Touchstone Active Bond Fund Sub-Advised by: Fort Washington Investment Advisors Inc.

Active Bond Notice

Objective

The Fund seeks to provide as high a level of current income as is consistent with the preservation of capital by investing primarily in bonds.

Investment Style

  • Evaluates overall investment opportunities and risks in the different sectors of the fixed income securities market
  • Assesses the economic environment and recent developments occurring in the bond market to set specific duration levels, yield-curve structures, sector weights and credit-quality targets
  • Utilizes a disciplined sector allocation process in an effort to build a broadly diversified portfolio of bonds
The Fund invests in debt securities which can lose their value as interest rates rise and are subject to the risk of deterioration in the financial condition of an issuer and/or general economic conditions that can cause the issuer to not make timely payments of principal and interest also causing the securities to decline in value and an investor can lose principal. The Fund invests in investment grade debt securities which may be downgraded by a Nationally Recognized Statistical Rating Organization (NRSRO) to below investment grade status. The Fund invests in non-investment grade debt securities which are considered speculative with respect to the issuers' ability to make timely payments of interest and principal, may lack liquidity and has had more frequent and larger price changes than other debt securities. The Fund invests in U.S. government and U.S. agency securities which are not guaranteed against price movements due to changing interest rates. The Fund invests in mortgage-backed securities and asset-backed securities which are subject to the risks of prepayment, defaults, changing interest rates and at times, the financial condition of the issuer. The Fund invests in foreign securities and foreign depositary receipts which carry the associated risks of economic and political instability, market liquidity, currency volatility and differences in accounting standards. The Fund invests in emerging markets securities which are more likely to experience turmoil or rapid changes in market or economic conditions than developed countries. The Fund invests in derivatives which may expose the Fund to additional risk than directly investing in securities and may lack a liquid market, are subject to counterparty risk and leverage risk which could result in increased volatility of returns as well as losses. The Fund invests in forward currency exchange contracts, futures contracts, options and swap agreements which may use leverage which may in turn limit potential gains, are highly volatile, and their use can result in illiquidity, counterparty risk and loss. The Fund may experience higher portfolio turnover which may lead to increased fund expenses, lower investment returns and higher short-term capital gains taxable to shareholders. Current and future portfolio holdings are subject to risk. The advisor engages the sub-advisor to manage the Fund's portfolio; the sub-advisor's judgment may impact the Fund's performance.

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Select Share Class:A C Y INST

Fund Facts

A Shares
NASDAQ SymbolTOBAX
CUSIP89154W502
Portfolio Turnover Rate1353%
Total Annual Fund Operating Expense Ratio21.18%
Net Annual Fund Operating Expense Ratio20.90%
Total Net Assets as of 9/30/2014$28,924,978
Inception Date10/3/1994
Fiscal Year EndSeptember 30th
BenchmarkBarclays U.S. Aggregate Bond Index3
Prospectus Date4/30/2014

1 Annualized as of 9/30/2013

2 Touchstone Advisors has contractually agreed to waive a portion of its fees and/or reimburse certain Fund expenses in order to limit annual fund operating expenses (excluding Acquired Fund Fees and Expenses "AFFE") to 0.90% for Class A Shares, 1.65% for Class C Shares, 0.65% for Class Y Shares and 0.57% for Class INST Shares. These expense limitations will remain in effect until at least 04/30/15.

3 The Barclays 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.

Please consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. The prospectus and the summary prospectus contain this and other information about the Fund. To obtain a prospectus or a summary prospectus, contact your financial advisor or download and/or request one at TouchstoneInvestments.com/literature-center or call Touchstone at 800.638.8194. Please read the prospectus and/or summary prospectus carefully before investing.

Investment return and principal value of an investment in a Fund will fluctuate so that investor's shares, when redeemed, may be worth more or less than their original cost.