497K 1 touchstonevaluefundsummary.htm 497K Document
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Summary Prospectus
Touchstone Value Fund
October 30, 2018


Class A Ticker: TVLAX Class C Ticker: TVLCX
Class Y Ticker: TVLYX Institutional Class: TVLIX

Before you invest, you may want to review the Fund’s prospectus, which contains information about the Fund and its risks. The Fund’s prospectus and Statement of Additional Information, both dated October 30, 2018, as amended from time to time, are incorporated by reference into this summary prospectus. For free paper or electronic copies of the Fund’s prospectus and other information about the Fund, go to TouchstoneInvestments.com/Resources, call 1.800.543.0407, or ask any financial advisor, bank, or broker-dealer who offers shares of the Fund.

TOUCHSTONE VALUE FUND SUMMARY
 
The Fund’s Investment Goal
 
The Touchstone Value Fund (the “Fund”) seeks to provide investors with long-term capital growth.
 
The Fund’s Fees and Expenses
 
This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund.  You may qualify for sales charge discounts for Class A shares of Touchstone equity funds and Touchstone fixed income funds if you and your family invest, or agree to invest in the future, at least $25,000 or $50,000, respectively, in such Touchstone funds.  More information about these and other discounts is available from your financial professional, in the section entitled “Choosing a Class of Shares” in the Fund’s prospectus and Statement of Additional Information ("SAI") on page 80 and 87, respectively, and in Appendix A–Intermediary-Specific Sales Charge Waivers and Discounts to the Fund's prospectus.

Touchstone Value Fund Summary

 
Class A
 
Class C
 
Class Y
 
Institutional
Class
Shareholder Fees (fees paid directly from your investment)
 

 
 

 
 

 
 

Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)
5.00
 %
 
None

 
None

 
None

Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or the amount redeemed, whichever is less)
None

 
1.00
 %
 
None

 
None

Wire Redemption Fee
Up to $15

 
Up to $15

 
Up to $15

 
Up to $15

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
 

 
 

 
 

 
 

Management Fees
0.65
 %
 
0.65
 %
 
0.65
 %
 
0.65
 %
Distribution and/or Shareholder Service (12b-1) Fees
0.25
 %
 
1.00
 %
 
None

 
None

Other Expenses
0.36
 %
 
0.56
 %
 
0.30
 %
 
0.22
 %
Total Annual Fund Operating Expenses
1.26
 %
 
2.21
 %
 
0.95
 %
 
0.87
 %
Fee Waiver or Expense Reimbursement(1)
(0.18
)%
 
(0.38
)%
 
(0.12
)%
 
(0.19
)%
Total Annual Fund Operating Expenses After Fee Waiver or Expense Reimbursement(1)
1.08
 %
 
1.83
 %
 
0.83
 %
(2) 
0.68
 %
___________________________________________
(1) Touchstone Advisors, Inc. (the "Advisor" or "Touchstone Advisors") and Touchstone Strategic Trust (the “Trust”) have entered into a contractual expense limitation agreement whereby Touchstone Advisors will waive a portion of its fees or reimburse certain Fund expenses (excluding dividend and interest expenses relating to short sales; interest; taxes; brokerage commissions and other transaction costs; portfolio transaction and investment related expenses, including expenses associated with the Fund's liquidity providers; other expenditures which are capitalized in accordance with U.S. generally accepted accounting principles; the cost of “Acquired Fund Fees and Expenses,” if any; and other extraordinary expenses not incurred in the ordinary course of business) in order to limit annual Fund operating expenses to 1.08%, 1.83%, 0.83%, and 0.68% of average daily net assets for Classes A, C, Y, and Institutional Class shares, respectively.  This contractual expense limitation is effective through October 29, 2019, but can be terminated by a vote of the Board of Trustees of the Trust (the “Board”) if it deems the termination to be beneficial to the Fund’s shareholders. The terms of the contractual expense limitation agreement provide that Touchstone Advisors is entitled to recoup, subject to approval by the Board, such amounts waived or reimbursed for a period of up to three years from the date on which the Advisor reduced its compensation or assumed expenses for the Fund. The Fund will make repayments to the Advisor only if such repayment does not cause the annual Fund operating expenses (after the repayment is taken into account) to exceed both (1) the expense cap in place when such amounts were waived or reimbursed and (2) the Fund’s current expense limitation.
(2)Total Annual Fund Operating Expenses After Fee Waiver or Expense Reimbursement has been restated to reflect the Fund’s current contractual expense limits and will differ from the ratio of net expenses to average net assets that is included in the Fund’s annual report for the fiscal year ended June 30, 2018.

Example. This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then, except as indicated, redeem all of your shares at the end of those periods.  The example also assumes that your investment has a 5% return each year, that the Fund’s operating expenses remain the same and that all fee waivers or expense limits for the Fund will expire after one year.  Although your actual costs may be higher or lower, based on these assumptions your costs would be:

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Touchstone Value Fund Summary

 
 
Assuming Redemption at End of Period
 
Assuming No Redemption
 
Class A
 
Class C
 
Class Y
 
Institutional
Class
 
Class C
1 Year
$
605

 
$
286

 
$
85

 
$
69

 
$
186

3 Years
$
863

 
$
655

 
$
291

 
$
259

 
$
655

5 Years
$
1,141

 
$
1,150

 
$
514

 
$
464

 
$
1,150

10 Years
$
1,931

 
$
2,515

 
$
1,155

 
$
1,055

 
$
2,515

 
Portfolio Turnover.  The Fund pays transaction costs, such as brokerage commissions, when it buys and sells securities (or “turns over” its portfolio).  A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account.  These costs, which are not reflected in total annual Fund operating expenses or in the example, affect the Fund’s performance.  During the most recent fiscal year, the Fund’s portfolio turnover rate was 24% of the average value of its portfolio.
 
The Fund’s Principal Investment Strategies
 
The Fund normally invests in equity securities of large- and mid-cap companies (generally, companies with market capitalizations of approximately $2.5 billion or higher) that the Fund’s sub-advisor, Barrow, Hanley, Mewhinney & Strauss, LLC (“Barrow Hanley”) believes are undervalued. As part of this strategy, the Fund may invest up to 15% of its assets in foreign equity securities. Equity securities include common and preferred stocks and depositary receipts.  Barrow Hanley uses traditional methods of stock selection — research and analysis — to identify securities it believes are undervalued and searches for companies that have price to earnings and price to book ratios below the market and that have above average dividend yields.
 
Although the Fund may also focus its investments within certain sectors, Barrow Hanley uses risk management tools to prevent over-exposure to particular market segments. Barrow Hanley is a “bottom-up” value manager, meaning it analyzes the fundamentals of companies one at a time rather than focusing on broader market themes.
 
Barrow Hanley generally considers selling a security when it reaches fair value estimate, when earnings forecasts do not appear to justify the current price, when there has been or there is an expectation of an adverse change in the company’s fundamentals, or when other investment opportunities appear more attractive.
 
The Fund’s Principal Risks
 
The Fund’s share price will fluctuate. You could lose money on your investment in the Fund and the Fund could also return less than other investments. Investments in the Fund are not bank guaranteed, are not deposits, and are not insured by the FDIC or any other federal government agency.

As with any mutual fund, there is no guarantee that the Fund will achieve its investment goal.  You can find more information about the Fund’s investments and risks under the “Principal Investment Strategies and Risks” section of the Fund’s prospectus. The Fund is subject to the principal risks summarized below.

Equity Securities Risk: The Fund is subject to the risk that stock prices will fall over short or extended periods of time. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by these companies may decline in response to such developments, which could result in a decline in the value of the Fund’s shares.

•
Large-Cap Risk: Large-cap companies may be unable to respond quickly to new competitive challenges, such as changes in technology and consumer tastes, and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion.

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Touchstone Value Fund Summary

 
•
Mid-Cap Risk:  Stocks of mid-sized companies may be subject to more abrupt or erratic market movements than stocks of larger, more established companies. Mid-sized companies may have limited product lines or financial resources, and may be dependent upon a particular niche of the market.

•
Preferred Stock Risk: In the event an issuer is liquidated or declares bankruptcy, the claims of owners of bonds take precedence over the claims of those who own preferred and common stock. If interest rates rise, the fixed dividend on preferred stocks may be less attractive, causing the price of preferred stocks to decline.
 
Foreign Securities Risk: Investing in foreign securities poses additional risks since political and economic events unique in a country or region will affect those markets and their issuers, while such events may not necessarily affect the U.S. economy or issuers located in the United States. In addition, investments in foreign securities are generally denominated in foreign currency. As a result, changes in the value of those currencies compared to the U.S. dollar may affect (positively or negatively) the value of the Fund's investments. There are also risks associated with foreign accounting standards, government regulation, market information, and clearance and settlement procedures. Foreign markets may be less liquid and more volatile than U.S. markets and offer less protection to investors.

•
Depositary Receipts Risk: Foreign receipts, which include ADRs, Global Depositary Receipts, and European Depositary Receipts, are securities that evidence ownership interests in a security or a pool of securities issued by a foreign issuer. The risks of depositary receipts include many risks associated with investing directly in foreign securities.
 
Management Risk: In managing the Fund’s portfolio, the Advisor engages one or more sub-advisors to make investment decisions for a portion of or the entire portfolio. There is a risk that the Advisor may be unable to identify and retain sub-advisors who achieve superior investment returns relative to other similar sub-advisors.
 
Sector Focus Risk: A fund that focuses its investments in the securities of a particular market sector is subject to the risk that adverse circumstances will have a greater impact on the fund than a fund that does not focus its investments in a particular sector.

Value Investing Risk: Value investing presents the risk that the Fund’s security holdings may never reach their full market value because the market fails to recognize what the portfolio managers consider the true business value or because the portfolio managers have misjudged those values.

The Fund’s Performance
 
Before the Fund commenced operations, the assets and liabilities of the Old Mutual Barrow Hanley Value Fund (the “Predecessor Fund”) were transferred to the Fund in a tax-free reorganization (the “Reorganization”).  The Reorganization occurred on April 16, 2012. As a result of the Reorganization, the Fund assumed the performance and accounting history of the Predecessor Fund prior to the date of the Reorganization.

The bar chart and performance table below illustrate some indication of the risks and volatility of an investment in the Fund by showing changes in the Fund’s performance from calendar year to calendar year and by showing how the Fund’s average annual total returns for one year, five years, and ten years compare with the Russell 1000® Value Index. The bar chart does not reflect any sales charges, which would reduce your return. The performance table does reflect any applicable sales charges. Past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. More recent performance information is available at no cost by visiting TouchstoneInvestments.com or by calling 1.800.543.0407.
 

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Touchstone Value Fund Summary

Touchstone Value Fund — Class A Shares Total Return as of December 31
chart-c726b07ac22647f5b2e.jpg
Best Quarter: Second Quarter 2009 17.93%
 
Worst Quarter: Fourth Quarter 2008 (19.65)%
 
The return of the Fund’s Class A shares for the nine months ended September 30, 2018 was 7.52%.

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Your actual after-tax returns may differ from those shown and depend on your tax situation. The after-tax returns do not apply to shares held in an individual retirement account ("IRA"), 401(k), or other tax-advantaged account. The after-tax returns shown in the table are for Class A shares only. The after-tax returns for other classes of shares offered by the Fund will differ from the Class A shares' after-tax returns.
 
The inception dates of Class A shares, Class C shares, Class Y shares, and Institutional Class shares were: July 31, 2003, April 12, 2012, September 10, 1998 and December 20, 2006, respectively. Class C shares’ performance was calculated using the historical performance of Class Y shares for the periods prior to April 12, 2012. Performance for these periods has been restated to reflect the impact of the fees and expenses applicable to Class C shares.
















5
Touchstone Value Fund Summary

Average Annual Total Returns
For the Periods Ended December 31, 2017
 
1 Year
 
5 Years
 
10 Years
 
 

 
 

 
 

Touchstone Value Fund - Class A
 

 
 

 
 

Return Before Taxes
7.34
%
 
11.52
%
 
6.18
%
Return After Taxes on Distributions
5.15
%
 
10.18
%
 
5.13
%
Return After Taxes on Distributions and Sale of Fund Shares
5.90
%
 
8.98
%
 
4.64
%
Touchstone Value Fund - Class C
 
 
 
 
 
Return Before Taxes
12.03
%
 
11.99
%
 
6.16
%
Touchstone Value Fund - Class Y
 
 
 
 
 
Return Before Taxes
14.30
%
 
13.15
%
 
7.09
%
Touchstone Value Fund - Institutional Class
 
 
 
 
 
Return Before Taxes
14.38
%
 
13.28
%
 
7.22
%
Russell 1000® Value Index (reflects no deduction for fees, expenses or taxes)
13.66
%
 
14.04
%
 
7.10
%
 
The Fund’s Management
 
Investment Advisor
 
Touchstone Advisors, Inc.
 
Sub-Advisor
 
Portfolio Managers
 
Investment Experience  with the Fund
 
Primary Title with
Sub-Advisor
Barrow, Hanley, Mewhinney & Strauss, LLC
 
Mark Giambrone
 
Since 2012
 
Portfolio Manager, Managing Director
 
 
Lewis Ropp
 
Since 2014
 
Portfolio Manager, Managing Director
 
 
David W. Ganucheau, CFA
 
Since 2015
 
Portfolio Manager, Managing Director
 
 
Jeff G. Fahrenbruch, CFA
 
Since 2015
 
Portfolio Manager, Managing Director





6
Touchstone Value Fund Summary

Buying and Selling Fund Shares

Minimum Investment Requirements 
 
 
Classes A, C, and Y
 
 
Initial
Investment
 
Additional
Investment
Regular Account
 
$
2,500

 
$
50

Retirement Account or Custodial Account under the Uniform Gifts/Transfers to Minors Act
 
$
1,000

 
$
50

Investments through the Automatic Investment Plan
 
$
100

 
$
50

 
 
Institutional Class
 
 
Initial
Investment
 
Additional
Investment
Regular Account
 
$
500,000

 
$
50

 
Fund shares may be purchased and sold on days that the New York Stock Exchange is open for trading. Existing Class A, Class C and Institutional Class shareholders may purchase shares directly through Touchstone Funds via the transfer agent, BNY Mellon, or through their financial intermediary. Class Y shares are available only through financial intermediaries who have appropriate selling agreements in place with Touchstone Securities. Shares may be purchased or sold by writing to Touchstone Securities at P.O. Box 9878, Providence, Rhode Island 02940, calling 1.800.543.0407, or visiting the Touchstone Funds’ website: TouchstoneInvestments.com. You may only sell shares over the telephone or via the Internet if the value of the shares sold is less than or equal to $100,000. Shares held in IRA accounts and qualified retirement plans cannot be sold via the Internet. If your shares are held by a processing organization or financial intermediary you will need to follow its purchase and redemption procedures. For more information about buying and selling shares, see the Investing with Touchstone section of the Fund’s prospectus or call 1.800.543.0407.
 
Tax Information
 
The Fund intends to make distributions that may be taxed as ordinary income or capital gains except when shares are held through a tax-advantaged account, such as a 401(k) plan or an IRA. Withdrawals from a tax-advantaged account, however, may be taxable.

Financial Intermediary Compensation
 
If you purchase shares in the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services.  These payments may create a conflict of interest by influencing the broker-dealer or other financial intermediary and your salesperson to recommend the Fund over another investment.  Ask your salesperson or visit your financial intermediary’s website for more information.









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Touchstone Value Fund Summary















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