Results
Touchstone Strategic Trust
09/03/2024 | Press release | Distributed by Public on 09/03/2024 05:17
Annual Report by Investment Company Form N CSR
8dcc07ca9ad42eb
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number
811-03651
Touchstone Strategic Trust - June Funds
(Exact name of registrant as specified in charter)
303 Broadway, Suite 1100
Cincinnati, Ohio 45202-4203
Cincinnati, Ohio 45202-4203
Registrant's telephone number, including area code:
800-638-8194
Date of fiscal year end:
June 30
Date of reporting period:
June 30, 2024
Item 1. Reports to Stockholders.
(a) The Report to Shareholders is attached herewith.
TABLE OF CONTENTS
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Touchstone Balanced Fund |
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Touchstone Balanced Fund |
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Touchstone Balanced Fund |
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Touchstone Balanced Fund |
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Touchstone Core Municipal Bond Fund |
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Touchstone Core Municipal Bond Fund |
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Touchstone Core Municipal Bond Fund |
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Touchstone Core Municipal Bond Fund |
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Touchstone International Value Fund |
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Touchstone International Value Fund |
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Touchstone International Value Fund |
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Touchstone International Value Fund |
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Touchstone Large Cap Focused Fund |
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Touchstone Large Cap Focused Fund |
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Touchstone Large Cap Focused Fund |
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Touchstone Large Cap Focused Fund |
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Touchstone Large Cap Focused Fund |
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Touchstone Large Cap Fund |
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Touchstone Large Cap Fund |
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Touchstone Large Cap Fund |
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Touchstone Large Cap Fund |
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Touchstone Large Company Growth Fund |
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Touchstone Large Company Growth Fund |
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Touchstone Large Company Growth Fund |
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Touchstone Large Company Growth Fund |
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Touchstone Small Company Fund |
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Touchstone Small Company Fund |
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Touchstone Small Company Fund |
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Touchstone Small Company Fund |
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Touchstone Small Company Fund |
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Touchstone Value Fund |
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Touchstone Value Fund |
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Touchstone Value Fund |
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Touchstone Value Fund |
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Touchstone Value Fund |
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Touchstone Balanced Fund
CLASS A | SEBLX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone Balanced Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Class A | $107 | 1.01% |
Management's Discussion of Fund Performance
The Fund seeks to achieve its investment goal of providing capital appreciation and current income by generally investing in a diversified portfolio comprising 60% equity securities and 40% fixed-income securities. 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. 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 Class A shares performance was 12.22% (excluding sales loads) for the reporting period.
Financial market volatility has been elevated in the face of uncertain monetary policy, mixed economic indicators, and increased geopolitical risks. The S&P 500® Index performance has been driven by the ongoing leadership of artificial intelligence related stocks; however, the broader market exhibited narrow breadth as small caps struggled and growth stocks outperformed value. Interest rates continue to experience volatility as investors adjust their expectations for rate cuts and analyze new economic data's implication for monetary policy.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Equity Security Selection | Negative | Selections within the Technology and Health Care sectors were the primary drivers of underperformance within equities. |
| Interest Rate Management | Negative | Interest rates have been extremely volatile as investors have endeavored to forecast rate cuts following the Fed's last rate hike in July 2023. The Fund's fixed income allocation's duration position short of the benchmark's represented a modest relative performance headwind. |
| Asset Allocation | Positive | The Fund maintained an overweight allocation to equities which outperformed fixed income over the past 12 months. |
| Fixed Income Security Selection | Positive | Security selection within Investment Grade Corporates and Securitized contributed to relative outperformance. |
Equities, as measured by the S&P 500® Index, exhibited strong performance over the last 12 months and, in seeking to target a moderate amount of risk relative to the benchmark, the Fund has used periods of strong performance to trim equity exposure. The Fund has moved up in quality within the fixed income allocation as spreads are near historically tight levels and the risk/reward is skewed to the downside.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and any additional indexes and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Class A | 6.61% | 8.00% | 7.58% |
| Class A - excluding sales load | 12.22% | 9.11% | 8.13% |
| Russell 3000® Index | 23.13% | 14.14% | 12.15% |
| Bloomberg U.S. Aggregate Bond Index | 2.63% | -0.23% | 1.35% |
| 60% Russell 1000® Index and 40% Bloomberg U.S. Aggregate Bond Index | 15.06% | 9.06% | 8.36% |
| 60% S&P 500® Index and 40% Bloomberg U.S. Aggregate Bond Index | 15.42% | 9.01% | 8.38% |
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $916,751,321 |
| Total number of portfolio holdings | 299 |
| Total advisory fees paid | $4,164,476 |
| Portfolio turnover rate | 70% |
Graphical Representation of Holdings
Asset Category (% of Net Assets)
| Common Stocks | 63.9% |
| Corporate Bonds | 12.5% |
| U.S. Treasury Obligations | 11.7% |
| U.S. Government Mortgage-Backed Obligations | 3.5% |
| Commercial Mortgage-Backed Securities | 2.0% |
| Asset-Backed Securities | 1.8% |
| Non-Agency Collateralized Mortgage Obligations | 1.7% |
| Agency Collateralized Mortgage Obligations | 0.6% |
| Sovereign Government Obligations | 0.3% |
| Short-Term Investment Fund | 1.6% |
| Other Assets/Liabilities (Net) | 0.4% |
| Total | 100.0% |
Credit Quality* (% of Fixed Income Securities)
| AAA/Aaa | 55.6% |
| AA/Aa | 7.7% |
| A/A | 12.8% |
| BBB/Baa | 21.7% |
| BB/Ba | 0.3% |
| B/B | 0.2% |
| Not Rated | 1.7% |
| Total | 100.0% |
* Credit quality ratings are from S&P Global Ratings ("S&P") and Moody's Investor Service ("Moody's"). If agency ratings differ, the higher ratings will be used. Where no rating has been assigned, it may be for reasons unrelated to the creditworthiness of the issuer.
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone Balanced Fund
CLASS C | SBACX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone Balanced Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Class C | $187 | 1.77% |
Management's Discussion of Fund Performance
The Fund seeks to achieve its investment goal of providing capital appreciation and current income by generally investing in a diversified portfolio comprising 60% equity securities and 40% fixed-income securities. 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. 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 Class C shares performance was 11.38% (excluding sales loads) for the reporting period.
Financial market volatility has been elevated in the face of uncertain monetary policy, mixed economic indicators, and increased geopolitical risks. The S&P 500® Index performance has been driven by the ongoing leadership of artificial intelligence related stocks; however, the broader market exhibited narrow breadth as small caps struggled and growth stocks outperformed value. Interest rates continue to experience volatility as investors adjust their expectations for rate cuts and analyze new economic data's implication for monetary policy.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Equity Security Selection | Negative | Selections within the Technology and Health Care sectors were the primary drivers of underperformance within equities. |
| Interest Rate Management | Negative | Interest rates have been extremely volatile as investors have endeavored to forecast rate cuts following the Fed's last rate hike in July 2023. The Fund's fixed income allocation's duration position short of the benchmark's represented a modest relative performance headwind. |
| Asset Allocation | Positive | The Fund maintained an overweight allocation to equities which outperformed fixed income over the past 12 months. |
| Fixed Income Security Selection | Positive | Security selection within Investment Grade Corporates and Securitized contributed to relative outperformance. |
Equities, as measured by the S&P 500® Index, exhibited strong performance over the last 12 months and, in seeking to target a moderate amount of risk relative to the benchmark, the Fund has used periods of strong performance to trim equity exposure. The Fund has moved up in quality within the fixed income allocation as spreads are near historically tight levels and the risk/reward is skewed to the downside.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and any additional indexes and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Class C | 10.38% | 8.29% | 7.47% |
| Class C - excluding sales load | 11.38% | 8.29% | 7.47% |
| Russell 3000® Index | 23.13% | 14.14% | 12.15% |
| Bloomberg U.S. Aggregate Bond Index | 2.63% | -0.23% | 1.35% |
| 60% Russell 1000® Index and 40% Bloomberg U.S. Aggregate Bond Index | 15.06% | 9.06% | 8.36% |
| 60% S&P 500® Index and 40% Bloomberg U.S. Aggregate Bond Index | 15.42% | 9.01% | 8.38% |
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $916,751,321 |
| Total number of portfolio holdings | 299 |
| Total advisory fees paid | $4,164,476 |
| Portfolio turnover rate | 70% |
Graphical Representation of Holdings
Asset Category (% of Net Assets)
| Common Stocks | 63.9% |
| Corporate Bonds | 12.5% |
| U.S. Treasury Obligations | 11.7% |
| U.S. Government Mortgage-Backed Obligations | 3.5% |
| Commercial Mortgage-Backed Securities | 2.0% |
| Asset-Backed Securities | 1.8% |
| Non-Agency Collateralized Mortgage Obligations | 1.7% |
| Agency Collateralized Mortgage Obligations | 0.6% |
| Sovereign Government Obligations | 0.3% |
| Short-Term Investment Fund | 1.6% |
| Other Assets/Liabilities (Net) | 0.4% |
| Total | 100.0% |
Credit Quality* (% of Fixed Income Securities)
| AAA/Aaa | 55.6% |
| AA/Aa | 7.7% |
| A/A | 12.8% |
| BBB/Baa | 21.7% |
| BB/Ba | 0.3% |
| B/B | 0.2% |
| Not Rated | 1.7% |
| Total | 100.0% |
* Credit quality ratings are from S&P Global Ratings ("S&P") and Moody's Investor Service ("Moody's"). If agency ratings differ, the higher ratings will be used. Where no rating has been assigned, it may be for reasons unrelated to the creditworthiness of the issuer.
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone Balanced Fund
CLASS Y | SIBLX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone Balanced Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Class Y | $83 | 0.78% |
Management's Discussion of Fund Performance
The Fund seeks to achieve its investment goal of providing capital appreciation and current income by generally investing in a diversified portfolio comprising 60% equity securities and 40% fixed-income securities. 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. 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 Class Y shares performance was 12.51% for the reporting period.
Financial market volatility has been elevated in the face of uncertain monetary policy, mixed economic indicators, and increased geopolitical risks. The S&P 500® Index performance has been driven by the ongoing leadership of artificial intelligence related stocks; however, the broader market exhibited narrow breadth as small caps struggled and growth stocks outperformed value. Interest rates continue to experience volatility as investors adjust their expectations for rate cuts and analyze new economic data's implication for monetary policy.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Equity Security Selection | Negative | Selections within the Technology and Health Care sectors were the primary drivers of underperformance within equities. |
| Interest Rate Management | Negative | Interest rates have been extremely volatile as investors have endeavored to forecast rate cuts following the Fed's last rate hike in July 2023. The Fund's fixed income allocation's duration position short of the benchmark's represented a modest relative performance headwind. |
| Asset Allocation | Positive | The Fund maintained an overweight allocation to equities which outperformed fixed income over the past 12 months. |
| Fixed Income Security Selection | Positive | Security selection within Investment Grade Corporates and Securitized contributed to relative outperformance. |
Equities, as measured by the S&P 500® Index, exhibited strong performance over the last 12 months and, in seeking to target a moderate amount of risk relative to the benchmark, the Fund has used periods of strong performance to trim equity exposure. The Fund has moved up in quality within the fixed income allocation as spreads are near historically tight levels and the risk/reward is skewed to the downside.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and any additional indexes and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Class Y | 12.51% | 9.36% | 8.36% |
| Russell 3000® Index | 23.13% | 14.14% | 12.15% |
| Bloomberg U.S. Aggregate Bond Index | 2.63% | -0.23% | 1.35% |
| 60% Russell 1000® Index and 40% Bloomberg U.S. Aggregate Bond Index | 15.06% | 9.06% | 8.36% |
| 60% S&P 500® Index and 40% Bloomberg U.S. Aggregate Bond Index | 15.42% | 9.01% | 8.38% |
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $916,751,321 |
| Total number of portfolio holdings | 299 |
| Total advisory fees paid | $4,164,476 |
| Portfolio turnover rate | 70% |
Graphical Representation of Holdings
Asset Category (% of Net Assets)
| Common Stocks | 63.9% |
| Corporate Bonds | 12.5% |
| U.S. Treasury Obligations | 11.7% |
| U.S. Government Mortgage-Backed Obligations | 3.5% |
| Commercial Mortgage-Backed Securities | 2.0% |
| Asset-Backed Securities | 1.8% |
| Non-Agency Collateralized Mortgage Obligations | 1.7% |
| Agency Collateralized Mortgage Obligations | 0.6% |
| Sovereign Government Obligations | 0.3% |
| Short-Term Investment Fund | 1.6% |
| Other Assets/Liabilities (Net) | 0.4% |
| Total | 100.0% |
Credit Quality* (% of Fixed Income Securities)
| AAA/Aaa | 55.6% |
| AA/Aa | 7.7% |
| A/A | 12.8% |
| BBB/Baa | 21.7% |
| BB/Ba | 0.3% |
| B/B | 0.2% |
| Not Rated | 1.7% |
| Total | 100.0% |
* Credit quality ratings are from S&P Global Ratings ("S&P") and Moody's Investor Service ("Moody's"). If agency ratings differ, the higher ratings will be used. Where no rating has been assigned, it may be for reasons unrelated to the creditworthiness of the issuer.
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone Balanced Fund
CLASS R6 | TBARX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone Balanced Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Class R6 | $68 | 0.64% |
Management's Discussion of Fund Performance
The Fund seeks to achieve its investment goal of providing capital appreciation and current income by generally investing in a diversified portfolio comprising 60% equity securities and 40% fixed-income securities. 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. 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 Class R6 shares performance was 12.63% for the reporting period.
Financial market volatility has been elevated in the face of uncertain monetary policy, mixed economic indicators, and increased geopolitical risks. The S&P 500® Index performance has been driven by the ongoing leadership of artificial intelligence related stocks; however, the broader market exhibited narrow breadth as small caps struggled and growth stocks outperformed value. Interest rates continue to experience volatility as investors adjust their expectations for rate cuts and analyze new economic data's implication for monetary policy.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Equity Security Selection | Negative | Selections within the Technology and Health Care sectors were the primary drivers of underperformance within equities. |
| Interest Rate Management | Negative | Interest rates have been extremely volatile as investors have endeavored to forecast rate cuts following the Fed's last rate hike in July 2023. The Fund's fixed income allocation's duration position short of the benchmark's represented a modest relative performance headwind. |
| Asset Allocation | Positive | The Fund maintained an overweight allocation to equities which outperformed fixed income over the past 12 months. |
| Fixed Income Security Selection | Positive | Security selection within Investment Grade Corporates and Securitized contributed to relative outperformance. |
Equities, as measured by the S&P 500® Index, exhibited strong performance over the last 12 months and, in seeking to target a moderate amount of risk relative to the benchmark, the Fund has used periods of strong performance to trim equity exposure. The Fund has moved up in quality within the fixed income allocation as spreads are near historically tight levels and the risk/reward is skewed to the downside.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and any additional indexes and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Class R61 | 12.63% | 9.33% | 8.24% |
| Russell 3000® Index | 23.13% | 14.14% | 12.15% |
| Bloomberg U.S. Aggregate Bond Index | 2.63% | -0.23% | 1.35% |
| 60% Russell 1000® Index and 40% Bloomberg U.S. Aggregate Bond Index | 15.06% | 9.06% | 8.36% |
| 60% S&P 500® Index and 40% Bloomberg U.S. Aggregate Bond Index | 15.42% | 9.01% | 8.38% |
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1
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The inception date was October 28, 2021. Performance information was calculated using the historical performance of Class A shares for the period prior to October 28, 2021.
|
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $916,751,321 |
| Total number of portfolio holdings | 299 |
| Total advisory fees paid | $4,164,476 |
| Portfolio turnover rate | 70% |
Graphical Representation of Holdings
Asset Category (% of Net Assets)
| Common Stocks | 63.9% |
| Corporate Bonds | 12.5% |
| U.S. Treasury Obligations | 11.7% |
| U.S. Government Mortgage-Backed Obligations | 3.5% |
| Commercial Mortgage-Backed Securities | 2.0% |
| Asset-Backed Securities | 1.8% |
| Non-Agency Collateralized Mortgage Obligations | 1.7% |
| Agency Collateralized Mortgage Obligations | 0.6% |
| Sovereign Government Obligations | 0.3% |
| Short-Term Investment Fund | 1.6% |
| Other Assets/Liabilities (Net) | 0.4% |
| Total | 100.0% |
Credit Quality* (% of Fixed Income Securities)
| AAA/Aaa | 55.6% |
| AA/Aa | 7.7% |
| A/A | 12.8% |
| BBB/Baa | 21.7% |
| BB/Ba | 0.3% |
| B/B | 0.2% |
| Not Rated | 1.7% |
| Total | 100.0% |
* Credit quality ratings are from S&P Global Ratings ("S&P") and Moody's Investor Service ("Moody's"). If agency ratings differ, the higher ratings will be used. Where no rating has been assigned, it may be for reasons unrelated to the creditworthiness of the issuer.
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone Core Municipal Bond Fund
CLASS A | TOHAX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone Core Municipal Bond Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Class A | $81 | 0.80% |
Management's Discussion of Fund Performance
The Fund seeks a high level of current income exempt from federal income taxes, consistent with the protection of capital by investing primarily in high-quality, municipal debt issued by U.S. states and their subdivisions, authorities, instrumentalities and corporations, as well as obligations issued by U.S. territories.
The Fund's Class A shares performance was 3.27% (excluding sales loads) for the reporting period.
As a result of significant Treasury volatility, Municipal investors experienced a roller coaster ride as yields moved rapidly up and down throughout the period. Relatively speaking, Municipals held up well versus comparable Treasuries which has kept Municipal/Treasury ratios on the richer side, and credit risk remains well contained for most issuers. Strong summer seasonals helped to drive both yields and spreads lower at the end of the period, which pushed year to date returns on the Bloomberg Municipal Bond Index back to a more palatable percentage.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Sector | Positive | Overweight to A, BBB credits benefitted from spread tightening, added yield carry and higher sector volatility. |
| Active Trading | Positive | Benefitted from attractive new issue pricing and selling overvalued bonds. |
| Security Selection | Positive | Slight benefit from individual securities with advantageous risk/reward characteristics such as below investment grade. |
| Duration/Curve Tilts | Negative | Long duration profile was the primary driver of negative excess return but was slightly offset by the modest barbell curve allocation. |
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Class A | -0.08% | 0.36% | 1.32% |
| Class A - excluding sales load | 3.27% | 0.77% | 1.82% |
| Bloomberg Municipal Bond Index | 3.21% | 1.16% | 2.39% |
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $49,318,943 |
| Total number of portfolio holdings | 92 |
| Total advisory fees paid | $203,835 |
| Portfolio turnover rate | 27% |
Graphical Representation of Holdings
Asset Category (% of Net Assets)
| Fixed Rate Revenue Bonds | 75.9% |
| General Obligation Bonds | 21.1% |
| Short-Term Investment Fund | 1.9% |
| Other Assets/Liabilities (Net) | 1.1% |
| Total | 100.0% |
Credit Quality* (% of Fixed Income Securities)
| AAA/Aaa | 1.4% |
| AA/Aa | 47.6% |
| A/A | 37.1% |
| BBB/Baa | 11.7% |
| BB/Ba | 0.9% |
| Not Rated | 1.3% |
| Total | 100.0% |
* Credit quality ratings are from S&P Global Ratings ("S&P") and Moody's Investor Service ("Moody's"). If agency ratings differ, the higher ratings will be used. Where no rating has been assigned, it may be for reasons unrelated to the creditworthiness of the issuer.
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone Core Municipal Bond Fund
CLASS C | TOHCX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone Core Municipal Bond Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Class C | $157 | 1.55% |
Management's Discussion of Fund Performance
The Fund seeks a high level of current income exempt from federal income taxes, consistent with the protection of capital by investing primarily in high-quality, municipal debt issued by U.S. states and their subdivisions, authorities, instrumentalities and corporations, as well as obligations issued by U.S. territories.
The Fund's Class C shares performance was 2.41% (excluding sales loads) for the reporting period.
As a result of significant Treasury volatility, Municipal investors experienced a roller coaster ride as yields moved rapidly up and down throughout the period. Relatively speaking, Municipals held up well versus comparable Treasuries which has kept Municipal/Treasury ratios on the richer side, and credit risk remains well contained for most issuers. Strong summer seasonals helped to drive both yields and spreads lower at the end of the period, which pushed year to date returns on the Bloomberg Municipal Bond Index back to a more palatable percentage.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Sector | Positive | Overweight to A, BBB credits benefitted from spread tightening, added yield carry and higher sector volatility. |
| Active Trading | Positive | Benefitted from attractive new issue pricing and selling overvalued bonds. |
| Security Selection | Positive | Slight benefit from individual securities with advantageous risk/reward characteristics such as below investment grade. |
| Duration/Curve Tilts | Negative | Long duration profile was the primary driver of negative excess return but was slightly offset by the modest barbell curve allocation. |
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Class C | 1.41% | -0.03% | 1.19% |
| Class C - excluding sales load | 2.41% | -0.03% | 1.19% |
| Bloomberg Municipal Bond Index | 3.21% | 1.16% | 2.39% |
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $49,318,943 |
| Total number of portfolio holdings | 92 |
| Total advisory fees paid | $203,835 |
| Portfolio turnover rate | 27% |
Graphical Representation of Holdings
Asset Category (% of Net Assets)
| Fixed Rate Revenue Bonds | 75.9% |
| General Obligation Bonds | 21.1% |
| Short-Term Investment Fund | 1.9% |
| Other Assets/Liabilities (Net) | 1.1% |
| Total | 100.0% |
Credit Quality* (% of Fixed Income Securities)
| AAA/Aaa | 1.4% |
| AA/Aa | 47.6% |
| A/A | 37.1% |
| BBB/Baa | 11.7% |
| BB/Ba | 0.9% |
| Not Rated | 1.3% |
| Total | 100.0% |
* Credit quality ratings are from S&P Global Ratings ("S&P") and Moody's Investor Service ("Moody's"). If agency ratings differ, the higher ratings will be used. Where no rating has been assigned, it may be for reasons unrelated to the creditworthiness of the issuer.
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone Core Municipal Bond Fund
CLASS Y | TOHYX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone Core Municipal Bond Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Class Y | $56 | 0.55% |
Management's Discussion of Fund Performance
The Fund seeks a high level of current income exempt from federal income taxes, consistent with the protection of capital by investing primarily in high-quality, municipal debt issued by U.S. states and their subdivisions, authorities, instrumentalities and corporations, as well as obligations issued by U.S. territories.
The Fund's Class Y shares performance was 3.72% for the reporting period.
As a result of significant Treasury volatility, Municipal investors experienced a roller coaster ride as yields moved rapidly up and down throughout the period. Relatively speaking, Municipals held up well versus comparable Treasuries which has kept Municipal/Treasury ratios on the richer side, and credit risk remains well contained for most issuers. Strong summer seasonals helped to drive both yields and spreads lower at the end of the period, which pushed year to date returns on the Bloomberg Municipal Bond Index back to a more palatable percentage.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Sector | Positive | Overweight to A, BBB credits benefitted from spread tightening, added yield carry and higher sector volatility. |
| Active Trading | Positive | Benefitted from attractive new issue pricing and selling overvalued bonds. |
| Security Selection | Positive | Slight benefit from individual securities with advantageous risk/reward characteristics such as below investment grade. |
| Duration/Curve Tilts | Negative | Long duration profile was the primary driver of negative excess return but was slightly offset by the modest barbell curve allocation. |
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Class Y1 | 3.72% | 1.08% | 2.05% |
| Bloomberg Municipal Bond Index | 3.21% | 1.16% | 2.39% |
|
1
|
The inception date was August 30, 2016. Performance information was calculated using the historical performance of Class A shares for the periods prior to August 30, 2016.
|
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $49,318,943 |
| Total number of portfolio holdings | 92 |
| Total advisory fees paid | $203,835 |
| Portfolio turnover rate | 27% |
Graphical Representation of Holdings
Asset Category (% of Net Assets)
| Fixed Rate Revenue Bonds | 75.9% |
| General Obligation Bonds | 21.1% |
| Short-Term Investment Fund | 1.9% |
| Other Assets/Liabilities (Net) | 1.1% |
| Total | 100.0% |
Credit Quality* (% of Fixed Income Securities)
| AAA/Aaa | 1.4% |
| AA/Aa | 47.6% |
| A/A | 37.1% |
| BBB/Baa | 11.7% |
| BB/Ba | 0.9% |
| Not Rated | 1.3% |
| Total | 100.0% |
* Credit quality ratings are from S&P Global Ratings ("S&P") and Moody's Investor Service ("Moody's"). If agency ratings differ, the higher ratings will be used. Where no rating has been assigned, it may be for reasons unrelated to the creditworthiness of the issuer.
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone Core Municipal Bond Fund
INSTITUTIONAL CLASS | TOHIX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone Core Municipal Bond Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Institutional Class | $49 | 0.48% |
Management's Discussion of Fund Performance
The Fund seeks a high level of current income exempt from federal income taxes, consistent with the protection of capital by investing primarily in high-quality, municipal debt issued by U.S. states and their subdivisions, authorities, instrumentalities and corporations, as well as obligations issued by U.S. territories.
The Fund's Institutional Class shares performance was 3.60% for the reporting period.
As a result of significant Treasury volatility, Municipal investors experienced a roller coaster ride as yields moved rapidly up and down throughout the period. Relatively speaking, Municipals held up well versus comparable Treasuries which has kept Municipal/Treasury ratios on the richer side, and credit risk remains well contained for most issuers. Strong summer seasonals helped to drive both yields and spreads lower at the end of the period, which pushed year to date returns on the Bloomberg Municipal Bond Index back to a more palatable percentage.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Sector | Positive | Overweight to A, BBB credits benefitted from spread tightening, added yield carry and higher sector volatility. |
| Active Trading | Positive | Benefitted from attractive new issue pricing and selling overvalued bonds. |
| Security Selection | Positive | Slight benefit from individual securities with advantageous risk/reward characteristics such as below investment grade. |
| Duration/Curve Tilts | Negative | Long duration profile was the primary driver of negative excess return but was slightly offset by the modest barbell curve allocation. |
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Institutional Class1 | 3.60% | 1.10% | 2.07% |
| Bloomberg Municipal Bond Index | 3.21% | 1.16% | 2.39% |
|
1
|
The inception date was August 30, 2016. Performance information was calculated using the historical performance of Class A shares for the periods prior to August 30, 2016.
|
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $49,318,943 |
| Total number of portfolio holdings | 92 |
| Total advisory fees paid | $203,835 |
| Portfolio turnover rate | 27% |
Graphical Representation of Holdings
Asset Category (% of Net Assets)
| Fixed Rate Revenue Bonds | 75.9% |
| General Obligation Bonds | 21.1% |
| Short-Term Investment Fund | 1.9% |
| Other Assets/Liabilities (Net) | 1.1% |
| Total | 100.0% |
Credit Quality* (% of Fixed Income Securities)
| AAA/Aaa | 1.4% |
| AA/Aa | 47.6% |
| A/A | 37.1% |
| BBB/Baa | 11.7% |
| BB/Ba | 0.9% |
| Not Rated | 1.3% |
| Total | 100.0% |
* Credit quality ratings are from S&P Global Ratings ("S&P") and Moody's Investor Service ("Moody's"). If agency ratings differ, the higher ratings will be used. Where no rating has been assigned, it may be for reasons unrelated to the creditworthiness of the issuer.
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone International Value Fund
CLASS A | SWRLX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone International Value Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.This report describes changes to the Fund that occurred during the reporting period.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Class A | $136 | 1.34% |
Management's Discussion of Fund Performance
The Fund seeks long-term growth of capital by investing primarily in equity securities of companies in non-U.S. developed and emerging market countries. The investment philosophy focuses on identifying businesses whose securities are out-of-favor (undervalued) in the marketplace at the time of purchase in light of factors such as the company's earnings, book value, revenues or cash flow but show signs of recent improvement.
The Fund's Class A shares performance was 3.41% (excluding sales loads) for the reporting period.
We continue to observe historically wide valuation spreads between Value and Growth stocks across global markets and the Fund continues to trade at significant discounts relative to the benchmark index. From a style perspective, international Value stocks outperformed Growth over the full 12-month period but underperformed Growth over the month of June 2024, when the current sub-adviser assumed portfolio management responsibilities. During the latter portion of the period, market sentiment drove an ongoing dominance of mega-cap growth stocks during June, which negatively impacted the Fund.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Deep Value bias | Negative | Value was generally out of favor during the 6-month period ending June 2024, representing a relative performance headwind. But over the full 12-month period, Value outperformed Growth. |
| Overweight Smaller Capitalization Stocks relative to the benchmark | Negative | The Fund's smaller capitalization bias detracted given the continued dominance of mega-cap stocks over the period. |
| Sector Allocation | Negative | Sector allocation relative detraction was due to a large underweight to the Financials sector by the previous sub-adviser. |
At the end of the period, the Fund was overweight Financials, Energy, Information Technology, and Materials while underweight Industrials, Consumer Staples, and Communication Services. At the industry level, the Fund was overweight Pharmaceuticals, Machinery, and Insurance while underweight Semiconductor & Semiconductor Equipment, Food Products, and Textiles, Apparel & Luxury Goods.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and any additional indexes and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Class A | -1.79% | 3.54% | 3.07% |
| Class A - excluding sales load | 3.41% | 4.60% | 3.60% |
| MSCI All Country World Ex USA Index | 11.62% | 5.55% | 3.84% |
| MSCI EAFE Index | 11.54% | 6.46% | 4.33% |
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $105,422,346 |
| Total number of portfolio holdings | 81 |
| Total advisory fees paid | $780,451 |
| Portfolio turnover rate | 112% |
Graphical Representation of Holdings
Sector Allocation (% of Net Assets)
| Financials | 24.2% |
| Information Technology | 12.6% |
| Consumer Discretionary | 12.1% |
| Industrials | 10.6% |
| Health Care | 10.1% |
| Materials | 8.7% |
| Energy | 7.5% |
| Consumer Staples | 4.5% |
| Communication Services | 3.3% |
| Utilities | 2.0% |
| Real Estate | 1.3% |
| Short-Term Investment Fund | 1.9% |
| Other Assets/Liabilities (Net) | 1.2% |
| Total | 100.0% |
Geographical Allocation (% of Net Assets)
| Common Stocks | |
| Japan | 16.1% |
| China | 7.5% |
| France | 7.2% |
| United Kingdom | 6.1% |
| Taiwan | 5.6% |
| Germany | 5.2% |
| India | 5.1% |
| South Korea | 4.8% |
| Canada | 4.6% |
| Switzerland | 4.4% |
| Netherlands | 3.9% |
| Italy | 3.7% |
| Other Countries | 22.7% |
| Short-Term Investment Fund | 1.9% |
| Other Assets/Liabilities (Net) | 1.2% |
| Total | 100.0% |
Material Fund Changes
The following is a summary of certain changes made to the Fund since the beginning of the reporting period. For more complete information, you may review the Fund's prospectus which we expect to be available by October 31, 2024, at touchstoneinvestments.com/mutual-fundsor upon request at 800.543.0407. On April 30, 2024, the Fund's name was changed from the Touchstone International Equity Fund to the Touchstone International Value Fund.In connection with the name change, LSV Asset Management was appointed as the Fund's sub-adviser, changes were made to the Fund's investment goal and principal investment strategies to reflect LSV's investment strategy,and the expense limitations were reduced to 1.26%, 1.89%, 0.89%, and 0.79% of average daily net assets for Classes A, C, Y, and Institutional Class shares, respectively.
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone International Value Fund
CLASS C | SWFCX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone International Value Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.This report describes changes to the Fund that occurred during the reporting period.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Class C | $200 | 1.97% |
Management's Discussion of Fund Performance
The Fund seeks long-term growth of capital by investing primarily in equity securities of companies in non-U.S. developed and emerging market countries. The investment philosophy focuses on identifying businesses whose securities are out-of-favor (undervalued) in the marketplace at the time of purchase in light of factors such as the company's earnings, book value, revenues or cash flow but show signs of recent improvement.
The Fund's Class C shares performance was 2.85% (excluding sales loads) for the reporting period.
We continue to observe historically wide valuation spreads between Value and Growth stocks across global markets and the Fund continues to trade at significant discounts relative to the benchmark index. From a style perspective, international Value stocks outperformed Growth over the full 12-month period but underperformed Growth over the month of June 2024, when the current sub-adviser assumed portfolio management responsibilities. During the latter portion of the period, market sentiment drove an ongoing dominance of mega-cap growth stocks during June, which negatively impacted the Fund.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Deep Value bias | Negative | Value was generally out of favor during the 6-month period ending June 2024, representing a relative performance headwind. But over the full 12-month period, Value outperformed Growth. |
| Overweight Smaller Capitalization Stocks relative to the benchmark | Negative | The Fund's smaller capitalization bias detracted given the continued dominance of mega-cap stocks over the period. |
| Sector Allocation | Negative | Sector allocation relative detraction was due to a large underweight to the Financials sector by the previous sub-adviser. |
At the end of the period, the Fund was overweight Financials, Energy, Information Technology, and Materials while underweight Industrials, Consumer Staples, and Communication Services. At the industry level, the Fund was overweight Pharmaceuticals, Machinery, and Insurance while underweight Semiconductor & Semiconductor Equipment, Food Products, and Textiles, Apparel & Luxury Goods.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and any additional indexes and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Class C | 1.85% | 3.80% | 2.74% |
| Class C - excluding sales load | 2.85% | 3.80% | 2.74% |
| MSCI All Country World Ex USA Index | 11.62% | 5.55% | 3.84% |
| MSCI EAFE Index | 11.54% | 6.46% | 4.33% |
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $105,422,346 |
| Total number of portfolio holdings | 81 |
| Total advisory fees paid | $780,451 |
| Portfolio turnover rate | 112% |
Graphical Representation of Holdings
Sector Allocation (% of Net Assets)
| Financials | 24.2% |
| Information Technology | 12.6% |
| Consumer Discretionary | 12.1% |
| Industrials | 10.6% |
| Health Care | 10.1% |
| Materials | 8.7% |
| Energy | 7.5% |
| Consumer Staples | 4.5% |
| Communication Services | 3.3% |
| Utilities | 2.0% |
| Real Estate | 1.3% |
| Short-Term Investment Fund | 1.9% |
| Other Assets/Liabilities (Net) | 1.2% |
| Total | 100.0% |
Geographical Allocation (% of Net Assets)
| Common Stocks | |
| Japan | 16.1% |
| China | 7.5% |
| France | 7.2% |
| United Kingdom | 6.1% |
| Taiwan | 5.6% |
| Germany | 5.2% |
| India | 5.1% |
| South Korea | 4.8% |
| Canada | 4.6% |
| Switzerland | 4.4% |
| Netherlands | 3.9% |
| Italy | 3.7% |
| Other Countries | 22.7% |
| Short-Term Investment Fund | 1.9% |
| Other Assets/Liabilities (Net) | 1.2% |
| Total | 100.0% |
Material Fund Changes
The following is a summary of certain changes made to the Fund since the beginning of the reporting period. For more complete information, you may review the Fund's prospectus which we expect to be available by October 31, 2024, at touchstoneinvestments.com/mutual-fundsor upon request at 800.543.0407. On April 30, 2024, the Fund's name was changed from the Touchstone International Equity Fund to the Touchstone International Value Fund.In connection with the name change, LSV Asset Management was appointed as the Fund's sub-adviser, changes were made to the Fund's investment goal and principal investment strategies to reflect LSV's investment strategy,and the expense limitations were reduced to 1.26%, 1.89%, 0.89%, and 0.79% of average daily net assets for Classes A, C, Y, and Institutional Class shares, respectively.
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone International Value Fund
CLASS Y | SIIEX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone International Value Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.This report describes changes to the Fund that occurred during the reporting period.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Class Y | $99 | 0.97% |
Management's Discussion of Fund Performance
The Fund seeks long-term growth of capital by investing primarily in equity securities of companies in non-U.S. developed and emerging market countries. The investment philosophy focuses on identifying businesses whose securities are out-of-favor (undervalued) in the marketplace at the time of purchase in light of factors such as the company's earnings, book value, revenues or cash flow but show signs of recent improvement.
The Fund's Class Y shares performance was 3.83% for the reporting period.
We continue to observe historically wide valuation spreads between Value and Growth stocks across global markets and the Fund continues to trade at significant discounts relative to the benchmark index. From a style perspective, international Value stocks outperformed Growth over the full 12-month period but underperformed Growth over the month of June 2024, when the current sub-adviser assumed portfolio management responsibilities. During the latter portion of the period, market sentiment drove an ongoing dominance of mega-cap growth stocks during June, which negatively impacted the Fund.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Deep Value bias | Negative | Value was generally out of favor during the 6-month period ending June 2024, representing a relative performance headwind. But over the full 12-month period, Value outperformed Growth. |
| Overweight Smaller Capitalization Stocks relative to the benchmark | Negative | The Fund's smaller capitalization bias detracted given the continued dominance of mega-cap stocks over the period. |
| Sector Allocation | Negative | Sector allocation relative detraction was due to a large underweight to the Financials sector by the previous sub-adviser. |
At the end of the period, the Fund was overweight Financials, Energy, Information Technology, and Materials while underweight Industrials, Consumer Staples, and Communication Services. At the industry level, the Fund was overweight Pharmaceuticals, Machinery, and Insurance while underweight Semiconductor & Semiconductor Equipment, Food Products, and Textiles, Apparel & Luxury Goods.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and any additional indexes and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Class Y | 3.83% | 4.98% | 3.97% |
| MSCI All Country World Ex USA Index | 11.62% | 5.55% | 3.84% |
| MSCI EAFE Index | 11.54% | 6.46% | 4.33% |
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $105,422,346 |
| Total number of portfolio holdings | 81 |
| Total advisory fees paid | $780,451 |
| Portfolio turnover rate | 112% |
Graphical Representation of Holdings
Sector Allocation (% of Net Assets)
| Financials | 24.2% |
| Information Technology | 12.6% |
| Consumer Discretionary | 12.1% |
| Industrials | 10.6% |
| Health Care | 10.1% |
| Materials | 8.7% |
| Energy | 7.5% |
| Consumer Staples | 4.5% |
| Communication Services | 3.3% |
| Utilities | 2.0% |
| Real Estate | 1.3% |
| Short-Term Investment Fund | 1.9% |
| Other Assets/Liabilities (Net) | 1.2% |
| Total | 100.0% |
Geographical Allocation (% of Net Assets)
| Common Stocks | |
| Japan | 16.1% |
| China | 7.5% |
| France | 7.2% |
| United Kingdom | 6.1% |
| Taiwan | 5.6% |
| Germany | 5.2% |
| India | 5.1% |
| South Korea | 4.8% |
| Canada | 4.6% |
| Switzerland | 4.4% |
| Netherlands | 3.9% |
| Italy | 3.7% |
| Other Countries | 22.7% |
| Short-Term Investment Fund | 1.9% |
| Other Assets/Liabilities (Net) | 1.2% |
| Total | 100.0% |
Material Fund Changes
The following is a summary of certain changes made to the Fund since the beginning of the reporting period. For more complete information, you may review the Fund's prospectus which we expect to be available by October 31, 2024, at touchstoneinvestments.com/mutual-fundsor upon request at 800.543.0407. On April 30, 2024, the Fund's name was changed from the Touchstone International Equity Fund to the Touchstone International Value Fund.In connection with the name change, LSV Asset Management was appointed as the Fund's sub-adviser, changes were made to the Fund's investment goal and principal investment strategies to reflect LSV's investment strategy,and the expense limitations were reduced to 1.26%, 1.89%, 0.89%, and 0.79% of average daily net assets for Classes A, C, Y, and Institutional Class shares, respectively.
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone International Value Fund
INSTITUTIONAL CLASS | TOIIX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone International Value Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.This report describes changes to the Fund that occurred during the reporting period.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Institutional Class | $90 | 0.88% |
Management's Discussion of Fund Performance
The Fund seeks long-term growth of capital by investing primarily in equity securities of companies in non-U.S. developed and emerging market countries. The investment philosophy focuses on identifying businesses whose securities are out-of-favor (undervalued) in the marketplace at the time of purchase in light of factors such as the company's earnings, book value, revenues or cash flow but show signs of recent improvement.
The Fund's Institutional Class shares performance was 3.93% for the reporting period.
We continue to observe historically wide valuation spreads between Value and Growth stocks across global markets and the Fund continues to trade at significant discounts relative to the benchmark index. From a style perspective, international Value stocks outperformed Growth over the full 12-month period but underperformed Growth over the month of June 2024, when the current sub-adviser assumed portfolio management responsibilities. During the latter portion of the period, market sentiment drove an ongoing dominance of mega-cap growth stocks during June, which negatively impacted the Fund.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Deep Value bias | Negative | Value was generally out of favor during the 6-month period ending June 2024, representing a relative performance headwind. But over the full 12-month period, Value outperformed Growth. |
| Overweight Smaller Capitalization Stocks relative to the benchmark | Negative | The Fund's smaller capitalization bias detracted given the continued dominance of mega-cap stocks over the period. |
| Sector Allocation | Negative | Sector allocation relative detraction was due to a large underweight to the Financials sector by the previous sub-adviser. |
At the end of the period, the Fund was overweight Financials, Energy, Information Technology, and Materials while underweight Industrials, Consumer Staples, and Communication Services. At the industry level, the Fund was overweight Pharmaceuticals, Machinery, and Insurance while underweight Semiconductor & Semiconductor Equipment, Food Products, and Textiles, Apparel & Luxury Goods.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and any additional indexes and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Institutional Class1 | 3.93% | 5.09% | 4.03% |
| MSCI All Country World Ex USA Index | 11.62% | 5.55% | 3.84% |
| MSCI EAFE Index | 11.54% | 6.46% | 4.33% |
|
1
|
The inception date was October 30, 2017. Performance information was calculated using the historical performance of Class A shares for the periods prior to October 30, 2017.
|
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $105,422,346 |
| Total number of portfolio holdings | 81 |
| Total advisory fees paid | $780,451 |
| Portfolio turnover rate | 112% |
Graphical Representation of Holdings
Sector Allocation (% of Net Assets)
| Financials | 24.2% |
| Information Technology | 12.6% |
| Consumer Discretionary | 12.1% |
| Industrials | 10.6% |
| Health Care | 10.1% |
| Materials | 8.7% |
| Energy | 7.5% |
| Consumer Staples | 4.5% |
| Communication Services | 3.3% |
| Utilities | 2.0% |
| Real Estate | 1.3% |
| Short-Term Investment Fund | 1.9% |
| Other Assets/Liabilities (Net) | 1.2% |
| Total | 100.0% |
Geographical Allocation (% of Net Assets)
| Common Stocks | |
| Japan | 16.1% |
| China | 7.5% |
| France | 7.2% |
| United Kingdom | 6.1% |
| Taiwan | 5.6% |
| Germany | 5.2% |
| India | 5.1% |
| South Korea | 4.8% |
| Canada | 4.6% |
| Switzerland | 4.4% |
| Netherlands | 3.9% |
| Italy | 3.7% |
| Other Countries | 22.7% |
| Short-Term Investment Fund | 1.9% |
| Other Assets/Liabilities (Net) | 1.2% |
| Total | 100.0% |
Material Fund Changes
The following is a summary of certain changes made to the Fund since the beginning of the reporting period. For more complete information, you may review the Fund's prospectus which we expect to be available by October 31, 2024, at touchstoneinvestments.com/mutual-fundsor upon request at 800.543.0407. On April 30, 2024, the Fund's name was changed from the Touchstone International Equity Fund to the Touchstone International Value Fund.In connection with the name change, LSV Asset Management was appointed as the Fund's sub-adviser, changes were made to the Fund's investment goal and principal investment strategies to reflect LSV's investment strategy,and the expense limitations were reduced to 1.26%, 1.89%, 0.89%, and 0.79% of average daily net assets for Classes A, C, Y, and Institutional Class shares, respectively.
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone Large Cap Focused Fund
CLASS A | SENCX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone Large Cap Focused Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Class A | $109 | 1.00% |
Management's Discussion of Fund Performance
The Fund seeks to provide investors with capital appreciation by investing in large capitalization equity securities that are trading below what is believed to be the estimate of their 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). The sub-adviser believes that the strongest barrier to entry is the combination of economies of scale and high customer loyalty.
The Fund's Class A shares performance was 17.79% (excluding sales loads) for the reporting period.
U.S. equities rallied over the last 12-month period ended June 30, 2024 as economic data generally remained strong during the period despite the significant rate hike cycle that began in early 2022. In the back half of the last 12-month period, stocks benefitted from optimism around a peak in the Federal Reserve's tightening schedule amidst some positive developments on the inflation front.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Consumer Discretionary | Contributed | Stock selection within Consumer Discretionary was a high contributor to relative performance. |
| Communication Services | Contributed | The largest strategy overweight allocation to the sector was a high contributor. Stock selection within the sector was also a positive contributor to relative performance. |
| Information Technology | Detracted | Stock selection within Information Technology was the largest detractor to relative performance. |
The most significant portfolio positioning changes over the reporting period included moving from an underweight to an overweight in the Materials sector, primarily due to the addition of International Flavors and Fragrances Inc. and reducing the cash position over the period.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and any additional indexes and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Class A | 11.89% | 13.38% | 11.98% |
| Class A - excluding sales load | 17.79% | 14.55% | 12.55% |
| Russell 3000® Index | 23.13% | 14.14% | 12.15% |
| Russell 1000® Index | 23.88% | 14.61% | 12.51% |
| S&P 500® Index | 24.56% | 15.05% | 12.86% |
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $3,359,471,496 |
| Total number of portfolio holdings | 47 |
| Total advisory fees paid | $16,065,472 |
| Portfolio turnover rate | 6% |
Graphical Representation of Holdings
Sector Allocation (% of Net Assets)
| Information Technology | 29.8% |
| Communication Services | 15.3% |
| Financials | 13.3% |
| Health Care | 12.5% |
| Consumer Discretionary | 7.9% |
| Industrials | 7.5% |
| Consumer Staples | 3.9% |
| Energy | 2.6% |
| Materials | 2.5% |
| Real Estate | 1.1% |
| Short-Term Investment Fund | 3.6% |
| Other Assets/Liabilities (Net) | 0.0% |
| Total | 100.0% |
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone Large Cap Focused Fund
CLASS C | SCSCX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone Large Cap Focused Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Class C | $195 | 1.80% |
Management's Discussion of Fund Performance
The Fund seeks to provide investors with capital appreciation by investing in large capitalization equity securities that are trading below what is believed to be the estimate of their 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). The sub-adviser believes that the strongest barrier to entry is the combination of economies of scale and high customer loyalty.
The Fund's Class C shares performance was 16.84% (excluding sales loads) for the reporting period.
U.S. equities rallied over the last 12-month period ended June 30, 2024 as economic data generally remained strong during the period despite the significant rate hike cycle that began in early 2022. In the back half of the last 12-month period, stocks benefitted from optimism around a peak in the Federal Reserve's tightening schedule amidst some positive developments on the inflation front.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Consumer Discretionary | Contributed | Stock selection within Consumer Discretionary was a high contributor to relative performance. |
| Communication Services | Contributed | The largest strategy overweight allocation to the sector was a high contributor. Stock selection within the sector was also a positive contributor to relative performance. |
| Information Technology | Detracted | Stock selection within Information Technology was the largest detractor to relative performance. |
The most significant portfolio positioning changes over the reporting period included moving from an underweight to an overweight in the Materials sector, primarily due to the addition of International Flavors and Fragrances Inc. and reducing the cash position over the period.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and any additional indexes and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Class C | 15.84% | 13.64% | 11.84% |
| Class C - excluding sales load | 16.84% | 13.64% | 11.84% |
| Russell 3000® Index | 23.13% | 14.14% | 12.15% |
| Russell 1000® Index | 23.88% | 14.61% | 12.51% |
| S&P 500® Index | 24.56% | 15.05% | 12.86% |
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $3,359,471,496 |
| Total number of portfolio holdings | 47 |
| Total advisory fees paid | $16,065,472 |
| Portfolio turnover rate | 6% |
Graphical Representation of Holdings
Sector Allocation (% of Net Assets)
| Information Technology | 29.8% |
| Communication Services | 15.3% |
| Financials | 13.3% |
| Health Care | 12.5% |
| Consumer Discretionary | 7.9% |
| Industrials | 7.5% |
| Consumer Staples | 3.9% |
| Energy | 2.6% |
| Materials | 2.5% |
| Real Estate | 1.1% |
| Short-Term Investment Fund | 3.6% |
| Other Assets/Liabilities (Net) | 0.0% |
| Total | 100.0% |
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone Large Cap Focused Fund
CLASS Y | SICWX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone Large Cap Focused Fund ("Fund") for the period July 1, 2023 to June 30, 2024. You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Class Y | $80 | 0.73% |
Management's Discussion of Fund Performance
The Fund seeks to provide investors with capital appreciation by investing in large capitalization equity securities that are trading below what is believed to be the estimate of their 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). The sub-adviser believes that the strongest barrier to entry is the combination of economies of scale and high customer loyalty.
The Fund's Class Y shares performance was 18.11% for the reporting period.
U.S. equities rallied over the last 12-month period ended June 30, 2024 as economic data generally remained strong during the period despite the significant rate hike cycle that began in early 2022. In the back half of the last 12-month period, stocks benefitted from optimism around a peak in the Federal Reserve's tightening schedule amidst some positive developments on the inflation front.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Consumer Discretionary | Contributed | Stock selection within Consumer Discretionary was a high contributor to relative performance. |
| Communication Services | Contributed | The largest strategy overweight allocation to the sector was a high contributor. Stock selection within the sector was also a positive contributor to relative performance. |
| Information Technology | Detracted | Stock selection within Information Technology was the largest detractor to relative performance. |
The most significant portfolio positioning changes over the reporting period included moving from an underweight to an overweight in the Materials sector, primarily due to the addition of International Flavors and Fragrances Inc. and reducing the cash position over the period.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and any additional indexes and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Class Y | 18.11% | 14.86% | 12.86% |
| Russell 3000® Index | 23.13% | 14.14% | 12.15% |
| Russell 1000® Index | 23.88% | 14.61% | 12.51% |
| S&P 500® Index | 24.56% | 15.05% | 12.86% |
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $3,359,471,496 |
| Total number of portfolio holdings | 47 |
| Total advisory fees paid | $16,065,472 |
| Portfolio turnover rate | 6% |
Graphical Representation of Holdings
Sector Allocation (% of Net Assets)
| Information Technology | 29.8% |
| Communication Services | 15.3% |
| Financials | 13.3% |
| Health Care | 12.5% |
| Consumer Discretionary | 7.9% |
| Industrials | 7.5% |
| Consumer Staples | 3.9% |
| Energy | 2.6% |
| Materials | 2.5% |
| Real Estate | 1.1% |
| Short-Term Investment Fund | 3.6% |
| Other Assets/Liabilities (Net) | 0.0% |
| Total | 100.0% |
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone Large Cap Focused Fund
INSTITUTIONAL CLASS | SCRLX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone Large Cap Focused Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Institutional Class | $76 | 0.70% |
Management's Discussion of Fund Performance
The Fund seeks to provide investors with capital appreciation by investing in large capitalization equity securities that are trading below what is believed to be the estimate of their 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). The sub-adviser believes that the strongest barrier to entry is the combination of economies of scale and high customer loyalty.
The Fund's Institutional Class shares performance was 18.13% for the reporting period.
U.S. equities rallied over the last 12-month period ended June 30, 2024 as economic data generally remained strong during the period despite the significant rate hike cycle that began in early 2022. In the back half of the last 12-month period, stocks benefitted from optimism around a peak in the Federal Reserve's tightening schedule amidst some positive developments on the inflation front.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Consumer Discretionary | Contributed | Stock selection within Consumer Discretionary was a high contributor to relative performance. |
| Communication Services | Contributed | The largest strategy overweight allocation to the sector was a high contributor. Stock selection within the sector was also a positive contributor to relative performance. |
| Information Technology | Detracted | Stock selection within Information Technology was the largest detractor to relative performance. |
The most significant portfolio positioning changes over the reporting period included moving from an underweight to an overweight in the Materials sector, primarily due to the addition of International Flavors and Fragrances Inc. and reducing the cash position over the period.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and any additional indexes and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Institutional Class1 | 18.13% | 14.89% | 12.90% |
| Russell 3000® Index | 23.13% | 14.14% | 12.15% |
| Russell 1000® Index | 23.88% | 14.61% | 12.51% |
| S&P 500® Index | 24.56% | 15.05% | 12.86% |
|
1
|
The inception date was December 23, 2014. Performance information was calculated using the historical performance of Class A shares for the periods prior to December 23, 2014.
|
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $3,359,471,496 |
| Total number of portfolio holdings | 47 |
| Total advisory fees paid | $16,065,472 |
| Portfolio turnover rate | 6% |
Graphical Representation of Holdings
Sector Allocation (% of Net Assets)
| Information Technology | 29.8% |
| Communication Services | 15.3% |
| Financials | 13.3% |
| Health Care | 12.5% |
| Consumer Discretionary | 7.9% |
| Industrials | 7.5% |
| Consumer Staples | 3.9% |
| Energy | 2.6% |
| Materials | 2.5% |
| Real Estate | 1.1% |
| Short-Term Investment Fund | 3.6% |
| Other Assets/Liabilities (Net) | 0.0% |
| Total | 100.0% |
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone Large Cap Focused Fund
CLASS R6 | TSRLX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone Large Cap Focused Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Class R6 | $72 | 0.66% |
Management's Discussion of Fund Performance
The Fund seeks to provide investors with capital appreciation by investing in large capitalization equity securities that are trading below what is believed to be the estimate of their 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). The sub-adviser believes that the strongest barrier to entry is the combination of economies of scale and high customer loyalty.
The Fund's Class R6 shares performance was 18.18% for the reporting period.
U.S. equities rallied over the last 12-month period ended June 30, 2024 as economic data generally remained strong during the period despite the significant rate hike cycle that began in early 2022. In the back half of the last 12-month period, stocks benefitted from optimism around a peak in the Federal Reserve's tightening schedule amidst some positive developments on the inflation front.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Consumer Discretionary | Contributed | Stock selection within Consumer Discretionary was a high contributor to relative performance. |
| Communication Services | Contributed | The largest strategy overweight allocation to the sector was a high contributor. Stock selection within the sector was also a positive contributor to relative performance. |
| Information Technology | Detracted | Stock selection within Information Technology was the largest detractor to relative performance. |
The most significant portfolio positioning changes over the reporting period included moving from an underweight to an overweight in the Materials sector, primarily due to the addition of International Flavors and Fragrances Inc. and reducing the cash position over the period.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and any additional indexes and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Class R61 | 18.18% | 14.76% | 12.66% |
| Russell 3000® Index | 23.13% | 14.14% | 12.15% |
| Russell 1000® Index | 23.88% | 14.61% | 12.51% |
| S&P 500® Index | 24.56% | 15.05% | 12.86% |
|
1
|
The inception date was October 28, 2021. Performance information was calculated using the historical performance of Class A shares for the periods prior to October 28, 2021.
|
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $3,359,471,496 |
| Total number of portfolio holdings | 47 |
| Total advisory fees paid | $16,065,472 |
| Portfolio turnover rate | 6% |
Graphical Representation of Holdings
Sector Allocation (% of Net Assets)
| Information Technology | 29.8% |
| Communication Services | 15.3% |
| Financials | 13.3% |
| Health Care | 12.5% |
| Consumer Discretionary | 7.9% |
| Industrials | 7.5% |
| Consumer Staples | 3.9% |
| Energy | 2.6% |
| Materials | 2.5% |
| Real Estate | 1.1% |
| Short-Term Investment Fund | 3.6% |
| Other Assets/Liabilities (Net) | 0.0% |
| Total | 100.0% |
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone Large Cap Fund
CLASS A | TACLX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone Large Cap Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Class A | $109 | 1.04% |
Management's Discussion of Fund Performance
The Fund seeks long-term capital growth by investing primarily in common stocks of large-capitalization U.S. listed companies. The Fund 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.
The Fund's Class A shares performance was 9.06% (excluding sales loads) for the reporting period.
Over the past 12 months, Growth, Volatility, and Momentum factors were the best performing factors in the benchmark while Value, Yield, and Quality factors lagged.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Stock Selection | Negative | Not owning most of the AI-related and large cap growth stocks presented a headwind during the period. In addition, certain names held by the Fund underperformed the market for idiosyncratic reasons. |
| Sector Allocation | Negative | The best performing sectors within the benchmark were Communication Services and Information Technology; however, the Fund was underweight both sectors thus representing a relative performance headwind. While overall sector allocation detracted from relative performance, underweight positions in Health Care, Real Estate, and Utilities added to relative performance during the period. |
| Style Factors | Negative | An overweight to Value, Yield, and Quality factors generally presented headwinds. Less exposure than the benchmark to Growth and Momentum factors, as well as the concentration of the benchmark in a few companies benefitting from excitement around AI spending contributed to the underperformance. |
During the past 12-month period, we added new positions in TE Connectivity Ltd. (Information Technology sector) and Albemarle Corporation (Materials sector), added to positions in Air Products and Chemicals, Inc. (Materials sector), Norfolk Southern Corporation (Industrials sector), and Nestle SA (Consumer Staples sector), trimmed positions in Martin Marietta Materials Inc. (Materials sector), Old Dominion Freight Line, Inc. (Industrials sector), and Apple Inc. (Information Technology sector), and exited Albemarle Corporation (Materials sector).
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and any additional indexes and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | Since Inception1 |
| Class A | 3.58% | 7.74% | 7.62% |
| Class A - excluding sales load | 9.06% | 8.85% | 8.26% |
| Russell 3000® Index | 23.13% | 14.14% | 12.14% |
| Russell 1000® Index | 23.88% | 14.61% | 12.49% |
|
1
|
The inception date of the Fund was July 9, 2014. The returns of the indexes listed above are based on the inception date of the Fund.
|
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $279,868,054 |
| Total number of portfolio holdings | 30 |
| Total advisory fees paid | $1,643,493 |
| Portfolio turnover rate | 6% |
Graphical Representation of Holdings
Sector Allocation (% of Net Assets)
| Financials | 27.0% |
| Information Technology | 13.6% |
| Industrials | 13.0% |
| Consumer Discretionary | 12.4% |
| Materials | 11.0% |
| Consumer Staples | 8.4% |
| Communication Services | 7.5% |
| Health Care | 3.2% |
| Energy | 2.7% |
| Short-Term Investment Fund | 1.2% |
| Other Assets/Liabilities (Net) | (0.0)% |
| Total | 100.0% |
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone Large Cap Fund
CLASS C | TFCCX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone Large Cap Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Class C | $186 | 1.79% |
Management's Discussion of Fund Performance
The Fund seeks long-term capital growth by investing primarily in common stocks of large-capitalization U.S. listed companies. The Fund 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.
The Fund's Class C shares performance was 8.20% (excluding sales loads) for the reporting period.
Over the past 12 months, Growth, Volatility, and Momentum factors were the best performing factors in the benchmark while Value, Yield, and Quality factors lagged.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Stock Selection | Negative | Not owning most of the AI-related and large cap growth stocks presented a headwind during the period. In addition, certain names held by the Fund underperformed the market for idiosyncratic reasons. |
| Sector Allocation | Negative | The best performing sectors within the benchmark were Communication Services and Information Technology; however, the Fund was underweight both sectors thus representing a relative performance headwind. While overall sector allocation detracted from relative performance, underweight positions in Health Care, Real Estate, and Utilities added to relative performance during the period. |
| Style Factors | Negative | An overweight to Value, Yield, and Quality factors generally presented headwinds. Less exposure than the benchmark to Growth and Momentum factors, as well as the concentration of the benchmark in a few companies benefitting from excitement around AI spending contributed to the underperformance. |
During the past 12-month period, we added new positions in TE Connectivity Ltd. (Information Technology sector) and Albemarle Corporation (Materials sector), added to positions in Air Products and Chemicals, Inc. (Materials sector), Norfolk Southern Corporation (Industrials sector), and Nestle SA (Consumer Staples sector), trimmed positions in Martin Marietta Materials Inc. (Materials sector), Old Dominion Freight Line, Inc. (Industrials sector), and Apple Inc. (Information Technology sector), and exited Albemarle Corporation (Materials sector).
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and any additional indexes and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | Since Inception1 |
| Class C | 7.20% | 8.03% | 7.63% |
| Class C - excluding sales load | 8.20% | 8.03% | 7.63% |
| Russell 3000® Index | 23.13% | 14.14% | 12.14% |
| Russell 1000® Index | 23.88% | 14.61% | 12.49% |
|
1
|
The inception date of the Fund was July 9, 2014. The returns of the indexes listed above are based on the inception date of the Fund.
|
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $279,868,054 |
| Total number of portfolio holdings | 30 |
| Total advisory fees paid | $1,643,493 |
| Portfolio turnover rate | 6% |
Graphical Representation of Holdings
Sector Allocation (% of Net Assets)
| Financials | 27.0% |
| Information Technology | 13.6% |
| Industrials | 13.0% |
| Consumer Discretionary | 12.4% |
| Materials | 11.0% |
| Consumer Staples | 8.4% |
| Communication Services | 7.5% |
| Health Care | 3.2% |
| Energy | 2.7% |
| Short-Term Investment Fund | 1.2% |
| Other Assets/Liabilities (Net) | (0.0)% |
| Total | 100.0% |
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone Large Cap Fund
CLASS Y | TLCYX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone Large Cap Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Class Y | $83 | 0.79% |
Management's Discussion of Fund Performance
The Fund seeks long-term capital growth by investing primarily in common stocks of large-capitalization U.S. listed companies. The Fund 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.
The Fund's Class Y shares performance was 9.28% for the reporting period.
Over the past 12 months, Growth, Volatility, and Momentum factors were the best performing factors in the benchmark while Value, Yield, and Quality factors lagged.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Stock Selection | Negative | Not owning most of the AI-related and large cap growth stocks presented a headwind during the period. In addition, certain names held by the Fund underperformed the market for idiosyncratic reasons. |
| Sector Allocation | Negative | The best performing sectors within the benchmark were Communication Services and Information Technology; however, the Fund was underweight both sectors thus representing a relative performance headwind. While overall sector allocation detracted from relative performance, underweight positions in Health Care, Real Estate, and Utilities added to relative performance during the period. |
| Style Factors | Negative | An overweight to Value, Yield, and Quality factors generally presented headwinds. Less exposure than the benchmark to Growth and Momentum factors, as well as the concentration of the benchmark in a few companies benefitting from excitement around AI spending contributed to the underperformance. |
During the past 12-month period, we added new positions in TE Connectivity Ltd. (Information Technology sector) and Albemarle Corporation (Materials sector), added to positions in Air Products and Chemicals, Inc. (Materials sector), Norfolk Southern Corporation (Industrials sector), and Nestle SA (Consumer Staples sector), trimmed positions in Martin Marietta Materials Inc. (Materials sector), Old Dominion Freight Line, Inc. (Industrials sector), and Apple Inc. (Information Technology sector), and exited Albemarle Corporation (Materials sector).
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and any additional indexes and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | Since Inception1 |
| Class Y | 9.28% | 9.11% | 8.53% |
| Russell 3000® Index | 23.13% | 14.14% | 12.14% |
| Russell 1000® Index | 23.88% | 14.61% | 12.49% |
|
1
|
The inception date of the Fund was July 9, 2014. The returns of the indexes listed above are based on the inception date of the Fund.
|
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $279,868,054 |
| Total number of portfolio holdings | 30 |
| Total advisory fees paid | $1,643,493 |
| Portfolio turnover rate | 6% |
Graphical Representation of Holdings
Sector Allocation (% of Net Assets)
| Financials | 27.0% |
| Information Technology | 13.6% |
| Industrials | 13.0% |
| Consumer Discretionary | 12.4% |
| Materials | 11.0% |
| Consumer Staples | 8.4% |
| Communication Services | 7.5% |
| Health Care | 3.2% |
| Energy | 2.7% |
| Short-Term Investment Fund | 1.2% |
| Other Assets/Liabilities (Net) | (0.0)% |
| Total | 100.0% |
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone Large Cap Fund
INSTITUTIONAL CLASS | TLCIX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone Large Cap Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Institutional Class | $72 | 0.69% |
Management's Discussion of Fund Performance
The Fund seeks long-term capital growth by investing primarily in common stocks of large-capitalization U.S. listed companies. The Fund 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.
The Fund's Institutional Class shares performance was 9.45% for the reporting period.
Over the past 12 months, Growth, Volatility, and Momentum factors were the best performing factors in the benchmark while Value, Yield, and Quality factors lagged.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Stock Selection | Negative | Not owning most of the AI-related and large cap growth stocks presented a headwind during the period. In addition, certain names held by the Fund underperformed the market for idiosyncratic reasons. |
| Sector Allocation | Negative | The best performing sectors within the benchmark were Communication Services and Information Technology; however, the Fund was underweight both sectors thus representing a relative performance headwind. While overall sector allocation detracted from relative performance, underweight positions in Health Care, Real Estate, and Utilities added to relative performance during the period. |
| Style Factors | Negative | An overweight to Value, Yield, and Quality factors generally presented headwinds. Less exposure than the benchmark to Growth and Momentum factors, as well as the concentration of the benchmark in a few companies benefitting from excitement around AI spending contributed to the underperformance. |
During the past 12-month period, we added new positions in TE Connectivity Ltd. (Information Technology sector) and Albemarle Corporation (Materials sector), added to positions in Air Products and Chemicals, Inc. (Materials sector), Norfolk Southern Corporation (Industrials sector), and Nestle SA (Consumer Staples sector), trimmed positions in Martin Marietta Materials Inc. (Materials sector), Old Dominion Freight Line, Inc. (Industrials sector), and Apple Inc. (Information Technology sector), and exited Albemarle Corporation (Materials sector).
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and any additional indexes and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | Since Inception1 |
| Institutional Class | 9.45% | 9.23% | 8.64% |
| Russell 3000® Index | 23.13% | 14.14% | 12.14% |
| Russell 1000® Index | 23.88% | 14.61% | 12.49% |
|
1
|
The inception date of the Fund was July 9, 2014. The returns of the indexes listed above are based on the inception date of the Fund.
|
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $279,868,054 |
| Total number of portfolio holdings | 30 |
| Total advisory fees paid | $1,643,493 |
| Portfolio turnover rate | 6% |
Graphical Representation of Holdings
Sector Allocation (% of Net Assets)
| Financials | 27.0% |
| Information Technology | 13.6% |
| Industrials | 13.0% |
| Consumer Discretionary | 12.4% |
| Materials | 11.0% |
| Consumer Staples | 8.4% |
| Communication Services | 7.5% |
| Health Care | 3.2% |
| Energy | 2.7% |
| Short-Term Investment Fund | 1.2% |
| Other Assets/Liabilities (Net) | (0.0)% |
| Total | 100.0% |
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone Large Company Growth Fund
CLASS A | TSAGX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone Large Company Growth Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Class A | $129 | 1.07% |
Management's Discussion of Fund Performance
The Fund seeks long-term capital appreciation by primarily investing in U.S. equity securities of large capitalization companies believed to offer the best opportunity for reliable growth at attractive stock valuations. The Fund utilizes a bottom-up idea-driven growth style with a long-term investment horizon. It seeks to identify companies, which are believed to exhibit certain quality characteristics, including predictable growth, solid fundamentals, attractive profitability and successful management.
The Fund's Class A shares performance was 41.47% (excluding sales loads) for the reporting period.
In the U.S., the economy continues to generate a nearly perfect scenario of steady growth, full employment and falling inflation. With the war on inflation all but won, interest rates on the long end should remain largely stable while U.S. rate cuts are likely at some point this year, perhaps beginning in the third quarter. Additionally, the market has been driven by businesses with strong balance sheets, strong profitability and for many, an artificial intelligence (AI) tailwind that may last for a number of years.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Technology | Positive | Technology sector stock selections and overweight versus the benchmark led to relative outperformance in the period. |
| Consumer Discretionary | Positive | Consumer Discretionary sector stock selections and underweight versus the benchmark also contributed to relative outperformance in the period. |
| Financials | Negative | Financials sector stock selections and overweight versus the benchmark detracted from relative performance in the period. |
There were no changes made to the Fund's positioning during the 12-month period. Over the reporting period, our focus has been to maintain the portfolio in what we believe is a high quality, predictable group of stellar growth companies, often with leadership positions in critical AI technologies, that we anticipate holding for many years.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and any additional indexes and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Class A1 | 34.39% | 14.72% | 13.63% |
| Class A - excluding sales load | 41.47% | 15.90% | 14.31% |
| Russell 3000® Index | 23.13% | 14.14% | 12.15% |
| Russell 1000® Growth Index | 33.48% | 19.34% | 16.33% |
| S&P 500® Index | 24.56% | 15.05% | 12.86% |
|
1
|
The inception date was August 15, 2016. Performance information was calculated using the historical performance of Institutional Class shares for the periods prior to August 15, 2016.
|
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $153,115,776 |
| Total number of portfolio holdings | 26 |
| Total advisory fees paid | $814,375 |
| Portfolio turnover rate | 39% |
Graphical Representation of Holdings
Sector Allocation (% of Net Assets)
| Information Technology | 57.8% |
| Communication Services | 13.1% |
| Financials | 8.9% |
| Consumer Discretionary | 8.5% |
| Health Care | 5.5% |
| Industrials | 4.1% |
| Consumer Staples | 1.9% |
| Short-Term Investment Fund | 1.3% |
| Other Assets/Liabilities (Net) | (1.1)% |
| Total | 100.0% |
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone Large Company Growth Fund
CLASS C | TCGLX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone Large Company Growth Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Class C | $219 | 1.82% |
Management's Discussion of Fund Performance
The Fund seeks long-term capital appreciation by primarily investing in U.S. equity securities of large capitalization companies believed to offer the best opportunity for reliable growth at attractive stock valuations. The Fund utilizes a bottom-up idea-driven growth style with a long-term investment horizon. It seeks to identify companies, which are believed to exhibit certain quality characteristics, including predictable growth, solid fundamentals, attractive profitability and successful management.
The Fund's Class C shares performance was 40.43% (excluding sales loads) for the reporting period.
In the U.S., the economy continues to generate a nearly perfect scenario of steady growth, full employment and falling inflation. With the war on inflation all but won, interest rates on the long end should remain largely stable while U.S. rate cuts are likely at some point this year, perhaps beginning in the third quarter. Additionally, the market has been driven by businesses with strong balance sheets, strong profitability and for many, an artificial intelligence (AI) tailwind that may last for a number of years.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Technology | Positive | Technology sector stock selections and overweight versus the benchmark led to relative outperformance in the period. |
| Consumer Discretionary | Positive | Consumer Discretionary sector stock selections and underweight versus the benchmark also contributed to relative outperformance in the period. |
| Financials | Negative | Financials sector stock selections and overweight versus the benchmark detracted from relative performance in the period. |
There were no changes made to the Fund's positioning during the 12-month period. Over the reporting period, our focus has been to maintain the portfolio in what we believe is a high quality, predictable group of stellar growth companies, often with leadership positions in critical AI technologies, that we anticipate holding for many years.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and any additional indexes and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Class C1 | 39.43% | 15.04% | 13.45% |
| Class C - excluding sales load | 40.43% | 15.04% | 13.45% |
| Russell 3000® Index | 23.13% | 14.14% | 12.15% |
| Russell 1000® Growth Index | 33.48% | 19.34% | 16.33% |
| S&P 500® Index | 24.56% | 15.05% | 12.86% |
|
1
|
The inception date was August 15, 2016. Performance information was calculated using the historical performance of Institutional Class shares for the periods prior to August 15, 2016.
|
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $153,115,776 |
| Total number of portfolio holdings | 26 |
| Total advisory fees paid | $814,375 |
| Portfolio turnover rate | 39% |
Graphical Representation of Holdings
Sector Allocation (% of Net Assets)
| Information Technology | 57.8% |
| Communication Services | 13.1% |
| Financials | 8.9% |
| Consumer Discretionary | 8.5% |
| Health Care | 5.5% |
| Industrials | 4.1% |
| Consumer Staples | 1.9% |
| Short-Term Investment Fund | 1.3% |
| Other Assets/Liabilities (Net) | (1.1)% |
| Total | 100.0% |
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone Large Company Growth Fund
CLASS Y | TLGYX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone Large Company Growth Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Class Y | $99 | 0.82% |
Management's Discussion of Fund Performance
The Fund seeks long-term capital appreciation by primarily investing in U.S. equity securities of large capitalization companies believed to offer the best opportunity for reliable growth at attractive stock valuations. The Fund utilizes a bottom-up idea-driven growth style with a long-term investment horizon. It seeks to identify companies, which are believed to exhibit certain quality characteristics, including predictable growth, solid fundamentals, attractive profitability and successful management.
The Fund's Class Y shares performance was 41.85% for the reporting period.
In the U.S., the economy continues to generate a nearly perfect scenario of steady growth, full employment and falling inflation. With the war on inflation all but won, interest rates on the long end should remain largely stable while U.S. rate cuts are likely at some point this year, perhaps beginning in the third quarter. Additionally, the market has been driven by businesses with strong balance sheets, strong profitability and for many, an artificial intelligence (AI) tailwind that may last for a number of years.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Technology | Positive | Technology sector stock selections and overweight versus the benchmark led to relative outperformance in the period. |
| Consumer Discretionary | Positive | Consumer Discretionary sector stock selections and underweight versus the benchmark also contributed to relative outperformance in the period. |
| Financials | Negative | Financials sector stock selections and overweight versus the benchmark detracted from relative performance in the period. |
There were no changes made to the Fund's positioning during the 12-month period. Over the reporting period, our focus has been to maintain the portfolio in what we believe is a high quality, predictable group of stellar growth companies, often with leadership positions in critical AI technologies, that we anticipate holding for many years.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and any additional indexes and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Class Y1 | 41.85% | 16.19% | 14.59% |
| Russell 3000® Index | 23.13% | 14.14% | 12.15% |
| Russell 1000® Growth Index | 33.48% | 19.34% | 16.33% |
| S&P 500® Index | 24.56% | 15.05% | 12.86% |
|
1
|
The inception date was August 15, 2016. Performance information was calculated using the historical performance of Institutional Class shares for the periods prior to August 15, 2016.
|
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $153,115,776 |
| Total number of portfolio holdings | 26 |
| Total advisory fees paid | $814,375 |
| Portfolio turnover rate | 39% |
Graphical Representation of Holdings
Sector Allocation (% of Net Assets)
| Information Technology | 57.8% |
| Communication Services | 13.1% |
| Financials | 8.9% |
| Consumer Discretionary | 8.5% |
| Health Care | 5.5% |
| Industrials | 4.1% |
| Consumer Staples | 1.9% |
| Short-Term Investment Fund | 1.3% |
| Other Assets/Liabilities (Net) | (1.1)% |
| Total | 100.0% |
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone Large Company Growth Fund
INSTITUTIONAL CLASS | DSMLX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone Large Company Growth Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Institutional Class | $87 | 0.72% |
Management's Discussion of Fund Performance
The Fund seeks long-term capital appreciation by primarily investing in U.S. equity securities of large capitalization companies believed to offer the best opportunity for reliable growth at attractive stock valuations. The Fund utilizes a bottom-up idea-driven growth style with a long-term investment horizon. It seeks to identify companies, which are believed to exhibit certain quality characteristics, including predictable growth, solid fundamentals, attractive profitability and successful management.
The Fund's Institutional Class shares performance was 41.99% for the reporting period.
In the U.S., the economy continues to generate a nearly perfect scenario of steady growth, full employment and falling inflation. With the war on inflation all but won, interest rates on the long end should remain largely stable while U.S. rate cuts are likely at some point this year, perhaps beginning in the third quarter. Additionally, the market has been driven by businesses with strong balance sheets, strong profitability and for many, an artificial intelligence (AI) tailwind that may last for a number of years.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Technology | Positive | Technology sector stock selections and overweight versus the benchmark led to relative outperformance in the period. |
| Consumer Discretionary | Positive | Consumer Discretionary sector stock selections and underweight versus the benchmark also contributed to relative outperformance in the period. |
| Financials | Negative | Financials sector stock selections and overweight versus the benchmark detracted from relative performance in the period. |
There were no changes made to the Fund's positioning during the 12-month period. Over the reporting period, our focus has been to maintain the portfolio in what we believe is a high quality, predictable group of stellar growth companies, often with leadership positions in critical AI technologies, that we anticipate holding for many years.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and any additional indexes and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Institutional Class | 41.99% | 16.31% | 14.69% |
| Russell 3000® Index | 23.13% | 14.14% | 12.15% |
| Russell 1000® Growth Index | 33.48% | 19.34% | 16.33% |
| S&P 500® Index | 24.56% | 15.05% | 12.86% |
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $153,115,776 |
| Total number of portfolio holdings | 26 |
| Total advisory fees paid | $814,375 |
| Portfolio turnover rate | 39% |
Graphical Representation of Holdings
Sector Allocation (% of Net Assets)
| Information Technology | 57.8% |
| Communication Services | 13.1% |
| Financials | 8.9% |
| Consumer Discretionary | 8.5% |
| Health Care | 5.5% |
| Industrials | 4.1% |
| Consumer Staples | 1.9% |
| Short-Term Investment Fund | 1.3% |
| Other Assets/Liabilities (Net) | (1.1)% |
| Total | 100.0% |
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone Small Company Fund
CLASS A | SAGWX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone Small Company Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Class A | $125 | 1.18% |
Management's Discussion of Fund Performance
The Fund seeks to provide investors with growth of capital by investing primarily in common stocks of small capitalization companies that the sub-adviser believes are high quality, have superior business models, solid management teams, sustainable growth potential and are attractively valued.
The Fund's Class A shares performance was 12.41% (excluding sales loads) for the reporting period.
The market environment for small cap equities was positive for the year ended June 30, 2024 with the small cap benchmark Russell 2000® Index delivering a return of 10.06%. The market environment was volatile, with Russell 2000® Index returns for the quarters ending as follows: -5.13% for September 30, 2023; 14.03% for December 31, 2023; 5.18% for March 31, 2024; and -3.28% for June 30, 2024.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Stock Selection | Positive | The Industrials and Consumer Discretionary sectors were the top two contributors, and the Information Technology and Energy sectors were the only two detractors. |
| Sector Allocation | Positive | Utilities underweight and Information Technology overweight allocation contributed, while Financials and Energy underweights were the bottom two detractors. |
The Fund purchased 21 new positions and exited 15 positions during the reporting period. The Information Technology sector allocation increased from 15% to 20%, with small decreases across Industrials, Real Estate, Financials, and Materials.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and any additional indexes and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Class A | 6.81% | 8.29% | 8.16% |
| Class A - excluding sales load | 12.41% | 9.39% | 8.71% |
| Russell 3000® Index | 23.13% | 14.14% | 12.15% |
| Russell 2000® Index | 10.06% | 6.94% | 7.00% |
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $1,056,065,538 |
| Total number of portfolio holdings | 75 |
| Total advisory fees paid | $6,427,572 |
| Portfolio turnover rate | 59% |
Graphical Representation of Holdings
Sector Allocation (% of Net Assets)
| Industrials | 20.6% |
| Information Technology | 19.7% |
| Health Care | 17.7% |
| Consumer Discretionary | 14.8% |
| Real Estate | 8.0% |
| Financials | 7.8% |
| Materials | 3.4% |
| Communication Services | 3.3% |
| Energy | 2.6% |
| Short-Term Investment Funds | 3.6% |
| Other Assets/Liabilities (Net) | (1.5)% |
| Total | 100.0% |
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone Small Company Fund
CLASS C | SSCOX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone Small Company Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Class C | $207 | 1.96% |
Management's Discussion of Fund Performance
The Fund seeks to provide investors with growth of capital by investing primarily in common stocks of small capitalization companies that the sub-adviser believes are high quality, have superior business models, solid management teams, sustainable growth potential and are attractively valued.
The Fund's Class C shares performance was 11.35% (excluding sales loads) for the reporting period.
The market environment for small cap equities was positive for the year ended June 30, 2024 with the small cap benchmark Russell 2000® Index delivering a return of 10.06%. The market environment was volatile, with Russell 2000® Index returns for the quarters ending as follows: -5.13% for September 30, 2023; 14.03% for December 31, 2023; 5.18% for March 31, 2024; and -3.28% for June 30, 2024.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Stock Selection | Positive | The Industrials and Consumer Discretionary sectors were the top two contributors, and the Information Technology and Energy sectors were the only two detractors. |
| Sector Allocation | Positive | Utilities underweight and Information Technology overweight allocation contributed, while Financials and Energy underweights were the bottom two detractors. |
The Fund purchased 21 new positions and exited 15 positions during the reporting period. The Information Technology sector allocation increased from 15% to 20%, with small decreases across Industrials, Real Estate, Financials, and Materials.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and any additional indexes and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Class C | 10.35% | 8.54% | 8.05% |
| Class C - excluding sales load | 11.35% | 8.54% | 8.05% |
| Russell 3000® Index | 23.13% | 14.14% | 12.15% |
| Russell 2000® Index | 10.06% | 6.94% | 7.00% |
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $1,056,065,538 |
| Total number of portfolio holdings | 75 |
| Total advisory fees paid | $6,427,572 |
| Portfolio turnover rate | 59% |
Graphical Representation of Holdings
Sector Allocation (% of Net Assets)
| Industrials | 20.6% |
| Information Technology | 19.7% |
| Health Care | 17.7% |
| Consumer Discretionary | 14.8% |
| Real Estate | 8.0% |
| Financials | 7.8% |
| Materials | 3.4% |
| Communication Services | 3.3% |
| Energy | 2.6% |
| Short-Term Investment Funds | 3.6% |
| Other Assets/Liabilities (Net) | (1.5)% |
| Total | 100.0% |
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone Small Company Fund
CLASS Y | SIGWX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone Small Company Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Class Y | $96 | 0.90% |
Management's Discussion of Fund Performance
The Fund seeks to provide investors with growth of capital by investing primarily in common stocks of small capitalization companies that the sub-adviser believes are high quality, have superior business models, solid management teams, sustainable growth potential and are attractively valued.
The Fund's Class Y shares performance was 12.63% for the reporting period.
The market environment for small cap equities was positive for the year ended June 30, 2024 with the small cap benchmark Russell 2000® Index delivering a return of 10.06%. The market environment was volatile, with Russell 2000® Index returns for the quarters ending as follows: -5.13% for September 30, 2023; 14.03% for December 31, 2023; 5.18% for March 31, 2024; and -3.28% for June 30, 2024.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Stock Selection | Positive | The Industrials and Consumer Discretionary sectors were the top two contributors, and the Information Technology and Energy sectors were the only two detractors. |
| Sector Allocation | Positive | Utilities underweight and Information Technology overweight allocation contributed, while Financials and Energy underweights were the bottom two detractors. |
The Fund purchased 21 new positions and exited 15 positions during the reporting period. The Information Technology sector allocation increased from 15% to 20%, with small decreases across Industrials, Real Estate, Financials, and Materials.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and any additional indexes and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Class Y | 12.63% | 9.71% | 9.02% |
| Russell 3000® Index | 23.13% | 14.14% | 12.15% |
| Russell 2000® Index | 10.06% | 6.94% | 7.00% |
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $1,056,065,538 |
| Total number of portfolio holdings | 75 |
| Total advisory fees paid | $6,427,572 |
| Portfolio turnover rate | 59% |
Graphical Representation of Holdings
Sector Allocation (% of Net Assets)
| Industrials | 20.6% |
| Information Technology | 19.7% |
| Health Care | 17.7% |
| Consumer Discretionary | 14.8% |
| Real Estate | 8.0% |
| Financials | 7.8% |
| Materials | 3.4% |
| Communication Services | 3.3% |
| Energy | 2.6% |
| Short-Term Investment Funds | 3.6% |
| Other Assets/Liabilities (Net) | (1.5)% |
| Total | 100.0% |
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone Small Company Fund
INSTITUTIONAL CLASS | TICSX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone Small Company Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Institutional Class | $85 | 0.80% |
Management's Discussion of Fund Performance
The Fund seeks to provide investors with growth of capital by investing primarily in common stocks of small capitalization companies that the sub-adviser believes are high quality, have superior business models, solid management teams, sustainable growth potential and are attractively valued.
The Fund's Institutional Class shares performance was 12.78% for the reporting period.
The market environment for small cap equities was positive for the year ended June 30, 2024 with the small cap benchmark Russell 2000® Index delivering a return of 10.06%. The market environment was volatile, with Russell 2000® Index returns for the quarters ending as follows: -5.13% for September 30, 2023; 14.03% for December 31, 2023; 5.18% for March 31, 2024; and -3.28% for June 30, 2024.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Stock Selection | Positive | The Industrials and Consumer Discretionary sectors were the top two contributors, and the Information Technology and Energy sectors were the only two detractors. |
| Sector Allocation | Positive | Utilities underweight and Information Technology overweight allocation contributed, while Financials and Energy underweights were the bottom two detractors. |
The Fund purchased 21 new positions and exited 15 positions during the reporting period. The Information Technology sector allocation increased from 15% to 20%, with small decreases across Industrials, Real Estate, Financials, and Materials.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and any additional indexes and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Institutional Class1 | 12.78% | 9.82% | 9.05% |
| Russell 3000® Index | 23.13% | 14.14% | 12.15% |
| Russell 2000® Index | 10.06% | 6.94% | 7.00% |
|
1
|
The inception date was October 30, 2017. Performance information was calculated using the historical performance of Class A shares for the periods prior to October 30, 2017.
|
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $1,056,065,538 |
| Total number of portfolio holdings | 75 |
| Total advisory fees paid | $6,427,572 |
| Portfolio turnover rate | 59% |
Graphical Representation of Holdings
Sector Allocation (% of Net Assets)
| Industrials | 20.6% |
| Information Technology | 19.7% |
| Health Care | 17.7% |
| Consumer Discretionary | 14.8% |
| Real Estate | 8.0% |
| Financials | 7.8% |
| Materials | 3.4% |
| Communication Services | 3.3% |
| Energy | 2.6% |
| Short-Term Investment Funds | 3.6% |
| Other Assets/Liabilities (Net) | (1.5)% |
| Total | 100.0% |
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone Small Company Fund
CLASS R6 | SSRRX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone Small Company Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Class R6 | $85 | 0.80% |
Management's Discussion of Fund Performance
The Fund seeks to provide investors with growth of capital by investing primarily in common stocks of small capitalization companies that the sub-adviser believes are high quality, have superior business models, solid management teams, sustainable growth potential and are attractively valued.
The Fund's Class R6 shares performance was 12.72% for the reporting period.
The market environment for small cap equities was positive for the year ended June 30, 2024 with the small cap benchmark Russell 2000® Index delivering a return of 10.06%. The market environment was volatile, with Russell 2000® Index returns for the quarters ending as follows: -5.13% for September 30, 2023; 14.03% for December 31, 2023; 5.18% for March 31, 2024; and -3.28% for June 30, 2024.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Stock Selection | Positive | The Industrials and Consumer Discretionary sectors were the top two contributors, and the Information Technology and Energy sectors were the only two detractors. |
| Sector Allocation | Positive | Utilities underweight and Information Technology overweight allocation contributed, while Financials and Energy underweights were the bottom two detractors. |
The Fund purchased 21 new positions and exited 15 positions during the reporting period. The Information Technology sector allocation increased from 15% to 20%, with small decreases across Industrials, Real Estate, Financials, and Materials.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and any additional indexes and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Class R61 | 12.72% | 9.81% | 9.13% |
| Russell 3000® Index | 23.13% | 14.14% | 12.15% |
| Russell 2000® Index | 10.06% | 6.94% | 7.00% |
|
1
|
The inception date was December 23, 2014. Performance information was calculated using the historical performance of Class A shares for the periods prior to December 23, 2014.
|
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $1,056,065,538 |
| Total number of portfolio holdings | 75 |
| Total advisory fees paid | $6,427,572 |
| Portfolio turnover rate | 59% |
Graphical Representation of Holdings
Sector Allocation (% of Net Assets)
| Industrials | 20.6% |
| Information Technology | 19.7% |
| Health Care | 17.7% |
| Consumer Discretionary | 14.8% |
| Real Estate | 8.0% |
| Financials | 7.8% |
| Materials | 3.4% |
| Communication Services | 3.3% |
| Energy | 2.6% |
| Short-Term Investment Funds | 3.6% |
| Other Assets/Liabilities (Net) | (1.5)% |
| Total | 100.0% |
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone Value Fund
CLASS A | TVLAX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone Value Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Class A | $117 | 1.08% |
Management's Discussion of Fund Performance
The Fund seeks long-term capital growth by primarily investing in equity securities of large and mid-cap companies believed to be undervalued. The Fund uses traditional methods of stock selection - research and analysis - to identify companies that have price-to-earnings and price-to-book ratios below the market, that also have above-average dividend yields, and that focus on companies that are out of favor due to internal or external challenges judged to be short term in nature. Stock selection is driven by fundamental analysis on individual companies rather than by broad market themes.
The Fund's Class A shares performance was 16.71% (excluding sales loads) for the reporting period.
Equity markets made new all time highs into the Fund's year end; however, these gains were driven by a narrow group of mega cap growth stocks. Historically, growth driven markets have been prone to reversals, benefitting the average stock as well as the Value style of investing. Despite the headwinds, the Fund performed well during the reporting period.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Industrials | Positive | Vertiv Holdings Co. rose sharply as artificial intelligence (AI) increased data center demand for their products. |
| Information Technology | Positive | Increased demand for semiconductors for AI, in addition to other end markets had a positive impact on performance. |
| Consumer Discretionary | Negative | Challenging automotive production volumes and building negative sentiment on electric vehicles weighed on suppliers to the original equipment manufacturers including Aptiv plc. |
| Materials | Negative | Concerns over future demand for clean hydrogen pressured Air Products & Chemicals Inc. given its large, planned capital investments. |
Over the past year, the Fund reduced its weighting in Financials while increasing its weighting in Consumer Discretionary and remains, in our view, well-positioned for the current environment.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and any additional indexes and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Class A | 10.87% | 9.16% | 8.10% |
| Class A - excluding sales load | 16.71% | 10.30% | 8.74% |
| Russell 3000® Index | 23.13% | 14.14% | 12.15% |
| Russell 1000® Value Index | 13.06% | 9.01% | 8.23% |
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $544,544,328 |
| Total number of portfolio holdings | 52 |
| Total advisory fees paid | $3,019,882 |
| Portfolio turnover rate | 28% |
Graphical Representation of Holdings
Sector Allocation (% of Net Assets)
| Financials | 15.5% |
| Health Care | 12.0% |
| Energy | 11.7% |
| Consumer Discretionary | 11.3% |
| Information Technology | 10.9% |
| Industrials | 9.4% |
| Materials | 8.2% |
| Communication Services | 6.0% |
| Utilities | 4.7% |
| Consumer Staples | 4.4% |
| Real Estate | 3.4% |
| Short-Term Investment Funds | 3.4% |
| Other Assets/Liabilities (Net) | (0.9)% |
| Total | 100.0% |
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone Value Fund
CLASS C | TVLCX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone Value Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Class C | $197 | 1.83% |
Management's Discussion of Fund Performance
The Fund seeks long-term capital growth by primarily investing in equity securities of large and mid-cap companies believed to be undervalued. The Fund uses traditional methods of stock selection - research and analysis - to identify companies that have price-to-earnings and price-to-book ratios below the market, that also have above-average dividend yields, and that focus on companies that are out of favor due to internal or external challenges judged to be short term in nature. Stock selection is driven by fundamental analysis on individual companies rather than by broad market themes.
The Fund's Class C shares performance was 15.76% (excluding sales loads) for the reporting period.
Equity markets made new all time highs into the Fund's year end; however, these gains were driven by a narrow group of mega cap growth stocks. Historically, growth driven markets have been prone to reversals, benefitting the average stock as well as the Value style of investing. Despite the headwinds, the Fund performed well during the reporting period.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Industrials | Positive | Vertiv Holdings Co. rose sharply as artificial intelligence (AI) increased data center demand for their products. |
| Information Technology | Positive | Increased demand for semiconductors for AI, in addition to other end markets. |
| Consumer Discretionary | Negative | Challenging automotive production volumes and building negative sentiment on electric vehicles weighed on suppliers to the original equipment manufacturers including Aptiv plc. |
| Materials | Negative | Concerns over future demand for clean hydrogen pressured Air Products and Chemicals Inc. given their large, planned capital investments. |
Over the past year, the Fund reduced its weighting in Financials while increasing its weighting in Consumer Discretionary and remains, in our view, well-positioned for the current environment.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and any additional indexes and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Class C | 14.76% | 9.47% | 8.07% |
| Class C - excluding sales load | 15.76% | 9.47% | 8.07% |
| Russell 3000® Index | 23.13% | 14.14% | 12.15% |
| Russell 1000® Value Index | 13.06% | 9.01% | 8.23% |
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $544,544,328 |
| Total number of portfolio holdings | 52 |
| Total advisory fees paid | $3,019,882 |
| Portfolio turnover rate | 28% |
Graphical Representation of Holdings
Sector Allocation (% of Net Assets)
| Financials | 15.5% |
| Health Care | 12.0% |
| Energy | 11.7% |
| Consumer Discretionary | 11.3% |
| Information Technology | 10.9% |
| Industrials | 9.4% |
| Materials | 8.2% |
| Communication Services | 6.0% |
| Utilities | 4.7% |
| Consumer Staples | 4.4% |
| Real Estate | 3.4% |
| Short-Term Investment Funds | 3.4% |
| Other Assets/Liabilities (Net) | (0.9)% |
| Total | 100.0% |
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone Value Fund
CLASS Y | TVLYX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone Value Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Class Y | $90 | 0.83% |
Management's Discussion of Fund Performance
The Fund seeks long-term capital growth by primarily investing in equity securities of large and mid-cap companies believed to be undervalued. The Fund uses traditional methods of stock selection - research and analysis - to identify companies that have price-to-earnings and price-to-book ratios below the market, that also have above-average dividend yields, and that focus on companies that are out of favor due to internal or external challenges judged to be short term in nature. Stock selection is driven by fundamental analysis on individual companies rather than by broad market themes.
The Fund's Class Y shares performance was 16.90% for the reporting period.
Equity markets made new all time highs into the Fund's year end; however, these gains were driven by a narrow group of mega cap growth stocks. Historically, growth driven markets have been prone to reversals, benefitting the average stock as well as the Value style of investing. Despite the headwinds, the Fund performed well during the reporting period.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Industrials | Positive | Vertiv Holdings Co. rose sharply as artificial intelligence (AI) increased data center demand for their products. |
| Information Technology | Positive | Increased demand for semiconductors for AI, in addition to other end markets. |
| Consumer Discretionary | Negative | Challenging automotive production volumes and building negative sentiment on electric vehicles weighed on suppliers to the original equipment manufacturers including Aptiv plc. |
| Materials | Negative | Concerns over future demand for clean hydrogen pressured Air Products and Chemicals Inc. given their large, planned capital investments. |
Over the past year, the Fund reduced its weighting in Financials while increasing its weighting in Consumer Discretionary and remains, in our view, well-positioned for the current environment.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and any additional indexes and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Class Y | 16.90% | 10.57% | 9.01% |
| Russell 3000® Index | 23.13% | 14.14% | 12.15% |
| Russell 1000® Value Index | 13.06% | 9.01% | 8.23% |
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $544,544,328 |
| Total number of portfolio holdings | 52 |
| Total advisory fees paid | $3,019,882 |
| Portfolio turnover rate | 28% |
Graphical Representation of Holdings
Sector Allocation (% of Net Assets)
| Financials | 15.5% |
| Health Care | 12.0% |
| Energy | 11.7% |
| Consumer Discretionary | 11.3% |
| Information Technology | 10.9% |
| Industrials | 9.4% |
| Materials | 8.2% |
| Communication Services | 6.0% |
| Utilities | 4.7% |
| Consumer Staples | 4.4% |
| Real Estate | 3.4% |
| Short-Term Investment Funds | 3.4% |
| Other Assets/Liabilities (Net) | (0.9)% |
| Total | 100.0% |
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone Value Fund
INSTITUTIONAL CLASS | TVLIX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone Value Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Institutional Class | $74 | 0.68% |
Management's Discussion of Fund Performance
The Fund seeks long-term capital growth by primarily investing in equity securities of large and mid-cap companies believed to be undervalued. The Fund uses traditional methods of stock selection - research and analysis - to identify companies that have price-to-earnings and price-to-book ratios below the market, that also have above-average dividend yields, and that focus on companies that are out of favor due to internal or external challenges judged to be short term in nature. Stock selection is driven by fundamental analysis on individual companies rather than by broad market themes.
The Fund's Institutional Class shares performance was 17.14% for the reporting period.
Equity markets made new all time highs into the Fund's year end; however, these gains were driven by a narrow group of mega cap growth stocks. Historically, growth driven markets have been prone to reversals, benefitting the average stock as well as the Value style of investing. Despite the headwinds, the Fund performed well during the reporting period.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Industrials | Positive | Vertiv Holdings Co. rose sharply as artificial intelligence (AI) increased data center demand for their products. |
| Information Technology | Positive | Increased demand for semiconductors for AI, in addition to other end markets. |
| Consumer Discretionary | Negative | Challenging automotive production volumes and building negative sentiment on electric vehicles weighed on suppliers to the original equipment manufacturers including Aptiv plc. |
| Materials | Negative | Concerns over future demand for clean hydrogen pressured Air Products and Chemicals Inc. given their large, planned capital investments. |
Over the past year, the Fund reduced its weighting in Financials while increasing its weighting in Consumer Discretionary and remains, in our view, well-positioned for the current environment.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and any additional indexes and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Institutional Class | 17.14% | 10.75% | 9.17% |
| Russell 3000® Index | 23.13% | 14.14% | 12.15% |
| Russell 1000® Value Index | 13.06% | 9.01% | 8.23% |
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $544,544,328 |
| Total number of portfolio holdings | 52 |
| Total advisory fees paid | $3,019,882 |
| Portfolio turnover rate | 28% |
Graphical Representation of Holdings
Sector Allocation (% of Net Assets)
| Financials | 15.5% |
| Health Care | 12.0% |
| Energy | 11.7% |
| Consumer Discretionary | 11.3% |
| Information Technology | 10.9% |
| Industrials | 9.4% |
| Materials | 8.2% |
| Communication Services | 6.0% |
| Utilities | 4.7% |
| Consumer Staples | 4.4% |
| Real Estate | 3.4% |
| Short-Term Investment Funds | 3.4% |
| Other Assets/Liabilities (Net) | (0.9)% |
| Total | 100.0% |
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
Touchstone Value Fund
CLASS R6 | TVLRX
ANNUAL SHAREHOLDER REPORT | June 30, 2024
This annual shareholder report contains important information about the Touchstone Value Fund ("Fund") for the period July 1, 2023 to June 30, 2024.You can find additional information about the Fund at touchstoneinvestments.com/mutual-funds. You can also request this information by contacting us at 800.543.0407.
Fund Expenses
| Class |
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
| Class R6 | $68 | 0.63% |
Management's Discussion of Fund Performance
The Fund seeks long-term capital growth by primarily investing in equity securities of large and mid-cap companies believed to be undervalued. The Fund uses traditional methods of stock selection - research and analysis - to identify companies that have price-to-earnings and price-to-book ratios below the market, that also have above-average dividend yields, and that focus on companies that are out of favor due to internal or external challenges judged to be short term in nature. Stock selection is driven by fundamental analysis on individual companies rather than by broad market themes.
The Fund's Class R6 shares performance was 17.29% for the reporting period.
Equity markets made new all time highs into the Fund's year end; however, these gains were driven by a narrow group of mega cap growth stocks. Historically, growth driven markets have been prone to reversals, benefitting the average stock as well as the Value style of investing. Despite the headwinds, the Fund performed well during the reporting period.
The factors that contributed most to the Fund's performance during the period were:
| Factor | Performance Impact | Observations |
| Industrials | Positive | Vertiv Holdings Co. rose sharply as artificial intelligence (AI) increased data center demand for their products. |
| Information Technology | Positive | Increased demand for semiconductors for AI, in addition to other end markets. |
| Consumer Discretionary | Negative | Challenging automotive production volumes and building negative sentiment on electric vehicles weighed on suppliers to the original equipment manufacturers including Aptiv plc. |
| Materials | Negative | Concerns over future demand for clean hydrogen pressured Air Products and Chemicals Inc. given their large, planned capital investments. |
Over the past year, the Fund reduced its weighting in Financials while increasing its weighting in Consumer Discretionary and remains, in our view, well-positioned for the current environment.
Fund Performance
The following graph compares the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years or since inception of the Fund. The graph assumes a $10,000 initial investment in the Fund and an appropriate broad-based securities market index and any additional indexes and assumes maximum sales charges, if any.
Growth of $10,000
| AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Years | 10 Years |
| Class R61 | 17.29% | 10.71% | 9.08% |
| Russell 3000® Index | 23.13% | 14.14% | 12.15% |
| Russell 1000® Value Index | 13.06% | 9.01% | 8.23% |
|
1
|
The inception date was October 28, 2021. Performance information was calculated using the historical performance of Class A shares for the periods prior to October 28, 2021.
|
Past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit touchstoneinvestments.com/mutual-fundsfor the most recent performance information.
Key Fund Statistics
| Fund net assets | $544,544,328 |
| Total number of portfolio holdings | 52 |
| Total advisory fees paid | $3,019,882 |
| Portfolio turnover rate | 28% |
Graphical Representation of Holdings
Sector Allocation (% of Net Assets)
| Financials | 15.5% |
| Health Care | 12.0% |
| Energy | 11.7% |
| Consumer Discretionary | 11.3% |
| Information Technology | 10.9% |
| Industrials | 9.4% |
| Materials | 8.2% |
| Communication Services | 6.0% |
| Utilities | 4.7% |
| Consumer Staples | 4.4% |
| Real Estate | 3.4% |
| Short-Term Investment Funds | 3.4% |
| Other Assets/Liabilities (Net) | (0.9)% |
| Total | 100.0% |
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information and fund holdings at touchstoneinvestments.com/mutual-fundsor scan the QR code. Information about the fund's proxy voting information and privacy policy is located in the Regulatory section of our website at touchstoneinvestments.com/Resources. You can also request this information by contacting us at 800.543.0407.
| (b) | Not applicable. |
Item 2. Code of Ethics.
| (a) | The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. |
| (c) | There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics description. |
| (d) | The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item's instructions. |
| (e) | Not applicable. |
| (f) | A copy of the code of ethics is attached hereto as Exhibit 19(a)(1). |
Item 3. Audit Committee Financial Expert.
The registrant's Board of Trustees has determined that the registrant has at least one audit committee financial expert serving on its audit committee. Ms. Karen Carnahan is the registrant's audit committee financial expert and is an independent trustee within the meaning of the Investment Company Act of 1940, as amended (the "1940 Act").
Item 4. Principal Accountant Fees and Services.
Audit Fees
| (a) | Audit fees for Touchstone Strategic Trust (June Funds) totaled $155,000 and $171,300 for the fiscal years ended June 30, 2024 and June 30, 2023, respectively, including fees associated with the annual audits and filings of Form N-1A and Form N-CEN. |
Audit-Related Fees
| (b) | The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of this Item are $6,800 and $21,100 for the fiscal years ended June 30, 2024 and June 30, 2023, respectively. These fees are associated with Form N-1A filings and out of scope expenses for 2024 and Form NCSR/A filings and out of scope expenses for 2023. |
Tax Fees
| (c) | The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning were $60,962 and $73,144 for the fiscal years ended June 30, 2024 and June 30, 2023, respectively. The fees relate to the preparation of federal income and excise tax returns, review of capital gains distribution calculations and tax agent services. |
All Other Fees
| (d) | The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $20,107 and $16,720 for the fiscal years ended June 30, 2024 and June 30, 2023, respectively. The fees relate to the PFIC analyzer, Global Withholding Tax Reporter and Rapid Security Analyzer subscriptions. |
| (e)(1) |
The Audit Committee's pre-approval policies describe the types of audit, audit-related, tax and other services that have the general pre-approval of the Audit Committee. The pre-approval policies provide that annual audit service fees, tax services not specifically granted pre-approval, services exceeding pre-approved cost levels and other services that have not received general pre-approval will be subject to specific pre-approval by the Audit Committee. The pre-approval policies further provide that the Committee may grant general pre-approval to other audit services (statutory audits and services associated with SEC registration statements, periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings), audit-related services (accounting consultations related to accounting, financial reporting or disclosure matters not classified as "audit services," assistance with understanding and implementing new accounting and financial reporting guidance from rulemaking authorities, agreed-upon or expanded audit procedures related to accounting and/or billing records required to respond to or comply with financial, accounting or regulatory reporting matters and assistance with internal control reporting requirements under Form N-CSR), tax services that have historically been provided by the auditor that the Committee believes would not impair the independence of the auditor and are consistent with the SEC's rules on auditor independence and permissible non-audit services classified as "all other services" that are routine and recurring services.
| (e)(2) | All of the services described in paragraphs (b) through (d) of Item 4 were approved by the Audit Committee. |
| (f) | The percentage of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full-time, permanent employees was less than fifty percent. |
| (g) | The aggregate non-audit fees for Touchstone Strategic Trust (June Funds) and certain entities*, totaled approximately $1,679,199 and $1,177,706 for the fiscal years ended June 30, 2024 and June 30, 2023, respectively. |
* These include the advisors (excluding non-affiliated sub-advisors) and any entity controlling, controlled by or under common control with the advisors that provides ongoing services to the registrant (Funds).
| (h) | The registrant's audit committee of the Board of Trustees has considered whether the provision of non-audit services that were rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. |
(i) Not applicable.
(j) Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
| (a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 7 of this form. |
| (b) | Not applicable. |
Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.
The financial statements including the financial highlights are attached herewith.
June 30, 2024
Annual Report
| Touchstone Strategic Trust |
| Touchstone Balanced Fund |
| Touchstone Core Municipal Bond Fund |
| Touchstone International Value Fund (formerly Touchstone International Equity Fund) |
| Touchstone Large Cap Focused Fund |
| Touchstone Large Cap Fund |
| Touchstone Large Company Growth Fund |
| Touchstone Small Company Fund |
| Touchstone Value Fund |
Table of Contents
| Page | |
| Portfolios of Investments: | |
| Touchstone Balanced Fund | 3-8 |
| Touchstone Core Municipal Bond Fund | 9-10 |
| Touchstone International Value Fund | 11-13 |
| Touchstone Large Cap Focused Fund | 14 |
| Touchstone Large Cap Fund | 15 |
| Touchstone Large Company Growth Fund | 16 |
| Touchstone Small Company Fund | 17-18 |
| Touchstone Value Fund | 19 |
| Statements of Assets and Liabilities | 20-23 |
| Statements of Operations | 24-25 |
| Statements of Changes in Net Assets | 26-28 |
| Statements of Changes in Net Assets - Capital Stock Activity | 30-33 |
| Financial Highlights | 34-41 |
| Notes to Financial Statements | 42-56 |
| Report of Independent Registered Public Accounting Firm | 57 |
| Other Items (Unaudited) | 58-60 |
| Privacy Protection Policy | 63 |
This report identifies the Funds' investments on June 30, 2024. These holdings are subject to change. Not all investments in each Fund performed the same, nor is there any guarantee that these investments will perform as well in the future. Market forecasts provided in this report may not occur.
2
Table of Contents
Portfolio of Investments
Touchstone Balanced Fund- June 30, 2024
| Shares |
Market Value |
|||
| Common Stocks - 63.9% | ||||
| Information Technology - 19.7% | ||||
| 211,474 | Apple, Inc. | $ 44,540,654 | ||
| 39,578 | International Business Machines Corp. | 6,845,015 | ||
| 132,986 | Microsoft Corp. | 59,438,093 | ||
| 119,729 | NVIDIA Corp. | 14,791,321 | ||
| 111,072 | Oracle Corp. | 15,683,366 | ||
| 50,655 | Salesforce, Inc. | 13,023,400 | ||
| 43,613 | Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan) ADR | 7,580,375 | ||
| 59,302 | Texas Instruments, Inc. | 11,536,018 | ||
| 32,460 | Workday, Inc. - Class A* | 7,256,758 | ||
| 180,695,000 | ||||
| Communication Services - 10.2% | ||||
| 203,278 | Alphabet, Inc. - Class C | 37,285,251 | ||
| 196,354 | Comcast Corp. - Class A | 7,689,223 | ||
| 72,764 | Meta Platforms, Inc. - Class A | 36,689,064 | ||
| 10,920 | Netflix, Inc.* | 7,369,689 | ||
| 42,324 | Walt Disney Co. (The) | 4,202,350 | ||
| 93,235,577 | ||||
| Financials - 8.9% | ||||
| 226,643 | Bank of America Corp. | 9,013,592 | ||
| 61,936 | Berkshire Hathaway, Inc. - Class B* | 25,195,565 | ||
| 97,303 | Charles Schwab Corp. (The) | 7,170,258 | ||
| 35,137 | Goldman Sachs Group, Inc. (The) | 15,893,168 | ||
| 6,506 | Markel Group, Inc.* | 10,251,244 | ||
| 53,602 | Visa, Inc. - Class A | 14,068,917 | ||
| 81,592,744 | ||||
| Health Care - 8.3% | ||||
| 33,478 | Becton Dickinson & Co. | 7,824,143 | ||
| 82,913 | BioMarin Pharmaceutical, Inc.* | 6,826,227 | ||
| 149,065 | Bristol-Myers Squibb Co. | 6,190,670 | ||
| 45,085 | HCA Healthcare, Inc. | 14,484,909 | ||
| 93,696 | Johnson & Johnson | 13,694,607 | ||
| 133,584 | Medtronic PLC | 10,514,397 | ||
| 32,291 | UnitedHealth Group, Inc. | 16,444,515 | ||
| 75,979,468 | ||||
| Consumer Discretionary - 5.2% | ||||
| 50,301 | Airbnb, Inc. - Class A* | 7,627,140 | ||
| 35,184 | Alibaba Group Holding Ltd. (China) ADR | 2,533,248 | ||
| 168,092 | Amazon.com, Inc.* | 32,483,779 | ||
| 64,894 | Starbucks Corp. | 5,051,998 | ||
| 47,696,165 | ||||
| Industrials - 4.9% | ||||
| 42,374 | Boeing Co. (The)* | 7,712,492 | ||
| 17,118 | FedEx Corp. | 5,132,661 | ||
| 16,875 | Hubbell, Inc. | 6,167,475 | ||
| 96,838 | RTX Corp. | 9,721,567 | ||
| 162,613 | Southwest Airlines Co. | 4,652,358 | ||
| 105,250 | SS&C Technologies Holdings, Inc. | 6,596,017 | ||
| 57,875 | Stanley Black & Decker, Inc. | 4,623,634 | ||
| 44,606,204 | ||||
| Consumer Staples - 2.6% | ||||
| 29,897 | Diageo PLC (United Kingdom) ADR | 3,769,414 | ||
| 182,961 | Monster Beverage Corp.* | 9,138,902 | ||
| 107,686 | Philip Morris International, Inc. | 10,911,822 | ||
| 23,820,138 |
| Shares |
Market Value |
|||
| Common Stocks - 63.9% (Continued) | ||||
| Energy - 1.8% | ||||
| 110,577 | Exxon Mobil Corp. | $ 12,729,624 | ||
| 83,496 | Schlumberger NV | 3,939,341 | ||
| 16,668,965 | ||||
| Materials - 1.6% | ||||
| 107,398 | DuPont de Nemours, Inc. | 8,644,465 | ||
| 65,020 | International Flavors & Fragrances, Inc. | 6,190,554 | ||
| 14,835,019 | ||||
| Real Estate - 0.7% | ||||
| 31,755 | Jones Lang LaSalle, Inc.* | 6,518,666 | ||
| Total Common Stocks | $585,647,946 |
|
Principal Amount |
||||
| Corporate Bonds - 12.5% | ||||
| Financials - 3.2% | ||||
| $ 402,000 | AerCap Ireland Capital DAC / AerCap Global Aviation Trust (Ireland), 2.450%, 10/29/26 | 375,031 | ||
| 924,000 | AerCap Ireland Capital DAC / AerCap Global Aviation Trust (Ireland), 3.000%, 10/29/28 | 840,135 | ||
| 1,300,000 | American Express Co., 5.282%, 7/27/29 | 1,303,236 | ||
| 1,219,000 | American Tower Corp. REIT, 5.900%, 11/15/33 | 1,250,474 | ||
| 1,110,000 | Ares Capital Corp., 3.250%, 7/15/25 | 1,078,427 | ||
| 802,000 | Bank of America Corp., 2.687%, 4/22/32 | 678,909 | ||
| 815,000 | Bank of America Corp., 3.705%, 4/24/28 | 780,708 | ||
| 932,000 | Bank of Montreal (Canada), 3.803%, 12/15/32 | 875,864 | ||
| 1,020,000 | Bank of New York Mellon Corp. (The), 5.834%, 10/25/33 | 1,057,909 | ||
| 1,009,000 | Bank of Nova Scotia (The) (Canada), 3.625%, 10/27/81 | 853,774 | ||
| 1,225,000 | Barclays PLC (United Kingdom), 2.894%, 11/24/32 | 1,015,316 | ||
| 690,000 | Berkshire Hathaway Finance Corp., 4.250%, 1/15/49 | 591,997 | ||
| 765,000 | Citigroup, Inc., 3.200%, 10/21/26 | 729,371 | ||
| 645,000 | Citigroup, Inc., 6.174%, 5/25/34 | 656,848 | ||
| 1,044,000 | Citizens Bank NA, 4.575%, 8/9/28 | 1,008,304 | ||
| 1,255,000 | Corestates Capital III, 144a, (TSFR3M +0.832%), 6.154%, 2/15/27(A) | 1,227,198 | ||
| 1,213,000 | Goldman Sachs Group, Inc. (The), 2.615%, 4/22/32 | 1,022,164 | ||
| 674,000 | Goldman Sachs Group, Inc. (The), 3.691%, 6/5/28 | 645,108 | ||
| 1,276,000 | JPMorgan Chase & Co., 2.956%, 5/13/31 | 1,119,232 | ||
| 1,000,000 | JPMorgan Chase & Co., 3.509%, 1/23/29 | 946,087 | ||
| 879,000 | Macquarie Airfinance Holdings Ltd. (United Kingdom), 144a, 6.400%, 3/26/29 | 894,087 | ||
| 1,250,000 | Mastercard, Inc., 2.000%, 11/18/31 | 1,029,339 | ||
| 1,086,000 | Morgan Stanley, 3.950%, 4/23/27 | 1,048,989 | ||
| 839,000 | Morgan Stanley, 5.297%, 4/20/37 | 804,294 | ||
| 948,000 | New York Life Global Funding, 144a, 4.550%, 1/28/33 | 903,896 | ||
| 1,220,708 | Northwestern Mutual Life Insurance Co. (The), 144a, 3.850%, 9/30/47 | 928,757 | ||
| 1,171,000 | PNC Capital Trust, (TSFR3M +0.832%), 6.178%, 6/1/28(A) | 1,111,409 | ||
| 1,105,000 | Royal Bank of Canada (Canada), MTN, 5.200%, 8/1/28 | 1,112,782 | ||
| 1,398,000 | State Street Corp., (TSFR3M +1.262%), 6.601%, 6/15/47(A) | 1,204,028 | ||
| 1,844,000 | Truist Bank, Ser A, (TSFR3M +0.932%), 6.254%, 5/15/27(A) | 1,807,880 | ||
| 807,000 | US Bancorp, 4.967%, 7/22/33 | 762,323 | ||
| 29,663,876 | ||||
| Industrials - 1.5% | ||||
| 1,251,000 | Amcor Flexibles North America, Inc., 2.630%, 6/19/30 | 1,074,255 | ||
| 610,000 | Boeing Co. (The), 144a, 6.528%, 5/1/34 | 625,721 | ||
| 983,000 | Burlington Northern Santa Fe LLC, 5.750%, 5/1/40 | 1,012,247 |
3
Table of Contents
Touchstone Balanced Fund(Continued)
|
Principal Amount |
MarketValue | |||
| Corporate Bonds - 12.5% (Continued) | ||||
| Industrials - 1.5% (Continued) | ||||
| $ 646,000 | Carrier Global Corp., 3.577%, 4/5/50 | $ 471,566 | ||
| 934,000 | FedEx Corp., 5.100%, 1/15/44 | 857,703 | ||
| 1,247,000 | Ingersoll Rand, Inc., 5.176%, 6/15/29 | 1,247,724 | ||
| 1,420,000 | John Deere Capital Corp., MTN, 5.100%, 4/11/34 | 1,418,664 | ||
| 808,000 | Norfolk Southern Corp., 4.837%, 10/1/41 | 739,412 | ||
| 685,000 | Penske Truck Leasing Co. LP / PTL Finance Corp., 144a, 5.350%, 1/12/27 | 683,822 | ||
| 1,438,000 | Textron Financial Corp., 144a, (TSFR3M +1.997%), 7.319%, 2/15/42(A) | 1,264,491 | ||
| 888,000 | Timken Co. (The), 4.500%, 12/15/28 | 861,402 | ||
| 1,303,000 | Waste Management, Inc., 4.875%, 2/15/34 | 1,280,288 | ||
| 1,846,000 | Weir Group PLC (The) (United Kingdom), 144a, 2.200%, 5/13/26 | 1,732,493 | ||
| 676,000 | WestRock MWV LLC, 8.200%, 1/15/30 | 771,784 | ||
| 14,041,572 | ||||
| Consumer Discretionary - 1.4% | ||||
| 1,795,000 | 7-Eleven, Inc., 144a, 1.800%, 2/10/31 | 1,440,141 | ||
| 71,805 | Air Canada 2015-1 Class A Pass Through Trust (Canada), 144a, 3.600%, 3/15/27 | 68,148 | ||
| 1,099,000 | BAT Capital Corp. (United Kingdom), 3.557%, 8/15/27 | 1,044,038 | ||
| 355,000 | Brunswick Corp., 4.400%, 9/15/32 | 316,814 | ||
| 1,461,000 | General Motors Financial Co., Inc., 3.100%, 1/12/32 | 1,230,000 | ||
| 555,000 | General Motors Financial Co., Inc., 5.650%, 1/17/29 | 558,075 | ||
| 605,000 | Home Depot, Inc. (The), 5.950%, 4/1/41 | 642,277 | ||
| 999,000 | Hyundai Capital America, 144a, 5.350%, 3/19/29 | 997,859 | ||
| 754,000 | Imperial Brands Finance PLC (United Kingdom), 144a, 6.125%, 7/27/27 | 767,204 | ||
| 1,130,000 | Lowe's Cos., Inc., 4.500%, 4/15/30 | 1,097,368 | ||
| 715,000 | Mattel, Inc., 5.450%, 11/1/41 | 641,969 | ||
| 1,388,000 | Meritage Homes Corp., 144a, 3.875%, 4/15/29 | 1,277,821 | ||
| 1,174,000 | Toll Brothers Finance Corp., 3.800%, 11/1/29 | 1,086,605 | ||
| 680,000 | Toyota Motor Credit Corp., MTN, 4.650%, 1/5/29 | 672,052 | ||
| 1,263,000 | Warnermedia Holdings, Inc., 5.141%, 3/15/52 | 988,124 | ||
| 12,828,495 | ||||
| Consumer Staples - 1.2% | ||||
| 725,000 | Anheuser-Busch Cos. LLC / Anheuser-Busch InBev Worldwide, Inc. (Belgium), 4.900%, 2/1/46 | 671,078 | ||
| 828,000 | Archer-Daniels-Midland Co., 5.375%, 9/15/35 | 840,003 | ||
| 415,000 | Archer-Daniels-Midland Co., 5.935%, 10/1/32 | 443,439 | ||
| 995,000 | Ashtead Capital, Inc. (United Kingdom), 144a, 4.000%, 5/1/28 | 940,491 | ||
| 1,876,000 | Coca-Cola Co. (The), 2.500%, 3/15/51 | 1,145,380 | ||
| 635,000 | Kroger Co. (The), 5.000%, 4/15/42 | 579,934 | ||
| 960,000 | Mars, Inc., 144a, 3.875%, 4/1/39 | 818,060 | ||
| 697,000 | Mars, Inc., 144a, 3.600%, 4/1/34 | 618,530 | ||
| 1,974,000 | Pernod Ricard International Finance LLC, 144a, 1.625%, 4/1/31 | 1,576,288 | ||
| 1,349,000 | Philip Morris International, Inc., 5.375%, 2/15/33 | 1,342,096 | ||
| 650,000 | Starbucks Corp., 3.350%, 3/12/50 | 444,777 | ||
| 815,000 | Tyson Foods, Inc., 5.400%, 3/15/29 | 816,788 | ||
| 808,000 | Walmart, Inc., 4.500%, 9/9/52 | 719,597 | ||
| 10,956,461 | ||||
| Health Care - 1.1% | ||||
| 832,000 | AbbVie, Inc., 4.450%, 5/14/46 | 725,343 | ||
| 917,000 | Alcon Finance Corp. (Switzerland), 144a, 3.800%, 9/23/49 | 693,272 | ||
| 1,068,000 | Amgen, Inc., 5.150%, 3/2/28 | 1,068,198 | ||
| 700,000 | Becton Dickinson & Co., 4.685%, 12/15/44 | 619,219 | ||
| 857,000 | CommonSpirit Health, 4.187%, 10/1/49 | 688,076 | ||
| 782,000 | CVS Health Corp., 5.125%, 7/20/45 | 691,339 |
|
Principal Amount |
MarketValue | |||
| Corporate Bonds - 12.5% (Continued) | ||||
| Health Care - 1.1% (Continued) | ||||
| $ 1,036,000 | DH Europe Finance II Sarl, 3.250%, 11/15/39 | $ 821,545 | ||
| 942,000 | Elevance Health, Inc., 4.750%, 2/15/33 | 909,901 | ||
| 1,066,000 | HCA, Inc., 5.375%, 9/1/26 | 1,063,311 | ||
| 832,000 | Thermo Fisher Scientific, Inc., 5.404%, 8/10/43 | 834,504 | ||
| 1,062,000 | UnitedHealth Group, Inc., 3.500%, 8/15/39 | 861,055 | ||
| 1,081,000 | Viatris, Inc., 2.700%, 6/22/30 | 917,680 | ||
| 9,893,443 | ||||
| Energy - 1.1% | ||||
| 1,261,000 | BP Capital Markets America, Inc., 4.970%, 10/17/29 | 1,258,261 | ||
| 1,126,000 | Cheniere Energy Partners LP, 3.250%, 1/31/32 | 960,927 | ||
| 355,000 | Cheniere Energy Partners LP, 4.000%, 3/1/31 | 322,899 | ||
| 1,063,000 | DCP Midstream Operating LP, 144a, 6.750%, 9/15/37 | 1,148,088 | ||
| 884,000 | HF Sinclair Corp., 144a, 5.000%, 2/1/28 | 856,744 | ||
| 576,692 | MC Brazil Downstream Trading SARL (Brazil), 144a, 7.250%, 6/30/31 | 511,068 | ||
| 1,161,000 | Midwest Connector Capital Co. LLC, 144a, 4.625%, 4/1/29 | 1,127,509 | ||
| 1,244,000 | NGPL PipeCo LLC, 144a, 7.768%, 12/15/37 | 1,438,830 | ||
| 1,046,000 | Occidental Petroleum Corp., 7.950%, 6/15/39 | 1,207,994 | ||
| 977,000 | Western Midstream Operating LP, 5.250%, 2/1/50 | 858,124 | ||
| 9,690,444 | ||||
| Information Technology - 0.9% | ||||
| 1,424,000 | Apple, Inc., 4.650%, 2/23/46 | 1,319,033 | ||
| 1,407,000 | Broadcom, Inc., 4.150%, 11/15/30 | 1,330,440 | ||
| 1,708,000 | Cisco Systems, Inc., 4.850%, 2/26/29 | 1,708,226 | ||
| 1,289,000 | Marvell Technology, Inc., 2.950%, 4/15/31 | 1,113,713 | ||
| 671,000 | Micron Technology, Inc., 2.703%, 4/15/32 | 556,836 | ||
| 277,000 | Micron Technology, Inc., 6.750%, 11/1/29 | 294,807 | ||
| 1,742,000 | Microsoft Corp., 2.525%, 6/1/50 | 1,106,567 | ||
| 393,000 | Oracle Corp., 3.600%, 4/1/40 | 303,200 | ||
| 313,000 | Oracle Corp., 4.300%, 7/8/34 | 285,684 | ||
| 8,018,506 | ||||
| Communication Services - 0.7% | ||||
| 791,000 | AT&T, Inc., 3.800%, 12/1/57 | 554,854 | ||
| 535,000 | AT&T, Inc., 4.500%, 5/15/35 | 493,866 | ||
| 510,000 | Charter Communications Operating LLC / Charter Communications Operating Capital, 6.384%, 10/23/35 | 498,343 | ||
| 711,000 | Charter Communications Operating LLC / Charter Communications Operating Capital, 6.484%, 10/23/45 | 651,606 | ||
| 796,000 | Comcast Corp., 4.000%, 3/1/48 | 628,798 | ||
| 386,000 | Paramount Global, 4.200%, 5/19/32 | 315,881 | ||
| 1,357,000 | Rogers Communications, Inc. (Canada), 5.300%, 2/15/34 | 1,334,601 | ||
| 1,178,000 | T-Mobile USA, Inc., 3.875%, 4/15/30 | 1,101,924 | ||
| 566,000 | T-Mobile USA, Inc., 5.750%, 1/15/54 | 566,063 | ||
| 1,103,000 | Verizon Communications, Inc., 2.987%, 10/30/56 | 679,802 | ||
| 6,825,738 | ||||
| Utilities - 0.6% | ||||
| 1,537,000 | CMS Energy Corp., 4.750%, 6/1/50 | 1,407,106 | ||
| 738,000 | Duke Energy Progress LLC, 4.150%, 12/1/44 | 597,129 | ||
| 719,000 | Edison International, 4.125%, 3/15/28 | 687,053 | ||
| 876,000 | Electricite de France SA (France), 144a, 4.875%, 9/21/38 | 786,541 | ||
| 1,135,000 | Ohio Power Co., Ser R, 2.900%, 10/1/51 | 697,897 | ||
| 1,250,000 | Pacific Gas and Electric Co., 3.500%, 8/1/50 | 820,519 | ||
| 887,000 | PacifiCorp., 5.750%, 4/1/37 | 881,975 | ||
| 5,878,220 |
4
Table of Contents
Touchstone Balanced Fund(Continued)
|
Principal Amount |
MarketValue | |||
| Corporate Bonds - 12.5% (Continued) | ||||
| Real Estate - 0.6% | ||||
| $ 992,000 | Crown Castle International Corp. REIT, 3.650%, 9/1/27 | $ 943,049 | ||
| 1,105,000 | Host Hotels & Resorts LP REIT, Ser F, 4.500%, 2/1/26 | 1,085,073 | ||
| 1,206,000 | Invitation Homes Operating Partnership LP REIT, 4.150%, 4/15/32 | 1,102,169 | ||
| 735,000 | Sabra Health Care LP REIT, 5.125%, 8/15/26 | 723,351 | ||
| 446,000 | Store Capital LLC REIT, 2.700%, 12/1/31 | 357,802 | ||
| 274,000 | Store Capital LLC REIT, 2.750%, 11/18/30 | 227,237 | ||
| 623,000 | Store Capital LLC REIT, 4.625%, 3/15/29 | 588,758 | ||
| 5,027,439 | ||||
| Materials - 0.2% | ||||
| 531,000 | Braskem America Finance Co. (Brazil), 144a, 7.125%, 7/22/41 | 477,018 | ||
| 1,049,000 | Celanese US Holdings LLC, 6.379%, 7/15/32 | 1,079,773 | ||
| 846,000 | Sherwin-Williams Co. (The), 4.500%, 6/1/47 | 716,382 | ||
| 2,273,173 | ||||
| Total Corporate Bonds | $115,097,367 | |||
| U.S. Treasury Obligations - 11.7% | ||||
| 3,374,000 | U.S. Treasury Bond, 4.000%, 11/15/52 | 3,092,350 | ||
| 15,065,000 | U.S. Treasury Bond, 4.750%, 11/15/43 | 15,330,991 | ||
| 24,000,000 | U.S. Treasury Note, 4.000%, 1/31/29 | 23,644,688 | ||
| 19,240,000 | U.S. Treasury Note, 4.000%, 2/15/34 | 18,716,913 | ||
| 12,345,000 | U.S. Treasury Note, 4.375%, 11/30/28 | 12,349,340 | ||
| 15,050,000 | U.S. Treasury Note, 4.375%, 5/15/34 | 15,087,625 | ||
| 14,015,000 | U.S. Treasury Note, 4.625%, 4/30/29 | 14,184,713 | ||
| 4,585,000 | U.S. Treasury Note, 4.875%, 5/31/26 | 4,594,134 | ||
| Total U.S. Treasury Obligations | $107,000,754 | |||
| U.S. Government Mortgage-Backed Obligations - 3.5% | ||||
| 1,067 | FHLMC, Pool #G08062, 5.000%, 6/1/35 | 1,056 | ||
| 107,602 | FHLMC, Pool #G08637, 4.000%, 4/1/45 | 101,051 | ||
| 672,622 | FHLMC, Pool #Q02664, 4.500%, 8/1/41 | 655,263 | ||
| 1,167,116 | FHLMC, Pool #Q29056, 4.000%, 10/1/44 | 1,093,659 | ||
| 565,018 | FHLMC, Pool #Q29260, 4.000%, 10/1/44 | 530,817 | ||
| 2,012,123 | FHLMC REMIC, Pool #RA7784, 4.500%, 8/1/52 | 1,902,793 | ||
| 1,508,416 | FHLMC REMIC, Pool #SB0855, 3.000%, 7/1/37 | 1,399,620 | ||
| 2,184,610 | FHLMC REMIC, Pool #SD4499, 3.500%, 5/1/52 | 1,940,275 | ||
| 1,330,075 | FHLMC REMIC, Pool #SD8148, 3.000%, 5/1/51 | 1,140,188 | ||
| 220,709 | FNMA, Pool #725423, 5.500%, 5/1/34 | 221,779 | ||
| 196,041 | FNMA, Pool #725610, 5.500%, 7/1/34 | 196,991 | ||
| 42,005 | FNMA, Pool #748895, 6.000%, 12/1/33 | 41,645 | ||
| 86,135 | FNMA, Pool #AD9193, 5.000%, 9/1/40 | 85,320 | ||
| 223,803 | FNMA, Pool #AH8925, 4.500%, 3/1/41 | 217,747 | ||
| 255,273 | FNMA, Pool #AR9195, 3.000%, 3/1/43 | 225,581 | ||
| 418,950 | FNMA, Pool #BC1809, 3.500%, 5/1/46 | 379,922 | ||
| 1,624,591 | FNMA, Pool #BT7156, 2.000%, 8/1/51 | 1,291,230 | ||
| 1,773,070 | FNMA, Pool #CB1336, 2.000%, 8/1/41 | 1,501,760 | ||
| 2,355,223 | FNMA, Pool #CB2643, 2.500%, 1/1/52 | 1,935,360 | ||
| 1,671,810 | FNMA, Pool #FM5085, 2.000%, 12/1/50 | 1,325,095 | ||
| 525,564 | FNMA, Pool #FM5166, 3.000%, 12/1/50 | 452,773 | ||
| 443,084 | FNMA, Pool #FM5279, 3.500%, 11/1/50 | 397,715 | ||
| 335,331 | FNMA, Pool #FM5468, 2.500%, 1/1/36 | 305,625 | ||
| 513,571 | FNMA, Pool #FM5682, 2.500%, 1/1/51 | 424,192 | ||
| 1,319,486 | FNMA, Pool #FM7913, 2.000%, 4/1/36 | 1,169,592 | ||
| 1,696,206 | FNMA, Pool #FM8360, 2.500%, 8/1/51 | 1,409,027 | ||
| 1,670,190 | FNMA, Pool #FM8361, 2.500%, 8/1/51 | 1,384,052 | ||
| 1,243,708 | FNMA, Pool #FM9448, 2.000%, 10/1/51 | 978,556 | ||
| 1,061,648 | FNMA, Pool #FS0816, 2.500%, 2/1/37 | 961,162 | ||
| 2,103,826 | FNMA, Pool #FS6793, 4.000%, 6/1/53 | 1,930,792 | ||
| 2,235,436 | FNMA, Pool #FS6899, 3.000%, 11/1/51 | 1,907,606 | ||
| 568,870 | FNMA, Pool #MA4166, 3.000%, 10/1/40 | 505,557 | ||
| 382,507 | GNMA, Pool #5175, 4.500%, 9/20/41 | 373,560 |
|
Principal Amount |
MarketValue | |||
|
U.S. Government Mortgage-Backed Obligations - 3.5% (Continued) |
||||
| $ 1,633,134 | GNMA, Pool #786741, 3.500%, 4/20/52 | $ 1,472,615 | ||
| 2,092,959 | GNMA, Pool #MA8945, 4.000%, 6/20/53 | 1,937,989 | ||
| Total U.S. Government Mortgage-Backed Obligations | $31,797,965 | |||
| Commercial Mortgage-Backed Securities - 2.0% | ||||
| 825,000 | BANK, Ser 2018-BN14, Class A3, 3.966%, 9/15/60 | 783,509 | ||
| 26,123,036 | BANK, Ser 2019-BN21, Class XA, 0.956%, 10/17/52(A)(B)(C) | 884,837 | ||
| 905,000 | BANK, Ser 2020-BN26, Class A4, 2.403%, 3/15/63 | 771,816 | ||
| 1,150,000 | BANK, Ser 2022-BNK39, Class A4, 2.928%, 2/15/55(A)(C) | 978,723 | ||
| 670,000 | BBCMS Mortgage Trust, Ser 2024-5C27, Class AS, 6.410%, 7/15/57(A)(C) | 689,038 | ||
| 1,500,000 | BX Commercial Mortgage Trust, Ser 2020-VIV3, Class B, 144a, 3.662%, 3/9/44(A)(C) | 1,324,814 | ||
| 1,500,000 | BX Commercial Mortgage Trust, Ser 2020-VIV4, Class A, 144a, 2.843%, 3/9/44 | 1,300,156 | ||
| 390,000 | Citigroup Commercial Mortgage Trust, Ser 2017-P8, Class AS, 3.789%, 9/15/50(A)(C) | 362,174 | ||
| 755,000 | Citigroup Commercial Mortgage Trust, Ser 2020-GC46, Class A5, 2.717%, 2/15/53 | 660,614 | ||
| 1,220,000 | COMM Mortgage Trust, Ser 2018-HOME, Class A, 144a, 3.942%, 4/10/33(A)(C) | 1,112,348 | ||
| 700,000 | GS Mortgage Securities Trust, Ser 2017-FARM, Class B, 144a, 3.659%, 1/10/43(A)(C) | 596,142 | ||
| 1,205,000 | GS Mortgage Securities Trust, Ser 2020-GC47, Class A5, 2.377%, 5/12/53 | 1,024,935 | ||
| 1,000,000 | HONO Mortgage Trust, Ser 2021-LULU, Class B, 144a, (TSFR1M +1.564%), 6.893%, 10/15/36(A) | 957,276 | ||
| 562,000,000 | Independence Plaza Trust, Ser 2018-INDP, Class XCP, 144a, 7/10/35(A)(B)(C) | 562 | ||
| 885,000 | JP Morgan Chase Commercial Mortgage Securities Trust, Ser 2017-JP7, Class A5, 3.454%, 9/15/50 | 822,590 | ||
| 665,000 | JPMBB Commercial Mortgage Securities Trust, Ser 2014-C25, Class AS, 4.065%, 11/15/47 | 626,177 | ||
| 500,000 | JPMorgan Chase Commercial Mortgage Securities Trust, Ser 2018-MINN, Class A, 144a, (TSFR1M +1.317%), 6.646%, 11/15/35(A) | 475,601 | ||
| 1,100,000 | Morgan Stanley Capital I Trust, Ser 2018-H3, Class A5, 4.177%, 7/15/51 | 1,045,873 | ||
| 825,000 | SG Commercial Mortgage Securities Trust, Ser 2019-787E, Class A, 144a, 4.163%, 2/15/41 | 736,334 | ||
| 435,000 | UBS Commercial Mortgage Trust, Ser 2017-C1, Class AS, 3.724%, 6/15/50 | 405,409 | ||
| 495,000 | Wells Fargo Commercial Mortgage Trust, Ser 2015-P2, Class AS, 4.013%, 12/15/48 | 478,791 | ||
| 770,000 | Wells Fargo Commercial Mortgage Trust, Ser 2018-AUS, Class B, 144a, 4.194%, 8/17/36(A)(C) | 708,928 | ||
| 2,220,000 | Wells Fargo Commercial Mortgage Trust, Ser 2019-C53, Class A4, 3.040%, 10/15/52 | 1,993,200 | ||
| Total Commercial Mortgage-Backed Securities | $18,739,847 | |||
| Asset-Backed Securities - 1.8% | ||||
| 1,000,000 | AB BSL CLO 2 Ltd. (Cayman Islands), Ser 2021-2A, Class B1, 144a, (TSFR3M +1.912%), 7.240%, 4/15/34(A) | 1,001,326 | ||
| 1,500,000 | AB BSL CLO 3, Ltd. (Cayman Islands), Ser 2021-3A, Class B, 144a, (TSFR3M +1.962%), 7.286%, 10/20/34(A) | 1,502,979 | ||
| 337,295 | CF Hippolyta Issuer LLC, Ser 2020-1, Class A1, 144a, 1.690%, 7/15/60 | 319,625 |
5
Table of Contents
Touchstone Balanced Fund(Continued)
|
Principal Amount |
MarketValue | |||
| Asset-Backed Securities - 1.8% (Continued) | ||||
| $ 988,250 | CLI Funding VI LLC, Ser 2020-3A, Class A, 144a, 2.070%, 10/18/45 | $ 893,212 | ||
| 829,063 | Driven Brands Funding LLC, Ser 2019-1A, Class A2, 144a, 4.641%, 4/20/49 | 806,519 | ||
| 195,505 | Elara HGV Timeshare Issuer LLC, Ser 2019-A, Class B, 144a, 2.910%, 1/25/34 | 186,821 | ||
| 1,006,200 | Jack in the Box Funding LLC, Ser 2019-1A, Class A2II, 144a, 4.476%, 8/25/49 | 969,434 | ||
| 955,000 | Jack in the Box Funding LLC, Ser 2022-1A, Class A2I, 144a, 3.445%, 2/26/52 | 889,514 | ||
| 375,165 | Jersey Mike's Funding LLC, Ser 2019-1A, Class A2, 144a, 4.433%, 2/15/50 | 360,601 | ||
| 1,150,000 | Madison Park Funding XLIX Ltd. (Cayman Islands), Ser 2021-49A, Class B1, 144a, (TSFR3M +1.962%), 7.288%, 10/19/34(A) | 1,151,680 | ||
| 824,500 | Neighborly Issuer LLC, Ser 2021-1A, Class A2, 144a, 3.584%, 4/30/51 | 737,694 | ||
| 1,500,000 | Palmer Square CLO, Ltd. (Cayman Islands), Ser 2021-4A, Class B, 144a, (TSFR3M +1.912%), 7.240%, 10/15/34(A) | 1,502,840 | ||
| 977,500 | Planet Fitness Master Issuer LLC, Ser 2022-1A, Class A2I, 144a, 3.251%, 12/5/51 | 917,482 | ||
| 1,500,000 | Rockford Tower CLO, Ltd. (Cayman Islands), Ser 2021-3A, Class B, 144a, (TSFR3M +2.012%), 7.336%, 10/20/34(A) | 1,501,500 | ||
| 294,031 | TAL Advantage VII LLC, Ser 2020-1A, Class A, 144a, 2.050%, 9/20/45 | 268,318 | ||
| 1,160,000 | Textainer Marine Containers, Ltd. (China), Ser 2021-3A, Class A, 144a, 1.940%, 8/20/46 | 997,771 | ||
| 1,400,000 | Towd Point Mortgage Trust, Ser 2015-6, Class B1, 144a, 3.847%, 4/25/55(A)(C) | 1,314,508 | ||
| 1,140,000 | Towd Point Mortgage Trust, Ser 2019-4, Class M1B, 144a, 3.000%, 10/25/59(A)(C) | 944,152 | ||
| Total Asset-Backed Securities | $16,265,976 | |||
| Non-Agency Collateralized Mortgage Obligations - 1.7% | ||||
| 68,243 | Agate Bay Mortgage Trust, Ser 2013-1, Class B3, 144a, 3.557%, 7/25/43(A)(C) | 64,553 | ||
| 250,278 | Agate Bay Mortgage Trust, Ser 2015-4, Class B2, 144a, 3.496%, 6/25/45(A)(C) | 238,255 | ||
| 370,741 | Agate Bay Mortgage Trust, Ser 2015-7, Class B1, 144a, 3.643%, 10/25/45(A)(C) | 340,619 | ||
| 1,387,956 | Angel Oak Mortgage Trust, Ser 2024-1, Class A1, 144a, 5.210%, 8/25/68(A)(C) | 1,360,815 | ||
| 480,536 | COLT Mortgage Loan Trust, Ser 2022-6, Class A1, 144a, 4.650%, 6/27/67(A)(C) | 469,945 | ||
| 134,971 | CSMC Trust, Ser 2013-IVR3, Class B2, 144a, 3.407%, 5/25/43(A)(C) | 129,929 | ||
| 255,613 | CSMC Trust, Ser 2015-1, Class B3, 144a, 3.897%, 1/25/45(A)(C) | 238,623 | ||
| 272,082 | CSMC Trust, Ser 2015-WIN1, Class B3, 144a, 3.769%, 12/25/44(A)(C) | 254,271 | ||
| 877,497 | Deephaven Residential Mortgage Trust, Ser 2022-2, Class A1, 144a, 4.300%, 3/25/67(A)(C) | 832,524 | ||
| 1,408,291 | GCAT Trust, Ser 2022-NQM2, Class A1, 144a, 4.210%, 2/25/67(A)(C) | 1,354,014 | ||
| 1,122,389 | GS Mortgage-Backed Securities Trust, Ser 2021-PJ8, Class A8, 144a, 2.500%, 1/25/52(A)(C) | 966,661 | ||
| 1,281,191 | GS Mortgage-Backed Securities Trust, Ser 2022-PJ1, Class A8, 144a, 2.500%, 5/28/52(A)(C) | 1,095,198 | ||
| 608,503 | JP Morgan Mortgage Trust, Ser 2017-1, Class B2, 144a, 3.449%, 1/25/47(A)(C) | 533,860 | ||
| 1,070,551 | JP Morgan Mortgage Trust, Ser 2020-5, Class B1, 144a, 3.570%, 12/25/50(A)(C) | 911,039 |
|
Principal Amount |
MarketValue | |||
|
Non-Agency Collateralized Mortgage Obligations - 1.7% (Continued) |
||||
| $ 1,439,842 | JP Morgan Mortgage Trust, Ser 2024-3, Class A6, 144a, 3.000%, 5/25/54(A)(C) | $ 1,295,735 | ||
| 573,777 | Mill City Mortgage Loan Trust, Ser 2018-3, Class M3, 144a, 3.250%, 8/25/58(A)(C) | 493,513 | ||
| 1,397,426 | Mill City Mortgage Loan Trust, Ser 2019-1, Class M1, 144a, 3.500%, 10/25/69(A)(C) | 1,284,407 | ||
| 131,279 | Sequoia Mortgage Trust, Ser 2015-2, Class A19, 144a, 3.500%, 5/25/45(A)(C) | 114,907 | ||
| 854,855 | Sequoia Mortgage Trust, Ser 2018-CH3, Class B1B, 144a, 4.764%, 8/25/48(A)(C) | 805,844 | ||
| 775,603 | Sequoia Mortgage Trust, Ser 2018-CH3, Class B2B, 144a, 4.764%, 8/25/48(A)(C) | 731,136 | ||
| 1,333,016 | Verus Securitization Trust, Ser 2022-7, Class A1, 144a, 5.152%, 7/25/67(A)(C) | 1,316,960 | ||
| 1,136,915 | Wells Fargo Mortgage Backed Securities Trust, Ser 2021-2, Class A3, 144a, 2.500%, 6/25/51(A)(C) | 979,394 | ||
| Total Non-Agency Collateralized Mortgage Obligations | $15,812,202 | |||
| Agency Collateralized Mortgage Obligations - 0.6% | ||||
| 515,000 | FHLMC REMIC, Ser 4991, Class HB, 2.000%, 7/25/50 | 358,806 | ||
| 1,650,000 | FHLMC REMIC, Ser 5178, Class CV, 2.000%, 11/25/40 | 1,175,003 | ||
| 1,500,000 | FNMA REMIC, Ser 2019-35, Class KB, 3.000%, 7/25/49 | 1,165,385 | ||
| 2,150,000 | FNMA REMIC, Ser 2022-16, Class KB, 2.500%, 11/25/49 | 1,606,917 | ||
| 1,370,000 | FREMF Mortgage Trust, Ser 2019-K103, Class B, 144a, 3.574%, 12/25/51(A)(C) | 1,243,666 | ||
| 154,361 | GNMA, Ser 2010-169, Class AW, 4.500%, 12/20/40 | 151,616 | ||
| 3,513,630 | GNMA, Ser 2012-147, Class IO, 0.542%, 4/16/54(A)(B)(C) | 36,604 | ||
| Total Agency Collateralized Mortgage Obligations | $5,737,997 | |||
| Sovereign Government Obligations - 0.3% | ||||
| 674,000 | Bahamas Government International Bond, 144a, 6.000%, 11/21/28 | 588,907 | ||
| 834,000 | Chile Government International Bond, 3.100%, 1/22/61 | 516,164 | ||
| 1,034,000 | Mexico Government International Bond, 3.771%, 5/24/61 | 631,907 | ||
| 870,000 | Republic of Poland Government International Bond, 5.500%, 3/18/54 | 844,879 | ||
| Total Sovereign Government Obligations | $2,581,857 |
| Shares | ||||
| Short-Term Investment Fund - 1.6% | ||||
| 14,619,632 | Dreyfus Government Cash Management, Institutional Shares, 5.19%∞Ω | 14,619,632 | ||
|
Total Investment Securities-99.6% (Cost $686,436,170) |
$913,301,543 | |||
| Other Assets in Excess of Liabilities - 0.4% | 3,449,778 | |||
| Net Assets - 100.0% | $916,751,321 |
| (A) | Variable rate security - Rate reflected is the rate in effect as of June 30, 2024. |
| (B) | Interest only security - This type of security represents the right to receive the monthly interest payments on an underlying pool of mortgages. Payments of principal on the pool reduce the value of the "interest only" holding. |
| (C) | Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description. |
6
Table of Contents
Touchstone Balanced Fund(Continued)
| * | Non-income producing security. |
| ∞ | Open-End Fund. |
| Ω | Represents the 7-Day SEC yield as of June 30, 2024. |
| Portfolio Abbreviations: |
| ADR - American Depositary Receipt |
| CLO - Collateralized Loan Obligation |
| DAC - Designated Activity Company |
| FHLMC - Federal Home Loan Mortgage Corporation |
| FNMA - Federal National Mortgage Association |
| FREMF - Freddie Mac Multifamily Securitization |
| GNMA - Government National Mortgage Association |
| ICE - Intercontinental Exchange, Inc. |
| IO - Interest Only |
| LLC - Limited Liability Company |
| LP - Limited Partnership |
| MTN - Medium Term Note |
| PLC - Public Limited Company |
| REIT - Real Estate Investment Trust |
| REMIC - Real Estate Mortgage Investment Conduit |
| TSFR1M - One Month Term Secured Overnight Financing Rate |
| TSFR3M - Three Month Term Secured Overnight Financing Rate |
| 144a - This is a restricted security that was sold in a transaction qualifying for the exemption under Rule 144a of the Securities Act of 1933. This security may be sold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2024, these securities were valued at $64,926,989 or 7.1% of net assets. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees. |
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Level 1 | Level 2 | Level 3 | Total |
| Assets: | ||||
| Common Stocks | $585,647,946 | $- | $- | $585,647,946 |
| Corporate Bonds | - | 115,097,367 | - | 115,097,367 |
| U.S. Treasury Obligations | - | 107,000,754 | - | 107,000,754 |
| U.S. Government Mortgage-Backed Obligations | - | 31,797,965 | - | 31,797,965 |
| Commercial Mortgage-Backed Securities | - | 18,739,847 | - | 18,739,847 |
| Asset-Backed Securities | - | 16,265,976 | - | 16,265,976 |
| Non-Agency Collateralized Mortgage Obligations | - | 15,812,202 | - | 15,812,202 |
| Agency Collateralized Mortgage Obligations | - | 5,737,997 | - | 5,737,997 |
| Sovereign Government Obligations | - | 2,581,857 | - | 2,581,857 |
| Short-Term Investment Fund | 14,619,632 | - | - | 14,619,632 |
| Other Financial Instruments | ||||
| Swap Agreements | ||||
| Credit contracts | - | 63,037 | - | 63,037 |
| Futures | ||||
| Interest rate contracts | 146,407 | - | - | 146,407 |
| Total Assets | $600,413,985 | $313,097,002 | $- | $913,510,987 |
| Liabilities: | ||||
| Other Financial Instruments | ||||
| Futures | ||||
| Interest rate contracts | $(244,647) | $- | $- | $(244,647) |
| Total Liabilities | $(244,647) | $- | $- | $(244,647) |
| Total | $600,169,338 | $313,097,002 | $- | $913,266,340 |
Futures Contracts
At June 30, 2024, $490,105 was segregated with the broker as collateral for futures contracts. The Fund had the following futures contracts, brokered by Wells Fargo, open at June 30, 2024:
| Description | Expiration Date |
Number of Contracts |
Notional Value |
Unrealized Appreciation/ Depreciation |
| Short Futures: | ||||
| 30-Year U.S. Ultra Treasury Bond | 9/19/2024 | 102 | $12,785,063 | $(244,647) |
| Long Futures: | ||||
| 2-Year U.S. Treasury Note | 9/30/2024 | 297 | 60,652,969 | 96,659 |
| 5-Year U.S. Treasury Note | 9/30/2024 | 223 | 23,766,923 | 49,748 |
| $(98,240) |
7
Table of Contents
Touchstone Balanced Fund(Continued)
Centrally Cleared Credit Default Swaps on Credit Indices(1)
| Counterparty |
Termination Date |
Notional Amount(2) |
Pay Fixed Rate |
Clearinghouse |
Underlying Bond |
Value(3) |
Premiums Paid/ (Received) |
Unrealized Appreciation |
| Buy Protection: | ||||||||
| Wells Fargo | 6/20/29 | $10,220,000 | 5.000% | ICE |
Markit CDX North America High Yield Series 42 5Y Index |
$(638,039) | $(701,076) | $63,037 |
| (1) | If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying investments comprising the referenced index or (ii) receive a net settlement amount in the form of cash or investments equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying investments comprising the referenced index. |
| (2) | The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
| (3) | The quoted market prices and resulting values for credit default swap agreements on the underlying bond serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative had the notional amount of the swap agreement been closed/sold as of the period end. Decreasing market values (sell protection) or increasing market values (buy protection) when compared to the notional amount of the swap, represent a deterioration of the referenced entity's credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
See accompanying Notes to Financial Statements.
8
Table of Contents
Portfolio of Investments
Touchstone Core Municipal Bond Fund- June 30, 2024
|
Principal Amount |
Market Value |
|||
| Fixed Rate Revenue Bonds - 75.9% | ||||
| $ 500,000 | Arizona Board of Regents, Revenue, 5.000%, 08/01/54 | $ 541,302 | ||
| 550,000 | Barry County, MO, COP, 5.000%, 10/01/37 | 574,832 | ||
| 500,000 | Beaumont , TX, Waterworks & Sewer System Revenue Ser A, 5.000%, 09/01/26 | 516,377 | ||
| 500,000 | Chicago O'Hare International Airport, Revenue Ser A, 5.000%, 01/01/31 | 518,442 | ||
| 500,000 | Chicago, IL, Wastewater Transmission Revenue Ser C, 5.000%, 01/01/26 | 503,394 | ||
| 450,000 | City of Erie Higher Education Building Authority, Revenue, 5.000%, 05/01/47 | 423,050 | ||
| 500,000 | Cleveland County Educational Fac. Auth., Revenue, 5.000%, 06/01/25 | 506,133 | ||
| 500,000 | Colorado Health Fac. Auth., Revenue, 5.000%, 11/01/28 | 530,513 | ||
| 500,000 | Colorado Health Fac. Auth., Revenue, 5.000%, 05/15/30 | 516,856 | ||
| 500,000 | Colorado Springs School District No 11 Fac. Corp., COP, 5.000%, 12/15/34 | 560,943 | ||
| 500,000 | Connecticut State Health & Educational Fac. Auth., Revenue, 5.000%, 07/01/48 | 522,520 | ||
| 500,000 | County of Miami-Dade FL Transit System, Revenue, 5.000%, 07/01/32 | 507,161 | ||
| 500,000 | County of Nez Perce, COP, 5.000%, 03/01/52 | 523,710 | ||
| 685,000 | DeKalb-Jackson Water Supply District Inc, Revenue Ser A, 5.000%, 07/01/32 | 741,742 | ||
| 500,000 | Florida Development Finance Corp., Revenue Ser A, 5.000%, 06/15/30 | 515,584 | ||
| 425,000 | Georgetown, TX, Utility System Revenue, 5.000%, 08/15/35 | 471,350 | ||
| 500,000 | Greater Jasper School Building Corp., Revenue, 5.000%, 07/15/29 | 530,688 | ||
| 510,000 | Greater Texas Cultural Education Fac. Finance Corp., Revenue, 5.000%, 03/01/28 | 539,048 | ||
| 350,000 | Guam Power Auth., Revenue Ser A, 5.000%, 10/01/26 | 357,386 | ||
| 500,000 | Hamilton County, OH, 5.000%, 08/15/40 | 521,105 | ||
| 1,000,000 | Hamilton County, OH EDR, 5.000%, 06/01/33 | 1,012,202 | ||
| 465,000 | Harris County Cultural Education Fac. Finance Corp., Revenue Ser A, 5.000%, 07/01/52 | 487,144 | ||
| 500,000 | Health Care Auth. for Baptist Health/The, Revenue Ser A, 5.000%, 11/15/32 | 541,731 | ||
| 500,000 | Hospitals & Higher Education Fac. Auth. of Philadelphia/The, Revenue, 5.000%, 07/01/37 | 538,429 | ||
| 500,000 | Illinois Finance Auth., Revenue Ser A, 5.000%, 08/15/47 | 526,686 | ||
| 500,000 | Indiana Finance Auth., Revenue Ser A, 5.750%, 03/01/54 | 534,911 | ||
| 500,000 | Iowa Higher Education Loan Auth., Revenue, 5.375%, 10/01/52 | 516,955 | ||
| 500,000 | Kentucky Asset Liability Commission, Revenue Ser A, 5.000%, 09/01/25 | 509,734 | ||
| 595,000 | Kentucky Public Energy Auth., Revenue Ser 1, 4.000%, 02/01/30 | 590,184 | ||
| 500,000 | Louisiana Local Government Environmental Fac. & Community Development Auth, Revenue, 5.000%, 08/15/30 | 518,425 | ||
| 500,000 | Louisville/Jefferson County Metropolitan Government, Revenue Ser A, 5.000%, 05/15/52 | 517,041 | ||
| 500,000 | Main Street Natural Gas, Inc., Revenue Ser B, 5.000%, 12/01/54 | 529,786 | ||
| 500,000 | Metropolitan Government Nashville & Davidson County Sports Auth., Revenue Ser A, 5.250%, 07/01/53 | 541,194 | ||
| 500,000 | Michigan Finance Authority, Revenue Ser C, 5.000%, 06/01/32 | 542,158 | ||
| 500,000 | Michigan State Building Auth., Revenue Ser I, 5.000%, 04/15/34 | 507,319 | ||
| 500,000 | Millard School District Local Building Auth., Revenue, 5.000%, 05/15/59 | 536,717 |
|
Principal Amount |
Market Value |
|||
| Fixed Rate Revenue Bonds - 75.9% (Continued) | ||||
| $ 500,000 | Missouri Joint Municipal Electric Utility Commission, Revenue, 5.000%, 12/01/36 | $ 548,319 | ||
| 500,000 | Monroeville Finance Auth., Revenue Ser B, 5.000%, 02/15/29 | 535,009 | ||
| 575,000 | Montrose Redevelopment Auth., 5.000%, 09/01/26 | 590,643 | ||
| 500,000 | Municipal Electric Authority of Georgia Ser A, 5.000%, 07/01/52 | 522,081 | ||
| 500,000 | New Hampshire Business Finance Auth., Revenue Ser A, 5.250%, 06/01/51 | 540,111 | ||
| 500,000 | New Jersey Economic Development Auth., Revenue EDR, 5.000%, 03/01/28 | 527,891 | ||
| 500,000 | New Jersey Transportation Trust Fund Authority, Revenue Ser AA, 5.000%, 06/15/45 | 528,638 | ||
| 500,000 | New York State Dormitory Auth., Revenue, 5.000%, 07/01/29 | 518,140 | ||
| 500,000 | Newark Higher Education Finance Corp., Revenue Ser A, 4.000%, 04/01/57 | 450,548 | ||
| 500,000 | Ohio Higher Educational Fac. Commission, 5.000%, 03/01/34 | 488,548 | ||
| 500,000 | Ozark Reorg School District No R-6, COP, 5.000%, 04/01/45 | 524,849 | ||
| 500,000 | Pasco County School Board, COP Ser B, 5.000%, 08/01/46 | 533,367 | ||
| 500,000 | Pennsylvania Economic Development Financing Auth., Revenue EDR Ser 2, 5.000%, 07/01/38 | 532,183 | ||
| 500,000 | Pennsylvania Higher Educational Fac. Auth., Revenue Ser A, 5.000%, 05/01/32 | 540,237 | ||
| 500,000 | Philadelphia Auth. for Industrial Development, Revenue, 5.250%, 11/01/47 | 529,200 | ||
| 500,000 | Polaris Career Center COP, 5.000%, 11/01/35 | 507,577 | ||
| 500,000 | Public Utility District No. 1 of Benton County, Revenue, 5.000%, 11/01/28 | 518,190 | ||
| 500,000 | Pulaski County, AR, Revenue, 5.250%, 03/01/53 | 539,979 | ||
| 500,000 | Regional Transportation District, Revenue Ser A, 5.000%, 01/15/29 | 526,777 | ||
| 500,000 | Regional Transportation District, Revenue Ser A, 5.000%, 01/15/31 | 538,745 | ||
| 500,000 | Rhode Island Health and Educational Building Corp., Revenue Ser A, 5.000%, 05/15/48 | 540,490 | ||
| 500,000 | Rock Hill , SC, Combined Utility System Revenue Ser A, 5.000%, 01/01/54 | 533,945 | ||
| 520,000 | South Carolina Public Service Auth., Revenue Ser A, 4.000%, 12/01/52 | 474,854 | ||
| 500,000 | Southwest Higher Education Auth., Inc., Revenue, 5.000%, 10/01/29 | 515,813 | ||
| 500,000 | St Louis , MO, Airport Revenue Ser A, 5.250%, 07/01/54 | 549,964 | ||
| 500,000 | St Lucie County School Board, COP Ser A, 5.000%, 07/01/48 | 532,830 | ||
| 510,000 | State Board of Higher Education of the State of North Dakota, Revenue Ser A, 5.000%, 04/01/29 | 530,561 | ||
| 500,000 | State of Illinois Sales Tax Revenue Ser B, 5.000%, 06/15/33 | 522,597 | ||
| 500,000 | Tobacco Settlement Financing Corp, Revenue Ser A, 5.000%, 06/01/30 | 527,017 | ||
| 500,000 | Town of Upland, Revenue EDR, 4.000%, 09/01/43 | 480,087 | ||
| 500,000 | Troy Capital Resource Corp., Revenue, 5.000%, 09/01/30 | 541,530 | ||
| 500,000 | Williamsburg LSD, COP, 5.250%, 12/15/53 | 531,186 | ||
| 500,000 | Wisconsin Health & Educational Fac. Auth., Revenue, 5.000%, 03/15/53 | 486,793 | ||
| 500,000 | Wisconsin Health & Educational Fac. Auth., Revenue Ser B, 5.250%, 12/01/48 | 521,847 | ||
| 240,000 | Yamhill County, OR, Revenue, 4.000%, 12/01/41 | 234,864 | ||
| Total Fixed Rate Revenue Bonds | $37,438,162 |
9
Table of Contents
Touchstone Core Municipal Bond Fund(Continued)
|
Principal Amount |
Market Value |
|||
| General Obligation Bonds - 21.1% | ||||
| $ 500,000 | Bartholomew Consolidated School Corp., LTGO, 6.000%, 01/15/26 | $ 519,643 | ||
| 500,000 | Bexar County Hospital District, LTGO, 5.000%, 02/15/48 | 535,224 | ||
| 500,000 | Chicago Board of Education, UTGO Ser A, 4.000%, 12/01/47 | 438,436 | ||
| 500,000 | Chicago, IL, UTGO Ser A, 5.000%, 01/01/34 | 540,048 | ||
| 150,000 | Detroit, MI, UTGO Ser C, 6.000%, 05/01/43 | 171,240 | ||
| 505,000 | Ecorse Public School District, UTGO, 5.000%, 05/01/27 | 528,021 | ||
| 150,000 | Gold Hill Mesa Metropolitan District No 2, LTGO Ser A, 5.000%, 12/01/29 | 159,700 | ||
| 500,000 | Gregg County, TX, LTGO, 5.000%, 09/15/30 | 534,584 | ||
| 500,000 | Homewood, AL, UTGO, 5.000%, 09/01/29 | 517,426 | ||
| 500,000 | Hudsonville Public Schools, UTGO, 5.000%, 05/01/53 | 526,980 | ||
| 500,000 | Jackson, MS, UTGO, 5.000%, 03/01/28 | 510,559 | ||
| 610,000 | Milwaukee, WI, UTGO Ser N3, 5.000%, 04/01/29 | 654,430 | ||
| 500,000 | North Pine Vistas Metropolitan District No 2, LTGO, 5.250%, 12/01/42 | 547,425 | ||
| 450,000 | School District of Philadelphia/The, LTGO Ser B, 5.000%, 09/01/30 | 485,442 | ||
| 440,000 | School District of Philadelphia/The, LTGO Ser D, 5.000%, 09/01/25 | 447,098 | ||
| 500,000 | St Louis, MO, UTGO Ser A, 5.000%, 02/15/43 | 533,817 | ||
| 500,000 | State of Illinois, UTGO Ser B, 5.500%, 05/01/47 | 544,078 | ||
| 1,000,000 | Toledo, OH, LTGO, 4.000%, 12/01/35 | 1,024,925 | ||
| 500,000 | Whispering Pines Metropolitan District No 1, LTGO, 5.000%, 12/01/52 | 518,376 | ||
| 650,000 | Wichita Falls Independent School District, UTGO, 4.000%, 02/01/26 | 656,943 | ||
| Total General Obligation Bonds | $10,394,395 |
| Shares | ||||
| Short-Term Investment Fund - 1.9% | ||||
| 923,937 | Dreyfus Government Cash Management Institutional Shares, 5.19%∞Ω | 923,937 | ||
|
Total Investment Securities-98.9% (Cost $49,509,668) |
$48,756,494 | |||
| Other Assets in Excess of Liabilities - 1.1% | $562,449 | |||
| Net Assets - 100.0% | $49,318,943 |
| ∞ | Open-End Fund. |
| Ω | Represents the 7-Day SEC yield as of June 30, 2024. |
| Portfolio Abbreviations: |
| COP-Certificates of Participation |
| EDR-Economic Development Revenue |
| LSD-Local School District |
| LTGO-Limited Tax General Obligation |
| UTGO-Unlimited Tax General Obligation |
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Level 1 | Level 2 | Level 3 | Total |
| Municipal Bonds | $- | $47,832,557 | $- | $47,832,557 |
| Short-Term Investment Fund | 923,937 | - | - | 923,937 |
| Total | $923,937 | $47,832,557 | $- | $48,756,494 |
See accompanying Notes to Financial Statements.
10
Table of Contents
Portfolio of Investments
Touchstone International Value Fund- June 30, 2024
| Shares |
Market Value |
|||
| Common Stocks - 96.9% | ||||
| Japan - 16.1% | ||||
| Communication Services - 1.0% | ||||
| 39,400 | KDDI Corp. | $ 1,043,765 | ||
| Consumer Discretionary - 5.7% | ||||
| 115,500 | Honda Motor Co. Ltd. | 1,241,624 | ||
| 163,500 | Panasonic Holdings Corp. | 1,344,052 | ||
| 107,300 | Sankyo Co. Ltd. | 1,166,751 | ||
| 88,300 | Sumitomo Rubber Industries Ltd. | 885,908 | ||
| 144,500 | Yamaha Motor Co. Ltd. | 1,343,388 | ||
| Financials - 1.3% | ||||
| 138,500 | Japan Post Holdings Co. Ltd. | 1,376,652 | ||
| Health Care - 1.0% | ||||
| 51,000 | Nippon Shinyaku Co. Ltd. | 1,031,092 | ||
| Industrials - 4.7% | ||||
| 48,000 | Komatsu Ltd. | 1,402,058 | ||
| 79,500 | NGK Insulators Ltd. | 1,020,809 | ||
| 28,000 | NIPPON EXPRESS HOLDINGS, Inc. | 1,295,855 | ||
| 51,600 | Sojitz Corp. | 1,260,447 | ||
| Information Technology - 2.4% | ||||
| 67,800 | Brother Industries Ltd. | 1,197,633 | ||
| 48,900 | Canon, Inc. | 1,326,542 | ||
| Total Japan | 16,936,576 | |||
| China - 7.5% | ||||
| Consumer Discretionary - 3.0% | ||||
| 141,100 | Alibaba Group Holding Ltd. | 1,271,712 | ||
| 75,100 | JD.com, Inc. - Class A | 975,344 | ||
| 70,700 | Vipshop Holdings Ltd. ADR | 920,514 | ||
| Energy - 1.3% | ||||
| 1,352,000 | PetroChina Co. Ltd. Class H | 1,365,189 | ||
| Health Care - 1.1% | ||||
| 1,412,000 | CSPC Pharmaceutical Group Ltd. | 1,124,502 | ||
| Industrials - 1.1% | ||||
| 646,000 | Weichai Power Co. Ltd. Class H | 1,229,895 | ||
| Materials - 1.0% | ||||
| 517,000 | Jiangxi Copper Co. Ltd. Class H | 1,029,065 | ||
| Total China | 7,916,221 | |||
| France - 7.2% | ||||
| Energy - 1.4% | ||||
| 21,800 | TotalEnergies SE | 1,459,592 | ||
| Financials - 1.2% | ||||
| 19,900 | BNP Paribas SA | 1,272,647 | ||
| Industrials - 1.2% | ||||
| 48,500 | Rexel SA | 1,254,625 | ||
| Materials - 1.2% | ||||
| 34,400 | Verallia SA, 144a | 1,251,759 | ||
| Real Estate - 1.3% | ||||
| 49,200 | Klepierre SA REIT | 1,313,539 | ||
| Utilities - 0.9% | ||||
| 35,200 | Rubis SCA | 991,654 | ||
| Total France | 7,543,816 | |||
| United Kingdom - 6.1% | ||||
| Consumer Staples - 3.4% | ||||
| 135,700 | Britvic PLC | 2,025,868 | ||
| 400,300 | Tesco PLC | 1,546,268 |
| Shares |
Market Value |
|||
| Common Stocks - 96.9% (Continued) | ||||
| United Kingdom - (Continued) | ||||
| Financials - 2.7% | ||||
| 207,700 | Investec PLC | $ 1,505,745 | ||
| 341,800 | NatWest Group PLC | 1,344,674 | ||
| Total United Kingdom | 6,422,555 | |||
| Taiwan - 5.6% | ||||
| Information Technology - 5.6% | ||||
| 1,210,000 | Compal Electronics, Inc. | 1,289,864 | ||
| 349,000 | Hon Hai Precision Industry Co. Ltd. | 2,297,790 | ||
| 279,000 | Sercomm Corp. | 1,012,545 | ||
| 201,000 | Sino-American Silicon Products, Inc. | 1,342,578 | ||
| Total Taiwan | 5,942,777 | |||
| Germany - 5.2% | ||||
| Consumer Discretionary - 1.2% | ||||
| 18,900 | Mercedes-Benz Group AG | 1,308,098 | ||
| Financials - 2.7% | ||||
| 82,300 | Deutsche Bank AG | 1,315,365 | ||
| 3,100 | Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | 1,549,861 | ||
| Industrials - 1.3% | ||||
| 33,900 | Daimler Truck Holding AG | 1,352,038 | ||
| Total Germany | 5,525,362 | |||
| India - 5.1% | ||||
| Energy - 2.1% | ||||
| 195,500 | Coal India Ltd. | 1,107,622 | ||
| 285,900 | Petronet LNG Ltd. | 1,130,304 | ||
| Financials - 1.1% | ||||
| 785,500 | Canara Bank | 1,122,864 | ||
| Health Care - 1.0% | ||||
| 78,800 | Natco Pharma Ltd. | 1,098,179 | ||
| Materials - 0.9% | ||||
| 334,500 | Gujarat State Fertilizers & Chemicals Ltd. | 969,160 | ||
| Total India | 5,428,129 | |||
| South Korea - 4.8% | ||||
| Communication Services - 1.3% | ||||
| 35,800 | SK Telecom Co. Ltd. | 1,336,671 | ||
| Consumer Discretionary - 1.3% | ||||
| 14,900 | Kia Corp. | 1,394,214 | ||
| Financials - 1.3% | ||||
| 16,700 | DB Insurance Co. Ltd. | 1,383,644 | ||
| Information Technology - 0.9% | ||||
| 15,700 | Samsung Electronics Co. Ltd. | 924,005 | ||
| Total South Korea | 5,038,534 | |||
| Canada - 4.6% | ||||
| Energy - 1.3% | ||||
| 19,800 | Imperial Oil Ltd. | 1,350,056 | ||
| Financials - 1.5% | ||||
| 59,400 | Manulife Financial Corp. | 1,581,771 | ||
| Industrials - 1.0% | ||||
| 35,400 | Finning International, Inc. | 1,037,896 | ||
| Materials - 0.8% | ||||
| 108,700 | Dundee Precious Metals, Inc. | 850,976 | ||
| Total Canada | 4,820,699 |
11
Table of Contents
Touchstone International Value Fund(Continued)
| Shares |
Market Value |
|||
| Common Stocks - 96.9% (Continued) | ||||
| Switzerland - 4.4% | ||||
| Health Care - 4.4% | ||||
| 26,200 | Novartis AG | $ 2,789,558 | ||
| 6,700 | Roche Holding AG | 1,856,294 | ||
| Total Switzerland | 4,645,852 | |||
| Netherlands - 3.9% | ||||
| Energy - 1.4% | ||||
| 41,300 | Shell PLC | 1,481,348 | ||
| Financials - 2.5% | ||||
| 81,300 | ABN AMRO Bank NV, 144a | 1,335,245 | ||
| 28,500 | NN Group NV | 1,324,636 | ||
| Total Netherlands | 4,141,229 | |||
| Italy - 3.7% | ||||
| Consumer Discretionary - 0.9% | ||||
| 159,900 | Pirelli & C SpA, 144a | 950,193 | ||
| Financials - 1.2% | ||||
| 33,100 | UniCredit SpA | 1,224,899 | ||
| Industrials - 0.5% | ||||
| 21,300 | Leonardo SpA | 493,496 | ||
| Materials - 1.1% | ||||
| 29,400 | Buzzi SpA | 1,183,878 | ||
| Total Italy | 3,852,466 | |||
| Australia - 2.5% | ||||
| Financials - 1.3% | ||||
| 72,700 | ANZ Group Holdings Ltd. | 1,365,866 | ||
| Materials - 1.2% | ||||
| 16,200 | Rio Tinto Ltd. | 1,283,232 | ||
| Total Australia | 2,649,098 | |||
| Spain - 2.4% | ||||
| Financials - 1.3% | ||||
| 306,000 | Banco Santander SA | 1,423,749 | ||
| Information Technology - 1.1% | ||||
| 55,200 | Indra Sistemas SA | 1,133,522 | ||
| Total Spain | 2,557,271 | |||
| United States - 1.5% | ||||
| Health Care - 1.5% | ||||
| 84,600 | GSK PLC | 1,627,215 | ||
| Denmark - 1.4% | ||||
| Financials - 1.4% | ||||
| 49,600 | Danske Bank A/S | 1,479,371 | ||
| Sweden - 1.4% | ||||
| Information Technology - 1.4% | ||||
| 234,400 | Telefonaktiebolaget LM Ericsson - Class B | 1,454,972 | ||
| South Africa - 1.3% | ||||
| Materials - 1.3% | ||||
| 151,900 | Harmony Gold Mining Co. Ltd. | 1,406,328 | ||
| Malaysia - 1.3% | ||||
| Financials - 1.3% | ||||
| 960,500 | CIMB Group Holdings Bhd | 1,383,846 | ||
| Norway - 1.3% | ||||
| Financials - 1.3% | ||||
| 68,300 | DNB Bank ASA | 1,341,436 |
| Shares |
Market Value |
|||
| Common Stocks - 96.9% (Continued) | ||||
| Brazil - 1.2% | ||||
| Materials - 1.2% | ||||
| 113,300 | Vale SA | $ 1,263,303 | ||
| Israel - 1.2% | ||||
| Information Technology - 1.2% | ||||
| 7,400 | Check Point Software Technologies Ltd.* | 1,221,000 | ||
| Mexico - 1.1% | ||||
| Consumer Staples - 1.1% | ||||
| 685,100 | Kimberly-Clark de Mexico SAB de CV - Class A | 1,181,465 | ||
| Hong Kong - 1.1% | ||||
| Health Care - 1.1% | ||||
| 1,082,000 | United Laboratories International Holdings Ltd. (The) | 1,141,711 | ||
| Austria - 1.1% | ||||
| Financials - 1.1% | ||||
| 24,100 | Erste Group Bank AG | 1,140,777 | ||
| Indonesia - 1.1% | ||||
| Utilities - 1.1% | ||||
| 11,771,900 | Perusahaan Gas Negara Tbk PT | 1,107,098 | ||
| Belgium - 1.0% | ||||
| Financials - 1.0% | ||||
| 23,900 | Ageas SA | 1,090,480 | ||
| Greece - 1.0% | ||||
| Communication Services - 1.0% | ||||
| 69,700 | Hellenic Telecommunications Organization SA | 1,003,232 | ||
| Finland - 0.8% | ||||
| Industrials - 0.8% | ||||
| 11,060 | Cargotec Oyj | 888,619 | ||
| Total Common Stocks | $102,151,438 | |||
| Short-Term Investment Fund - 1.9% | ||||
| 2,051,181 | Dreyfus Government Cash Management, Institutional Shares, 5.19%∞Ω | 2,051,181 | ||
|
Total Investment Securities - 98.8% (Cost $102,779,480) |
$104,202,619 | |||
| Other Assets in Excess of Liabilities - 1.2% | 1,219,727 | |||
| Net Assets - 100.0% | $105,422,346 |
| * | Non-income producing security. |
| ∞ | Open-End Fund. |
| Ω | Represents the 7-Day SEC yield as of June 30, 2024. |
| Portfolio Abbreviations: |
| ADR - American Depositary Receipt |
| PLC - Public Limited Company |
| REIT - Real Estate Investment Trust |
| 144a - This is a restricted security that was sold in a transaction qualifying for the exemption under Rule 144a of the Securities Act of 1933. This security may be sold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2024, these securities were valued at $3,537,197 or 3.4% of net assets. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees. |
12
Table of Contents
Touchstone International Value Fund(Continued)
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
| Valuation inputs at Reporting Date: | ||||
| Description | Level 1 | Level 2 | Level 3 | Total |
| Common Stocks | ||||
| Japan | $- | $16,936,576 | $- | $16,936,576 |
| China | 920,514 | 6,995,707 | - | 7,916,221 |
| France | - | 7,543,816 | - | 7,543,816 |
| United Kingdom | 3,531,613 | 2,890,942 | - | 6,422,555 |
| Taiwan | - | 5,942,777 | - | 5,942,777 |
| Germany | - | 5,525,362 | - | 5,525,362 |
| India | - | 5,428,129 | - | 5,428,129 |
| South Korea | - | 5,038,534 | - | 5,038,534 |
| Canada | 4,820,699 | - | - | 4,820,699 |
| Switzerland | - | 4,645,852 | - | 4,645,852 |
| Netherlands | - | 4,141,229 | - | 4,141,229 |
| Italy | - | 3,852,466 | - | 3,852,466 |
| Australia | - | 2,649,098 | - | 2,649,098 |
| Spain | - | 2,557,271 | - | 2,557,271 |
| United States | - | 1,627,215 | - | 1,627,215 |
| Denmark | - | 1,479,371 | - | 1,479,371 |
| Sweden | - | 1,454,972 | - | 1,454,972 |
| South Africa | - | 1,406,328 | - | 1,406,328 |
| Malaysia | - | 1,383,846 | - | 1,383,846 |
| Norway | 1,341,436 | - | - | 1,341,436 |
| Brazil | 1,263,303 | - | - | 1,263,303 |
| Israel | 1,221,000 | - | - | 1,221,000 |
| Mexico | 1,181,465 | - | - | 1,181,465 |
| Hong Kong | 1,141,711 | - | - | 1,141,711 |
| Austria | - | 1,140,777 | - | 1,140,777 |
| Indonesia | 1,107,098 | - | - | 1,107,098 |
| Belgium | - | 1,090,480 | - | 1,090,480 |
| Greece | 1,003,232 | - | - | 1,003,232 |
| Finland | - | 888,619 | - | 888,619 |
| Short-Term Investment Fund | 2,051,181 | - | - | 2,051,181 |
| Total | $19,583,252 | $84,619,367 | $- | $104,202,619 |
See accompanying Notes to Financial Statements.
13
Table of Contents
Portfolio of Investments
Touchstone Large Cap Focused Fund- June 30, 2024
| Shares |
Market Value |
|||
| Common Stocks - 96.4% | ||||
| Information Technology - 29.8% | ||||
| 1,192,750 | Apple, Inc. | $ 251,217,005 | ||
| 217,917 | International Business Machines Corp. | 37,688,745 | ||
| 757,177 | Microsoft Corp. | 338,420,260 | ||
| 683,582 | NVIDIA Corp. | 84,449,720 | ||
| 517,541 | Oracle Corp. | 73,076,789 | ||
| 273,284 | Salesforce, Inc. | 70,261,317 | ||
| 249,542 | Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan) ADR | 43,372,895 | ||
| 325,115 | Texas Instruments, Inc. | 63,244,621 | ||
| 174,337 | Workday, Inc. - Class A* | 38,974,780 | ||
| 1,000,706,132 | ||||
| Communication Services - 15.3% | ||||
| 1,167,554 | Alphabet, Inc. - Class C | 214,152,755 | ||
| 1,034,614 | Comcast Corp. - Class A | 40,515,484 | ||
| 387,355 | Meta Platforms, Inc. - Class A | 195,312,138 | ||
| 59,131 | Netflix, Inc.* | 39,906,329 | ||
| 236,159 | Walt Disney Co. (The) | 23,448,227 | ||
| 513,334,933 | ||||
| Financials - 13.3% | ||||
| 1,968,763 | Bank of America Corp. | 78,297,704 | ||
| 285,282 | Berkshire Hathaway, Inc. - Class B* | 116,052,718 | ||
| 566,051 | Charles Schwab Corp. (The) | 41,712,298 | ||
| 168,490 | Goldman Sachs Group, Inc. (The) | 76,211,397 | ||
| 36,350 | Markel Group, Inc.* | 57,275,241 | ||
| 289,541 | Visa, Inc. - Class A | 75,995,826 | ||
| 445,545,184 | ||||
| Health Care - 12.5% | ||||
| 188,446 | Becton Dickinson & Co. | 44,041,715 | ||
| 454,331 | BioMarin Pharmaceutical, Inc.* | 37,405,071 | ||
| 825,047 | Bristol-Myers Squibb Co. | 34,264,202 | ||
| 244,688 | HCA Healthcare, Inc. | 78,613,361 | ||
| 517,873 | Johnson & Johnson | 75,692,318 | ||
| 732,329 | Medtronic PLC | 57,641,615 | ||
| 179,842 | UnitedHealth Group, Inc. | 91,586,337 | ||
| 419,244,619 | ||||
| Consumer Discretionary - 7.9% | ||||
| 282,318 | Airbnb, Inc. - Class A* | 42,807,878 | ||
| 180,099 | Alibaba Group Holding Ltd. (China) ADR | 12,967,128 | ||
| 955,520 | Amazon.com, Inc.* | 184,654,240 | ||
| 327,273 | Starbucks Corp. | 25,478,203 | ||
| 265,907,449 | ||||
| Industrials - 7.5% | ||||
| 239,757 | Boeing Co. (The)* | 43,638,172 | ||
| 94,428 | FedEx Corp. | 28,313,292 | ||
| 99,781 | Hubbell, Inc. | 36,467,960 | ||
| 545,667 | RTX Corp. | 54,779,510 | ||
| 820,086 | Southwest Airlines Co. | 23,462,660 | ||
| 597,739 | SS&C Technologies Holdings, Inc. | 37,460,303 | ||
| 341,064 | Stanley Black & Decker, Inc. | 27,247,603 | ||
| 251,369,500 |
| Shares |
Market Value |
|||
| Common Stocks - 96.4% (Continued) | ||||
| Consumer Staples - 3.9% | ||||
| 171,679 | Diageo PLC (United Kingdom) ADR | $ 21,645,288 | ||
| 992,197 | Monster Beverage Corp.* | 49,560,240 | ||
| 610,083 | Philip Morris International, Inc. | 61,819,711 | ||
| 133,025,239 | ||||
| Energy - 2.6% | ||||
| 614,529 | Exxon Mobil Corp. | 70,744,579 | ||
| 365,452 | Schlumberger NV | 17,242,025 | ||
| 87,986,604 | ||||
| Materials - 2.5% | ||||
| 613,323 | DuPont de Nemours, Inc. | 49,366,369 | ||
| 361,806 | International Flavors & Fragrances, Inc. | 34,447,549 | ||
| 83,813,918 | ||||
| Real Estate - 1.1% | ||||
| 188,994 | Jones Lang LaSalle, Inc.* | 38,796,688 | ||
| Total Common Stocks | $3,239,730,266 | |||
| Short-Term Investment Fund - 3.6% | ||||
| 119,707,777 | Dreyfus Government Cash Management, Institutional Shares, 5.19%∞Ω | 119,707,777 | ||
|
Total Investment Securities-100.0% (Cost $1,795,795,332) |
$3,359,438,043 | |||
| Other Assets in Excess of Liabilities - 0.0% | 33,453 | |||
| Net Assets - 100.0% | $3,359,471,496 |
| * | Non-income producing security. |
| ∞ | Open-End Fund. |
| Ω | Represents the 7-Day SEC yield as of June 30, 2024. |
| Portfolio Abbreviations: |
| ADR - American Depositary Receipt |
| PLC - Public Limited Company |
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Level 1 | Level 2 | Level 3 | Total |
| Common Stocks | $3,239,730,266 | $- | $- | $3,239,730,266 |
| Short-Term Investment Fund | 119,707,777 | - | - | 119,707,777 |
| Total | $3,359,438,043 | $- | $- | $3,359,438,043 |
See accompanying Notes to Financial Statements.
14
Table of Contents
Portfolio of Investments
Touchstone Large Cap Fund- June 30, 2024
| Shares |
Market Value |
|||
| Common Stocks - 98.8% | ||||
| Financials - 27.0% | ||||
| 46,593 | Berkshire Hathaway, Inc. - Class B* | $ 18,954,032 | ||
| 15,544 | BlackRock, Inc. | 12,238,102 | ||
| 137,878 | Charles Schwab Corp. (The) | 10,160,230 | ||
| 68,112 | Fiserv, Inc.* | 10,151,413 | ||
| 63,682 | Progressive Corp. (The) | 13,227,388 | ||
| 41,605 | Visa, Inc. - Class A | 10,920,064 | ||
| 75,651,229 | ||||
| Information Technology - 13.6% | ||||
| 83,155 | Apple, Inc. | 17,514,106 | ||
| 110,057 | Cisco Systems, Inc. | 5,228,808 | ||
| 37,043 | TE Connectivity Ltd. (Switzerland) | 5,572,379 | ||
| 50,523 | Texas Instruments, Inc. | 9,828,239 | ||
| 38,143,532 | ||||
| Industrials - 13.0% | ||||
| 33,303 | FedEx Corp. | 9,985,572 | ||
| 50,698 | Norfolk Southern Corp. | 10,884,354 | ||
| 33,125 | Old Dominion Freight Line, Inc. | 5,849,875 | ||
| 49,404 | Republic Services, Inc. | 9,601,173 | ||
| 36,320,974 | ||||
| Consumer Discretionary - 12.4% | ||||
| 58,894 | CarMax, Inc.* | 4,319,286 | ||
| 28,039 | Home Depot, Inc. (The) | 9,652,145 | ||
| 24,024 | Lowe's Cos., Inc. | 5,296,331 | ||
| 8,222 | O'Reilly Automotive, Inc.* | 8,682,925 | ||
| 86,536 | Starbucks Corp. | 6,736,828 | ||
| 34,687,515 | ||||
| Materials - 11.0% | ||||
| 48,022 | Air Products & Chemicals, Inc. | 12,392,077 | ||
| 17,630 | Martin Marietta Materials, Inc. | 9,551,934 | ||
| 16,927 | NewMarket Corp. | 8,727,054 | ||
| 30,671,065 | ||||
| Consumer Staples - 8.4% | ||||
| 168,616 | Altria Group, Inc. | 7,680,459 | ||
| 78,212 | Church & Dwight Co., Inc. | 8,109,020 | ||
| 76,049 | Nestle SA (Switzerland) ADR | 7,791,220 | ||
| 23,580,699 |
| Shares |
Market Value |
|||
| Common Stocks - 98.8% (Continued) | ||||
| Communication Services - 7.5% | ||||
| 113,724 | Alphabet, Inc. - Class C | $ 20,859,256 | ||
| Health Care - 3.2% | ||||
| 38,815 | Johnson & Johnson | 5,673,200 | ||
| 119,251 | Pfizer, Inc. | 3,336,643 | ||
| 9,009,843 | ||||
| Energy - 2.7% | ||||
| 48,964 | Chevron Corp. | 7,658,949 | ||
| Total Common Stocks | $276,583,062 | |||
| Short-Term Investment Fund - 1.2% | ||||
| 3,303,289 | Dreyfus Government Cash Management, Institutional Shares, 5.19%∞Ω | 3,303,289 | ||
|
Total Investment Securities-100.0% (Cost $161,545,456) |
$279,886,351 | |||
| Liabilities in Excess of Other Assets - (0.0%) | (18,297) | |||
| Net Assets - 100.0% | $279,868,054 |
| * | Non-income producing security. |
| ∞ | Open-End Fund. |
| Ω | Represents the 7-Day SEC yield as of June 30, 2024. |
| Portfolio Abbreviations: |
| ADR - American Depositary Receipt |
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Level 1 | Level 2 | Level 3 | Total |
| Common Stocks | $276,583,062 | $- | $- | $276,583,062 |
| Short-Term Investment Fund | 3,303,289 | - | - | 3,303,289 |
| Total | $279,886,351 | $- | $- | $279,886,351 |
See accompanying Notes to Financial Statements.
15
Table of Contents
Portfolio of Investments
Touchstone Large Company Growth Fund- June 30, 2024
| Shares |
Market Value |
|||
| Common Stocks - 99.8% | ||||
| Information Technology - 57.8% | ||||
| 6,822 | Adobe, Inc.* | $ 3,789,894 | ||
| 25,250 | Advanced Micro Devices, Inc.* | 4,095,803 | ||
| 34,706 | Apple, Inc. | 7,309,778 | ||
| 32,888 | Arista Networks, Inc.* | 11,526,586 | ||
| 6,143 | ASML Holding NV (Netherlands) | 6,282,630 | ||
| 15,404 | Autodesk, Inc.* | 3,811,720 | ||
| 25,337 | Dynatrace, Inc.* | 1,133,577 | ||
| 24,565 | Entegris, Inc. | 3,326,101 | ||
| 46,898 | Fortinet, Inc.* | 2,826,542 | ||
| 10,089 | Intuit, Inc. | 6,630,592 | ||
| 41,480 | Microsoft Corp. | 18,539,486 | ||
| 155,971 | NVIDIA Corp. | 19,268,657 | ||
| 88,541,366 | ||||
| Communication Services - 13.1% | ||||
| 70,303 | Alphabet, Inc. - Class A | 12,805,691 | ||
| 14,453 | Meta Platforms, Inc. - Class A | 7,287,492 | ||
| 20,093,183 | ||||
| Financials - 8.9% | ||||
| 30,345 | Charles Schwab Corp. (The) | 2,236,123 | ||
| 28,233 | Fiserv, Inc.* | 4,207,846 | ||
| 5,284 | Mastercard, Inc. - Class A | 2,331,090 | ||
| 18,683 | Visa, Inc. - Class A | 4,903,727 | ||
| 13,678,786 | ||||
| Consumer Discretionary - 8.5% | ||||
| 67,336 | Amazon.com, Inc.* | 13,012,682 | ||
| Health Care - 5.5% | ||||
| 24,052 | Neurocrine Biosciences, Inc.* | 3,311,239 | ||
| 35,266 | Novo Nordisk A/S (Denmark) ADR | 5,033,869 | ||
| 8,345,108 | ||||
| Industrials - 4.1% | ||||
| 8,480 | General Electric Co. | 1,348,066 | ||
| 9,078 | Howmet Aerospace, Inc. | 704,725 | ||
| 58,962 | Uber Technologies, Inc.* | 4,285,358 | ||
| 6,338,149 |
| Shares |
Market Value |
|||
| Common Stocks - 99.8% (Continued) | ||||
| Consumer Staples - 1.9% | ||||
| 56,739 | Monster Beverage Corp.* | $ 2,834,113 | ||
| Total Common Stocks | $152,843,387 | |||
| Short-Term Investment Fund - 1.3% | ||||
| 1,997,894 | Dreyfus Government Cash Management, Institutional Shares, 5.19%∞Ω | 1,997,894 | ||
|
Total Investment Securities-101.1% (Cost $83,593,637) |
$154,841,281 | |||
| Liabilities in Excess of Other Assets - (1.1%) | (1,725,505) | |||
| Net Assets - 100.0% | $153,115,776 |
| * | Non-income producing security. |
| ∞ | Open-End Fund. |
| Ω | Represents the 7-Day SEC yield as of June 30, 2024. |
| Portfolio Abbreviations: |
| ADR - American Depositary Receipt |
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Level 1 | Level 2 | Level 3 | Total |
| Common Stocks | $152,843,387 | $- | $- | $152,843,387 |
| Short-Term Investment Fund | 1,997,894 | - | - | 1,997,894 |
| Total | $154,841,281 | $- | $- | $154,841,281 |
See accompanying Notes to Financial Statements.
16
Table of Contents
Portfolio of Investments
Touchstone Small Company Fund- June 30, 2024
| Shares |
Market Value |
|||
| Common Stocks - 97.9% | ||||
| Industrials - 20.6% | ||||
| 125,669 | Albany International Corp. - Class A | $ 10,612,747 | ||
| 37,004 | CACI International, Inc. - Class A* | 15,916,530 | ||
| 69,755 | Clean Harbors, Inc.* | 15,775,093 | ||
| 81,602 | Crane Co. | 11,830,658 | ||
| 264,039 | CSG Systems International, Inc. | 10,870,486 | ||
| 41,518 | Curtiss-Wright Corp. | 11,250,548 | ||
| 30,820 | EMCOR Group, Inc. | 11,251,766 | ||
| 152,356 | ESCO Technologies, Inc. | 16,003,474 | ||
| 552,265 | ExlService Holdings, Inc.* | 17,319,030 | ||
| 126,619 | Federal Signal Corp. | 10,594,212 | ||
| 119,948 | ITT, Inc. | 15,494,883 | ||
| 242,409 | KBR, Inc. | 15,548,113 | ||
| 239,316 | MAXIMUS, Inc. | 20,509,381 | ||
| 473,040 | WNS Holdings Ltd. (India) ADR* | 24,834,600 | ||
| 345,274 | Zurn Elkay Water Solutions Corp. | 10,151,056 | ||
| 217,962,577 | ||||
| Information Technology - 19.7% | ||||
| 103,098 | Advanced Energy Industries, Inc. | 11,212,938 | ||
| 380,751 | Allegro MicroSystems, Inc. (Japan)* | 10,752,408 | ||
| 613,617 | Box, Inc. - Class A* | 16,224,033 | ||
| 1,796,728 | CCC Intelligent Solutions Holdings, Inc.* | 19,961,648 | ||
| 229,210 | Ciena Corp.* | 11,043,338 | ||
| 157,465 | CommVault Systems, Inc.* | 19,143,020 | ||
| 184,137 | Crane NXT Co. | 11,309,695 | ||
| 547,183 | DoubleVerify Holdings, Inc.* | 10,653,653 | ||
| 350,000 | LiveRamp Holdings, Inc.* | 10,829,000 | ||
| 69,253 | Onto Innovation, Inc.* | 15,205,189 | ||
| 80,500 | Qualys, Inc.* | 11,479,300 | ||
| 59,771 | SPS Commerce, Inc.* | 11,246,511 | ||
| 324,220 | Teradata Corp.* | 11,205,043 | ||
| 404,460 | Tower Semiconductor Ltd. (Israel)*† | 15,899,323 | ||
| 663,825 | Verint Systems, Inc.* | 21,375,165 | ||
| 207,540,264 | ||||
| Health Care - 17.7% | ||||
| 406,772 | Astrana Health, Inc.* | 16,498,672 | ||
| 212,776 | Bio-Techne Corp. | 15,245,401 | ||
| 29,035 | Chemed Corp. | 15,753,810 | ||
| 389,300 | Doximity, Inc. - Class A* | 10,888,721 | ||
| 186,072 | Encompass Health Corp. | 15,963,117 | ||
| 126,487 | Ensign Group, Inc. (The) | 15,645,177 | ||
| 310,363 | Globus Medical, Inc. - Class A* | 21,256,762 | ||
| 188,270 | Haemonetics Corp.* | 15,575,577 | ||
| 196,764 | Merit Medical Systems, Inc.* | 16,911,866 | ||
| 555,509 | Option Care Health, Inc.* | 15,387,599 | ||
| 379,008 | Pacira BioSciences, Inc.* | 10,843,419 | ||
| 590,413 | Progyny, Inc.* | 16,891,716 | ||
| 186,861,837 | ||||
| Consumer Discretionary - 14.8% | ||||
| 103,080 | Crocs, Inc.* | 15,043,495 | ||
| 438,876 | Frontdoor, Inc.* | 14,829,620 | ||
| 325,760 | Gentex Corp. | 10,981,370 | ||
| 114,995 | Grand Canyon Education, Inc.* | 16,088,950 | ||
| 283,609 | Malibu Boats, Inc. - Class A* | 9,937,659 | ||
| 100,159 | Oxford Industries, Inc. | 10,030,924 | ||
| 99,060 | PVH Corp. | 10,487,482 | ||
| 158,037 | Skyline Champion Corp.* | 10,707,007 | ||
| 403,890 | Steven Madden Ltd. | 17,084,547 | ||
| 152,045 | Stride, Inc.* | 10,719,173 |
| Shares |
Market Value |
|||
| Common Stocks - 97.9% (Continued) | ||||
| Consumer Discretionary - 14.8% (Continued) | ||||
| 92,729 | Texas Roadhouse, Inc. | $ 15,922,497 | ||
| 37,953 | TopBuild Corp.* | 14,622,152 | ||
| 156,454,876 | ||||
| Real Estate - 8.0% | ||||
| 271,357 | Agree Realty Corp. REIT | 16,807,853 | ||
| 763,030 | Apple Hospitality REIT, Inc. | 11,094,456 | ||
| 102,334 | Colliers International Group, Inc. (Canada)† | 11,425,591 | ||
| 660,269 | COPT Defense Properties REIT | 16,526,533 | ||
| 549,801 | Kite Realty Group Trust REIT | 12,304,547 | ||
| 454,439 | STAG Industrial, Inc. REIT | 16,387,070 | ||
| 84,546,050 | ||||
| Financials - 7.8% | ||||
| 501,708 | Atlantic Union Bankshares Corp. | 16,481,108 | ||
| 58,680 | Evercore, Inc. - Class A | 12,230,672 | ||
| 1,197,497 | FNB Corp. | 16,381,759 | ||
| 675,072 | Home BancShares, Inc. | 16,174,725 | ||
| 137,205 | SouthState Corp. | 10,485,206 | ||
| 246,393 | Webster Financial Corp. | 10,740,271 | ||
| 82,493,741 | ||||
| Materials - 3.4% | ||||
| 115,974 | Ashland, Inc. | 10,958,383 | ||
| 46,760 | Eagle Materials, Inc. | 10,168,430 | ||
| 353,323 | Silgan Holdings, Inc. | 14,956,162 | ||
| 36,082,975 | ||||
| Communication Services - 3.3% | ||||
| 873,331 | Cargurus, Inc.* | 22,881,272 | ||
| 207,991 | Ziff Davis, Inc.* | 11,449,905 | ||
| 34,331,177 | ||||
| Energy - 2.6% | ||||
| 309,427 | Cactus, Inc. - Class A | 16,319,180 | ||
| 461,610 | Oceaneering International, Inc.* | 10,921,692 | ||
| 27,240,872 | ||||
| Total Common Stocks | $1,033,514,369 | |||
| Short-Term Investment Funds - 3.6% | ||||
| 22,478,588 | Dreyfus Government Cash Management, Institutional Shares, 5.19%∞Ω | 22,478,588 | ||
| 15,468,550 | Invesco Government & Agency Portfolio, Institutional Class, 5.23%∞Ω** | 15,468,550 | ||
| Total Short-Term Investment Funds | $37,947,138 | |||
|
Total Investment Securities-101.5% (Cost $814,546,036) |
$1,071,461,507 | |||
| Liabilities in Excess of Other Assets - (1.5%) | (15,395,969) | |||
| Net Assets - 100.0% | $1,056,065,538 |
| * | Non-income producing security. |
| ** | Represents collateral for securities loaned. |
| † | All or a portion of the security is on loan. The total market value of the securities on loan as of June 30, 2024 was $15,339,549. |
| ∞ | Open-End Fund. |
| Ω | Represents the 7-Day SEC yield as of June 30, 2024. |
| Portfolio Abbreviations: |
| ADR - American Depositary Receipt |
| REIT - Real Estate Investment Trust |
17
Table of Contents
Touchstone Small Company Fund(Continued)
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Level 1 | Level 2 | Level 3 | Total |
| Common Stocks | $1,033,514,369 | $- | $- | $1,033,514,369 |
| Short-Term Investment Funds | 37,947,138 | - | - | 37,947,138 |
| Total | $1,071,461,507 | $- | $- | $1,071,461,507 |
See accompanying Notes to Financial Statements.
18
Table of Contents
Portfolio of Investments
Touchstone Value Fund- June 30, 2024
| Shares |
Market Value |
|||
| Common Stocks - 97.5% | ||||
| Financials - 15.5% | ||||
| 39,471 | American Express Co. | $ 9,139,510 | ||
| 152,626 | American International Group, Inc. | 11,330,953 | ||
| 116,255 | Bank of Nova Scotia (The) (Canada)† | 5,315,179 | ||
| 262,426 | Fidelity National Information Services, Inc. | 19,776,423 | ||
| 38,604 | M&T Bank Corp. | 5,843,101 | ||
| 60,906 | The Allstate Corp. | 9,724,252 | ||
| 123,798 | US Bancorp | 4,914,781 | ||
| 179,234 | Wells Fargo & Co. | 10,644,707 | ||
| 28,261 | Willis Towers Watson PLC | 7,408,339 | ||
| 84,097,245 | ||||
| Health Care - 12.0% | ||||
| 431,148 | Avantor, Inc.* | 9,140,338 | ||
| 30,540 | Elevance Health, Inc. | 16,548,404 | ||
| 105,197 | Medtronic PLC | 8,280,056 | ||
| 113,306 | Merck & Co., Inc. | 14,027,283 | ||
| 137,560 | Sanofi SA ADR | 6,674,411 | ||
| 20,686 | UnitedHealth Group, Inc. | 10,534,552 | ||
| 65,205,044 | ||||
| Energy - 11.7% | ||||
| 401,350 | Enbridge, Inc. (Canada) | 14,284,046 | ||
| 129,573 | Exxon Mobil Corp. | 14,916,444 | ||
| 355,587 | Halliburton Co. | 12,011,729 | ||
| 73,280 | Hess Corp. | 10,810,266 | ||
| 83,720 | Phillips 66 | 11,818,752 | ||
| 63,841,237 | ||||
| Consumer Discretionary - 11.3% | ||||
| 162,798 | Aptiv PLC* | 11,464,235 | ||
| 283,400 | Aramark | 9,641,268 | ||
| 436,740 | Carnival Corp.* | 8,175,773 | ||
| 305,831 | Las Vegas Sands Corp. | 13,533,022 | ||
| 40,636 | Lithia Motors, Inc. | 10,258,558 | ||
| 93,031 | Wynn Resorts Ltd. | 8,326,274 | ||
| 61,399,130 | ||||
| Information Technology - 10.9% | ||||
| 10,532 | Broadcom, Inc. | 16,909,442 | ||
| 95,376 | Cognizant Technology Solutions Corp. - Class A | 6,485,568 | ||
| 84,313 | Oracle Corp. | 11,904,996 | ||
| 97,776 | QUALCOMM, Inc. | 19,475,024 | ||
| 45,075 | Skyworks Solutions, Inc. | 4,804,093 | ||
| 59,579,123 | ||||
| Industrials - 9.4% | ||||
| 50,483 | AECOM | 4,449,572 | ||
| 72,330 | Jacobs Solutions, Inc. | 10,105,224 | ||
| 55,346 | JB Hunt Transport Services, Inc. | 8,855,360 | ||
| 113,047 | Johnson Controls International PLC | 7,514,234 | ||
| 65,165 | Stanley Black & Decker, Inc. | 5,206,032 | ||
| 174,508 | Vertiv Holdings Co. - Class A | 15,107,158 | ||
| 51,237,580 | ||||
| Materials - 8.2% | ||||
| 68,724 | Air Products & Chemicals, Inc. | 17,734,228 | ||
| 304,225 | Axalta Coating Systems Ltd.* | 10,395,368 | ||
| 159,161 | CRH PLC | 11,933,892 | ||
| 57,528 | DuPont de Nemours, Inc. | 4,630,429 | ||
| 44,693,917 |
| Shares |
Market Value |
|||
| Common Stocks - 97.5% (Continued) | ||||
| Communication Services - 6.0% | ||||
| 60,007 | Alphabet, Inc. - Class A | $ 10,930,275 | ||
| 366,850 | Comcast Corp. - Class A | 14,365,846 | ||
| 53,060 | Electronic Arts, Inc. | 7,392,850 | ||
| 32,688,971 | ||||
| Utilities - 4.7% | ||||
| 153,596 | Entergy Corp. | 16,434,772 | ||
| 122,634 | Pinnacle West Capital Corp. | 9,366,785 | ||
| 25,801,557 | ||||
| Consumer Staples - 4.4% | ||||
| 261,058 | Keurig Dr Pepper, Inc. | 8,719,337 | ||
| 148,596 | Philip Morris International, Inc. | 15,057,233 | ||
| 23,776,570 | ||||
| Real Estate - 3.4% | ||||
| 31,887 | Public Storage REIT | 9,172,296 | ||
| 324,371 | VICI Properties, Inc. REIT | 9,289,985 | ||
| 18,462,281 | ||||
| Total Common Stocks | $530,782,655 | |||
| Short-Term Investment Funds - 3.4% | ||||
| 13,398,857 | Dreyfus Government Cash Management, Institutional Shares, 5.19%∞Ω | 13,398,857 | ||
| 5,347,500 | Invesco Government & Agency Portfolio, Institutional Class, 5.23%∞Ω** | 5,347,500 | ||
| Total Short-Term Investment Funds | $18,746,357 | |||
|
Total Investment Securities-100.9% (Cost $418,185,165) |
$549,529,012 | |||
| Liabilities in Excess of Other Assets - (0.9%) | (4,984,684) | |||
| Net Assets - 100.0% | $544,544,328 |
| * | Non-income producing security. |
| ** | Represents collateral for securities loaned. |
| † | All or a portion of the security is on loan. The total market value of the securities on loan as of June 30, 2024 was $5,257,800. |
| ∞ | Open-End Fund. |
| Ω | Represents the 7-Day SEC yield as of June 30, 2024. |
| Portfolio Abbreviations: |
| ADR - American Depositary Receipt |
| PLC - Public Limited Company |
| REIT - Real Estate Investment Trust |
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Level 1 | Level 2 | Level 3 | Total |
| Common Stocks | $530,782,655 | $- | $- | $530,782,655 |
| Short-Term Investment Funds | 18,746,357 | - | - | 18,746,357 |
| Total | $549,529,012 | $- | $- | $549,529,012 |
See accompanying Notes to Financial Statements.
19
Table of Contents
Statements of Assets and Liabilities
June 30, 2024
|
Touchstone Balanced Fund |
Touchstone Core Municipal Bond Fund |
Touchstone International Value Fund |
Touchstone Large Cap Focused Fund |
Touchstone Large Cap Fund |
Touchstone Large Company Growth Fund |
|
| Assets | ||||||
| Investments, at cost | $686,436,170 | $49,509,668 | $102,779,480 | $1,795,795,332 | $161,545,456 | $83,593,637 |
| Investments, at market value * | $913,301,543 | $48,756,494 | $104,202,619 | $3,359,438,043 | $279,886,351 | $154,841,281 |
| Cash | - | - | - | - | 1,375 | - |
| Cash deposits held at prime broker (A) | 1,650,408 | - | - | - | - | - |
| Foreign currency † | 1,035 | - | 593,513 | - | - | - |
| Dividends and interest receivable | 3,328,648 | 641,354 | 734,515 | 2,396,644 | 269,051 | - |
| Receivable for capital shares sold | 733,238 | 5,080 | 18,913 | 1,419,818 | 701 | 252,627 |
| Receivable for investments sold | 449,650 | - | - | 914,965 | - | - |
| Receivable for variation margin on futures contracts | 145,553 | - | - | - | - | - |
| Receivable for securities lending income | 2,413 | - | - | 4,051 | - | - |
| Tax reclaim receivable | 3,757 | - | 90,064 | 165,268 | - | - |
| Other assets | 4,961 | 321 | 17,175 | 17,662 | 29,193 | 3,569 |
| Total Assets | 919,621,206 | 49,403,249 | 105,656,799 | 3,364,356,451 | 280,186,671 | 155,097,477 |
| Liabilities | ||||||
| Due to custodian | 29,757 | - | 172 | 161,490 | - | - |
| Dividends payable | 193 | 9,686 | 776 | - | - | - |
| Payable for return of collateral for securities on loan | - | - | - | - | - | - |
| Deferred foreign capital gains tax | - | - | 8,228 | - | - | - |
| Payable for capital shares redeemed | 645,928 | 19,573 | 70,134 | 1,959,129 | 92,115 | 1,857,716 |
| Payable for investments purchased | 691,275 | - | - | - | - | - |
| Payable to Investment Adviser | 360,429 | 4 | 48,005 | 1,354,942 | 113,978 | 55,197 |
| Payable to other affiliates | 278,428 | 7,390 | 8,399 | 835,947 | 31,253 | 17,038 |
| Payable to Trustees | 8,118 | 8,118 | 8,119 | 8,118 | 8,118 | 8,118 |
| Payable for professional services | 34,288 | 25,891 | 43,610 | 46,108 | 24,122 | 23,091 |
| Payable for reports to shareholders | 24,282 | 8,203 | 7,194 | 46,341 | 12,564 | 8,378 |
| Payable for transfer agent services | 136,921 | 3,138 | 29,392 | 381,606 | 31,377 | 8,324 |
| Payable for variation margin on swap agreements | 638,039 | - | - | - | - | - |
| Other accrued expenses and liabilities | 22,227 | 2,303 | 10,424 | 91,274 | 5,090 | 3,839 |
| Total Liabilities | 2,869,885 | 84,306 | 234,453 | 4,884,955 | 318,617 | 1,981,701 |
| Net Assets | $916,751,321 | $49,318,943 | $105,422,346 | $3,359,471,496 | $279,868,054 | $153,115,776 |
| Net assets consist of: | ||||||
| Paid-in capital | 696,585,879 | 51,861,918 | 162,000,763 | 1,771,754,629 | 158,159,870 | 79,335,629 |
| Distributable earnings (deficit) | 220,165,442 | (2,542,975) | (56,578,417) | 1,587,716,867 | 121,708,184 | 73,780,147 |
| Net Assets | $916,751,321 | $49,318,943 | $105,422,346 | $3,359,471,496 | $279,868,054 | $153,115,776 |
| *Includes market value of securities on loan of: | $- | $- | $- | $- | $- | $- |
| †Cost of foreign currency: | $1,085 | $- | $593,690 | $- | $- | $- |
| (A) | Represents segregated cash for futures contracts and swap agreements. |
See accompanying Notes to Financial Statements.
20
Table of Contents
Statements of Assets and Liabilities(Continued)
|
Touchstone Small Company Fund |
Touchstone Value Fund |
| $814,546,036 | $418,185,165 |
| $1,071,461,507 | $549,529,012 |
| 3 | - |
| - | - |
| 1,371 | - |
| 541,220 | 784,025 |
| 1,587,260 | 252,144 |
| - | - |
| - | - |
| 2,345 | 1,493 |
| 1,315 | - |
| 5,454 | 5,784 |
| 1,073,600,475 | 550,572,458 |
| - | 55,642 |
| - | - |
| 15,468,550 | 5,347,500 |
| - | - |
| 1,062,606 | 173,943 |
| - | - |
| 537,683 | 240,077 |
| 237,476 | 94,488 |
| 8,119 | 8,118 |
| 29,631 | 26,384 |
| 31,460 | 17,844 |
| 147,516 | 63,944 |
| - | - |
| 11,896 | 190 |
| 17,534,937 | 6,028,130 |
| $1,056,065,538 | $544,544,328 |
| 780,016,793 | 394,385,568 |
| 276,048,745 | 150,158,760 |
| $1,056,065,538 | $544,544,328 |
| $15,339,549 | $5,257,800 |
| $1,467 | $- |
21
Table of Contents
Statements of Assets and Liabilities(Continued)
|
Touchstone Balanced Fund |
Touchstone Core Municipal Bond Fund |
Touchstone International Value Fund |
Touchstone Large Cap Focused Fund |
Touchstone Large Cap Fund |
Touchstone Large Company Growth Fund |
|
| Pricing of Class A Shares | ||||||
| Net assets applicable to Class A shares | $579,512,933 | $22,230,578 | $78,145,064 | $2,084,764,230 | $6,463,717 | $5,337,179 |
|
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) |
21,684,918 | 2,061,946 | 4,999,223 | 31,602,949 | 350,228 | 96,401 |
| Net asset value price per share* | $26.72 | $10.78 | $15.63 | $65.97 | $18.46 | $55.36 |
| Maximum sales charge - Class A shares | 5.00% | 3.25% | 5.00% | 5.00% | 5.00% | 5.00% |
|
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent) - Class A shares |
$28.13 | $11.14 | $16.45 | $69.44 | $19.43 | $58.27 |
| Pricing of Class C Shares | ||||||
| Net assets applicable to Class C shares | $72,104,324 | $690,202 | $1,797,313 | $51,919,262 | $1,353,010 | $216,363 |
|
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) |
2,693,557 | 64,083 | 126,265 | 880,537 | 75,022 | 4,254 |
| Net asset value and offering price per share** | $26.77 | $10.77 | $14.23 | $58.96 | $18.03 | $50.86 |
| Pricing of Class Y Shares | ||||||
| Net assets applicable to Class Y shares | $265,024,354 | $3,014,773 | $25,049,323 | $881,915,941 | $207,867,919 | $10,198,747 |
|
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) |
10,014,011 | 278,697 | 1,622,272 | 13,369,235 | 11,247,788 | 179,248 |
| Net asset value, offering price and redemption price per share | $26.47 | $10.82 | $15.44 | $65.97 | $18.48 | $56.90 |
| Pricing of Institutional Class Shares | ||||||
| Net assets applicable to Institutional Class shares | $- | $23,383,390 | $430,646 | $274,623,777 | $64,183,408 | $137,363,487 |
|
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) |
- | 2,165,173 | 27,937 | 4,154,468 | 3,469,771 | 2,387,150 |
| Net asset value, offering price and redemption price per share | $- | $10.80 | $15.41 | $66.10 | $18.50 | $57.54 |
| Pricing of Class R6 Shares | ||||||
| Net assets applicable to Class R6 shares | $109,710 | $- | $- | $66,248,286 | $- | $- |
|
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) |
4,148 | - | - | 1,001,207 | - | - |
| Net asset value, offering price and redemption price per share | $26.45 | $- | $- | $66.17 | $- | $- |
| * | There is no sales load on subscriptions of $1 million or more for all funds except for Core Municipal Bond Fund. There is no sales load on subscriptions of $500,000 or more for Core Municipal Bond Fund. Redemptions that were part of a $500,000 or $1 million or more subscription, as applicable, may be subject to a contingent deferred sales load if redeemed within a one-year period from the date of purchase. |
| ** | Redemption price per share varies by length of time shares are held due to the terms of the contingent deferred sales charge. |
See accompanying Notes to Financial Statements.
22
Table of Contents
Statements of Assets and Liabilities(Continued)
|
Touchstone Small Company Fund |
Touchstone Value Fund |
| $500,583,720 | $163,754,063 |
| 86,636,845 | 13,985,777 |
| $5.78 | $11.71 |
| 5.00% | 5.00% |
| $6.08 | $12.33 |
| $14,146,436 | $2,918,844 |
| 2,493,071 | 250,103 |
| $5.67 | $11.67 |
| $429,455,408 | $96,905,083 |
| 64,366,903 | 8,229,838 |
| $6.67 | $11.77 |
| $30,778,636 | $250,462,605 |
| 4,602,708 | 21,355,860 |
| $6.69 | $11.73 |
| $81,101,338 | $30,503,733 |
| 13,290,592 | 2,599,272 |
| $6.10 | $11.74 |
23
Table of Contents
Statements of Operations For the Year Ended June 30, 2024
|
Touchstone Balanced Fund |
Touchstone Core Municipal Bond Fund |
Touchstone International Value Fund |
Touchstone Large Cap Focused Fund |
Touchstone Large Cap Fund |
Touchstone Large Company Growth Fund |
|
| Investment Income | ||||||
| Dividends* | $8,390,360 | $65,903 | $3,104,737 | $46,635,449 | $4,650,570 | $571,796 |
| Interest | 12,822,348 | 1,744,844 | - | 85,086 | - | - |
| Income from securities loaned | 40,629 | - | 324 | 200,399 | 15,967 | - |
| Total Investment Income | 21,253,337 | 1,810,747 | 3,105,061 | 46,920,934 | 4,666,537 | 571,796 |
| Expenses | ||||||
| Investment advisory fees | 4,164,476 | 203,835 | 780,451 | 16,065,472 | 1,643,493 | 814,375 |
| Administration fees | 1,171,342 | 69,551 | 152,126 | 4,233,336 | 373,689 | 185,098 |
| Compliance fees and expenses | 4,210 | 4,210 | 4,210 | 4,210 | 4,210 | 4,210 |
| Custody fees | 50,589 | 3,761 | 19,627 | 26,968 | 9,423 | 9,070 |
| Professional fees | 56,871 | 34,821 | 67,636 | 110,433 | 30,653 | 26,614 |
| Transfer Agent fees, Class A | 453,341 | 10,134 | 106,708 | 1,192,852 | 3,708 | 3,559 |
| Transfer Agent fees, Class C | 53,956 | 601 | 4,007 | 44,461 | 780 | 226 |
| Transfer Agent fees, Class Y | 233,861 | 3,061 | 30,794 | 708,710 | 146,019 | 7,005 |
| Transfer Agent fees, Institutional Class | - | 1,274 | 203 | 71,437 | 3,983 | 38,346 |
| Transfer Agent fees, Class R6 | 18 | - | - | 349 | - | - |
| Registration fees, Class A | 24,896 | 8,258 | 21,625 | 40,143 | 12,683 | 11,303 |
| Registration fees, Class C | 16,499 | 9,996 | 10,048 | 15,429 | 7,297 | 6,448 |
| Registration fees, Class Y | 28,407 | 5,596 | 15,808 | 75,221 | 21,448 | 10,004 |
| Registration fees, Institutional Class | - | 3,769 | 7,019 | 16,149 | 11,128 | 20,284 |
| Registration fees, Class R6 | 3,440 | - | - | 11,899 | - | - |
| Reports to Shareholders, Class A | 38,138 | 3,674 | 14,798 | 61,604 | 3,294 | 3,218 |
| Reports to Shareholders, Class C | 6,444 | 2,944 | 2,943 | 5,840 | 2,985 | 2,951 |
| Reports to Shareholders, Class Y | 16,216 | 3,064 | 6,724 | 48,914 | 15,906 | 3,197 |
| Reports to Shareholders, Institutional Class | - | 2,970 | 3,918 | 7,459 | 2,728 | 3,599 |
| Reports to Shareholders, Class R6 | 2,939 | - | - | 4,385 | - | - |
| Distribution expenses, Class A | 1,379,922 | 55,574 | 198,915 | 4,902,749 | 14,524 | 10,341 |
| Distribution and shareholder servicing expenses, Class C | 727,029 | 9,131 | 21,176 | 505,331 | 16,747 | 2,098 |
| Trustee fees | 30,560 | 30,560 | 30,560 | 30,560 | 30,560 | 30,560 |
| Other expenses | 213,161 | 31,458 | 104,210 | 686,439 | 103,539 | 71,762 |
| Total Expenses | 8,676,315 | 498,242 | 1,603,506 | 28,870,350 | 2,458,797 | 1,264,268 |
| Fees waived and/or reimbursed by the Adviser and/or Affiliates(A) | (6,420) | (170,772) | (205,874) | (540,598) | (331,344) | (259,065) |
| Net Expenses | 8,669,895 | 327,470 | 1,397,632 | 28,329,752 | 2,127,453 | 1,005,203 |
| Net Investment Income (Loss) | 12,583,442 | 1,483,277 | 1,707,429 | 18,591,182 | 2,539,084 | (433,407) |
| Realized and Unrealized Gains (Losses) on Investments | ||||||
| Net realized gains (losses) on investments(B) | 1,371,990 | (530,177) | 15,087,908 | 109,359,169 | 9,158,148 | 18,793,746 |
| Net realized losses on futures contracts | (848,841) | - | - | - | - | - |
| Net realized losses on swap agreements | (1,051,259) | - | - | - | - | - |
| Net realized gains (losses) on foreign currency transactions | - | - | (58,534) | - | - | - |
| Net change in unrealized appreciation (depreciation) on investments† | 88,004,391 | 781,330 | (12,734,573) | 393,563,765 | 12,727,366 | 29,377,410 |
| Net change in unrealized appreciation (depreciation) on futures contracts | 839,330 | - | - | - | - | - |
| Net change in unrealized appreciation (depreciation) on swap agreements | 213,237 | - | - | - | - | - |
| Net change in unrealized appreciation (depreciation) on foreign currency transactions | (35) | - | 5,898 | - | - | - |
| Net Realized and Unrealized Gains (Losses) on Investments | 88,528,813 | 251,153 | 2,300,699 | 502,922,934 | 21,885,514 | 48,171,156 |
| Change in Net Assets Resulting from Operations | $101,112,255 | $1,734,430 | $4,008,128 | $521,514,116 | $24,424,598 | $47,737,749 |
| *Net of foreign tax withholding of: | $8,359 | $- | $351,765 | $48,050 | $74,583 | $6,683 |
| †Includes increase in deferred foreign capital gains tax of: | $- | $- | $8,228 | $- | $- | $- |
| (A) | See Note 4 in Notes to Financial Statements. |
| (B) | Net realized gains on investments includes the realized gains of $84,045,416, $6,135,538, $12,123,341 and $10,274,322 for the Large Cap Focused Fund, the Large Cap Fund, the Large Company Growth Fund and the Small Company Fund, respectively, for redemption-in-kind activity, which will not be recognized by the Fund for tax purposes. |
See accompanying Notes to Financial Statements.
24
Table of Contents
Statements of Operations(Continued)
|
Touchstone Small Company Fund |
Touchstone Value Fund |
| $11,322,122 | $12,155,885 |
| - | - |
| 3,312 | 38,687 |
| 11,325,434 | 12,194,572 |
| 6,427,572 | 3,019,882 |
| 1,316,422 | 699,301 |
| 4,210 | 4,210 |
| 18,275 | 11,616 |
| 50,575 | 37,783 |
| 380,451 | 151,225 |
| 15,408 | 2,786 |
| 364,546 | 80,091 |
| 10,368 | 84,957 |
| 234 | 43 |
| 22,902 | 14,981 |
| 12,746 | 7,647 |
| 26,872 | 14,777 |
| 12,048 | 17,567 |
| 13,610 | 5,022 |
| 28,801 | 16,025 |
| 4,000 | 2,950 |
| 38,891 | 7,947 |
| 4,206 | 10,027 |
| 7,345 | 3,865 |
| 1,217,039 | 394,818 |
| 147,922 | 33,616 |
| 30,560 | 30,560 |
| 212,715 | 101,082 |
| 10,367,718 | 4,752,778 |
| (306,868) | (475,780) |
| 10,060,850 | 4,276,998 |
| 1,264,584 | 7,917,574 |
| 41,310,327 | 22,759,019 |
| - | - |
| - | - |
| - | 1,612 |
| 72,136,023 | 49,629,747 |
| - | - |
| - | - |
| (44) | - |
| 113,446,306 | 72,390,378 |
| $114,710,890 | $80,307,952 |
| $5,589 | $169,046 |
| $- | $- |
25
Table of Contents
Statements of Changes in Net Assets
|
Touchstone Balanced Fund |
Touchstone Core Municipal Bond Fund |
Touchstone International Value Fund |
||||
|
For the Year Ended June 30, 2024 |
For the Year Ended June 30, 2023 |
For the Year Ended June 30, 2024 |
For the Year Ended June 30, 2023 |
For the Year Ended June 30, 2024 |
For the Year Ended June 30, 2023 |
|
| From Operations | ||||||
| Net investment income (loss) | $12,583,442 | $9,245,459 | $1,483,277 | $1,325,291 | $1,707,429 | $1,907,688 |
| Net realized gains (losses) on investments, futures contracts, swap agreements and foreign currency transactions | (528,110) | 11,195,890 | (530,177) | (1,223,464) | 15,029,374 | (5,214,908) |
| Net change in unrealized appreciation (depreciation) on investments, futures contracts, swap agreements and foreign currency transactions | 89,056,923 | 78,098,021 | 781,330 | 1,149,277 | (12,728,675) | 19,725,598 |
| Change in Net Assets from Operations | 101,112,255 | 98,539,370 | 1,734,430 | 1,251,104 | 4,008,128 | 16,418,378 |
| Distributions to Shareholders: | ||||||
| Distributed earnings, Class A | (7,655,925) | (6,454,185) | (612,050) | (542,624) | (1,107,769) | (1,163,208) |
| Distributed earnings, Class C | (442,911) | (335,681) | (18,263) | (16,568) | (20,132) | (28,135) |
| Distributed earnings, Class Y | (3,910,645) | (2,487,696) | (84,123) | (70,470) | (481,196) | (337,719) |
| Distributed earnings, Institutional Class | - | - | (768,851) | (695,629) | (72,826) | (60,528) |
| Distributed earnings, Class R6 | (1,811) | (1,917) | - | - | - | - |
| Total Distributions | (12,011,292) | (9,279,479) | (1,483,287) | (1,325,291) | (1,681,923) | (1,589,590) |
| Change in Net Assets from Share Transactions(A) | 14,490,546 | (27,209,173) | (4,017,832) | (5,317,958) | (11,081,155) | (3,423,275) |
| Total Increase (Decrease) in Net Assets | 103,591,509 | 62,050,718 | (3,766,689) | (5,392,145) | (8,754,950) | 11,405,513 |
| Net Assets | ||||||
| Beginning of period | 813,159,812 | 751,109,094 | 53,085,632 | 58,477,777 | 114,177,296 | 102,771,783 |
| End of period | $916,751,321 | $813,159,812 | $49,318,943 | $53,085,632 | $105,422,346 | $114,177,296 |
| (A) | For details on share transactions by class, see Statements of Changes in Net Assets - Capital Stock Activity. |
See accompanying Notes to Financial Statements.
26
Table of Contents
Statements of Changes in Net Assets(Continued)
|
Touchstone Large Cap Focused Fund |
Touchstone Large Cap Fund |
Touchstone Large Company Growth Fund |
Touchstone Small Company Fund |
||||
|
For the Year Ended June 30, 2024 |
For the Year Ended June 30, 2023 |
For the Year Ended June 30, 2024 |
For the Year Ended June 30, 2023 |
For the Year Ended June 30, 2024 |
For the Year Ended June 30, 2023 |
For the Year Ended June 30, 2024 |
For the Year Ended June 30, 2023 |
| $18,591,182 | $13,019,424 | $2,539,084 | $2,737,817 | $(433,407) | $(197,653) | $1,264,584 | $964,570 |
| 109,359,169 | 65,283,919 | 9,158,148 | 16,518,022 | 18,793,746 | 18,355,445 | 41,310,327 | 12,898,080 |
| 393,563,765 | 441,075,223 | 12,727,366 | 22,459,658 | 29,377,410 | 6,189,120 | 72,135,979 | 108,411,403 |
| 521,514,116 | 519,378,566 | 24,424,598 | 41,715,497 | 47,737,749 | 24,346,912 | 114,710,890 | 122,274,053 |
| (12,772,081) | (26,722,797) | (95,374) | (186,418) | (160,700) | (115,696) | (771,772) | (11,830,362) |
| (49,032) | (723,298) | (6,280) | (83,859) | (9,647) | (7,968) | (23,753) | (432,280) |
| (7,364,752) | (8,798,604) | (3,712,247) | (7,705,511) | (325,622) | (256,507) | (494,033) | (5,543,536) |
| (2,370,622) | (3,775,076) | (1,172,880) | (2,900,891) | (4,710,574) | (4,584,366) | (37,674) | (507,462) |
| (305,881) | (32,814) | - | - | - | - | (103,235) | (1,463,928) |
| (22,862,368) | (40,052,589) | (4,986,781) | (10,876,679) | (5,206,543) | (4,964,537) | (1,430,467) | (19,777,568) |
| (74,902,210) | (41,778,980) | (13,419,255) | (35,086,898) | (35,938,927) | (35,711,782) | 39,368,266 | 35,514,933 |
| 423,749,538 | 437,546,997 | 6,018,562 | (4,248,080) | 6,592,279 | (16,329,407) | 152,648,689 | 138,011,418 |
| 2,935,721,958 | 2,498,174,961 | 273,849,492 | 278,097,572 | 146,523,497 | 162,852,904 | 903,416,849 | 765,405,431 |
| $3,359,471,496 | $2,935,721,958 | $279,868,054 | $273,849,492 | $153,115,776 | $146,523,497 | $1,056,065,538 | $903,416,849 |
27
Table of Contents
Statements of Changes in Net Assets(Continued)
|
Touchstone Value Fund |
||
|
For the Year Ended June 30, 2024 |
For the Year Ended June 30, 2023 |
|
| From Operations | ||
| Net investment income | $7,917,574 | $8,104,704 |
| Net realized gains on investments and foreign currency transactions | 22,760,631 | 13,745,820 |
| Net change in unrealized appreciation on investments | 49,629,747 | 32,140,986 |
| Change in Net Assets from Operations | 80,307,952 | 53,991,510 |
| Distributions to Shareholders: | ||
| Distributed earnings, Class A | (3,370,015) | (11,303,139) |
| Distributed earnings, Class C | (46,658) | (340,918) |
| Distributed earnings, Class Y | (2,126,316) | (7,487,618) |
| Distributed earnings, Institutional Class | (5,875,414) | (16,911,807) |
| Distributed earnings, Class R6 | (710,922) | (1,655,788) |
| Total Distributions | (12,129,325) | (37,699,270) |
| Change in Net Assets from Share Transactions(A) | (20,052,324) | (21,834,052) |
| Total Increase (Decrease) in Net Assets | 48,126,303 | (5,541,812) |
| Net Assets | ||
| Beginning of period | 496,418,025 | 501,959,837 |
| End of period | $544,544,328 | $496,418,025 |
| (A) | For details on share transactions by class, see Statements of Changes in Net Assets - Capital Stock Activity. |
See accompanying Notes to Financial Statements.
28
Table of Contents
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Table of Contents
Statements of Changes in Net Assets - Capital Stock Activity
|
Touchstone Balanced Fund |
Touchstone Core Municipal Bond Fund |
|||||||
|
For the Year Ended June 30, 2024 |
For the Year Ended June 30, 2023 |
For the Year Ended June 30, 2024 |
For the Year Ended June 30, 2023 |
|||||
| Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |
| Class A | ||||||||
| Proceeds from Shares issued | 1,630,348 | $40,651,293 | 1,305,841 | $29,334,546 | 44,735 | $478,238 | 70,723 | $752,997 |
| Reinvestment of distributions | 285,889 | 7,248,875 | 275,113 | 6,106,121 | 47,173 | 503,359 | 41,801 | 445,970 |
| Cost of Shares redeemed | (2,675,799) | (66,982,143) | (3,438,251) | (76,723,283) | (171,817) | (1,824,135) | (311,187) | (3,298,640) |
| Change from Class A Share Transactions | (759,562) | (19,081,975) | (1,857,297) | (41,282,616) | (79,909) | (842,538) | (198,663) | (2,099,673) |
| Class C | ||||||||
| Proceeds from Shares issued | 486,712 | 12,019,784 | 362,864 | 8,171,723 | 21,220 | 220,449 | 82,084 | 880,091 |
| Reinvestment of distributions | 17,249 | 437,404 | 14,847 | 331,979 | 1,707 | 18,213 | 1,545 | 16,496 |
| Cost of Shares redeemed | (865,883) | (21,630,246) | (758,402) | (16,854,147) | (54,656) | (583,986) | (75,695) | (802,420) |
| Change from Class C Share Transactions | (361,922) | (9,173,058) | (380,691) | (8,350,445) | (31,729) | (345,324) | 7,934 | 94,167 |
| Class Y | ||||||||
| Proceeds from Shares issued | 3,778,756 | 92,702,752 | 4,328,959 | 97,132,692 | 153,692 | 1,651,123 | 236,499 | 2,487,537 |
| Reinvestment of distributions | 155,059 | 3,903,732 | 112,185 | 2,474,987 | 7,207 | 77,156 | 5,448 | 58,169 |
| Cost of Shares redeemed | (2,167,949) | (53,832,716) | (3,485,175) | (77,185,708) | (127,493) | (1,372,552) | (251,774) | (2,631,261) |
| Change from Class Y Share Transactions | 1,765,866 | 42,773,768 | 955,969 | 22,421,971 | 33,406 | 355,727 | (9,827) | (85,555) |
| Institutional Class | ||||||||
| Proceeds from Shares issued | - | - | - | - | 3,090 | 32,690 | 11,520 | 123,810 |
| Reinvestment of distributions | - | - | - | - | 71,966 | 768,842 | 65,116 | 695,613 |
| Cost of Shares redeemed | - | - | - | - | (369,948) | (3,987,229) | (382,513) | (4,046,320) |
| Change from Institutional Class Share Transactions | - | - | - | - | (294,892) | (3,185,697) | (305,877) | (3,226,897) |
| Class R6 | ||||||||
| Proceeds from Shares issued | - | - | - | - | - | - | - | - |
| Reinvestment of distributions | 72 | 1,811 | 87 | 1,917 | - | - | - | - |
| Cost of Shares redeemed | (1,259) | (30,000) | - | - | - | - | - | - |
| Change from Class R6 Share Transactions | (1,187) | (28,189) | 87 | 1,917 | - | - | - | - |
| Change from Share Transactions | 643,195 | $14,490,546 | (1,281,932) | $(27,209,173) | (373,124) | $(4,017,832) | (506,433) | $(5,317,958) |
See accompanying Notes to Financial Statements.
30
Table of Contents
Statements of Changes in Net Assets - Capital Stock Activity(Continued)
|
Touchstone International Value Fund |
Touchstone Large Cap Focused Fund |
||||||
|
For the Year Ended June 30, 2024 |
For the Year Ended June 30, 2023 |
For the Year Ended June 30, 2024 |
For the Year Ended June 30, 2023 |
||||
| Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars |
| 222,688 | $3,421,364 | 207,040 | $2,956,760 | 959,151 | $56,976,265 | 871,623 | $44,199,684 |
| 66,321 | 1,049,853 | 81,517 | 1,103,741 | 198,433 | 11,761,830 | 512,576 | 24,803,337 |
| (688,264) | (10,591,785) | (656,145) | (9,128,332) | (3,759,887) | (224,823,408) | (3,979,920) | (200,436,477) |
| (399,255) | (6,120,568) | (367,588) | (5,067,831) | (2,602,303) | (156,085,313) | (2,595,721) | (131,433,456) |
| 7,536 | 104,341 | 22,995 | 306,225 | 184,201 | 9,575,579 | 142,815 | 6,440,237 |
| 1,376 | 19,894 | 2,171 | 26,900 | 928 | 48,816 | 16,420 | 716,415 |
| (49,165) | (689,437) | (55,527) | (706,451) | (303,353) | (16,022,142) | (312,804) | (14,085,002) |
| (40,253) | (565,202) | (30,361) | (373,326) | (118,224) | (6,397,747) | (153,569) | (6,928,350) |
| 318,224 | 4,786,758 | 420,549 | 6,158,939 | 5,225,833 | 306,946,790 | 4,389,105 | 223,429,518 |
| 30,392 | 474,424 | 25,019 | 333,999 | 118,534 | 7,020,176 | 171,659 | 8,278,156 |
| (399,791) | (6,133,226) | (329,954) | (4,520,062) | (3,872,951) | (234,200,464) | (3,137,778) | (158,474,364) |
| (51,175) | (872,044) | 115,614 | 1,972,876 | 1,471,416 | 79,766,502 | 1,422,986 | 73,233,310 |
| 68,212 | 1,005,003 | 1,744 | 25,692 | 3,794,448 | 230,455,953 | 3,889,420 | 194,308,524 |
| 4,678 | 72,826 | 4,544 | 60,529 | 27,449 | 1,628,984 | 55,100 | 2,661,762 |
| (298,441) | (4,601,170) | (2,907) | (41,215) | (4,366,399) | (263,599,619) | (3,851,324) | (192,969,218) |
| (225,551) | (3,523,341) | 3,381 | 45,006 | (544,502) | (31,514,682) | 93,196 | 4,001,068 |
| - | - | - | - | 693,744 | 43,050,865 | 359,726 | 19,738,096 |
| - | - | - | - | 5,120 | 304,038 | 622 | 30,031 |
| - | - | - | - | (66,730) | (4,025,873) | (8,283) | (419,679) |
| - | - | - | - | 632,134 | 39,329,030 | 352,065 | 19,348,448 |
| (716,234) | $(11,081,155) | (278,954) | $(3,423,275) | (1,161,479) | $(74,902,210) | (881,043) | $(41,778,980) |
31
Table of Contents
Statements of Changes in Net Assets - Capital Stock Activity(Continued)
|
Touchstone Large Cap Fund |
Touchstone Large Company Growth Fund |
|||||||
|
For the Year Ended June 30, 2024 |
For the Year Ended June 30, 2023 |
For the Year Ended June 30, 2024 |
For the Year Ended June 30, 2023 |
|||||
| Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |
| Class A | ||||||||
| Proceeds from Shares issued | 85,298 | $1,494,908 | 55,034 | $878,440 | 23,075 | $1,082,748 | 13,612 | $522,431 |
| Reinvestment of distributions | 4,898 | 85,774 | 10,508 | 165,562 | 3,688 | 160,700 | 3,229 | 115,695 |
| Cost of Shares redeemed | (45,676) | (799,721) | (52,916) | (846,101) | (21,183) | (922,930) | (16,998) | (637,756) |
| Change from Class A Share Transactions | 44,520 | 780,961 | 12,626 | 197,901 | 5,580 | 320,518 | (157) | 370 |
| Class C | ||||||||
| Proceeds from Shares issued | 2,232 | 37,821 | 20,444 | 313,352 | 2,522 | 108,287 | 881 | 33,004 |
| Reinvestment of distributions | 366 | 6,222 | 5,393 | 82,939 | 187 | 7,502 | 238 | 7,965 |
| Cost of Shares redeemed | (49,252) | (839,102) | (102,895) | (1,624,789) | (4,334) | (176,071) | (1,312) | (44,741) |
| Change from Class C Share Transactions | (46,654) | (795,059) | (77,058) | (1,228,498) | (1,625) | (60,282) | (193) | (3,772) |
| Class Y | ||||||||
| Proceeds from Shares issued | 126,493 | 2,227,695 | 194,223 | 3,125,993 | 23,515 | 1,108,228 | 12,260 | 469,925 |
| Reinvestment of distributions | 205,919 | 3,607,496 | 475,857 | 7,505,606 | 7,280 | 325,622 | 7,001 | 256,507 |
| Cost of Shares redeemed | (1,061,397) | (18,735,885) | (1,856,213) | (30,327,891) | (25,226) | (1,207,506) | (222,625) | (8,399,800) |
| Change from Class Y Share Transactions | (728,985) | (12,900,694) | (1,186,133) | (19,696,292) | 5,569 | 226,344 | (203,364) | (7,673,368) |
| Institutional Class | ||||||||
| Proceeds from Shares issued | 868,656 | 15,363,823 | 2,513,064 | 40,723,228 | 865,302 | 39,789,725 | 1,267,769 | 48,971,378 |
| Reinvestment of distributions | 64,508 | 1,130,314 | 153,334 | 2,420,443 | 93,729 | 4,237,475 | 115,186 | 4,259,572 |
| Cost of Shares redeemed | (964,649) | (16,998,600) | (3,548,886) | (57,503,680) | (1,774,771) | (80,452,707) | (2,087,146) | (81,265,962) |
| Change from Institutional Class Share Transactions | (31,485) | (504,463) | (882,488) | (14,360,009) | (815,740) | (36,425,507) | (704,191) | (28,035,012) |
| Class R6 | ||||||||
| Proceeds from Shares issued | - | - | - | - | - | - | - | - |
| Reinvestment of distributions | - | - | - | - | - | - | - | - |
| Cost of Shares redeemed | - | - | - | - | - | - | - | - |
| Change from Class R6 Share Transactions | - | - | - | - | - | - | - | - |
| Change from Share Transactions | (762,604) | $(13,419,255) | (2,133,053) | $(35,086,898) | (806,216) | $(35,938,927) | (907,905) | $(35,711,782) |
| ^ | The June 30, 2023 Class C share amounts relating to Proceeds from Shares issued, Reinvestment of distributions, Cost of Shares redeemed, and Change from Class C Share Transactions as well as Change from Share transactions were updated to reflect the effect of a 1 for 0.379048 reverse stock split for Class C shares on October 14, 2022. |
See accompanying Notes to Financial Statements.
32
Table of Contents
Statements of Changes in Net Assets - Capital Stock Activity(Continued)
|
Touchstone Small Company Fund^ |
Touchstone Value Fund |
||||||
|
For the Year Ended June 30, 2024 |
For the Year Ended June 30, 2023 |
For the Year Ended June 30, 2024 |
For the Year Ended June 30, 2023 |
||||
| Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars |
| 4,138,747 | $22,612,271 | 3,891,138 | $19,216,133 | 254,866 | $2,825,643 | 676,587 | $6,874,794 |
| 137,843 | 747,108 | 2,345,714 | 11,470,539 | 293,023 | 3,211,085 | 1,079,157 | 10,781,601 |
| (11,630,577) | (62,953,665) | (11,255,496) | (55,485,426) | (2,043,559) | (22,062,477) | (2,101,197) | (21,374,057) |
| (7,353,987) | (39,594,286) | (5,018,644) | (24,798,754) | (1,495,670) | (16,025,749) | (345,453) | (3,717,662) |
| 232,553 | 1,256,743 | 395,461 | 1,551,009 | 17,572 | 189,507 | 179,695 | 1,813,103 |
| 4,394 | 23,507 | 87,922 | 427,301 | 4,125 | 44,583 | 33,821 | 336,898 |
| (880,593) | (4,656,784) | (7,438,078) | (5,317,700) | (135,873) | (1,480,695) | (428,227) | (4,241,922) |
| (643,646) | (3,376,534) | (6,954,695) | (3,339,390) | (114,176) | (1,246,605) | (214,711) | (2,091,921) |
| 24,356,258 | 152,445,794 | 19,225,536 | 109,971,262 | 1,586,542 | 17,476,697 | 3,070,028 | 32,214,842 |
| 78,799 | 492,496 | 982,602 | 5,522,224 | 188,183 | 2,079,320 | 732,473 | 7,355,459 |
| (12,804,020) | (79,969,613) | (10,085,513) | (56,706,050) | (1,841,609) | (20,026,557) | (4,196,004) | (42,666,245) |
| 11,631,037 | 72,968,677 | 10,122,625 | 58,787,436 | (66,884) | (470,540) | (393,503) | (3,095,944) |
| 1,078,347 | 6,566,951 | 725,853 | 4,089,821 | 2,607,957 | 28,399,593 | 3,781,754 | 38,345,288 |
| 5,794 | 36,273 | 86,528 | 487,153 | 489,873 | 5,394,766 | 1,486,511 | 14,859,297 |
| (631,355) | (3,924,525) | (748,587) | (4,244,022) | (3,445,331) | (37,305,656) | (8,964,398) | (92,624,074) |
| 452,786 | 2,678,699 | 63,794 | 332,952 | (347,501) | (3,511,297) | (3,696,133) | (39,419,489) |
| 10,905,457 | 62,635,195 | 11,114,924 | 56,693,014 | 589,491 | 6,484,783 | 2,651,782 | 28,445,654 |
| 18,046 | 103,221 | 284,288 | 1,461,242 | 64,416 | 710,921 | 165,429 | 1,655,788 |
| (9,805,280) | (56,046,706) | (10,446,031) | (53,621,567) | (552,251) | (5,993,837) | (359,399) | (3,610,478) |
| 1,118,223 | 6,691,710 | 953,181 | 4,532,689 | 101,656 | 1,201,867 | 2,457,812 | 26,490,964 |
| 5,204,413 | $39,368,266 | (833,739) | $35,514,933 | (1,922,575) | $(20,052,324) | (2,191,988) | $(21,834,052) |
33
Table of Contents
Financial Highlights
| 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(2) |
Ratio of gross expenses to average net assets(2) |
Ratio of net investment income (loss) to average net assets |
Portfolio turnover rate |
||||||||||||||
| Class A | ||||||||||||||||||||||||||||
| 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(3) | 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(3) | (3.42) | (3.28) | (0.15) | (0.61) | (0.76) | 21.48 | (13.32) | 521,933 | 0.99 | 0.99 | 0.54 | 92(4)(5) | ||||||||||||||
| 06/30/23 | 21.48 | 0.28 | 2.66 | 2.94 | (0.28) | - | (0.28) | 24.14 | 13.81 | 541,895 | 1.02 | 1.02 | 1.24 | 57(4) | ||||||||||||||
| 06/30/24 | 24.14 | 0.37 | 2.56 | 2.93 | (0.35) | - | (0.35) | 26.72 | 12.22 | 579,513 | 1.01 | 1.01 | 1.47 | 70 | ||||||||||||||
| Class C | ||||||||||||||||||||||||||||
| 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)(3) | 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)(3) | (3.42) | (3.47) | - | (0.61) | (0.61) | 21.51 | (13.96) | 73,906 | 1.75 | 1.75 | (0.22) | 92(4)(5) | ||||||||||||||
| 06/30/23 | 21.51 | 0.10 | 2.68 | 2.78 | (0.11) | - | (0.11) | 24.18 | 12.95 | 73,893 | 1.78 | 1.78 | 0.48 | 57(4) | ||||||||||||||
| 06/30/24 | 24.18 | 0.16 | 2.58 | 2.74 | (0.15) | - | (0.15) | 26.77 | 11.38 | 72,104 | 1.77 | 1.77 | 0.71 | 70 | ||||||||||||||
| Class Y | ||||||||||||||||||||||||||||
| 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(3) | 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(3) | (3.38) | (3.20) | (0.19) | (0.61) | (0.80) | 21.28 | (13.13) | 155,159 | 0.79(6) | 0.75 | 0.74 | 92(4)(5) | ||||||||||||||
| 06/30/23 | 21.28 | 0.32 | 2.64 | 2.96 | (0.33) | - | (0.33) | 23.91 | 14.06 | 197,245 | 0.79 | 0.79 | 1.47 | 57(4) | ||||||||||||||
| 06/30/24 | 23.91 | 0.42 | 2.55 | 2.97 | (0.41) | - | (0.41) | 26.47 | 12.51 | 265,024 | 0.78 | 0.78 | 1.69 | 70 | ||||||||||||||
| Class R6 | ||||||||||||||||||||||||||||
| 06/30/22(7) | $26.15 | $0.13(3) | $(4.22) | $(4.09) | $(0.18) | $ (0.61) | $(0.79) | $21.27 | (16.08)%(8) | $112 | 0.64%(9) | 33.98%(9) | 0.89%(9) | 92%(4)(5) | ||||||||||||||
| 06/30/23 | 21.27 | 0.35 | 2.64 | 2.99 | (0.36) | - | (0.36) | 23.90 | 14.23 | 128 | 0.65 | 6.11 | 1.61 | 57(4) | ||||||||||||||
| 06/30/24 | 23.90 | 0.44 | 2.55 | 2.99 | (0.44) | - | (0.44) | 26.45 | 12.63 | 110 | 0.64 | 6.94 | 1.83 | 70 |
| (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 ratio of net and gross expenses to average net assets excluding liquidity provider expenses would have been lower by 0.01% for the year ended June 30, 2023. |
| (3) | The net investment income per share was based on average shares outstanding for the period. |
| (4) | Portfolio turnover excludes securities delivered from processing redemptions-in-kind. |
| (5) | 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. |
| (6) | Net expenses include amounts recouped by the Adviser. |
| (7) | Represents the period from commencement of operations (October 28, 2021) through June 30, 2022 for Class R6. |
| (8) | Not annualized. |
| (9) | Annualized. |
See accompanying Notes to Financial Statements.
34
Table of Contents
Financial Highlights(Continued)
| 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 | ||||||||||||||||||||||||||||
| 06/30/20 | $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 | ||||||||||||||
| 06/30/23 | 10.72 | 0.24 | 0.01 | 0.25 | (0.24) | - | (0.24) | 10.73 | 2.37 | 22,988 | 0.80 | 1.05 | 2.27 | 54 | ||||||||||||||
| 06/30/24 | 10.73 | 0.29 | 0.05 | 0.34 | (0.29) | - | (0.29) | 10.78 | 3.27 | 22,231 | 0.80 | 1.09 | 2.75 | 27 | ||||||||||||||
| Class C | ||||||||||||||||||||||||||||
| 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 | ||||||||||||||
| 06/30/23 | 10.73 | 0.14 | 0.02 | 0.16 | (0.16) | - | (0.16) | 10.73 | 1.54 | 1,028 | 1.55 | 2.45 | 1.52 | 54 | ||||||||||||||
| 06/30/24 | 10.73 | 0.30 | (0.05) | 0.25 | (0.21) | - | (0.21) | 10.77 | 2.41 | 690 | 1.55 | 3.23 | 2.00 | 27 | ||||||||||||||
| Class Y | ||||||||||||||||||||||||||||
| 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 | ||||||||||||||
| 06/30/23 | 10.74 | 0.27 | 0.01 | 0.28 | (0.27) | - | (0.27) | 10.75 | 2.66 | 2,637 | 0.55 | 1.18 | 2.52 | 54 | ||||||||||||||
| 06/30/24 | 10.75 | 0.32 | 0.07 | 0.39 | (0.32) | - | (0.32) | 10.82 | 3.72 | 3,015 | 0.55 | 1.16 | 3.00 | 27 | ||||||||||||||
| Institutional Class | ||||||||||||||||||||||||||||
| 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 | ||||||||||||||
| 06/30/23 | 10.74 | 0.28 | 0.01 | 0.29 | (0.28) | - | (0.28) | 10.75 | 2.73 | 26,434 | 0.48 | 0.73 | 2.59 | 54 | ||||||||||||||
| 06/30/24 | 10.75 | 0.33 | 0.05 | 0.38 | (0.33) | - | (0.33) | 10.80 | 3.60 | 23,383 | 0.48 | 0.77 | 3.07 | 27 |
| (1) | Total returns shown exclude the effect of applicable sales loads and fees. If these charges were included, the returns would be lower. |
See accompanying Notes to Financial Statements.
35
Table of Contents
Financial Highlights(Continued)
| Touchstone International Value Fund | ||||||||||||||||||||||||||||
| Period ended |
Net asset value at beginning of period |
Net investment income (loss)(1) |
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(2) |
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 | ||||||||||||||||||||||||||||
| 06/30/20 | $15.65 | $0.08 | $(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 | 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 | (3.44) | (3.26) | (0.08) | (2.24) | (2.32) | 13.30 | (18.87) | 76,671 | 1.36 | 1.40 | 1.08 | 45(3) | ||||||||||||||
| 06/30/23 | 13.30 | 0.24 | 1.99 | 2.23 | (0.21) | - | (0.21) | 15.32 | 16.99 | 82,697 | 1.36 | 1.44 | 1.75 | 32 | ||||||||||||||
| 06/30/24 | 15.32 | 0.22(4) | 0.30 | 0.52 | (0.21) | - | (0.21) | 15.63 | 3.41 | 78,145 | 1.34 | 1.47 | 1.44 | 112 | ||||||||||||||
| Class C | ||||||||||||||||||||||||||||
| 06/30/20 | $14.64 | $(0.09) | $(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) | 4.60 | 4.56 | (-)(5) | - | (-)(5) | 17.55 | 35.14 | 2,115 | 2.15 | 2.90 | (0.24) | 31 | ||||||||||||||
| 06/30/22 | 17.55 | 0.07 | (3.18) | (3.11) | (0.02) | (2.24) | (2.26) | 12.18 | (19.45) | 2,399 | 1.99 | 2.71 | 0.45 | 45(3) | ||||||||||||||
| 06/30/23 | 12.18 | 0.14 | 1.82 | 1.96 | (0.17) | - | (0.17) | 13.97 | 16.27 | 2,327 | 1.99 | 2.80 | 1.12 | 32 | ||||||||||||||
| 06/30/24 | 13.97 | 0.11(4) | 0.28 | 0.39 | (0.13) | - | (0.13) | 14.23 | 2.85 | 1,797 | 1.97 | 2.84 | 0.81 | 112 | ||||||||||||||
| Class Y | ||||||||||||||||||||||||||||
| 06/30/20 | $15.44 | $0.13 | $(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 | 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 | (3.40) | (3.17) | (0.13) | (2.24) | (2.37) | 13.11 | (18.61) | 20,430 | 0.99 | 1.19 | 1.45 | 45(3) | ||||||||||||||
| 06/30/23 | 13.11 | 0.29 | 1.97 | 2.26 | (0.24) | - | (0.24) | 15.13 | 17.46 | 25,324 | 0.99 | 1.23 | 2.12 | 32 | ||||||||||||||
| 06/30/24 | 15.13 | 0.27(4) | 0.31 | 0.58 | (0.27) | - | (0.27) | 15.44 | 3.83 | 25,049 | 0.97 | 1.24 | 1.81 | 112 | ||||||||||||||
| Institutional Class | ||||||||||||||||||||||||||||
| 06/30/20 | $15.42 | $0.14 | $(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 | 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 | (3.40) | (3.15) | (0.15) | (2.24) | (2.39) | 13.09 | (18.52) | 3,273 | 0.89 | 1.34 | 1.55 | 45(3) | ||||||||||||||
| 06/30/23 | 13.09 | 0.31 | 1.95 | 2.26 | (0.24) | - | (0.24) | 15.11 | 17.54 | 3,830 | 0.89 | 1.23 | 2.22 | 32 | ||||||||||||||
| 06/30/24 | 15.11 | 0.29(4) | 0.30 | 0.59 | (0.29) | - | (0.29) | 15.41 | 3.93 | 431 | 0.88 | 1.35 | 1.91 | 112 |
| (1) | The net investment income per share was based on average shares outstanding for the period. |
| (2) | Total returns shown exclude the effect of applicable sales loads and fees. If these charges were included, the returns would be lower. |
| (3) | 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. |
| (4) | The net investment income (loss) per share was based on average shares outstanding for the period. |
| (5) | Less than $0.005 per share. |
See accompanying Notes to Financial Statements.
36
Table of Contents
Financial Highlights(Continued)
| 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(2) |
Ratio of net investment income (loss) to average net assets |
Portfolio turnover rate |
||||||||||||||
| Class A | ||||||||||||||||||||||||||||
| 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%(3) | ||||||||||||||
| 06/30/21 | 42.30 | 0.08(4) | 19.10 | 19.18 | (0.09) | (2.71) | (2.80) | 58.68 | 46.68 | 1,541,127 | 1.01 | 1.05 | 0.15 | 16(3) | ||||||||||||||
| 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(3)(5) | ||||||||||||||
| 06/30/23 | 47.20 | 0.21(4) | 9.72 | 9.93 | (0.08) | (0.68) | (0.76) | 56.37 | 21.28 | 1,928,303 | 1.01 | 1.02 | 0.43 | 4(3) | ||||||||||||||
| 06/30/24 | 56.37 | 0.31(4) | 9.68 | 9.99 | (0.34) | (0.05) | (0.39) | 65.97 | 17.79 | 2,084,764 | 1.00 | 1.00 | 0.51 | 6(3) | ||||||||||||||
| Class C | ||||||||||||||||||||||||||||
| 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%(3) | ||||||||||||||
| 06/30/21 | 39.16 | (0.30)(4) | 17.58 | 17.28 | - | (2.71) | (2.71) | 53.73 | 45.49 | 41,645 | 1.80 | 1.88 | (0.64) | 16(3) | ||||||||||||||
| 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(3)(5) | ||||||||||||||
| 06/30/23 | 42.62 | (0.16)(4) | 8.73 | 8.57 | - | (0.68) | (0.68) | 50.51 | 20.35 | 50,451 | 1.80 | 1.84 | (0.36) | 4(3) | ||||||||||||||
| 06/30/24 | 50.51 | (0.15)(4) | 8.65 | 8.50 | - | (0.05) | (0.05) | 58.96 | 16.84 | 51,919 | 1.80 | 1.81 | (0.29) | 6(3) | ||||||||||||||
| Class Y | ||||||||||||||||||||||||||||
| 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%(3) | ||||||||||||||
| 06/30/21 | 42.18 | 0.22(4) | 19.05 | 19.27 | (0.16) | (2.71) | (2.87) | 58.58 | 47.07 | 575,053 | 0.73 | 0.86 | 0.43 | 16(3) | ||||||||||||||
| 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(3)(5) | ||||||||||||||
| 06/30/23 | 47.14 | 0.35(4) | 9.72 | 10.07 | (0.16) | (0.68) | (0.84) | 56.37 | 21.65 | 670,688 | 0.73 | 0.81 | 0.71 | 4(3) | ||||||||||||||
| 06/30/24 | 56.37 | 0.47(4) | 9.67 | 10.14 | (0.49) | (0.05) | (0.54) | 65.97 | 18.11 | 881,916 | 0.73 | 0.79 | 0.78 | 6(3) | ||||||||||||||
| Institutional Class | ||||||||||||||||||||||||||||
| 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%(3) | ||||||||||||||
| 06/30/21 | 42.24 | 0.23(4) | 19.10 | 19.33 | (0.17) | (2.71) | (2.88) | 58.69 | 47.14 | 207,274 | 0.70 | 0.81 | 0.46 | 16(3) | ||||||||||||||
| 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(3)(5) | ||||||||||||||
| 06/30/23 | 47.23 | 0.37(4) | 9.73 | 10.10 | (0.17) | (0.68) | (0.85) | 56.48 | 21.68 | 265,418 | 0.70 | 0.75 | 0.74 | 4(3) | ||||||||||||||
| 06/30/24 | 56.48 | 0.48(4) | 9.70 | 10.18 | (0.51) | (0.05) | (0.56) | 66.10 | 18.13 | 274,624 | 0.70 | 0.72 | 0.81 | 6(3) | ||||||||||||||
| Class R6 | ||||||||||||||||||||||||||||
| 06/30/22(6) | $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%(3)(5) | ||||||||||||||
| 06/30/23 | 47.25 | 0.39(4) | 9.74 | 10.13 | (0.17) | (0.68) | (0.85) | 56.53 | 21.73 | 20,862 | 0.66 | 1.19 | 0.78 | 4(3) | ||||||||||||||
| 06/30/24 | 56.53 | 0.51(4) | 9.70 | 10.21 | (0.52) | (0.05) | (0.57) | 66.17 | 18.18 | 66,248 | 0.66 | 0.73 | 0.85 | 6(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) | The ratio of net and gross expenses to average net assets excluding liquidity provider expenses would have been lower by 0.01%, 0.01%, 0.01%, 0.01% and 0.03% for the years ended June 30, 2024, 2023, 2022, 2021 and 2020, respectively. |
| (3) | Portfolio turnover excludes securities delivered from processing redemptions-in-kind. |
| (4) | The net investment income (loss) per share was based on average shares outstanding for the period. |
| (5) | 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. |
| (6) | Represents the period from commencement of operations (October 28, 2021) through June 30, 2022 for Class R6. |
| (7) | Not annualized. |
| (8) | Annualized. |
See accompanying Notes to Financial Statements.
37
Table of Contents
Financial Highlights(Continued)
| 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(2) |
Ratio of net investment income (loss) to average net assets |
Portfolio turnover rate |
||||||||||||||
| Class A | ||||||||||||||||||||||||||||
| 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(3) | ||||||||||||||
| 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(3) | ||||||||||||||
| 06/30/23 | 15.39 | 0.12(4) | 2.28 | 2.40 | (0.02) | (0.57) | (0.59) | 17.20 | 15.96 | 5,259 | 1.06 | 1.42 | 0.75 | 17(3) | ||||||||||||||
| 06/30/24 | 17.20 | 0.12(4) | 1.42 | 1.54 | (0.21) | (0.07) | (0.28) | 18.46 | 9.06 | 6,464 | 1.04 | 1.39 | 0.67 | 6(3) | ||||||||||||||
| Class C | ||||||||||||||||||||||||||||
| 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 | (-)(5) | 15(3) | ||||||||||||||
| 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(3) | ||||||||||||||
| 06/30/23 | 15.07 | (-)(4)(5) | 2.23 | 2.23 | - | (0.57) | (0.57) | 16.73 | 15.10 | 2,036 | 1.81 | 2.17 | (-)(5) | 17(3) | ||||||||||||||
| 06/30/24 | 16.73 | (0.01)(4) | 1.38 | 1.37 | - | (0.07) | (0.07) | 18.03 | 8.20 | 1,353 | 1.79 | 2.46 | (0.08) | 6(3) | ||||||||||||||
| Class Y | ||||||||||||||||||||||||||||
| 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(3) | ||||||||||||||
| 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(3) | ||||||||||||||
| 06/30/23 | 15.42 | 0.16(4) | 2.29 | 2.45 | (0.08) | (0.57) | (0.65) | 17.22 | 16.24 | 206,214 | 0.81 | 0.90 | 1.00 | 17(3) | ||||||||||||||
| 06/30/24 | 17.22 | 0.16(4) | 1.42 | 1.58 | (0.25) | (0.07) | (0.32) | 18.48 | 9.28 | 207,868 | 0.79 | 0.89 | 0.92 | 6(3) | ||||||||||||||
| Institutional Class | ||||||||||||||||||||||||||||
| 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(3) | ||||||||||||||
| 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(3) | ||||||||||||||
| 06/30/23 | 15.44 | 0.18(4) | 2.28 | 2.46 | (0.10) | (0.57) | (0.67) | 17.23 | 16.35 | 60,341 | 0.71 | 0.85 | 1.10 | 17(3) | ||||||||||||||
| 06/30/24 | 17.23 | 0.18(4) | 1.43 | 1.61 | (0.27) | (0.07) | (0.34) | 18.50 | 9.45 | 64,183 | 0.69 | 0.83 | 1.02 | 6(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) | The ratio of net and gross expenses to average net assets excluding liquidity provider expenses would have been lower by 0.01%, 0.03%, 0.02% and 0.01% for the years ended June 30, 2024, 2023, 2022 and 2021, respectively. |
| (3) | Portfolio turnover excludes securities delivered from processing redemptions-in-kind. |
| (4) | The net investment income per share was based on average shares outstanding for the period. |
| (5) | Less than $0.005 per share or 0.005%. |
See accompanying Notes to Financial Statements.
38
Table of Contents
Financial Highlights(Continued)
| 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 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(2) |
Ratio of net investment income (loss) to average net assets |
Portfolio turnover rate |
||||||||||||||
| Class A | ||||||||||||||||||||||||||||
| 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(3) | ||||||||||||||
| 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(3) | ||||||||||||||
| 06/30/23 | 36.16 | (0.17)(4) | 6.10 | 5.93 | - | (1.23) | (1.23) | 40.86 | 16.89 | 3,711 | 1.08 | 1.57 | (0.46) | 44(3) | ||||||||||||||
| 06/30/24 | 40.86 | (0.30)(4) | 16.72 | 16.42 | - | (1.92) | (1.92) | 55.36 | 41.47 | 5,337 | 1.07 | 1.53 | (0.65) | 39(3) | ||||||||||||||
| Class C | ||||||||||||||||||||||||||||
| 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(3) | ||||||||||||||
| 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(3) | ||||||||||||||
| 06/30/23 | 33.92 | (0.42)(4) | 5.68 | 5.26 | - | (1.23) | (1.23) | 37.95 | 16.01 | 223 | 1.83 | 5.86 | (1.21) | 44(3) | ||||||||||||||
| 06/30/24 | 37.95 | (0.58)(4) | 15.41 | 14.83 | - | (1.92) | (1.92) | 50.86 | 40.43 | 216 | 1.82 | 6.43 | (1.40) | 39(3) | ||||||||||||||
| Class Y | ||||||||||||||||||||||||||||
| 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(3) | ||||||||||||||
| 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(3) | ||||||||||||||
| 06/30/23 | 36.91 | (0.08)(4) | 6.24 | 6.16 | - | (1.23) | (1.23) | 41.84 | 17.17 | 7,266 | 0.83 | 1.07 | (0.21) | 44(3) | ||||||||||||||
| 06/30/24 | 41.84 | (0.19)(4) | 17.17 | 16.98 | - | (1.92) | (1.92) | 56.90 | 41.85 | 10,199 | 0.82 | 1.08 | (0.40) | 39(3) | ||||||||||||||
| Institutional Class | ||||||||||||||||||||||||||||
| 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(3) | ||||||||||||||
| 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(3) | ||||||||||||||
| 06/30/23 | 37.22 | (0.04)(4) | 6.30 | 6.26 | - | (1.23) | (1.23) | 42.25 | 17.30 | 135,324 | 0.73 | 0.88 | (0.11) | 44(3) | ||||||||||||||
| 06/30/24 | 42.25 | (0.14)(4) | 17.35 | 17.21 | - | (1.92) | (1.92) | 57.54 | 41.99 | 137,363 | 0.72 | 0.89 | (0.30) | 39(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) | The ratio of net and gross expenses to average net assets excluding liquidity provider expenses would have been lower by 0.03%, 0.04%, 0.03% and 0.02% for the years ended June 30, 2024, 2023, 2022 and 2021, respectively. |
| (3) | Portfolio turnover excludes securities delivered from processing redemptions-in-kind. |
| (4) | The net investment income per share was based on average shares outstanding for the period. |
See accompanying Notes to Financial Statements.
39
Table of Contents
Financial Highlights(Continued)
| 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(2) |
Ratio of net investment income (loss) to average net assets |
Portfolio turnover rate |
||||||||||||||
| Class A | ||||||||||||||||||||||||||||
| 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(3) | ||||||||||||||
| 06/30/22 | 6.67 | (0.02)(4) | (0.95) | (0.97) | - | (1.14) | (1.14) | 4.56 | (17.95) | 451,081 | 1.17 | 1.17 | (0.31) | 70(3) | ||||||||||||||
| 06/30/23 | 4.56 | (-)(4)(5) | 0.71 | 0.71 | - | (0.12) | (0.12) | 5.15 | 15.80 | 484,105 | 1.19 | 1.19 | (-)(5) | 79(3) | ||||||||||||||
| 06/30/24 | 5.15 | (-)(4)(5) | 0.64 | 0.64 | - | (0.01) | (0.01) | 5.78 | 12.41 | 500,584 | 1.18 | 1.18 | (-)(5) | 59(3) | ||||||||||||||
| Class C | ||||||||||||||||||||||||||||
| 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(3) | ||||||||||||||
| 06/30/22^ | 8.52 | (0.08)(4) | (0.89) | (0.97) | - | (3.01) | (3.01) | 4.54 | (18.70) | 17,385 | 1.97 | 2.02 | (1.11) | 70(3) | ||||||||||||||
| 06/30/23^ | 4.54 | (0.03)(4) | 0.71 | 0.68 | - | (0.12) | (0.12) | 5.10 | 15.26 | 15,992 | 1.96 | 2.06 | (0.77) | 79(3) | ||||||||||||||
| 06/30/24 | 5.10 | (0.04)(4) | 0.62 | 0.58 | - | (0.01) | (0.01) | 5.67 | 11.35 | 14,146 | 1.96 | 2.06 | (0.78) | 59(3) | ||||||||||||||
| Class Y | ||||||||||||||||||||||||||||
| 06/30/20 | $5.33 | $(-)(5) | $(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 | (-)(5) | (0.01) | (0.01) | 7.45 | 64.61 | 282,428 | 0.91 | 0.99 | (0.16) | 80(3) | ||||||||||||||
| 06/30/22 | 7.45 | (-)(4)(5) | (1.10) | (1.10) | - | (1.14) | (1.14) | 5.21 | (17.81) | 222,141 | 0.91 | 0.97 | (0.05) | 70(3) | ||||||||||||||
| 06/30/23 | 5.21 | 0.02(4) | 0.82 | 0.84 | - | (0.12) | (0.12) | 5.93 | 16.33 | 312,720 | 0.90 | 0.98 | 0.29 | 79(3) | ||||||||||||||
| 06/30/24 | 5.93 | 0.02(4) | 0.73 | 0.75 | - | (0.01) | (0.01) | 6.67 | 12.63 | 429,455 | 0.90 | 0.96 | 0.28 | 59(3) | ||||||||||||||
| Institutional Class | ||||||||||||||||||||||||||||
| 06/30/20 | $5.32 | $-(5) | $(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 | (-)(5) | 2.93 | 2.93 | (-)(5) | (0.01) | (0.01) | 7.44 | 64.75 | 18,770 | 0.81 | 0.99 | (0.06) | 80(3) | ||||||||||||||
| 06/30/22 | 7.44 | -(4)(5) | (1.09) | (1.09) | - | (1.14) | (1.14) | 5.21 | (17.70) | 21,299 | 0.81 | 0.96 | 0.05 | 70(3) | ||||||||||||||
| 06/30/23 | 5.21 | 0.02(4) | 0.83 | 0.85 | - | (0.12) | (0.12) | 5.94 | 16.52 | 24,638 | 0.80 | 0.96 | 0.39 | 79(3) | ||||||||||||||
| 06/30/24 | 5.94 | 0.02(4) | 0.74 | 0.76 | - | (0.01) | (0.01) | 6.69 | 12.78 | 30,779 | 0.80 | 0.94 | 0.38 | 59(3) | ||||||||||||||
| Class R6 | ||||||||||||||||||||||||||||
| 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 | (-)(5) | 2.73 | 2.73 | (-)(5) | (0.01) | (0.01) | 6.91 | 65.08 | 63,766 | 0.81 | 0.89 | (0.06) | 80(3) | ||||||||||||||
| 06/30/22 | 6.91 | -(4)(5) | (1.00) | (1.00) | - | (1.14) | (1.14) | 4.77 | (17.73) | 53,500 | 0.81 | 0.87 | 0.05 | 70(3) | ||||||||||||||
| 06/30/23 | 4.77 | 0.02(4) | 0.75 | 0.77 | - | (0.12) | (0.12) | 5.42 | 16.37 | 65,962 | 0.80 | 0.88 | 0.39 | 79(3) | ||||||||||||||
| 06/30/24 | 5.42 | 0.02(4) | 0.67 | 0.69 | - | (0.01) | (0.01) | 6.10 | 12.72 | 81,101 | 0.80 | 0.87 | 0.38 | 59(3) |
| ^ | 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 ratio of net and gross expenses to average net assets excluding liquidity provider expenses would have been lower by 0.01%, 0.01%, 0.02% and 0.02% for the years ended June 30, 2024, 2023, 2022 and 2021, respectively. |
| (3) | Portfolio turnover excludes securities delivered from processing redemptions-in-kind. |
| (4) | The net investment income per share was based on average shares outstanding for the period. |
| (5) | Less than $0.005 per share or 0.005%. |
See accompanying Notes to Financial Statements.
40
Table of Contents
Financial Highlights(Continued)
| 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 | ||||||||||||||||||||||||||||
| 06/30/20 | $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(2) | ||||||||||||||
| 06/30/23 | 9.92 | 0.14 | 0.93 | 1.07 | (0.14) | (0.60) | (0.74) | 10.25 | 11.07 | 158,698 | 1.08 | 1.12 | 1.34 | 30(3) | ||||||||||||||
| 06/30/24 | 10.25 | 0.14(4) | 1.56 | 1.70 | (0.15) | (0.09) | (0.24) | 11.71 | 16.71 | 163,754 | 1.08 | 1.13 | 1.30 | 28 | ||||||||||||||
| Class C | ||||||||||||||||||||||||||||
| 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(2) | ||||||||||||||
| 06/30/23 | 9.88 | 0.06 | 0.94 | 1.00 | (0.06) | (0.60) | (0.66) | 10.22 | 10.35 | 3,721 | 1.83 | 2.05 | 0.59 | 30(3) | ||||||||||||||
| 06/30/24 | 10.22 | 0.06(4) | 1.54 | 1.60 | (0.06) | (0.09) | (0.15) | 11.67 | 15.76 | 2,919 | 1.83 | 2.16 | 0.55 | 28 | ||||||||||||||
| Class Y | ||||||||||||||||||||||||||||
| 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(2) | ||||||||||||||
| 06/30/23 | 9.97 | 0.16 | 0.94 | 1.10 | (0.16) | (0.60) | (0.76) | 10.31 | 11.39 | 85,516 | 0.83 | 0.88 | 1.59 | 30(3) | ||||||||||||||
| 06/30/24 | 10.31 | 0.17(4) | 1.55 | 1.72 | (0.17) | (0.09) | (0.26) | 11.77 | 16.90 | 96,905 | 0.83 | 0.88 | 1.55 | 28 | ||||||||||||||
| Institutional Class | ||||||||||||||||||||||||||||
| 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(2) | ||||||||||||||
| 06/30/23 | 9.93 | 0.18 | 0.94 | 1.12 | (0.18) | (0.60) | (0.78) | 10.27 | 11.62 | 222,825 | 0.68 | 0.80 | 1.74 | 30(3) | ||||||||||||||
| 06/30/24 | 10.27 | 0.19(4) | 1.55 | 1.74 | (0.19) | (0.09) | (0.28) | 11.73 | 17.14 | 250,463 | 0.68 | 0.81 | 1.70 | 28 | ||||||||||||||
| Class R6 | ||||||||||||||||||||||||||||
| 06/30/22(5) | $11.91 | $0.11 | $(1.11) | $(1.00) | $(0.13) | $ (0.85) | $(0.98) | $9.93 | (9.10)%(6) | $395 | 0.63%(7) | 8.11%(7) | 1.47%(7) | 63%(2) | ||||||||||||||
| 06/30/23 | 9.93 | 0.16 | 0.96 | 1.12 | (0.18) | (0.60) | (0.78) | 10.27 | 11.64 | 25,657 | 0.63 | 0.91 | 1.79 | 30(3) | ||||||||||||||
| 06/30/24 | 10.27 | 0.19(4) | 1.57 | 1.76 | (0.20) | (0.09) | (0.29) | 11.74 | 17.29 | 30,504 | 0.63 | 0.79 | 1.75 | 28 |
| (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 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. |
| (3) | Portfolio turnover excludes securities delivered from processing redemptions-in-kind. |
| (4) | The net investment income (loss) per share was based on average shares outstanding for the period. |
| (5) | Represents the period from commencement of operations (October 28, 2021) through June 30, 2022 for Class R6. |
| (6) | Not annualized. |
| (7) | Annualized. |
See accompanying Notes to Financial Statements.
41
Table of Contents
Notes to Financial Statements
June 30, 2024
1. Organization
The Touchstone Strategic Trust (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company. The Trust was established as a Massachusetts business trust pursuant to an Agreement and Declaration of Trust dated November 18, 1982. The Trust consists of fifteen funds, including the following eight funds (individually, a "Fund", and collectively, the "Funds"):
| Touchstone Balanced Fund ("Balanced Fund") |
| Touchstone Core Municipal Bond Fund ("Core Municipal Bond Fund") |
| Touchstone International Value Fund (formerly Touchstone International Equity Fund) ("International Value Fund") |
| Touchstone Large Cap Focused Fund ("Large Cap Focused Fund") |
| Touchstone Large Cap Fund ("Large Cap Fund") |
| Touchstone Large Company Growth Fund ("Large Company Growth Fund") |
| Touchstone Small Company Fund ("Small Company Fund") |
| Touchstone Value Fund ("Value Fund") |
Each Fund is diversified, with the exception of the Large Cap Focused Fund and the Large Company Growth Fund, which are non-diversified.
The Agreement and Declaration of Trust permits the Trust to issue an unlimited number of shares of beneficial interest of each Fund. The table below indicates the classes of shares that each Fund is registered to offer:
| Class A | Class C | Class Y | Institutional Class | Class R6 | |
| Balanced Fund | X | X | X | X | |
| Core Municipal Bond Fund | X | X | X | X | |
| International Value Fund | X | X | X | X | |
| Large Cap Focused Fund | X | X | X | X | X |
| Large Cap Fund | X | X | X | X | |
| Large Company Growth Fund | X | X | X | X | |
| Small Company Fund | X | X | X | X | X |
| Value Fund | X | X | X | X | X |
The assets of each Fund are segregated, and a shareholder's interest is limited to the Fund in which shares are held. The Funds' prospectus provides a description of each Fund's investment goal, policies, and strategies along with information on the classes of shares currently being offered.
2. Significant Accounting Policies
The following is a summary of the Funds' significant accounting policies:
Each Fund is an investment company that follows the accounting and reporting guidance of Accounting Standards Codification Topic 946 applicable to investment companies.
Security valuation and fair value measurements- U.S. generally accepted accounting principles ("U.S. GAAP") defines fair value as the price the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. All investments in securities are recorded at their fair value. The Funds define the term "market value", as used throughout this report, as the estimated fair value. The Funds use various methods to measure fair value of their portfolio securities on a recurring basis. U.S. GAAP fair value measurement standards require disclosure of a hierarchy that prioritizes inputs to valuation methods. These inputs are summarized in the three broad levels listed below:
• Level 1 − quoted prices in active markets for identical securities
• Level 2 − other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
• Level 3 − significant unobservable inputs (including a Fund's own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The aggregate value by input level, as of June 30, 2024, for each Fund's investments, is included in each Fund's Portfolio of Investments. The Funds did not hold or transfer any Level 3 categorized securities during the year ended June 30, 2024.
Changes in valuation techniques may result in transfers into or out of an investment's assigned level within the hierarchy.
42
Table of Contents
Notes to Financial Statements(Continued)
The Funds' portfolio securities are valued as of the close of the regular session of trading on the New York Stock Exchange ("NYSE") (currently 4:00 p.m., Eastern Time or at the time as of which the NYSE establishes official closing prices). Portfolio securities traded on stock exchanges are valued at the last reported sale price, official close price, or last bid price if no sales are reported. Portfolio securities quoted by NASDAQ are valued at the NASDAQ Official Closing Price ("NOCP") or from the primary exchange on which the security trades. To the extent these securities are actively traded, they are categorized in Level 1 of the fair value hierarchy. Options and futures are valued at the last quoted sales price. If there is no such reported sale on the valuation date, long option positions are valued at the most recent bid price, and short option positions are valued at the most recent ask price on the valuation date and are categorized in Level 1. Shares of mutual funds in which the Funds invest are valued at their respective net asset value ("NAV") as reported by the underlying funds and are categorized in Level 1.
Debt securities held by the Funds are valued at their evaluated bid by an independent pricing service or at their last broker-quoted bid prices as obtained from one or more of the major market makers for such securities. Independent pricing services use information provided by market makers or estimates of market values through accepted market modeling conventions. Observable inputs to the models may include prepayment speeds, pricing spread, yield, trade information, dealer quotes, market color, cash flow models, the securities' terms and conditions, among others, and are generally categorized in Level 2. Investments in asset-backed and mortgage-backed securities are valued by independent pricing services using models that consider estimated cash flows of each tranche of the security, establish a benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche, and are generally categorized in Level 2. Debt securities with remaining maturities of 60 days or less may be valued at amortized cost, provided such amount approximates market value and are categorized in Level 2. While this method provides consistency in valuation (and may only be used if it approximates market value), it may result in periods during which fair value, as determined by amortized cost, is higher or lower than the price that would be received if the Fund sold the investment.
Securities mainly traded on a non-U.S. exchange or denominated in foreign currencies are generally valued according to the preceding closing values on that exchange, translated to U.S. dollars using currency exchange rates as of the close of regular trading on the NYSE, and are generally categorized in Level 1. However, if an event that may change the value of a security occurs after the time that the closing value on the non-U.S. exchange was determined, but before the close of regular trading on the NYSE, the security may be priced based on fair value and is generally categorized in Level 2. This may cause the value of the security, if held on the books of a Fund, to be different from the closing value on the non-U.S. exchange and may affect the calculation of that Fund's NAV. The Funds may use fair value pricing under the following circumstances, among others:
• If the value of a security has been materially affected by events occurring before the Funds' pricing time but after the close of the primary markets on which the security is traded.
• If the exchange on which a portfolio security is principally traded closes early or if trading in a particular portfolio security was halted during the day and did not resume prior to the Funds' NAV calculation.
• If a security is so thinly traded that reliable market quotations are unavailable due to infrequent trading.
• If the validity of market quotations is not reliable.
Securities held by the Funds that do not have readily available market quotations, significant observable inputs, or securities for which the available market quotations are not reliable, are priced at their estimated fair value using procedures established by Touchstone Advisors, Inc. (the "Adviser") and adopted by the Funds' Board of Trustees (the "Board") and are generally categorized in Level 3.
Collateralized Loan Obligations - The Balanced Fund may invest in collateralized loan obligations ("CLOs"). CLOs are types of asset-backed securities. A CLO is an entity that is backed by syndicated bank loans. The cash flows of the CLO can be split into multiple segments, called "tranches," which will vary in risk profile and yield. The riskiest segment is the subordinated or "equity" tranche. This tranche bears the greatest risk of defaults from the underlying assets in the CLO and serves to protect the other, more senior, tranches from default in all but the most severe circumstances. Since it is shielded from defaults by the more junior tranches, a "senior" tranche will typically have higher credit ratings and lower yields than their underlying securities, and often receive higher ratings from one or more of the nationally recognized rating agencies. Despite the protection from the more junior tranches, senior tranches can experience substantial losses due to actual defaults, increased sensitivity to future defaults and the disappearance of one or more protecting tranches as a result of changes in the credit profile of the underlying pool of assets.
Investment companies- The Funds may invest in securities of other investment companies, including exchange-traded funds ("ETFs"), open-end funds and closed-end funds. Open-end funds are investment companies that issue new shares continuously and redeem shares daily. Closed-end funds are investment companies that typically issue a fixed number of shares that trade on a securities exchange or over-the-counter ("OTC"). An ETF is an investment company that typically seeks to track the performance of an index by holding in its portfolio shares of all the companies, or a representative sample of the companies, that are components of a particular index. ETF shares are traded on a securities exchange based on their market value. The risks of investment in other investment companies typically reflect the risks of the types of securities in which the other investment companies invest. Investments in ETFs and closed-end funds are subject to the additional risk that their shares may trade at a premium or discount to
43
Table of Contents
Notes to Financial Statements(Continued)
their NAV. When a Fund invests in another investment company, shareholders of the Fund indirectly bear their proportionate share of the other investment company's fees and expenses, including operating, registration, trustee, licensing, and marketing, as well as their share of the Fund's fees and expenses.
Futures Contracts- The Balanced Fund may buy and sell futures contracts and related options to manage its exposure to changing interest rates and securities prices. Some strategies reduce the Fund's exposure to price fluctuations, while others tend to increase its market exposure. Futures and options on futures can be volatile instruments and involve certain risks that could negatively impact the Fund's return. When the Fund purchases or sells a futures contract, or sells an option thereon, the Fund must deposit initial margin and, in some instances, daily variation margin, to meet its obligations under a contract with a futures commission merchant.
When the contract is closed, the Fund records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transactions and the Fund's basis in the contract. Risks of entering into futures contracts include the possibility that a change in the value of the contract may not correlate with the changes in the value of the underlying instruments. Second, it is possible that a lack of liquidity for futures contracts could exist in the secondary market resulting in an inability to close a futures position prior to its maturity date. Third, the purchase of a futures contract involves the risk that the Fund could lose more than the original margin deposit required to initiate the futures transaction. Finally, the risk exists that losses could exceed amounts disclosed on the Statements of Assets and Liabilities. There is minimal counterparty credit risk involved in entering into futures contracts since they are exchange-traded instruments and the exchange's clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.
As of June 30, 2024, the Balanced Fund had futures contracts as shown on the Portfolio of Investments.
Swap Contracts- The Balanced Fund may enter into swap transactions to help enhance the value of their portfolio or manage its exposure to different types of investments. Swaps are financial instruments that typically involve the exchange of cash flows between two parties on specified dates (settlement dates), where the cash flows are based on agreed-upon prices, rates, indexes, etc. The nominal amount on which the cash flows are calculated is called the notional amount. Swaps are individually negotiated and structured to include exposure to a variety of different types of investments or market factors, such as interest rates, foreign currency rates, mortgage securities, corporate borrowing rates, security prices, indexes or inflation rates.
Swap agreements may increase or decrease the overall volatility of the investments of a Fund and its share price. The performance of swap agreements may be affected by a change in the specific interest rate, currency, or other factors that determine the amounts of payments due to and from a Fund. If a swap agreement calls for payments by a Fund, the Fund must be prepared to make such payments when due. In addition, if the counterparty's creditworthiness declines, the value of a swap agreement would be likely to decline, potentially resulting in losses.
Generally, bilateral swap agreements and OTC swaps have a fixed maturity date that will be agreed upon by the parties. The agreement can be terminated before the maturity date only under limited circumstances, such as default by one of the parties or insolvency, among others, and can be transferred by a party only with the prior written consent of the other party. The Fund may be able to eliminate its exposure under a swap agreement either by assignment or by other disposition, or by entering into an offsetting swap agreement with the same party or a similarly creditworthy party. If the counterparty is unable to meet its obligations under the contract, declares bankruptcy, defaults or becomes insolvent, a Fund may not be able to recover the money it expected to receive under the contract.
Cleared swaps are transacted through futures commission merchants that are members of central clearinghouses with the clearinghouses serving as a central counterparty. Pursuant to rules promulgated under the Dodd-Frank Wall Street Reform and Consumer Protection Act, central clearing of swap agreements is currently required for certain market participants trading certain instruments, and central clearing for additional instruments is expected to be implemented by regulators until the majority of the swaps market is ultimately subject to central clearing.
Swaps are marked-to-market daily based upon values received from third party vendors or quotations from market makers. For OTC swaps, any upfront premiums paid or received are recorded as assets or liabilities, respectively, and are shown as premium paid on swap agreements or premium received on swap agreements in the Statements of Assets and Liabilities. For swaps that are centrally cleared, initial margins, determined by each relevant clearing agency or clearing member, are posted at a clearing broker in accordance with CFTC or the applicable regulator's regulations. The change in value of swaps, including accruals of periodic amounts of interest to be paid or received on swaps, is recorded as unrealized appreciation or depreciation. Daily changes in the value of centrally cleared swaps are recorded in the Statements of Assets and Liabilities as receivable or payable for variation margin on swap agreements and settled daily. Upfront premiums and liquidation payments received or paid are recorded as realized gains or losses at the termination or maturity of the swap. Net periodic payments received or paid by the Fund are recorded as realized gain or loss.
44
Table of Contents
Notes to Financial Statements(Continued)
A swap agreement can be a form of leverage, which can magnify a Fund's gains or losses. In order to reduce the risk associated with leveraging, the Fund will only enter into a swap agreement subject to the regulatory limitations set forth in Rule 18f-4 under the 1940 Act (the "Derivatives Rule").
As of June 30, 2024, the Balanced Fund held swap agreements as shown on the Portfolio of Investments.
Foreign currency translation- The books and records of the Funds are maintained in U.S. dollars and translated into U.S. dollars on the following basis:
| (1) | market value of investment securities, assets and liabilities at the current rate of exchange on the valuation date; and |
| (2) | purchases and sales of investment securities, income, and expenses at the relevant rates of exchange prevailing on the respective dates of such transactions. |
The Funds do not isolate that portion of gains and losses on investments in equity securities that is due to changes in the foreign exchange rates from that which is due to changes in market prices of equity securities.
Real Estate Investment Trusts- The Funds may invest in real estate investment trusts ("REITs") that involve risks not associated with investing in stocks. Risks associated with investments in REITs include declines in the value of real estate, general and economic conditions, changes in the value of the underlying property and defaults by borrowers. The value of assets in the real estate industry may go through cycles of relative underperformance and outperformance in comparison to equity securities markets in general. Dividend income is recorded using management's estimate of the income included in distributions received from REIT investments. The actual amounts of income, return of capital and capital gains are only determined by each REIT after its fiscal year-end and may differ from the estimated amount. Estimates of income are adjusted in the Funds to the actual amounts when the amounts are determined.
Derivative instruments and hedging activities- The Balanced Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement ("ISDA Master Agreement" or "MNA") or similar agreement with certain counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs OTC derivatives and foreign exchange contracts, and typically contains, among other things, collateral posting terms and master netting provisions in the event of a default or termination. Under an ISDA Master Agreement, a party may, under certain circumstances, offset with the counterparty certain derivative financial instruments' payables or receivables with collateral held or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default (close-out netting). These default events include bankruptcy or insolvency of the counterparty. Note, however, that bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset.
When entering into a derivative transaction, a Fund may be required to post and maintain collateral or margin (including both initial and variation margin). Collateral and margin requirements differ by type of derivative. Margin requirements are established by the broker or clearing house for exchange-traded and centrally cleared derivatives (financial futures contracts, options, and centrally cleared swaps). Brokers can ask for margining in excess of the clearing house's minimum in certain circumstances. Collateral terms are contract specific for OTC derivatives (forward foreign currency contracts, options, and swaps). For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the marked-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Fund and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Fund and cash collateral received from the counterparty, if any, are reported separately on the Statements of Assets and Liabilities as cash deposits held at prime broker and due to prime broker, respectively. Non-cash collateral pledged by the Fund, if any, is noted in the Portfolio of Investments. To the extent amounts due to the Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty non-performance.
Certain ISDA Master Agreements allow counterparties to OTC derivatives transactions to terminate derivative contracts prior to maturity in the event a Fund's net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA Master Agreement, which would cause the Fund (counterparty) to accelerate payment of any net liability owed to the counterparty (Fund).
For financial reporting purposes, the Balanced Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities.
As of June 30, 2024, the Balanced Fund did not hold any assets and liabilities that were subject to a MNA.
45
Table of Contents
Notes to Financial Statements(Continued)
The following table sets forth the fair value of the Funds' derivative financial instruments by primary risk exposure as of June 30, 2024:
| Fund |
Derivatives not accounted for as hedging instruments under ASC 815 |
Asset Derivatives |
Liability Derivatives |
| Balanced Fund |
Swap Agreements - Credit Contracts*
|
$63,037 | $- |
|
Futures Contracts - Interest Rate Contracts**
|
146,407 | 244,647 |
| * | Statements of Assets and Liabilities Location: Payable for variation margin on swap agreements. Variation margin reported in the Portfolio of Investments and other tables in the Notes to the Financial Statements is the cumulative unrealized appreciation (depreciation). |
| ** | Statements of Assets and Liabilities Location: Receivable for variation margin on futures contracts. Only current day's variation margin is reported within the payable/receivable on the Statement of Assets and Liabilities. Includes cumulative appreciation/(depreciation) on futures contracts as reported on the Portfolio of Investments and within the components of net assets section of the Statement of Assets and Liabilities. |
The following table sets forth the effect of the Balanced Fund's derivative financial instruments by primary risk exposure on the Statements of Operations for the year ended June 30, 2024:
| Fund |
Derivatives not accounted for as hedging instruments under ASC 815 |
Realized Gains (Losses) on Derivatives |
Change in Unrealized Appreciation (Depreciation) on Derivatives |
| Balanced Fund |
Futures - Interest Rate Contracts*
|
$(848,841) | $839,330 |
|
Swap Agreements - Credit Contracts**
|
(1,051,259) | 213,237 |
| * | Statements of Operations Location: Net realized losses on futures contracts and Net change in unrealized appreciation (depreciation) on futures contracts, respectively. |
| ** | Statements of Operations Location: Net realized losses on swap agreements and Net change in unrealized appreciation (depreciation) on swap agreements, respectively. |
For the year ended June 30, 2024, the average quarterly notional value of outstanding derivative financial instruments was as follows:
| Balanced Fund | |
| Credit Contracts: | |
| Credit Default Swaps (buy protection) - Notional value | $10,179,120 |
| Interest Rate Contracts: | |
| Futures Contracts (long) - Notional Value | 68,516,628 |
| Futures Contracts (short) - Notional Value | 11,754,025 |
Portfolio securities loaned- The Funds may lend their portfolio securities. Lending portfolio securities exposes the Funds to the risk that the borrower may fail to return the loaned securities or may not be able to provide additional collateral or that the Funds may experience delays in recovery of the loaned securities or loss of rights in the collateral if the borrower fails financially. To minimize these risks, the borrower must agree to maintain cash collateral with the Funds' custodian. The loaned securities are secured by collateral valued at least equal, at all times, to the market value of the loaned securities plus accrued interest, if any. When the collateral falls below specified amounts, the lending agent will use its best effort to obtain additional collateral on the next business day to meet required amounts under the security lending agreement. The cash collateral is reinvested by the Funds' custodian into an approved short-term investment vehicle. The approved short-term investment vehicle is subject to market risk.
As of June 30, 2024, the following Funds loaned securities and received collateral as follows:
| Fund | Security Type |
Market Value of Securities Loaned* |
Market Value of Collateral Received** |
Net Amount*** |
| Small Company Fund | Common Stocks | $15,339,549 | $15,468,550 | $129,001 |
| Value Fund | Common Stocks | 5,257,800 | 5,347,500 | 89,700 |
| * | The remaining contractual maturity is overnight for all securities. |
| ** | Gross amount of recognized liabilities for securities lending included in the Statements of Assets and Liabilities. |
| *** | Net amount represents the net amount payable due to (received from) the borrower in the event of default. |
All cash collateral is received, held, and administered by the Funds' custodian for the benefit of the lending Fund in its custody account or other account established for the purpose of holding collateral in cash equivalents.
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Notes to Financial Statements(Continued)
Funds participating in securities lending receive compensation in the form of fees. Securities lending income is derived from lending long securities from the Funds to creditworthy approved borrowers at rates that are determined based on daily trading volumes, float, short-term interest rates and market liquidity and is shown net of fees on the Statements of Operations. When a Fund lends securities, it retains the interest or dividends on the investment of any cash received as collateral, and the Fund continues to receive interest or dividends on the loaned securities.
Unrealized gain or loss on the market value of the loaned securities that may occur during the term of the loan is recognized by the Fund. The Fund has the right under the lending agreement to recover any loaned securities from the borrower on demand.
When-issued or delayed delivery transactions - Each Fund may purchase or sell securities on a when-issued or delayed delivery basis. These transactions involve a commitment by the Fund to purchase or sell securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. When purchasing a security on a delayed delivery basis, the Fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining NAV. The Fund may dispose of or renegotiate a delayed delivery transaction after it is entered into, and may sell when-issued securities before they are delivered, which may result in a capital gain or loss. When the Fund has sold a security on a delayed delivery basis, the Fund does not participate in future gains and losses with respect to the security. When-issued or delayed delivery transactions physically settling within 35-days are deemed not to involve a senior security. When-issued or delayed delivery transactions that do not physically settle within 35-days are required to be treated as derivatives transactions in compliance with the Derivatives Rule.
Share valuation- The NAV per share of each class of shares of each Fund is calculated daily by dividing the total value of a Fund's assets attributable to that class, less liabilities attributable to that class, by the number of outstanding shares of that class.
The maximum offering price per share of Class A shares of the equity funds (all of the Funds except the Core Municipal Bond Fund) is equal to the NAV per share plus a sales load equal to 5.26% of the NAV (or 5.00% of the offering price). The maximum offering price per share of Class A shares of the Core Municipal Bond Fund is equal to the NAV per share plus a sales load equal to 3.36% of the NAV (or 3.25% of the offering price). There is no sales load on equity or fixed income fund purchases when aggregate purchases in all Touchstone funds equal at least $1 million or $500,000, respectively. The maximum offering price per share of Classes C, Y, Institutional Class and R6 shares of the Funds is equal to the NAV per share.
The redemption price per share of each class of shares of the Funds is generally equal to the NAV per share. However, Class A redemptions that were part of a no-load purchase due to the aggregate purchase amount in all Touchstone Funds equaling at least the maximum breakpoint where a Finder's Fee was paid may be subject to a contingent deferred sales charge ("CDSC") of up to 1.00% or 0.50% for equity or fixed income funds, respectively, if redeemed within a one-year period from the date of purchase. Additionally, purchases of Class C shares of the Funds are subject to a CDSC of 1.00% if redeemed within a one-year period from the date of purchase. The CDSC will be assessed on an amount equal to the lesser of (1) the NAV at the time of purchase of the shares being redeemed or (2) the NAV of such shares being redeemed.
Investment income- Dividend income from securities is recognized on the ex-dividend date, net of foreign withholding taxes, if any, which are reduced by any amounts reclaimable by the Funds, where applicable. Interest income from securities is recorded on the basis of interest accrued, premium amortized and discount accreted. Realized gains and losses resulting from principal pay downs on mortgage-backed and asset-backed securities are included in interest income. Market discounts, original issue discounts and market premiums on debt securities are accreted/amortized to interest income over the life of the security or to the appropriate call date, as applicable, with a corresponding adjustment in the cost basis of that security. In addition, it is the Funds' policy to accrue for foreign capital gains taxes, if applicable, on certain foreign securities held by the Funds. An estimated foreign capital gains tax is recorded daily on net unrealized gains on these securities and is payable upon the sale of such securities when a gain is realized.
Distributions to shareholders- Each Fund intends to distribute to its shareholders substantially all of its income and capital gains. Each Fund, except the Balanced Fund, the Core Municipal Bond Fund and the Value Fund, declares and distributes net investment income, if any, annually, as a dividend to shareholders. The Balanced Fund and Value Fund declare and distribute net investment income, if any quarterly, as a dividend to shareholders. The Core Municipal Bond Fund declares distributions from net investment income on a daily basis and distributes as a dividend to shareholders on a monthly basis. Each Fund makes distributions of capital gains, if any, at least annually, net of applicable capital loss carryforwards. Income distributions and capital gain distributions are determined in accordance with income tax regulations. Recognition of the Funds' net investment income from investments in underlying funds is affected by the timing of dividend declarations by the underlying funds.
Allocations- Investment income earned, realized capital gains and losses, and unrealized appreciation and depreciation for a Fund are allocated daily to each class of shares based upon its proportionate share of total net assets of the Fund. Class-specific expenses are charged directly to the class incurring the expense. Common expenses, which are not attributable to a specific class, are allocated daily to each class of shares based upon their proportionate share of total net assets of the Fund. Expenses not directly billed to a Fund are allocated proportionally among all Funds in the Trust, and, if applicable, Touchstone ETF Trust, Touchstone Funds
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Group Trust and Touchstone Variable Series Trust (collectively with the Trust, "Touchstone Fund Complex"), daily in relation to net assets of each Fund or another reasonable measure.
Security transactions- Security transactions are reflected for financial reporting purposes as of the trade date. Realized gains and losses on sales of portfolio securities are calculated using the identified cost basis.
Estimates- The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
3. Investment Transactions
Investment transactions (excluding short-term investments and U.S. Government securities) were as follows for the year ended June 30, 2024:
|
Balanced Fund |
Core Municipal Bond Fund |
International Value Fund |
Large Cap Focused Fund* |
|
| Purchases of investment securities | $120,863,558 | $13,314,323 | $117,167,326 | $290,057,439 |
| Proceeds from sales and maturities | $121,019,646 | $16,080,687 | $120,999,966 | $178,284,419 |
|
Large Cap Fund* |
Large Company Growth Fund* |
Small Company Fund* |
Value Fund |
|
| Purchases of investment securities | $17,169,327 | $52,692,284 | $614,896,164 | $142,038,377 |
| Proceeds from sales and maturities | $18,557,640 | $66,614,868 | $557,061,644 | $174,308,353 |
| * | The Large Cap Focused Fund, the Large Cap Fund, the Large Company Growth Fund and the Small Company Fund had redemption-in-kinds out of the Fund of $143,206,386, $14,001,283, $26,160,798 and $20,220,175, respectively, which are excluded from the proceeds from sales and maturities. |
For the year ended June 30, 2024, purchases and proceeds from sales and maturities in U.S. Government Securities were $492,002,675 and $463,647,442, respectively, for the Balanced Fund. There were no purchases or proceeds from sales and maturities of U.S. Government securities by the other Funds for the year ended June 30, 2024.
4. Transactions with Affiliates and Other Related Parties
Certain officers of the Trust are also officers of the Adviser, Touchstone Securities, Inc. (the "Distributor"), or The Bank of New York Mellon ("BNY Mellon"), the sub-administrator to the Funds. Such officers receive no compensation from the Trust. The Adviser and the Distributor are each wholly-owned subsidiaries of Western & Southern Financial Group, Inc. ("Western & Southern").
On behalf of the Funds, the Adviser pays each Independent Trustee a quarterly retainer plus additional retainers to the Lead Independent Trustee and the chairs of each standing committee. Interested Trustees do not receive compensation from the Funds. Each Independent Trustee also receives compensation for each Board meeting and committee meeting attended. Each standing committee chair receives additional compensation for each committee meeting that he or she oversees. The Adviser is reimbursed by the Funds for the Independent Trustees' compensation and out-of-pocket expenses relating to their services. The Funds accrued Trustee-related expenses of $244,480 for the Funds' Board for the year ended June 30, 2024.
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MANAGEMENT & EXPENSE LIMITATION AGREEMENTS
The Adviser provides general investment supervisory services for the Funds, under the terms of an advisory agreement (the "Advisory Agreement"). Under the Advisory Agreement, each Fund pays the Adviser a fee, which is computed and accrued daily and paid monthly, at an annual rate based on average daily net assets of each Fund as shown in the table below.
| Balanced Fund |
0.55% on the first $200 million 0.50% on the next $200 million 0.45% on the next $600 million 0.40% on the next $1 billion 0.35% on assets in excess of $2 billion |
| Core Municipal Bond Fund |
0.40% on the first $300 million 0.30% on assets in excess of $300 million |
| International Value Fund |
0.70% on the first $500 million 0.65% on the next $300 million 0.60% on the next $200 million 0.50% on the next $1 billion 0.40% on assets in excess of $2 billion |
| Large Cap Focused Fund |
0.70% on the first $500 million 0.65% on the next $300 million 0.60% on the next $200 million 0.50% on the next $1 billion 0.40% on assets in excess of $2 billion |
| Large Cap Fund |
0.60% on the first $500 million 0.54% on the next $500 million 0.50% on assets in excess of $1 billion |
| Large Company Growth Fund | 0.60% on all assets |
| Small Company Fund |
0.70% on the first $500 million 0.65% on the next $300 million 0.60% on the next $200 million 0.50% on the next $1 billion 0.40% on assets in excess of $2 billion |
| Value Fund |
0.65% on the first $200 million 0.55% on assets in excess of $200 million |
The Adviser has entered into investment sub-advisory agreements with the following parties (each, a "Sub-Adviser"):
| Barrow, Hanley, Mewhinney & Strauss, LLC d/b/a | London Company of Virginia d/b/a The London Company |
| Barrow Hanley Global Investors | Large Cap Fund |
| Value Fund | Fort Washington Investment Advisors, Inc.* |
| DSM Capital Partners LLC | Balanced Fund |
| Large Company Growth Fund | Large Cap Focused Fund |
| Sage Advisory Services, Ltd Co. | Small Company Fund |
| Core Municipal Bond Fund | |
| LSV Asset Management ** | |
| International Value Fund |
* Affiliate of the Adviser and wholly-owned subsidiary of Western & Southern.
** Prior to April 30, 2024, the sub-advisor was Fort Washington Investment Advisors, Inc.
The Adviser pays sub-advisory fees to each Sub-Adviser from its advisory fee.
The Adviser entered into an expense limitation agreement (the "Expense Limitation Agreement") to contractually limit the annual operating expenses of the Funds, excluding: dividend and interest expenses relating to short sales; interest; taxes; brokerage commissions and other transaction costs; portfolio transaction and investment related expenses, including expenses associated with the Funds' liquidity providers; other expenditures which are capitalized in accordance with U.S. GAAP; the cost of "Acquired Fund Fees and Expenses", if any; and other extraordinary expenses not incurred in the ordinary course of business. The maximum annual operating expense limit in any year with respect to the Funds is based on a percentage of the average daily net assets of the Funds.
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The Adviser has agreed to waive a portion of its fees, and to reimburse certain fund expenses in order to maintain the following expense limitations for the Funds:
| Class A | Class C | Class Y |
Institutional Class |
Class R6 | Termination Date | |
| Balanced Fund | 1.01% | 1.78% | 0.81% | - | 0.64% | October 29, 2024 |
| Core Municipal Bond Fund | 0.80% | 1.55% | 0.55% | 0.48% | - | October 29, 2024 |
| International Value Fund* | 1.26% | 1.89% | 0.89% | 0.79% | - | April 29, 2025 |
| Large Cap Focused Fund | 1.00% | 1.79% | 0.72% | 0.69% | 0.65% | October 29, 2024 |
| Large Cap Fund | 1.03% | 1.78% | 0.78% | 0.68% | - | October 29, 2024 |
| Large Company Growth Fund | 1.04% | 1.79% | 0.79% | 0.69% | - | October 29, 2024 |
| Small Company Fund | 1.22% | 1.95% | 0.89% | 0.79% | 0.79% | October 29, 2024 |
| Value Fund | 1.08% | 1.83% | 0.83% | 0.68% | 0.63% | October 29, 2024 |
| * | Prior to April 30, 2024, the expense limitations for Classes A, C, Y, and Institutional Class shares were 1.36%, 1.99%, 0.99% and 0.89%, respectively. |
The Expense Limitation Agreement can be terminated, with respect to each Fund, by a vote of the Funds' Board if it deems the termination to be beneficial to the Funds' shareholders.
During the year ended June 30, 2024, the Adviser or its affiliates waived investment advisory fees, administration fees or other operating expenses, including distribution fees of the Funds, as follows:
| Fund |
Investment Advisory Fees Waived |
Administration Fees Waived |
Other Operating Expenses Reimbursed/ Waived |
Total |
| Balanced Fund | $- | $23 | $6,397 | $6,420 |
| Core Municipal Bond Fund | - | 37,964 | 132,808 | 170,772 |
| International Value Fund | - | 22,115 | 183,759 | 205,874 |
| Large Cap Focused Fund | - | 8,381 | 532,217 | 540,598 |
| Large Cap Fund | - | 98,349 | 232,995 | 331,344 |
| Large Company Growth Fund | - | 148,094 | 110,971 | 259,065 |
| Small Company Fund | - | 38,278 | 268,590 | 306,868 |
| Value Fund | - | 227,565 | 248,215 | 475,780 |
Under the terms of the Expense Limitation Agreement, the Adviser is entitled to recover, subject to approval by the Funds' Board, such amounts waived or reimbursed for a period of up to three years from the date on which the Adviser reduced its compensation or assumed expenses for the Funds. A Fund will make repayments to the Adviser only if such repayment does not cause the Fund's operating expenses (after the repayment is taken into account) to exceed the Fund's expense limit in place when such amounts were waived or reimbursed by the Adviser and the Fund's current expense limitation.
As of June 30, 2024, the Adviser may seek recoupment of previously waived fees and reimbursed expenses as follows:
| Fund |
Expires on or before June 30, 2025 |
Expires on or before June 30, 2026 |
Expires on or before June 30, 2027 |
Total |
| Balanced Fund | $4,428 | $6,383 | $6,420 | $17,231 |
| Core Municipal Bond Fund | 99,819 | 85,859 | 106,066 | 291,744 |
| International Value Fund | 64,511 | 61,315 | 87,423 | 213,249 |
| Large Cap Focused Fund | 413,033 | 562,231 | 534,098 | 1,509,362 |
| Large Cap Fund | 321,303 | 274,546 | 305,525 | 901,374 |
| Large Company Growth Fund | 309,075 | 258,765 | 246,627 | 814,467 |
| Small Company Fund | 229,745 | 299,021 | 292,662 | 821,428 |
| Value Fund | 498,918 | 385,367 | 390,592 | 1,274,877 |
The Adviser did not recoup any amounts it previously waived or reimbursed during the year ended June 30, 2024.
ADMINISTRATION AGREEMENT
The Adviser entered into an Administration Agreement with the Trust, whereby the Adviser is responsible for: supplying executive and regulatory compliance services; supervising the preparation of tax returns; coordinating the preparation of reports to shareholders and reports to and filings with the Securities and Exchange Commission ("SEC") and state securities authorities, as well as materials for meetings of the Board; calculating the daily NAV per share; and maintaining the financial books and records of each Fund.
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For its services, the Adviser's annual administrative fee is:
0.145% on the first $20 billion of the aggregate average daily net assets;
0.11% on the next $10 billion of aggregate average daily net assets;
0.09% on the next $10 billion of aggregate average daily net assets; and
0.07% on the aggregate average daily net assets over $40 billion.
The fee is computed and allocated among the Touchstone Fund Complex on the basis of relative daily net assets.
The Adviser has engaged BNY Mellon as the sub-administrator to the Trust. BNY Mellon provides administrative and accounting services to the Trust and is compensated directly by the Adviser, not the Trust.
TRANSFER AGENT AGREEMENT
Under the terms of the Transfer Agent Agreement between the Trust and BNY Mellon Investment Servicing (U.S.) Inc. ("Transfer Agent"), the Transfer Agent to the Funds maintains the records of each shareholder's account, answers shareholders' inquiries concerning their accounts, processes purchases and redemptions of each Fund's shares, acts as dividend and distribution disbursing agent, and performs other shareholder service functions. For these services, the Transfer Agent receives a monthly fee from each Fund. In addition, each Fund pays out-of-pocket expenses incurred by the Transfer Agent, including, but not limited to, postage and supplies.
The Funds may reimburse the Adviser for fees paid to intermediaries such as banks, broker-dealers, financial advisers or other financial institutions for sub-transfer agency, sub-administration and other services provided to investors whose shares of record are held in omnibus, other group accounts, retirement plans or accounts traded through registered securities clearing agents. These fees, which are included in Transfer Agent fees in the Statements of Operations, may vary based on, for example, the nature of services provided, but generally range up to 0.15% of the assets of the class serviced or maintained by the intermediary or up to $22 per sub-account maintained by the intermediary.
PLANS OF DISTRIBUTION AND SHAREHOLDER SERVICING FEE ARRANGEMENTS
The Trust has adopted distribution plans pursuant to Rule 12b-1 under the 1940 Act for each class of shares it offers that is subject to 12b-1 distribution fees. The plans allow each Fund to pay distribution and other fees for the sale and distribution of its shares and for services provided to shareholders. The fees charged to the Funds are limited to the actual expenses incurred. Under the Class A plan, each Fund offering Class A shares pays an annual fee not to exceed 0.25% of average daily net assets that are attributable to Class A shares. Under the Class C plan, each Fund offering Class C shares pays an annual fee not to exceed 1.00% of average daily net assets that are attributable to Class C shares (of which up to 0.75% is a distribution fee and up to 0.25% is a shareholder servicing fee).
DISTRIBUTION AGREEMENT
The Distributor is the Funds' principal underwriter and, as such, acts as exclusive agent for distribution of the Funds' shares. Under the terms of the Distribution Agreement between the Trust and the Distributor, the Distributor earned underwriting and broker commissions on the sale of Class A shares of the Funds. W&S Brokerage Services, Inc., an affiliate of the Distributor and the Adviser, also earned broker commissions on the sale of Class A shares of the Funds. Listed below are the total underwriting and broker commissions earned by the Distributor and its affiliate during the year ended June 30, 2024:
| Fund | Amount |
| Balanced Fund | $ 56,376 |
| Core Municipal Bond Fund | 130 |
| International Value Fund | 2,053 |
| Large Cap Focused Fund | 40,463 |
| Large Cap Fund | 553 |
| Large Company Growth Fund | 932 |
| Small Company Fund | 22,722 |
| Value Fund | 3,746 |
In addition, the Distributor collected CDSC on the redemption of Class A shares and Class C shares of the Funds listed below during the year ended June 30, 2024:
| Fund | Class A | Class C |
| Balanced Fund | $ - | $ 2,953 |
| International Value Fund | 61 | 45 |
| Large Cap Focused Fund | 934 | 762 |
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| Fund | Class A | Class C |
| Small Company Fund | $945 | $112 |
| Value Fund | 800 | 41 |
INTERFUND TRANSACTIONS
Pursuant to Rule 17a-7 under the 1940 Act, the Funds may engage in purchase and sale transactions with funds that have a common investment adviser (or affiliated investment advisers), common Trustees and/or common Officers. During the year ended June 30, 2024, the Funds did not engage in any Rule 17a-7 transactions.
5. Liquidity
ReFlow Fund LLC - The Funds may participate in the ReFlow Fund LLC liquidity program ("ReFlow"), which is designed to provide an alternative liquidity source for funds experiencing redemptions. In order to pay cash to shareholders who redeem their shares on a given day, a fund typically must hold cash in its portfolio, liquidate portfolio securities, or borrow money. ReFlow provides participating funds with another source of cash by standing ready to purchase shares from a fund up to the amount of the fund's net redemptions on a given day, cumulatively limited to 3% of the outstanding voting shares of a Fund. ReFlow then generally redeems those shares (in cash or in-kind) when the Fund experiences net sales, at the end of a maximum holding period determined by ReFlow, or at other times at ReFlow's discretion. In return for this service, the Fund will pay a fee to ReFlow at a rate determined by a daily auction with other participating mutual funds.
During the year ended June 30, 2024, the following Funds utilized ReFlow. The shares ReFlow subscribed to and redemptions-in-kind were as follows:
| Fund |
Shares ReFlow Subscribed to |
Redemptions-in-kind |
| Large Cap Focused Fund | 3,216,524 | $ 143,206,386 |
| Large Cap Fund | 857,844 | 14,001,283 |
| Large Company Growth Fund | 648,211 | 26,160,798 |
| Small Company Fund | 7,566,910 | 20,220,175 |
Interfund Lending- Pursuant to an Exemptive Order issued by the SEC on March 28, 2017, the Funds, along with certain other funds in the Touchstone Fund Complex, may participate in an interfund lending program. The interfund lending program provides an alternate credit facility that allows the Funds to lend to or borrow from other participating funds in the Touchstone Fund Complex, subject to the conditions of the Exemptive Order. The Funds may not borrow under the facility for leverage purposes and the loans' duration may be no more than 7 days.
During the year ended June 30, 2024, the following Fund participated as a lender in the interfund lending program. The daily average amount loaned, weighted average interest rate and interest income were as follows:
| Fund |
Daily Average Amount Loaned |
Weighted Average Interest Rate |
Interest Income* |
| Large Cap Focused Fund | $ 1,427,989 | 5.87% | $ 85,086 |
| * | Included in Interest in the Statements of Operations. |
During the year ended June 30, 2024, the following Funds participated as borrowers in the interfund lending program. The daily average amount borrowed, weighted average interest rate and interest expense were as follows:
| Fund |
Daily Average Amount Borrowed |
Weighted Average Interest Rate |
Interest Expense* |
| International Value Fund | $ 7,419 | 5.89% | $ 443 |
| Large Company Growth Fund | $ 40,545 | 5.89% | $ 2,421 |
| * | Included in Other expenses in the Statements of Operations. |
6. Federal Tax Information
Federal Income Tax- It is each Fund's policy to continue to comply with the special provisions of the Internal Revenue Code applicable to regulated investment companies. As provided therein, in any fiscal year in which a Fund so qualifies and distributes at least 90% of its investment company taxable income, the Fund (but not the shareholders) will be relieved of federal income tax on the income distributed. It is each Fund's policy to distribute all of its taxable and tax-exempt income and accordingly, no provision for income taxes has been made.
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In order to avoid imposition of the excise tax applicable to regulated investment companies, it is also each Fund's intention to declare and pay as dividends in each calendar year at least 98% of its investment company taxable income (earned during the calendar year) and 98.2% of its net realized capital gains (earned during the twelve months ending October 31) plus undistributed amounts from prior years.
The tax character of distributions paid for the years ended June 30, 2024 and June 30, 2023 were as follows:
| Balanced Fund | Core Municipal Bond Fund | International Value Fund | ||||
|
Year Ended June 30, 2024 |
Year Ended June 30, 2023 |
Year Ended June 30, 2024 |
Year Ended June 30, 2023 |
Year Ended June 30, 2024 |
Year Ended June 30, 2023 |
|
| From ordinary income | $12,011,292 | $9,279,479 | $56,917 | $51,389 | $1,681,923 | $1,589,590 |
| From tax-exempt income | - | - | 1,426,370 | 1,273,902 | - | - |
| Total distributions | $12,011,292 | $9,279,479 | $1,483,287 | $1,325,291 | $1,681,923 | $1,589,590 |
| Large Cap Focused Fund | Large Cap Fund | Large Company Growth Fund | ||||
|
Year Ended June 30, 2024 |
Year Ended June 30, 2023 |
Year Ended June 30, 2024 |
Year Ended June 30, 2023 |
Year Ended June 30, 2024 |
Year Ended June 30, 2023 |
|
| From ordinary income | $20,228,585 | $13,237,610 | $3,999,402 | $1,812,385 | $- | $- |
| From long-term capital gains | 2,633,783 | 26,814,979 | 987,379 | 9,064,294 | 5,206,543 | 4,964,537 |
| Total distributions | $22,862,368 | $40,052,589 | $4,986,781 | $10,876,679 | $5,206,543 | $4,964,537 |
| Small Company Fund | Value Fund | |||
|
Year Ended June 30, 2024 |
Year Ended June 30, 2023 |
Year Ended June 30, 2024 |
Year Ended June 30, 2023 |
|
| From ordinary income | $- | $48,824 | $7,919,186 | $11,174,379 |
| From long-term capital gains | 1,430,467 | 19,728,744 | 4,210,139 | 26,524,891 |
| Total distributions | $1,430,467 | $19,777,568 | $12,129,325 | $37,699,270 |
The following information is computed on a tax basis for each item as of June 30, 2024:
|
Balanced Fund |
Core Municipal Bond Fund |
International Value Fund |
Large Cap Focused Fund |
Large Cap Fund |
|
| Tax cost of portfolio investments | $687,082,873 | $49,509,668 | $102,950,176 | $1,795,966,737 | $161,691,489 |
| Gross unrealized appreciation on investments | 257,860,308 | 459,696 | 6,280,536 | 1,629,960,748 | 122,030,776 |
| Gross unrealized depreciation on investments | (31,641,638) | (1,212,870) | (5,028,093) | (66,489,442) | (3,835,914) |
| Net unrealized appreciation (depreciation) on investments | 226,218,670 | (753,174) | 1,252,443 | 1,563,471,306 | 118,194,862 |
| Gross unrealized appreciation on foreign currency transactions | 22 | - | - | - | - |
| Gross unrealized depreciation on foreign currency transactions and deferred foreign capital gains tax | (50) | - | (10,838) | - | - |
| Net unrealized appreciation (depreciation) on foreign currency transactions and deferred foreign capital gains tax | (28) | - | (10,838) | - | - |
| Capital loss carryforwards | (5,851,503) | (1,781,750) | (63,995,140) | - | - |
| Undistributed ordinary income | 261,507 | - | 677,951 | 10,381,765 | 1,403,313 |
| Undistributed capital gains | - | - | 5,497,943 | 13,863,796 | 2,110,009 |
| Undistributed tax-exempt income | - | 1,635 | - | - | - |
| Other temporary differences | (463,204) | (9,686) | (776) | - | - |
| Accumulated earnings (deficit) | $220,165,442 | $(2,542,975) | $(56,578,417) | $1,587,716,867 | $121,708,184 |
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|
Large Company Growth Fund |
Small Company Fund |
Value Fund |
|
| Tax cost of portfolio investments | $83,677,184 | $825,791,358 | $421,324,569 |
| Gross unrealized appreciation on investments | 72,048,109 | 269,893,771 | 142,120,644 |
| Gross unrealized depreciation on investments | (884,012) | (24,223,622) | (13,916,201) |
| Net unrealized appreciation (depreciation) on investments | 71,164,097 | 245,670,149 | 128,204,443 |
| Gross unrealized depreciation on foreign currency transactions | - | (96) | - |
| Net unrealized appreciation (depreciation) on foreign currency transactions | - | (96) | - |
| Undistributed ordinary income | 427,248 | 4,658,400 | - |
| Undistributed capital gains | 2,188,802 | 25,720,292 | 21,954,317 |
| Accumulated earnings (deficit) | $73,780,147 | $276,048,745 | $150,158,760 |
The difference between the tax cost of portfolio investments and the financial statement cost is primarily due to wash sale loss deferrals, investments in passive foreign investment company ("PFIC") adjustments, callable bonds and defaulted debt.
As of June 30, 2024, the Funds had the following capital loss carryforwards for federal income tax purposes:
| Fund |
No Expiration Short Term |
No Expiration Long Term |
Total |
| Balanced Fund | $ 5,851,503 | $ - | $ 5,851,503 |
| Core Municipal Bond Fund | 1,282,278 | 499,472 | 1,781,750 |
| International Value Fund* | 34,167,354 | 29,827,786 | 63,995,140 |
| * | Future utilization may be limited under current tax laws. |
The capital loss carryforwards may be utilized in future years to offset net realized capital gains, if any, prior to distributing such gains to shareholders.
During the year ended June 30, 2024, the following Fund utilized capital loss carryforwards:
| Fund | Utilized |
| Balanced Fund | $ 661,301 |
| International Value Fund | 8,482,371 |
Under current laws, certain capital losses realized after October 31 and ordinary losses realized after December 31 may be deferred (and certain ordinary losses after October and/or December 31 may be deferred) and treated as occurring on the first day of the following fiscal year. For the year ended June 30, 2024, the Funds did not elect to defer any losses.
The Funds recognize tax benefits or expenses of uncertain tax positions only when the position is more likely than not to be sustained assuming examination by tax authorities. Management of the Funds has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the previous three tax year ends and the interim tax period since then, as applicable) and has concluded that no provision for unrecognized tax benefits or expenses is required in these financial statements and does not expect this to change over the next twelve months. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits in the Statements of Operations. During the period, the Funds did not incur any interest or penalties.
Certain reclassifications, the result of permanent differences between financial statement and income tax reporting requirements, have been made to the components of capital as presented on the Statements of Assets and Liabilities. These reclassifications have no impact on the net assets or NAV per share of the Funds. The following reclassifications, which are primarily attributed to the tax treatment of net operating loss, redemptions in-kind, deemed distributions on shareholder redemptions, differing tax and GAAP distribution requirements, acquired capital loss carryforwards have been made to the following Funds for the year ended June 30, 2024:
| Fund |
Paid-In Capital |
Distributable Earnings |
| International Value Fund | $ 279,263 | $ (279,263) |
| Large Cap Focused Fund | 92,861,590 | (92,861,590) |
| Large Cap Fund | 6,836,030 | (6,836,030) |
| Large Company Growth Fund | 15,440,799 | (15,440,799) |
| Small Company Fund | 11,013,801 | (11,013,801) |
| Value Fund | 561,550 | (561,550) |
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Notes to Financial Statements(Continued)
7. Commitments and Contingencies
The Funds indemnify the Trust's officers and Trustees for certain liabilities that might arise from their performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds.
8. Principal Risks
Risks Associated with Foreign Investments- Certain Funds may invest in the securities of foreign issuers. Investing in securities issued by companies whose principal business activities are outside the U.S. may involve significant risks not present in domestic investments. For example, there is generally less publicly available information about foreign companies, particularly those not subject to the disclosure and reporting requirements of the U.S. securities laws. Foreign issuers are generally not bound by uniform accounting, auditing, and financial reporting requirements and standards of practice comparable to those applicable to domestic issuers. Investments in foreign securities also involve the risk of possible adverse changes in investment or exchange control regulations, expropriation or confiscatory taxation, limitations on the removal of funds or other assets of a Fund, political or financial instability or diplomatic and other developments which could affect such investments. Political and military events, may cause market disruptions. Foreign stock markets, while growing in volume and sophistication, are generally not as developed as those in the U.S., and securities of some foreign issuers (particularly those located in developing countries) may be less liquid and more volatile than securities of comparable U.S. companies. In general, there is less overall governmental supervision and regulation of foreign securities markets, broker-dealers, and issuers than in the U.S.
Risks Associated with Sector Concentration- Certain Funds may invest a high percentage of their assets in specific sectors of the market in order to achieve a potentially greater investment return. As a result, these Funds may be more susceptible to economic, political, and regulatory developments, positive or negative, in a particular sector of the market and may experience increased volatility in the Funds' NAVs and magnified effect on the total return.
Risks Associated with Credit - An issuer may be unable to make timely payments of either principal or interest. This may cause the issuer's securities to decline in value. Credit risk is particularly relevant to those Funds that invest a significant amount of their assets in junk bonds or lower-rated securities.
Risks Associated with Cybersecurity - 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 Cybersecurity risks that could result in losses to a Fund and its shareholders. Cybersecurity 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 Cybersecurity 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. Cybersecurity incidents could cause a Fund, the Adviser, a Sub-Adviser, 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.
Risks Associated with Interest Rate Changes - The price of debt securities is generally linked to the prevailing market interest rates. In general, when interest rates rise, the price of debt securities falls, and when interest rates fall, the price of debt securities rises. The price volatility of a debt security also depends on its maturity. Longer-term securities are generally more volatile, so the longer the average maturity or duration of these securities, the greater their price risk. Duration is a measure of the expected life, taking into account any prepayment or call features of the security, that is used to determine the price sensitivity of the security for a given change in interest rates. Specifically, duration is the change in the value of a fixed-income security that will result from a 1% change in interest rates, and generally is stated in years. For example, as a general rule a 1% rise in interest rates means a 1% fall in value for every year of duration. Maturity, on the other hand, is the date on which a fixed-income security becomes due for payment of principal. An increase in interest rates could negatively impact a Fund's NAV. Recent and potential future changes in government monetary policy may affect interest rates. Over the past several years, the U.S. Federal Reserve has maintained the level of interest rates at or near historic lows. Beginning in March 2022, the Fed began increasing interest rates. It is difficult to accurately predict the pace at which the Fed will increase interest rates any further or begin to decrease interest rates, or the timing, frequency or magnitude of any such increases or decreases, and the evaluation of macro-economic and other conditions could cause a change in approach in the future. Any further increases or decreases generally will cause market interest rates to rise and could cause the value of a Fund's investments, and the Fund's NAV, to decline, potentially suddenly and significantly.
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Notes to Financial Statements(Continued)
Risks Associated with Liquidity- Liquidity risk exists when particular investments are difficult to purchase or sell. This can reduce a Fund's returns because the Fund may be unable to transact at advantageous times or prices, or at all.
Risks Associated with Health Crises- 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 a Fund's performance, resulting in losses to your investment.
Please see the Funds' prospectus and statement of additional information for a complete discussion of these and other risks.
9. Subsequent Events
Subsequent events occurring after the date of this report have been evaluated for potential impact to this report through the date the financial statements were issued. There were no subsequent events that necessitated recognition or disclosure in the Funds' financial statements.
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Report of Independent Registered Public Accounting Firm
To the Shareholders of Touchstone Balanced Fund, Touchstone Core Municipal Bond Fund, Touchstone International Value Fund (formerly Touchstone International Equity Fund), Touchstone Large Cap Focused Fund, Touchstone Large Cap Fund, Touchstone Large Company Growth Fund, Touchstone Small Company Fund and Touchstone Value Fund and the Board of Trustees of Touchstone Strategic Trust
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities of Touchstone Balanced Fund, Touchstone Core Municipal Bond Fund, Touchstone International Value Fund (formerly Touchstone International Equity Fund), Touchstone Large Cap Focused Fund, Touchstone Large Cap Fund, Touchstone Large Company Growth Fund, Touchstone Small Company Fund and Touchstone Value Fund (collectively referred to as the "Funds"), (eight of the funds constituting Touchstone Strategic Trust (the "Trust")), including the portfolios of investments, as of June 30, 2024, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds (eight of the funds constituting Touchstone Strategic Trust) at June 30, 2024, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust's management. Our responsibility is to express an opinion on each of the Funds' financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2024, by correspondence with the custodian, brokers and others. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more Touchstone Investments' investment companies since 1999.
Cincinnati, Ohio
August 16, 2024
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Other Items (Unaudited)
Qualified Dividend Income
Under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the "Act"), the following percentages of ordinary dividends paid during the fiscal year ended June 30, 2024 are designated as "qualified dividend income," as defined in the Act, and are subject to reduced tax rates. The Funds intend to pass through the maximum allowable percentage for Form 1099 Div.
| Balanced Fund | 55.14 % |
| International Value Fund | 100.00 % |
| Large Cap Focused Fund | 100.00 % |
| Large Cap Fund | 100.00 % |
| Large Company Growth Fund | 100.00 % |
| Small Company Fund | 100.00 % |
| Value Fund | 100.00 % |
Dividend Received Deduction
For corporate shareholders, the following ordinary distributions paid during the fiscal year ended June 30, 2024 qualify for the corporate dividends received deduction. The Funds intend to pass through the maximum allowable percentage.
| Balanced Fund | 50.20 % |
| Large Cap Focused Fund | 100.00 % |
| Large Cap Fund | 100.00 % |
| Large Company Growth Fund | 89.28 % |
| Small Company Fund | 100.00 % |
| Value Fund | 100.00 % |
For the fiscal year ended June 30, 2024, the Funds designated long-term capital gains as follows:
| International Value Fund | $ 5,777,206 |
| Large Cap Focused Fund | $ 25,313,753 |
| Large Cap Fund | $ 2,896,796 |
| Large Company Growth Fund | $ 8,740,536 |
| Small Company Fund | $ 26,634,785 |
| Value Fund | $ 22,670,720 |
Of the dividends paid from net investment income during the most-recent fiscal year, 97.26% was designated as exempt interest dividends for federal income tax purposes for the Core Municipal Bond Fund.
Foreign Tax Income & Foreign Tax Credit
The International Value Fund intends to pass through a foreign tax credit to the shareholders. For the fiscal year ended June 30, 2024, the total amount of foreign source income is $3,117,279 or $ 0.46 per share. The total amount of foreign taxes to be paid is $266,151 or $0.04 per share. Shareholder's allocable share of the foreign tax credit will be reported on Form 1099 Div.
Proxy Voting Guidelines and Proxy Voting Records
The Sub-Advisers are responsible for exercising the voting rights associated with the securities purchased and held by the Funds. A description of the policies and procedures that the Sub-Advisers use in fulfilling this responsibility is available as an appendix to the most recent Statement of Additional Information, which can be obtained without charge by calling toll free 1.800.543.0407 or by visiting the Touchstone website at TouchstoneInvestments.com or on the Securities and Exchange Commission's (the "Commission") website at sec.gov. Information regarding how those proxies were voted during the most recent twelve-month period ended June 30, which will be filed by August 31 of that year, is also available without charge by calling toll free 1.800.543.0407 or on the Commission's website at sec.gov.
Quarterly Portfolio Disclosure
Each Fund's holdings as of the end of the third month of every fiscal quarter will be disclosed on Form N-PORT within 60 days of the end of the fiscal quarter. The complete listing of each Fund's portfolio holdings is available on the Commission's website and will be made available to shareholders upon request by calling 1.800.543.0407.
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Other Items (Unaudited) (Continued)
Basis for Board's Approval of New Sub-Advisory Agreement
Touchstone International Value Fund (formerly Touchstone International Equity Fund)
At a meeting of the Board held on February 15, 2024 (the "Meeting"), Touchstone Advisors, Inc. ("Touchstone") proposed the replacement of Touchstone International Value Fund's (the "Fund") (formerly, the Touchstone International Equity Fund), a series of Touchstone Strategic Trust (the "Trust") then-current sub-adviser, Fort Washington Investment Advisors, Inc. ("Fort Washington"), to the Board of Trustees of the Trust (the "Board" or "Trustees"). The Board approved replacing Fort Washington with LSV Asset Management ("LSV" or the "Sub-Adviser"). In connection with this sub-adviser change, the Board also approved, among other things, changes to the Fund's investment goal, principal investment strategies, benchmark and name.
Touchstone provided the Board with various written materials in advance of the Meeting to assist with the Board's consideration of a new sub-advisory agreement (the "Sub-Advisory Agreement") between Touchstone and LSV. Touchstone provided written and oral information stating the basis for its recommendation to engage LSV. The information also included details regarding LSV, including: (1) investment philosophy and investment strategy; (2) investment management services proposed to be provided to the Fund; (3) investment management personnel; (4) operating history, infrastructure and financial condition; (5) proposed sub-advisory fee that would be paid to LSV by Touchstone; and (6) reputation, expertise and resources as an investment adviser. The Board then held a robust discussion of the items noted above reviewing the written materials that the Board received before the Meeting and all other information that the Board received prior to and at the Meeting.
The Board, including the Trustees who are not interested persons of the Fund as defined by the Investment Company Act of 1940, as amended (the "1940 Act") ("Independent Trustees") voting separately, unanimously determined that the approval of the proposed Sub-Advisory Agreement for the Fund would be in the best interests of the Fund and its shareholders. In approving the Sub-Advisory Agreement, the Board considered various factors, among them: (1) the nature, extent and quality of services to be provided to the Fund, including the investment personnel who would be providing such services; (2) LSV's proposed compensation; (3) the performance of the Fund and that of its International Concentrated Value Strategy (the "International Concentrated Value Strategy") which Touchstone proposed that LSV use in managing the Fund; and (4) the terms of the Sub-Advisory Agreement. The Board's consideration of these factors is summarized below. The Independent Trustees were advised by independent legal counsel throughout the process.
Nature, Extent and Quality of Services to be Provided; Investment Personnel.The Board considered information provided by Touchstone regarding the services to be provided by LSV. The Board considered LSV's level of knowledge and investment style. The Board reviewed the experience and credentials of the investment personnel who would be responsible for managing the investment of portfolio securities with respect to the Fund. The Board noted that LSV would utilize the International Concentrated Value Strategy in managing the Fund.
Anticipated Profitability and Potential Economies of Scale.The Board took into consideration the financial condition of LSV and any direct and indirect benefits to be derived by LSV from its relationship with the Fund. In considering the anticipated level of profitability to LSV, the Board noted the proposed contractual undertaking of Touchstone to maintain expense limitations at lower levels for the shares classes of the Fund, that the proposed sub-advisory fee under the Sub-Advisory Agreement would be paid by Touchstone out of the advisory fee that it receives from the Fund, and that the proposed sub-advisory fee was negotiated at arm's length between Touchstone and LSV. As a consequence, the anticipated level of profitability to LSV from its relationship with the Fund was not a substantial factor in the Board's deliberations. For similar reasons, the Board did not consider potential economies of scale in LSV's management of the Fund to be a substantial factor in its consideration.
Proposed Sub-Advisory Fee.The Board considered that the Fund would pay an advisory fee to Touchstone and that Touchstone would pay the proposed sub-advisory fee to LSV out of the advisory fee. The Board compared LSV's proposed sub-advisory fee to the sub-advisory fee paid to Fort Washington. The Trustees noted that although the proposed sub-advisory fee would be higher than the Fund's current sub-advisory fee, the proposed sub-advisory fee had the potential to be below the median of the Foreign Large Value category. The Board considered the resulting lower amount of the advisory fee to be retained by Touchstone and the amount to be paid to LSV with respect to the various services to be provided by Touchstone and LSV. Based upon their review, the Trustees concluded that the Fund's proposed sub-advisory fee was reasonable in light of the services to be provided to the Fund by LSV.
Fund Performance.The Board considered the investment performance of the International Concentrated Value Strategy relative to the Touchstone International Equity Fund, the Fund's then current primary benchmark (the MSCI EAFE Index), the Fund's proposed primary benchmark (the MSCI All Country World Ex-U.S. Index), the MSCI All Country World Value Ex-U.S. Index and the US Fund Foreign Large Blend Category for the one-year, three-years, five-years, ten-years, and since inception periods ended December 31, 2023. The Board noted in particular that since its August 1, 2004 inception, the International Concentrated Value Strategy had outperformed the Fund's proposed primary benchmark (the MSCI All Country World Ex-U.S. Index) and the MSCI All Country World Value Ex-U.S. Index on a gross and net basis over the trailing one-year, three-years, five-years, and ten-years. The Board noted that the International Concentrated Value Strategy also had outperformed the Touchstone
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Other Items (Unaudited) (Continued)
International Equity Fund on a gross basis over the trailing one-year, three-years, five-years, and ten-years and on a net basis over the trailing one-year, three-years, and ten-years.
Conclusion.The Board reached the following conclusions regarding the Sub-Advisory Agreement: (1) LSV is qualified to manage the Fund's assets in accordance with the Fund's new investment goal and principal investment strategies; (2) LSV maintains an appropriate compliance program; (3) the Fund's proposed sub-advisory fee is reasonable in relation to the services to be provided to the Fund by LSV; and (4) LSV's proposed investment strategies are appropriate for managing the Fund. In considering the approval of the Sub-Advisory Agreement, the Board, including the Independent Trustees, did not identify any single factor as controlling, and each Trustee attributed different weights to the various factors. Based on its conclusions, the Board, including a majority of the Independent Trustees, determined that approval of the Sub-Advisory Agreement was in the best interests of the Fund and its shareholders.
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PRIVACY PROTECTION POLICY
We Respect Your Privacy
Thank you for your decision to invest with us. Touchstone and its affiliates have always placed a high value on the trust and confidence our clients place in us. We believe that confidence must be earned and validated through time. In today's world, when technology allows the sharing of information at light speeds, trust must be reinforced by our sincere pledge to take the steps necessary to ensure that the information you share with us is treated with respect and confidentiality.
Our Pledge to Our Clients
• We collect only the information we need to service your account and administer our business.
• We are committed to keeping your information confidential and we place strict limits and controls on the use and sharing of your information.
• We make every effort to ensure the accuracy of your information.
We Collect the Following Nonpublic Personal Information About You:
• Information we receive from you on or in applications or other forms, correspondence, or conversations, including, but not limited to, your name, address, phone number, social security number, assets, income and date of birth; and
• Information about your transactions with us, our affiliates, or others, including, but not limited to, your account number and balance, payment history, parties to transactions, cost basis information, and other financial information.
Categories of Information We Disclose and Parties to Whom We Disclose
We do not disclose any nonpublic personal information about our current or former clients to nonaffiliated third parties, except as required or permitted by law.
We Place Strict Limits and Controls on the Use and Sharing of Your Information
• We restrict access to nonpublic personal information about you to authorized employees who need the information to administer your business.
• We maintain physical, electronic and procedural safeguards that comply with federal standards to protect this information.
• We do not disclose any nonpublic personal information about our current or former clients to anyone, except as required or permitted by law or as described in this document.
• We will not sell your personal information to anyone.
We May Provide Information to Service Your Account
Sometimes it is necessary to provide information about you to various companies such as transfer agents, custodians and broker-dealers to facilitate the servicing of your account. These organizations have a legitimate business need to see some of your personal information in order for us to provide service to you. We may disclose to these various companies the information that we collect as described above. We require that these companies, including our own subsidiaries and affiliates, strictly maintain the confidentiality of this information and abide by all applicable laws. We do not permit these companies to sell the information for their own purposes, and we never sell our customer information.
This policy is applicable to the following affiliated companies: Touchstone Funds Group Trust, Touchstone Strategic Trust, Touchstone Variable Series Trust and Touchstone ETF Trust.
The Privacy Protection Policy is not part of the Annual Report.
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Touchstone Investments
Distributor
Touchstone Securities, Inc.*
303 Broadway
Cincinnati, Ohio 45202-4203
800.638.8194
www.touchstoneinvestments.com
303 Broadway
Cincinnati, Ohio 45202-4203
800.638.8194
www.touchstoneinvestments.com
Investment Adviser
Touchstone Advisors, Inc.*
303 Broadway
Cincinnati, Ohio 45202-4203
303 Broadway
Cincinnati, Ohio 45202-4203
Transfer Agent
BNY Mellon Investment Servicing (US) Inc.
P.O. Box 534467
Pittsburgh, PA 15253-4467
P.O. Box 534467
Pittsburgh, PA 15253-4467
Shareholder Service
800.543.0407
* A Member of Western & Southern Financial Group
TSF-54BB-TST-AR-2406
Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
Not applicable.
Item 9. Proxy Disclosures for Open-End Management Investment Companies.
Not applicable.
Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.
The information is included as part of the material filed under Item 7 of this Form.
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
Not applicable.
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 13. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 15. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's board of trustees, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.
Item 16. Controls and Procedures.
| (a) | The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the 1940 Act (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
| (b) | There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. |
Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 18. Recovery of Erroneously Awarded Compensation.
Not Applicable.
Item 19. Exhibits.
| (a)(1) | The registrant's Code of Ethics is attached hereto. |
| (a)(2) | Not applicable. |
| (a)(3) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
| (a)(3)(1) | There were no written solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons. |
| (a)(3)(2) | There was no change in the Registrant's independent public accountant during the period covered by the report. |
| (b) | Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| (Registrant) | Touchstone Strategic Trust |
| By (Signature and Title)* | /s/ E. Blake Moore, Jr. | |
| E. Blake Moore, Jr., President | ||
| (principal executive officer) |
| Date: | 09/03/2024 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By (Signature and Title)* | /s/ E. Blake Moore, Jr. | |
| E. Blake Moore, Jr., President | ||
| (principal executive officer) |
| Date: | 09/03/2024 |
| By (Signature and Title)* | /s/ Terrie A. Wiedenheft | |
| Terrie A. Wiedenheft, Controller and Treasurer | ||
| (principal financial officer) |
| Date: | 09/03/2024 |
* Print the name and title of each signing officer under his or her signature.