic purchases and redemptions.
Financial
intermediaries (such as investment advisors and broker-dealers) often establish
omnibus accounts in the Funds for their customers through which transactions are
placed. If a Fund identifies excessive trading in such an account, the
Fund may instruct the intermediary to restrict the investor responsible for the
excessive trading from further trading in the Fund. In accordance with
Rule 22c-2 under the 1940 Act, the Funds have entered into information
sharing agreements with certain financial intermediaries. Under these
agreements, a financial intermediary is obligated to: (1) enforce during
the term of the agreement, the Funds’ market-timing policy; (2) furnish the
Funds, upon their request, with information regarding customer trading
activities in shares of the Funds; and (3) enforce the Funds’ market-timing
policy with respect to customers identified by the Funds as having engaged in
market timing. When information regarding transactions in the Funds’
shares is requested by a Fund and such information is in the possession of a
person that is itself a financial intermediary to a financial intermediary (an
“indirect intermediary”), any financial intermediary with whom the Funds have an
information sharing agreement is obligated to obtain transaction information
from the indirect intermediary or, if directed by the Funds, to restrict or
prohibit the indirect intermediary from purchasing shares of the Funds on behalf
of other persons.
The
Funds apply these policies and procedures uniformly to all shareholders believed
to be engaged in market timing or excessive trading. The Funds have no
arrangements to permit any investor to trade frequently in shares of the Funds,
nor will they enter into any such arrangements in the future.
Householding
Policy (only applicable for shares held directly through Touchstone
Securities)
Each
Fund you invest in will send one copy of its prospectus and shareholder reports
to households containing multiple shareholders with the same last name. This
process, known as “householding”, reduces costs and provides a convenience to
shareholders. If you share the same last name and address with another
shareholder and you prefer to receive separate prospectuses and shareholder
reports, call Touchstone Investments at 1.800.543.0407 and we will begin
separate mailings to you within 30 days of your request. If you or others in
your household invest in the Funds through a financial intermediary, you may
receive separate prospectuses and shareholder reports, regardless of whether or
not you have consented to householding on your investment
application.
In
addition, eDelivery is available for statements, confirms, prospectuses and
shareholder reports for shareholders holding accounts directly with
Touchstone Securities, please contact Shareholder Services at 1.800.534.0407 for
more information. If you hold your account through a Broker Dealer or Financial
Intermediary please contact them directly to inquire about eDelivery
opportunities.
Receiving
Sale Proceeds
Touchstone
Securities will forward the proceeds of your sale to you (or to your financial
intermediary) within 7 days (normally within 3 business days) after receipt of a
proper request. Under normal conditions, each Fund typically expects to meet
redemption requests through the use of the Fund's holdings of cash or cash
equivalents, lines of credit, an interfund loan (as discussed in the SAI) or by
selling other Fund assets. A redemption-in-kind may be used under unusual
circumstances and is discussed below in more detail.
Proceeds
Sent to Financial Intermediaries or Authorized Processing Organizations or
Financial Institutions.
Proceeds that are sent to your Authorized Processing Organization or financial
intermediary will not usually be reinvested for you unless you provide specific
instructions to do so. Therefore, the financial advisor, Authorized
Processing Organization or financial institution may benefit from the use of
your money.
Fund
Shares Purchased by Check (only applicable for shares held directly through
Touchstone Securities).
We may delay the processing and payment of redemption proceeds for shares you
recently purchased by check until your check clears, which may take up to 15
days. If you believe you may need your money sooner, you should purchase shares
by bank wire.
Reinstatement
Privilege
(Classes
A and C shares only).
You may, within 90 days of redemption, including redemption proceeds reinvested
from an unaffiliated money market fund, reinvest all or part of your sale
proceeds by sending a written request and a check to Touchstone Securities. If
the redemption proceeds were from the sale of Class A shares and the sales load
that you incurred on the initial purchase is less than the sales charge for the
Fund in which you are reinvesting, you will incur a sales charge representing
the difference. Reinvestment will be at the NAV next calculated after Touchstone
Securities receives your request. If the reinvestment proceeds were from the
sale of your Class C shares, you can reinvest those proceeds into Class C shares
of any Touchstone Fund. If you paid a CDSC on the reinstated amount, that CDSC
will be reimbursed to you upon reinvestment. For federal income tax purposes, an
exchange of Fund shares is treated as the sale of the shares of one Fund and the
purchase of the shares of the other Fund. As a result, the exchange may result
in a tax consequence if you have a capital gain or loss in the Fund shares you
are selling.
Low
Account Balances (only applicable for shares held directly through Touchstone
Securities).
If your balance falls below the minimum amount required for your account, based
on actual amounts you have invested (as opposed to a reduction from market
changes), Touchstone Securities may sell your shares and send the proceeds to
you. This involuntary sale does not apply to retirement accounts or
custodian accounts under the UGTMA. Touchstone Securities will notify you
if your shares are about to be sold and you will have 30 days to increase your
account balance to the minimum amount.
Delay
of Payment.
It is possible that the payment of your sale proceeds could be postponed or your
right to sell your shares could be suspended during certain circumstances.
These circumstances can occur:
•When
the NYSE is closed on days other than customary weekends and
holidays;
•When
trading on the NYSE is restricted; or
•During
any other time when the SEC, by order, permits.
Redemption
in-Kind.
Under unusual circumstances (such as a market emergency), when the Board deems
it appropriate, a Fund may make payment for shares redeemed in portfolio
securities of the Fund taken at current value in order to meet redemption
requests. Shareholders may incur transaction and brokerage costs when they sell
these portfolio securities. Until such time as the shareholder sells the
securities they receive in-kind, the securities are subject to market risk.
Redemptions in-kind are taxable for federal income tax purposes in the same
manner as redemptions for cash. The
Funds may also use redemption in-kind for certain Fund shares held by
ReFlow.
Pricing
of Fund Shares
Each
Fund’s share price (also called “NAV”) and public offering price (NAV plus a
sales charge, if applicable) is determined as of the close of regular trading
(typically 4:00 p.m., Eastern time or at such other time that the NYSE
establishes official closing prices) every day the NYSE is open. Each Fund
calculates its NAV per share for each class, generally using market prices, by
dividing the total value of its net assets by the number of shares
outstanding.
The
Funds’ equity investments are valued based on market value or, if no market
value is available, based on fair value as determined by the Advisor, which has
been designated by the Board as the valuation designee for the Funds pursuant to
Rule 2a-5 under the 1940 Act. The Advisor as the valuation designee may use
pricing services to determine market value for investments. Some specific
pricing strategies follow:
•All
short-term dollar-denominated investments that mature in 60 days or less may be
valued on the basis of amortized cost which the Advisor as the valuation
designee has determined as fair value.
•Securities
mainly traded on a U.S. exchange are valued at the last sale price on that
exchange or, if no sales occurred during the day, at the last quoted bid
price.
Any
foreign securities held by a Fund will be priced as follows:
•All
assets and liabilities initially expressed in foreign currency values will be
converted into U.S. dollar values.
•Securities
mainly traded on a non-U.S. exchange are generally valued according to the
preceding closing values on that exchange. However, if an event that may
change the value of a security occurs after the time that the closing value on
the non-U.S. exchange was determined, but before the close of regular trading on
the NYSE, the security may be priced based on fair value. This may cause
the value of the security on the books of the Fund to be significantly different
from the closing value on the non-U.S. exchange and may affect the calculation
of the NAV.
•Because
portfolio securities that are primarily listed on a non-U.S. exchange may trade
on weekends or other days when a Fund does not price its shares, a Fund’s NAV
may change on days when shareholders will not be able to buy or sell
shares.
Securities
held by a Fund that do not have readily available market quotations are priced
at their fair value using procedures established by the Advisor and adopted by
the Board. Any debt securities held by a Fund for which market quotations
are not readily available are generally priced at their most recent bid prices
as obtained from one or more of the major market makers for such
securities. The Funds may use fair value pricing under the following
circumstances, among others:
•If
the validity of market quotations is deemed to be not reliable.
•If
the value of a security has been materially affected by events occurring before
the Fund’s pricing time but after the close of the primary markets on which the
security is traded.
•If
a security is so thinly traded that reliable market quotations are unavailable
due to infrequent trading.
•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 Fund’s NAV calculation.
The
use of fair value pricing has the effect of valuing a security based upon the
price a Fund might reasonably expect to receive if it sold that security but
does not guarantee that the security can be sold at the fair value price. The
Funds have established fair value policies and procedures that delegate fair
value responsibilities to the Advisor, as the Fund's valuation designee. These
policies and procedures outline the fair value method for the Advisor. The
Advisor’s determination of a security’s fair value price often involves the
consideration of a number of subjective factors, and is therefore subject to the
unavoidable risk that the value that is assigned to a security may be higher or
lower than the security’s value would be if a reliable market quotation for the
security was readily available. With respect to any portion of a Fund’s assets
that is invested in other mutual funds, that portion of the Fund’s NAV is
calculated based on the NAV of that mutual fund. The prospectus for the other
mutual fund explains the circumstances and effects of fair value pricing for
that mutual fund.
DISTRIBUTIONS
AND TAXES
Each
Fund intends to distribute to its shareholders substantially all of its net
investment income and capital gains. Dividends, if any, of net investment income
are declared and paid annually by all Funds except the Balanced Fund, the Value
Fund and the Core Municipal Bond Fund. Dividends, if any, of net investment
income are declared and paid quarterly by the Balanced Fund and the Value Fund.
Dividends, if any, of net investment income are declared daily and paid monthly
by the Core Municipal Bond Fund. Each Fund makes distributions of capital gains,
if any, at least annually. If you own shares on a Fund’s distribution record
date, you will be entitled to receive the distribution.
You
will receive income dividends and distributions of capital gains in the form of
additional Fund shares unless you elect to receive payment in cash. Cash
payments will only be made for amounts equal to or exceeding $25; for amounts
less than $25, the dividends and distributions will be automatically reinvested
in the paying Fund and class. To elect cash payments, you must notify the
Funds in writing or by phone prior to the date of distribution. Your
election will be effective for dividends and distributions paid after we receive
your notice. To cancel your election, simply send written notice to
Touchstone Investments, P.O. Box 9878, Providence, Rhode Island 02940, or
by overnight mail to Touchstone Investments, c/o BNY Mellon Investment Servicing
(US) Inc., 4400 Computer Drive, Westborough, Massachusetts 01581, or call
Touchstone Securities at 1.800.543.0407. If you hold your shares through a
financial institution, you must contact the institution to elect cash
payment. If you elect to receive dividends and distributions in cash and
the payment (1) is returned and marked as “undeliverable” or (2) is
not cashed for six months, your cash election will be changed automatically and
future dividends will be reinvested in the Fund at the per share NAV determined
as of the date of payment.
A
Fund’s dividends and other distributions are taxable to shareholders (other than
retirement plans and other tax-exempt investors) whether received in cash or
reinvested in additional shares of the Fund, except in the case of the
Touchstone Core Municipal Bond Fund as described below. A dividend or
distribution paid by a Fund has the effect of reducing the NAV per share on the
ex-dividend date by the amount of the dividend or distribution. A dividend
or distribution declared shortly after a purchase of shares by an investor
would, therefore, represent, in substance, a return of capital to the
shareholder with respect to such shares even though it would be subject to
federal income taxes.
For
most shareholders, a statement will be sent to you within 45 days after the end
of each year detailing the federal income tax status of your
distributions. Please see “Federal Income Tax Information” below for more
information on the federal income tax consequences of dividends and other
distributions made by a Fund.
Federal
Income Tax Information
The
tax information in this prospectus is provided only for general information
purposes for U.S. taxpayers and should not be considered as tax advice or relied
on by a shareholder or prospective investor.
General.
The
Funds intend to qualify annually to be treated as regulated investment companies
(“RICs”) under Subchapter M of Chapter 1, Subtitle A of the Code. As such,
the Funds will not be subject to federal income taxes on the earnings they
distribute to shareholders provided they satisfy certain requirements and
restrictions of the Code, one of which is to distribute to a Fund’s shareholders
substantially all of the Fund’s net investment income and net short-term capital
gains each year. If for any taxable year a Fund fails to qualify as a RIC:
(1) it will be subject to tax in the same manner as an ordinary corporation
and thus will be subject to federal income tax at the corporate tax rate; and
(2) distributions from its earnings and profits (as determined under
federal income tax principles) will be taxable as ordinary dividend income and
generally eligible for the dividends-received deduction for corporate
shareholders and for “qualified dividend income” treatment for non-corporate
shareholders. In addition, the Fund could be required to recognize unrealized
gains, pay substantial taxes and interest and make substantial distributions
before requalifying for RIC treatment.
Distributions.
The Funds will make distributions to you that may be taxed as ordinary income or
capital gains or, in the case of the Touchstone Core Municipal Bond Fund, may
qualify as exempt interest income. The dividends and distributions you
receive may be subject to federal, foreign, state and local taxation, depending
upon your tax situation. Distributions are taxable whether you reinvest
such distributions in additional shares of the Fund or choose to receive
cash. Taxable Fund distributions are taxable to a shareholder even if the
distributions are paid from income or gains earned by a Fund prior to the
shareholder’s investment and, thus, were included in the price the shareholder
paid for the shares. For example, a shareholder who purchases shares on or just
before the record date of a Fund distribution will pay full price for the shares
and may receive a portion of the investment back as a taxable distribution.
Distributions declared by a Fund during October, November or
December to shareholders of record during such month and paid by
January 31 of the following year are treated for federal income tax
purposes as if received by shareholders and paid by the Fund on December 31
of the year in which the distribution was declared.
Ordinary
Income.
Net investment income, except for qualified dividend income and income
designated as tax-exempt, and short-term capital gains that are distributed to
you are taxable as ordinary income for federal income tax purposes regardless of
how long you have held your Fund shares. Certain dividends distributed to
non-corporate shareholders and designated by a Fund as “qualified dividend
income” are eligible for the long-term capital gains rate, provided certain
holding period and other requirements are satisfied.
Exempt
Interest Income.
Touchstone Core Municipal Bond Fund intends to meet certain federal tax
requirements so that distributions of the tax-exempt interest it earns may be
treated as “exempt-interest dividends.” However, any portion of exempt-interest
dividends attributable to interest on private activity bonds may increase
certain shareholders’ alternative minimum tax.
Net
Capital Gains.
Net capital gains (i.e., the excess of net long-term capital gains over net
short-term capital losses) distributed to you, if any, are taxable as long-term
capital gains for federal income tax purposes regardless of how long you have
held your Fund shares.
Sale
or Exchange of Shares.
It is a taxable event for you if you sell shares of a Fund or exchange shares of
a Fund for shares of another Touchstone Fund. Depending on the purchase
price and the sale price of the shares you sell or exchange, you may have a
taxable gain or loss on the transaction. Any realized gain or loss,
generally, will be a capital gain or loss, assuming you held the shares of the
Fund as a capital asset. The capital gain will be long-term or short-term
depending on how long you have held your shares in the Fund. Sales of
shares of a Fund that you have held for twelve months or less will be a
short-term capital gain or loss and if held for more than twelve months will
constitute a long-term capital gain or loss. Any loss realized by a
shareholder on a disposition of shares held for six months or less will be
treated as a long-term capital loss to the extent of any distributions of
capital gain dividends received by the shareholder and disallowed to the extent
of any distributions of exempt-interest dividends, if any, received by the
shareholder with respect to such shares, unless the Fund declares
exempt-interest dividends on a daily basis in an amount equal to at least 90% of
its net tax-exempt interest and distributes such dividends on a monthly or more
frequent basis.
Returns
of Capital. If
a Fund makes a distribution in excess of its current and accumulated earnings
and profits, the excess will be treated as a return of capital to the extent of
a shareholder’s basis in his or her shares, and thereafter as capital
gain. A return of capital is not taxable, but it reduces a shareholder’s
basis in his or her shares, thus reducing any loss or increasing any gain on a
subsequent taxable disposition by the shareholder of such shares.
Backup
Withholding.
A Fund may be required to withhold U.S. federal income tax on all distributions
and sales proceeds payable to shareholders who fail to provide their correct
taxpayer identification number or to make required certifications, or who have
been notified by the Internal Revenue Service (the “IRS”) that they are subject
to backup withholding.
Medicare
Tax.
An additional 3.8% Medicare tax is imposed on certain net investment income
(including dividends and distributions received from a Fund and net gains from
redemptions or other taxable dispositions of Fund shares) of U.S. individuals,
estates and trusts to the extent that such person’s “modified adjusted gross
income” (in the case of an individual) or “adjusted gross income” (in the case
of an estate or trust) exceeds a threshold amount.
Foreign
Taxes.
Income received by a Fund from sources within foreign countries may be subject
to foreign withholding and other taxes. If a Fund qualifies (by having
more than 50% of the value of its total assets at the close of the taxable year
consist of stock or securities in foreign corporations or by being a qualified
fund of funds) and elects to pass through foreign taxes paid on its investments
during the year, such taxes will be reported to you as income. You may, however,
be able to claim an offsetting tax credit or deduction on your federal income
tax return, depending on your particular circumstances and provided you meet
certain holding period and other requirements. Tax-exempt holders of Fund
shares, such as qualified tax-advantaged retirement plans, will not benefit from
such a deduction or credit.
Non-U.S.
Shareholders.
Non-U.S. shareholders may be subject to U.S. tax as a result of an investment in
a Fund. This prospectus does not discuss the U.S. or foreign tax
consequences of an investment by a non-U.S. shareholder in a
Fund. Accordingly, non-U.S. shareholders are advised to consult their own
tax advisors as to the U.S. and foreign tax consequences of an investment in a
Fund.
Statements
and Notices.
You will receive an annual statement outlining the tax status of your
distributions. You may also receive written notices of certain foreign
taxes paid by a Fund during the prior taxable year.
Important
Tax Reporting Considerations.
The Funds are required to report cost basis and holding period information to
both the IRS and shareholders for gross proceeds from the sales of Fund shares
purchased on or after January 1, 2012 ("covered shares"). This information
is reported on Form 1099-B. The average cost method will be used to
determine the cost basis of covered shares unless the shareholder instructs a
Fund in writing that the shareholder wants to use another available method for
cost basis reporting (for example, First In, First Out (FIFO), Last In, First
Out (LIFO), Specific Lot Identification (SLID) or High Cost, First Out (HIFO)).
If the shareholder designates SLID as the shareholder’s tax cost basis method,
the shareholder will also need to designate a secondary cost basis method
(Secondary Method). If a Secondary Method is not provided, a Fund will designate
FIFO as the Secondary Method and will use the Secondary Method with respect to
systematic withdrawals. If you hold shares of a Fund through a financial
intermediary, the financial intermediary will be responsible for this reporting
and the financial intermediary’s default cost basis method may apply.
Please consult your tax advisor for additional information regarding cost basis
reporting and your situation.
Redemptions
by S corporations of covered shares are required to be reported to the IRS on
Form 1099-B. If a shareholder is a corporation and has not instructed the
Fund that it is a C corporation in its Account Application or by written
instruction, the Fund will treat the shareholder as an S corporation and file a
Form 1099-B.
This
section is only a summary of some important federal income tax considerations
that may affect your investment in a Fund. More information regarding
these considerations is included in the Funds’ SAI. You are urged and
advised to consult your own tax advisor regarding the effects of an investment
in a Fund on your tax situation, including the application of foreign, state,
local and other tax laws to your particular situation.
FINANCIAL
HIGHLIGHTS
The
financial highlights tables are intended to help you understand each Fund’s
financial performance for the past five years or, if shorter, the period of a
Fund’s operations. Certain information reflects financial results for a single
Fund share. The total returns in the table represent the rate an investor would
have earned (or lost) on an investment in a Fund, assuming reinvestment of all
dividends and distributions. The financial highlights for each Fund, except as
noted below, for the years ended June 30, 2022, 2021, 2020, 2019 and 2018
were audited by Ernst & Young LLP ("Ernst & Young"), an independent
registered public accounting firm, whose report, along with each Fund’s
financial statements and related notes, is included in the Funds’ June 30,
2022 annual
report.
The financial highlights for the Balanced Fund, International Equity Fund, Large
Cap Focused Fund, and Small Company Fund were audited by Ernst & Young for
the fiscal year ended June 30, 2022, 2021, 2020, 2019, the seven months ended
June 30, 2018 and for the year ended November 30, 2017. You can obtain the
Funds' most recent annual
report
at no charge by calling 1.800.543.0407 or by downloading a copy from the
Touchstone Investments website at: TouchstoneInvestments.com/Resources. The
annual report has been incorporated by reference into the SAI.
Touchstone
Balanced Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Period
Ended |
| Net
asset value at beginning of period |
Net
investment income (loss) |
| Net
realized and unrealized gains (losses) on investments |
Total
from investment operations |
Distributions
from net investment income |
Distributions
from realized capital gains |
Total
distributions |
Net
asset value at end of period |
Total
return(1) |
| Net
assets at end of period (000's) |
Ratio
of net expenses to average net assets |
| Ratio
of gross expenses to average net assets |
| Ratio
of net investment income (loss) to average net assets |
| Portfolio
turnover rate |
|
|
| |
Class
A |
|
|
|
|
|
|
|
|
|
|
|
| |
11/30/17 |
| $19.68 |
$0.21 |
| $2.89 |
$3.10 |
$(0.25) |
$(0.13) |
$(0.38) |
$22.40 |
15.95% |
| $258,279 |
1.03% |
| 1.04 |
% |
| 0.99 |
% |
| 46 |
% |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
(2)(3) |
22.40 |
0.16 |
| 0.22 |
0.38 |
(0.18) |
(1.06) |
(1.24) |
21.54 |
1.72 |
(4) |
239,056 |
1.01 |
(5) |
1.07 |
|
(5) |
1.24 |
|
(5) |
119 |
|
(4) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
| 21.54 |
0.32 |
| 1.73 |
2.05 |
(0.34) |
(1.07) |
(1.41) |
22.18 |
10.13 |
| 244,037 |
1.01 |
| 1.09 |
|
| 1.49 |
|
| 81 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
| 22.18 |
0.27 |
| 1.85 |
2.12 |
(0.28) |
(2.41) |
(2.69) |
21.61 |
10.09 |
| 250,298 |
1.01 |
| 1.07 |
|
| 1.25 |
|
| 135 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
| 21.61 |
0.16 |
(6) |
5.47 |
5.63 |
(0.15) |
(1.57) |
(1.72) |
25.52 |
26.92 |
| 322,009 |
1.01 |
| 1.03 |
|
| 0.66 |
|
| 60 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
| 25.52 |
0.14 |
(6) |
(3.42) |
(3.28) |
(0.15) |
(0.61) |
(0.76) |
21.48 |
(13.32) |
| 521,933 |
0.99 |
| 0.99 |
|
| 0.54 |
|
| 92 |
|
(7)(8) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Class
C |
|
|
|
|
|
|
|
|
|
|
|
| |
11/30/17 |
| $19.73 |
$0.04 |
| $2.91 |
$2.95 |
$(0.09) |
$(0.13) |
$(0.22) |
$22.46 |
15.09% |
| $42,800 |
1.79% |
| 1.81 |
% |
| 0.23 |
% |
| 46 |
% |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
(2)(3) |
22.46 |
0.06 |
| 0.22 |
0.28 |
(0.05) |
(1.06) |
(1.11) |
21.63 |
1.25 |
(4) |
39,769 |
1.78 |
(5) |
1.86 |
|
(5) |
0.47 |
|
(5) |
119 |
|
(4) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
| 21.63 |
0.15 |
| 1.75 |
1.90 |
(0.17) |
(1.07) |
(1.24) |
22.29 |
9.33 |
| 34,380 |
1.78 |
| 1.89 |
|
| 0.72 |
|
| 81 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
| 22.29 |
0.11 |
| 1.86 |
1.97 |
(0.13) |
(2.41) |
(2.54) |
21.72 |
9.23 |
| 44,174 |
1.78 |
| 1.88 |
|
| 0.48 |
|
| 135 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
| 21.72 |
(0.03) |
(6) |
5.49 |
5.46 |
(0.02) |
(1.57) |
(1.59) |
25.59 |
25.93 |
| 65,455 |
1.78 |
| 1.81 |
|
| (0.11) |
|
| 60 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
| 25.59 |
(0.05) |
(6) |
(3.42) |
(3.47) |
— |
(0.61) |
(0.61) |
21.51 |
(13.96) |
| 73,906 |
1.75 |
| 1.75 |
|
| (0.22) |
|
| 92 |
|
(7)(8) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Class
Y |
|
|
|
|
|
|
|
|
|
|
|
| |
11/30/17 |
(9) |
$19.57 |
$0.28 |
| $2.84 |
$3.12 |
$(0.30) |
$(0.13) |
$(0.43) |
$22.26 |
16.20% |
| $31,215 |
0.78% |
| 0.80 |
% |
| 1.25 |
% |
| 46 |
% |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
(2)(3) |
22.26 |
0.19 |
| 0.22 |
0.41 |
(0.22) |
(1.06) |
(1.28) |
21.39 |
1.86 |
(4) |
30,612 |
0.81 |
(5) |
0.90 |
|
(5) |
1.44 |
|
(5) |
119 |
|
(4) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
| 21.39 |
0.35 |
| 1.72 |
2.07 |
(0.38) |
(1.07) |
(1.45) |
22.01 |
10.33 |
| 60,638 |
0.81 |
| 0.88 |
|
| 1.69 |
|
| 81 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
| 22.01 |
0.32 |
| 1.84 |
2.16 |
(0.33) |
(2.41) |
(2.74) |
21.43 |
10.35 |
| 94,921 |
0.81 |
| 0.87 |
|
| 1.45 |
|
| 135 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
| 21.43 |
0.20 |
(6) |
5.41 |
5.61 |
(0.19) |
(1.57) |
(1.76) |
25.28 |
27.12 |
| 197,877 |
0.81 |
| 0.81 |
|
| 0.86 |
|
| 60 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
| 25.28 |
0.18 |
(6) |
(3.38) |
(3.20) |
(0.19) |
(0.61) |
(0.80) |
21.28 |
(13.13) |
| 155,159 |
0.79 |
(10) |
0.75 |
|
| 0.74 |
|
| 92 |
|
(7)(8) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Class
R6 |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
(11) |
$26.15 |
$0.13 |
(6) |
$(4.22) |
$(4.09) |
$(0.18) |
$(0.61) |
$(0.79) |
$21.27 |
(16.08)% |
(4) |
$112 |
0.64% |
(5) |
33.98% |
(5) |
0.89% |
(5) |
92 |
% |
(7)(8) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(1)Total
returns shown exclude the effect of applicable sales loads and fees. If these
charges were included, the returns would be lower.
(2)Represents
the seven months ended June 30, 2018.
(3)The
Fund changed its fiscal year end from November 30 to June 30.
(4)Not
annualized.
(5)Annualized.
(6)The
net investment income per share was based on average shares outstanding for the
period.
(7)Portfolio
turnover excludes securities delivered from processing
redemptions-in-kind.
(8)Portfolio
turnover excludes the purchases and sales of securities by the AIG Asset
Allocation Fund and AIG Multi-Asset Allocation Fund acquired on July 16, 2021.
If these transactions were included, portfolio turnover would have been
higher.
(9)Effective
October 28, 2017, Class I shares of the Sentinel Balanced Fund (the “Predecessor
Fund”) were reorganized into Class Y shares of the Fund.
(10)Net
expenses include amounts recouped by the Advisor.
(11)Represents
the period from commencement of operations (October 28, 2021) through June 30,
2022 for Class R6.
Touchstone
Core Municipal Bond Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Period
Ended |
Net
asset value at beginning of period |
Net
investment income |
Net
realized and unrealized gains (losses) on investments |
Total
from investment operations |
Distributions
from net investment income |
Distributions
from realized capital gains |
Total
distributions |
Net
asset value at end of period |
Total
return(1) |
Net
assets at end of period (000's) |
Ratio
of net expenses to average net assets |
Ratio
of gross expenses to average net assets |
Ratio
of net investment income (loss) to average net assets |
Portfolio
turnover rate |
|
| |
Class
A |
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
$11.55 |
$0.33 |
$(0.22) |
$0.11 |
$(0.33) |
$— |
$(0.33) |
$11.33 |
0.99% |
$35,728 |
0.85% |
1.13 |
% |
2.91 |
% |
47 |
% |
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
11.33 |
0.32 |
0.30 |
0.62 |
(0.32) |
— |
(0.32) |
11.63 |
5.60 |
33,515 |
0.85 |
1.15 |
| 2.85 |
| 53 |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
11.63 |
0.30 |
0.21 |
0.51 |
(0.30) |
(0.01) |
(0.31) |
11.83 |
4.38 |
32,060 |
0.85 |
1.18 |
| 2.53 |
| 33 |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
11.83 |
0.28 |
0.06 |
0.34 |
(0.28) |
— |
(0.28) |
11.89 |
2.90 |
30,870 |
0.85 |
1.15 |
| 2.35 |
| 21 |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
11.89 |
0.16 |
(1.16) |
(1.00) |
(0.16) |
(0.01) |
(0.17) |
10.72 |
(8.43) |
25,101 |
0.82 |
1.08 |
| 1.40 |
| 157 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Class
C |
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
$11.57 |
$0.25 |
$(0.24) |
$0.01 |
$(0.25) |
$— |
$(0.25) |
$11.33 |
0.06% |
$5,363 |
1.60% |
2.01 |
% |
2.16 |
% |
47 |
% |
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
11.33 |
0.23 |
0.33 |
0.56 |
(0.24) |
— |
(0.24) |
11.65 |
4.97 |
2,756 |
1.60 |
2.08 |
| 2.10 |
| 53 |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
11.65 |
0.21 |
0.21 |
0.42 |
(0.21) |
(0.01) |
(0.22) |
11.85 |
3.61 |
2,050 |
1.60 |
2.32 |
| 1.78 |
| 33 |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
11.85 |
0.18 |
0.07 |
0.25 |
(0.19) |
— |
(0.19) |
11.91 |
2.13 |
1,180 |
1.60 |
2.27 |
| 1.60 |
| 21 |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
11.91 |
0.08 |
(1.17) |
(1.09) |
(0.08) |
(0.01) |
(0.09) |
10.73 |
(9.27) |
943 |
1.57 |
2.47 |
| 0.65 |
| 157 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Class
Y |
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
$11.56 |
$0.29 |
$(0.16) |
$0.13 |
$(0.36) |
$— |
$(0.36) |
$11.33 |
1.15% |
$4,596 |
0.60% |
1.16 |
% |
3.16 |
% |
47 |
% |
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
11.33 |
0.35 |
0.31 |
0.66 |
(0.35) |
— |
(0.35) |
11.64 |
5.96 |
3,031 |
0.60 |
1.05 |
| 3.10 |
| 53 |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
11.64 |
0.33 |
0.22 |
0.55 |
(0.33) |
(0.01) |
(0.34) |
11.85 |
4.73 |
2,616 |
0.60 |
1.31 |
| 2.78 |
| 33 |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
11.85 |
0.31 |
0.05 |
0.36 |
(0.31) |
— |
(0.31) |
11.90 |
3.07 |
3,449 |
0.60 |
1.25 |
| 2.60 |
| 21 |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
11.90 |
0.19 |
(1.15) |
(0.96) |
(0.19) |
(0.01) |
(0.20) |
10.74 |
(8.19) |
2,740 |
0.57 |
1.11 |
| 1.65 |
| 157 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Institutional
Class |
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
$11.56 |
$0.30 |
$(0.16) |
$0.14 |
$(0.37) |
$— |
$(0.37) |
$11.33 |
1.18% |
$560 |
0.55% |
2.54 |
% |
3.21 |
% |
47 |
% |
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
11.33 |
0.36 |
0.31 |
0.67 |
(0.36) |
— |
(0.36) |
11.64 |
6.05 |
7,913 |
0.55 |
0.96 |
| 3.15 |
| 53 |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
11.64 |
0.33 |
0.21 |
0.54 |
(0.33) |
(0.01) |
(0.34) |
11.84 |
4.69 |
12,785 |
0.55 |
0.91 |
| 2.83 |
| 33 |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
11.84 |
0.32 |
0.06 |
0.38 |
(0.32) |
— |
(0.32) |
11.90 |
3.20 |
14,481 |
0.55 |
0.85 |
| 2.65 |
| 21 |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
11.90 |
0.20 |
(1.15) |
(0.95) |
(0.20) |
(0.01) |
(0.21) |
10.74 |
(8.13) |
29,694 |
0.50 |
0.75 |
| 1.72 |
| 157 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(1)Total
returns shown exclude the effect of applicable sales loads and fees. If these
charges were included, the returns would be lower.
Touchstone
International Equity Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Period
Ended |
| Net
asset value at beginning of period |
Net
investment income (loss) |
| Net
realized and unrealized gains (losses) on investments |
Total
from investment operations |
Distributions
from net investment income |
| Distributions
from realized capital gains |
Total
distributions |
| Net
asset value at end of period |
Total
return(1) |
| Net
assets at end of period (000's) |
Ratio
of net expenses to average net assets |
| Ratio
of gross expenses to average net assets |
| Ratio
of net investment income (loss) to average net assets |
| Portfolio
turnover rate |
|
|
| |
Class
A |
|
|
|
|
|
|
|
|
|
|
|
| |
11/30/17 |
| $15.52 |
$0.17 |
| $4.05 |
$4.22 |
$(0.10) |
| $— |
$(0.10) |
| $19.64 |
27.39% |
| $129,139 |
1.37% |
| 1.39 |
% |
| 0.92 |
% |
| 37 |
% |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
(2)(3) |
19.64 |
0.36 |
(4) |
(0.94) |
(0.58) |
(0.21) |
| (0.70) |
(0.91) |
| 18.15 |
(3.23) |
(5) |
118,391 |
1.23 |
(6) |
1.30 |
|
(6) |
3.22 |
|
(4)(6) |
26 |
|
(5) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
| 18.15 |
0.20 |
(7) |
(0.57) |
(0.37) |
(0.26) |
| (1.87) |
(2.13) |
| 15.65 |
(0.78) |
| 106,870 |
1.30 |
| 1.37 |
|
| 1.26 |
|
| 43 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
| 15.65 |
0.08 |
(7) |
(0.98) |
(0.90) |
(0.19) |
| (0.63) |
(0.82) |
| 13.93 |
(6.28) |
| 77,744 |
1.29 |
| 1.40 |
|
| 0.57 |
|
| 45 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
| 13.93 |
0.09 |
(7) |
4.94 |
5.03 |
(0.08) |
| — |
(0.08) |
| 18.88 |
36.16 |
| 88,022 |
1.36 |
| 1.37 |
|
| 0.56 |
|
| 31 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
| 18.88 |
0.18 |
(7) |
(3.44) |
(3.26) |
(0.08) |
| (2.24) |
(2.32) |
| 13.30 |
(18.87) |
| 76,671 |
1.36 |
| 1.40 |
|
| 1.08 |
|
| 45 |
|
(8) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Class
C |
|
|
|
|
|
|
|
|
|
|
|
| |
11/30/17 |
| $14.66 |
$(0.06) |
| $3.86 |
$3.80 |
$— |
| $— |
$— |
| $18.46 |
25.92% |
| $6,924 |
2.45% |
| 2.49 |
% |
| (0.16) |
% |
| 37 |
% |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
(2)(3) |
18.46 |
0.26 |
(4) |
(0.90) |
(0.64) |
— |
| (0.70) |
(0.70) |
| 17.12 |
(3.72) |
(5) |
6,737 |
2.18 |
(6) |
2.25 |
|
(6) |
2.27 |
|
(4)(6) |
26 |
|
(5) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
| 17.12 |
0.03 |
(7) |
(0.54) |
(0.51) |
(0.10) |
| (1.87) |
(1.97) |
| 14.64 |
(1.87) |
| 3,783 |
2.34 |
| 2.42 |
|
| 0.21 |
|
| 43 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
| 14.64 |
(0.09) |
(7) |
(0.93) |
(1.02) |
— |
| (0.63) |
(0.63) |
| 12.99 |
(7.41) |
| 2,073 |
2.49 |
| 2.74 |
|
| (0.63) |
|
| 45 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
| 12.99 |
(0.04) |
(7) |
4.60 |
4.56 |
— |
(9) |
— |
— |
(9) |
17.55 |
35.14 |
| 2,115 |
2.15 |
| 2.90 |
|
| (0.24) |
|
| 31 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
| 17.55 |
0.07 |
(7) |
(3.18) |
(3.11) |
(0.02) |
| (2.24) |
(2.26) |
| 12.18 |
(19.45) |
| 2,399 |
1.99 |
| 2.71 |
|
| 0.45 |
|
| 45 |
|
(8) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Class
Y |
|
|
|
|
|
|
|
|
|
|
|
| |
11/30/17 |
(10) |
$15.40 |
$0.25 |
| $3.98 |
$4.23 |
$(0.18) |
| $— |
$(0.18) |
| $19.45 |
27.78% |
| $63,320 |
1.01% |
| 1.03 |
% |
| 1.28 |
% |
| 37 |
% |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
(2)(3) |
19.45 |
0.40 |
(4) |
(0.93) |
(0.53) |
(0.29) |
| (0.70) |
(0.99) |
| 17.93 |
(3.05) |
(5) |
57,438 |
0.99 |
(6) |
1.09 |
|
(6) |
3.47 |
|
(4)(6) |
26 |
|
(5) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
| 17.93 |
0.25 |
(7) |
(0.57) |
(0.32) |
(0.30) |
| (1.87) |
(2.17) |
| 15.44 |
(0.47) |
| 42,120 |
0.99 |
| 1.12 |
|
| 1.57 |
|
| 43 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
| 15.44 |
0.13 |
(7) |
(0.97) |
(0.84) |
(0.24) |
| (0.63) |
(0.87) |
| 13.73 |
(6.03) |
| 23,835 |
0.99 |
| 1.15 |
|
| 0.87 |
|
| 45 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
| 13.73 |
0.15 |
(7) |
4.88 |
5.03 |
(0.11) |
| — |
(0.11) |
| 18.65 |
36.71 |
| 27,903 |
0.99 |
| 1.19 |
|
| 0.93 |
|
| 31 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
| 18.65 |
0.23 |
(7) |
(3.40) |
(3.17) |
(0.13) |
| (2.24) |
(2.37) |
| 13.11 |
(18.61) |
| 20,430 |
0.99 |
| 1.19 |
|
| 1.45 |
|
| 45 |
|
(8) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Institutional
Class |
|
|
|
|
|
|
|
|
|
|
|
| |
11/30/17 |
(11) |
$18.91 |
$0.02 |
| $0.53 |
$0.55 |
$— |
| $— |
$— |
| $19.46 |
2.91% |
(5) |
$3 |
0.89% |
(6) |
1,921.18 |
% |
(6) |
1.40 |
% |
(6) |
37 |
% |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
(2)(3) |
19.46 |
0.56 |
(4) |
(1.09) |
(0.53) |
(0.31) |
| (0.70) |
(1.01) |
| 17.92 |
(3.02) |
(5) |
2,260 |
0.89 |
(6) |
1.63 |
|
(6) |
3.57 |
|
(4)(6) |
26 |
|
(5) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
| 17.92 |
0.26 |
(7) |
(0.57) |
(0.31) |
(0.32) |
| (1.87) |
(2.19) |
| 15.42 |
(0.39) |
| 2,592 |
0.89 |
| 1.38 |
|
| 1.67 |
|
| 43 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
| 15.42 |
0.14 |
(7) |
(0.95) |
(0.81) |
(0.27) |
| (0.63) |
(0.90) |
| 13.71 |
(5.89) |
| 14,205 |
0.89 |
| 1.12 |
|
| 0.97 |
|
| 45 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
| 13.71 |
0.16 |
(7) |
4.88 |
5.04 |
(0.12) |
| — |
(0.12) |
| 18.63 |
36.83 |
| 4,315 |
0.89 |
| 1.06 |
|
| 1.03 |
|
| 31 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
| 18.63 |
0.25 |
(7) |
(3.40) |
(3.15) |
(0.15) |
| (2.24) |
(2.39) |
| 13.09 |
(18.52) |
| 3,273 |
0.89 |
| 1.34 |
|
| 1.55 |
|
| 45 |
|
(8) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(1)Total
returns shown exclude the effect of applicable sales loads and fees. If these
charges were included, the returns would be lower.
(2)Represents
the seven months ended June 30, 2018.
(3)The
Fund changed its fiscal year end from November 30 to June 30.
(4)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% for Class
A, Class C, Class Y and Institutional Class shares and the net investment income
per share would have been lower by $0.17, $0.16, $0.17 and $0.16 for Class A,
Class C, Class Y and Institutional Class shares, respectively.
(5)Not
annualized.
(6)Annualized.
(7)The
net investment income per share was based on average shares outstanding for the
period.
(8)Portfolio
turnover excludes the purchases and sales of securities by the AIG International
Dividend Strategy Fund acquired on July 16, 2021. If these transactions were
included, portfolio turnover would have been higher.
(9)Less
than $0.005 per share.
(10)Effective
October 28, 2017, Class I shares of the Sentinel Balanced Fund (the “Predecessor
Fund”) were reorganized into Class Y shares of the Fund.
(11)Represents
the period from commencement of operations (October 30, 2017) through November
30, 2017.
Touchstone
International Growth Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Period
Ended |
| Net
asset value at beginning of period |
Net
investment income (loss) |
| Net
realized and unrealized gains (losses) on investments |
Total
from investment operations |
Distributions
from net investment income |
| Distributions
from realized capital gains |
Total
distributions |
| Net
asset value at end of period |
Total
return(1) |
Net
assets at end of period (000's) |
Ratio
of net expenses to average net assets |
Ratio
of gross expenses to average net assets |
Ratio
of net investment income (loss) to average net assets |
Portfolio
turnover rate |
|
|
| |
Class
A |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
(2) |
$11.61 |
$(0.01) |
| $1.75 |
$1.74 |
$— |
| $(0.24) |
$(0.24) |
| $13.11 |
15.00% |
$918 |
1.36% |
3.75 |
% |
(0.05) |
% |
109 |
% |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
(2) |
13.11 |
(0.04) |
(3) |
(0.47) |
(0.51) |
— |
| (1.49) |
(1.49) |
| 11.11 |
(1.78) |
760 |
1.24 |
4.36 |
| (0.31) |
| 103 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
(2) |
11.11 |
(0.03) |
(3) |
0.60 |
0.57 |
— |
| — |
— |
| 11.68 |
5.07 |
777 |
1.24 |
4.17 |
| (0.26) |
| 74 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
(2) |
11.68 |
(0.10) |
(3) |
3.77 |
3.67 |
— |
| — |
— |
| 15.35 |
31.51 |
2,216 |
1.24 |
2.31 |
| (0.63) |
| 116 |
|
(4) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
| 15.35 |
(0.04) |
| (4.81) |
(4.85) |
— |
| — |
— |
| 10.50 |
(31.60) |
1,172 |
1.24 |
2.62 |
| (0.27) |
| 49 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Class
C |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
(2) |
$11.57 |
$(0.05) |
| $1.69 |
$1.64 |
$— |
| $(0.24) |
$(0.24) |
| $12.97 |
14.14% |
$436 |
2.10% |
5.06 |
% |
(0.79) |
% |
109 |
% |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
(2) |
12.97 |
(0.12) |
(3) |
(0.48) |
(0.60) |
— |
| (1.49) |
(1.49) |
| 10.88 |
(2.52) |
185 |
1.99 |
6.35 |
| (1.06) |
| 103 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
(2) |
10.88 |
(0.11) |
(3) |
0.57 |
0.46 |
— |
| — |
— |
| 11.34 |
4.28 |
403 |
1.99 |
5.96 |
| (1.01) |
| 74 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
(2) |
11.34 |
(0.20) |
(3) |
3.67 |
3.47 |
— |
| — |
— |
| 14.81 |
30.55 |
1,316 |
1.99 |
3.43 |
| (1.38) |
| 116 |
|
(4) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
| 14.81 |
(0.14) |
| (4.61) |
(4.75) |
— |
| — |
— |
| 10.06 |
(32.07) |
787 |
1.99 |
3.62 |
| (1.02) |
| 49 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Class
Y |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
(2) |
$11.81 |
$0.01 |
| $1.79 |
$1.80 |
$— |
| $(0.24) |
$(0.24) |
| $13.37 |
15.32% |
$4,553 |
1.03% |
1.81 |
% |
0.28 |
% |
109 |
% |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
(2) |
13.37 |
(0.01) |
(3) |
(0.49) |
(0.50) |
(0.01) |
| (1.51) |
(1.52) |
| 11.35 |
(1.53) |
2,341 |
0.99 |
1.89 |
| (0.06) |
| 103 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
(2) |
11.35 |
— |
(3)(5) |
0.60 |
0.60 |
— |
| — |
— |
| 11.95 |
5.28 |
867 |
0.99 |
2.50 |
| (0.01) |
| 74 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
(2) |
11.95 |
(0.06) |
(3) |
3.88 |
3.82 |
— |
| — |
— |
| 15.77 |
31.88 |
74,507 |
0.99 |
1.25 |
| (0.38) |
| 116 |
|
(4) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
| 15.77 |
— |
(5) |
(4.95) |
(4.95) |
— |
| — |
— |
| 10.82 |
(31.39) |
47,845 |
0.99 |
1.31 |
| (0.02) |
| 49 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Institutional
Class |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
(2) |
$11.88 |
$0.04 |
| $1.78 |
$1.82 |
$— |
| $(0.24) |
$(0.24) |
| $13.46 |
15.42% |
$28,159 |
1.02% |
1.31 |
% |
0.28 |
% |
109 |
% |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
(2) |
13.46 |
0.01 |
(3) |
(0.50) |
(0.49) |
(0.02) |
| (1.52) |
(1.54) |
| 11.43 |
(1.46) |
31,435 |
0.89 |
1.30 |
| 0.04 |
| 103 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
(2) |
11.43 |
0.01 |
(3) |
0.61 |
0.62 |
— |
(5) |
— |
— |
(5) |
12.05 |
5.46 |
29,285 |
0.89 |
1.35 |
| 0.09 |
| 74 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
(2) |
12.05 |
(0.05) |
(3) |
3.91 |
3.86 |
(0.02) |
| — |
(0.02) |
| 15.89 |
32.00 |
23,334 |
0.89 |
1.20 |
| (0.28) |
| 116 |
|
(4) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
| 15.89 |
0.03 |
| (5.01) |
(4.98) |
— |
(5) |
— |
— |
(5) |
10.91 |
(31.34) |
11,224 |
0.89 |
1.32 |
| 0.08 |
| 49 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(1)Total
returns shown exclude the effect of applicable sales loads and fees. If these
charges were included, the returns would be lower.
(2)During
the year ended June 30, 2021, the Fund effected the following stock split
effective the close of business September 11, 2020: 1.9160 for 1 for Class A
shares, 1.9095 for 1 for Class C shares, 1.8839 for 1 for Class Y shares and
1.8777 for 1 for Institutional Class shares. All historical per share
information has been retroactively adjusted to reflect this stock
split.
(3)The
net investment income (loss) per share was based on average shares outstanding
for the period.
(4)Portfolio
turnover excludes the purchases and sales of securities of the International
Small Cap Fund acquired on September 11, 2020. If these transactions were
included, portfolio turnover would have been higher.
(5)Less
than $0.005 per share.
Touchstone
Large Cap Focused Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Period
Ended |
| Net
asset value at beginning of period |
Net
investment income (loss) |
| Net
realized and unrealized gains (losses) on investments |
Total
from investment operations |
Distributions
from net investment income |
Distributions
from realized capital gains |
Total
distributions |
Net
asset value at end of period |
Total
return(1) |
| Net
assets at end of period (000's) |
Ratio
of net expenses to average net assets(2) |
|
Ratio
of gross expenses to average net assets(3) |
| Ratio
of net investment income (loss) to average net assets |
| Portfolio
turnover rate |
|
|
| |
Class
A |
|
|
|
|
|
|
|
|
|
|
|
| |
11/30/17 |
| $42.28 |
$0.45 |
| $8.99 |
$9.44 |
$(0.51) |
$(2.46) |
$(2.97) |
$48.75 |
23.67% |
| $1,321,506 |
1.02% |
| 1.02 |
% |
| 0.98 |
% |
| 12 |
% |
(4) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
(5)(6) |
48.75 |
0.23 |
| 1.85 |
2.08 |
(0.07) |
(6.96) |
(7.03) |
43.80 |
4.74 |
(7) |
1,218,721 |
0.97 |
(8) |
1.09 |
|
(8) |
0.88 |
|
(8) |
9 |
|
(4)(7) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
| 43.80 |
0.38 |
(9) |
3.72 |
4.10 |
(0.27) |
(4.26) |
(4.53) |
43.37 |
10.51 |
| 1,170,490 |
0.97 |
| 1.09 |
|
| 0.88 |
|
| 15 |
|
(4) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
| 43.37 |
0.27 |
| 3.78 |
4.05 |
(0.27) |
(4.85) |
(5.12) |
42.30 |
9.54 |
| 1,120,305 |
1.01 |
| 1.10 |
|
| 0.66 |
|
| 29 |
|
(4) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
| 42.30 |
0.08 |
(9) |
19.10 |
19.18 |
(0.09) |
(2.71) |
(2.80) |
58.68 |
46.68 |
| 1,541,127 |
1.01 |
| 1.05 |
|
| 0.15 |
|
| 16 |
|
(4) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
| 58.68 |
0.04 |
| (7.56) |
(7.52) |
(0.05) |
(3.91) |
(3.96) |
47.20 |
(14.07) |
| 1,736,900 |
0.99 |
| 0.99 |
|
| 0.13 |
|
| 27 |
|
(4)(10) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Class
C |
|
|
|
|
|
|
|
|
|
|
|
| |
11/30/17 |
| $40.44 |
$— |
(11) |
$8.67 |
$8.67 |
$(0.17) |
$(2.46) |
$(2.63) |
$46.48 |
22.69% |
| $74,122 |
1.82% |
| 1.82 |
% |
| 0.18 |
% |
| 12 |
% |
(4) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
(5)(6) |
46.48 |
0.03 |
| 1.74 |
1.77 |
— |
(6.96) |
(6.96) |
41.29 |
4.24 |
(7) |
67,599 |
1.78 |
(8) |
1.89 |
|
(8) |
0.07 |
|
(8) |
9 |
|
(4)(7) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
| 41.29 |
0.03 |
(9) |
3.50 |
3.53 |
— |
(4.26) |
(4.26) |
40.56 |
9.61 |
| 47,838 |
1.79 |
| 1.90 |
|
| 0.07 |
|
| 15 |
|
(4) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
| 40.56 |
(0.19) |
| 3.64 |
3.45 |
— |
(4.85) |
(4.85) |
39.16 |
8.69 |
| 37,450 |
1.82 |
| 1.94 |
|
| (0.15) |
|
| 29 |
|
(4) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
| 39.16 |
(0.30) |
(9) |
17.58 |
17.28 |
— |
(2.71) |
(2.71) |
53.73 |
45.49 |
| 41,645 |
1.80 |
| 1.88 |
|
| (0.64) |
|
| 16 |
|
(4) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
| 53.73 |
(0.02) |
| (7.18) |
(7.20) |
— |
(3.91) |
(3.91) |
42.62 |
(14.78) |
| 49,115 |
1.80 |
| 1.80 |
|
| (0.68) |
|
| 27 |
|
(4)(10) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Class
Y |
|
|
|
|
|
|
|
|
|
|
|
| |
11/30/17 |
(12) |
$42.26 |
$0.56 |
| $8.99 |
$9.55 |
$(0.63) |
$(2.46) |
$(3.09) |
$48.72 |
24.03% |
| $438,732 |
0.74% |
| 0.75 |
% |
| 1.26 |
% |
| 12 |
% |
(4) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
(5)(6) |
48.72 |
0.29 |
| 1.84 |
2.13 |
(0.21) |
(6.96) |
(7.17) |
43.68 |
4.85 |
(7) |
394,077 |
0.74 |
(8) |
0.90 |
|
(8) |
1.11 |
|
(8) |
9 |
|
(4)(7) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
| 43.68 |
0.48 |
(9) |
3.71 |
4.19 |
(0.37) |
(4.26) |
(4.63) |
43.24 |
10.81 |
| 413,137 |
0.73 |
| 0.89 |
|
| 1.13 |
|
| 15 |
|
(4) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
| 43.24 |
0.40 |
| 3.76 |
4.16 |
(0.37) |
(4.85) |
(5.22) |
42.18 |
9.84 |
| 352,103 |
0.75 |
| 0.91 |
|
| 0.92 |
|
| 29 |
|
(4) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
| 42.18 |
0.22 |
(9) |
19.05 |
19.27 |
(0.16) |
(2.71) |
(2.87) |
58.58 |
47.07 |
| 575,053 |
0.73 |
| 0.86 |
|
| 0.43 |
|
| 16 |
|
(4) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
| 58.58 |
0.20 |
| (7.57) |
(7.37) |
(0.16) |
(3.91) |
(4.07) |
47.14 |
(13.86) |
| 493,825 |
0.73 |
| 0.78 |
|
| 0.39 |
|
| 27 |
|
(4)(10) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Institutional
Class |
|
|
|
|
|
|
|
|
|
|
|
| |
11/30/17 |
(13) |
$42.32 |
$0.61 |
| $9.01 |
$9.62 |
$(0.67) |
$(2.46) |
$(3.13) |
$48.81 |
24.14% |
| $44,738 |
0.68% |
| 0.70 |
% |
| 1.32 |
% |
| 12 |
% |
(4) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
(5)(6) |
48.81 |
0.34 |
| 1.80 |
2.14 |
(0.24) |
(6.96) |
(7.20) |
43.75 |
4.93 |
(7) |
46,683 |
0.67 |
(8) |
0.88 |
|
(8) |
1.18 |
|
(8) |
9 |
|
(4)(7) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
| 43.75 |
0.51 |
(9) |
3.71 |
4.22 |
(0.40) |
(4.26) |
(4.66) |
43.31 |
10.87 |
| 100,473 |
0.66 |
| 0.85 |
|
| 1.20 |
|
| 15 |
|
(4) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
| 43.31 |
0.35 |
| 3.83 |
4.18 |
(0.40) |
(4.85) |
(5.25) |
42.24 |
9.87 |
| 127,963 |
0.71 |
| 0.88 |
|
| 0.96 |
|
| 29 |
|
(4) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
| 42.24 |
0.23 |
(9) |
19.10 |
19.33 |
(0.17) |
(2.71) |
(2.88) |
58.69 |
47.14 |
| 207,274 |
0.70 |
| 0.81 |
|
| 0.46 |
|
| 16 |
|
(4) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
| 58.69 |
0.26 |
| (7.63) |
(7.37) |
(0.18) |
(3.91) |
(4.09) |
47.23 |
(13.85) |
| 217,531 |
0.70 |
| 0.73 |
|
| 0.42 |
|
| 27 |
|
(4)(10) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Class
R6 |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
(14) |
$61.99 |
$0.22 |
| $(10.89) |
$(10.67) |
$(0.16) |
$(3.91) |
$(4.07) |
$47.25 |
(18.43)% |
(7) |
$804 |
0.66% |
(8) |
3.02% |
(8) |
0.47% |
(8) |
27 |
% |
(4)(10) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(1)Total
returns shown exclude the effect of applicable sales loads and fees. If these
charges were included, the returns would be lower.
(2)The
ratios shown include liquidity provider expenses. The ratio of net expenses to
average net assets excluding liquidity provider expenses for Class A shares was
0.98%, 1.00%, 0.98%, 0.96%, 0.95% and 1.02%; for Class C shares was 1.79%,
1.79%, 1.79%, 1.78%, 1.76% and 1.82%; for Class Y shares was 0.72%, 0.72%,
0.72%, 0.72%, 0.72% and 0.74%; for Institutional Class shares was 0.69%, 0.69%,
0.68%, 0.65%, 0.65% and 0.68% for the years ended June 30, 2022, 2021, 2020 and
2019, the seven months ended June 30, 2018 and the year ended November 30, 2017,
respectively; and for Class R6 shares was 0.65% for the period ended June 30,
2022.
(3)The
ratios shown include liquidity provider expenses. The ratio of gross expenses to
average net assets excluding liquidity provider expenses for Class A shares was
0.98%, 1.04%, 1.07%, 1.08%, 1.07% and 1.02%; for Class C shares was 1.79%,
1.87%, 1.91%, 1.89%, 1.87% and 1.82%; for Class Y shares was 0.77%, 0.85%,
0.88%, 0.88%, 0.88% and 0.75%; for Institutional Class shares was 0.72%, 0.80%,
0.85%, 0.84%, 0.86% and 0.70% for the years ended June 30, 2022, 2021, 2020 and
2019, the seven months ended June 30, 2018 and the year ended November 30, 2017,
respectively; and for Class R6 shares was 3.01% for the period ended June 30,
2022.
(4)Portfolio
turnover excludes securities delivered from processing
redemptions-in-kind.
(5)Represents
the seven months ended June 30, 2018.
(6)The
Fund changed its fiscal year end from November 30 to June 30.
(7)Not
annualized.
(8)Annualized.
(9)The
net investment income (loss) per share was based on average shares outstanding
for the period.
(10)Portfolio
turnover excludes the purchases and sales of securities of the AIG Focused Alpha
Large-Cap Fund acquired on July 16, 2021. If these transactions were included,
portfolio turnover would have been higher.
(11)Less
than $0.005 per share.
(12)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.
(13)Effective
October 30, 2017, Class R6 shares of the Predecessor Fund were reorganized into
Institutional Class shares of the Fund.
(14)Represents
the period from commencement of operations (October 28, 2021) through June 30,
2022 for Class R6.
Touchstone
Large Cap Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Period
Ended |
Net
asset value at beginning of period |
Net
investment income (loss) |
| Net
realized and unrealized gains (losses) on investments |
Total
from investment operations |
Distributions
from net investment income |
Distributions
from realized capital gains |
Total
distributions |
Net
asset value at end of period |
Total
return(1) |
Net
assets at end of period (000's) |
Ratio
of net expenses to average net assets(2) |
Ratio
of gross expenses to average net assets(3) |
Ratio
of net investment income (loss) to average net assets |
| Portfolio
turnover rate |
|
|
| |
Class
A |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
$11.96 |
$0.09 |
| $1.27 |
$1.36 |
$(0.05) |
$— |
$(0.05) |
$13.27 |
11.35% |
$2,975 |
1.12% |
1.50 |
% |
0.48 |
% |
| 10 |
% |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
13.27 |
0.09 |
(4) |
0.83 |
0.92 |
(0.08) |
— |
(0.08) |
14.11 |
7.04 |
4,067 |
1.11 |
1.67 |
| 0.63 |
|
| 19 |
|
(5) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
14.11 |
0.15 |
| (0.24) |
(0.09) |
(0.11) |
(0.87) |
(0.98) |
13.04 |
(1.18) |
2,989 |
1.03 |
1.91 |
| 1.03 |
|
| 20 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
13.04 |
0.11 |
| 4.83 |
4.94 |
(0.12) |
— |
(0.12) |
17.86 |
38.06 |
4,278 |
1.04 |
1.53 |
| 0.75 |
|
| 15 |
|
(5) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
17.86 |
0.08 |
| (2.03) |
(1.95) |
(0.12) |
(0.40) |
(0.52) |
15.39 |
(11.44) |
4,510 |
1.05 |
1.48 |
| 0.51 |
|
| 12 |
|
(5) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Class
C |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
$11.80 |
$(0.04) |
| $1.28 |
$1.24 |
$— |
$— |
$— |
$13.04 |
10.51% |
$7,849 |
1.87% |
2.12 |
% |
(0.27) |
% |
| 10 |
% |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
13.04 |
(0.02) |
(4) |
0.83 |
0.81 |
— |
— |
— |
13.85 |
6.21 |
7,372 |
1.86 |
2.13 |
| (0.12) |
|
| 19 |
|
(5) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
13.85 |
0.01 |
| (0.20) |
(0.19) |
— |
(0.87) |
(0.87) |
12.79 |
(1.89) |
5,376 |
1.78 |
2.09 |
| 0.27 |
|
| 20 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
12.79 |
(0.10) |
| 4.84 |
4.74 |
— |
— |
— |
17.53 |
37.06 |
4,328 |
1.79 |
2.03 |
| — |
|
(6) |
15 |
|
(5) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
17.53 |
(0.10) |
| (1.96) |
(2.06) |
— |
(0.40) |
(0.40) |
15.07 |
(12.15) |
2,995 |
1.80 |
2.12 |
| (0.24) |
|
| 12 |
|
(5) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Class
Y |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
$12.00 |
$0.10 |
| $1.30 |
$1.40 |
$(0.09) |
$— |
$(0.09) |
$13.31 |
11.62% |
$231,984 |
0.87% |
0.99 |
% |
0.73 |
% |
| 10 |
% |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
13.31 |
0.12 |
(4) |
0.84 |
0.96 |
(0.13) |
— |
(0.13) |
14.14 |
7.31 |
213,650 |
0.86 |
0.99 |
| 0.88 |
|
| 19 |
|
(5) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
14.14 |
0.17 |
| (0.22) |
(0.05) |
(0.15) |
(0.87) |
(1.02) |
13.07 |
(0.93) |
206,798 |
0.78 |
0.90 |
| 1.28 |
|
| 20 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
13.07 |
0.16 |
| 4.83 |
4.99 |
(0.18) |
— |
(0.18) |
17.88 |
38.39 |
270,305 |
0.79 |
0.88 |
| 1.00 |
|
| 15 |
|
(5) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
17.88 |
0.15 |
| (2.05) |
(1.90) |
(0.16) |
(0.40) |
(0.56) |
15.42 |
(11.20) |
202,913 |
0.80 |
0.88 |
| 0.76 |
|
| 12 |
|
(5) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Institutional
Class |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
$12.02 |
$0.10 |
| $1.31 |
$1.41 |
$(0.10) |
$— |
$(0.10) |
$13.33 |
11.70% |
$124,759 |
0.77% |
0.91 |
% |
0.83 |
% |
| 10 |
% |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
13.33 |
0.14 |
(4) |
0.83 |
0.97 |
(0.14) |
— |
(0.14) |
14.16 |
7.43 |
59,211 |
0.77 |
0.92 |
| 0.98 |
|
| 19 |
|
(5) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
14.16 |
0.15 |
| (0.19) |
(0.04) |
(0.16) |
(0.87) |
(1.03) |
13.09 |
(0.83) |
60,402 |
0.68 |
0.84 |
| 1.38 |
|
| 20 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
13.09 |
0.16 |
| 4.86 |
5.02 |
(0.20) |
— |
(0.20) |
17.91 |
38.59 |
90,358 |
0.69 |
0.82 |
| 1.10 |
|
| 15 |
|
(5) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
17.91 |
0.18 |
| (2.08) |
(1.90) |
(0.17) |
(0.40) |
(0.57) |
15.44 |
(11.15) |
67,679 |
0.70 |
0.82 |
| 0.86 |
|
| 12 |
|
(5) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(1)Total
returns shown exclude the effect of applicable sales loads and fees. If these
charges were included, the returns would be lower.
(2)The
ratios shown include liquidity provider expenses. The ratio of net expenses to
average net assets excluding liquidity provider expenses for Class A shares was
1.03% and 1.03%; for Class C shares was 1.78% and 1.78%; for Class Y shares was
0.78% and 0.78%; and for Institutional Class shares was 0.68% and 0.68% for the
years ended June 30, 2022 and 2021, respectively.
(3)The
ratios shown include liquidity provider expenses. The ratio of gross expenses to
average net assets excluding liquidity provider expenses for Class A shares was
1.46% and 1.52%; for Class C shares was 2.10% and 2.02%; for Class Y shares was
0.86% and 0.87%; and for Institutional Class shares was 0.80% and 0.81% for the
years ended June 30, 2022 and 2021, respectively.
(4)The
net investment income per share was based on average shares outstanding for the
period.
(5)Portfolio
turnover excludes securities delivered from processing
redemptions-in-kind.
(6)Less
than 0.005%.
Touchstone
Large Company Growth Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Period
Ended |
Net
asset value at beginning of period |
Net
investment loss |
Net
realized and unrealized gains (losses) on investments |
Total
from investment operations |
Distributions
from realized capital gains |
Total
distributions |
Net
asset value at end of period |
Total
return(1) |
Net
assets at end of period (000's) |
Ratio
of net expenses to average net assets(2) |
Ratio
of gross expenses to average net assets(3) |
Ratio
of net investment income (loss) to average net assets |
Portfolio
turnover rate |
|
|
| |
Class
A |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
$35.52 |
$(0.24) |
$7.19 |
$6.95 |
$(1.14) |
$(1.14) |
$41.33 |
19.75% |
$3,417 |
1.23% |
1.67 |
% |
(0.63) |
% |
44 |
% |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
41.33 |
(0.56) |
4.42 |
3.86 |
(2.69) |
(2.69) |
42.50 |
10.39 |
1,425 |
1.23 |
2.01 |
| (0.59) |
| 41 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
42.50 |
(0.08) |
8.19 |
8.11 |
(3.15) |
(3.15) |
47.46 |
20.07 |
2,112 |
1.07 |
2.28 |
| 0.60 |
| 30 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
47.46 |
(0.15) |
16.56 |
16.41 |
(6.61) |
(6.61) |
57.26 |
37.33 |
3,617 |
1.06 |
1.59 |
| (0.71) |
| 36 |
|
(4) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
57.26 |
(0.18) |
(10.40) |
(10.58) |
(10.52) |
(10.52) |
36.16 |
(23.29) |
3,290 |
1.07 |
1.58 |
| (0.61) |
| 41 |
|
(4) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Class
C |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
$35.29 |
$(0.30) |
$6.89 |
$6.59 |
$(1.14) |
$(1.14) |
$40.74 |
18.88% |
$236 |
1.98% |
8.12 |
% |
(1.38) |
% |
44 |
% |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
40.74 |
(0.40) |
3.87 |
3.47 |
(2.69) |
(2.69) |
41.52 |
9.55 |
396 |
1.98 |
4.38 |
| (1.34) |
| 41 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
41.52 |
(0.31) |
7.87 |
7.56 |
(3.15) |
(3.15) |
45.93 |
19.19 |
592 |
1.82 |
4.64 |
| (1.35) |
| 30 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
45.93 |
(1.42) |
16.81 |
15.39 |
(6.61) |
(6.61) |
54.71 |
36.28 |
473 |
1.81 |
3.39 |
| (1.46) |
| 36 |
|
(4) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
54.71 |
(1.24) |
(9.03) |
(10.27) |
(10.52) |
(10.52) |
33.92 |
(23.87) |
206 |
1.82 |
4.24 |
| (1.36) |
| 41 |
|
(4) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Class
Y |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
$35.60 |
$(0.13) |
$7.20 |
$7.07 |
$(1.14) |
$(1.14) |
$41.53 |
20.02% |
$15,961 |
0.98% |
1.12 |
% |
(0.38) |
% |
44 |
% |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
41.53 |
(0.12) |
4.10 |
3.98 |
(2.69) |
(2.69) |
42.82 |
10.66 |
19,580 |
0.98 |
1.16 |
| (0.34) |
| 41 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
42.82 |
(0.12) |
8.42 |
8.30 |
(3.15) |
(3.15) |
47.97 |
20.38 |
24,062 |
0.82 |
1.04 |
| (0.35) |
| 30 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
47.97 |
(0.26) |
17.00 |
16.74 |
(6.61) |
(6.61) |
58.10 |
37.64 |
28,952 |
0.81 |
0.96 |
| (0.46) |
| 36 |
|
(4) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
58.10 |
(0.18) |
(10.49) |
(10.67) |
(10.52) |
(10.52) |
36.91 |
(23.09) |
13,917 |
0.82 |
0.97 |
| (0.36) |
| 41 |
|
(4) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Institutional
Class |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
$35.63 |
$(0.11) |
$7.23 |
$7.12 |
$(1.14) |
$(1.14) |
$41.61 |
20.17% |
$224,379 |
0.88% |
0.98 |
% |
(0.28) |
% |
44 |
% |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
41.61 |
(0.10) |
4.13 |
4.03 |
(2.69) |
(2.69) |
42.95 |
10.74 |
204,391 |
0.88 |
0.99 |
| (0.24) |
| 41 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
42.95 |
(0.12) |
8.50 |
8.38 |
(3.15) |
(3.15) |
48.18 |
20.51 |
199,601 |
0.73 |
0.86 |
| (0.25) |
| 30 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
48.18 |
(0.21) |
17.10 |
16.89 |
(6.61) |
(6.61) |
58.46 |
37.80 |
229,690 |
0.71 |
0.85 |
| (0.36) |
| 36 |
|
(4) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
58.46 |
(0.14) |
(10.58) |
(10.72) |
(10.52) |
(10.52) |
37.22 |
(23.03) |
145,441 |
0.72 |
0.84 |
| (0.26) |
| 41 |
|
(4) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(1)Total
returns shown exclude the effect of applicable sales loads and fees. If these
charges were included, the returns would be lower.
(2)The
ratios shown include liquidity provider expenses. The ratio of net expenses to
average net assets excluding liquidity provider expenses for Class A shares was
1.04% and 1.04%; for Class C shares was 1.79% and 1.79%; for Class Y shares was
0.79% and 0.79%; and for Institutional Class shares was 0.69% and 0.69% for the
years ended June 30, 2022 and 2021, respectively.
(3)The
ratios shown include liquidity provider expenses. The ratio of gross expenses to
average net assets excluding liquidity provider expenses for Class A shares was
1.55% and 1.57%; for Class C shares was 4.21% and 3.37%; for Class Y shares was
0.94% and 0.94%; and for Institutional Class shares was 0.81% and 0.83% for the
years ended June 30, 2022 and 2021, respectively.
(4)Portfolio
turnover excludes securities delivered from processing
redemptions-in-kind.
Touchstone
Small Company Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Period
Ended |
| Net
asset value at beginning of period |
Net
investment income (loss) |
| Net
realized and unrealized gains (losses) on investments |
Total
from investment operations |
Distributions
from net investment income |
| Distributions
from realized capital gains |
Total
distributions |
Net
asset value at end of period |
Total
return(1) |
| Net
assets at end of period (000's) |
Ratio
of net expenses to average net assets(2) |
|
Ratio
of gross expenses to average net assets(3) |
| Ratio
of net investment income (loss) to average net assets |
| Portfolio
turnover rate |
|
|
| |
Class
A |
|
|
|
|
|
|
|
|
|
|
|
| |
11/30/17 |
| $5.19 |
$(0.02) |
| $0.89 |
$0.87 |
$— |
| $(0.42) |
$(0.42) |
$5.64 |
17.95% |
| $677,055 |
1.18% |
| 1.18 |
% |
| (0.49) |
% |
| 82 |
% |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
(4)(5) |
5.64 |
(0.01) |
| 0.37 |
0.36 |
— |
| (0.47) |
(0.47) |
5.53 |
6.89 |
(6) |
661,866 |
1.10 |
(7) |
1.18 |
|
(7) |
(0.26) |
|
(7) |
30 |
|
(6) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
| 5.53 |
(0.01) |
| (0.07) |
(0.08) |
— |
| (0.62) |
(0.62) |
4.83 |
(0.73) |
| 589,664 |
1.12 |
| 1.20 |
|
| (0.26) |
|
| 94 |
|
(8)(9) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
| 4.83 |
(0.02) |
| (0.47) |
(0.49) |
— |
| (0.28) |
(0.28) |
4.06 |
(10.82) |
| 420,822 |
1.15 |
| 1.24 |
|
| (0.32) |
|
| 81 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
| 4.06 |
(0.03) |
| 2.65 |
2.62 |
— |
| (0.01) |
(0.01) |
6.67 |
64.45 |
| 608,513 |
1.20 |
| 1.20 |
|
| (0.45) |
|
| 80 |
|
(8) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
| 6.67 |
(0.02) |
(10) |
(0.95) |
(0.97) |
— |
| (1.14) |
(1.14) |
4.56 |
(17.95) |
| 451,081 |
1.17 |
| 1.17 |
|
| (0.31) |
|
| 70 |
|
(8) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Class
C |
|
|
|
|
|
|
|
|
|
|
|
| |
11/30/17 |
^ |
$8.94 |
$(0.26) |
| $1.66 |
$1.40 |
$— |
| $(1.11) |
$(1.11) |
$9.23 |
17.36% |
| $104,051 |
1.92% |
| 1.92 |
% |
| (1.23) |
% |
| 82 |
% |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
^(4)(5) |
9.23 |
(0.05) |
| 0.58 |
0.53 |
— |
| (1.24) |
(1.24) |
8.52 |
6.51 |
(6) |
97,136 |
1.85 |
(7) |
1.93 |
|
(7) |
(1.02) |
|
(7) |
30 |
|
(6) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
^ |
8.52 |
(0.13) |
| (0.10) |
(0.23) |
— |
| (1.64) |
(1.64) |
6.65 |
(1.65) |
| 39,390 |
1.88 |
| 1.96 |
|
| (1.01) |
|
| 94 |
|
(8)(9) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
^ |
6.65 |
(0.13) |
| (0.53) |
(0.66) |
— |
| (0.74) |
(0.74) |
5.25 |
(11.22) |
| 21,204 |
1.95 |
| 2.07 |
|
| (1.12) |
|
| 81 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
^ |
5.25 |
(0.11) |
| 3.41 |
3.30 |
— |
| (0.03) |
(0.03) |
8.52 |
62.65 |
| 26,123 |
1.97 |
| 2.05 |
|
| (1.22) |
|
| 80 |
|
(8) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
^ |
8.52 |
(0.08) |
(10) |
(0.89) |
(0.97) |
— |
| (3.01) |
(3.01) |
4.54 |
(18.70) |
| 17,385 |
1.97 |
| 2.02 |
|
| (1.11) |
|
| 70 |
|
(8) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Class
Y |
|
|
|
|
|
|
|
|
|
|
|
| |
11/30/17 |
(11) |
$5.56 |
$(0.06) |
| $1.02 |
$0.96 |
$— |
| $(0.42) |
$(0.42) |
$6.10 |
18.41% |
| $388,404 |
0.85% |
| 0.85 |
% |
| (0.16) |
% |
| 82 |
% |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
(4)(5) |
6.10 |
— |
(12) |
0.41 |
0.41 |
— |
| (0.47) |
(0.47) |
6.04 |
7.21 |
(6) |
383,050 |
0.84 |
(7) |
0.92 |
|
(7) |
(0.01) |
|
(7) |
30 |
|
(6) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
| 6.04 |
— |
(12) |
(0.09) |
(0.09) |
— |
(12) |
(0.62) |
(0.62) |
5.33 |
(0.79) |
| 326,021 |
0.87 |
| 0.95 |
|
| — |
|
(12) |
94 |
|
(8)(9) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
| 5.33 |
— |
(12) |
(0.52) |
(0.52) |
— |
| (0.28) |
(0.28) |
4.53 |
(10.35) |
| 189,336 |
0.89 |
| 0.98 |
|
| (0.06) |
|
| 81 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
| 4.53 |
(0.01) |
| 2.94 |
2.93 |
— |
(12) |
(0.01) |
(0.01) |
7.45 |
64.61 |
| 282,428 |
0.91 |
| 0.99 |
|
| (0.16) |
|
| 80 |
|
(8) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
| 7.45 |
— |
(10) |
(1.10) |
(1.10) |
— |
| (1.14) |
(1.14) |
5.21 |
(17.81) |
| 222,141 |
0.91 |
| 0.97 |
|
| (0.05) |
|
| 70 |
|
(8) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Institutional
Class |
|
|
|
|
|
|
|
|
|
|
|
| |
11/30/17 |
(13) |
$5.80 |
$— |
(12) |
$0.30 |
$0.30 |
$— |
| $— |
$— |
$6.10 |
5.17% |
(6) |
$3 |
0.79% |
(7) |
2,069.15 |
% |
(7) |
(0.70) |
% |
(7) |
82 |
% |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
(4)(5) |
6.10 |
— |
(12) |
0.41 |
0.41 |
— |
| (0.47) |
(0.47) |
6.04 |
7.21 |
(6) |
8 |
0.79 |
(7) |
275.86 |
|
(7) |
0.05 |
|
(7) |
30 |
|
(6) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
| 6.04 |
— |
(12) |
(0.10) |
(0.10) |
— |
(12) |
(0.62) |
(0.62) |
5.32 |
(0.91) |
| 2,216 |
0.79 |
| 2.52 |
|
| 0.08 |
|
| 94 |
|
(8)(9) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
| 5.32 |
— |
(12) |
(0.52) |
(0.52) |
— |
| (0.28) |
(0.28) |
4.52 |
(10.37) |
| 11,269 |
0.79 |
| 1.13 |
|
| 0.05 |
|
| 81 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
| 4.52 |
— |
(12) |
2.93 |
2.93 |
— |
(12) |
(0.01) |
(0.01) |
7.44 |
64.75 |
| 18,770 |
0.81 |
| 0.99 |
|
| (0.06) |
|
| 80 |
|
(8) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
| 7.44 |
— |
(10) |
(1.09) |
(1.09) |
— |
| (1.14) |
(1.14) |
5.21 |
(17.70) |
| 21,299 |
0.81 |
| 0.96 |
|
| 0.05 |
|
| 70 |
|
(8) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Class
R6 |
|
|
|
|
|
|
|
|
|
|
|
| |
11/30/17 |
| $5.24 |
$(0.03) |
| $0.94 |
$0.91 |
$— |
| $(0.42) |
$(0.42) |
$5.73 |
18.58% |
| $67,052 |
0.75% |
| 0.77 |
% |
| (0.07) |
% |
| 82 |
% |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
(4)(5) |
5.73 |
— |
(12) |
0.39 |
0.39 |
— |
| (0.47) |
(0.47) |
5.65 |
7.33 |
(6) |
76,246 |
0.73 |
(7) |
0.84 |
|
(7) |
0.10 |
|
(7) |
30 |
|
(6) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
| 5.65 |
0.01 |
| (0.08) |
(0.07) |
(0.01) |
| (0.62) |
(0.63) |
4.95 |
(0.59) |
| 137,585 |
0.73 |
| 0.84 |
|
| 0.14 |
|
| 94 |
|
(8)(9) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
| 4.95 |
0.01 |
| (0.49) |
(0.48) |
— |
| (0.28) |
(0.28) |
4.19 |
(10.35) |
| 64,567 |
0.76 |
| 0.88 |
|
| 0.07 |
|
| 81 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
| 4.19 |
— |
(12) |
2.73 |
2.73 |
— |
(12) |
(0.01) |
(0.01) |
6.91 |
65.08 |
| 63,766 |
0.81 |
| 0.89 |
|
| (0.06) |
|
| 80 |
|
(8) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
| 6.91 |
— |
(10)(12) |
(1.00) |
(1.00) |
— |
| (1.14) |
(1.14) |
4.77 |
(17.73) |
| 53,500 |
0.81 |
| 0.87 |
|
| 0.05 |
|
| 70 |
|
(8) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
^ Updated
to reflect the effect of a 1 for 0.379048 reverse stock split for Class C shares
on October 14, 2022. All historical per share information has been retroactively
adjusted to reflect this reverse stock split.
(1)Total
returns shown exclude the effect of applicable sales loads and fees. If these
charges were included, the returns would be lower.
(2)The
ratios shown include liquidity provider expenses. The ratio of net expenses to
average net assets excluding liquidity provider expenses for Class A shares was
1.15% and 1.18%; for Class C shares was 1.95% and 1.95%; for Class Y shares was
0.89% and 0.89%; for Institutional Class shares was 0.79% and 0.79%; and for
Class R6 shares was 0.79% and 0.79% for the years ended June 30, 2022 and 2021,
respectively.
(3)The
ratios shown include liquidity provider expenses. The ratio of gross expenses to
average net assets excluding liquidity provider expenses for Class A shares was
1.15% and 1.18%; for Class C shares was 2.00% and 2.03%; for Class Y shares was
0.95% and 0.97%; for Institutional Class shares was 0.94% and 0.97%; and for
Class R6 shares was 0.85% and 0.87% for the years ended June 30, 2022 and 2021,
respectively.
(4)Represents
the seven months ended June 30, 2018.
(5)The
Fund changed its fiscal year end from November 30 to June 30.
(6)Not
annualized.
(7)Annualized.
(8)Portfolio
turnover excludes securities delivered from processing
redemptions-in-kind.
(9)Portfolio
turnover excludes the purchases and sales of securities by the Touchstone Small
Cap Growth Fund acquired on September 21, 2018. If these transactions were
included, portfolio turnover would have been higher.
(10)The
net investment income per share was based on average shares outstanding for the
period.
(11)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.
(12)Less
than $0.005 per share or 0.005%.
(13)Represents
the period from commencement of operations (October 30, 2017) through November
30, 2017.
Touchstone
Value Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Period
Ended |
| Net
asset value at beginning of period |
Net
investment income |
Net
realized and unrealized gains (losses) on investments |
Total
from investment operations |
Distributions
from net investment income |
Distributions
from realized capital gains |
Total
distributions |
Net
asset value at end of period |
Total
return(1) |
| Net
assets at end of period (000's) |
Ratio
of net expenses to average net assets |
| Ratio
of gross expenses to average net assets |
| Ratio
of net investment income (loss) to average net assets |
| Portfolio
turnover rate |
|
|
| |
Class
A |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
| $10.13 |
$0.14 |
$0.55 |
$0.69 |
$(0.14) |
$(0.76) |
$(0.90) |
$9.92 |
6.92% |
| $36,968 |
1.08% |
| 1.26 |
% |
| 1.42 |
% |
| 24 |
% |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
| 9.92 |
0.16 |
0.57 |
0.73 |
(0.16) |
(1.08) |
(1.24) |
9.41 |
8.53 |
| 32,964 |
1.08 |
| 1.26 |
|
| 1.67 |
|
| 37 |
|
(2) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
| 9.41 |
0.13 |
(0.98) |
(0.85) |
(0.12) |
(0.49) |
(0.61) |
7.95 |
(9.83) |
| 24,567 |
1.08 |
| 1.26 |
|
| 1.37 |
|
| 57 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
| 7.95 |
0.10 |
3.62 |
3.72 |
(0.10) |
(0.16) |
(0.26) |
11.41 |
47.49 |
| 33,052 |
1.08 |
| 1.24 |
|
| 1.08 |
|
| 37 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
| 11.41 |
0.11 |
(0.63) |
(0.52) |
(0.12) |
(0.85) |
(0.97) |
9.92 |
(5.30) |
| 156,947 |
1.08 |
| 1.13 |
|
| 1.03 |
|
| 63 |
|
(3) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Class
C |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
| $10.10 |
$0.08 |
$0.54 |
$0.62 |
$(0.07) |
$(0.76) |
$(0.83) |
$9.89 |
6.12% |
| $3,654 |
1.83% |
| 2.21 |
% |
| 0.68 |
% |
| 24 |
% |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
| 9.89 |
0.09 |
0.56 |
0.65 |
(0.08) |
(1.08) |
(1.16) |
9.38 |
7.72 |
| 3,175 |
1.83 |
| 2.35 |
|
| 0.92 |
|
| 37 |
|
(2) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
| 9.38 |
0.06 |
(0.97) |
(0.91) |
(0.05) |
(0.49) |
(0.54) |
7.93 |
(10.49) |
| 2,175 |
1.83 |
| 2.43 |
|
| 0.62 |
|
| 57 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
| 7.93 |
0.03 |
3.61 |
3.64 |
(0.03) |
(0.16) |
(0.19) |
11.38 |
46.40 |
| 1,943 |
1.83 |
| 2.46 |
|
| 0.33 |
|
| 37 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
| 11.38 |
0.02 |
(0.64) |
(0.62) |
(0.03) |
(0.85) |
(0.88) |
9.88 |
(6.11) |
| 5,722 |
1.83 |
| 2.08 |
|
| 0.28 |
|
| 63 |
|
(3) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Class
Y |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
| $10.17 |
$0.17 |
$0.55 |
$0.72 |
$(0.17) |
$(0.76) |
$(0.93) |
$9.96 |
7.19% |
| $81,988 |
0.81% |
| 0.95 |
% |
| 1.70 |
% |
| 24 |
% |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
| 9.96 |
0.19 |
0.57 |
0.76 |
(0.19) |
(1.08) |
(1.27) |
9.45 |
8.82 |
| 92,928 |
0.79 |
| 0.94 |
|
| 1.96 |
|
| 37 |
|
(2) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
| 9.45 |
0.15 |
(0.98) |
(0.83) |
(0.15) |
(0.49) |
(0.64) |
7.98 |
(9.64) |
| 75,028 |
0.80 |
| 0.96 |
|
| 1.64 |
|
| 57 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
| 7.98 |
0.13 |
3.64 |
3.77 |
(0.13) |
(0.16) |
(0.29) |
11.46 |
47.93 |
| 100,542 |
0.83 |
| 0.95 |
|
| 1.33 |
|
| 37 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
| 11.46 |
0.14 |
(0.64) |
(0.50) |
(0.14) |
(0.85) |
(0.99) |
9.97 |
(5.06) |
| 86,615 |
0.83 |
| 0.88 |
|
| 1.28 |
|
| 63 |
|
(3) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Institutional
Class |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/18 |
| $10.14 |
$0.19 |
$0.55 |
$0.74 |
$(0.19) |
$(0.76) |
$(0.95) |
$9.93 |
7.34% |
| $262,467 |
0.68% |
| 0.87 |
% |
| 1.82 |
% |
| 24 |
% |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/19 |
| 9.93 |
0.20 |
0.57 |
0.77 |
(0.20) |
(1.08) |
(1.28) |
9.42 |
8.96 |
| 208,686 |
0.68 |
| 0.89 |
|
| 2.07 |
|
| 37 |
|
(2) |
|
|
|
|
|
|
|
|
|
|
| |
06/30/20 |
| 9.42 |
0.16 |
(0.97) |
(0.81) |
(0.16) |
(0.49) |
(0.65) |
7.96 |
(9.43) |
| 153,945 |
0.68 |
| 0.90 |
|
| 1.77 |
|
| 57 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/21 |
| 7.96 |
0.14 |
3.63 |
3.77 |
(0.14) |
(0.16) |
(0.30) |
11.43 |
48.12 |
| 289,120 |
0.68 |
| 0.88 |
|
| 1.48 |
|
| 37 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
| 11.43 |
0.16 |
(0.65) |
(0.49) |
(0.16) |
(0.85) |
(1.01) |
9.93 |
(5.02) |
| 252,281 |
0.68 |
| 0.83 |
|
| 1.43 |
|
| 63 |
|
(3) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Class
R6 |
|
|
|
|
|
|
|
|
|
|
|
| |
06/30/22 |
(4) |
$11.91 |
$0.11 |
$(1.11) |
$(1.00) |
$(0.13) |
$(0.85) |
$(0.98) |
$9.93 |
(9.10)% |
(5) |
$395 |
0.63% |
(6) |
8.11% |
(6) |
1.47% |
(6) |
63 |
% |
(3) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(1)Total
returns shown exclude the effect of applicable sales loads and fees. If these
charges were included, the returns would be lower.
(2)Portfolio
turnover excludes securities delivered from processing
redemptions-in-kind.
(3)Portfolio
turnover excludes the purchases and sales of securities of the AIG Strategic
Value Fund acquired on July 16, 2021. If these transactions were included,
portfolio turnover would have been higher.
(4)Represents
the period from commencement of operations (October 28, 2021) through June 30,
2022 for Class R6.
(5)Not
annualized.
(6)Annualized.
TOUCHSTONE
INVESTMENTS*
DISTRIBUTOR
Touchstone
Securities, Inc.*
303
Broadway, Suite 1100
Cincinnati,
Ohio 45202-4203
1.800.638.8194
TouchstoneInvestments.com
INVESTMENT
ADVISOR
Touchstone
Advisors, Inc.*
303
Broadway, Suite 1100
Cincinnati,
Ohio 45202-4203
TRANSFER
AGENT
BNY
Mellon Investment Servicing (US) Inc.
4400
Computer Drive
Westborough,
Massachusetts 01581
SHAREHOLDER
SERVICES
1.800.543.0407
*A
Member of Western & Southern Financial Group
The
following are federal trademark registrations and applications owned by either
IFS Financial Services, Inc. or Touchstone Advisors, Inc., each a member of
Western & Southern Financial Group: Touchstone, Touchstone Funds, Touchstone
Investments, the Touchstone Family of Funds and Distinctively
Active.
303
Broadway, Suite 1100
Cincinnati,
Ohio 45202-4203
Go
paperless, sign up today at:
TouchstoneInvestments.com/Resources/Edelivery
For
investors who want more information about the Funds, the following documents are
available free upon request:
Appendix
A: Appendix
A – Intermediary-Specific Sales Charge Waivers and Discounts is
a separate document that provides additional information about the availability
of certain sales charge waivers and discounts and is incorporated into this
prospectus, which means it is legally a part of this prospectus.
Statement
of Additional Information (“SAI”):
The SAI provides more detailed information about the Funds and is incorporated
herein by reference, which means it is legally a part of this
prospectus.
Annual/Semiannual
Reports (“Financial Reports”):
The Funds’ Financial Reports provide additional information about the Funds’
investments. In the annual report, you will find a discussion of the market
conditions and investment strategies that significantly affected a Fund’s
performance during its last fiscal year.
As
of January 1, 2021, paper copies of the Fund's shareholder reports are no longer
sent by mail. Instead, the reports are made available on the Touchstone Funds
website (TouchstoneInvestments.com/Resources/Fund-Shareholder-Reports), and you
will be notified and provided with a link each time a report is posted to the
website. You may request to receive paper reports from a Fund or from your
financial intermediary, free of charge, at any time. You may also request to
receive documents through eDelivery.
You
can get free copies of Appendix A, the SAI, the Financial Reports, other
information and answers to your questions about the Funds by contacting your
financial advisor or by contacting Touchstone Investments at 1.800.543.0407.
Appendix A, the SAI and Financial Reports are also available without charge on
the Touchstone Investments website at:
TouchstoneInvestments.com/Resources.
Reports
and other information about the Funds are available on the EDGAR database of the
SEC’s internet site at http://www.sec.gov. You may obtain these reports and
other information, after paying a duplicating fee by sending an e-mail request
to: [email protected].
Investment
Company Act File No. 811-03651
TSF-54BB-TST-2210
Appendix
A
Intermediary-Specific
Sales Charge Waivers and Discounts
As
noted in the Funds' prospectus, the availability of certain sales charge waivers
and discounts will depend on whether you purchase your shares directly from a
Fund or through a financial intermediary. Intermediaries may have different
policies and procedures regarding the availability of front-end sales load
waivers or contingent deferred (back-end) sales load (“CDSC”) waivers, which are
discussed below. In all instances, it is the purchaser’s responsibility to
notify a Fund or the purchaser’s financial intermediary at the time of purchase
of any relationship or other facts qualifying the purchaser for sales charge
waivers or discounts. The
sales charge waivers and discounts described in this Appendix
A
are available only if you purchase shares through the designated intermediary.
The information disclosed in this Appendix
A
is part of, and incorporated in, the Funds' prospectus.
*
* * * * *
Shareholders
Purchasing Fund Shares Through Ameriprise Financial
Class
A Shares Front-End Sales Charge Waivers Available at Ameriprise Financial:
The
following information applies to Class A shares purchases if you have an account
with or otherwise purchase Fund shares through Ameriprise Financial:
Shareholders
purchasing Fund shares through an Ameriprise Financial brokerage or account are
eligible for the following front-end sales charge waivers, which may differ from
those disclosed elsewhere in this Fund’s prospectus or SAI:
•Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement plans do
not include SEP IRAs, Simple IRAs or SAR-SEPs.
•Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same Fund (but not any other fund
within the same fund family).
•Shares
exchanged from Class C shares of the same fund in the month of or following the
7-year anniversary of the purchase date. To the extent that this prospectus
elsewhere provides for a waiver with respect to exchanges of Class C shares or
conversion of Class C shares following a shorter holding period, that waiver
will apply.
•Employees
and registered representatives of Ameriprise Financial or its affiliates and
their immediate family members.
•Shares
purchased by or through qualified accounts (including IRAs, Coverdell Education
Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA and defined benefit
plans) that are held by a covered family member, defined as an Ameriprise
financial advisor and/or the advisor’s spouse, advisor’s lineal ascendant
(mother, father, grandmother, grandfather, great grandmother, great
grandfather), advisor’s lineal descendant (son, step-son, daughter,
step-daughter, grandson, granddaughter, great grandson, great granddaughter) or
any spouse of a covered family member who is a lineal descendant.
•Shares
purchased from the proceeds of redemptions within the same fund family, provided
(1) the repurchase occurs within 90 days following the redemption, (2) the
redemption and purchase occur in the same account, and (3) redeemed shares were
subject to a front-end or deferred sales load (i.e. Rights of Reinstatement).
*
* * * * *
Policies
Regarding Transactions Through Edward D. Jones & Co., L.P. ("Edward
Jones")
Effective
on or after March 1, 2021, the following information supersedes prior
information with respect to transactions and positions held in fund shares
through an Edward Jones system. Clients of Edward Jones (also referred to as
"shareholders") purchasing fund shares on the Edward Jones commission and
fee-based platforms are eligible only for the following sales charge discounts
(also referred to as "breakpoints") and waivers, which can differ from discounts
and waivers described elsewhere in the mutual fund prospectus or statement of
additional information ("SAI") or through another broker-dealer. In all
instances, it is the shareholder's responsibility to inform Edward Jones at the
time of purchase of any relationship, holdings of Touchstone Fund Complex, or
other facts qualifying the purchaser for discounts or waivers. Edward Jones can
ask for documentation of such circumstance. Shareholders should contact Edward
Jones if they have questions regarding their eligibility for these discounts and
waivers.
Breakpoints
•Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in
the prospectus.
Rights
of Accumulation ("ROA")
•The
applicable sales charge on a purchase of Class A shares is determined by taking
into account all share classes (except certain money market funds and any assets
held in group retirement plans) of Touchstone Fund Complex held by the
shareholder or in an account grouped by Edward Jones with other accounts for the
purpose of providing certain pricing considerations ("pricing groups"). If
grouping assets as a shareholder, this includes all share classes held on the
Edward Jones platform and/or held on another platform. The inclusion of eligible
fund family assets in the ROA calculation is dependent on the shareholder
notifying Edward Jones of such assets at the time of calculation. Money market
funds are included only if such shares were sold with a sales charge at the time
of purchase or acquired in exchange for shares purchased with a sales
charge.
•The
employer maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to
establish or change ROA for the IRA accounts associated with the plan to a
plan-level grouping as opposed to including all share classes at a shareholder
or pricing group level.
•ROA
is determined by calculating the higher of cost minus redemptions or market
value (current shares x NAV).
Letter
of Intent ("LOI")
•Through
a LOI, shareholders can receive the sales charge and breakpoint discounts for
purchases shareholders intend to make over a 13-month period from the date
Edward Jones receives the LOI. The LOI is determined by calculating the higher
of cost or market value of qualifying holdings at LOI initiation in combination
with the value that the shareholder intends to buy over a 13-month period to
calculate the front-end sales charge and any breakpoint discounts. Each purchase
the shareholder makes during that 13-month period will receive the sales charge
and breakpoint discount that applies to the total amount. The inclusion of
eligible fund family assets in the LOI calculation is dependent on the
shareholder notifying Edward Jones of such assets at the time of calculation.
Purchases made before the LOI is received by Edward Jones are not adjusted under
the LOI and will not reduce the sales charge previously paid. Sales charges will
be adjusted if LOI is not met.
•If
the employer maintaining a SEP IRA plan and/or SIMPLE IRA plan has elected to
establish or change ROA for the IRA accounts associated with the plan to a
plan-level grouping, LOIs will also be at the plan-level and may only be
established by the employer.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
•Associates
of Edward Jones and its affiliates and their family members who are in the same
pricing group (as determined by Edward Jones under its policies and procedures)
as the associate. This waiver will continue for the remainder of the associate's
life if the associate retires from Edward Jones in good-standing and remains in
good standing pursuant to Edward Jones' policies and procedures.
•Shares
purchased in an Edward Jones fee-based program.
•Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment.
•Shares
purchased from the proceeds of redeemed shares of the same fund family so long
as the following conditions are met: 1) the proceeds are from the sale of shares
within 60 days of the purchase, and 2) the sale and purchase are made in
the
same share class and the same account or the purchase is made in an individual
retirement account with proceeds from liquidations in a non-retirement
account.
•Shares
exchanged into Class A shares from another share class so long as the exchange
is into the same fund and was initiated at the discretion of Edward Jones.
Edward Jones is responsible for any remaining CDSC due to the fund company, if
applicable. Any future purchases are subject to the applicable sales charge as
disclosed in the prospectus.
•Exchanges
from Class C shares to Class A shares of the same fund, generally, in the 84th
month following the anniversary of the purchase date or earlier at the
discretion of Edward Jones.
Contingent
Deferred Sales Charge ("CDSC") Waivers
If
the shareholder purchases shares that are subject to a CDSC and those shares are
redeemed before the CDSC is expired, the shareholder is responsible to pay the
CDSC except in the following conditions:
•The
death or disability of the shareholder.
•Systematic
withdrawals with up to 10% per year of the account value.
•Return
of excess contributions from an Individual Retirement Account
(IRA).
•Shares
sold as part of a required minimum distribution for IRA and retirement accounts
if the redemption is taken in or after the year the shareholder reaches
qualified age based on applicable IRS regulations.
•Shares
sold to pay Edward Jones fees or costs in such cases where the transaction is
initiated by Edward Jones.
•Shares
exchanged in an Edward Jones fee-based program.
•Shares
acquired through NAV reinstatement.
•Shares
redeemed at the discretion of Edward Jones for Minimum Balances, as described
below.
Other
Important Information Regarding Transactions Through Edward Jones
Minimum
Purchase Amounts
•Initial
purchase minimum: $250
•Subsequent
purchase minimum: none
Minimum
Balances
•Edward
Jones has the right to redeem at its discretion fund holdings with a balance of
$250 or less. The following are examples of accounts that are not included in
this policy:
•A
fee-based account held on an Edward Jones platform
•A
529 account held on an Edward Jones platform
•An
account with an active systematic investment plan or LOI
Exchanging
Share Classes
•At
any time it deems necessary, Edward Jones has the authority to exchange at NAV a
shareholder's holdings in a fund to Class A shares of the same fund.
*
* * * * *
Shareholders
Purchasing Fund Shares Through Janney Montgomery Scott LLC (“Janney”)
Effective
May 1, 2020, shareholders purchasing fund shares through a Janney account will
be eligible only for the following load waivers (front-end sales charge waivers
and contingent deferred, or back-end, sales charge waivers) and discounts, which
may differ from those disclosed elsewhere in this fund’s Prospectus or SAI.
Front-end
sales charge waivers on Class A shares available at Janney
•Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any other fund
within the fund family).
•Shares
purchased by employees and registered representatives of Janney or its
affiliates and their family members as designated by Janney.
•Shares
purchased from the proceeds of redemptions within the same fund family, provided
(1) the repurchase occurs within ninety (90) days following the redemption, (2)
the redemption and purchase occur in the same account, and (3) redeemed shares
were subject to a front-end or deferred sales load (i.e., right of
reinstatement).
•Class
C shares that are no longer subject to a contingent deferred sales charge and
are converted to Class A shares of the same fund pursuant to Janney’s policies
and procedures.
Sales
charge waivers on Class A and C shares available at Janney
Shares
sold upon the death or disability of the shareholder.
•Shares
sold as part of a systematic withdrawal plan as described in the fund’s
Prospectus.
•Shares
purchased in connection with a return of excess contributions from an IRA
account.
•Shares
sold as part of a required minimum distribution for IRA and other retirement
accounts due to the shareholder reaching the qualified age based on applicable
IRS regulations.
•Shares
sold to pay Janney fees but only if the transaction is initiated by Janney.
•Shares
acquired through a right of reinstatement.
Front-end
load discounts available at Janney: breakpoints, and/or rights of accumulation
•Breakpoints
as described in the fund’s Prospectus.
•Rights
of accumulation (“ROA”), which entitle shareholders to breakpoint discounts,
will be automatically calculated based on the aggregated holding of fund family
assets held by accounts within the purchaser’s household at Janney. Eligible
fund family assets not held at Janney may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such assets.
*
* * * * *
Shareholders
Purchasing Fund Shares Through Merrill Lynch, Pierce, Fenner & Smith
Incorporated ("Merrill Lynch")
The
following information is provided by Merrill Lynch: Shareholders purchasing Fund
shares through a Merrill Lynch platform or account will be eligible only for the
following load waivers (front-end sales charge waivers and contingent deferred,
or back-end, sales charge waivers) and discounts, which may differ from those
disclosed elsewhere in this Fund’s prospectus or SAI.
Front-end
Sales Load Waivers on Class A Shares Available at Merrill Lynch
•Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health
savings accounts) and trusts used to fund those plans, provided that the shares
are not held in a commission-based brokerage account and shares are held for the
benefit of the plan
•Shares
purchased by a 529 Plan (does not include 529 Plan units or 529-specific share
classes or equivalents)
•Shares
purchased through a Merrill Lynch affiliated investment advisory program
•Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment
advisory program to a Merrill Lynch brokerage (non-advisory) account pursuant to
Merrill Lynch’s policies relating to sales load discounts and waivers
•Shares
purchased by third party investment advisors on behalf of their advisory clients
through Merrill Lynch’s platform
•Shares
of funds purchased through the Merrill Edge Self-Directed platform (if
applicable)
•Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any other fund
within the fund family)
•Shares
exchanged from Class C (i.e. level-load) shares of the same fund pursuant to
Merrill Lynch’s policies relating to sales load discounts and waivers
•Employees
and registered representatives of Merrill Lynch or its affiliates and their
family members
•Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any
of its affiliates, as described in the this Prospectus
•Eligible
shares purchased from the proceeds of redemptions within the same fund family,
provided (1) the repurchase occurs within 90 days following the redemption, (2)
the redemption and purchase occur in the same account, and (3) redeemed shares
were subject to a front-end or deferred sales load (known as Rights of
Reinstatement). Automated transactions (i.e. systematic purchases and
withdrawals) and purchases made after shares are automatically sold to pay
Merrill Lynch’s account maintenance fees are not eligible for reinstatement
CDSC
Waivers on Class A Shares and Class C Shares Available at Merrill Lynch
•Death
or disability of the shareholder
•Shares
sold as part of a systematic withdrawal plan as described in the Fund’s
prospectus
•Return
of excess contributions from an IRA Account
•Shares
sold as part of a required minimum distribution for IRA and retirement accounts
pursuant to the Internal Revenue Code
•Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by
Merrill Lynch
•Shares
acquired through a right of reinstatement
•Shares
held in retirement brokerage accounts, that are exchanged for a lower cost share
class due to transfer to certain fee based accounts or platforms (applicable to
A and C shares only)
•Shares
received through an exchange due to the holdings moving from a Merrill Lynch
affiliated investment advisory program to a Merrill Lynch brokerage
(non-advisory) account pursuant to Merrill Lynch’s policies relating to sales
load discounts and waivers
Front-end
Load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation,
and Letters of Intent
•Breakpoints
as described in this Prospectus
•Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as
described in the Fund’s prospectus will be automatically calculated based on the
aggregated holding of fund family assets held by accounts (including 529 program
holdings, where applicable) within the purchaser’s household at Merrill Lynch.
Eligible fund family assets not held at Merrill Lynch may be included in the ROA
calculation only if the shareholder notifies his or her financial advisor about
such assets
•Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated
purchases within a fund family, through Merrill Lynch, over a 13-month period of
time (if applicable)
*
* * * * *
Shareholders
Purchasing Fund Shares Through Morgan Stanley Smith Barney LLC ("Morgan
Stanley")
The
following information is provided by Morgan Stanley: Unless otherwise noted
herein, effective June 1, 2020, shareholders purchasing Fund shares through a
Morgan Stanley Wealth Management transactional brokerage account will be
eligible only for the following front-end sales charge waivers with respect to
Class A shares, which may differ from and may be more limited than those
disclosed elsewhere in this Fund’s Prospectus or SAI.
Front-end
Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth
Management
•Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement plans do
not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans
•Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s
account linking rules
•Shares
purchased through reinvestment of dividends and capital gains distributions when
purchasing shares of the same fund
•Shares
purchased through a Morgan Stanley self-directed brokerage account
•Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred
sales charge and are converted to Class A shares of the same fund pursuant to
Morgan Stanley Wealth Management’s share class conversion program
•Shares
purchased from the proceeds of redemptions within the same fund family, provided
(i) the repurchase occurs within 90 days following the redemption, (ii) the
redemption and purchase occur in the same account, and (iii) redeemed shares
were subject to a front-end or deferred sales charge
•Your
financial intermediary, on your behalf, can convert Class S shares of the
Touchstone Ultra Short Duration Fixed Income Fund to Class A shares of
the same fund, without a sales charge and on a tax free basis, if they are held
in a brokerage account
•Effective
July 1, 2020, shares of the Touchstone Ultra Short Duration Fixed Income Fund
purchased in a Morgan Stanley transactional brokerage account.
*
* * * * *
Shareholders
Purchasing Fund Shares Through Oppenheimer & Co. Inc (“OPCO”)
Effective
February 26, 2020, shareholders purchasing Fund shares through an OPCO platform
or account are eligible only for the following load waivers (front-end sales
charge waivers and contingent deferred, or back-end, sales charge waivers) and
discounts, which may differ from those disclosed elsewhere in this Fund’s
prospectus or SAI.
Front-end
Sales Load Waivers on Class A Shares available at OPCO
•Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health
savings accounts) and trusts used to fund those plans, provided that the shares
are not held in a commission-based brokerage account and shares are held for the
benefit of the plan
•Shares
purchased by or through a 529 Plan
•Shares
purchased through a OPCO affiliated investment advisory program
•Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any other fund
within the fund family)
•Shares
purchased from the proceeds of redemptions within the same fund family, provided
(1) the repurchase occurs within 90 days following the redemption, (2) the
redemption and purchase occur in the same account, and (3) redeemed shares were
subject to a front-end or deferred sales load (known as Rights of Restatement).
•A
shareholder in the Fund’s Class C shares will have their shares converted at net
asset value to Class A shares (or the appropriate share class) of the Fund if
the shares are no longer subject to a CDSC and the conversion is in line with
the policies and procedures of OPCO
•Employees
and registered representatives of OPCO or its affiliates and their family
members
•Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any
of its affiliates, as described in this prospectus
CDSC
Waivers on A, B and C Shares available at OPCO
•Death
or disability of the shareholder
•Shares
sold as part of a systematic withdrawal plan as described in the Fund’s
prospectus
•Return
of excess contributions from an IRA Account
•Shares
sold as part of a required minimum distribution for IRA and retirement accounts
due to the shareholder reaching the qualified age based on applicable IRS
regulations as described in the prospectus
•Shares
sold to pay OPCO fees but only if the transaction is initiated by OPCO
•Shares
acquired through a right of reinstatement
Front-end
load Discounts Available at OPCO: Breakpoints, Rights of Accumulation &
Letters of Intent
•Breakpoints
as described in this prospectus.
•Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of fund family assets
held by accounts within the purchaser’s household at OPCO. Eligible fund family
assets not held at OPCO may be included in the ROA calculation only if the
shareholder notifies his or her financial advisor about such assets.
*
* * * * *
Shareholders
Purchasing Fund Shares Through Raymond James & Associates, Inc., Raymond
James Financial Services & Raymond James affiliates (“Raymond James”)
Effective
March 1, 2019, shareholders purchasing fund shares through a Raymond James
platform or account will be eligible only for the following load waivers
(front-end sales charge waivers and contingent deferred, or back-end, sales
charge waivers) and discounts, which may differ from those disclosed elsewhere
in this fund’s prospectus or SAI.
Front-end
Sales Charge Waivers on Class A Shares available at Raymond James
•Shares
purchased in an investment advisory program.
•Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any other fund
within the fund family).
•Employees
and registered representatives of Raymond James or its affiliates and their
family members as designated by Raymond James.
•Shares
purchased from the proceeds of redemptions within the same fund family, provided
(1) the repurchase occurs within 90 days following the redemption, (2) the
redemption and purchase occur in the same account, and (3) redeemed shares were
subject to a front-end or deferred sales load (known as Rights of
Reinstatement).
•A
shareholder in the Fund’s Class C shares will have their shares converted at net
asset value to Class A shares (or the appropriate share class) of the Fund if
the shares are no longer subject to a CDSC and the conversion is in line with
the policies and procedures of Raymond James.
CDSC
Waivers on Classes A, B and C shares available at Raymond James
•Death
or disability of the shareholder.
•Shares
sold as part of a systematic withdrawal plan as described in the fund’s
prospectus.
•Return
of excess contributions from an IRA Account.
•Shares
sold as part of a required minimum distribution for IRA and retirement accounts
due to the shareholder reaching the qualified age based on applicable IRS
regulations.
•Shares
sold to pay Raymond James fees but only if the transaction is initiated by
Raymond James.
•Shares
acquired through a right of reinstatement.
Front-end
load discounts available at Raymond James: breakpoints, and/or Rights of
Accumulation
•Breakpoints
as described in this prospectus.
•Rights
of accumulation which entitle shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of fund family assets
held by accounts within the purchaser’s household at Raymond James. Eligible
fund family assets not held at Raymond James may be included in the rights of
accumulation calculation only if the shareholder notifies his or her financial
advisor about such assets.
*
* * * * *
Shareholders
Purchasing Fund Shares Through Robert W. Baird & Co. Incorporated
The
following information is provided by Robert W. Baird & Co. Incorporated
("Baird"): Effective June 15, 2020, shareholders purchasing fund shares
through a Baird platform or account will only be eligible for the following
sales charge waivers (front-end sales charge waivers and CDSC waivers) and
discounts, which may differ from those disclosed elsewhere in this prospectus or
the SAI.
Front-End
Sales Charge Waivers on Investors A-shares Available at Baird
•Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same Fund
•Shares
purchased by employees and registered representatives of Baird or its affiliate
and their family members as designated by Baird
•Shares
purchased from the proceeds of redemptions from another Touchstone Fund,
provided (1) the repurchase occurs within 90 days following the redemption, (2)
the redemption and purchase occur in the same accounts, and (3) redeemed shares
were subject to a front-end or deferred sales charge (known as rights of
reinstatement)
•A
shareholder in the Fund's Investor C Shares will have their shares converted at
net asset value to Investor A shares of the Fund if the shares are no longer
subject to a CDSC and the conversion is in line with the policies and procedures
of Baird
•Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at
Baird, including 401(k) plans, 457 plans, employer-sponsored 403(b) plans,
profit sharing and money purchase pension plans and defined benefit plans. For
purposes of this provision, employer-sponsored retirement plans do not include
SEP IRAs, Simple IRAs or SAR-SEPs
CDSC
Waivers on Investor A and C shares Available at Baird
•Shares
sold due to death or disability of the shareholder
•Shares
sold as part of a systematic withdrawal plan as described in the Fund’s
Prospectus
•Shares
bought due to returns of excess contributions from an IRA Account
•Shares
sold as part of a required minimum distribution for IRA and retirement accounts
due to the shareholder reaching age 72 as described in the Fund’s prospectus
•Shares
sold to pay Baird fees but only if the transaction is initiated by Baird
•Shares
acquired through a right of reinstatement
Front-End
Sales Charge Discounts Available at Baird: Breakpoints and/or Rights of
Accumulations
•Breakpoints
as described in this prospectus
•Rights
of accumulations which entitles shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of Touchstone Fund
assets held by accounts within the purchaser’s household at Baird. Eligible
Touchstone Fund assets not held at Baird may be included in the rights of
accumulations calculation only if the shareholder notifies his or her financial
advisor about such assets
•Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of
Touchstone Funds through Baird, over a 13-month period of time