Touchstone Credit Opportunities Fund

Touchstone Credit Opportunities Fund

Overview

Overview

Actively Managed and Sub-Advised by Ares Capital Management II LLC*

Objective

The fund seeks absolute total return, primarily from income and capital appreciation by investing primarily in global debt securities.

Credit Opportunities Fund Commentary

Investment Style

  • Employs flexibility by allocating assets among core investments and opportunistic investments as market conditions change
  • Identifies companies and securities that are believed to offer attractive relative values when compared to their fundamental credit risk
  • Actively hedges portfolio risks, including credit, interest rate, and currency, in an effort to preserve capital
  • Consists of several broad investment categories, including high yield bonds, bank loans, special situations, structured credit and hedges
A WORD ABOUT RISK

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. When interest rates rise, the price of debt securities generally falls. Longer term securities are generally more volatile. The Fund invests in non-investment grade debt securities, distressed securities and corporate loans which are considered speculative with respect to the issuers’ ability to make timely payments of interest and principal, may lack liquidity and have more frequent and larger price changes than other debt securities. There is a high risk that the Fund could suffer losses from investments in non-investment grade debt securities caused by the default of an issuer. The Fund invests in Collateralized Loan Obligations (CLOs) that have risks that largely depend on the type of underlying collateral and risks may include illiquidity, limited active market, the possibility that distributions from collateral securities will be insufficient to make interest or other payments, the potential for a decline in the quality of the collateral, and can bear the risk of default by the loans. The Fund invests in convertible securities which are subject to the risks of both debt securities and equity securities. The Fund invests in equities which are subject to market volatility and loss. 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 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 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. Gains or losses from speculative positions in a derivative may be much greater than the original cost and potential losses may be substantial. 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 is non-diversified, which means that it may invest a greater percentage of its assets in the securities of a limited number of issuers 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.

Fund Facts

Symbol
CUSIP
Share Class Inception Date
Total Share Class Net Assets as of 09/30/2018
Total Fund Net Assets as of 09/30/2018 $50,186,143
Asset Class Multi-Asset / Alternative, Income
Morningstar Category Nontraditional Bond
Benchmark ICE BofA Merrill Lynch 3-Month U.S. Treasury Bill Index
Distribution Frequency Quarterly
Portfolio Turnover Rate
Fiscal Year End
Prospectus Date 10/30/2018

Performance

Daily Returns as of
NAV NAV $ Change
Touchstone Credit Opportunities Fund -
HISTORICAL DAILY NAV
as of 11/30/2018 1 Month 3 Month YTD 1 Year 3 Year 5 Year 10 Year Since Inception
Touchstone Credit Opportunities Fund -
Including Sales Charge
Touchstone Credit Opportunities Fund -
Excluding Sales Charge
ICE BofA Merrill Lynch 3-Month U.S. Treasury Bill Index 0.21% 0.53% 1.69% 1.80% 0.97% 0.59% 0.36% --
Performance data quoted represents past performance, which is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. From time to time, the investment advisor may waive some fees and/or reimburse expenses, which if not waived or reimbursed, will lower performance. Returns are not annualized for periods of less than one year. Assumes reinvestment of all dividends and capital gains. The maximum front-end sales charge for Class A Shares of Touchstone U.S. Equity, International/Global Equity and Multi-Asset/Alternative Investment Funds excluding Touchstone Flexible Income Fund is 5.00%.
Performance data quoted represents past performance, which is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. From time to time, the investment advisor may waive some fees and/or reimburse expenses, which if not waived or reimbursed, will lower performance. Returns are not annualized for periods of less than one year. Assumes reinvestment of all dividends and capital gains. Performance for Class C Shares is adjusted for the contingent deferred sales charges (CDSC) in effect at the end of the specified period. The CDSC for Class C Shares is 1.00% the first year you hold the shares and declines to 0% after the first year.
Performance data quoted represents past performance, which is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. From time to time, the investment advisor may waive some fees and/or reimburse expenses, which if not waived or reimbursed, will lower performance. Returns are not annualized for periods of less than one year. Assumes reinvestment of all dividends and capital gains. Class Y Shares are sold at net asset value (NAV), without an initial sales charge and are not subject to a 12b-1 fee or contingent deferred sales charges.
Performance data quoted represents past performance, which is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. From time to time, the investment advisor may waive some fees and/or reimburse expenses, which if not waived or reimbursed, will lower performance. Returns are not annualized for periods of less than one year. Assumes reinvestment of all dividends and capital gains. Class INST Shares are sold at net asset value (NAV), without an initial sales charge and are not subject to a 12b-1 fee or contingent deferred sales charges.
as of 09/30/2018 1 Year 3 Year 5 Year 10 Year Since Inception
Touchstone Credit Opportunities Fund -
Including Sales Charge
Touchstone Credit Opportunities Fund -
Excluding Sales Charge
ICE BofA Merrill Lynch 3-Month U.S. Treasury Bill Index 1.59% 0.84% 0.52% 0.34% --
Performance data quoted represents past performance, which is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. From time to time, the investment advisor may waive some fees and/or reimburse expenses, which if not waived or reimbursed, will lower performance. Returns are not annualized for periods of less than one year. Assumes reinvestment of all dividends and capital gains. The maximum front-end sales charge for Class A Shares of Touchstone U.S. Equity, International/Global Equity and Multi-Asset/Alternative Investment Funds excluding Touchstone Flexible Income Fund is 5.00%.
Performance data quoted represents past performance, which is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. From time to time, the investment advisor may waive some fees and/or reimburse expenses, which if not waived or reimbursed, will lower performance. Returns are not annualized for periods of less than one year. Assumes reinvestment of all dividends and capital gains. Performance for Class C Shares is adjusted for the contingent deferred sales charges (CDSC) in effect at the end of the specified period. The CDSC for Class C Shares is 1.00% the first year you hold the shares and declines to 0% after the first year.
Performance data quoted represents past performance, which is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. From time to time, the investment advisor may waive some fees and/or reimburse expenses, which if not waived or reimbursed, will lower performance. Returns are not annualized for periods of less than one year. Assumes reinvestment of all dividends and capital gains. Class Y Shares are sold at net asset value (NAV), without an initial sales charge and are not subject to a 12b-1 fee or contingent deferred sales charges.
Performance data quoted represents past performance, which is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. From time to time, the investment advisor may waive some fees and/or reimburse expenses, which if not waived or reimbursed, will lower performance. Returns are not annualized for periods of less than one year. Assumes reinvestment of all dividends and capital gains. Class INST Shares are sold at net asset value (NAV), without an initial sales charge and are not subject to a 12b-1 fee or contingent deferred sales charges.

Consider Touchstone Credit Opportunities Fund to Your Client Portfolios

Investing primarily in global debt securities, Touchstone Credit Opportunities Fund allocates assets among core investments and opportunistic investments as market conditions change. It seeks absolute total return, primarily from income and capital appreciation.
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Portfolio

as of 09/30/2018
Number of Long Holdings
214
Number of Short Holdings
1
as of 09/30/2018
Composition % of Portfolio
Bonds 76.6
Bank Loans 12.4
Special Situations 5.8
Collateralized Loan Obligations Equity 3.1
Cash Equivalents 1.1
Collateralized Loan Obligations Debt 1.0
Equities 0.0
Closed end Funds 0.0
Derivatives 0.0
Data may not total due to rounding.
For the data illustrated for Touchstone Domestic Equity Funds, Morningstar is the source. For the data illustrated for Touchstone Fixed Income Funds,  International/Global Equity Funds and Multi-Asset & Alternative Funds, the fund’s sub-advisor is the source. All holdings data is sourced from BNY Mellon Asset Servicing.
as of 09/30/2018
Credit Quality % of Portfolio
BBB/Baa 0.8
BB/Ba 41.8
B/B 40.6
CCC 12.4
Not Rated 3.2
Cash Equivalents 1.2
Data may not total due to rounding. The ratings agencies that provided the ratings are Standard and Poor's, and Moody's Investors Service. When ratings vary, the highest rating is used. Credit ratings of A or better are considered to be high credit quality; credit ratings of BBB are good credit quality, and the lowest category of investment grade; credit ratings BB and below are lower-rated securities ("junk bonds"); and credit ratings of CCC or below have high default risk. Where no rating has been assigned, it could be for reasons unrelated to the creditworthiness of the issuer. The credit quality ratings apply only to the credit worthiness of the issuers of the underlying securities and not the fund or its shares.  Ratings are subject to change.  
For the data illustrated for Touchstone Domestic Equity Funds, Morningstar is the source. For the data illustrated for Touchstone Fixed Income Funds,  International/Global Equity Funds and Multi-Asset & Alternative Funds, the fund’s sub-advisor is the source. All holdings data is sourced from BNY Mellon Asset Servicing.
as of 11/30/2018
Security Description % of Portfolio
FTS INTL INC 6.25% 05/01/2022 2.0
BLUE RACER MID/F 6.13% 11/15/2022 1.6
SABRE GLBL INC 5.25% 11/15/2023 1.5
SEMINOLE INC/LLC 5.88% 05/15/2021 1.3
IRB HOLDING CORP 6.75% 02/15/2026 1.2
NEW GOLD INC 6.25% 11/15/2022 1.1
SIX FLAGS ENT 4.88% 07/31/2024 1.1
CCO HOLDINGS LLC 5.00% 02/01/2028 1.1
CROWN AMER/CAP 4.75% 02/01/2026 1.1
ALTICE LX 7.75% 05/15/2022 1.1
There is no guarantee that the Fund will continue to hold any one particular security or stay invested in any one particular sector. Holdings are subject to change. Calculations for sectors and top holdings exclude cash equivalents. Data may not total due to rounding. 
For the data illustrated for Touchstone Domestic Equity Funds, Morningstar is the source. For the data illustrated for Touchstone Fixed Income Funds,  International/Global Equity Funds and Multi-Asset & Alternative Funds, the fund’s sub-advisor is the source. All holdings data is sourced from BNY Mellon Asset Servicing.
as of 09/30/2018
Security Description
Country
Shares Par Value
Current Price ($)
Market Value ($)
% of Portfolio
ACADEMY LTD INIT TL 07/02/2022 US 179,469 77.50 139,088 0.27
ACADIA HEALTH 5.13% 07/01/2022 US 92,000 99.75 91,770 0.18
ACADIA HEALTH 6.50% 03/01/2024 US 18,000 103.38 18,608 0.04
ACI WORLDWIDE 5.75% 08/15/2026 US 45,000 101.63 45,731 0.09
ACRISURE LLC 11/22/2023 US 130,673 100.17 130,891 0.26
ACRISURE LLC 7.00% 11/15/2025 US 558,000 93.25 520,307 1.02
AIR MEDICAL GROUP HOLDINGS 04/28/2022 US 298,774 98.38 293,918 0.57
AIR MEDICAL MRGR 6.38% 05/15/2023 US 462,000 89.75 414,645 0.81
AIR METHODS CORP 04/22/2024 US 150,000 90.92 136,383 0.27
ALTICE LX 7.63% 02/15/2025 LU 524,000 91.14 477,574 0.93
ALTICE LX 7.75% 05/15/2022 LU 530,000 97.13 514,763 1.00
ALTICE US FIN I 5.38% 07/15/2023 US 500,000 101.13 505,625 0.99
AMC NETWORKS INC 4.75% 08/01/2025 US 255,000 95.63 243,844 0.48
AMSURG CORP 5.63% 07/15/2022 US 322,000 102.82 331,080 0.65
APPLIED SYSTEMS INC. 11/12/2025 US 42,151 101.56 42,809 0.08
ARAMARK SERV INC 5.00% 02/01/2028 US 55,000 98.13 53,969 0.11
ARDAGH PKG FIN 6.00% 02/15/2025 IE 145,000 97.88 141,919 0.28
ARISTOCRAT LEISURE LMT 10/19/2024 US 251,750 99.87 251,420 0.49
ASP AMC MERGE 8.00% 05/15/2025 US 588,000 76.00 446,880 0.87
ASURION LLC/2ND LIEN COV-LITE 07/14/2025 US 427,946 102.69 439,449 0.86
AVOLON HDGS 5.13% 10/01/2023 KY 96,000 101.08 97,035 0.19
B&G FOODS INC 5.25% 04/01/2025 US 380,000 95.50 362,900 0.71
BAIN CAPITAL CREDIT CLO LIMIT 04/23/2031 KY 500,000 97.58 487,906 0.95
BIOSCRIP INC 8.88% 02/15/2021 US 443,000 94.75 419,743 0.82
BLOCK COMMUNICAT 6.88% 02/15/2025 US 350,000 102.50 358,750 0.70
BLUE RACER MID/F 6.13% 11/15/2022 US 750,000 102.63 769,688 1.50
BOMBARDIER INC 7.50% 12/01/2024 CA 139,000 105.50 146,645 0.29
BOYD GAMING CORP 6.38% 04/01/2026 US 230,000 102.88 236,613 0.46
BPA LABORATORIES INC TL 2L 04/29/2020 US 352,985 92.33 325,922 0.64
BUILDERS FIRSTSO 5.63% 09/01/2024 US 111,000 96.13 106,699 0.21
BWAY HOLDING COMPANY 04/03/2024 US 204,166 99.88 203,911 0.40
BWX TECHNOLOGIES 5.38% 07/15/2026 US 81,000 100.38 81,304 0.16
CABLEVISION SYS 5.88% 09/15/2022 US 300,000 101.94 305,813 0.60
CALFRAC HLDGS 8.50% 06/15/2026 US 92,000 93.25 85,790 0.17
CALIFORNIA RESOU 8.00% 12/15/2022 US 114,000 95.50 108,870 0.21
CALIFORNIA RESOURCES CORP 2L 12/31/2021 US 100,000 110.79 110,792 0.22
CALIFORNIA RESOURCES CORP/TERM 11/14/2022 US 96,739 101.46 98,149 0.19
CARLSON TRAVEL 6.75% 12/15/2023 US 110,000 100.38 110,413 0.22
CATALINA MARKETING CORP 04/09/2021 US 221,014 41.06 90,755 0.18
CCO HOLDINGS LLC 5.00% 02/01/2028 US 675,000 93.99 634,433 1.24
CCO HOLDINGS LLC 5.13% 05/01/2027 US 190,000 94.75 180,025 0.35
CD&R WATERWORKS 6.13% 08/15/2025 US 28,000 95.50 26,740 0.05
CENTENE CORP 4.75% 01/15/2025 US 160,000 99.75 159,600 0.31
CENTENE CORP 5.38% 06/01/2026 US 310,000 102.39 317,394 0.62
CENTENE CORP 6.13% 02/15/2024 US 95,000 105.00 99,750 0.19
CENTURYLINK INC 5.63% 04/01/2025 US 101,000 97.78 98,758 0.19
CLEARWATER SEA 6.88% 05/01/2025 CA 120,000 96.50 115,800 0.23
COLUMBIA/HCA 7.69% 06/15/2025 US 100,000 111.75 111,750 0.22
CONSTELLIUM NV 5.75% 05/15/2024 NL 214,000 99.38 212,663 0.42
CONSTELLIUM NV 5.88% 02/15/2026 NL 23,000 97.88 22,511 0.04
COTT HOLDINGS IN 5.50% 04/01/2025 CA 115,000 97.63 112,269 0.22
CROWN AMER/CAP 4.75% 02/01/2026 US 530,000 95.50 506,150 0.99
CSC HOLDINGS LLC 5.25% 06/01/2024 US 100,000 97.75 97,750 0.19
CUMULUS MEDIA 05/15/2022 US 266,552 98.77 263,276 0.51
CUMULUS MEDIA NEW HOLDINGS US 1,299 15.50 20,135 0.04
DAE FUNDING 4.50% 08/01/2022 US 30,000 97.50 29,250 0.06
DIEBOLD 11/06/2023 US 51,946 85.50 44,413 0.09
DIEBOLD NIXDORF INC 08/24/2022 US 137,586 104.30 143,508 0.28
DIGICEL GROUP 8.25% 09/30/2020 BM 423,000 76.25 322,538 0.63
DIGICEL LIMITED 6.00% 04/15/2021 BM 500,000 92.75 463,750 0.91
DJO FINANCE LLC 06/08/2020 US 248,096 99.94 247,943 0.48
DJO FINANCE LLC 10.75% 04/15/2020 US 246,000 99.25 244,155 0.48
DJO FINANCE LLC 8.13% 06/15/2021 US 410,000 102.13 418,713 0.82
DREYFUS-GOV C-IN US 2,567,408 1.00 2,567,408 5.01
DRYDEN SENIOR LOAN FUND 8.76% 08/15/2030 KY 500,000 101.53 507,673 0.99
DYNEGY INC 7.63% 11/01/2024 US 200,000 107.63 215,250 0.42
EMERALD 2 LIMITED TLB1 05/14/2021 US 34,217 100.17 34,274 0.07
ENERGIZER HOLDINGS INC 06/20/2025 US 46,533 100.31 46,679 0.09
ENGILITY CORP TL B2 08/12/2023 US 86,446 100.23 86,644 0.17
ENTERPRISE DEVEL 12.00% 07/15/2024 US 185,000 96.25 178,063 0.35
ENVIGO HOLDINGS TL 10/28/2021 US 56,692 98.75 55,983 0.11
ENVIGO LABORATORIES INC. A US 1,179 0.00 0 0.00
ENVIGO LABORATORIES INC. B US 1,889 0.00 0 0.00
ENVISION HEALTH 6.25% 12/01/2024 US 102,000 107.50 109,650 0.21
ESH HOSPITALITY 5.25% 05/01/2025 US 521,000 96.75 504,068 0.98
EVERGREEN SKILLS LUX S.A.R.L. 04/28/2021 US 187,159 94.79 177,412 0.35
EXTRACTION OIL 5.63% 02/01/2026 US 348,000 88.50 307,980 0.60
EXTRACTION OIL 7.38% 05/15/2024 US 63,000 98.75 62,213 0.12
FAIR ISAAC CORP 5.25% 05/15/2026 US 52,000 100.88 52,455 0.10
FINANCIAL & RISK 8.25% 11/15/2026 US 32,000 99.39 31,806 0.06
FIRST QUANTUM 6.88% 03/01/2026 CA 135,000 90.88 122,681 0.24
FORTERRA FINANCE LLC 10/25/2023 US 442,362 95.58 422,801 0.83
FREEPORT-MC C&G 5.45% 03/15/2043 US 160,000 91.00 145,600 0.28
FREEPORT-MCMORAN 4.00% 11/14/2021 US 109,000 99.13 108,046 0.21
FREEPORT-MCMORAN 5.40% 11/14/2034 US 210,000 94.00 197,400 0.39
FRONTIER COMM 11.00% 09/15/2025 US 230,000 77.97 179,333 0.35
FRONTIER COMM 8.50% 04/01/2026 US 60,000 94.50 56,700 0.11
FTS INTERNATIONAL INC 04/16/2021 US 46,697 100.50 46,930 0.09
FTS INTL INC 6.25% 05/01/2022 US 995,000 96.25 957,688 1.87
GENERAL NUTRITION CENTER 03/04/2021 US 101,361 98.25 99,587 0.19
GENERAL NUTRITION CENTER 12/30/2022 US 117,372 102.33 120,110 0.23
GENESYS/GREENEDE 10.00% 11/30/2024 US 245,000 110.75 271,338 0.53
GEO GROUP INC/T 6.00% 04/15/2026 US 225,000 95.75 215,438 0.42
GOLDEN NUGGET 6.75% 10/15/2024 US 140,000 101.44 142,013 0.28
GRAY TELE INC 5.13% 10/15/2024 US 360,000 96.63 347,850 0.68
GREENWOOD PARK CLO LTD 04/15/2031 KY 250,000 96.78 241,960 0.47
GROUP 1 AUTO 5.00% 06/01/2022 US 306,000 99.50 304,470 0.59
GRT WRN PTRL 9.00% 09/30/2021 US 106,000 98.50 104,410 0.20
GULF FINANCE TLB 08/25/2023 US 58,724 83.61 49,097 0.10
H.B. FULLER CO 4.00% 02/15/2027 US 93,000 90.00 83,700 0.16
HECLA MINING CO 6.88% 05/01/2021 US 300,000 100.25 300,750 0.59
HILLMAN GROUP 6.38% 07/15/2022 US 550,000 90.00 495,000 0.97
HILL-ROM HLDGS 5.00% 02/15/2025 US 222,000 97.78 217,078 0.42
HUB INTERNATIONAL LTD 04/25/2025 US 234,081 100.18 234,490 0.46
IMMUCOR INC 11.13% 02/15/2022 US 23,000 101.25 23,288 0.05
INFOBLOX INC TL 11/07/2023 US 104,140 100.53 104,687 0.20
INMARSAT FINANCE 6.50% 10/01/2024 GB 240,000 101.50 243,600 0.48
INTELSAT JACKSON 8.00% 02/15/2024 LU 120,000 105.25 126,300 0.25
IRB HOLDING CORP 6.75% 02/15/2026 US 600,000 98.00 588,000 1.15
IRON MOUNTAIN 5.25% 03/15/2028 US 351,000 92.75 325,553 0.64
IRON MOUNTAIN INFO MGMT 06/05/2023 US 196,102 99.25 194,631 0.38
JELD-WEN INC./TERM LOAN B 12/31/2024 US 165,958 100.21 166,303 0.32
JELD-WEN INC 4.63% 12/15/2025 US 33,000 92.25 30,443 0.06
JELD-WEN INC 4.88% 12/15/2027 US 575,000 91.13 523,969 1.02
KAR AUCTION 5.13% 06/01/2025 US 250,000 97.00 242,500 0.47
KFC HLD/PIZZA HU 4.75% 06/01/2027 US 385,000 96.13 370,081 0.72
KRATON POLYMERS 7.00% 04/15/2025 US 163,000 102.75 167,483 0.33
L BRANDS INC 6.88% 11/01/2035 US 101,000 84.50 85,345 0.17
LEE ENTERPRISES 9.50% 03/15/2022 US 275,000 103.75 285,313 0.56
LEVEL 3 FIN INC 5.38% 01/15/2024 US 500,000 99.92 499,620 0.98
LX137517 EAGLE TOPCO 2013 LIMI GB 692,722 0.41 282,607 0.55
MADISON PARK FUNDING LTD 07/20/2026 KY 300,000 64.93 194,780 0.38
MEG ENERGY CORP 6.38% 01/30/2023 CA 310,000 91.00 282,100 0.55
MEG ENERGY CORP 7.00% 03/31/2024 CA 255,000 91.25 232,688 0.45
MGM RESORTS 5.75% 06/15/2025 US 145,000 100.38 145,544 0.28
MMODAL LLC/ TERM LOAN US 8,386 49.75 417,204 0.81
MOLINA HEALTHCAR 4.88% 06/15/2025 US 110,000 98.25 108,075 0.21
MOLINA HEALTHCAR 5.38% 11/15/2022 US 295,000 101.63 299,794 0.59
MULTI-COLOR CORP 4.88% 11/01/2025 US 170,000 93.50 158,950 0.31
MURPHY OIL CORP 6.88% 08/15/2024 US 250,000 105.86 264,657 0.52
MURRAY ENERGY 11.25% 04/15/2021 US 27,000 71.50 19,305 0.04
MURRAY ENERGY 12.00% 04/15/2024 US 167,000 67.00 111,890 0.22
MURRAY ENERGY TERM LOAN B2 04/17/2020 US 237,825 91.55 217,738 0.42
NCR CORP 5.00% 07/15/2022 US 526,000 99.19 521,726 1.02
NETFLIX INC 4.88% 04/15/2028 US 385,000 94.00 361,900 0.71
NEW GOLD INC 6.25% 11/15/2022 CA 625,000 87.25 545,313 1.06
NEW GOLD INC 6.38% 05/15/2025 CA 100,000 83.00 83,000 0.16
NEXSTAR BROADC 5.63% 08/01/2024 US 449,000 97.88 439,459 0.86
NGL ENRGY PART/F 7.50% 11/01/2023 US 306,000 100.00 306,000 0.60
NIELSEN CO LUXEM 5.00% 02/01/2025 LU 495,000 98.00 485,100 0.95
NIELSEN FINANCE 5.00% 04/15/2022 US 550,000 97.50 536,250 1.05
NOVELIS CORP 5.88% 09/30/2026 US 286,000 97.70 279,422 0.55
OLIN CORP 5.00% 02/01/2030 US 120,000 93.25 111,900 0.22
OPTIV SECURITY INC 02/01/2024 US 48,271 97.16 46,898 0.09
OZLM LTD 01/20/2031 KY 500,000 87.85 439,227 0.86
PARSLEY ENERGY 5.38% 01/15/2025 US 99,000 100.25 99,248 0.19
PARSLEY ENERGY 6.25% 06/01/2024 US 500,000 104.25 521,250 1.02
PEABODY ENERGY 6.00% 03/31/2022 US 115,000 101.75 117,013 0.23
PETCO ANIMAL SUPPLIES INC. 01/26/2023 US 263,815 80.91 213,460 0.42
PETSMART INC 03/11/2022 US 39,897 87.10 34,751 0.07
PETSMART INC 5.88% 06/01/2025 US 77,000 81.97 63,116 0.12
PLATFORM SPECIAL 5.88% 12/01/2025 US 221,000 98.68 218,076 0.43
QUICKEN LOANS IN 5.25% 01/15/2028 US 315,000 92.88 292,556 0.57
RADIATE HOLDCO L 6.63% 02/15/2025 US 320,000 93.50 299,200 0.58
RADNET MANAGEMENT INC. 06/30/2023 US 238,442 100.58 239,813 0.47
RBS GLOBAL/REXNO 4.88% 12/15/2025 US 273,000 95.25 260,033 0.51
REALOGY GRP / CO 4.88% 06/01/2023 US 498,000 93.63 466,253 0.91
REVLON CONSUMER PRODUCTS CORP 09/07/2023 US 8,733 76.10 6,646 0.01
ROWAN COS INC 7.38% 06/15/2025 US 122,000 99.50 121,390 0.24
SABRE GLBL INC 5.25% 11/15/2023 US 714,000 100.00 714,000 1.39
SCIENTIFIC GAMES INTL 08/14/2024 US 250,000 99.81 249,533 0.49
SEADRILL OPERATING LP 02/21/2021 US 63,500 94.78 60,182 0.12
SEMINOLE INC/LLC 5.88% 05/15/2021 US 600,000 100.38 602,250 1.18
SENSATA TECH BV 5.00% 10/01/2025 NL 647,000 99.75 645,383 1.26
SEQUA CORPORATION 04/28/2022 US 124,438 98.25 122,260 0.24
SEQUA CORPORATION 11/28/2021 US 239,198 98.25 235,012 0.46
SIMMONS FOODS 5.75% 11/01/2024 US 245,000 76.63 187,731 0.37
SIMMONS FOODS 7.75% 01/15/2024 US 70,000 103.50 72,450 0.14
SINCLAIR TELE 5.13% 02/15/2027 US 413,000 91.88 379,444 0.74
SINCLAIR TELE 5.63% 08/01/2024 US 300,000 97.88 293,625 0.57
SINCLAIR TELE 5.88% 03/15/2026 US 125,000 97.51 121,888 0.24
SIRIUS XM RADIO 5.00% 08/01/2027 US 160,000 96.22 153,954 0.30
SIRIUS XM RADIO 5.38% 07/15/2026 US 300,000 99.25 297,750 0.58
SIX FLAGS ENT 4.88% 07/31/2024 US 557,000 97.50 543,075 1.06
SIX FLAGS ENT 5.50% 04/15/2027 US 250,000 99.00 247,500 0.48
SOLERA LLC / FIN 10.50% 03/01/2024 US 200,000 109.25 218,500 0.43
SPRINT CORP 7.63% 02/15/2025 US 443,000 106.05 469,802 0.92
SRC ENERGY 6.25% 12/01/2025 US 220,000 94.00 206,800 0.40
STARFRUIT FINCO 8.00% 10/01/2026 NL 91,000 101.50 92,365 0.18
STATION CASINOS 5.00% 10/01/2025 US 380,000 95.78 363,964 0.71
STERIGENICS-NORD 6.50% 05/15/2023 US 258,000 103.00 265,740 0.52
SUMMIT MID HLD / 5.50% 08/15/2022 US 207,000 99.63 206,224 0.40
SUMMIT MID HLD / 5.75% 04/15/2025 US 347,000 96.25 333,988 0.65
TARGA RES PRTNRS 5.88% 04/15/2026 US 89,000 103.13 91,781 0.18
TE HOLDCORP LLC CORP COMMON ST US 74,381 0.75 55,785 0.11
TE HOLDCORP LLC/CORP PREFERRED US 11,748 6.00 70,488 0.14
TENET HEALTHCARE 4.63% 07/15/2024 US 220,000 97.25 213,950 0.42
THC ESCROW CORP 7.00% 08/01/2025 US 424,000 98.75 418,700 0.82
T-MOBILE USA INC 4.75% 02/01/2028 US 350,000 94.13 329,438 0.64
TOWNSQUARE MEDIA 6.50% 04/01/2023 US 215,000 92.50 198,875 0.39
TR OP / TR FIN 5.38% 09/01/2025 LU 60,000 96.41 57,843 0.11
TRANSDIGM INC 6.00% 07/15/2022 US 69,000 101.63 70,121 0.14
TRANSDIGM INC 6.50% 05/15/2025 US 250,000 101.88 254,688 0.50
TRAVERSE MIDSTREAM PARTNERS 09/27/2024 US 57,281 100.67 57,663 0.11
TRIBUNE MEDIA 5.88% 07/15/2022 US 500,000 101.75 508,750 0.99
TUTOR PERINI CRP 6.88% 05/01/2025 US 350,000 102.75 359,625 0.70
ULTRA RESOURCES 04/12/2024 US 116,410 89.92 104,672 0.20
UNITED RENTAL NA 4.88% 01/15/2028 US 51,000 93.75 47,813 0.09
UNITED RENTAL NA 5.88% 09/15/2026 US 375,000 102.63 384,844 0.75
VALEANT PHARMA 5.50% 03/01/2023 US 199,000 96.25 191,538 0.37
VALEANT PHARMA 5.63% 12/01/2021 CA 110,000 99.63 109,588 0.21
VALEANT PHARMA 6.50% 03/15/2022 CA 100,000 104.00 104,000 0.20
VENATOR FIN SARL 5.75% 07/15/2025 US 190,000 90.50 171,950 0.34
VENTURE CDO LTD 0.00% 10/15/2029 KY 250,000 71.57 178,915 0.35
VERITAS US INC 01/27/2023 US 131,275 97.38 127,829 0.25
VIDEOTRON LTD 5.13% 04/15/2027 CA 260,000 98.00 254,800 0.50
VISTRA OPERATION 5.50% 09/01/2026 US 151,000 101.13 152,699 0.30
VISTRA OPERATIONS COMP 12/31/2025 US 138,396 100.08 138,500 0.27
VIX 10/17/18 BC20 10/18/2018 US 60 0.30 1,800 0.00
WELLCARE HEALTH 5.38% 08/15/2026 US 85,000 101.75 86,488 0.17
WHITING PETRO 5.75% 03/15/2021 US 50,000 102.50 51,250 0.10
WHITING PETRO 6.25% 04/01/2023 US 239,000 103.50 247,365 0.48
WHITING PETRO 6.63% 01/15/2026 US 80,000 104.00 83,200 0.16
WIDEOPENWEST FINANCE LLC 08/18/2023 US 497,487 97.83 486,707 0.95
COMMUNICATIONS S 7.13% 12/15/2024 US -350,000 91.50 -320,250 -0.63
There is no guarantee that the Fund will continue to hold any one particular security or stay invested in any one particular sector. Holdings are subject to change. Calculations for sectors and top holdings exclude cash equivalents. Data may not total due to rounding. 
For the data illustrated for Touchstone Domestic Equity Funds, Morningstar is the source. For the data illustrated for Touchstone Fixed Income Funds,  International/Global Equity Funds and Multi-Asset & Alternative Funds, the fund’s sub-advisor is the source. All holdings data is sourced from BNY Mellon Asset Servicing.

Management

Management

Actively Managed and Sub-Advised by Ares Capital Management II LLC*
Brufsky

Seth Brufsky

Investment Experience since 1990

Career Summary 
Ares Capital Management II LLC
Merrill Lynch & Co.
Union Bank of Switzerland 

Education 
MBA - University of Southern California
BS - Cornell University

Fees

Total Annual Fund Operating Expense Ratio
Net Annual Fund Operating Expense Ratio
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 1.69% for Class A Shares, 2.44% for Class C Shares, 1.44% for Class Y Shares and 1.34% for Class INST Shares. These expense limitations will remain in effect until at least 10/29/2019.

Distributions

Capital Gain and Income Distribution as of
Pay Date Income Distribution Short Term Capital Gains Per Share Long Term Capital Gains Per Share Total Capital Gains Per Share

Resources

Consider Touchstone Credit Opportunities Fund for Your Portfolios

Investing primarily in global debt securities, Touchstone Credit Opportunities Fund allocates assets among core investments and opportunistic investments as market conditions change. It seeks absolute total return, primarily from income and capital appreciation.
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*Ares does not endorse, approve, certify or control the content of this website and does not assume responsibility for its accuracy, completeness or timeliness of the information herein. An investment in the Touchstone Credit Opportunities Fund does not constitute an investment in the sub-advisor.An investment in the TCOF is not an investment in Ares or an Ares managed fund or strategy. There is no assurance that unrealized values within the Ares sub-advised strategies will be achieved or that past results are indicative of future results. Moreover, it should be noted that Ares manages a global diverse investment platform with differing investment strategies some of which may be inconsistent with the sub-advised strategies within the TCOF.

“The parent company is Ares Management, L.P. (NYSE: ARES), is a publicly traded, leading global alternative asset manager with approximately $112.5 billion of assets under management as of March 31, 2018, and 18 offices in the United States, Europe, Asia and Australia. Since its inception in 1997, Ares has adhered to a disciplined investment philosophy that focuses on delivering strong risk-adjusted investment returns throughout market cycles. Ares believes each of its three distinct but complementary investment groups in Credit, Private Equity, and Real Estate is a market leader based on assets under management and investment performance. Ares was built upon the fundamental principle that each group benefits from being part of the greater whole.”

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 Resources & Tools. 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. All investing involves risk.

Touchstone Funds are distributed by Touchstone Securities, Inc., a registered broker-dealer and member FINRA/SIPC

Investment products offered are not FDIC insured, may lose value and have no bank guarantee.

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