Touchstone Dynamic Equity Fund Sub-Advised by: Analytic Investors LLC

Objective

The Fund seeks to obtain long-term capital appreciation from hedged equity investments with less risk than a fully invested, unhedged equity portfolio by investing in a combination of equity securities, short-term debt securities and derivative instruments.

Investment Style

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  • Invests primarily in long and short positions of U.S. large-cap stocks, although it may invest in small- and mid-cap stocks
  • Utilizes a proprietary model that attempts to determine a security's intrinsic value by evaluating variables such as relative valuation, price momentum, company fundamentals, liquidity and risk
  • Buys securities 'long' that are believed will outperform and sells securities 'short' on those believed will underperform
  • Intends to take long and short equity positions that may vary over time based on an assessment of market conditions and other factors
  • Seeks to reduce overall portfolio risk through the use of options, primarily focusing on writing call options
The Fund invests in equities which are subject to market volatility and loss. The Fund invests in stocks of large-cap companies which may be unable to respond quickly to new competitive challenges. The Fund is involved in short selling which may result in additional costs associated with covering short positions and a possibility of unlimited loss. The Fund invests in covered call options, and index and ETF call options which may result in limited gains and illiquidity for the option or for the security. 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 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 SymbolTDEAX
CUSIP89154X195
Portfolio Turnover Rate1382%
Total Annual Fund Operating Expense Ratio22.42%
Net Annual Fund Operating Expense Ratio22.22%
Total Net Assets as of 9/30/2014$11,548,449
Inception Date3/31/2005
Fiscal Year EndDecember 31st
BenchmarkS&P 500 Index3
Prospectus Date4/30/2014

1 Annualized as of 12/31/2013

2 Touchstone Advisors has contractually agreed to waive a portion of its fees and/or reimburse certain Fund expenses in order to limit annual operating expenses to 1.55% for Class A shares, 2.30% for Class C Shares, 1.30% for Class Y Shares and 1.25% for Class INST shares. The expense limitations will remain in effect until at least 04/29/15. These limits exclude expenses not charged to shareholders by the Fund or by any Fund service provider. There are expenses related to the ongoing management of the Fund's portfolio and include interest and borrowing expenses on securities sold short. Please see the Fund's Prospectus for further information.

3 The S&P 500® Index is a group of 500 widely held stocks and is commonly regarded to be representative of the large capitalization stock universe. Investing in an index is not possible.

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.