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 06/30/2018
Total Fund Net Assets as of 06/30/2018 $52,385,190
Asset Class Multi-Asset / Alternative, Income
Morningstar Category Intermediate-Term Bond
Benchmark ICE BofA Merrill Lynch 3-Month U.S. Treasury Bill Index
Distribution Frequency Quarterly
Portfolio Turnover Rate
Fiscal Year End
Prospectus Date 10/30/2017

Performance

Daily Returns as of
NAV NAV $ Change
Touchstone Credit Opportunities Fund -
HISTORICAL DAILY NAV
as of 07/31/2018 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 0.16% 0.48% 0.97% 1.43% 0.73% 0.45% 0.35% --
as of 06/30/2018 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 1.36% 0.68% 0.42% 0.35% --
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 Funds will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. 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 Equity Funds is 5.75%.
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 Funds will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. 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 in effect at the end of the specified period. The contingent deferred sales charge 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 Funds will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. 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 NAV, without an initial sales charge and are not subject to a 12b-1 fee or CDSC, but may be subject to higher initial investment requirements than other classes of shares of a Fund.
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 Funds 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, may lower performance. Returns are not annualized for periods of less than one year. Assumes reinvestment of all dividends and capital gains.

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 06/30/2018
Number of Long Holdings
216
Number of Short Holdings
2
Effective Duration
3.6 Years
as of 06/30/2018
Composition % of Portfolio
Bonds 78.3
Bank Loans 9.3
Special Situations 4.8
Cash Equivalents 3.4
Collateralized Loan Obligations Equity 2.5
Collateralized Loan Obligations Debt 1.6
Derivatives 0.1
Equities 0.0
Closed end Funds 0.0
as of 06/30/2018
Credit Quality % of Portfolio
BBB/Baa 1.7
BB/Ba 38.2
B/B 40.2
CCC 13.9
Not Rated 2.6
Cash Equivalents 3.4
as of 07/31/2018
Security Description % of Portfolio
FTS INTL INC 6.25% 05/01/2022 2.0
BLUE RACER MID/F 6.13% 11/15/2022 1.5
SABRE GLBL INC 5.25% 11/15/2023 1.4
SENSATA TECH BV 5.00% 10/01/2025 1.3
CCO HOLDINGS LLC 5.00% 02/01/2028 1.3
SEMINOLE INC/LLC 5.88% 05/15/2021 1.2
SIX FLAGS ENT 4.88% 07/31/2024 1.1
NEW GOLD INC 6.25% 11/15/2022 1.1
JELD-WEN INC 4.88% 12/15/2027 1.1
HILLMAN GROUP 6.38% 07/15/2022 1.0
as of 06/30/2018
Security Description
Country
Shares Par Value
Current Price ($)
Market Value ($)
% of Portfolio
ACADEMY LTD INIT TL 07/02/2022 US 194,836 82.97 161,659 0.31
ACADIA HEALTH 6.50% 03/01/2024 US 18,000 102.50 18,450 0.04
ACRISURE LLC 11/22/2023 US 131,000 99.13 129,854 0.25
ACRISURE LLC 7.00% 11/15/2025 US 558,000 91.00 507,780 0.96
AIR MEDICAL GROUP HOLDINGS 04/28/2022 US 299,526 97.02 290,603 0.55
AIR MEDICAL MRGR 6.38% 05/15/2023 US 462,000 93.00 429,660 0.82
ALTA MESA HLDGS 7.88% 12/15/2024 US 310,000 105.88 328,213 0.62
ALTICE LX 7.63% 02/15/2025 LU 524,000 92.00 482,080 0.91
ALTICE LX 7.75% 05/15/2022 LU 480,000 96.75 464,400 0.88
ALTICE US FIN I 5.38% 07/15/2023 US 500,000 99.50 497,500 0.94
AMC NETWORKS INC 4.75% 08/01/2025 US 255,000 96.13 245,121 0.47
AMSURG CORP 5.63% 07/15/2022 US 322,000 101.31 326,226 0.62
APPLIED SYSTEMS INC. 11/12/2025 US 42,151 102.75 43,310 0.08
ARAMARK SERV INC 5.00% 02/01/2028 US 55,000 95.50 52,525 0.10
ARCELORMITTAL 7.25% 10/15/2039 LU 195,000 114.82 223,899 0.42
ARD FINANCE SA 7.13% 09/15/2023 LU 330,000 100.25 330,825 0.63
ARDAGH PKG FIN 6.00% 02/15/2025 IE 145,000 97.38 141,194 0.27
ASP AMC MERGE 8.00% 05/15/2025 US 488,000 83.00 405,040 0.77
ASURION LLC/2ND LIEN COV-LITE 07/14/2025 US 348,458 101.38 353,250 0.67
B&G FOODS INC 5.25% 04/01/2025 US 380,000 94.25 358,150 0.68
BAIN CAPITAL CREDIT CLO LIMIT 04/23/2031 KY 500,000 90.88 454,375 0.86
BALBOA MERGER 11.38% 12/01/2021 US 434,000 108.00 468,720 0.89
BBA US HOLDINGS 5.38% 05/01/2026 US 30,000 100.38 30,113 0.06
BIOSCRIP INC 8.88% 02/15/2021 US 443,000 95.50 423,065 0.80
BLOCK COMMUNICAT 6.88% 02/15/2025 US 350,000 99.75 349,125 0.66
BLUE RACER MID/F 6.13% 11/15/2022 US 750,000 101.00 757,500 1.44
BOMBARDIER INC 6.00% 10/15/2022 CA 165,000 99.60 164,332 0.31
BOMBARDIER INC 7.50% 12/01/2024 CA 189,000 105.25 198,923 0.38
BOYD GAMING CORP 6.38% 04/01/2026 US 230,000 101.25 232,875 0.44
BPA LABORATORIES INC TL 2L 04/29/2020 US 352,985 92.00 324,746 0.62
BUILDERS FIRSTSO 5.63% 09/01/2024 US 111,000 97.25 107,948 0.20
BWAY HOLDING CO 7.25% 04/15/2025 US 125,000 97.50 121,875 0.23
BWAY HOLDING COMPANY 04/03/2024 US 114,455 99.39 113,758 0.22
BWX TECHNOLOGIES 5.38% 07/15/2026 US 81,000 101.25 82,013 0.16
CABLEVISION SYS 5.88% 09/15/2022 US 300,000 99.25 297,750 0.56
CALFRAC HLDGS 8.50% 06/15/2026 US 145,000 99.50 144,275 0.27
CALIFORNIA RESOU 8.00% 12/15/2022 US 179,000 90.75 162,443 0.31
CALIFORNIA RESOURCES CORP 2L 12/31/2021 US 100,000 110.50 110,500 0.21
CALIFORNIA RESOURCES CORP/TERM 11/14/2022 US 96,739 101.69 98,372 0.19
CARLSON TRAVEL 6.75% 12/15/2023 US 110,000 98.00 107,800 0.20
CATALINA MARKETING CORP 04/09/2021 US 311,043 62.50 194,402 0.37
CCO HOLDINGS LLC 5.00% 02/01/2028 US 675,000 91.50 617,625 1.17
CCO HOLDINGS LLC 5.13% 05/01/2027 US 190,000 93.56 177,769 0.34
CENTENE CORP 4.75% 01/15/2025 US 215,000 99.50 213,925 0.41
CENTENE CORP 6.13% 02/15/2024 US 130,000 105.38 136,988 0.26
CENTENE ESCRW 5.38% 06/01/2026 US 310,000 101.31 314,070 0.60
CENTURYLINK INC 5.63% 04/01/2025 US 101,000 94.50 95,445 0.18
CF INDUSTRIES IN 5.15% 03/15/2034 US 155,000 92.75 143,763 0.27
CHESAPEAKE ENERGY 1ST LIEN 08/16/2021 US 125,000 104.52 130,651 0.25
CLEARWATER SEA 6.88% 05/01/2025 CA 120,000 96.00 115,200 0.22
COLUMBIA/HCA 7.69% 06/15/2025 US 100,000 108.50 108,500 0.21
CONSTELLIUM NV 5.75% 05/15/2024 NL 464,000 96.75 448,920 0.85
CONSTELLIUM NV 5.88% 02/15/2026 NL 23,000 96.50 22,195 0.04
COTT HOLDINGS IN 5.50% 04/01/2025 CA 115,000 97.25 111,838 0.21
CROWN AMER/CAP 4.75% 02/01/2026 US 250,000 95.00 237,500 0.45
CSC HOLDINGS LLC 5.25% 06/01/2024 US 100,000 94.50 94,500 0.18
CUMULUS MEDIA 05/15/2022 US 152,095 99.15 150,802 0.29
CUMULUS MEDIA NEW HOLDINGS US 1,299 14.25 18,511 0.04
DIGICEL GROUP 8.25% 09/30/2020 BM 365,000 75.50 275,575 0.52
DIGICEL LIMITED 6.00% 04/15/2021 BM 500,000 90.63 453,125 0.86
DJO FINANCE LLC 10.75% 04/15/2020 US 246,000 97.75 240,465 0.46
DJO FINANCE LLC 8.13% 06/15/2021 US 460,000 101.22 465,612 0.88
DREYFUS-GOV C-IN US 3,191,211 1.00 3,191,211 6.05
DRYDEN SENIOR LOAN FUND 8.79% 08/15/2030 KY 500,000 101.73 508,655 0.97
DYNEGY INC 7.63% 11/01/2024 US 205,000 106.63 218,581 0.41
EMERALD 2 LIMITED TLB1 05/14/2021 US 34,217 99.75 34,131 0.06
ENERGIZER HOLDINGS INC 06/20/2025 US 46,533 99.96 46,513 0.09
ENGILITY CORP TL B2 08/12/2023 US 87,959 99.73 87,725 0.17
ENVIGO HOLDINGS TL 10/28/2021 US 56,835 100.00 56,835 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 102,000 106.50 108,630 0.21
ESH HOSPITALITY 5.25% 05/01/2025 US 471,000 96.50 454,515 0.86
EVERGREEN SKILLS LUX S.A.R.L. 04/28/2021 US 187,643 94.28 176,912 0.34
EXTRACTION OIL 5.63% 02/01/2026 US 298,000 95.76 285,353 0.54
EXTRACTION OIL 7.38% 05/15/2024 US 63,000 104.75 65,993 0.13
FAIR ISAAC CORP 5.25% 05/15/2026 US 52,000 100.38 52,195 0.10
FIDELITY & GUARA 5.50% 05/01/2025 US 25,000 97.50 24,375 0.05
FIRST QUAL FIN C 5.00% 07/01/2025 US 155,000 91.50 141,825 0.27
FIRST QUANTUM 6.88% 03/01/2026 CA 200,000 95.75 191,500 0.36
FIRST QUANTUM 7.50% 04/01/2025 CA 203,000 98.69 200,341 0.38
FORTERRA FINANCE LLC 10/25/2023 US 443,491 93.23 413,462 0.78
FREEPORT-MC C&G 5.45% 03/15/2043 US 160,000 87.72 140,352 0.27
FREEPORT-MCMORAN 5.40% 11/14/2034 US 260,000 90.75 235,950 0.45
FRONTIER COMM 11.00% 09/15/2025 US 230,000 79.97 183,931 0.35
FRONTIER COMM 8.50% 04/01/2026 US 50,000 96.50 48,250 0.09
FTS INTERNATIONAL INC 04/16/2021 US 66,998 100.21 67,137 0.13
FTS INTL INC 6.25% 05/01/2022 US 995,000 100.87 1,003,657 1.90
GENERAL NUTRITION CENTER 03/04/2021 US 133,959 95.91 128,481 0.24
GENERAL NUTRITION CENTER 12/30/2022 US 117,372 103.07 120,976 0.23
GENESYS/GREENEDE 10.00% 11/30/2024 US 395,000 111.61 440,869 0.84
GEO GROUP INC/T 6.00% 04/15/2026 US 225,000 97.00 218,250 0.41
GOLDEN NUGGET 6.75% 10/15/2024 US 140,000 100.02 140,025 0.27
GRAY TELE INC 5.13% 10/15/2024 US 360,000 95.72 344,592 0.65
GRINDING MEDIA/M 7.38% 12/15/2023 US 150,000 104.25 156,375 0.30
GRT WRN PTRL 9.00% 09/30/2021 US 106,000 102.00 108,120 0.21
GULF FINANCE TLB 08/25/2023 US 58,870 86.08 50,677 0.10
H.B. FULLER CO 4.00% 02/15/2027 US 171,000 89.75 153,473 0.29
HANGER INC US 15,600 16.96 264,576 0.50
HECLA MINING CO 6.88% 05/01/2021 US 300,000 101.06 303,177 0.58
HILLMAN GROUP 6.38% 07/15/2022 US 550,000 95.75 526,625 1.00
HILL-ROM HLDGS 5.00% 02/15/2025 US 250,000 97.00 242,500 0.46
HUB INTERNATIONAL LTD 04/25/2025 US 234,668 99.34 233,114 0.44
HUDBAY MINERALS 7.25% 01/15/2023 CA 37,000 103.00 38,110 0.07
INFOBLOX INC TL 11/07/2023 US 104,402 100.63 105,055 0.20
INMARSAT FINANCE 6.50% 10/01/2024 GB 380,000 100.25 380,950 0.72
INTELSAT JACKSON 8.00% 02/15/2024 LU 120,000 105.00 126,000 0.24
IRB HOLDING CORP 6.75% 02/15/2026 US 550,000 95.50 525,250 1.00
IRON MOUNTAIN 5.25% 03/15/2028 US 262,000 92.54 242,455 0.46
J2 CLOUD LLC/INC 6.00% 07/15/2025 US 220,000 101.25 222,750 0.42
JC PENNEY CORP 5.88% 07/01/2023 US 125,000 93.75 117,188 0.22
JELD-WEN INC./TERM LOAN B 12/31/2024 US 166,376 99.56 165,649 0.31
JELD-WEN INC 4.63% 12/15/2025 US 60,000 95.25 57,150 0.11
JELD-WEN INC 4.88% 12/15/2027 US 550,000 93.00 511,500 0.97
KAR AUCTION 5.13% 06/01/2025 US 250,000 95.50 238,750 0.45
KRATON POLYMERS 7.00% 04/15/2025 US 163,000 103.50 168,705 0.32
L BRANDS INC 6.88% 11/01/2035 US 101,000 89.00 89,890 0.17
LEE ENTERPRISES 9.50% 03/15/2022 US 275,000 104.38 287,031 0.54
LEVEL 3 FIN INC 5.38% 01/15/2024 US 500,000 97.95 489,750 0.93
LX137517 EAGLE TOPCO 2013 LIMI GB 461,722 0.40 182,807 0.35
MADISON PARK FUNDING LTD 07/20/2026 KY 300,000 72.98 218,951 0.42
MEG ENERGY CORP 6.38% 01/30/2023 CA 310,000 93.00 288,300 0.55
MEG ENERGY CORP 7.00% 03/31/2024 CA 210,000 93.25 195,825 0.37
MGM GROWTH/MGM F 4.50% 01/15/2028 US 62,000 90.75 56,265 0.11
MGM RESORTS 5.75% 06/15/2025 US 145,000 99.85 144,775 0.27
MMODAL LLC/ TERM LOAN US 8,386 32.50 272,545 0.52
MOHEGAN GAMING 7.88% 10/15/2024 US 261,000 94.50 246,645 0.47
MOLINA HEALTHCAR 4.88% 06/15/2025 US 125,000 97.00 121,250 0.23
MOLINA HEALTHCAR 5.38% 11/15/2022 US 295,000 100.63 296,844 0.56
MUELLER WATER 5.50% 06/15/2026 US 19,000 100.75 19,143 0.04
MURPHY OIL CORP 6.88% 08/15/2024 US 250,000 105.00 262,500 0.50
MURRAY ENERGY 11.25% 04/15/2021 US 418,000 59.00 246,620 0.47
MURRAY ENERGY TERM LOAN B2 04/17/2020 US 313,609 94.05 294,943 0.56
NCR CORP 5.00% 07/15/2022 US 500,000 99.00 495,000 0.94
NETFLIX INC 4.88% 04/15/2028 US 385,000 95.32 366,970 0.70
NEW GOLD INC 6.25% 11/15/2022 CA 575,000 101.00 580,750 1.10
NEXSTAR BROADC 5.63% 08/01/2024 US 449,000 96.75 434,408 0.82
NGL ENRGY PART/F 7.50% 11/01/2023 US 330,000 101.00 333,300 0.63
NIELSEN CO LUXEM 5.00% 02/01/2025 LU 495,000 95.25 471,488 0.89
NIELSEN FINANCE 5.00% 04/15/2022 US 500,000 98.26 491,300 0.93
NOVELIS CORP 5.88% 09/30/2026 US 235,000 95.75 225,013 0.43
OLIN CORP 5.00% 02/01/2030 US 120,000 94.50 113,400 0.22
OPTIV SECURITY INC 02/01/2024 US 48,397 97.00 46,945 0.09
OZLM LTD 01/20/2031 KY 500,000 96.91 484,535 0.92
PARSLEY ENERGY 5.38% 01/15/2025 US 99,000 99.25 98,258 0.19
PARSLEY ENERGY 6.25% 06/01/2024 US 500,000 103.75 518,750 0.98
PEABODY ENERGY 6.00% 03/31/2022 US 115,000 101.46 116,679 0.22
PETCO ANIMAL SUPPLIES INC. 01/26/2023 US 264,491 72.00 190,434 0.36
PETSMART INC 5.88% 06/01/2025 US 77,000 77.01 59,298 0.11
PLATFORM SPECIAL 5.88% 12/01/2025 US 221,000 97.75 216,028 0.41
QUICKEN LOANS IN 5.25% 01/15/2028 US 290,000 92.23 267,467 0.51
RADIATE HOLDCO L 6.63% 02/15/2025 US 320,000 91.50 292,800 0.56
RADNET MANAGEMENT INC. 06/30/2023 US 245,065 100.19 245,526 0.47
RBS GLOBAL/REXNO 4.88% 12/15/2025 US 230,000 94.00 216,200 0.41
REALOGY GRP / CO 4.88% 06/01/2023 US 428,000 94.00 402,320 0.76
REVLON CONSUMER PRODUCTS CORP 09/07/2023 US 8,778 77.00 6,759 0.01
RITE AID CORP 6.13% 04/01/2023 US 113,000 101.40 114,582 0.22
ROWAN COS INC 7.38% 06/15/2025 US 56,000 96.75 54,180 0.10
SABRE GLBL INC 5.25% 11/15/2023 US 714,000 100.62 718,448 1.36
SEADRILL OPERATING LP 02/21/2021 US 97,695 89.40 87,342 0.17
SEMINOLE INC/LLC 5.88% 05/15/2021 US 600,000 100.50 603,000 1.14
SENSATA TECH BV 5.00% 10/01/2025 NL 647,000 100.75 651,853 1.24
SEQUA CORPORATION 04/28/2022 US 171,438 99.75 171,009 0.32
SEQUA CORPORATION 11/28/2021 US 133,241 100.13 133,407 0.25
SIMMONS FOODS 5.75% 11/01/2024 US 245,000 86.75 212,538 0.40
SINCLAIR TELE 5.13% 02/15/2027 US 413,000 92.00 379,960 0.72
SINCLAIR TELE 5.63% 08/01/2024 US 300,000 99.25 297,750 0.56
SINCLAIR TELE 5.88% 03/15/2026 US 125,000 97.25 121,563 0.23
SIRIUS XM RADIO 5.00% 08/01/2027 US 160,000 93.63 149,800 0.28
SIRIUS XM RADIO 5.38% 07/15/2026 US 300,000 96.25 288,750 0.55
SIX FLAGS ENT 4.88% 07/31/2024 US 557,000 97.38 542,379 1.03
SIX FLAGS ENT 5.50% 04/15/2027 US 250,000 97.10 242,740 0.46
SOLERA LLC / FIN 10.50% 03/01/2024 US 410,000 111.06 455,358 0.86
SPRINT CORP 7.63% 02/15/2025 US 443,000 102.00 451,864 0.86
SPY 09/21/18 BP260 09/22/2018 US 136 3.88 52,768 0.10
SRC ENERGY 6.25% 12/01/2025 US 220,000 99.88 219,725 0.42
STANDARD INDS IN 4.75% 01/15/2028 US 66,000 91.75 60,555 0.11
STATION CASINOS 5.00% 10/01/2025 US 131,000 94.00 123,140 0.23
SUMMIT MATERIALS 6.13% 07/15/2023 US 295,000 101.50 299,425 0.57
SUMMIT MID HLD / 5.50% 08/15/2022 US 207,000 98.25 203,378 0.39
SUMMIT MID HLD / 5.75% 04/15/2025 US 390,000 95.00 370,500 0.70
SYMPHONY CLO LTD 5.37% 07/15/2028 KY 300,000 100.05 300,147 0.57
SYNIVERSE HOLDINGS INC 03/09/2023 US 78,926 99.79 78,762 0.15
TARGA RES PRTNRS 5.88% 04/15/2026 US 89,000 100.75 89,668 0.17
TE HOLDCORP LLC CORP COMMON ST US 74,381 1.00 74,381 0.14
TE HOLDCORP LLC/CORP PREFERRED US 11,748 6.50 76,362 0.14
TENET HEALTHCARE 4.63% 07/15/2024 US 220,000 94.72 208,384 0.40
THC ESCROW CORP 7.00% 08/01/2025 US 444,000 99.25 440,670 0.84
T-MOBILE USA INC 4.75% 02/01/2028 US 220,000 92.63 203,775 0.39
TOWNSQUARE MEDIA 6.50% 04/01/2023 US 200,000 90.00 180,000 0.34
TR OP / TR FIN 5.38% 09/01/2025 LU 60,000 99.13 59,475 0.11
TRANSDIGM INC 6.00% 07/15/2022 US 69,000 100.53 69,366 0.13
TRANSDIGM INC 6.50% 05/15/2025 US 250,000 101.13 252,813 0.48
TRAVELPORT CORP 6.00% 03/15/2026 GB 134,000 100.75 135,005 0.26
TRAVERSE MIDSTREAM PARTNERS 09/27/2024 US 108,281 99.88 108,146 0.21
TRIBUNE MEDIA 5.88% 07/15/2022 US 500,000 100.93 504,625 0.96
TRONOX FINANCE 5.75% 10/01/2025 GB 256,000 97.13 248,640 0.47
TUTOR PERINI CRP 6.88% 05/01/2025 US 150,000 100.13 150,188 0.28
ULTRA RESOURCES 04/12/2024 US 25,000 91.94 22,985 0.04
UNITED RENTAL NA 4.88% 01/15/2028 US 15,000 92.60 13,889 0.03
UNITED RENTAL NA 5.88% 09/15/2026 US 375,000 101.00 378,750 0.72
VALEANT PHARMA 5.50% 03/01/2023 US 199,000 93.00 185,070 0.35
VALEANT PHARMA 5.63% 12/01/2021 CA 110,000 98.38 108,213 0.21
VALEANT PHARMA 6.50% 03/15/2022 CA 100,000 103.50 103,500 0.20
VENATOR FIN SARL 5.75% 07/15/2025 US 255,000 95.50 243,525 0.46
VENTURE CDO LTD 0.00% 10/15/2029 KY 250,000 71.83 179,582 0.34
VERITAS US INC 01/27/2023 US 49,151 91.40 44,924 0.09
VERITAS US/BM 10.50% 02/01/2024 US 200,000 82.00 164,000 0.31
VIDEOTRON LTD 5.13% 04/15/2027 CA 260,000 97.02 252,252 0.48
VIX 08/22/18 BC20 08/23/2018 US 60 1.45 8,700 0.02
WHITING PETRO 5.75% 03/15/2021 US 50,000 102.20 51,099 0.10
WHITING PETRO 6.25% 04/01/2023 US 239,000 102.50 244,975 0.46
WHITING PETRO 6.63% 01/15/2026 US 80,000 103.00 82,400 0.16
WIDEOPENWEST FINANCE LLC 08/18/2023 US 500,000 95.25 476,250 0.90
WILDHORSE RESO 6.88% 02/01/2025 US 133,000 101.88 135,494 0.26
WIND TRE SPA 5.00% 01/20/2026 IT 228,000 79.25 180,690 0.34
COMMUNICATIONS S 7.13% 12/15/2024 US -350,000 90.50 -316,750 -0.60
VIX 08/22/18 WC25 08/23/2018 US -60 0.90 -5,400 -0.01
Data may not total due to rounding. Credit ratings are from Standard & Poor’s and Moody’s Investors Service. If agency rating differ the higher rating will be used. Where no rating has been assigned, it could be for reasons unrelated to the creditworthiness of the issuer.
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.
For the data illustrated for Touchstone Domestic Equity Funds,  Morningstar is the source. For Russell index information,  the Frank Russell Company is the source and owner. For MSCI index information, the MSCI is the source and owner. 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. Calculations for sectors and top holdings exclude cash equivalents. 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
Leupp

John Leupp

Investment Experience since 1989 

Career Summary 
Ares Capital Management II LLC
Credit Suisse First Boston
Libra Investments 

Education 
MA - University of California
BS - Santa Clara 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 10/29/2018.

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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