I hereby represent that I:

» am an institutional investor that is a "qualified client" as that term is defined in Rule 205-3(d)(1) under the Investment Advisers Act of 1040, as amended; and

» have such knowledge and experience in financial and business matters that I am capable of evaluating the merits and risks of the investments that may be presented to me by Touchstone Investments.

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Touchstone Merger Arbitrage Fund


Objective

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 and other corporate reorganizations.

Investment Style

  • 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
  • Primarily buys securities of companies being acquired in publicly announced transactions where the terms of the transaction have been defined and disclosed
  • 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 across the entire market-capitalization spectrum with an emphasis on small- and mid-cap companies 
  • May invest 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 which carry the associated risks of economic and political instability, market liquidity, currency volatility and differences in accounting standards. The Fund invests in foreign and emerging market securities, and ADRs and GDRs which carry the associated risks of economic and political in stability, 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. 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.

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Select Share Class:  A  |  C  |  Y  |  INST

Fund Facts

A Shares
NASDAQ Symbol TMGAX
CUSIP 89155T730
Touchstone Fund Number 413
Portfolio Turnover Rate1 288%
Total Annual Fund Operating Expense Ratio2 2.28%
Net Annual Fund Operating Expense Ratio2 2.28%
Total Net Assets as of 3/31/2014 $228,341,574
Inception Date 8/9/2011

Fiscal Year End September 30th
Benchmark BofAML 3-Month U.S. Treasury Bill Index3
Prospectus Date 1/30/2014

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 to 1.68% for Class A Shares, 2.43% for Class C Shares, 1.43% for Class Y Shares, and 1.28% for ClassINST Shares, respectively (excluding Acquired Fund Fees and Expenses "AFFE" and Dividend Expenses on Securities sold short). The expense ratios include AFFE, interest and borrowing expenses on securities sold short, and dividends on securities sold short. The Expense Limitations will remain in effect until at least 01/29/15. 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 AFFE, interest and borrowing expenses on securities sold short, and dividends on securities sold short. The Fund is obligated to record the expenses of the dividend on securities sold short; these expenses may be offset by gains on the day the dividends are announced. Please see the Fund's Prospectus for further information.

3 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.