Touchstone Flexible Income Fund Sub-Advised by: ClearArc Capital, Inc.


The Fund seeks a high level of income consistent with reasonable risk by investing primarily in income producing securities.

Investment Style

  • Invests in a variety of income-producing asset classes including debt securities, common stock and preferred stock
  • Employs a top down macro perspective along with bottom-up security selection analysis with an emphasis on quality, relative value and high current income
  • Seeks to maximize risk-adjusted returns through fundamental research, quantitative modeling and capital structure analysis
  • Evaluates companies based on such facts as sales, assets, earnings, markets and management
  • Correlation* analysis between asset classes is conducted in an effort to build a portfolio with low correlation to both stocks and bonds
  • *Correlation is a statistical measure of how two securities move in relation to each other.

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 value stocks which may not appreciate in value as anticipated or may experience a decline in value. 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 other investment companies, such as closed-end funds. The value of their shares may be lower than the value of their portfolio securities. The Fund invests in preferred stocks which are relegated below bonds for payment should the issuer be liquidated. The fixed dividend may be less attractive in a rising interest rate market. The Fund invests in REITS; the risks are similar to those associated with direct ownership of real estate securities. Shareholders will bear the additional expenses of investing in REITs. The Fund invests in convertible securities which are subject to the risks of both debt securities and equity securities. The Fund invests in debt securities which can lose their value as interest rates rise and are subject to 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 investment grade debt securities which may be downgraded by a Nationally Recognized Statistical Rating Organization (NRSRO) to below investment grade status. 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 U.S. government securities which are not guaranteed against price movements due to changing interest rates. The Fund invests in mortgage-backed securities and asset-backed securities which are subject to the risks of prepayment, defaults, changing interest rates and at times, the financial condition of the issuer. 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 invests in forward currency exchange contracts, futures contracts, options and swap agreements which may limit potential gains, are highly volatile, and their use can result in illiquidity, counterparty risk and loss. 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 Rate1102%
Total Annual Fund Operating Expense Ratio21.36%
Net Annual Fund Operating Expense Ratio21.11%
Total Net Assets as of 6/30/2015 $32,684,283
Inception Date4/1/2004
Fiscal Year EndMarch 31st
BenchmarkBarclays U.S. Aggregate Bond Index3
Prospectus Date7/30/2015

1 Annualized as of 3/31/2015

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 (excluding Acquired Fund Fees and Expenses "AFFE") to 1.09% for Class A Shares, 1.84% for Class C Shares, 0.84% for Class Y Shares and 0.74% for Class INST Shares. These expense limitations will remain in effect until at least 07/29/16.

3 The 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.