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Touchstone Credit Opportunities II 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.

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 fixed-income 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 accounting standards that differ from those of U.S. markets and offer less protection to investors. The Fund invests in derivatives and securities such as futures contracts, options and swap agreements including those based on the London Interbank Offered Rate (LIBOR). 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. Certain Touchstone funds-of-funds may invest in the Fund. Purchases, redemptions, and underlying allocations may require the Fund to take actions when it otherwise would not do so. This could adversely affect performance. 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 a sub-advisor to make investment decisions for the Fund’s portfolio; it may be unable to identify and retain a sub-advisor who achieves superior investment returns relative to other similar sub-advisors.

Fund Facts

Fund Facts for Share Class
Symbol
CUSIP
Share Class Inception Date
Total Share Class Net Assets as of 06/30/2019
Total Fund Net Assets as of 06/30/2019 $59,306,038
Asset Class Multi-Asset, 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 05/14/2019

Performance

Daily Returns as of
NAV NAV $ Change
Touchstone Credit Opportunities II Fund -
HISTORICAL DAILY NAV
as of 08/31/2019
1 Month 3 Month YTD 1 Year 3 Year 5 Year 10 Year Since Inception
Touchstone Credit Opportunities II Fund -
Including Sales Charge
Touchstone Credit Opportunities II Fund -
Excluding Sales Charge
ICE BofA Merrill Lynch 3-Month U.S. Treasury Bill Index 0.21% 0.61% 1.63% 2.36% 1.50% 0.95% 0.52% --
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 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 06/30/2019
1 Year 3 Year 5 Year 10 Year Since Inception
Touchstone Credit Opportunities II Fund -
Including Sales Charge
Touchstone Credit Opportunities II Fund -
Excluding Sales Charge
ICE BofA Merrill Lynch 3-Month U.S. Treasury Bill Index 2.31% 1.38% 0.87% 0.49% --
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 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 II Fund for Your Portfolio

Investing primarily in global debt securities, Touchstone Credit Opportunities II 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 06/30/2019
Number of Long Holdings
252
Number of Short Holdings
4
as of 06/30/2019
Composition % of Portfolio
Bonds 75.7
Bank Loans 12.6
Special Situations 4.1
Collateralized Loan Obligations Equity 2.7
Collateralized Loan Obligations Debt 2.5
Cash Equivalents 1.9
Equities 0.5
Derivatives 0.1
Closed end Funds 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 Funds, the fund’s sub-advisor is the source. All holdings data is sourced from BNY Mellon Asset Servicing.
as of 06/30/2019
Credit Quality % of Portfolio
BBB/Baa 3.1
BB/Ba 46.0
B/B 37.6
CCC 7.8
Not Rated 3.7
Cash Equivalents 1.9
Data may not total due to rounding. The ratings agencies that provided the ratings are Standard & 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 Funds, the fund’s sub-advisor is the source. All holdings data is sourced from BNY Mellon Asset Servicing.
as of 08/31/2019
Security Description % of Portfolio
MAUSER PACKAGING SOLUTIONS HOL 5.50% 04/15/2024 1.6
IRON MOUNTAIN INC 5.25% 03/15/2028 1.5
OI EUROPEAN GROUP BV 4.00% 03/15/2023 1.5
SCIENTIFIC GAMES INTERNATIONAL 5.00% 10/15/2025 1.5
ACADIA HEALTHCARE CO INC 5.63% 02/15/2023 1.4
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 Funds, the fund’s sub-advisor is the source. All holdings data is sourced from BNY Mellon Asset Servicing.
as of 06/30/2019
Security Description
Country
Shares Par Value
Current Price ($)
Market Value ($)
% of Portfolio
ACADIA HEALTHCARE CO INC 5.63% 02/15/2023 US 670,000 101.63 680,888 1.19
ACRISURE LLC / ACRISURE FINANC 7.00% 11/15/2025 US 270,000 90.25 243,675 0.43
ACRISURE LLC / ACRISURE FINANC 8.13% 02/15/2024 US 250,000 103.25 258,125 0.45
ALLIANT HOLDINGS INTERMEDIATE 8.25% 08/01/2023 US 535,000 102.47 548,215 0.96
ALLISON TRANSMISSION INC 4.75% 10/01/2027 US 445,000 99.25 441,663 0.77
AMC NETWORKS INC 4.75% 08/01/2025 US 300,000 101.00 303,000 0.53
ASP AMC MERGER SUB INC 8.00% 05/15/2025 US 13,000 59.75 7,768 0.01
B&G FOODS INC 5.25% 04/01/2025 US 433,000 101.00 437,330 0.77
BCP RAPTOR LLC 6.88% 06/24/2024 US 340,000 94.75 322,150 0.56
BERRY GLOBAL ESCROW CORP 4.88% 07/15/2026 US 225,000 102.13 229,781 0.40
BERRY GLOBAL INC 4.50% 02/15/2026 US 625,000 98.50 615,625 1.08
BIOSCRIP INC 8.88% 02/15/2021 US 500,000 101.25 506,250 0.89
BLACKSTONE CQP HOLDCO LP 06/20/2024 US 355,065 100.10 355,420 0.62
BOMBARDIER INC 6.00% 10/15/2022 CA 270,000 100.43 271,158 0.48
BOMBARDIER INC 7.50% 12/01/2024 CA 445,000 102.00 453,900 0.80
BOMBARDIER INC 7.88% 04/15/2027 CA 90,000 100.13 90,113 0.16
BRAZOS DELAWARE II LLC 6.44% 05/21/2025 US 379,043 93.88 355,826 0.62
BROOKFIELD PROPERTY REIT INC / 5.75% 05/15/2026 US 715,000 103.00 736,450 1.29
BUILDERS FIRSTSOURCE INC 5.63% 09/01/2024 US 485,000 103.07 499,875 0.88
BUILDERS FIRSTSOURCE INC 6.75% 06/01/2027 US 355,000 105.50 374,525 0.66
BWAY HOLDING CO 5.50% 04/15/2024 US 775,000 100.05 775,388 1.36
CCO HOLDINGS LLC / CCO HOLDING 5.00% 02/01/2028 US 445,000 102.12 454,434 0.80
CCO HOLDINGS LLC / CCO HOLDING 5.13% 05/01/2027 US 270,000 103.54 279,547 0.49
CENTENNIAL RESOURCE PRODUCTION 5.38% 01/15/2026 US 270,000 95.00 256,500 0.45
CENTENNIAL RESOURCE PRODUCTION 6.88% 04/01/2027 US 270,000 101.00 272,700 0.48
CENTURY COMMUNITIES INC 6.75% 06/01/2027 US 504,000 101.38 510,930 0.90
CITGO PETROLEUM CORP 6.25% 08/15/2022 US 710,000 100.00 710,000 1.24
CLEAN HARBORS INC 4.88% 07/15/2027 US 184,000 101.64 187,008 0.33
COMMSCOPE INC 5.50% 03/01/2024 US 180,000 102.63 184,725 0.32
COMMSCOPE INC 6.00% 03/01/2026 US 180,000 102.50 184,500 0.32
CONSTELLIUM SE 5.75% 05/15/2024 NL 555,000 102.50 568,875 1.00
CONSTELLIUM SE 5.88% 02/15/2026 NL 430,000 102.75 441,825 0.77
CORE & MAIN LP 6.13% 08/15/2025 US 535,000 101.00 540,350 0.95
COVEY PARK ENERGY LLC / COVEY 7.50% 05/15/2025 US 225,000 72.00 162,000 0.28
CROWN AMERICAS LLC / CROWN AME 4.25% 09/30/2026 US 259,000 102.00 264,180 0.46
CROWNROCK LP / CROWNROCK FINAN 5.63% 10/15/2025 US 527,000 100.25 528,318 0.93
CUMULUS MEDIA NEW HLDGS 05/13/2022 US 445,000 99.88 444,444 0.78
CUMULUS MEDIA NEW HOLDINGS INC 6.75% 07/01/2026 US 173,000 99.73 172,533 0.30
DELPHI TECHNOLOGIES PLC 5.00% 10/01/2025 JE 250,000 89.25 223,125 0.39
DREYFUS GOVERNMENT CASH MANAGE 12/01/2099 US 7,962,373 1.00 7,962,373 13.96
ESH HOSPITALITY INC 5.25% 05/01/2025 US 535,000 102.38 547,706 0.96
EVERGREEN SKILLS LUX SARL 7.23% 04/28/2021 LU 200,000 86.04 172,084 0.30
EXTERRAN ENERGY SOLUTIONS LP / 8.13% 05/01/2025 US 550,000 101.63 558,938 0.98
FIRST QUALITY FINANCE CO INC 5.00% 07/01/2025 US 985,000 100.75 992,388 1.74
FORTERRA FINANCE LLC 5.48% 10/25/2023 US 418,923 92.14 385,992 0.68
FREEPORT-MCMORAN INC 3.88% 03/15/2023 US 225,000 100.00 225,000 0.39
FREEPORT-MCMORAN INC 5.40% 11/14/2034 US 225,000 95.75 215,438 0.38
FREEPORT-MCMORAN INC 5.45% 03/15/2043 US 225,000 91.50 205,875 0.36
FRONTIER COMMUNICATIONS 6.24% 06/17/2024 US 130,000 97.92 127,292 0.22
FRONTIER COMMUNICATIONS CORP 11.00% 09/15/2025 US 225,000 62.00 139,500 0.24
FRONTIER COMMUNICATIONS CORP 8.50% 04/01/2026 US 270,000 97.00 261,900 0.46
GEO GROUP INC/THE 5.13% 04/01/2023 US 300,000 89.50 268,500 0.47
GFL ENVIRONMENTAL INC 7.00% 06/01/2026 CA 365,000 102.38 373,669 0.65
GO DADDY OPERATING CO LLC / GD 5.25% 12/01/2027 US 300,000 103.50 310,500 0.54
GOLDEN NUGGET 5.21% 10/04/2023 US 400,000 99.08 396,320 0.69
GREAT WESTERN PETROLEUM LLC / 9.00% 09/30/2021 US 265,000 81.25 215,313 0.38
GULF FINANCE LLC 08/25/2023 US 249,375 81.46 203,136 0.36
H&E EQUIPMENT SERVICES INC 5.63% 09/01/2025 US 895,000 102.85 920,508 1.61
HCA INC 5.63% 09/01/2028 US 225,000 108.25 243,563 0.43
HCA INC 5.88% 02/01/2029 US 225,000 109.63 246,656 0.43
HCA INC 7.69% 06/15/2025 US 225,000 117.50 264,375 0.46
HESS INFRASTRUCTURE PARTNERS L 5.63% 02/15/2026 US 355,000 102.88 365,206 0.64
HILLMAN GROUP INC/THE 6.38% 07/15/2022 US 445,000 88.75 394,938 0.69
IAA INC 5.50% 06/15/2027 US 225,000 104.00 234,000 0.41
INTELSAT JACKSON HLDG 6.18% 11/27/2023 LU 170,000 98.88 168,088 0.29
INTELSAT JACKSON HOLDINGS SA 5.50% 08/01/2023 LU 270,000 91.25 246,375 0.43
INTELSAT LUXEMBOURG SA 8.13% 06/01/2023 LU 225,000 77.25 173,813 0.30
IRB HOLDING CORP 6.75% 02/15/2026 US 715,000 99.50 711,425 1.25
IRON MOUNTAIN INC 5.25% 03/15/2028 US 715,000 100.13 715,894 1.25
JELD-WEN INC 4.88% 12/15/2027 US 300,000 96.75 290,250 0.51
KRATON POLYMERS LLC / KRATON P 7.00% 04/15/2025 US 137,000 101.25 138,713 0.24
L BRANDS INC 6.75% 07/01/2036 US 180,000 86.00 154,800 0.27
L BRANDS INC 6.88% 11/01/2035 US 180,000 88.94 160,085 0.28
L BRANDS INC 7.50% 06/15/2029 US 86,000 99.99 85,991 0.15
LAREDO PETROLEUM INC 6.25% 03/15/2023 US 270,000 93.03 251,181 0.44
LEE ENTERPRISES INC 9.50% 03/15/2022 US 225,000 101.75 228,938 0.40
LEVEL 3 FINANCING INC 5.25% 03/15/2026 US 355,000 103.50 367,425 0.64
LEVEL 3 FINANCING INC 5.38% 01/15/2024 US 355,000 102.25 362,988 0.64
LIVE NATION ENTERTAINMENT INC 4.88% 11/01/2024 US 716,000 102.88 736,585 1.29
LIVE NATION ENTERTAINMENT INC 5.63% 03/15/2026 US 310,000 104.88 325,113 0.57
MA FINANCECO LLC 4.73% 11/19/2021 US 520,000 98.79 513,718 0.90
MOLINA HEALTHCARE INC 4.88% 06/15/2025 US 445,000 101.50 451,675 0.79
NCR CORP 5.00% 07/15/2022 US 500,000 100.85 504,230 0.88
NEW GOLD INC 6.25% 11/15/2022 CA 746,000 93.25 695,645 1.22
NEWELL BRANDS INC 4.20% 04/01/2026 US 300,000 99.38 298,150 0.52
NEXSTAR BROADCASTING INC 5.63% 08/01/2024 US 535,000 103.60 554,239 0.97
NEXSTAR ESCROW INC 5.63% 07/15/2027 US 95,000 102.38 97,256 0.17
NEXTERA ENERGY OPERATING PARTN 4.25% 07/15/2024 US 174,000 100.63 175,091 0.31
NGL ENERGY PARTNERS LP / NGL E 6.13% 03/01/2025 US 400,000 99.00 396,000 0.69
NOVELIS CORP 5.88% 09/30/2026 US 299,000 101.25 302,738 0.53
NUANCE COMMUNICATIONS INC 5.63% 12/15/2026 US 620,000 104.28 646,536 1.13
OI EUROPEAN GROUP BV 4.00% 03/15/2023 NL 715,000 100.50 718,575 1.26
PANTHER BF AGGREGATOR 2 LP / P 6.25% 05/15/2026 MULT 270,000 103.88 280,463 0.49
PANTHER BF AGGREGATOR 2 LP / P 8.50% 05/15/2027 MULT 270,000 103.00 278,100 0.49
PARSLEY ENERGY LLC / PARSLEY F 5.38% 01/15/2025 US 355,000 102.50 363,875 0.64
PARSLEY ENERGY LLC / PARSLEY F 6.25% 06/01/2024 US 355,000 104.00 369,200 0.65
PENSKE AUTOMOTIVE GROUP INC 5.50% 05/15/2026 US 355,000 104.25 370,088 0.65
PERFORCE SOFTWARE INC 06/12/2026 US 113,694 99.75 113,410 0.20
PETCO ANIMAL SUPPLIES INC 5.83% 01/26/2023 US 325,000 77.31 251,245 0.44
PETSMART INC 4.25% 03/11/2022 US 200,000 97.22 194,438 0.34
QWEST CORP 6.88% 09/15/2033 US 535,000 99.89 534,429 0.94
RBS GLOBAL INC / REXNORD LLC 4.88% 12/15/2025 US 535,000 101.25 541,688 0.95
REALOGY GROUP LLC / REALOGY CO 4.88% 06/01/2023 US 544,000 90.00 489,600 0.86
REGIONALCARE HOSPITAL PARTNERS 8.25% 05/01/2023 US 270,000 106.44 287,381 0.50
REGIONALCARE HOSPITAL PRTNRS 6.93% 11/16/2025 US 254,361 99.34 252,680 0.44
ROWAN COS INC 7.38% 06/15/2025 US 225,000 77.50 174,375 0.31
SABRE GLBL INC 5.25% 11/15/2023 US 715,000 103.00 736,450 1.29
SCIENTIFIC GAMES INTERNATIONAL 5.00% 10/15/2025 US 694,000 101.00 700,940 1.23
SENSATA TECHNOLOGIES BV 5.00% 10/01/2025 NL 715,000 104.25 745,388 1.31
SEQUA MEZZANINE HOLDINGS LL 7.56% 11/28/2021 US 335,000 97.67 327,184 0.57
SIMMONS FOODS INC 5.75% 11/01/2024 US 535,000 91.00 486,850 0.85
SINCLAIR TELEVISION GROUP INC 5.13% 02/15/2027 US 355,000 98.00 347,900 0.61
SINCLAIR TELEVISION GROUP INC 5.63% 08/01/2024 US 355,000 102.25 362,988 0.64
SIRIUS XM RADIO INC 5.38% 07/15/2026 US 445,000 103.63 461,131 0.81
SIRIUS XM RADIO INC 5.50% 07/01/2029 US 65,000 102.52 66,638 0.12
SIX FLAGS ENTERTAINMENT CORP 4.88% 07/31/2024 US 445,000 101.56 451,953 0.79
SIX FLAGS ENTERTAINMENT CORP 5.50% 04/15/2027 US 445,000 104.00 462,800 0.81
SOTERA HEALTH HOLDINGS LLC 6.50% 05/15/2023 US 355,000 101.25 359,438 0.63
SPRINT COMMUNICATIONS 3.75% 02/02/2024 US 520,000 98.97 514,639 0.90
SPRINT CORP 7.63% 02/15/2025 US 260,000 106.50 276,900 0.49
SPRINT CORP 7.63% 03/01/2026 US 520,000 106.60 554,320 0.97
SRC ENERGY INC 6.25% 12/01/2025 US 225,000 91.00 204,750 0.36
SUMMIT MATERIALS LLC / SUMMIT 5.13% 06/01/2025 US 483,000 100.25 484,208 0.85
SUMMIT MIDSTREAM HOLDINGS LLC 5.50% 08/15/2022 US 310,000 96.00 297,600 0.52
SUMMIT MIDSTREAM HOLDINGS LLC 5.75% 04/15/2025 US 310,000 87.50 271,250 0.48
TARGA RESOURCES PARTNERS LP / 5.88% 04/15/2026 US 535,000 106.00 567,100 0.99
TERRAFORM POWER OPERATING LLC 4.25% 01/31/2023 US 355,000 99.88 354,556 0.62
TERRAFORM POWER OPERATING LLC 5.00% 01/31/2028 US 355,000 100.38 356,331 0.62
T-MOBILE USA INC 4.75% 02/01/2028 US 535,000 102.89 550,435 0.96
TOWNSQUARE MEDIA INC 6.50% 04/01/2023 US 550,000 98.50 541,750 0.95
TRANSDIGM INC 6.25% 03/15/2026 US 765,000 105.25 805,163 1.41
TRANSOCEAN SENTRY LTD 5.38% 05/15/2023 KY 355,000 100.13 355,444 0.62
TRONOX FINANCE PLC 5.75% 10/01/2025 GB 185,000 97.00 179,450 0.31
TUTOR PERINI CORP 6.88% 05/01/2025 US 550,000 95.75 526,625 0.92
ULTRA RESOURCES INC 6.49% 04/12/2024 US 340,000 75.83 257,832 0.45
UNITED RENTALS NORTH AMERICA I 5.88% 09/15/2026 US 535,000 106.50 569,775 1.00
VINE OIL & GAS LP / VINE OIL & 9.75% 04/15/2023 US 225,000 64.75 145,688 0.26
VIRGIN MEDIA SECURED FINANCE P 5.50% 08/15/2026 GB 715,000 103.63 740,919 1.30
VISTRA OPERATIONS CO LLC 5.00% 07/31/2027 US 546,000 103.63 565,793 0.99
WEWORK COS INC 7.88% 05/01/2025 US 310,000 98.66 305,846 0.54
WOODFORD EXPRESS LLC 7.48% 01/27/2025 US 254,356 98.08 249,480 0.44
XPO LOGISTICS INC 6.75% 08/15/2024 US 445,000 106.63 474,481 0.83
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 the data illustrated for Touchstone Fixed Income Funds,  International/Global Equity Funds and Multi-Asset 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
Jason Duko

Jason Duko

Investment Experience since 2000

Career Summary
Ares Capital Management II LLC
Pacific Investment Management Co. LLC
Lord Abbett & Co. LLC
Nomura Corporate Research and Asset Management Inc.
ING Pilgrim Research

Education 
BS - Arizona State University
Kapil Singh

Kapil Singh, CFA

Investment Experience since 1993

Career Summary 
Ares Capital Management II LLC
DoubleLine Capital LP
Post Advisory Group LLC
Four Corners Capital Management LLC
Bradford & Marzec LLC

Education 
MBA - Northwestern University
BS - University of Illinois
ares-sub-advisor-mathewson

Chris Mathewson

Investment Experience since 2004

Career Summary 
Ares Capital Management II LLC
Lehman Brothers

Education 
BA - Dartmouth College

Fees

Expense Fees for Share Class
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 1.08% for Class A Shares, 1.83% for Class C Shares, 0.83% for Class Y Shares and 0.73% for Class INST Shares. These expense limitations will remain in effect until at least 05/30/2020.

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 II Fund for Your Portfolio

Investing primarily in global debt securities, Touchstone Credit Opportunities II 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 $137 billion of assets under management as of March 31, 2019, 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 on the resources section 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. All investing involves risk.

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

Not FDIC Insured | No Bank Guarantee | May Lose Value

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