The Fund seeks to achieve positive absolute returns regardless of market conditions over the long-term by investing primarily in securities of companies that are involved in publicly announced mergers, takeovers, tender offers, debt restructurings, minority purchases, leveraged buyouts, spin-offs, liquidations, and other corporate reorganizations.
- Primarily buys securities of companies being acquired in publicly announced transactions where the terms of the transaction have been defined and disclosed
- Seeks to capture the arbitrage spread represented by the difference of the market price of the securities of the target company and the value that is offered for these securities by the acquiring company
- Analyzes a number of factors when selecting securities including proposed financing terms, the size of the transaction, anti-trust concerns, regulatory approvals, and shareholder voting requirements
- Invests in a variety of fixed-income securities dependent upon the level of corporate restructuring activity, the market or other conditions
A Word About Risk
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 invests in stocks of small- and mid-cap companies, which may be subject to more erratic market movements than stocks of larger, more established companies. The Fund invests in foreign securities, ADRs and GDRs which carry the associated risks of economic and political instability, market liquidity, currency volatility and differences in accounting standards. The Fund invests in companies that are or expected to be the subject of a publicly announced transaction that may not be completed or may be completed on less favorable terms than originally expected. The Fund invests in preferred stocks which are relegated below bonds for payment should the issuer be liquidated and can be called or redeemed prior to maturity, negatively impacting the stock's price when interest rates decline. Rule 144A securities are traded in the institutional market pursuant to a registration exemption, and, as a result, may not be as liquid as exchange-traded securities since they may only be resold to certain qualified institutional buyers. The Fund invests in convertible securities which are subject to the risks of both debt securities and equity securities. The Fund invests in preferred stocks which are relegated below bonds for payment should the issuer be liquidated and can be called or redeemed prior to maturity, negatively impacting the stock's price when interest rates decline. The Fund invests in debt securities which can lose their value as interest rates rise and are subject to the possibility of an issuer failing to make timely payments of principal or interest including the possibility of prepayment and an investor can lose principal. 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 or principal and has in the past, had more frequent and larger price changes than other debt securities. The Fund invests in other investment companies which typically reflect the risks of the securities in which the investment companies invest and bear their proportionate share of fees and expenses; closed-end funds may lack an active market and trading may be halted or delisted. 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 may experience higher portfolio turnover which may lead to increased fund expenses, lower investment returns, and higher short-term capital gains taxable to shareholders. The Fund is non-diversified, which means that it may invest a greater percentage of its assets in the securities of a limited number of issuers than a diversified fund and may be subject to greater risks. 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.
|Touchstone Fund Number
|Portfolio Turnover Rate1
|Total Annual Fund Operating Expense Ratio2
|Net Annual Fund Operating Expense Ratio2
|Total Net Assets as of 12/31/2013
|Fiscal Year End
||BofA Merrill Lynch 3-Month U.S. Treasury Bill Index3
1 Annualized as of N/A
Touchstone Advisors, Inc. has contractually agreed to waive a portion of its fees or reimburse certain Fund expenses in order to limit annual fund operating expenses to 1.68%, 2.43%, 1.43%, and 1.28% for Classes A, C, and Y shares and Institutional Class shares, respectively. This expense limitation will remain in effect until at least September 29, 2014.
The BofA Merrill Lynch 3-Month U.S. Treasury Bill Index is an unmanaged index of Treasury securities maturing in 90 days that assumes reinvestment of all income. 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/home/formslit/ 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.