Touchstone Dynamic Diversified Income Fund
Sub-Advised by: Wilshire Associates Incorporated


The Fund seeks to provide investors with current income.

Investment Style

  • This 'fund of funds' primarily invests in a diversified portfolio of underlying fixed income and equity-income oriented funds. These underlying funds, in turn, invest in a variety of U.S. and foreign equity and fixed income securities
  • The majority of the underlying funds in which the Fund invests will be affiliated funds; however the Fund has the ability to invest in unaffiliated underlying funds
  • The Fund's sub-advisor seeks to develop an optimal model allocation among underlying funds that seeks to maximize 'income efficiency,' or yield achieved per unit of risk. It is dynamically managed as yield and volatility environments change
  • Under normal circumstances, the Fund expects to allocate its assets among equity and fixed income funds as follows: Equity Fund Allocation: 25-55%; Fixed Income Fund Allocation: 45-75%
The value of an investment in the Fund is based on the performance of the underlying funds in which it invests and the allocation of its assets among those funds. The Fund bears a proportionate amount of the expenses charged by the underlying funds. The Fund's ability to achieve its investment goal depends upon the sub-advisor's skill in selecting the best mix of underlying funds. The principal risks of an investment in the Fund include the principal risks of investing in the underlying funds in addition to those of the Fund. The Fund invests in equities which are subject to market volatility and loss. The Fund invests in foreign securities, foreign depositary receipts and emerging markets securities which carry the associated risks of economic and political instability, market liquidity, currency volatility and differences in accounting standards. The Fund invests in debt securities which can lose their value as interest rates rise and are subject to credit risk which is 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 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 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. Liquidity risk may exist when particular investments are difficult to purchase or sell, which can reduce an underlying fund's return. Leverage can create an interest expense that may lower the Fund's overall returns. There can be no guarantee that a leveraging strategy will be successful. 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

Fund Facts

Y Shares
Portfolio Turnover Rate125%
Total Annual Fund Operating Expense Ratio21.60%
Net Annual Fund Operating Expense Ratio21.00%
Total Net Assets as of 6/30/2018 $6,439,342
Inception Date12/9/2005
Fiscal Year EndDecember 31st
BenchmarkBloomberg Barclays U.S. Aggregate Bond Index3
Prospectus Date4/30/2018

1 Annualized as of 12/31/2017

2 Touchstone Advisors has contractually agreed to waive a portion of its fees and/or reimburse certain Fund expenses in order to limit certain annual fund operating expenses (excluding Acquired Fund Fees and Expenses “AFFE,” and other expenses, if any) to 0.49% for Class A Shares, 1.24% for Class C Shares and 0.24% for Class Y Shares. These expense limitations will remain in effect until at least 04/29/18.

3 The Bloomberg 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 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.