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Touchstone Strategic Income Opportunities Fund

Daily NAV
$
Overall Morningstar Rating™
Multisector Bond

Overview

Actively Managed and Sub-Advised by Fort Washington Investment Advisors, Inc.

Objective

The Fund seeks a high level of current income with a focus on capital preservation by investing primarily in public fixed income securities.

Investment Style

  • Primarily invests in income producing securities including corporate debt securities, mortgage-related securities, asset-backed securities, government securities (both U.S. government securities and foreign sovereign debt), and preferred stocks
  • Expanded opportunity set provides the flexibility to react to market dislocations
  • Broadly diversified by sector, resulting in multiple sources of return potential and low correlation to traditional asset classes
  • Duration management is used as a risk mitigation tool; seeks to avoid taking large duration positions due to the difficulty in predicting interest rates
  • Active management and security selection are focused on building a high conviction portfolio
A WORD ABOUT RISK

The Fund invests in fixed-income securities which can experience reduced liquidity during certain market events, 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 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 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 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 U.S. government agency securities which are neither issued nor guaranteed by the U.S. Treasury and are not guaranteed against price movements due to changing interest rates. 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. Events in the U.S. and global financial markets, including actions taken to stimulate or stabilize economic growth may at times result in unusually high market volatility, which could negatively impact Fund performance and cause it to experience illiquidity, shareholder redemptions, or other potentially adverse effects. Banks and financial services companies could suffer losses if interest rates rise or economic conditions deteriorate. 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. If interest rates rise, the fixed dividend on preferred stocks may be less attractive, causing their price to decline. 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 may offer less protection to investors. The Fund invests in emerging markets securities which are more likely to experience turmoil or rapid changes in market or economic conditions than developed countries. The Fund invests in sovereign debt securities which are issued by foreign governments whose respective economies could have an important effect on their ability or willingness to service their debt which could affect the value of the securities. The Fund invests in mortgage dollar rolls which involve increased risk and volatility, as the securities the Fund is required to repurchase may be worth less than the securities that the Fund originally held. The Fund invests in derivatives such as futures contracts. 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’s investments in other investment companies will be subject to substantially the same risks as those associated with the direct ownership of the securities comprising the portfolios of such investment companies, and the value of the Fund's investment will fluctuate in response to the performance of such portfolios. In addition, if the Fund acquires shares of investment companies, shareholders of the Fund will bear their proportionate share of the fees and expenses of the Fund and, indirectly, the fees and expenses of the investment companies. The Fund may experience higher portfolio turnover which may lead to increased fund expenses, lower investment returns and higher short-term capital gains taxable to shareholders. The Fund invests in repurchase agreements which are considered loans by the Fund and may suffer a loss of principal and interest in the event of counterparty defaults. Current and future portfolio holdings are subject to change.

Fund Facts

Fund Facts for Share Class
Symbol
CUSIP
Inception Date
Total Share Class Net Assets as of 03/31/2022
Total Fund Net Assets as of 03/31/2022 $326,871,967
Asset Class Income, Multi-Asset
Morningstar Category Multisector Bond
Benchmark Bloomberg U.S. Aggregate Bond Index
Distribution Frequency Monthly
Fiscal Year End
Prospectus Date 07/30/2021

Performance

HISTORICAL DAILY NAV
Historical Daily NAV on
NAV POP
Touchstone Strategic Income Opportunities 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 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 Fixed Income Funds is 3.25% excluding Touchstone Ultra Short Duration Fixed Income Fund which is 2.00%.
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.
Effective July 19, 2021 the AIG Strategic Bond Fund and the AIG Flexible Credit Fund merged into the newly created Touchstone Strategic Income Opportunities Fund. The Touchstone Strategic Income Opportunities Fund adopted the performance and accounting history of the AIG Strategic Bond Fund; however, the Touchstone Strategic Income Opportunities Fund has a new, separate and distinct investment strategy and sub-advisor. Prior to July 19, 2021 the Fund’s performance history is that of the AIG Strategic Bond Fund.

AIG Funds Class W Shares became Touchstone Class Y Shares on 7/19/2021.
Effective July 19, 2021 the AIG Strategic Bond Fund and the AIG Flexible Credit Fund merged into the newly created Touchstone Strategic Income Opportunities Fund. The Touchstone Strategic Income Opportunities Fund adopted the performance and accounting history of the AIG Strategic Bond Fund; however, the Touchstone Strategic Income Opportunities Fund has a new, separate and distinct investment strategy and sub-advisor. Prior to July 19, 2021 the Fund’s performance history is that of the AIG Strategic Bond Fund.

AIG Funds Class W Shares became Touchstone Class Y Shares on 7/19/2021.
Effective July 19, 2021 the AIG Strategic Bond Fund and the AIG Flexible Credit Fund merged into the newly created Touchstone Strategic Income Opportunities Fund. The Touchstone Strategic Income Opportunities Fund adopted the performance and accounting history of the AIG Strategic Bond Fund; however, the Touchstone Strategic Income Opportunities Fund has a new, separate and distinct investment strategy and sub-advisor. Prior to July 19, 2021 the Fund’s performance history is that of the AIG Strategic Bond Fund.

AIG Funds Class W Shares became Touchstone Class Y Shares on 7/19/2021.
Effective July 19, 2021 the AIG Strategic Bond Fund and the AIG Flexible Credit Fund merged into the newly created Touchstone Strategic Income Opportunities Fund. The Touchstone Strategic Income Opportunities Fund adopted the performance and accounting history of the AIG Strategic Bond Fund; however, the Touchstone Strategic Income Opportunities Fund has a new, separate and distinct investment strategy and sub-advisor. Prior to July 19, 2021 the Fund’s performance history is that of the AIG Strategic Bond Fund.

AIG Funds Class W Shares became Touchstone Class Y Shares on 7/19/2021.
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 Funds 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.
Effective July 19, 2021 the AIG Strategic Bond Fund and the AIG Flexible Credit Fund merged into the newly created Touchstone Strategic Income Opportunities Fund. The Touchstone Strategic Income Opportunities Fund adopted the performance and accounting history of the AIG Strategic Bond Fund; however, the Touchstone Strategic Income Opportunities Fund has a new, separate and distinct investment strategy and sub-advisor. Prior to July 19, 2021 the Fund’s performance history is that of the AIG Strategic Bond Fund.

AIG Funds Class W Shares became Touchstone Class Y Shares on 7/19/2021.
Effective July 19, 2021 the AIG Strategic Bond Fund and the AIG Flexible Credit Fund merged into the newly created Touchstone Strategic Income Opportunities Fund. The Touchstone Strategic Income Opportunities Fund adopted the performance and accounting history of the AIG Strategic Bond Fund; however, the Touchstone Strategic Income Opportunities Fund has a new, separate and distinct investment strategy and sub-advisor. Prior to July 19, 2021 the Fund’s performance history is that of the AIG Strategic Bond Fund.

AIG Funds Class W Shares became Touchstone Class Y Shares on 7/19/2021.
Effective July 19, 2021 the AIG Strategic Bond Fund and the AIG Flexible Credit Fund merged into the newly created Touchstone Strategic Income Opportunities Fund. The Touchstone Strategic Income Opportunities Fund adopted the performance and accounting history of the AIG Strategic Bond Fund; however, the Touchstone Strategic Income Opportunities Fund has a new, separate and distinct investment strategy and sub-advisor. Prior to July 19, 2021 the Fund’s performance history is that of the AIG Strategic Bond Fund.

AIG Funds Class W Shares became Touchstone Class Y Shares on 7/19/2021.
Effective July 19, 2021 the AIG Strategic Bond Fund and the AIG Flexible Credit Fund merged into the newly created Touchstone Strategic Income Opportunities Fund. The Touchstone Strategic Income Opportunities Fund adopted the performance and accounting history of the AIG Strategic Bond Fund; however, the Touchstone Strategic Income Opportunities Fund has a new, separate and distinct investment strategy and sub-advisor. Prior to July 19, 2021 the Fund’s performance history is that of the AIG Strategic Bond Fund.

AIG Funds Class W Shares became Touchstone Class Y Shares on 7/19/2021.

Morningstar Rating™

Morningstar Rating™

Portfolio

as of 03/31/2022
Number of Holdings
182
Weighted Average Effective Maturity
9.4 Years
Weighted Average Effective Duration
4.6 Years
as of 03/31/2022
Composition % of Portfolio
Non-Investment Grade Corporate Credit 24.7
Investment Grade Corporate Credit 23.3
Emerging Markets Debt 10.2
U.S. Treasury 9.3
Securitized Debt Collateralized Loan Obligation 6.5
Securitized Debt Asset Backed Securities 6.1
Public Equities 5.3
Securitized Debt Collateralized Debt Obligation 5.1
Securitized Debt CMBS 4.6
Miscellaneous 2.1
Securitized Debt Non-Agency MBS/CMO 1.5
Cash Equivalents 1.3
U.S. Treasury TIPS 0.0
Securitized Debt U.S. Agency MBS/CMO 0.0
as of 03/31/2022
Credit Quality % of Portfolio
AAA/Aaa 9.8
A/A 12.2
BBB/Baa 47.4
BB/Ba 15.1
B/B 11.8
CCC or Lower 1.7
Not Rated 0.6
Cash Equivalents 1.3
as of 04/30/2022
Security Description % of Portfolio
UNITED STATES TREASURY NOTE/BO 0.75% 05/31/2026 4.8
UNITED STATES TREASURY NOTE/BO 2.38% 02/15/2042 2.3
STWD 2021-FL2 LTD 3.74% 04/18/2038 2.1
TRTX 2019-FL3 ISSUER LTD 3.01% 10/15/2034 1.9
AB ISSUER LLC 3.73% 07/30/2051 1.8
WHITEBOX CLO I LTD 3.23% 07/24/2032 1.6
MILL CITY MORTGAGE LOAN TRUST 3.58% 07/01/2059 1.6
BIRCH GROVE CLO 2 LTD 3.29% 10/19/2034 1.6
NEW MOUNTAIN CLO 3 LTD 3.16% 10/20/2034 1.6
NEIGHBORLY ISSUER LLC 3.58% 04/30/2051 1.5
as of 03/31/2022
Security Description
Country
Coupon Rate (%)
Maturity Date
Shares Par Value
Current Price ($)
Market Value ($)
% of Portfolio
{name} {country} {couponRate} {maturityDate} {sharesParValue} {currentPriceBase} {marketBaseValue} {percentOfPortfolio}

Management

Actively Managed and Sub-Advised by Fort Washington Investment Advisors, Inc.
Daniel Carter

Daniel J. Carter, CFA 

Investment Experience since 1996

Career Summary
Fort Washington Investment Advisors, Inc.
Ohio Casualty Corporation
Provident Bank

Education
BS – Miami University

sub-advisor-fwia-kummer

Austin R. Kummer, CFA

Investment Experience since 2013

Career Summary 
Fort Washington Investment Advisors, Inc.

Education 
MBA – Xavier University
BBA – Ohio University
Brendan White

Brendan M. White, CFA

Investment Experience since 1987

Career Summary 
Fort Washington Investment Advisors, Inc.
Ohio Casualty Corporation

Education 
MBA - Xavier University
BS - The Ohio State University

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 1.00% for Class A Shares, 1.71% for Class C Shares, 0.75% for Class Y Shares and 0.65% for Class INST Shares. These expense limitations will remain in effect until at least 07/29/2023.

Distributions

Resources

Consider Touchstone Strategic Income Opportunities Fund for Your Portfolio

Touchstone Strategic Income Opportunities Fund primarily invests in income producing securities including corporate debt securities, mortgage-related securities, asset-backed securities, government securities (both U.S. government securities and foreign sovereign debt), and preferred stocks.
Contact Us

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 professional 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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