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


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

  • 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 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 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. Premiums generated from these options typically result in tax consequences. The Fund invests in derivatives such as forward currency exchange contracts, futures contracts, options and swap agreements. Derivatives can be highly volatile, illiquid and difficult to value, subject to counterparty and leverage risks and there is risk that changes in the value of a derivative held by the Fund will not correlate with the Fund's other investments. 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. Gains or losses from speculative positions in a derivative may be much greater than the original cost and potential losses may be substantial. When the Fund has a cash balance, any market upswing may adversely affect the Fund's performance. 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
Portfolio Turnover Rate1236%
Total Annual Fund Operating Expense Ratio22.00%
Net Annual Fund Operating Expense Ratio21.94%
Total Net Assets as of 6/30/2018 $14,293,143
Inception Date3/31/2005
Fiscal Year EndDecember 31st
BenchmarkS&P 500 Index3
Prospectus Date4/30/2018

1 Annualized as of 12/31/2017

Touchstone Advisors, Inc. and the Funds Trust have entered into a contractual expense limitation agreement whereby Touchstone Advisors will waive a portion of its fees or reimburse certain Fund expenses (excluding dividend and interest expenses relating to short sales; interest; taxes; brokerage commissions and other transaction costs; portfolio transactions and investment related expenses; other expenditures which are capitalized in accordance with U.S. generally accepted accounting principles; the costs of “Acquired Fund Fees and Expenses,” if any; and other extraordinary expenses not incurred in the ordinary course of business) in order to limit certain annual Fund 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. This contractual expense limitation is effective through 04/29/2019.

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 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.