N-CSR 1 tm2228459d4_ncsr.htm N-CSR

 

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

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

 

Investment Company Act file number                811-08104                

 

Touchstone Funds Group Trust

(Exact name of registrant as specified in charter)

 

303 Broadway, Suite 1100
Cincinnati, Ohio 45202-4203

(Address of principal executive offices) (Zip code)

 

E. Blake Moore Jr.

303 Broadway, Suite 1100
Cincinnati, Ohio 45202-4203

(Name and address of agent for service)

 

Registrant's telephone number, including area code: 800-638-8194

 

Date of fiscal year end: September 30

 

Date of reporting period: September 30, 2022

 

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

 

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

 

 

 

Item 1. Reports to Stockholders.

 

(a)The Report to Shareholders is attached herewith.

 

 

 

 

September 30, 2022
Annual Report
Touchstone Funds Group Trust
Touchstone Active Bond Fund
Touchstone Anti-Benchmark® International Core Equity Fund
Touchstone Ares Credit Opportunities Fund
(formerly Touchstone Credit Opportunities Fund)
Touchstone Dividend Equity Fund
Touchstone High Yield Fund
Touchstone Impact Bond Fund
Touchstone International ESG Equity Fund
Touchstone Mid Cap Fund
Touchstone Mid Cap Value Fund
Touchstone Sands Capital Select Growth Fund
Touchstone Small Cap Fund
Touchstone Small Cap Value Fund
Touchstone Ultra Short Duration Fixed Income Fund

Table of Contents
  Page
Letter from the President 3
Management's Discussion of Fund Performance (Unaudited) 4-39
Tabular Presentation of Portfolios of Investments (Unaudited) 40-43
Portfolios of Investments:  
Touchstone Active Bond Fund 44-50
Touchstone Anti-Benchmark® International Core Equity Fund 51-54
Touchstone Ares Credit Opportunities Fund (formerly Touchstone Credit Opportunities Fund) 55-61
Touchstone Dividend Equity Fund 62-63
Touchstone High Yield Fund 64-66
Touchstone Impact Bond Fund 67-71
Touchstone International ESG Equity Fund 72-73
Touchstone Mid Cap Fund 74
Touchstone Mid Cap Value Fund 75
Touchstone Sands Capital Select Growth Fund 76
Touchstone Small Cap Fund 77
Touchstone Small Cap Value Fund 78-79
Touchstone Ultra Short Duration Fixed Income Fund 80-84
Statements of Assets and Liabilities 86-89
Statements of Operations 90-91
Statements of Changes in Net Assets 92-95
Statements of Changes in Net Assets - Capital Stock Activity 96-102
Financial Highlights 103-115
Notes to Financial Statements 116-135
Report of Independent Registered Public Accounting Firm 136-137
Other Items (Unaudited) 138-142
Management of the Trust (Unaudited) 143-145
Privacy Protection Policy 147
This report identifies the Funds' investments on September 30, 2022. 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

Letter from the President
Dear Shareholder:
We are pleased to provide you with the Touchstone Funds Group Trust Annual Report. Inside you will find key financial information, as well as manager commentaries for the Funds, for the twelve months ended September 30, 2022.
Capital markets offered few safe havens over the prior 12-months as investor sentiment turned progressively negative during the final three quarters of the 12-month period.  There were multiple reasons for declining asset prices including rising inflationary pressures, higher commodity costs, supply chain challenges, Russia’s invasion of Ukraine and U.S. Federal Open Market Committee actions regarding rate increases.  By the spring of 2022, the impact of Russia’s Ukrainian invasion had seemingly been priced into the market and investor concern had shifted back to U.S. Federal Reserve Board (“Fed”) rate policy and the potential for an economic recession either in the second half of this year or 2023.  These recessionary concerns were exacerbated by negative growth in U.S. gross domestic product reported for first quarter 2022 and inflationary pressures, which continued throughout the first three quarters of 2022 due to healthy consumer demand along with supply constraints related to China’s economic troubles and the ongoing Russian war. Faced with inflationary pressures, the Fed’s response has been to implement a series of unprecedented rate hikes this year, the first since 2018, with two hikes of 75 basis points coming in the third quarter alone. Outside the U.S., inflationary issues persisted as well, primarily in the developed markets of Western Europe as Germany, Italy and France felt the impact of supply chain challenges and slowing natural gas and oil imports from Russia following their invasion of Ukraine.  The U.S. dollar strengthened as geopolitical risks, higher U.S. interest rates compared to developed markets, and relatively less attractive economic outlooks outside the U.S. attracted foreign capital.  Broadly, both developing and developed markets were negatively impacted by the strong U.S. dollar.   
Given the aforementioned macroeconomic backdrop during the 12-month period, geopolitical concerns and diminishing expectations for the Fed’s ability to achieve a “soft landing”, it is not surprising that equity markets posted significantly negative returns.  The S&P 500® Index moved into Bear Market territory by declining over 20 percent from its January 2022 peak to the end of September 2022.  From a market capitalization perspective, small capitalization stocks underperformed mid-caps, while mid-caps underperformed large-caps.  Value equities outperformed Growth equities across the capitalization spectrum as the rise in interest rates was a headwind for stocks trading at higher valuation multiples.  Outside the U.S., emerging markets lagged the U.S. large cap market and the non-U.S. developed equity markets due primarily to the disruption in China stemming from the country’s zero-COVID policy. 
Within U.S. fixed income markets, persistent inflation and aggressive Fed rate moves pushed the Treasury yield curve higher across all relevant maturities but saw the largest increase in the three month to five-year portion of the curve.  These moves in yield resulted in a decline for the investment grade universe.  Municipal bonds were also impacted by the rising yield curve.  In the U.S. credit markets, the looming concerns of inflation and higher future financing rates weighed on the corporate debt space as both investment grade and non-investment grade corporate bond spreads widened.  The leveraged loan market was more defensive than the high yield bond market as leveraged loans were priced at floating interest rates rather than fixed interest rates.
We are reminded especially in periods like these of the importance of the steady hands of financial professionals, trust in your investment strategy, and the risks of trying to time the market. Furthermore, we believe that environments that are more volatile create more opportunity for active managers to add value, especially those that are Distinctively Active.  We greatly value your continued support.  Thank you for including Touchstone as part of your investment plan.
Sincerely,
E. Blake Moore Jr.
President
Touchstone Funds Group Trust
3

Management's Discussion of Fund Performance (Unaudited)
Touchstone Active Bond Fund
Sub-Advised by Fort Washington Investment Advisors, Inc.
Investment Philosophy
The Touchstone Active Bond Fund (the “Fund”) seeks to provide as high a level of current income as is consistent with the preservation of capital. Capital appreciation is a secondary goal. In deciding what securities to buy and sell for the Fund, the overall investment opportunities and risks in different sectors of the debt securities market are analyzed by focusing on maximizing total return and reducing volatility of the Fund’s portfolio. A disciplined sector allocation process is followed in order to build a broadly diversified portfolio of bonds.
Fund Performance
The Touchstone Active Bond Fund (Class A Shares) underperformed its benchmark, the Bloomberg U.S. Aggregate Bond Index, for the 12-month period ending September 30, 2022. The Fund’s total return was -16.52 percent (calculated excluding the maximum sales charge) while the total return of the benchmark was -14.60 percent.
Market Environment
Factors influencing markets for the 12-month period varied from positive effects from continued relaxing of pandemic restrictions, to the negative impacts from military conflict in Ukraine, persistently high inflation, and tighter central bank policy around the world.  Global conflict and sharp monetary tightening were most impactful, as risk assets (equities, credit spreads) generally performed poorly and interest rates reached multi-year highs.
At the end of 2021 and into 2022, expectations for the global economy were strong.  Consensus estimates for U.S. gross domestic product growth were nearly 4% at the beginning of 2022.  Pandemic restrictions were being lifted and an economic rebound was focused on the unleashing of pent-up demand for activities that had been restricted for the previous two years.  Subsequent events have tempered expectations, with the most recent estimates of 2022 economic growth declining to 1.5%.
The Russian invasion of Ukraine in early 2022 was a negative for markets, initially fearing that the conflict would spread to greater Europe.  For U.S. markets, the most direct impact of the conflict was an increase in commodity prices, fueling higher energy and food costs for consumers.  As fears subsided that the conflict would expand beyond the Ukrainian border, markets calmed, but the effects of higher commodity prices persisted.  Europe is facing winter with reduced natural gas supplies from Russia, and U.S. inflation increased as these higher prices were passed through to consumers.
For the past year, inflation has been well above the U.S. Federal Reserve Board’s (“Fed”) 2% target, averaging nearly 6% in 2022.  Hopeful that inflation would drift towards 2% as pandemic effects subsided, the Fed and markets were initially sanguine regarding the amount of rate increases that would be needed over the coming months.  As the inflation data remained high and increasingly persistent, expectations of Fed rate hikes increased substantially.  Through the end of third quarter 2022, the Fed has raised interest rates by 3% and is expected to reach 4.5% in early 2023.  U.S. Treasury yields have risen sharply, reaching the highest levels since the 2008 financial crisis and inverting yield curves to levels not seen since the 1980s.  For many bond market indices, 2022 is the worst year on record amid substantial price declines.
Increasingly tight monetary policy and slowing growth have been strong headwinds for risk assets.  Equities are firmly in bear market territory, down more than 20% from highs, and credit spreads are nearing the widest levels of the 12 month period. Recession risk has increased and markets are facing a very uncertain and likely volatile period ahead. Looking ahead for the U.S.economy, growth is slowing and inflation remains too high, but there are signals that inflation may soften over the next several months.
Regarding growth, the most positive sector of the U.S. economy is the consumer.  Spending will be supported by a job market that has remained strong in spite of weakness in other economic indicators.  However, as tight financial conditions lead to slower growth, a weaker labor market can be expected.  Job openings are plentiful, especially compared to the number of unemployed people, but recent reports have indicated somewhat better balance as labor force participation rose and job openings have leveled off.  Wage growth, while still at the higher end of recent ranges, is also showing signs of moving to lower levels.  The relative strength of the consumer increases the chances of a soft landing, but the strength has also been a source of unease for policymakers who are focused on the potential impact on inflation.
The most direct impact of higher interest rates can be seen in the housing market, which can be expected to detract from growth over coming quarters.  Affordability has fallen dramatically as rates have risen, and all indicators of the housing market have declined over the past several months.  Along with contributing to slower growth, housing prices are likely to level off as demand eases, the effects of which will filter through the various measures of inflation over the next several months.
4

Management's Discussion of Fund Performance (Unaudited) (Continued)
Business spending, while weaker in the third quarter 2022, has been a consistent contributor to economic growth.  Recent data indicates softening, especially in the manufacturing sectors, as global growth slows and inventories rise.  One positive development is that many of the supply chain issues that have impacted this sector since the pandemic are showing improvement.  Price pressures have declined as a result, which will help to soften the overall level of inflation.
Inflation data and monetary policy will remain the biggest driver of markets. Markets were hopeful that inflation was slowing after the July Consumer Price Index report was below expectations, but those hopes were dashed the following month as the August report was above expectations and broad-based.  The Fed responded aggressively with the second consecutive 0.75% rate hike and recent Fed communications have emphasized the resolve to control inflation even if doing so results in a recession.  Slower growth, lower commodity prices, and stable/lower inflation expectations will likely lead to a lower pace of inflation over coming months, but Fed policy will pivot only when inflation is on a decisive turn lower, which is unlikely until sometime in 2023.
Credit spreads across sectors and quality ranges are close to widest levels of the year, generally in the 70 percentile relative to history.  While relatively wide, credit spreads still are not indicating significant concern of an imminent recession.  If the economy slows more/faster than expected, credit spreads are likely to widen further.  However, if a soft landing is achieved or a recession is shallow, the current level of spreads is attractive.  As a result, we believe current valuations support a modest overweight to risk in portfolios.
Outlook and Conclusion
From an absolute return perspective, the return prospects for fixed income are the most attractive in the past decade.  Entering 2021, market yields were very low and offered little cushion against price declines from rising interest rates.  At higher interest rate levels, the yield offered by fixed income can now offer a buffer against price changes and, in the long-term, generate returns more consistent with historical averages for fixed income.
Relative to the benchmark, the wider level of credit spreads is the greatest opportunity for the Fund going forward. The Fund is positioned to potentially benefit from stable/tighter credit spreads.
We believe the biggest concern for markets and the Fund are related to inflation and monetary policy.  The Fed has tightened aggressively to combat inflation well above target, which has remained more persistent than expected.  Tighter Fed policy has led to the tightest level of financial conditions since the onset of the pandemic, which will continue to press economic growth lower.  To control inflation, the Fed has indicated it will continue to raise rates even if it causes a recession.  For the Fund, a steeper economic decline would likely lead to wider credit spreads, a negative for the Fund’s positioning.  However, the Fund will be in a position to increase risk allocation if the team thinks that is appropriate.
We believe the Fund is positioned to perform well in a stable/improving environment for risk assets. We believe valuations have adjusted appropriately given the macro environment and potential risks.  If conditions improve, we believe the Fund is positioned well to benefit.  If volatility continues and economic growth deteriorates further, the Fund is also in a position to add positions opportunistically if risk assets experience weakness.  Additionally, we believe positive security selection can benefit in many different market environments.
We are targeting an overweight to spread risk representing 50% of the risk budget. This overweight is supported by 1) our view that the resilience of the U.S. consumer enables the economy to withstand tighter Fed policy, with any decline in activity likely to be shallow, and 2) valuations that are generally compelling and above the 70 percentile relative to history.
Sector positioning reflects our overall positive outlook on valuations, attractive relative value, and opportunities within each sector.  Sector allocations were generally unchanged for the period. The strategy maintained an overweight to Investment Grade Credit (“IG”).  Within IG, risk was reduced slightly into strength in the period.  Preferred securities were reduced based on relative value to BBBs.  The team is finding value in non-cyclical sectors such as Utilities, Health Care, and Food/Beverage while selectively adding financials and BBB cyclicals such as Technology and Chemicals.
Securitized Products remain an overweight exposure relative to the benchmark.  Within the sector, the team slightly increased the weight to Agency Mortgage Backed Securities as spreads widened with higher rates.  High-quality Commercial Mortgage Backed Securities remains an attractive relative value opportunity to other credit sectors. We continue to favor non-agency exposure and are positioned appropriately with overweight exposure to Asset Backed Securities, Commercial Mortgage-Backed Securities, and Collateralized Loan Obligations. The overweight allocation to Emerging Markets Debt (EMD) was generally unchanged during the period.  Valuations are attractive, especially in the High Yield portion of the market.  Emerging Markets High Yield spreads finished the period in their widest decile relative to history.  Latin America remains the largest regional exposure within the sector.
We are positioning the Fund with a slight long duration bias, focused in the intermediate part of the curve.  We believe the current level of rates reflects an appropriate amount of Fed tightening, and that the growth and inflation outlook will bias interest rates lower over the next several months.
5

Management's Discussion of Fund Performance (Unaudited) (Continued)
Comparison of the Change in Value of a $10,000 Investment in the Touchstone Active Bond Fund - Class A* and the Bloomberg U.S. Aggregate Bond Index
Average Annual Total Returns**
Touchstone Active Bond Fund 1 Year 5 Years 10 Years
Class A -19.21% -1.36% 0.48%
Class C -17.98% -1.15% 0.36%
Class Y -16.32% -0.15% 1.22%
Institutional Class -16.26% -0.07% 1.30%
Bloomberg U.S. Aggregate Bond Index -14.60% -0.27% 0.89%
* The chart above represents performance of Class A shares only, which will vary from the performance of Class C shares, Class Y shares and Institutional Class shares based on the differences in sales loads and fees paid by shareholders in the different classes.
** The average annual total returns shown above are adjusted for maximum sales loads and fees, if applicable. The maximum offering price per share of Class A shares is equal to the net asset value (“NAV”) per share plus a sales load equal to 3.36% of the NAV (or 3.25% of the offering price). Class C shares are subject to a contingent deferred sales charge (“CDSC”) of 1.00%. The CDSC will be assessed on an amount equal to the lesser of (1) the NAV at the time of purchase of the shares being redeemed or (2) the NAV of such shares being redeemed, if redeemed within a one-year period from the date of purchase. Class Y shares and Institutional Class shares are not subject to sales charges.
The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Note to Chart
Bloomberg U.S. Aggregate Bond Index is an unmanaged index comprised of U.S. investment grade, fixed rate bond market securities, including government, government agency, corporate and mortgage-backed securities between one and ten years.
6

Management's Discussion of Fund Performance (Unaudited)
Touchstone Anti-Benchmark® International Core Equity Fund
Sub-Advised by TOBAM S.A.S.
Investment Philosophy
The Touchstone Anti-Benchmark® International Core Equity Fund (the “Fund”) seeks capital appreciation. TOBAM’s methodology seeks to enhance the diversification of portfolio holdings to reduce market bias and potentially improve risk-adjusted returns. TOBAM’s process selects individual stocks and their weights in an effort to reduce the correlations between individual holdings. This enables the creation of portfolios that seek to mitigate the inherent concentration risks associated with capitalization-weighted benchmarks. The lower correlations have the potential to provide a differentiated source of value than other methods of diversification. This quantitative approach creates fully invested, long-only portfolios that do not use leverage, and are designed to help guard against structural biases.
Fund Performance
The Touchstone Anti-Benchmark® International Core Equity Fund (Class Y Shares) underperformed its benchmark, the MSCI EAFE Index, over the 12-month period ending September 30, 2022. The Fund’s return was -31.55 percent compared to the -25.13 percent return of the MSCI EAFE Index.
Market Environment
Capital markets offered few safe havens over the prior 12-months as investor sentiment turned progressively negative during the final three quarters of the 12-month period.  There were multiple reasons for the declining asset prices including rising inflationary pressures, higher commodity costs, supply chain challenges, and Russia’s surprising invasion of Ukraine.  By the spring of 2022, the impact of the Ukrainian invasion had been priced into the market and investor concern had shifted back to inflationary pressures and the potential for recessionary conditions in most major economies.  Developed markets of Western Europe such as Germany, Italy and France felt the impact of supply chain challenges and slowing natural gas and oil imports from Russia following their invasion of Ukraine.  The U.S. dollar strengthened as geopolitical risks, higher U.S. interest rates compared to developed markets, and relatively less attractive economic outlooks outside the U.S. attracted foreign capital.  Broadly, both developing and developed markets were negatively impacted by the strong U.S. dollar.  Given this macroeconomic backdrop during the 12-month period and geopolitical concerns, non-U.S. developed market equities posted negative returns.  Growth-leaning sectors such as Consumer Discretionary and Information Technology as well as commodity-linked Industrials sector were among the worst-performing sectors in the MSCI EAFE Index, leading the benchmark into negative territory.
Portfolio Review
The Fund’s relative underperformance during the 12-month period was driven by stock selection in the Materials, Health Care and Consumer Staples sectors.  Weak performance in these sectors more than offset better-than-benchmark performance in the Financials, Real Estate and Communication Services sectors.
Outlook and Conclusion
TOBAM’s Anti-Benchmark® strategy does not forecast but simply seeks to maximize diversification. Thus, it does not include fundamental analysis of individual stocks, countries, sectors, economic environments or factors. No discretionary tactical or strategic asset allocation decisions are made with respect to specific regions, sectors or industries. TOBAM’s investment process consists of seeking to maximize diversification from a bottom-up perspective. Securities are bought or sold solely in relation to their potential relative diversification benefits within the portfolio. A security will be completely sold when it no longer provides the most marginal diversification among all available stocks in the universe, and others purchased when they begin to provide more marginal diversification. TOBAM’s patented Anti-Benchmark® approach is designed to avoid explicit and implicit biases in terms of sector, style, market cap and other statistical measures. For this reason, we apply as few constraints as possible and do not rely on any given view or forecast, in order to avoid unwanted systematic exposures. The Fund’s portfolio reflects even risk contributions from all independent effective risk factors in the investment universe, which may include sector and country factors.
7

Management's Discussion of Fund Performance (Unaudited) (Continued)
Comparison of the Change in Value of a $10,000 Investment in the Touchstone Anti-Benchmark® International Core Equity Fund - Class Y* and the MSCI EAFE Index
Average Annual Total Returns
Touchstone Anti-Benchmark® International Core Equity Fund 1 Year Since
Inception*
Class Y -31.55% -4.45%
Institutional Class -31.26% -4.26%
MSCI EAFE Index -25.13% 0.36%
* The chart above represents performance of Class Y shares only, which will vary from the performance of Institutional Class shares based on the difference in fees paid by the shareholders in the different classes. The inception date of the Fund was November 19, 2018. The returns of the index listed above are based on the inception date of the Fund.
The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Note to Chart
The MSCI EAFE Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding U.S. and Canada.
MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used to create indices or financial products. This report is not approved or produced by MSCI.
8

Management's Discussion of Fund Performance (Unaudited)
Touchstone Ares Credit Opportunities Fund
Sub-Advised by Ares Capital Management II LLC ("Ares")
Investment Philosophy
The Touchstone Ares Credit Opportunities Fund (the “Fund”) seeks absolute total return, primarily from income and capital appreciation. The Fund employs a flexible investment approach by allocating assets among core investments and opportunistic investments as market conditions change.  It invests in several broad investment categories, including high yield bonds, bank loans, special situations, structured credit and hedges.
Fund Performance
The Touchstone Ares Credit Opportunities Fund (Class A Shares) underperformed its benchmark, the ICE BofA 3-Month U.S. Treasury Bill Index, for the 12-month period ended September 30, 2022. The Fund’s total return was -10.60 percent (calculated excluding the maximum sales charge) while the total return of the benchmark was 0.62 percent.
Market Environment
Capital markets have come under pressure during the last twelve months due to elevated inflation, hawkish central bank policy, and geopolitical volatility, all of which have weighed on global economic growth and investor sentiment. Inflation has reached multi-decade highs on multiple occasions due to a mix of supply chain disruptions and strong consumer demand as restrictions due to COVID-19 lessened. To curb inflation, central banks around the world pivoted from quantitative easing to quantitative tightening, resulting in higher interest rates across the U.S. and Europe. Elevated inflation and rates, coupled with Russia’s invasion of Ukraine, has led to a slowdown of economic activity across the globe, and multiple periods of Gross Domestic Product contraction in the U.S. specifically. As a result, sentiment has decidedly shifted from “risk-on” to “risk-off” as investors rotated their portfolios amid rising rate, inflation, and geopolitical risks. Both equities and traditional fixed income declined. The sub-investment grade credit markets provided downside cushion relative to these asset classes, driven by high coupons and reduced duration risk, though negative for the period. High yield bonds declined while bank loans declined a lot less, the latter benefitting from strong demand due to their floating rate coupons. Reflective of broader risk-off sentiment, CCCs underperformed the broader high yield index while higher quality BBs have outperformed.
Portfolio Review
Portfolio duration was largely between 2 to 3.5 years. In general, the Fund invests in assets with low duration when compared to investment grade corporates and treasuries.  The spread between the 2- and 10-year treasuries is incorporated into our proprietary recession scorecard, which is used to assess the macro environment and lead to more informed positioning decisions. During this period, we have migrated the portfolio into a more defensive stance given our view of the go-forward direction of the global economy.
The Fund actively rotated exposures as we sought to optimize the portfolio following the migration of assets related to a Fund merger and more recently, increased the quality of the Fund amid rising macro concerns. As a result, issuer count was reduced amid rising idiosyncratic risk as higher cost inputs and Russia’s invasion of Ukraine affected corporate fundamentals, leading to higher single name dispersion in the sub-investment grade credit markets. The portfolio maintained a bias towards fixed rate assets due to the lack of call protection of relatively higher credit quality when compared to syndicated loans, though duration remained significantly reduced when compared to investment grade equivalents. The Fund’s floating rate exposure was diversified during the period, reducing exposure to highly levered Technology and lower-quality syndicated loans in favor of higher yielding, diversified Collateralized Loan Obligation securities. By credit quality, the portfolio’s exposure to single B’s was reduced as we sought to move up in quality amid a deteriorating macro environment, with the allocation to BB and above being increased. As noted earlier, the Fund’s exposure to Technology was decreased as we sold highly levered software credits and maintained a bias towards Building Products and Energy. While the Fund maintained a bias towards U.S. assets, we recently took advantage of foreign exchange rates and weakness in European markets by selectively acquiring non-U.S. dollar bonds issued by multinationals at attractive levels.
Outlook and Conclusion
The period closed on a volatile note as markets responded to a hawkish policy outlook, renewed geopolitical uncertainty, and the energy crisis in Europe. Following a broader market selloff in September, risk assets rallied the first week in October 2022 as prospects for a policy pivot resurfaced after the U.K. government reversed its decision to cut the tax rate and manufacturing data surprised to the downside. Economic data continues to present a mixed picture - the outlook for future economic growth remains generally weak, with expectations of further softening of demand; however, year-over-year inflation in the U.S. and Europe remain elevated due to global supply chain issues and energy trade disruptions. Meanwhile, U.S. initial jobless claims decreased while sales of new single-family homes increased by 28% in August even as mortgage rates significantly increased. While a recession is
9

Management's Discussion of Fund Performance (Unaudited) (Continued)
increasingly likely and central banks continue to signal that growth may be hindered until inflation comes under control, we believe default rates should remain muted relative to previous dislocations as issuers are well-positioned to service their debt, maturities have been pushed out and liquidity shored up. Even if a recession is deeper and more protracted than we expect, we take comfort in the healthier corporate and consumer balance sheets relative to prior recessions. While we anticipate elevated volatility moving forward, given where yields are today, we view the long-term buying opportunity to be attractive. We are keeping a close watch on the developments in Ukraine and China and the resulting economic impacts, central bank policies, the energy crisis in Europe, as well as any idiosyncratic events that may arise in this unpredictable environment. We believe the Fund is well positioned to navigate broader macro volatility due to our focus on bottom-up, fundamental credit analysis, downside protection, and the experience and breadth of the Ares platform.
Comparison of the Change in Value of a $10,000 Investment in the Touchstone Ares Credit Opportunities Fund - Class A* and the ICE BofA 3-Month U.S. Treasury Bill Index
Average Annual Total Returns**
Touchstone Ares Credit Opportunities Fund 1 Year 5 Years Since
Inception*
Class A -13.50% 1.39% 3.00%
Class C -11.84% 1.89% 3.19%
Class Y -10.47% 2.82% 4.10%
Institutional Class -10.39% 2.92% 4.20%
ICE BofA 3-Month U.S. Treasury Bill Index 0.62% 1.15% 0.94%
* The chart above represents performance of Class A shares only, which will vary from the performance of Class C shares, Class Y shares and Institutional Class shares based on the differences in sales loads and fees paid by shareholders in the different classes. The inception date of the Fund was August 31, 2015. The returns of the index listed above are based on the inception date of the Fund.
** The average annual total returns shown above are adjusted for maximum sales loads and fees, if applicable. The maximum offering price per share of Class A shares is equal to the net asset value (“NAV”) per share plus a sales load equal to 3.36% of the NAV (or 3.25% of the offering price). Class C shares are subject to a contingent deferred sales charge (“CDSC”) of 1.00%. The CDSC will be assessed on an amount equal to the lesser of (1) the NAV at the time of purchase of the shares being redeemed or (2) the NAV of such shares being redeemed, if redeemed within a one-year period from the date of purchase. Class Y shares and Institutional Class shares are not subject to sales charges.
The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Note to Chart
ICE BofA 3-Month U.S. Treasury Bill Index is an unmanaged index of Treasury securities maturing in 90 days that assumes reinvestment of all income.
10

Management's Discussion of Fund Performance (Unaudited)
Touchstone Dividend Equity Fund
Sub-Advised by Fort Washington Investment Advisors, Inc.
Investment Philosophy
The Touchstone Dividend Equity Fund seeks a high level of current income and capital appreciation by investing primarily in a portfolio of dividend-paying large-capitalization equities.
Fund Performance
The Touchstone Dividend Equity Fund (Class A Shares) outperformed its benchmark, Russell 1000® Value Index, for the 12-month period ended September 30, 2022. The Fund’s total return was -9.90 percent (calculated excluding the maximum sales charge) while the benchmark’s total return was -11.36 percent.
Market Environment
Factors influencing markets for the 12-month period varied from positive effects from continued relaxing of COVID-19 pandemic restrictions, to the negative impacts from military conflict in Ukraine, persistently high inflation, and tighter central bank policy around the world.  Global conflict and sharp monetary tightening were most impactful, as risk assets (equities, credit spreads) generally performed poorly and interest rates reached multi-year highs.
At the end of 2021 and into 2022, expectations for the global economy were strong.  Consensus estimates for U.S. gross domestic product growth were nearly 4% at the beginning of 2022.  COVID-19 pandemic restrictions were being lifted and an economic rebound was focused on the unleashing of pent-up demand for activities that had been restricted for the previous two years.  Subsequent events have tempered expectations, with the most recent estimates of 2022 economic growth declining to 1.5%.
The Russian invasion of Ukraine in early 2022 was a negative for markets, initially fearing that the conflict would spread to greater Europe.  For U.S. markets, the most direct impact of the conflict was an increase in commodity prices, fueling higher energy and food costs for consumers.  As fears subsided that the conflict would expand beyond the Ukrainian border, markets calmed, but the effects of higher commodity prices persisted.  Europe is facing winter with reduced natural gas supplies from Russia, and U.S. inflation increased as these higher prices were passed through to consumers.
For the period, inflation has been well above the U.S. Federal Reserve Board’s (“Fed”) 2% target, averaging nearly 6% in 2022.  Hopeful that inflation would drift towards 2% as pandemic effects subsided, the Fed and markets were initially sanguine regarding the amount of rate increases that would be needed over the coming months.  As the inflation data remained high and increasingly persistent, expectations of Fed rate hikes increased substantially.  Through the end of third quarter 2022, the Fed has raised interest rates by 3% and is expected to reach 4.5% in early 2023.  U.S. Treasury yields have risen sharply, reaching the highest levels since the 2008 financial crisis and inverting yield curves to levels not seen since the 1980s.  For many bond market indices, 2022 is the worst year on record amid substantial price declines.
Increasingly tight monetary policy and slowing growth have been strong headwinds for risk assets.  Equities are firmly in bear market territory, and credit spreads are nearing the widest levels of the 12-month period. Recession risk has increased and markets are facing a very uncertain and likely volatile period ahead.
Energy was the best performing sector over the period as oil prices rose above $100/barrel for the first time since 2014.  Defensive sectors, including Health Care, Consumer Staples and Utilities, also outperformed as volatility increased and equity markets moved lower. Value stocks outpaced Growth stocks.
Portfolio Review
The Fund’s outperformance was primarily driven by strong security selection, while sector allocation detracted from relative performance.
Stock selection within Information Technology and Health Care were the largest contributors to relative performance.  An overweight allocation to Information Technology was the primary driver of negative sector allocation. Information Technology underperformed as higher interest rates pressured valuations for higher growth, long duration stocks.
Among the largest individual contributors to relative performance were overweight positions in Valero Energy Corp. (Energy sector), Lockheed Martin Corp. (Industrials sector), and AbbVie Inc.(Health Care sector), along with underweight positions to The Walt Disney Company (Communication Services sector) and Salesforce Inc. (Information Technology sector).
11

Management's Discussion of Fund Performance (Unaudited) (Continued)
Valero Energy, one of the largest independent refiners, outperformed as the entire Energy sector benefitted from higher commodity prices during the period. Although higher oil prices can be a headwind to refiners, current price levels and crack spreads combined with elevated demand support healthy margins for refiners.
Lockheed Martin was the second largest contributor to relative returns during the period. The Fund increased its exposure to defense names in late 2021 as the sector underperformed and was relatively attractive compared to the broader market.  This positioning benefitted the portfolio as defense names outperformed following the Russian invasion of Ukraine and renewed focus on defense spending.
The largest detractors from relative performance were overweight positions in VF Corporation (Consumer Discretionary sector), Stanley Black & Decker, Inc. (Industrials sector), Comcast Corporation (Communication Services sector), and Oracle Corporation (Information Technology sector), along with an underweight to ConocoPhillips (Energy sector).
VF Corp, the apparel maker of Vans, Timberland, and The North Face, was the largest detractor from performance as the name underperformed during the period.  The company provided guidance at its September analyst event that underwhelmed investors, resulting in a move lower for the stock following a wave of analyst price target cuts.  Higher costs and slowing consumer spending amid a worsening economic backdrop presents near-term challenges, but our long-term outlook remains intact due to its portfolio of strong brands with pricing power and high returns on capital.
Stanley Black & Decker, a market leader in the tools & outdoor space within industrials with brand names like Dewalt, Black & Decker, and Craftsman, detracted from performance during the period.  The name underperformed following several quarters of disappointing earnings and a material revision down in guidance.  The company is facing challenges from slowing consumer demand amid a fall in housing activity, while also facing a material inventory buildup that is pressuring earnings.  The stock is approaching levels seen at the depth of the global pandemic in March of 2020.  Compelling valuation and long-term fundamentals support an overweight to Stanley Black & Decker despite recent weakness in the business.
The Fund initiated positions in Visa Inc. (Information Technology sector), Bank of America Corporation (Financials sector), and Stanley Black & Decker Inc. (Industrials sector) while it eliminated positions in MetLife Inc. (Financials sector), UPS Inc. (Industrials sector), Linde plc (Materials sector), Kimberly-Clark Corporation (Consumer Staples sector), TE Connectivity Ltd. (Information Technology sector), HCA Healthcare Inc. (Health Care sector), and Parker Hannifin Corporation (Industrials sector).
Outlook and Conclusion
Following a steep sell-off in financial markets in the first half of 2022, U.S. markets rallied in July and into August. The catalysts were declines in prices of oil and other commodities that raised investors’ hopes that inflation had peaked and the  Fed would slow the pace of monetary tightening.
At the Jackson Hole meeting in late August 2022, however, Fed Chair Jerome Powell disappointed investors when he emphasized that inflation was too high and the Fed’s top priority was to bring it down to its 2 percent target. He acknowledged that this will likely require a sustained period of below-trend growth and a softening in labor market conditions.
Following a worse-than-expected inflation report for August, the Fed subsequently raised the funds rate by 75 basis points for the third consecutive Federal Open Market Committee (“FOMC”) meeting to 3.0%- to-3.25%. The latest plots by Fed officials show the funds rate reaching 4.6% by early next year and then plateauing. This would imply it could be raised by 75 basis points and 50 basis points, respectively, at the next two FOMC meetings followed by a quarter point hike in early 2023.
Amid these developments, Treasury bond yields set new highs for 2022 and became inverted between two-year and long-dated instruments. At the same time, spreads between corporate bonds and Treasuries widened further. The selloff in the U.S. bond market in 2022 is now the worst in history. 
At the same time, the summer rally in stocks has reversed, and the U.S. stock market is back into bear territory. The best performing asset has been the U.S. dollar, which has appreciated against the major currencies this year and is at more than a two-decade high against the euro and the Japanese yen.
We believe the key issue for investors now relates to the chances that additional U.S. monetary tightening will spawn a U.S. recession. Our view is that if a U.S. recession were to materialize, it is likely to be less severe than the 2008 Global Financial Crisis for two reasons. First, there are no major sectoral imbalances and the financial sector is less exposed to the housing market and better capitalized today.
We believe it is also likely to be less impactful than the first two oil shocks because the U.S. is energy self-sufficient today, and oil prices have declined significantly from their peak earlier this year. Furthermore, inflation expectations are not as deeply embedded as they were in the 1970s and early 1980s.
12

Management's Discussion of Fund Performance (Unaudited) (Continued)
The risks of a global recession have certainly increased next year, with Europe decidedly in recession while the two largest economies—the U.S. and China—experience little or no growth. That said, valuations appear to be pricing in an increased risk of recession.
Although risks have risen, valuations have adjusted to compelling levels and we believe the long-term economic outlook is still promising. As such, we remain constructive on U.S. equities. As investors seek to avoid the risks of inflation, higher interest rates, and recession, dividend strategies are a compelling option. Dividend strategies have the potential to provide both capital appreciation and a growing stream of income while also providing downside protection through lower volatility during times of distress, as evidenced by returns this year.
Within the Fund, we are maintaining a cautious stance but are selectively finding bottom-up opportunities while reducing outperforming defensive names where valuations have become stretched. Earnings expectations remain stubbornly high and are at risk to fall amid slowing economic growth. Potential downside remains should equity earnings deteriorate.  We believe the Fund is positioned to withstand a further decline in equity prices due to its high quality approach, and are prudently adding to opportunities with long-term upside potential in more normalized environments.
13

Management's Discussion of Fund Performance (Unaudited) (Continued)
Comparison of the Change in Value of a $10,000 Investment in the Touchstone Dividend Equity Fund - Class A* and the Russell 1000® Value Index
Average Annual Total Returns**
Touchstone Dividend Equity Fund* 1 Year 5 Years 10 Years Since
Inception
Class A* -14.41% -0.11% 6.73% 5.99%
Class C* -11.41% 0.41% 6.66% 5.55%
Class Y* -9.69% 1.29% 6.02%
Institutional Class* -9.62% -8.51%
Class R6* -9.56% -10.21%
Russell 1000® Value Index -11.36% 5.29% 9.17% 6.42%
* The chart above represents performance of Class A shares only, which will vary from the performance of Class C shares, Class Y shares, Class R6 shares and Institutional Class shares based on the differences in sales loads and fees paid by shareholders in the different classes. Effective July 17, 2021, the AIG Focused Dividend Strategy Fund and the AIG Select Dividend Growth Fund merged into the Fund. The Fund adopted the performance and accounting history of the AIG Focused Dividend Strategy Fund (the "Predecessor Fund"). Prior to July 17, 2021, the Fund's performance history is that of the Predecessor Fund. The inception date of Class A, Class C, Class Y, Class R6 and Institutional Class shares was June 8, 1998, June 8, 1998, May 14, 2013, August 2, 2021 and July 19, 2021, respectively. The returns of the Index are based on the inception date of the Fund.
** The average annual total returns shown above are adjusted for maximum sales loads and fees, if applicable. The maximum offering price per share of Class A shares is equal to the net asset value (“NAV”) per share plus a sales load equal to 5.26% of the NAV (or 5.00% of the offering price). Class C shares are subject to a contingent deferred sales charge (“CDSC”) of 1.00%. The CDSC will be assessed on an amount equal to the lesser of (1) the NAV at the time of purchase of the shares being redeemed or (2) the NAV of such shares being redeemed, if redeemed within a one-year period from the date of purchase. Class Y shares, Class R6 shares and Institutional Class shares are not subject to sales charges.
The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Notes to Chart
Russell 1000® Value Index measures those Russell 1000 companies with lower price-to-book ratios and lower expected growth values.
The Frank Russell Company (FRC) is the source and owner of the data contained or reflected in this material and all trademarks and copyrights related thereto. The material may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a Touchstone Investments presentation of the data, and FRC is not responsible for the formatting or configuration of this material or for any inaccuracy in the presentation thereof.
14

Management's Discussion of Fund Performance (Unaudited)
Touchstone High Yield Fund
Sub-Advised by Fort Washington Investment Advisors, Inc.
Investment Philosophy
The Touchstone High Yield Fund seeks a high level of income as its main goal. Capital appreciation is a secondary consideration. The Fund primarily invests in non-investment-grade debt securities.
Fund Performance
The Touchstone High Yield Fund (Class A Shares) underperformed its benchmark, ICE BofA High Yield Cash Pay Index, for the 12-month period ended September 30, 2022. The Fund’s total return was -14.88 percent (calculated excluding the maximum sales charge) while the benchmark’s total return was -13.98 percent.
Market Environment
The U.S. Treasury market saw a large and consistent rally for much of the period as yields of all maturity levels declined. In addition to the significant rally in U.S. Treasuries, there were times throughout the period where the U.S. Treasury curve inverted and the market began to worry about a possible recession or the increasing likelihood of one. Investment grade corporate securities with long durations and low spreads benefited the most from the decline in yields. Below-investment grade securities were impacted more severely; their typically shorter duration therefore were less advantaged by the intermediate-to-longer-term U.S. Treasury yield decreases and thus underperformed.
Within High Yield, BB- and B-rated bonds saw their spreads widen modestly while spread widening in CCC-rated bonds was much greater. This created a significant bifurcation of returns with BB- and B-rated bonds significantly outperforming their CCC-rated counterparts.
During the 12-month period, the top performing industries were Supermarkets, Banking, Life Insurance, and Wireless. These are all industries that are non-commodity related, less cyclical, and long in duration. The bottom performing industries were Oil Field Services and Independent Energy. These two industries are the only sizeable industries with a negative return over the twelve-month period. Despite oil staying reasonably range bound, investors have shunned owning this segment of the market over the past year on concerns of recession and increasing default rates.
Portfolio Review
Overall, sector allocation was neutral for the 12-month period. The Fund’s underweight to Independent Energy was the largest positive contributor as Energy was a bottom-performing sector. The Fund’s overweight positions to Food & Beverage and Cable/Satellite were additive as both are large non-cyclical industries that performed well as investors preferred issuers in more defensive sectors. An overweight to Pharmaceuticals and an underweight to Wireless were the two largest detractors.
Security selection positively contributed to performance and was driven by two main factors: an underweight to CCC-rated securities, and not owning several companies that went bankrupt or were trading as if they had defaulted. The largest headwinds to security selection revolved around two themes: the Fund overweight in Energy and an overweight in the Pharmaceuticals industry which was impacted by potential opioid litigation.
Outlook and Conclusion
We expect gross domestic product (GDP) growth to remain positive. Financial conditions are stable, fixed income market liquidity is adequate, credit fundamentals are solid with leverage and coverage at historical levels, there are limited maturities on the horizon and default rates are expected to remain low. This all provides a backdrop whereby we would expect credit markets to perform reasonably well.
We believe the greatest opportunity set for the Fund going forward would be either a continuation of the current environment of low growth mixed with relatively steady monetary policy or a meaningful sell-off in the high yield market. The Fund is positioned to emphasize credit selection over sector allocation as there are few apparent sector allocation opportunities in the current environment. Where there are sector opportunities, we have decided to express our views through quality (BB- versus B-rated) and not necessarily through a large under/overweight to the sector. Lastly, given the higher quality nature of the Fund, we would expect it to perform well in an environment where spreads widen significantly and CCC-rated bonds significantly underperform their BB- and B-rated counterparts.
In light of high yield’s relatively low spread and yield levels, the Fund is positioning toward the lower portion of our risk range. With the exception of the Energy segment, we believe that the BB- and B-rated segment of the market is fairly valued as fundamentals are
15

Management's Discussion of Fund Performance (Unaudited) (Continued)
solid, economic growth remains positive, and liquidity is available. The Fund maintains a substantially reduced CCC-rated bonds exposure. We believe this defensive stance positions the Fund well in a market in which CCC-rated bonds continue to struggle due to weak economic growth and a persistently risk averse investor base.
Comparison of the Change in Value of a $10,000 Investment in the Touchstone High Yield Fund - Class A* and the ICE BofA High Yield Cash Pay Index
Average Annual Total Returns**
Touchstone High Yield Fund 1 Year 5 Years 10 Years
Class A -17.64% -0.55% 1.93%
Class C -16.36% -0.32% 1.81%
Class Y -14.70% 0.68% 2.70%
Institutional Class -14.63% 0.78% 2.78%
ICE BofA High Yield Cash Pay Index -13.98% 1.40% 3.85%
* The chart above represents performance of Class A shares only, which will vary from the performance of Class C shares, Class Y shares and Institutional Class shares based on the differences in sales loads and fees paid by shareholders in the different classes.
** The average annual total returns shown above are adjusted for maximum sales loads and fees, if applicable. The maximum offering price per share of Class A shares is equal to the net asset value (“NAV”) per share plus a sales load equal to 3.36% of the NAV (or 3.25% of the offering price). Class C shares are subject to a contingent deferred sales charge (“CDSC”) of 1.00%. The CDSC will be assessed on an amount equal to the lesser of (1) the NAV at the time of purchase of the shares being redeemed or (2) the NAV of such shares being redeemed, if redeemed within a one-year period from the date of purchase. Class Y shares and Institutional Class shares are not subject to sales charges.
The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Note to Chart
ICE BofA High Yield Cash Pay Index is an unmanaged index used as a general measure of market performance consisting of fixed-rate, coupon-bearing bonds with an outstanding par which is greater than or equal to $50 million, a maturity range greater than or equal to one year and must be less than BBB/Baa3 rated but not in default.
16

Management's Discussion of Fund Performance (Unaudited)
Touchstone Impact Bond Fund
Sub-Advised by EARNEST Partners LLC
Investment Philosophy
The Touchstone Impact Bond Fund (the “Fund”) seeks current income. Capital appreciation is a secondary goal. The Fund invests primarily in fixed income securities or sectors that are considered undervalued for their risk characteristics.
Fund Performance
The Touchstone Impact Bond Fund (Class A Shares) outperformed its benchmark, the Bloomberg U.S. Aggregate Bond Index for the 12 month period ended September 30, 2022. The Fund’s total return was -14.52 percent (calculated excluding the maximum sales charge) while the benchmark’s total return was -14.60 percent.
Market Environment
While a 12-month period typically contains many noteworthy macroeconomic related market events, the last 12-months have been almost singularly focused on inflation and the U.S. Federal Reserve Board’s (“Fed”) response to it. The Consumer Price Index (“CPI”) peaked at 9.1% in June, having recently retraced to 8.3%.  This is still well above where it was one year ago when it clocked in at 5.3%.  The unemployment rate has improved from 5.2% to 3.5% over this same period.  With the jobs market running at very healthy levels, the Fed turned its attention squarely at accelerating inflation.  The central bank fears that inflation could become unanchored as it did in the 1980’s, which was due in part to the Fed’s inadequate response to inflation during the late 1970’s.  They do not want to repeat this same mistake.  In their own terms, the economy will not work for anybody if inflation is running at persistently high levels.
To combat inflation the Fed has turned hawkish for the first time since 2018.  They have pushed the Federal Funds rate from 0.25% to 3.25% in the last twelve months and have indicated more rate hikes are likely needed.  They have also committed to lowering the size of their balance sheet by up to $95B per month.  These reductions will come from both its Treasury and Single-Family Mortgage Backed Securities  (“MBS”) holdings.
This new monetary policy led to large increases in rate markets broadly.  It has also led to a strong U.S. dollar, which decreases the attractiveness of U.S. fixed income for international investors seeking to hedge their currency risk.  Unsurprisingly, the front-end of the curve has moved in sympathy with the Fed’s increases to its key policy rate.  The yield of the two-year Treasury has increased from 0.28% to 4.28% over this period.  The yield curve has become fully inverted, with the 3.90% yield of the 6-month Treasury Bill now exceeding that of the 30-year Treasury Bond’s yield of 3.78%.  Moves on the long end of the curve are subject to many outside forces, and the moves higher this year have been aided by the combination of inflation and the nominal economic strength.
While riskier assets typically outperform during periods of safe-haven underperformance, this has not held in the current inflationary environment.  This is largely because the inflation adjusted strength of the economy has not kept up with the nominal strength experienced.  This weighs on real incomes, real spending, and real return prospects.  The tighter financial policy is eventually expected to cut off the nominal strength as well.  Combined, this has choked the return profile of riskier assets.  While risky financial assets represent a large spectrum, relative to Treasuries all other assets receive a risk premium.  This includes investment grade fixed income spread securities.  Over the last twelve months, the spread compensation provided as a premium for the risk assumed, has widened.  This widening has been large enough to offset any income related advantage.  As such, all sectors underperformed matched duration Treasuries over the last 12-months.
The underperformance is widespread.  A natural place to start is the U.S. Corporate Bond market, which has underperformed matched duration Treasuries.  These securities have faced credit concerns, primarily related to inflation induced margin pressure and the cost of refunding debt in the higher rate environment.  However, even high-quality corners of the market such as Single-Family MBS have underperformed matched duration Treasuries.  This sector has suffered at the hands of interest rate volatility and the Fed’s plans to reduce their substantial MBS holdings.  One of the better performing areas of the market is Multi-Family MBS, which has “only” underperformed matched duration Treasuries.
Portfolio Review
The macroeconomic environment has created a headwind on both an absolute and relative level.  Absolute returns have suffered due to the increase in interest rates.  The Fund’s overweight to spread products was the portfolio’s primary headwind (relative to the benchmark) during the period, as all major spread sectors underperformed matched duration Treasuries during the period.
Sector and security selection offset some of the losses from being broadly overweight spread securities.  The largest example of this was the Fund’s overweight to Multi-Family MBS to complement the underweight to Single-Family MBS.  The Fund’s overweight
17

Management's Discussion of Fund Performance (Unaudited) (Continued)
to U.S. Agencies was also beneficial for the portfolio relative to other spread sector opportunities.  Still, U.S. Agencies did underperform Treasuries.  Corporate exposure benefited due to the high quality and low volatility nature of the business profiles in which issuers are engaged.
The Fund's primary positioning is unchanged.  It remains overweight high quality spread bonds, underweight Treasuries, and underweight Single-Family MBS.  It has retained its quality, relative interest rate sensitivity, structural advantage, and spread advantage.
The largest change during the period was the increase in Rate Reduction Bonds.  This has long been a favored sector of our investment process.  However, a lack of issuance over the last decade has caused the allocation to this sector to dwindle.  Weather events led to a new wave of issuance during 2022.  These securities have a tremendously positive impact on the communities and individuals they support.  The structure and need for these securities is so strong that they are the only asset class that has never been downgraded from an AAA rating.  Over the last twelve months the portfolio’s allocation to these bonds has increased by more than 3%.  These purchases have largely come against allocations to various Agency and MBS sectors.
The Fund’s effective duration of 5.84 years continues to be approximately matched to that of the benchmark, representing 96% of the benchmark’s effective duration as of fiscal year end. The Fund entered the fiscal year at 97% of the benchmark’s duration.  Throughout the course of the year, the duration profile fluctuated between the low to high 90 percentiles.  While this range falls within our definition of being approximately duration neutral, due to the outsized and volatile moves in yields, the portfolio’s modestly shorter positioning did generate a relative performance benefit for the portfolio.  This positioning was not a call on interest rates, but instead related to where we identified value within our risk management construct of remaining approximately duration and curve neutral.
The portfolio is actively managed to be approximately duration and yield curve neutral.  Changes in the yield curve had little impact on the Fund’s relative performance during the period.
Outlook and Conclusion
As discussed, the macroeconomic backdrop has added to volatility and uncertainty.  This in turn has created a market that at times has offered investment opportunities, which appear to have become dislocated from each other.  As an example, we recently purchased a new Small Business Administration (“SBA”)  bond that was issued with a spread of +120 basis points over the 10-year Treasury.  A month earlier, a nearly identical bond was issued with a spread of +100 basis points.  This +20  basis points of widening over the relevant period was more than any of its frequent comparables.  Nothing about these securities changed, and they retain the same full faith and credit guarantee of the U.S. Government that they always have.  These types of pricing dislocations provide active managers an opportunity to act patiently and capitalize on unusual opportunities to capture value.
Away from the volatility, the shape of the yield curve also provides attractive investment opportunities.  While we will continue to run an approximately curve neutral portfolio, we will take some active positioning in securities across the curve due to the relative value the securities provide.  In the medium term, shorter securities should not provide more yield than longer securities.  Similarly, rolling down the yield curve from the 20-year point is a far more attractive total return proposition than rolling up the yield curve from the 30-year point.  So long as we maintain an approximately curve and duration neutral profile, we will continue to seek to capture value along the yield curve as these types of opportunities are unique and infrequent in nature.
Lastly the Fed and their balance sheet reduction plans still loom somewhere in the background.  The risk this poses to Agency Single-Family MBS remains significant.  When the securities are priced cheaply, we will seek to add to them.  However, the prospect of future selling by the  Fed is a risk that needs to be properly accounted for when evaluating the attractiveness of the securities.      
There are two large themes that the Fund is most exposed to, the first of which is the risk that inflation does become unanchored, moving to levels which causes a recession and subsequent rush into the safe haven that Treasuries represent.  This buying could be exacerbated by being funded with indiscriminate selling of spread securities.  In this scenario, the Fund’s significant underweight to Treasuries could become a large enough headwind to offset sector and security selection, which has held up during 2022.
Alternatively, if volatility were to subside in a serious manner and the Fed  was simultaneously able to efficiently reduce its Single-Family MBS, we would face a material headwind due to the significant underweight to the sector, which can perform quite well during periods of zero volatility.
We continue to monitor each of these risks and the value propositions they create.
While fixed income markets this year have experienced an increase in volatility and unheralded losses, we do see three bright rays of light.  The first is simple, yields are up.  As part of a balanced portfolio, fixed income’s role becomes more appealing when its income can deliver 4-5% instead of 1%.  Those higher yields also help offset any additional move higher in rates in a way that lower yields cannot. Additionally, while it still seems likely interest rates will increase on the front end of the curve that does not necessarily bode
18

Management's Discussion of Fund Performance (Unaudited) (Continued)
true for longer portions of the curve which are influenced by many factors away from the actions of the Fed.  Importantly, it is the intermediate and longer portions of the curve that matter for price related returns.  With yields up, these bonds now provide more value as a hedge against an economic contraction. Lastly, due to the increase in spreads, the compensation for taking risk is at the highest levels in years.
Overall, in 2022 we have approached the spread market with more caution given all the cross currents.  This has benefited performance.  We are still unambiguously overweight high-quality spread-products while significantly underweight both Treasuries and products with poor structure such as Single-Family MBS.  In a market where spreads have widened across the board, we are encouraged that the portfolio has hence far weathered the storm and been competitive.
We believe the Fund is well positioned going forward given the recent moves in spreads and that this leaves the Fund in a good starting place to earn more yield on both an absolute and relative basis going forward. Meanwhile, the Fund is positioned with a little extra dry powder that is invested in short and highly liquid Treasuries.  We look forward to finding the right market dynamics and opportunities to redeploy that capital back into the spread market.  We continue to view the Fund’s substantial underweight to Single Family-MBS as prudent given the risks the sector is exposed to, which are both fundamental and technical in nature.
Fund allocations to government debt has remained fairly consistent over the past twelve months.  The biggest change is we have shifted more of the allocation into other diversified AAA rated assets as they became available during the second and third quarter of 2022.  This caused the Fund’s weight to Agency rated bonds down to 45.4%, while increasing its exposure to other AAA rated bonds up.  Across the various agency buckets, the proportions to SBA, Multi-Family MBS, Single-Family MBS, and other programs has remained quite consistent.
19

Management's Discussion of Fund Performance (Unaudited) (Continued)
Comparison of the Change in Value of a $10,000 Investment in the Touchstone Impact Bond Fund - Class A* and the Bloomberg U.S. Aggregate Bond Index
Average Annual Total Returns**
Touchstone Impact Bond Fund 1 Year 5 Years 10 Years
Class A -17.34% -1.54% 0.21%
Class C -16.02% -1.32% 0.09%
Class Y -14.37% -0.34% 0.94%
Institutional Class -14.29% -0.22% 1.06%
Class R6* -14.27% -0.32% 0.95%
Bloomberg U.S. Aggregate Bond Index -14.60% -0.27% 0.89%
* The chart above represents performance of Class A shares only, which will vary from the performance of Class C shares, Class Y shares and Institutional Class shares based on the differences in sales loads and fees paid by shareholders in the different classes. The inception date of Class R6 shares was November 22, 2021. Class R6 shares’ performance was calculated using the historical performance of Class Y shares for the periods prior to November 22, 2021. The returns have been restated for sales loads and fees applicable to Class R6 shares.
** The average annual total returns shown above are adjusted for maximum sales loads and fees, if applicable. The maximum offering price per share of Class A shares is equal to the net asset value (“NAV”) per share plus a sales load equal to 3.36% of the NAV (or 3.25% of the offering price). Class C shares are subject to a contingent deferred sales charge (“CDSC”) of 1.00%. The CDSC will be assessed on an amount equal to the lesser of (1) the NAV at the time of purchase of the shares being redeemed or (2) the NAV of such shares being redeemed, if redeemed within a one-year period from the date of purchase. Class Y shares, Class R6 shares and Institutional Class shares are not subject to sales charges.
The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Note to Chart
Bloomberg U.S. Aggregate Bond Index is an unmanaged index comprised of U.S. investment grade, fixed rate bond market securities, including government, government agency, corporate and mortgage-backed securities between one and ten years.
20

Management's Discussion of Fund Performance (Unaudited)
Touchstone International ESG Equity Fund
Sub-Advised by Rockefeller & Co. LLC
Investment Philosophy
The Touchstone International ESG Equity Fund (the “Fund”) seeks long-term growth of capital. The Fund primarily invests in equity securities of non-U.S. companies and generally focuses on larger, more established companies. The Fund selects investments based on an evaluation of a company’s sustainability and impact practices which considers environmental, social and governance (ESG) impacts and risks of a company, how well the company manages these impacts and risks and ascertains the company’s willingness and ability to take a leadership position in implementing best practices.
Fund Performance
The Touchstone International ESG Equity Fund (Class A Shares) underperformed its benchmark, the MSCI All Country World ex-USA Index, for the 12-month period ended September 30, 2022. The Fund’s total return was -29.67 percent (calculated excluding the maximum sales charge), while the total return of the benchmark was -25.17 percent.
Market Environment
The 12-month period ending September 30, 2022 was heavily influenced by surging inflation, a byproduct of aggressive U.S. Federal Reserve Board (“Fed”) monetary policy during the pandemic.  Additionally, the Russia-Ukraine war has created an environment of energy insecurity in the Eurozone and has contributed to economic deterioration in the region.  New COVID-19 cases continue to linger globally, however, high vaccination rates and low fatality rates have desensitized the markets to COVID-19 related news outside of China where “Zero COVID-19” policy remains.  Global equity markets were weak during this period. Chair of the Fed, Jerome Powell, maintained the view that inflation was “transitory” for the greater part of 2021 but ultimately pivoted in late November.  He held this position while the U.S. Consumer Price Index (“CPI”) steadily rose from 1.4% in January 2021 to 6.8% as of the October 2021 reading.  U.S. CPI would continue to climb, peaking in June 2022 at 9.1% and softened to 8.3% in August.  The Fed initiated a rate hiking cycle in March 2022 nearly a year after CPI broke through 3.0%, and the Fed has been playing catchup ever since. The equity markets during the final 3 months of 2021 performed positively despite concerns around inflation and the COVID Omicron variant, and the MSCI All Country World ex-USA Index increased 1.9%.  Global new issuance market was vibrant in 2021 with U.S. Initial Public Offering (“IPO”) deal count achieving 20-year highs and total IPO proceeds of over $140 billion was the largest in history.  Elevated equity valuations were supportive of new capital formation but inflation and concerns regarding the magnitude of the Fed’s policy shift led to January declines. High inflation rates have weighed on consumer sentiment as well, as the University of Michigan Consumer Sentiment Index collapsed to 59.4 in March 2022 and has remained at low levels.
The invasion of Ukraine and the subsequent sanctions against Russian entities have exacerbated the global inflation problem.  Brent crude prices spiked north of $100/barrel, European gas prices tripled on the onset of the Russian attack and have since settled 50% higher, and grain prices have soared.  In essence, European Union household disposable income declined as a result and corporate investment decisions will likely be re-evaluated in the coming quarters.  Interest rate differentials have contributed to the U.S. dollar strength in the past year.  The euro, Japanese yen and the Korean won declined.  Foreign exchange volatility will present challenges to countries with limited natural resources, which are often priced in U.S. dollar, while export oriented nations may benefit from selling cheaper goods.  Global markets continued to decline over the course of 2022 as economic uncertainty remains.  While valuations have compressed across all major markets, earnings revisions may continue to drift lower as companies deal with volume challenges, high input costs, and foreign exchange volatility.  Global Purchasing Managers’ Indices are descending into contraction territory that is likely to result in negative growth in the coming year.  While this presents further volatility in the markets, valuations at decade lows suggests that negativity in the marketplace is adequately factored in.  If Europe can navigate their energy supply through the winter months or Russia-Ukraine war can subside, we believe a case can be made for a recovery in the markets.
Portfolio Review
The Fund underperformed the benchmark during the period, due in large part to the portfolio’s underweight to Energy and Consumer Staples and its overweight position in Industrials.  Consumer Discretionary was the most significant detracting sector, led lower by weakness in Alibaba Group Holdings Ltd. and Sony Group Corp. Alibaba has been impacted by fluctuating COVID-19 lockdowns in China, which has suppressed economic activity. The stock originally traded higher in second quarter 2022 based on expectations that retail sales would improve upon reopening. However, additional lockdowns in third quarter 2022 continues to impact commerce activity, causing a reversal. Alibaba’s earnings release reflected lower merchandise volume, but profitability was better due to cost control. We continue to be constructive on the name based on eventual normalization. In addition, the industry should reflect greater expense discipline after digesting regulatory changes. Sony lagged due to its exposure to consumer electronics goods including gaming.  We believe that component shortages are the sole reason for the weaker installed based trajectory of game
21

Management's Discussion of Fund Performance (Unaudited) (Continued)
consoles, slowing new game releases.  Sony continues to maintain a leadership position in camera sensors, entertainment, and gaming while trading at attractive valuations. Koninklijke Philips N.V. was the single most significant detractor during the period as the company continues to struggle with the recall and remediation associated with their sleep apnea device, CPAP.  Based on the share price performance, the market appears to be estimating a potential $10-$15 billion liability impact to Philips, which we believe, is too punitive. Deutsche Post AG, a leading European logistics company was also a top detractor, with shares underperforming as Europe faces weaker growth prospects.  The company’s forward earnings multiple has decreased from 13x to 8x in 2022 which suggests ~40% earnings deterioration.  While Deutsche Post may experience a cyclical decline in earnings, we are confident in the quality of the logistics infrastructure the company has built and the difficulty for new entrants to replicate. Communication Services and Financials were top contributors to relative performance during the period, helped by strong performance across portfolio holdings in both sectors.
Within Financials, ICICI Bank Ltd. was the largest positive contributor within the sector and the overall portfolio, followed by Intact Financial Corp., and OCBCBank. ICICI Bank continues to execute well as one of India’s largest financial institutions.  Deposit and Loan growth of over 15% and ROE of 15% operating in an underbanked market, ICICI should reflect the growth opportunity of the Indian economy. Intact Financial Corp. is the leading Canadian property and casualty insurer and is currently in the process of integrating the acquisition of RSA Insurance Group, which will fortify their position in the U.K. and Ireland.  Strong underwriting has led to double-digit net operating income per share and strategic capital deployment. OCBC Bank is a diversified Singapore listed financial institution with $349 billion in customer deposits with nearly half of the company’s business profits generated from Singapore and 16% from Malaysia. We believe OCBC’s geographical exposure provides insulation from global macro headwinds.
The strategy initiated positions in TotalEnergies SE, Volkswagen AG, and The London Stock Exchange. The Fund exited Enel SpA, Vonovia SE, Tele2 AB, Continental AG, Scor SE and E-Mart Inc. to fund more attractive opportunities.
Outlook and Conclusion
Energy insecurity is creating challenges for Europe as the spike in energy costs negatively impact disposable income and industrial activity.  Reflecting this uncertainty, the European market is currently trading at 10.7x forward earnings or 65% of the U.S. market multiple, a 10-year low.  Despite these headwinds, the energy crisis in Europe will create opportunities for companies involved in energy transition and efficiency, an area that the Fund’s portfolio is exposed to.  In the U.S., we believe the risk of a recession remains low given the resilient job market.  Recent data points also suggest that inflation has inflected downwards, and we believe it is likely that the Fed hiking cycle is nearing an end. Valuations have compressed across most sectors, and we are finding more investment opportunities. With major equity markets down in excess of 25% this year, the market is already pricing in an earnings deterioration in the coming quarters, and we will look to take advantage of stock dislocations to add undervalued businesses into the portfolio.
The Fund continues to be overweight Financials as the combination of positive interest rate sensitivity, company-specific opportunities, and improving fundamentals we believe will benefit our holdings. The sector holdings are comprised of a mix of life insurers, consumer finance companies, banks, property and casualty insurers, and other diversified financials that we believe are attractively valued. The Fund continues to own strong industrial franchises at attractive valuations where the macro risks surrounding global growth are impacting the share price performance, but we believe that these companies stand to benefit when global growth inflects positively. The strategy continues to be underweight Utilities and Materials. The underweighting in Consumer Staples has not changed. Valuations are generally expensive as investors have flocked to Staples as a defensive sector, choosing to trade off paying premium prices for perceived business stability, which we believe is incorrect. Fundamentals are weakening as aggressive pricing actions cannot forever offset rising costs and declining volumes.
22

Management's Discussion of Fund Performance (Unaudited) (Continued)
Comparison of the Change in Value of a $10,000 Investment in the Touchstone International ESG Equity Fund - Class A* and the MSCI All Country World Ex-USA Index
Average Annual Total Returns**
Touchstone International ESG Equity Fund 1 Year 5 Years 10 Years
Class A -33.20% -1.50% 3.45%
Class C -30.82% -1.05% 3.45%
Class Y -29.43% -0.06% 4.33%
Institutional Class* -29.41% -0.03% 4.34%
MSCI All Country World Ex-USA Index -25.17% -0.81% 3.01%
* The chart above represents performance of Class A shares only, which will vary from the performance of Class C shares, Class Y shares and Institutional Class shares based on the differences in sales loads and fees paid by shareholders in the different classes. The inception date of Institutional Class shares was August 23, 2019. Institutional Class shares’ performance was calculated using the historical performance of Class A shares for the periods prior to August 23, 2019. The returns have been restated for sales loads and fees applicable to Institutional Class shares.
** The average annual total returns shown above are adjusted for maximum sales loads and fees, if applicable. The maximum offering price per share of Class A shares is equal to the net asset value (“NAV”) per share plus a sales load equal to 5.26% of the NAV (or 5.00% of the offering price). Class C shares are subject to a contingent deferred sales charge (“CDSC”) of 1.00%. The CDSC will be assessed on an amount equal to the lesser of (1) the NAV at the time of purchase of the shares being redeemed or (2) the NAV of such shares being redeemed, if redeemed within a one-year period from the date of purchase. Class Y shares and Institutional Class shares are not subject to sales charges.
The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Notes to Chart
MSCI All Country World Ex-USA Index is an unmanaged capitalization-weighted index composed of companies representative of both developed and emerging markets, excluding the USA.
MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used to create indices or financial products. This report is not approved or produced by MSCI.
23

Management's Discussion of Fund Performance (Unaudited)
Touchstone Mid Cap Fund
Sub-Advised by The London Company
Investment Philosophy
The Touchstone Mid Cap Fund (the “Fund”) seeks long-term capital growth by investing primarily in common stocks of mid-cap U.S.-listed companies. The Fund utilizes a bottom-up security selection process that screens potential investments against a proprietary quantitative model for return on capital, earnings-to-enterprise value ratio, and free cash flow yield. Its goal is to purchase financially stable companies that are believed to consistently generate high returns on unleveraged operating capital, are run by shareholder-oriented managements and are trading at a discount to their respective private market values.
Fund Performance
The Touchstone Mid Cap Fund (Class A Shares) outperformed its benchmark, the Russell Midcap® Index, for the 12-month period ended September 30, 2022. The Fund’s total return was -14.13 percent (calculated excluding the maximum sales charge) while the benchmark’s total return was -19.39 percent.
Market Environment
For the 12-month period ending September 30, 2022, the major US stock indices declined.  The first three months of the period were relatively strong reflecting reasonably strong economic growth and an accommodative monetary policy.  As the period progressed, fears over the Omicron wave of COVID-19, the invasion of Ukraine by Russia, fears of rising inflation and more hawkish comments and actions from the U.S. Federal Reserve Board (“Fed’) would impact the economy and cause broad based selling in the equity markets. 
The Omicron strain of COVID-19 emerged late in 2021 and in February 2022, Russia invaded Ukraine, both of which have further constrained supply chains and stoked inflation.  With regard to monetary policy, a strong labor market combined with high inflation resulted in a shift toward tighter monetary policy earlier in the year from the Fed.
The war in Ukraine has also caused Energy prices to spike with the price of crude oil moving from $70-80 per barrel pre-invasion to a high of approximately $130 post invasion.  It has since settled out to the $85-100 range.  This caused the Energy sector to be far and away the strongest sector during the period. Another strong sector was Utilities.  All other sectors were negative for the period, with the weakest being Communication Services and Consumer Discretionary.
In terms of factors impacting stocks during the period, Value (except for low price to book), Yield, Quality (except for lower leverage), Size, and Momentum factors were the strongest.  Volatility was the only group where the factors consistently performed poorly.  Growth factors underperformed with the exception of dividend growth and while Quality overall was strong, companies with weaker balance sheets (more leverage) did better.
Portfolio Review
The weakest quarter in the period was the period from March 31 to June 30, 2022 and not surprisingly; this is where most of the outperformance for the period came from.  We saw the Fund’s relative performance improve as the downturn progressed and should it continue, we believe investors will focus more on higher quality factors like return on capital, consistency of cash flow, and balance sheet flexibility.
During the period, both sector allocation and stock selection benefited relative performance, but stock selection was the predominant driver.  At the sector level, an overweight position in Consumer Staples and an underweight position in Communication Services had a positive impact on relative performance, partially offset by and underweight positions in both Energy and Utilities.
In terms of stock selection, the best performing stocks based on relative performance versus the benchmark during the period were Lamb Weston Holding Inc. (Consumer Staples sector), Dollar Tree, Inc. (Consumer Discretionary sector), Alleghany Corp. (Financials sector), M&T Bank Corp. (Financials sector), and Post Holdings, Inc. (Consumer Staples sector).
The more challenged positions in the period were CarMax Inc. (Consumer Discretionary sector), Skyworks Solutions Inc. (Information Technology sector), Moelis & Co. (Financials sector), Entegris, Inc. (Information Technology sector), and Ball Corp. (Materials sector).  Over the period we opened new positions in Lennox International Inc. (Industrials sector), BellRing Brands Inc. (Via Spinoff Post Holdings Inc.; Consumer Staples sector), and AerCap Holdings (Industrials sector) while we sold Haemonetics Corp. (Health Care sector) and Sensata Technologies Holding plc (Industrials sector).
24

Management's Discussion of Fund Performance (Unaudited) (Continued)
Outlook and Conclusion
Looking ahead, as the Fed attempts to navigate a soft landing, economic growth may continue to decelerate.  With persistently higher than desired inflation combined with a tight labor market, additional rate hikes are likely before year-end, while Quantitative Tightening will continue.  This more restrictive monetary policy will continue to influence the economy.  We recognize the lagged impact of monetary policy on the broader economy, so the odds of a recession over the next 12-18 months remain elevated.
On a positive note, the U.S. consumer remains in reasonably good shape. Unemployment is low, wages are rising, and there are still excess savings remaining from the pandemic. With consumer spending such an important part of U.S. gross domestic product (GDP), the strong labor market could limit the downside risk to the economy over the next few months. Longer term, we remain positive on the U.S. economy and expect real GDP growth in the 2-3% range driven by growth in the labor force and improving productivity.
Longer term, we continue to believe that quality attributes and solid company fundamentals will benefit the portfolio over time. The companies in the Fund have historically generated higher returns on capital, had stronger balance sheets, and traded at reasonable valuations relative to the broader market.
We believe the quality of the Fund’s portfolio positions it well for the next few years, even if the market trades modestly higher. In an environment of possibly lower expected returns and greater volatility, we believe it offers an attractive option for equity investors. Our goal remains to outperform the broader market over full market cycles with less volatility.
25

Management's Discussion of Fund Performance (Unaudited) (Continued)
Comparison of the Change in Value of a $10,000 Investment in the Touchstone Mid Cap Fund - Class A* and the Russell Midcap® Index
Average Annual Total Returns**
Touchstone Mid Cap Fund 1 Year 5 Years 10 Years
Class A -18.43% 6.27% 9.83%
Class C -15.54% 6.75% 9.82%
Class Y -13.87% 7.81% 10.77%
Class Z -14.12% 7.53% 10.48%
Institutional Class -13.82% 7.90% 10.85%
Class R6* -13.76% 7.86% 10.79%
Russell Midcap® Index -19.39% 6.48% 10.30%
* The chart above represents performance of Class A shares only, which will vary from the performance of Class C shares, Class Y shares, Class Z shares, Institutional Class shares and Class R6 shares based on the differences in sales loads and fees paid by shareholders in the different classes. The inception date of Class R6 shares was February 22, 2021. Class R6 shares performance was calculated using the historical performance of Class Y shares for the periods prior to February 22, 2021. The returns have been restated for sales loads and fees applicable to Class R6 shares.
** The average annual total returns shown above are adjusted for maximum sales loads and fees, if applicable. The maximum offering price per share of Class A shares is equal to the net asset value (“NAV”) per share plus a sales load equal to 5.26% of the NAV (or 5.00% of the offering price). Class C shares are subject to a contingent deferred sales charge (“CDSC”) of 1.00%. The CDSC will be assessed on an amount equal to the lesser of (1) the NAV at the time of purchase of the shares being redeemed or (2) the NAV of such shares being redeemed, if redeemed within a one-year period from the date of purchase. Class Y shares, Class Z shares, Institutional Class shares and Class R6 shares are not subject to sales charges.
The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Notes to Chart
Russell Midcap® Index measures the performance of the 800 smallest companies in the Russell 1000® Index.
The Frank Russell Company (FRC) is the source and owner of the Index data contained or reflected in this material and all trademarks and copyrights related thereto. The material may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a Touchstone Investments presentation of the data, and FRC is not responsible for the formatting or configuration of this material or for any inaccuracy in the presentation thereof.
26

Management's Discussion of Fund Performance (Unaudited)
Touchstone Mid Cap Value Fund
Sub-Advised by Leeward Investments, LLC
Investment Philosophy
The Touchstone Mid Cap Value Fund seeks capital appreciation by investing primarily in common stocks of medium capitalization companies. The Fund seeks to identify companies believed to be selling at a discount to their intrinsic value.
Fund Performance
The Touchstone Mid Cap Value Fund (Class A Shares) outperformed its benchmark, the Russell Midcap® Value Index, for the 12-month period ended September 30, 2022. The Fund’s total return was -9.04 percent (calculated excluding the maximum sales charge) while the benchmark’s total return was -13.56 percent.
Market Environment
The market environment created a mixed backdrop for the team’s investment process in the trailing 12-month period ending September 30, 2022. Quality and stability were rewarded, and factor data implies a bias toward defensive and stable characteristics. Low beta stocks have meaningfully outperformed high beta stocks, and stocks with higher yields have far outpaced stocks with zero yield. Companies with lower foreign sales have fared better than companies with greater foreign sales, a logical outcome given the events of the year on the geopolitical stage and, among other things, the enduring ripple effects of Russia’s invasion of Ukraine. The best performing sector in the benchmark over the last twelve months was Energy. Notable underperformers of the benchmark’s overall return in the period were Communication Services, Consumer Discretionary and Information Technology.
Portfolio Review
Performance was driven by strong stock selection and positive sector allocation. The portfolio had positive sector and stock contribution in eight out of eleven sectors in the period.
The best sector on a relative basis was Consumer Discretionary, led by strength in retailer Dollar Tree Inc. The portfolio also benefitted from having no exposure to the Consumer Services segment, which declined.  Relative performance in the Industrials sector was helped by the portfolio’s overweight position in Regal Rexnord Corp.  Regal Rexnord’s modestly positive return in the period outpaced results of the sector as a whole. The motion control manufacturer rebounded following an investor day highlighting faster top-line growth and continued margin expansion.  No exposure to the Transportation segment in Industrials, along with no exposure to the Communications Services sector also helped relative performance.
Stock selection was weaker in the Information Technology sector.  Rackspace Technology Inc. and Qorvo Inc. were the largest detractors.  Rackspace has been plagued with operational challenges and given another change in their strategic direction (and an extension in the duration of their turnaround), we exited the position in third-quarter 2022. Qorvo sells products for wireless handsets and infrastructure, and COVID-19 lockdowns in China have intensified worries about the supply chain disruption for Apple and Android handsets.
Outlook and Conclusion
Despite declining performance for much of the past 12-months, global financial markets face several potential pitfalls.  The U.S. Federal Reserve Board continues to fight inflation with interest rate hikes, dramatically increasing the odds of a recession.  Some early signs of price stabilization are evident, gasoline, freight, and base commodities have all declined from their highs, but employment remains tight, and wages tend to be sticky.  China’s COVID-19 policies have created continued speed bumps for global supply chains and demand remains lumpy.  The situation in Ukraine continues to have extensive impacts.  Europe’s economy is struggling as a slow recovery from the pandemic is being further stalled by record high energy prices and a constrained consumer. Notwithstanding these headwinds, earnings estimates have stayed resilient, and the market has yet to have the capitulation event that so often characterizes downturns. 
 Despite these market dynamics, we continue to hold fast and invest according to our process.  Fundamentally we are looking for quality stocks, trading at a discount, with good risk/reward.  We look for companies with strong management teams, high barriers to entry, solid balance sheets, and we continue to rigorously examine downside scenarios for our positions.  We continue to find what we believe are attractively valued investment opportunities with favorable risk/reward profiles.  While we do not believe in making short term projections, we believe these investments will outperform the market longer term.
27

Management's Discussion of Fund Performance (Unaudited) (Continued)
Comparison of the Change in Value of a $10,000 Investment in the Touchstone Mid Cap Value Fund - Class A* and the Russell Midcap® Value Index
Average Annual Total Returns**
Touchstone Mid Cap Value Fund 1 Year 5 Years 10 Years
Class A -13.57% 3.36% 8.51%
Class C -10.58% 3.82% 8.50%
Class Y -8.81% 4.85% 9.42%
Institutional Class -8.68% 5.00% 9.57%
Russell Midcap® Value Index -13.56% 4.76% 9.44%
* The chart above represents performance of Class A shares only, which will vary from the performance of Class C shares, Class Y shares and Institutional Class shares based on the differences in sales loads and fees paid by shareholders in the different classes.
** The average annual total returns shown above are adjusted for maximum sales loads and fees, if applicable. The maximum offering price per share of Class A shares is equal to the net asset value (“NAV”) per share plus a sales load equal to 5.26% of the NAV (or 5.00% of the offering price). Class C shares are subject to a contingent deferred sales charge (“CDSC”) of 1.00%. The CDSC will be assessed on an amount equal to the lesser of (1) the NAV at the time of purchase of the shares being redeemed or (2) the NAV of such shares being redeemed, if redeemed within a one-year period from the date of purchase. Class Y shares and Institutional Class shares are not subject to sales charges.
The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Notes to Chart
Russell Midcap® Value Index measures the performance of those Russell Midcap companies with lower price-to-book ratios and lower forecasted growth values.
The Frank Russell Company (FRC) is the source and owner of the data contained or reflected in this material and all trademarks and copyrights related thereto. The material may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a Touchstone Investments presentation of the data, and FRC is not responsible for the formatting or configuration of this material or for any inaccuracy in the presentation thereof.
28

Management's Discussion of Fund Performance (Unaudited)
Touchstone Sands Capital Select Growth Fund
Sub-Advised by Sands Capital Management, LLC
Investment Philosophy
The Touchstone Sands Capital Select Growth Fund (the “Fund”) seeks long-term capital appreciation by primarily investing in common stocks of large capitalization U.S. companies that are believed to have above-average potential for revenue or earnings growth. The Fund typically invests in 25 to 35 companies. Sands Capital generally seeks stocks with sustainable above-average earnings growth and capital appreciation potential. In addition, Sands Capital looks for companies that have a significant competitive advantage, a leadership position or proprietary niche, a clear mission in an understandable business, financial strength and are valued rationally in relation to comparable companies, the market and the business prospects for that particular company.
Fund Performance
The Touchstone Sands Capital Select Growth Fund (Class A shares) underperformed its benchmark the Russell 1000® Growth Index for the 12-month period ended September 30, 2022. The Fund’s total return was -54.73 percent (calculated excluding the maximum sales charge) while the total return of the benchmark was -22.59 percent.
Market Environment
U.S. growth equities (as measured by the Russell 1000® Growth Index) suffered from a historically aggressive rate hiking cycle in response to persistently elevated inflation. The drawdown in growth equities began in November 2021, with the high valuation businesses early in their profit cycle often seeing losses well in excess of the benchmark. The sell-off was broad-based with nine of eleven GICs sectors experiencing declines and the average index constituent well off its 52-week high.
Portfolio Review
Security selection was the primary driver of underperformance over the period. Selection detracted from relative results across the six sectors where the strategy held exposure, yet businesses held in the Communication Services and Information Technology sectors accounted for the bulk of the impact. Over this period, the significant tightening of financial conditions disproportionately affected the high growth, high valuation businesses that composed a portion of our portfolio and weighed on stock selection. Sector allocation was a modest detractor from results due to the overweight to the Communication Services sector.
The top five individual absolute contributors for the period were Sarepta Therapeutics Inc. (Health Care sector), CoStar Group Inc. (Industrials sector), Zillow Group Inc. (Real Estate sector), Datadog Inc.(Information Technology sector), and Zoetis Inc. (Health Care sector). The top five detractors were Sea Limited (Communication Services sector), Block Inc. (Information Technology sector), Match Group Inc. (Communication Services sector), Shopify Inc. (Information Technology sector), and ServiceNow Inc. (Information Technology sector).
The Fund’s sector exposures are largely a byproduct of our bottom-up investment process and remained largely the same over the period. Information Technology sector exposure remained the portfolio’s largest absolute weight. Communication Services sector exposure remained the largest relative weight, yet our absolute weighting in the sector is roughly half its level from a year ago. The portfolio has no exposure to the Consumer Staples, Energy, Financials, Materials, Real Estate, and Utilities sectors.
Over the course of the period, the Fund’s high growth, high valuation businesses were impacted by the market sell-off to a greater degree than its growth compounder businesses. As a result, the Fund has taken investment actions to add to many high growth, high valuation businesses that we believe have seen disproportionate declines in share price, relative to our long-term fundamental outlook. Semiconductors represents one industry we have increased exposure through the addition of NVIDIA Corp. and Datadog. We remain underweight the industry yet to a lesser degree than 12 months ago.
Turnover for the period of 25 percent was in-line with its five-year average. The market drawdown and elevated volatility of high growth, high valuation businesses created opportunities for us to shed businesses that we viewed as more mature and understood by the market, while adding and/or purchasing businesses that we believe have seen share price declines that are not commensurate with our long-term expectations for earnings growth.
Outlook and Conclusion
Volatility remains high, and the mid-August market pivot shows how quickly sentiment—and markets—can change. Rather than trying to guess the market’s next move in the near-term, we remain focused on corporate fundamentals, which history demonstrates to be the primary driver of long-term returns.
29

Management's Discussion of Fund Performance (Unaudited) (Continued)
We have stress tested and re-evaluated our investment cases given the turbulent economic and market environment, and are confident that the businesses we own remain well positioned to deliver above-average growth over the next five years.
Below are some examples of the secular drivers underpinning the growth of our portfolio businesses:
Emerging Internet Leaders
Digitalization of the economy continues, and the next generation of internet businesses are disrupting the status quo by reducing transactional frictions, increasing transparency, and eliminating inefficiencies. These companies are focusing on large verticals and building industry-specific solutions that result in a better customer experience while reinforcing their competitive moats. Portfolio beneficiaries include Airbnb Inc. (Consumer Discretionary sector), CoStar Group Inc. (Industrials sector), Match Group Inc. (Communication Services sector), and Uber Technologies Inc. (Technology sector).
Financial Services Digitalization
The combination of modern technology and disruptive customer acquisition models are fundamentally re-architecting how financial products are designed, manufactured, and distributed, with software displacing paper and bank branches in each stage of the process. New technologies are enabling broader access to basic financial products and adding innovative layers of intelligence and automation. We see value accruing to both companies creating a new generation of digitally native financial infrastructure as well as companies leveraging that infrastructure to build differentiated experiences for end users. Portfolio beneficiaries include Block Inc. (Information Technology sector), Intuit Inc. (Information Technology sector), Sea Ltd. (Consumer Discretionary sector), and Visa (Information Technology sector).
Life Sciences Innovation
Over the next decade, we view genes and genomics, minimally invasive technologies, consumerization of health care, the humanization of pets, and globalization of innovation as the most important secular trends in life sciences. We focus on investing in businesses that are changing the standard-of-care, providing best-in-class “picks and shovels” to biopharma and life science researchers, and meaningfully improving access and cost in healthcare delivery. Portfolio beneficiaries include Align Technology Inc. (Health Care sector), Dexcom (Health Care sector), Edwards Lifesciences (Health Care sector), and Sarepta(Health Care sector).
Shifting IT Spend from Maintenance to Agility
Information technology spending continues to shift toward innovations that make enterprises more agile and efficient. In the last decade, cloud-based software disrupted legacy, on-premise systems within well-defined market opportunities. The next generation of SaaS leaders is enabling new businesses and processes, serving as the enablers of an increasingly digital-first economy. These businesses are often typified by user-driven adoption, consumption-based licensing, and competitive advantages driven by network effects and ecosystem partners. Portfolio beneficiaries include Atlassian Corp. (Information Technology sector), Cloudflare Inc. (Information Technology sector), ServiceNow Inc. (Information Technology sector), and Snowflake Inc. (Information Technology sector).
The primary risk the Fund seeks to manage is permanent loss of capital resulting from a negative business or investment outcome. Since earnings growth tends to drive stock-price returns over the long term, we closely monitor factors that could erode the underlying earnings power of the Fund's businesses. We also seek to mitigate opportunity cost, as failing to invest in value-creating businesses is also detrimental to long-term results. In both cases, we believe that our six investment criteria are our most powerful risk management tool, as they are designed to help us identify those businesses most likely to sustainably generate above-average growth over our investment horizon.
In the near term, we expect inflation, and subsequently, monetary policy to continue to have an outsized influence on investment results.  A significant amount of uncertainty exists around the terminal level of the Federal Funds rate. As a result, markets have seen dramatic swings in style leadership as expectations for monetary policy have rapidly evolved, with investors favoring businesses with slower growth and strong cash flow over earlier-stage growth businesses.
The poor sentiment in equity markets conflicts with the recent earnings results and long-term outlook of our businesses, in our view. The volatile operating environment induced by the distortions of the COVID-19 pandemic and fiscal stimulus has led us to re-underwrite each portfolio holding. In most cases, our long-term earnings expectations are unchanged.
We believe this disconnect between market sentiment and business fundamentals presents an opportunity. Valuations are now back to long-term averages, driving our expected returns to multi-year highs. Importantly, from these levels we expect earnings growth, rather than changes in valuation, to be the primary driver of share price results. We remain confident the businesses in the Fund's portfolio will deliver above-average earnings growth, and in our view, the increasingly challenging macro-economic environment presents an opportunity for the Fund's businesses to improve their competitive position and emerge stronger.
30

Management's Discussion of Fund Performance (Unaudited) (Continued)
We have long invested the Fund in businesses that are driving and/or benefiting from digitalization, and the pandemic has accelerated this shift. We expect digitization will proliferate faster than previous technology-driven shifts (e.g. the telephone, electricity, personal computers), and with unprecedented scale, touching nearly every aspect of commerce and daily life. Businesses can reach more customers faster than ever, a dynamic that we expect will lead to quicker margin expansion for the select few businesses driving and/or benefiting from the digital shift.
Comparison of the Change in Value of a $10,000 Investment in the Touchstone Sands Capital Select Growth Fund - Class A* and the Russell 1000® Growth Index
Average Annual Total Returns**
Touchstone Sands Capital Select Growth Fund 1 Year 5 Years 10 Years
Class A -56.99% 3.18% 7.53%
Class C -55.41% 3.63% 7.52%
Class Y -54.59% 4.68% 8.44%
Class Z -54.73% 4.40% 8.16%
Institutional Class* -54.58% 4.55% 8.24%
Class R6* -54.58% 4.55% 8.24%
Russell 1000® Growth Index -22.59% 12.17% 13.70%
* The chart above represents performance of Class A shares only, which will vary from the performance of Class C shares, Class Y shares, Class Z shares, Institutional Class shares and Class R6 shares based on the differences in sales loads and fees paid by shareholders in the different classes. The inception date of Institutional Class shares and Class R6 shares was September 1, 2020. Institutional Class shares' and Class R6 shares' performance was calculated using the historical performance of Class Z shares for the periods prior to September 1, 2020. The returns have been restated for sales loads and fees applicable to Institutional Class and Class R6 shares.
** The average annual total returns shown above are adjusted for maximum sales loads and fees, if applicable. The maximum offering price per share of Class A shares is equal to the net asset value (“NAV”) per share plus a sales load equal to 5.26% of the NAV (or 5.00% of the offering price). Class C shares are subject to a contingent deferred sales charge (“CDSC”) of 1.00%. The CDSC will be assessed on an amount equal to the lesser of (1) the NAV at the time of purchase of the shares being redeemed or (2) the NAV of such shares being redeemed, if redeemed within a one-year period from the date of purchase. Class Y shares, Class Z shares, Institutional Class shares and Class R6 shares are not subject to sales charges.
The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Notes to Chart
Russell 1000® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.
The Frank Russell Company (FRC) is the source and owner of the data contained or reflected in this material and all trademarks and copyrights related thereto. The material may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a Touchstone Investments presentation of the data, and FRC is not responsible for the formatting or configuration of this material or for any inaccuracy in the presentation thereof.
31

Management's Discussion of Fund Performance (Unaudited)
Touchstone Small Cap Fund
Sub-Advised by The London Company
Investment Philosophy
The Touchstone Small Cap Fund (the “Fund”) seeks capital appreciation by investing primarily in common stocks of U.S. companies with small market capitalizations. The Fund utilizes a bottom-up security selection process that screens potential investments against a proprietary quantitative model for return on capital, earnings-to-enterprise value ratio, and free cash flow yield.  Its goal is to purchase financially stable companies that are believed to consistently generate high returns on unleveraged operating capital, are run by shareholder-oriented managements and are trading at a discount to their respective private market values.
Fund Performance
The Touchstone Small Cap Fund (Class A Shares) outperformed its benchmark, the Russell 2000® Index, for the 12-month period ended September 30, 2022. The Fund’s total return was -10.75 percent (calculated excluding the maximum sales charge) while the benchmark’s total return was -23.50 percent.
Market Environment
For the 12-month period ending September 30, 2022, the major U.S. stock indices declined.  The first three months of the period was relatively strong reflecting reasonably strong economic growth and an accommodative monetary policy.  As the period progressed, fears over the Omicron wave of COVID-19, the invasion of Ukraine by Russia, fears of rising inflation and more hawkish comments and actions from the U.S. Federal Reserve Board (“Fed”) would impact the economy and cause broad based selling in the equity markets. 
The Omicron strain of COVID-19 emerged late in 2021 and in February 2022, Russia invaded Ukraine, both of which have further constrained supply chains and stoked inflation.  With regard to monetary policy, a strong labor market combined with high inflation resulted in a shift toward tighter monetary policy earlier in the year from the Fed.
The war in Ukraine has also caused Energy prices to spike with the price of crude oil moving from $70-80 per barrel pre-invasion to a high of approximately $130 post invasion.  It has since settled out to the $85-100 range.  This caused the Energy sector to be the strongest sector during the period. Another strong sector was Utilities.  All other sectors were negative for the period, with the weakest being Communication Services and Consumer Discretionary.
In terms of factors impacting stocks during the period, Value (except for low price to book), Yield, Quality (except for lower leverage), Size, and Momentum factors were the strongest.  Volatility was the only group where the factors consistently performed poorly.  Growth factors underperformed with the exception of dividend growth and while Quality overall was strong, companies with weaker balance sheets (more leverage) did better.
Portfolio Review
The strongest sectors for the market in the period were Energy and Utilities.  All other sectors were negative for the period with the weakest being Communication Services and Consumer Discretionary.
The weakest quarter in the period was the period from March 31 to June 30, 2022 and not surprisingly; this is where most of the outperformance for the period came from.  We saw the Fund’s relative performance improve as the downturn progressed and should it continue, we believe investors will focus more on higher quality factors like return on capital, consistency of cash flow, and balance sheet flexibility.
Both sector allocation and stock selection contributed to relative performance; stock selection was the predominant driver.  At the sector level, an underweight position in Health Care and an overweight position in Industrials had a positive impact on relative performance, partially offset by an underweight position in Energy and an overweight position in the Consumer Discretionary sector.
In terms of stock selection, the best performing stocks based on relative performance were Murphy USA Inc. (Consumer Discretionary sector), White Mountains Insurance Group Ltd. (Financials sector), Qualys  Inc. (Information Technology sector), GCP Applied Technologies Inc. (Materials sector), and CTS Corporation (Information Technology sector).
The more challenged positions based on relative performance were Tempur Sealy International Inc. (Consumer Discretionary sector), Moelis & Co. (Financials sector), LivaNova plc (Health Care sector), Cannae Holdings Inc. (Financials sector), and Masonite International Corp.(Industrials sector).
32

Management's Discussion of Fund Performance (Unaudited) (Continued)
Over the period, we opened Fund positions in Hanover Insurance Group Inc. (Financials sector), IAA Inc. (Industrials sector), Vontier Corp. (Information Technology sector), and Lancaster Colony Corporation (Consumer Staples sector) while we sold Energizer Holdings Inc. (Industrials sector), Tejon Ranch Co. (Real Estate sector), Mantech International Corp. (Industrials sector), and Kaman Corp. (Industrials sector).
Outlook and Conclusion
Looking ahead, as the Fed attempts to navigate a soft landing, economic growth may continue to decelerate.  With persistently higher than desired inflation combined with a tight labor market, additional rate hikes are likely before year-end, while Quantitative Tightening will continue.  This more restrictive monetary policy will continue to influence the economy.  We recognize the lagged impact of monetary policy on the broader economy, so the odds of a recession over the next 12-18 months remain elevated.
On a positive note, the U.S. consumer remains in reasonably good shape.  Unemployment is low, wages are rising, and there are still excess savings remaining from the pandemic.  With consumer spending such an important part of U.S. gross domestic product (GDP), the strong labor market could limit the downside risk to the economy over the next few months.  Longer term, we remain positive on the U.S. economy and expect real GDP growth in the 2-3% range driven by growth in the labor force and improving productivity.
Longer term, we continue to believe that quality attributes and solid company fundamentals will benefit the portfolio over time. The companies in the Fund have historically generated higher returns on capital, had stronger balance sheets, and traded at reasonable valuations relative to the broader market.
We believe the quality of the Fund’s portfolio positions it well for the next few years, even if the market trades modestly higher.  In an environment of possibly lower expected returns and greater volatility, we believe it offers an attractive option for equity investors.  Our goal remains to outperform the broader market over full market cycles with less volatility.
33

Management's Discussion of Fund Performance (Unaudited) (Continued)
Comparison of the Change in Value of a $10,000 Investment in the Touchstone Small Cap Fund - Class A* and the Russell 2000® Index
Average Annual Total Returns**
Touchstone Small Cap Fund 1 Year 5 Years 10 Years
Class A -15.22% 3.61% 5.47%
Class C -12.22% 4.08% 5.48%
Class Y -10.58% 5.10% 6.37%
Institutional Class -10.52% 5.20% 6.46%
Russell 2000® Index -23.50% 3.55% 8.55%
* The chart above represents performance of Class A shares only, which will vary from the performance of Class C shares, Class Y shares and Institutional Class shares based on the differences in sales loads and fees paid by shareholders in the different classes.
** The average annual total returns shown above are adjusted for maximum sales loads and fees, if applicable. The maximum offering price per share of Class A shares is equal to the net asset value (“NAV”) per share plus a sales load equal to 5.26% of the NAV (or 5.00% of the offering price). Class C shares are subject to a contingent deferred sales charge (“CDSC”) of 1.00%. The CDSC will be assessed on an amount equal to the lesser of (1) the NAV at the time of purchase of the shares being redeemed or (2) the NAV of such shares being redeemed, if redeemed within a one-year period from the date of purchase. Class Y shares and Institutional Class shares are not subject to sales charges.
The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Notes to Chart
Russell 2000® Index measures the performance of the small-cap segment of the U.S. equity universe.
The Frank Russell Company (FRC) is the source and owner of the data contained or reflected in this material and all trademarks and copyrights related thereto. The material may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a Touchstone Investments presentation of the data, and FRC is not responsible for the formatting or configuration of this material or for any inaccuracy in the presentation thereof.
34

Management's Discussion of Fund Performance (Unaudited)
Touchstone Small Cap Value Fund
Sub-Advised by Leeward Investments, LLC
Investment Philosophy
The Touchstone Small Cap Value Fund (the "Fund") seeks long-term capital growth by investing primarily in common stocks of small capitalization companies. The Fund seeks to identify companies believed to be selling at a discount to their intrinsic value.
Fund Performance
The Touchstone Small Cap Value Fund (Class A Shares) outperformed its benchmark, the Russell 2000® Value Index, for the 12-month period ended September 30, 2022. The Fund’s total return was -11.04 percent (calculated excluding the maximum sales charge) while the benchmark’s total return was -17.69 percent.
Market Environment
The market environment created a mixed backdrop for the team’s investment process in the trailing 12-month period ending September 30, 2022. The tailwinds toward the close of 2021 were followed by an environment in 2022 marked by crosscurrents and market shifts.
The best performing sector in the benchmark over the last twelve months was Energy. Notable underperformers of the benchmark’s overall return of -17.69% in the period were Communication Services, Health Care, and Consumer Discretionary.
Portfolio Review
The Fund’s larger size versus the benchmark helped performance, along with low exposure to the lowest return on equity quintile and a bias toward lower beta.
Performance was primarily driven by strong stock selection, as well as contributions for  sector allocation. The best performing sector on a relative basis was Materials, led by strength in Livent Corp. and Cabot Corp. Livent continued to produce strong results: the company has raised guidance on better-than-expected price realization and has announced plans to increase capacity. Cabot posted strong results and raised fiscal year guidance on its fiscal first quarter call. Industry capacity is tight, and Cabot experienced strong pricing that more than covered inflationary costs. Its conductive carbon products are gaining share in electric vehicle batteries and are driving faster than expected growth. Outperformance in Consumer Discretionary was concentrated in Murphy USA Inc. The company announced a $1B stock buyback late in 2021, and its fuel business continued to benefit from a higher level of normalized earnings power. The company also benefitted from the rollout of its loyalty program, which drives traffic even during periods of economic distress. The Fund’s underweight to Communication Services helped relative performance, and as meme stocks have fallen in and out of favor, not owning AMC Entertainment provided a boost to trailing 12-month returns.  
Energy was the largest detractor by sector in the Fund, and the portfolio’s underweight accounted for much of the shortfall. The sector outperformed on strength in commodity prices, as investors worry supply will not be sufficient to meet demand.  The Financials sector also detracted, as strength in the Fund’s Insurance and Diversified Financials exposure wasn’t enough to offset weakness in banks.
Outlook and Conclusion
Despite declining performance for much of the past twelve months, global financial markets face several potential pitfalls. The U.S. Federal Reserve Board continues to fight inflation with interest rate hikes, dramatically increasing the odds of a recession.  Some early signs of price stabilization are evident, gasoline, freight, and base commodities have all declined from their highs, but employment remains tight, and wages tend to be sticky. China’s COVID policies have created continued speed bumps for global supply chains and demand remains lumpy. The situation in Ukraine continues to have extensive impacts.  Europe’s economy is struggling as a slow recovery from the pandemic is being further stalled by record high energy prices and a constrained consumer. Notwithstanding these headwinds, earnings estimates have stayed resilient, and the market has yet to have the capitulation event that so often characterizes downturns. 
Despite these market dynamics, we continue to hold fast and invest according to our process. Fundamentally, we are looking for quality stocks, trading at a discount, with good risk/reward. We look for companies with strong management teams, high barriers to entry, solid balance sheets, and we continue to rigorously examine downside scenarios for our positions. We continue to find what we believe are attractively valued investment opportunities with favorable risk/reward profiles. While we don’t believe in making short term projections, we believe these investments will outperform the market longer term.
35

Management's Discussion of Fund Performance (Unaudited) (Continued)
Comparison of the Change in Value of a $10,000 Investment in the Touchstone Small Cap Value Fund - Class A* and the Russell 2000® Value Index
Average Annual Total Returns**
Touchstone Small Cap Value Fund 1 Year 5 Years 10 Years
Class A -15.49% 2.52% 6.32%
Class C -12.61% 2.96% 6.31%
Class Y -10.81% 4.00% 7.22%
Institutional Class -10.67% 4.17% 7.38%
Russell 2000® Value Index -17.69% 2.87% 7.94%
* The chart above represents performance of Class A shares only, which will vary from the performance of Class C shares, Class Y shares and Institutional Class shares based on the differences in sales loads and fees paid by shareholders in the different classes.
** The average annual total returns shown above are adjusted for maximum sales loads and fees, if applicable. The maximum offering price per share of Class A shares is equal to the net asset value (“NAV”) per share plus a sales load equal to 5.26% of the NAV (or 5.00% of the offering price). Class C shares are subject to a contingent deferred sales charge (“CDSC”) of 1.00%. The CDSC will be assessed on an amount equal to the lesser of (1) the NAV at the time of purchase of the shares being redeemed or (2) the NAV of such shares being redeemed, if redeemed within a one-year period from the date of purchase. Class Y shares and Institutional Class shares are not subject to sales charges.
The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Notes to Chart
Russell 2000® Value Index measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.
The Frank Russell Company (FRC) is the source and owner of the data contained or reflected in this material and all trademarks and copyrights related thereto. The material may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a Touchstone Investments presentation of the data, and FRC is not responsible for the formatting or configuration of this material or for any inaccuracy in the presentation thereof.
36

Management's Discussion of Fund Performance (Unaudited)
Touchstone Ultra Short Duration Fixed Income Fund
Sub-Advised by Fort Washington Investment Advisors, Inc.
Investment Philosophy
The Touchstone Ultra Short Duration Fixed Income Fund (the “Fund”) seeks maximum total return consistent with the preservation of capital by primarily investing in a diversified portfolio of fixed income securities of different maturities, including U.S. Treasury securities, U.S. government agency and U.S. government-sponsored enterprise securities, corporate bonds, mortgage-backed securities, commercial mortgage-backed securities, asset-backed securities, municipal bonds and cash equivalent securities including repurchase agreements and commercial paper. While the Fund may invest in securities of any maturity or duration, interest rate risk is managed by seeking to maintain an effective duration of one year or less under normal market conditions.
Fund Performance
The Touchstone Ultra Short Duration Fixed Income Fund (Class A Shares) underperformed its primary benchmark, the ICE BofA 3-Month U.S. Treasury Bill Index, and outperformed its secondary benchmark, the ICE BofA 1-Year U.S. Treasury Note Index, for the 12-month period ended September 30, 2022. The Fund’s total return was -0.80 percent (calculated excluding the maximum sales charge) while the total returns of its benchmarks were 0.62 percent and -1.95 percent, respectively.
Market Environment
As we look back on the fiscal year ending September 30, 2022 for the Fund, the market environment today is unrecognizable compared with the environment from a year ago. The fourth quarter of 2021 saw markets eagerly processing every developing bit of information about COVID-19 vaccine efficacy. The worst of the Delta variant seemed to be subsiding, but it was followed closely by Omicron which seemed to pose an even-more-contagious threat. Inflation was top of mind as pandemic-related supply chain disruption was driving price increases, but “transitory” was the phrase of the day (which did not age well).
Ultra Short Duration markets offered a stable low-yield, tight-spread environment throughout 2021—a relatively calm beginning of the Fund’s fiscal year 2022. The short end of the Treasury curve was anchored near zero by the U.S. Federal Reserve Board’s (“Fed”) Funds rate, while the 10 Year Treasury yielded 1.50%. In December 2021, a decades-high 7% inflation point spooked markets, but given the arguably transient nature of pandemic-driven supply chain disruptions, it was widely expected to be the peak. Markets at the time expected inflation to moderate toward 2.5% by year-end. To the contrary, inflation continued to rise into the beginning of 2022, and the Fed finally began to pivot toward a monetary tightening outlook, expressing increasing concern about bringing inflation under control.
Meanwhile, geopolitical tensions had been escalating in Eastern Europe, culminating with Russia’s invasion of Ukraine on February 24, 2022. In addition to the humanitarian and ethical concerns surrounding the invasion, it also added to global inflationary pressures by disrupting energy and commodity markets. It was within this context that the Fed launched its monetary tightening effort with the first post-pandemic rate hike of 25 basis points in March, 2022.
The subsequent half of the Fund’s fiscal year was a game of cat-and-mouse as markets were perpetually surprised by the strength and persistence of inflationary pressure and labor market data in spite of the Fed’s escalating tightening efforts. Treasury rates increased and risk markets sold off as markets iteratively processed the reality that more-severe Fed tightening action that would be needed to get inflation under control. Aside from a brief risk-on tone during the beginning of the third quarter, risk markets have generally spent the fiscal year in a strong risk-off tone, with the S&P 500 Index down—having given back all of the gains from the prior calendar year 2021.
Over the course of the Fund’s fiscal year, the Fed has increased rates by a total of 300 basis points over the course of five meetings. Treasuries in the 6-12 month part of the curve are approximately 400 basis points higher year-over-year, while the 10-year Treasury is 230 basis points higher. In accord with risk assets in general, spreads across Ultra Short Duration subsectors widened out materially by 50-100 basis points off the historically-tight levels during 2021 to top-quartile (wide) levels as of the Fund’s fiscal year-end.
Portfolio Review
In an abnormally volatile fiscal year, significant increases in both interest rates and in spreads were key drivers of performance. Aside from 3-Month Treasury-Bills, markets offered almost no safe haven for investors over the past 12 months. The Fund maintained historically-low interest rate risk positioning around 0.50 years over the course of the fiscal year, with spread duration limited but
37

Management's Discussion of Fund Performance (Unaudited) (Continued)
generally stable around 1 year. While this helped minimize the impact of higher rates, wider spreads, and significant volatility throughout the year, it was an extremely challenging environment for any type of risk asset or fixed income product to produce positive returns.
Coming off the Fed’s Zero Interest Rate Policy environment was an exceptionally flat ultra short duration landscape (from both a rates and a spread perspective) at the beginning of the Fund’s fiscal year. This low-yield starting point provided very little cushion to absorb rate increases or spread widening without returns dipping below zero. Even so, the ultra-short space has provided a safe haven on a relative basis—considering, for example, that the selloff in the broader U.S. bond market overall has been the worst in history on a year-to-date basis.
Within the Fund, the sectors with the strongest nominal returns for the fiscal year were Commercial Mortgage-Backed Securities (CMBS), Agency Debenture and Asset- Backed Securities (ABS), while the worst returning subsectors were Residential Mortgage-Backed Securities (RMBS) -2.13%, Corporates -1.06%, and Collateralized Loan Obligation (CLO) +0.22%. Every major subsector outperformed its respective short duration ICE BoAML subsector index.
Duration positioning remained consistent around a half a year over the course of the Fund’s fiscal year, and credit quality was unchanged at AA-. ABS and CMBS exposure decreased, while CLO and RMBS exposure increased. These changes were made as a function of relative value opportunities within the market, and in response to our desire to maintain low duration positioning via floating rates securities.
The Fund is positioned at period end with duration of 0.53 years, which detracted from returns relative to the ICE BoAML 3-Month U.S. Treasury Bill Index, but enhanced returns relative to the ICE BofA 1-Year U.S. Treasury Note Index.
Changes in the yield curve had a dramatic effect on performance during the 12-month period. Treasury rates in the 6 month to 2-year part of the curve were nearly 400 basis points higher year-over-year. The portfolio has been able to absorb a remarkable amount of rate-driven negative mark-to-market price action while still providing a relative safe haven in comparison with other fixed income sectors or other risk assets.
Outlook and Conclusion
We are maintaining our strong bias toward Structured Products (CMBS, ABS, RMBS and CLOs) over corporate credit, favoring the structural protections, cash flow profile, and additional spread available for a given credit quality. We have also benefited from having had adequate liquidity within the Fund to satisfy all redemption activity organically (as designed) as opposed to some market participants who have been forced sellers in a “buyers’ market.” We have been able to capitalize on that dynamic, being a liquidity provider to market participants who are forced to pay the bid/ask spread.
We believe the greatest concern going forward pertains to the Fed’s ability to manage the inflation problem in the U.S., and whether they will be able to do so without pushing the economy into a deep recession. Through the Fund’s fiscal year-end, inflationary pressures have proven to be more stubborn than the market or the Fed had anticipated, and it seems increasingly less-likely that the Fed will be able to achieve the soft-landing that was initially targeted.
Other areas of concern include the geopolitical tensions surrounding the Russian invasion of Ukraine, as well as concern around China’s slowing growth prospects and real estate crisis. Domestically, we continue to keep close watch on the health of the Consumer, as we proceed into a period of normalization/deterioration off the COVID-19 pandemic stimulus-driven strength. We maintain a close dialogue with lenders who fund via securitization markets, to identify any areas of concern around their underwriting/risk modeling, loan structuring, or portfolio performance as we move forward into what we expect to be a recessionary environment.
Going forward, we expect the investing landscape to continue to be challenging from a volatility standpoint, and for certain fundamentals to likely deteriorate as monetary policy continues to tighten. Even so, we are confident about the Fund’s current positioning. With limited interest rate risk and significant carry (even while maintaining a historically high AA- credit quality), the Fund is poised to generate an attractive total return in spite of the elevated degree of spread and interest rate volatility we expect to see.
The Fund continues to be positioned with a very short duration position of just over a half a year, a high-quality bias with average credit quality of AA-, and an overweight to Structured Products versus Corporate Credit. In spite of this short duration, high quality bias, the Fund is well positioned to be able to absorb a meaningful degree of interest rate or spread volatility going forward relative to other fixed income or risk assets.
38

Management's Discussion of Fund Performance (Unaudited) (Continued)
Comparison of the Change in Value of a $10,000 Investment in the Touchstone Ultra Short Duration Fixed Income Fund - Class A*, the ICE BofA 3-Month U.S. Treasury Bill Index and the ICE BofA 1-Year U.S. Treasury Note Index
Average Annual Total Returns**
Touchstone Ultra Short Duration Fixed Income Fund 1 Year 5 Years 10 Years
Class A -2.80% 0.71% 0.78%
Class C -2.16% 0.64% 0.60%
Class S* -1.05% 0.87% 0.74%
Class Y -0.55% 1.37% 1.25%
Class Z -0.80% 1.12% 1.00%
Institutional Class -0.50% 1.42% 1.29%
ICE BofA 3-Month U.S. Treasury Bill Index 0.62% 1.15% 0.68%
ICE BofA 1-Year U.S. Treasury Note Index -1.95% 0.94% 0.67%
* The chart above represents performance of Class A shares only, which will vary from the performance of Class C shares, Class S shares, Class Y shares, Institutional Class shares and Class Z shares based on the differences in sales loads and fees paid by shareholders in the different classes. The inception date of Class S shares was October 27, 2017. Class S shares' performance was calculated using the historical performance of Class Z shares for the periods prior to October 27, 2017. The returns have been restated for sales loads and fees applicable to Class S shares.
** The average annual total returns shown above are adjusted for maximum sales loads and fees, if applicable. The maximum offering price per share of Class A shares is equal to the net asset value (“NAV”) per share plus a sales load equal to 2.04% of the NAV (or 2.00% of the offering price). Class C shares are subject to a contingent deferred sales charge (“CDSC”) of 1.00%. The CDSC will be assessed on an amount equal to the lesser of (1) the NAV at the time of purchase of the shares being redeemed or (2) the NAV of such shares being redeemed, if redeemed within a one-year period from the date of purchase. Class S shares, Class Y shares, Class Z shares and Institutional Class shares are not subject to sales charges.
The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Notes to Chart
ICE BofA 3-Month U.S. Treasury Bill Index is an unmanaged index of Treasury securities maturing in 90 days that assumes reinvestment of all income.
ICE BofA 1-Year U.S. Treasury Note Index is an unmanaged index comprised of a single issue purchased at the beginning of the month and held for a full month. The issue selected at each month-end rebalancing is the outstanding two-year Treasury Note Bill that matures closest to, but, not beyond one year from the rebalancing date.
39

Tabular Presentation of Portfolios of Investments (Unaudited)
September 30, 2022
The tables below provide each Fund’s geographic allocation, sector allocation and/or credit quality. We hope it will be useful to shareholders as it summarizes key information about each Fund’s investments.
Touchstone Active Bond Fund

Credit Quality*(% of Fixed Income Securities)
AAA/Aaa 40.4%
AA/Aa 7.5
A/A 15.2
BBB/Baa 27.6
BB/Ba 2.0
B/B 1.8
CCC 0.4
CC 0.1
C or Lower 0.0
Not Rated 4.6
Cash Equivalents 0.4
Total 100.0%
Touchstone Anti-Benchmark® International Core Equity Fund

Geographic Allocation(% of Net Assets)
Common Stocks  
Japan 31.5%
Hong Kong 8.8
United Kingdom 8.1
Switzerland 5.3
Spain 4.4
France 4.4
Israel 4.0
Netherlands 3.9
Denmark 3.7
China 3.7
Australia 3.4
Finland 2.7
Norway 2.0
Portugal 2.0
Belgium 1.8
Germany 1.6
United States 1.3
Sweden 1.3
Ireland 1.3
Luxembourg 1.0
Singapore 1.0
New Zealand 0.6
Austria 0.4
United Arab Emirates 0.0
Short-Term Investment Funds 2.4
Other Assets/Liabilities (Net) (0.6)
Total 100.0%
 
* Credit quality ratings are from S&P Global Ratings ("S&P") and Moody's Investors Service (“Moody's”). If agency ratings differ, the higher rating will
be used. Where no rating has been assigned, it may be for reasons unrelated to the creditworthiness of the issuer.
40

Tabular Presentation of Portfolios of Investments (Unaudited) (Continued)
Touchstone Ares Credit Opportunities Fund

Credit Quality*(% of Fixed Income Securities)
BBB/Baa 5.1%
BB/Ba 39.6
B/B 32.4
CCC 13.4
Not Rated 6.4
Cash Equivalents 3.1
Total 100.0%
Sector Allocation**(% of Net Assets)
Long Positions  
Corporate Bonds  
Energy 11.7%
Consumer Discretionary 9.9
Communication Services 9.3
Industrials 8.0
Financials 5.8
Consumer Staples 5.6
Materials 4.3
Real Estate 4.0
Health Care 3.8
Information Technology 2.5
Utilities 1.8
Bank Loans 17.8
Asset-Backed Securities 9.5
Common Stocks  
Energy 1.2
Health Care 0.5
Industrials 0.1
Exchange-Traded Fund 0.4
Warrants 0.0
Short-Term Investment Funds 6.4
Other Assets/Liabilities (Net) (1.8)
  100.8%
Short Positions  
Corporate Bonds (0.8)
Total 100.0%
Touchstone Dividend Equity Fund

Sector Allocation**(% of Net Assets)
Information Technology 23.2%
Health Care 13.7
Financials 13.7
Consumer Discretionary 10.7
Industrials 9.0
Communication Services 7.2
Consumer Staples 7.0
Energy 5.6
Utilities 3.9
Materials 3.0
Real Estate 2.8
Short-Term Investment Fund 0.4
Other Assets/Liabilities (Net) (0.2)
Total 100.0%
Touchstone High Yield Fund

Credit Quality*(% of Fixed Income Securities)
A/A 0.5%
BBB/Baa 6.5
BB/Ba 60.9
B/B 25.0
CCC 3.0
Not Rated 2.0
Cash Equivalents 2.1
Total 100.0%
Touchstone Impact Bond Fund

Credit Quality*(% of Fixed Income Securities)
AAA/Aaa 68.1%
AA/Aa 11.0
A/A 11.5
BBB/Baa 7.9
BB/Ba 0.3
Cash Equivalents 1.2
Total 100.0%
 
* Credit quality ratings are from S&P Global Ratings ("S&P") and Moody's Investors Service (“Moody's”). If agency ratings differ, the higher rating will be used. Where no rating has been assigned, it may be for reasons unrelated to the creditworthiness of the issuer.
** Sector classifications are based upon the Global Industry Classification Standard (GICS®).
41

Tabular Presentation of Portfolios of Investments (Unaudited) (Continued)
Touchstone International ESG Equity Fund

Geographic Allocation(% of Net Assets)
Common Stocks  
Japan 18.0%
France 14.5
United Kingdom 11.0
Sweden 8.9
South Korea 7.5
Singapore 6.2
Switzerland 5.6
India 4.7
China 4.2
Canada 4.0
Taiwan 3.5
Germany 2.9
Thailand 2.0
Netherlands 1.9
Denmark 1.2
Preferred Stocks 2.6
Short-Term Investment Funds 3.9
Other Assets/Liabilities (Net) (2.6)
Total 100.0%
Touchstone Mid Cap Fund

Sector Allocation*(% of Net Assets)
Industrials 26.2%
Information Technology 16.7
Consumer Discretionary 12.8
Financials 12.1
Consumer Staples 12.0
Materials 10.8
Health Care 5.5
Real Estate 2.7
Short-Term Investment Fund 1.3
Other Assets/Liabilities (Net) (0.1)
Total 100.0%
Touchstone Mid Cap Value Fund

Sector Allocation*(% of Net Assets)
Financials 18.2%
Industrials 14.8
Consumer Staples 11.1
Utilities 10.2
Health Care 9.1
Consumer Discretionary 8.5
Materials 8.4
Energy 7.1
Information Technology 6.7
Real Estate 5.0
Short-Term Investment Fund 1.3
Other Assets/Liabilities (Net) (0.4)
Total 100.0%
Touchstone Sands Capital Select Growth Fund

Sector Allocation*(% of Net Assets)
Information Technology 45.7%
Communication Services 15.9
Consumer Discretionary 14.4
Health Care 14.0
Industrials 8.6
Short-Term Investment Fund 1.0
Other Assets/Liabilities (Net) 0.4
Total 100.0%
 
* Sector classifications are based upon the Global Industry Classification Standard (GICS®).
42

Tabular Presentation of Portfolios of Investments (Unaudited) (Continued)
Touchstone Small Cap Fund

Sector Allocation*(% of Net Assets)
Industrials 23.9%
Consumer Discretionary 18.3
Financials 16.0
Information Technology 12.7
Materials 7.3
Real Estate 6.9
Consumer Staples 5.0
Health Care 3.9
Energy 0.9
Short-Term Investment Funds 7.8
Other Assets/Liabilities (Net) (2.7)
Total 100.0%
Touchstone Small Cap Value Fund

Sector Allocation*(% of Net Assets)
Industrials 24.2%
Financials 19.5
Information Technology 8.6
Health Care 8.2
Materials 7.9
Consumer Staples 7.8
Consumer Discretionary 6.9
Utilities 5.1
Real Estate 4.7
Energy 4.4
Communication Services 0.7
Exchange-Traded Fund 1.0
Short-Term Investment Funds 1.1
Other Assets/Liabilities (Net) (0.1)
Total 100.0%
Touchstone Ultra Short Duration Fixed Income Fund

Credit Quality**(% of Fixed Income Securities)
AAA/Aaa 53.6%
AA/Aa 12.0
A/A 13.3
BBB/Baa 13.7
Not Rated 0.3
Cash Equivalents 7.1
Total 100.0%
 
* Sector classifications are based upon the Global Industry Classification Standard (GICS®).
** Credit quality ratings are from S&P Global Ratings ("S&P") and Moody's Investors Service (“Moody's”). If agency ratings differ, the higher rating will be used. Where no rating has been assigned, it may be for reasons unrelated to the creditworthiness of the issuer.
43

Portfolio of Investments
Touchstone Active Bond Fund – September 30, 2022
Principal
Amount
      Market
Value
  Corporate Bonds — 40.7%  
  Financials — 12.2%  
$ 1,304,000 AerCap Ireland Capital DAC / AerCap Global Aviation Trust (Ireland), 2.450%, 10/29/26 $  1,100,499
    661,000 Allstate Corp. (The), 1.450%, 12/15/30     499,022
    308,000 Allstate Corp. (The), Ser B, 5.750%, 8/15/53     283,570
    724,000 American Financial Group, Inc., 5.250%, 4/2/30     693,980
  1,057,000 Ares Capital Corp., 3.250%, 7/15/25     965,630
    200,000 Banco Nacional de Panama (Panama), 144a, 2.500%, 8/11/30     146,761
  1,007,000 Bank of America Corp., 2.687%, 4/22/32     784,386
    759,000 Bank of America Corp., 3.705%, 4/24/28     690,951
  1,007,000 Bank of America Corp., MTN, 4.000%, 1/22/25     974,794
    903,000 Bank of Montreal (Canada), 3.803%, 12/15/32     783,406
  1,363,000 Bank of Nova Scotia (The) (Canada), 3.625%, 10/27/81     988,175
  1,282,000 Barclays PLC (United Kingdom), 2.894%, 11/24/32     926,410
    617,000 Berkshire Hathaway Finance Corp., 4.250%, 1/15/49     512,833
    437,000 BNP Paribas SA (France), 144a, 4.625%, 3/13/27     403,970
    733,000 Charles Schwab Corp. (The), 5.000%(A)     658,784
  1,122,000 Citigroup, Inc., 0.981%, 5/1/25   1,039,820
    670,000 Citigroup, Inc., 3.200%, 10/21/26     614,013
    430,000 Citigroup, Inc., 4.750%, 5/18/46     342,722
  1,026,000 Citizens Bank NA, 4.575%, 8/9/28     976,878
  1,032,000 Cooperatieve Rabobank UA (Netherlands), 144a, 1.106%, 2/24/27     883,754
  1,457,000 Corestates Capital III, 144a, (3M LIBOR +0.570%), 3.475%, 2/15/27(B)   1,373,223
    899,000 Credit Suisse AG (Switzerland), 3.700%, 2/21/25     843,942
  1,197,000 Goldman Sachs Group, Inc. (The), 2.615%, 4/22/32     928,998
  1,865,000 Goldman Sachs Group, Inc. (The), 3.615%, 3/15/28   1,697,985
    529,000 Goldman Sachs Group, Inc. (The), 3.691%, 6/5/28     479,197
    724,000 HSBC Holdings PLC (United Kingdom), 3.900%, 5/25/26     678,791
  1,154,000 Huntington Bancshares, Inc., 2.550%, 2/4/30     931,327
    200,000 Jababeka International BV (Indonesia), 6.500%, 10/5/23     110,000
  1,258,000 JPMorgan Chase & Co., 2.956%, 5/13/31     995,963
    968,000 JPMorgan Chase & Co., 3.509%, 1/23/29     856,675
    898,000 JPMorgan Chase & Co., 5.717%, 9/14/33     848,604
    930,000 Lloyds Banking Group PLC (United Kingdom), 3.574%, 11/7/28     816,006
  1,226,000 Mastercard, Inc., 2.000%, 11/18/31     969,618
    962,000 Morgan Stanley, 3.950%, 4/23/27     894,368
    820,000 Morgan Stanley, 5.297%, 4/20/37     735,385
  1,190,292 Northwestern Mutual Life Insurance Co. (The), 144a, 3.850%, 9/30/47     896,902
  1,193,000 PNC Capital Trust, (3M LIBOR +0.570%), 3.652%, 6/1/28(B)   1,109,551
  1,098,000 Prudential Financial, Inc., 5.125%, 3/1/52     951,900
 1,877,000 Truist Bank, Ser A, (3M LIBOR +0.670%), 3.580%, 5/15/27(B)   1,740,919
         32,129,712
  Consumer Discretionary — 4.9%  
  1,298,000 BAT Capital Corp. (United Kingdom), 3.557%, 8/15/27   1,139,587
    697,000 Brunswick Corp., 4.400%, 9/15/32     563,433
    239,000 Expedia Group, Inc., 2.950%, 3/15/31     185,331
    664,000 Ford Motor Co., 3.250%, 2/12/32     476,752
    535,000 Ford Motor Credit Co. LLC, 3.664%, 9/8/24     502,226
    300,000 GEMS MENASA Cayman Ltd. / GEMS Education Delaware LLC (United Arab Emirates), 7.125%, 7/31/26     281,338
  1,630,000 General Motors Financial Co., Inc., 3.100%, 1/12/32   1,228,828
    459,000 General Motors Financial Co., Inc., 5.650%, 1/17/29     433,915
    200,000 Genm Capital Labuan Ltd. (Malaysia), 144a, 3.882%, 4/19/31      136,879
Principal
Amount
      Market
Value
     
  Consumer Discretionary — (Continued)  
$   561,000 Home Depot, Inc. (The), 5.950%, 4/1/41 $    584,278
    929,000 Hyundai Capital America, 144a, 2.650%, 2/10/25     865,804
    740,000 Imperial Brands Finance PLC (United Kingdom), 144a, 6.125%, 7/27/27     729,493
  1,410,000 JBS USA LUX SA / JBS USA Food Co. / JBS USA Finance, Inc., 144a, 2.500%, 1/15/27   1,208,483
    447,000 JBS USA LUX SA / JBS USA Food Co. / JBS USA Finance, Inc., 144a, 4.375%, 2/2/52     299,606
  1,108,000 Lowe's Cos., Inc., 4.500%, 4/15/30   1,034,452
  1,602,000 Procter & Gamble Co. (The), 1.200%, 10/29/30   1,235,851
    200,000 Prosus NV (China), 144a, 3.257%, 1/19/27     167,499
  1,153,000 Toll Brothers Finance Corp., 3.800%, 11/1/29     933,000
    689,000 Warnermedia Holdings, Inc., 144a, 4.279%, 3/15/32     566,720
   689,000 Warnermedia Holdings, Inc., 144a, 5.141%, 3/15/52     499,904
         13,073,379
  Industrials — 4.0%  
    200,000 Aeropuerto Internacional de Tocumen SA (Panama), 144a, 4.000%, 8/11/41     147,642
  1,228,000 Amcor Flexibles North America, Inc., 2.630%, 6/19/30     986,017
    650,000 Boeing Co. (The), 5.805%, 5/1/50     566,167
    782,000 Burlington Northern Santa Fe LLC, 5.750%, 5/1/40     790,495
    200,000 Canpack SA / Canpack US LLC (Poland), 144a, 3.125%, 11/1/25     173,935
    635,000 Carrier Global Corp., 3.577%, 4/5/50     439,787
  1,237,000 CNH Industrial Capital LLC, 1.450%, 7/15/26   1,070,562
    320,000 DAE Funding LLC (United Arab Emirates), 3.375%, 3/20/28     271,060
    899,000 FedEx Corp., 5.100%, 1/15/44     759,780
    977,000 John Deere Capital Corp., MTN, 2.450%, 1/9/30     824,339
    300,000 Misc Capital Two Labuan Ltd. (Malaysia), 144a, 3.625%, 4/6/25     286,824
    890,000 Mohawk Industries, Inc., 3.625%, 5/15/30     740,252
    803,000 Norfolk Southern Corp., 4.837%, 10/1/41     714,798
  1,068,000 Parker-Hannifin Corp., 4.250%, 9/15/27   1,017,706
    691,000 Roper Technologies, Inc., 2.950%, 9/15/29     581,505
 1,381,000 Weir Group PLC (The) (United Kingdom), 144a, 2.200%, 5/13/26   1,160,681
         10,531,550
  Energy — 4.0%  
    878,000 Boardwalk Pipelines LP, 4.800%, 5/3/29     806,025
    619,000 Canadian Natural Resources Ltd. (Canada), 6.250%, 3/15/38     597,080
    723,000 Cenovus Energy, Inc. (Canada), 5.250%, 6/15/37     633,056
    655,000 Continental Resources, Inc., 144a, 5.750%, 1/15/31     592,027
    320,000 Ecopetrol SA (Colombia), 6.875%, 4/29/30     268,837
    300,000 EIG Pearl Holdings Sarl (Saudi Arabia), 144a, 3.545%, 8/31/36     239,170
    200,000 EIG Pearl Holdings Sarl (Saudi Arabia), 144a, 4.387%, 11/30/46     141,058
  1,103,000 Energy Transfer LP, 4.150%, 9/15/29     962,593
    200,000 FS Luxembourg Sarl (Brazil), 144a, 10.000%, 12/15/25     201,947
    150,000 Heritage Petroleum Co. Ltd. (Trinidad and Tobago), 144a, 9.000%, 8/12/29     156,924
    300,000 KazMunayGas National Co. JSC (Kazakhstan), 144a, 4.750%, 4/19/27     250,815
    200,000 KazMunayGas National Co. JSC (Kazakhstan), 144a, 5.750%, 4/19/47     133,073
    601,000 MC Brazil Downstream Trading SARL (Brazil), 144a, 7.250%, 6/30/31     452,252
    793,000 Midwest Connector Capital Co. LLC, 144a, 3.900%, 4/1/24      766,250
 
44

Touchstone Active Bond Fund (Continued)
Principal
Amount
      Market
Value
  Corporate Bonds — 40.7% (Continued)  
  Energy — (Continued)  
$   801,000 MPLX LP, 4.950%, 3/14/52 $    626,924
    969,000 NGPL PipeCo LLC, 144a, 7.768%, 12/15/37     978,893
    300,000 Oil and Gas Holding Co. BSCC (The) (Bahrain), 144a, 7.500%, 10/25/27     291,589
    200,000 Petroleos del Peru SA (Peru), 144a, 4.750%, 6/19/32     140,701
    200,000 Petroleos del Peru SA (Peru), 144a, 5.625%, 6/19/47     120,080
    375,000 Petroleos Mexicanos (Mexico), 6.625%, 6/15/35     239,625
    403,000 Petroleos Mexicanos (Mexico), 6.700%, 2/16/32     283,914
    250,000 Petroleos Mexicanos (Mexico), 6.750%, 9/21/47     139,505
    501,000 Petroleos Mexicanos (Mexico), 7.690%, 1/23/50     308,866
    380,000 Petronas Capital Ltd. (Malaysia), 144a, 2.480%, 1/28/32     311,599
    400,000 Qatar Petroleum (Qatar), 144a, 3.125%, 7/12/41     291,714
    250,000 SA Global Sukuk Ltd. (Saudi Arabia), 144a, 2.694%, 6/17/31     210,932
    200,000 Sinopec Group Overseas Development 2018 Ltd. (China), 144a, 3.350%, 5/13/50     142,438
   350,000 YPF, SA (Argentina), 144a, 6.950%, 7/21/27     201,775
         10,489,662
  Utilities — 3.1%  
    199,271 Alfa Desarrollo SpA (Chile), 144a, 4.550%, 9/27/51     131,519
  1,002,000 CMS Energy Corp., 4.750%, 6/1/50     846,690
    717,000 Duke Energy Progress LLC, 4.150%, 12/1/44     578,302
    712,000 Edison International, 4.125%, 3/15/28     635,535
    929,000 Electricite de France SA (France), 144a, 4.875%, 9/21/38     763,136
    200,000 Eskom Holdings SOC Ltd. (South Africa), 144a, 7.125%, 2/11/25     177,100
    903,000 FirstEnergy Transmission LLC, 144a, 5.450%, 7/15/44     816,751
    250,000 Minejesa Capital BV (Indonesia), 4.625%, 8/10/30     204,375
    200,000 NPC Ukrenergo (Ukraine), 144a, 6.875%, 11/9/28*      38,278
  1,114,000 Ohio Power Co., Ser R, 2.900%, 10/1/51     696,195
  1,225,000 Pacific Gas and Electric Co., 3.500%, 8/1/50     745,594
    859,000 PacifiCorp., 5.750%, 4/1/37     816,235
    200,000 Perusahaan Listrik Negara PT (Indonesia), 144a, 4.875%, 7/17/49     139,268
 1,860,000 WEC Energy Group, Inc., (3M LIBOR +2.112%), 5.018%, 5/15/67(B)   1,543,800
          8,132,778
  Health Care — 2.5%  
    806,000 AbbVie, Inc., 4.450%, 5/14/46     655,121
    903,000 Alcon Finance Corp. (Switzerland), 144a, 3.800%, 9/23/49     646,666
    744,000 Becton Dickinson and Co., 4.685%, 12/15/44     635,493
    840,000 CommonSpirit Health, 4.187%, 10/1/49     628,377
    768,000 CVS Health Corp., 5.125%, 7/20/45     672,431
  1,026,000 DH Europe Finance II Sarl, 3.250%, 11/15/39     777,974
  1,045,000 HCA Inc., 5.375%, 9/1/26   1,012,780
    906,000 Mylan, Inc., 4.550%, 4/15/28     800,672
 1,056,000 UnitedHealth Group, Inc., 3.500%, 8/15/39     830,449
          6,659,963
  Communication Services — 2.4%  
    609,000 AT&T, Inc., 4.500%, 5/15/35     526,434
  1,165,000 British Telecommunications PLC (United Kingdom), 144a, 3.250%, 11/8/29     950,020
    940,000 Charter Communications Operating LLC / Charter Communications Operating Capital, 6.484%, 10/23/45     826,188
    782,000 Comcast Corp., 4.000%, 3/1/48     597,937
  1,380,000 Netflix, Inc., 6.375%, 5/15/29   1,369,670
    445,000 Paramount Global, 4.950%, 5/19/50      316,279
Principal
Amount
      Market
Value
     
  Communication Services — (Continued)  
$ 1,152,000 T-Mobile USA, Inc., 3.875%, 4/15/30 $  1,021,450
 1,083,000 Verizon Communications, Inc., 2.987%, 10/30/56     643,868
          6,251,846
  Information Technology — 2.2%  
    634,000 Apple, Inc., 4.650%, 2/23/46     588,341
  1,381,000 Broadcom, Inc., 4.150%, 11/15/30   1,194,836
  1,175,000 Microchip Technology, Inc., 0.983%, 9/1/24   1,081,865
    658,000 Micron Technology, Inc., 2.703%, 4/15/32     477,898
    465,000 Microsoft Corp., 3.500%, 2/12/35     417,560
    858,000 NXP BV / NXP Funding LLC (China), 5.350%, 3/1/26     847,601
    386,000 Oracle Corp., 3.600%, 4/1/40     262,019
    309,000 Oracle Corp., 4.300%, 7/8/34     251,714
   629,000 Visa, Inc., 4.150%, 12/14/35     572,676
          5,694,510
  Real Estate — 2.1%  
    973,000 Crown Castle International Corp. REIT, 3.650%, 9/1/27     880,993
    830,000 Equinix, Inc. REIT, 2.900%, 11/18/26     744,978
  1,082,000 Host Hotels & Resorts LP REIT, Ser F, 4.500%, 2/1/26   1,027,795
  1,000,000 Invitation Homes Operating Partnership LP REIT, 4.150%, 4/15/32     844,678
    200,000 Logan Group Co. Ltd. (China), 5.250%, 2/23/23      31,900
    457,000 Mid-America Apartments LP REIT, 3.750%, 6/15/24     446,924
    696,000 Sabra Health Care LP REIT, 5.125%, 8/15/26     653,237
    353,000 STORE Capital Corp. REIT, 4.500%, 3/15/28     336,249
   720,000 STORE Capital Corp. REIT, 4.625%, 3/15/29     688,109
          5,654,863
  Consumer Staples — 1.9%  
  1,218,000 7-Eleven, Inc., 144a, 0.950%, 2/10/26   1,050,812
  1,181,000 Anheuser-Busch Cos. LLC / Anheuser-Busch InBev Worldwide, Inc. (Belgium), 4.900%, 2/1/46   1,023,520
    978,000 Ashtead Capital, Inc. (United Kingdom), 144a, 4.000%, 5/1/28     855,051
    200,000 Coruripe Netherlands BV (Brazil), 144a, 10.000%, 2/10/27     171,000
    623,000 Kroger Co. (The), 5.000%, 4/15/42     549,841
    926,000 Mars, Inc., 144a, 3.875%, 4/1/39     763,698
    657,000 Starbucks Corp., 3.350%, 3/12/50     447,996
   400,000 Ulker Biskuvi Sanayi AS (Turkey), 144a, 6.950%, 10/30/25     273,360
          5,135,278
  Materials — 1.4%  
    672,000 Braskem America Finance Co. (Brazil), 144a, 7.125%, 7/22/41     588,285
    200,000 Braskem Idesa SAPI (Mexico), 144a, 6.990%, 2/20/32     134,000
    200,000 Braskem Netherlands Finance BV (Brazil), 144a, 4.500%, 1/31/30     161,640
    421,000 Braskem Netherlands Finance BV (Brazil), 144a, 5.875%, 1/31/50     298,279
  1,054,000 Celanese US Holdings LLC, 6.165%, 7/15/27     994,403
    200,000 Freeport Indonesia PT (Indonesia), 144a, 4.763%, 4/14/27     180,058
    200,000 Freeport Indonesia PT (Indonesia), 144a, 5.315%, 4/14/32     165,500
    200,000 Indonesia Asahan Aluminium Persero PT (Indonesia), 144a, 5.800%, 5/15/50     150,610
    200,000 Metinvest BV (Ukraine), 144a, 7.750%, 10/17/29      87,760
    200,000 OCP SA (Morocco), 144a, 5.125%, 6/23/51      127,000
 
45

Touchstone Active Bond Fund (Continued)
Principal
Amount
      Market
Value
  Corporate Bonds — 40.7% (Continued)  
  Materials — (Continued)  
$   795,000 Sherwin-Williams Co. (The), 4.500%, 6/1/47 $    644,931
   200,000 Stillwater Mining Co. (South Africa), 144a, 4.500%, 11/16/29     147,656
          3,680,122
  Total Corporate Bonds $107,433,663
  U.S. Treasury Obligations — 22.2%
  4,345,000 U.S. Treasury Bond, 1.750%, 8/15/41       2,972,252
  3,039,000 U.S. Treasury Bond, 2.250%, 2/15/52       2,207,549
  1,035,000 U.S. Treasury Bond, 2.375%, 2/15/42         793,230
  2,905,000 U.S. Treasury Bond, 2.875%, 5/15/52       2,436,569
  2,000,000 U.S. Treasury Bond, 3.000%, 5/15/42       1,701,953
  6,595,000 U.S. Treasury Bond, 3.250%, 5/15/42       5,854,093
24,505,000 U.S. Treasury Note, 0.750%, 5/31/26      21,647,679
22,885,000 U.S. Treasury Note, 2.750%, 8/15/32      20,914,744
  Total U.S. Treasury Obligations  $58,528,069
  Commercial Mortgage-Backed Securities — 8.6%
  1,000,000 Austin Fairmont Hotel Trust, Ser 2019-FAIR, Class C, 144a, (1M LIBOR +1.450%), 4.268%, 9/15/32(B)         957,262
    500,000 BANK, Ser 2018-BN14, Class A3, 3.966%, 9/15/60         466,244
    970,000 BANK, Ser 2020-BN26, Class A4, 2.403%, 3/15/63         799,401
  1,230,000 BANK, Ser 2022-BNK39, Class A4, 2.928%, 2/15/55       1,023,501
    930,000 BBCMS Mortgage Trust, Ser 2021-C11, Class A5, 2.322%, 9/15/54         739,291
  2,745,000 BBCMS Mortgage Trust, Ser 2021-C12, Class A5, 2.689%, 11/15/54       2,244,181
    720,000 BBCMS Mortgage Trust, Ser 2022-C14, Class A5, 2.946%, 2/15/55         600,455
  1,000,000 BPR Trust, Ser 2021-KEN, Class B, 144a, (1M LIBOR +1.950%), 4.768%, 2/15/29(B)         969,794
    830,000 Citigroup Commercial Mortgage Trust, Ser 2020-GC46, Class A5, 2.717%, 2/15/53         695,833
  1,234,572 COMM Mortgage Trust, Ser 2014-CR14, Class A2, 3.147%, 2/10/47       1,221,187
  1,600,000 CSMC, Ser 2021-B33, Class A1, 144a, 3.052%, 10/10/43       1,376,392
    580,000 DBUBS Mortgage Trust, Ser 2017-BRBK, Class B, 144a, 3.648%, 10/10/34(B)(C)         544,007
    550,000 Eleven Madison Trust Mortgage Trust, Ser 2015-11MD, Class C, 144a, 3.673%, 9/10/35(B)(C)         493,028
    595,000 GS Mortgage Securities Corp. II, Ser 2017-SLP, Class B, 144a, 3.772%, 10/10/32         594,047
    750,000 GS Mortgage Securities Corp. Trust, Ser 2020-UPTN, Class E, 144a, 3.354%, 2/10/37         647,452
  1,750,000 GS Mortgage Securities Trust, Ser 2017-FARM, Class B, 144a, 3.659%, 1/10/43(B)(C)       1,492,292
  1,325,000 GS Mortgage Securities Trust, Ser 2020-GC47, Class A5, 2.377%, 5/12/53       1,083,754
    765,000 HONO Mortgage Trust, Ser 2021-LULU, Class B, 144a, (1M LIBOR +1.450%), 4.268%, 10/15/36(B)         726,757
    528,000 JP Morgan Chase Commercial Mortgage Securities Trust, Ser 2016-NINE, Class B, 144a, 2.949%, 9/6/38(B)(C)         452,805
    755,000 JP Morgan Chase Commercial Mortgage Securities Trust, Ser 2017-JP7, Class A5, 3.454%, 9/15/50         695,233
  1,200,000 JPMorgan Chase Commercial Mortgage Securities Trust, Ser 2018-MINN, Class A, 144a, (1M LIBOR +1.27%), 4.088%, 11/15/35(B)       1,150,640
 1,210,000 Morgan Stanley Capital I Trust, Ser 2018-H3, Class AS, 4.177%, 7/15/51       1,137,688
Principal
Amount
      Market
Value
  Commercial Mortgage-Backed Securities — 8.6% (Continued)
$ 2,380,000 Wells Fargo Commercial Mortgage Trust, Ser 2019-C53, Class A4, 3.040%, 10/15/52     $  2,051,531
   695,000 WFRBS Commercial Mortgage Trust, Ser 2013-C12, Class B, 3.863%, 3/15/48(B)(C)         686,085
  Total Commercial Mortgage-Backed Securities  $22,848,860
  U.S. Government Mortgage-Backed Obligations — 7.7%
     49,293 FHLMC, Pool #1Q0339, (12M LIBOR +1.889%), 2.769%, 4/1/37(B)          49,720
      7,228 FHLMC, Pool #A12886, 5.000%, 8/1/33           7,256
     47,004 FHLMC, Pool #A13842, 6.000%, 9/1/33          47,852
      4,837 FHLMC, Pool #A21415, 5.000%, 5/1/34           4,879
     10,389 FHLMC, Pool #A35682, 5.000%, 7/1/35          10,417
      4,141 FHLMC, Pool #A36523, 5.000%, 8/1/35           4,072
     19,093 FHLMC, Pool #A46590, 5.000%, 8/1/35          18,666
      2,572 FHLMC, Pool #A64971, 5.500%, 8/1/37           2,662
  1,556,159 FHLMC, Pool #A89148, 4.000%, 10/1/39       1,485,355
     42,092 FHLMC, Pool #A96485, 4.500%, 1/1/41          41,185
    271,740 FHLMC, Pool #A97897, 4.500%, 4/1/41         266,586
     14,204 FHLMC, Pool #C62740, 7.000%, 1/1/32          14,542
      8,199 FHLMC, Pool #C72254, 6.500%, 7/1/32           8,456
     14,268 FHLMC, Pool #C90986, 7.000%, 6/1/26          14,399
      8,119 FHLMC, Pool #G02184, 5.000%, 4/1/36           8,202
  1,400,576 FHLMC, Pool #G05624, 4.500%, 9/1/39       1,374,461
    131,015 FHLMC, Pool #G05733, 5.000%, 11/1/39         132,365
     33,030 FHLMC, Pool #J13584, 3.500%, 11/1/25          31,406
    877,281 FHLMC REMIC, Pool #SD1436, 4.500%, 8/1/52         838,359
    840,000 FHLMC REMIC, Pool #SD1620, 5.000%, 9/1/52         820,194
     13,967 FNMA, Pool #255628, 5.500%, 2/1/25          13,911
      5,256 FNMA, Pool #426830, 8.000%, 11/1/24           5,266
      4,378 FNMA, Pool #540040, 7.500%, 6/1/28           4,377
      7,588 FNMA, Pool #561741, 7.500%, 1/1/31           7,842
     14,950 FNMA, Pool #640291, 7.000%, 8/1/32          14,941
     14,135 FNMA, Pool #670402, 6.500%, 6/1/32          14,732
     79,540 FNMA, Pool #745257, 6.000%, 1/1/36          83,540
     51,645 FNMA, Pool #748895, 6.000%, 12/1/33          51,814
     23,016 FNMA, Pool #758564, 6.000%, 9/1/24          23,388
     33,366 FNMA, Pool #810049, 5.500%, 3/1/35          33,244
     30,681 FNMA, Pool #819297, 6.000%, 9/1/35          31,963
    549,253 FNMA, Pool #881279, 5.000%, 11/1/36         548,883
     17,346 FNMA, Pool #889060, 6.000%, 1/1/38          18,712
     42,930 FNMA, Pool #889061, 6.000%, 1/1/38          45,091
      3,561 FNMA, Pool #895657, 6.500%, 8/1/36           3,625
     59,879 FNMA, Pool #905049, 5.500%, 11/1/36          59,633
    219,438 FNMA, Pool #928553, 5.500%, 8/1/37         221,289
    114,614 FNMA, Pool #931535, 5.500%, 7/1/39         114,492
     93,818 FNMA, Pool #AA3467, 4.500%, 4/1/39          92,013
    155,450 FNMA, Pool #AA4584, 4.500%, 4/1/39         152,475
     36,448 FNMA, Pool #AB1800, 4.000%, 11/1/40          34,752
     54,759 FNMA, Pool #AB2452, 4.000%, 3/1/26          53,079
     14,265 FNMA, Pool #AD3775, 4.500%, 3/1/25          14,030
     24,463 FNMA, Pool #AD6193, 5.000%, 6/1/40          24,318
     49,770 FNMA, Pool #AE1568, 4.000%, 9/1/40          47,460
    290,932 FNMA, Pool #AE2497, 4.500%, 9/1/40         285,091
     32,203 FNMA, Pool #AE5441, 5.000%, 10/1/40          32,391
     93,923 FNMA, Pool #AH1135, 5.000%, 1/1/41          94,773
     34,626 FNMA, Pool #AH3671, 4.000%, 2/1/26          33,579
    283,401 FNMA, Pool #AH6622, 4.000%, 3/1/41         270,200
    262,922 FNMA, Pool #AL0150, 4.000%, 2/1/41         250,692
     46,922 FNMA, Pool #AL0211, 5.000%, 4/1/41          47,348
    310,626 FNMA, Pool #AS0779, 4.000%, 10/1/43         295,269
  2,125,943 FNMA, Pool #BT7156, 2.000%, 8/1/51       1,729,273
 1,531,790 FNMA, Pool #FM4660, 2.000%, 10/1/35       1,355,147
 
46

Touchstone Active Bond Fund (Continued)
Principal
Amount
      Market
Value
  U.S. Government Mortgage-Backed Obligations — 7.7%
(Continued)
$ 1,535,002 FNMA, Pool #FM4702, 2.500%, 10/1/50     $  1,301,626
  2,231,495 FNMA, Pool #FM5085, 2.000%, 12/1/50       1,819,541
  1,062,725 FNMA, Pool #FM8360, 2.500%, 8/1/51         900,470
  1,049,301 FNMA, Pool #FM8361, 2.500%, 8/1/51         887,059
  1,150,991 FNMA, Pool #FM9905, 2.500%, 12/1/51         971,697
  1,152,230 FNMA, Pool #FM9907, 2.500%, 12/1/51         972,883
    840,000 FNMA, Pool #FS2906, 5.000%, 9/1/52         821,231
    930,537 FNMA, Pool #MA4128, 2.000%, 9/1/40         780,635
   661,801 GNMA, Pool #4424, 5.000%, 4/20/39         673,106
  Total U.S. Government Mortgage-Backed Obligations  $20,417,915
  Asset-Backed Securities — 6.1%
  1,100,000 AB BSL CLO 2 Ltd. (Cayman Islands), Ser 2021-2A, Class B1, 144a, (3M LIBOR +1.650%), 4.162%, 4/15/34(B)       1,025,452
  1,982,199 Adams Outdoor Advertising LP, Ser 2018-1, Class A, 144a, 4.810%, 11/15/48       1,875,584
  1,400,000 Aimco CLO 11 Ltd. (Cayman Islands), Ser 2020-11A, Class AR, 144a, (3M LIBOR +1.130%), 3.870%, 10/17/34(B)       1,335,228
    966,529 CF Hippolyta Issuer LLC, Ser 2020-1, Class A1, 144a, 1.690%, 7/15/60         858,697
      1,523 CIT Home Equity Loan Trust, Ser 2002-1, Class AF5, 6.941%, 2/25/33(B)(C)           1,398
  1,326,500 Coinstar Funding LLC, Ser 2017-1A, Class A2, 144a, 5.216%, 4/25/47       1,236,057
  1,265,438 Driven Brands Funding LLC, Ser 2021-1A, Class A2, 144a, 2.791%, 10/20/51         999,257
    107,291 FHLMC Structured Pass Through Securities, Ser T-20, Class A5, 8.370%, 12/25/29(B)(C)         112,993
      5,976 FNMA REMIC Trust, Ser 2001-W2, Class AF6, 6.089%, 10/25/31(B)(C)           6,065
  1,138,500 Jack in the Box Funding LLC, Ser 2022-1A, Class A2I, 144a, 3.445%, 2/26/52         989,208
    962,725 Jersey Mike's Funding, Ser 2019-1A, Class A2, 144a, 4.433%, 2/15/50         875,095
  1,425,000 Madison Park Funding XLIX Ltd. (Cayman Islands), Ser 2021-49A, Class B1, 144a, (3M LIBOR +1.700%), 4.438%, 10/19/34(B)       1,339,359
    556,099 Mid-State Capital Corp. Trust, Ser 2005-1, Class M2, 7.079%, 1/15/40         553,958
    947,979 Mill City Mortgage Loan Trust, Ser 2018-3, Class M3, 144a, 3.250%, 8/25/58(B)(C)         789,022
  1,185,000 Neighborly Issuer LLC, Ser 2021-1A, Class A2, 144a, 3.584%, 4/30/51         983,266
     53,395 Orange Lake Timeshare Trust, Ser 2016-A, Class A, 144a, 2.610%, 3/8/29          51,343
  1,119,375 Planet Fitness Master Issuer LLC, Ser 2022-1A, Class A2I, 144a, 3.251%, 12/5/51         976,308
  1,027,000 TAL Advantage VII LLC, Ser 2020-1A, Class A, 144a, 2.050%, 9/20/45         899,629
 1,580,000 Wendy's Funding LLC, Ser 2021-1A, Class A2II, 144a, 2.775%, 6/15/51       1,242,758
  Total Asset-Backed Securities  $16,150,677
  Non-Agency Collateralized Mortgage Obligations — 5.5%
      1,407 Adjustable Rate Mortgage Trust, Ser 2004-4, Class 3A1, 3.010%, 3/25/35(B)(C)           1,393
  1,234,036 Agate Bay Mortgage Trust, Ser 2015-7, Class B1, 144a, 3.651%, 10/25/45(B)(C)       1,121,367
 1,923,173 Agate Bay Mortgage Trust, Ser 2015-7, Class B2, 144a, 3.651%, 10/25/45(B)(C)       1,744,211
Principal
Amount
      Market
Value
  Non-Agency Collateralized Mortgage Obligations — 5.5%
(Continued)
$   442,799 CSMC Trust, Ser 2013-7, Class B3, 144a, 3.544%, 8/25/43(B)(C)     $    401,484
    516,819 CSMC Trust, Ser 2014-OAK1, Class B4, 144a, 3.633%, 11/25/44(B)(C)         482,266
    921,658 CSMC Trust, Ser 2015-1, Class B3, 144a, 3.914%, 1/25/45(B)(C)         848,380
    969,985 CSMC Trust, Ser 2015-2, Class B4, 144a, 3.902%, 2/25/45(B)(C)