Notes
to Financial Statements
June
30, 2013
1. Organization
The Touchstone Tax-Free Trust (the “Trust”)
is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment
company. The Trust was established as a Massachusetts business trust pursuant to a Declaration of Trust dated April 13, 1981. The
Trust consists of the following three funds (individually, a “Fund”, and collectively, the “Funds”):
Touchstone Ohio Tax-Free Bond Fund (“Ohio Tax-Free Bond
Fund”)
Touchstone Ohio Tax-Free Money Market Fund (“Ohio Tax-Free
Money Market Fund”)
Touchstone Tax-Free Money Market Fund (“Tax-Free Money
Market Fund”)
The Tax-Free Money Market Fund is an
open-end, diversified, management investment company. The Ohio Tax-Free Bond Fund and the Ohio Tax-Free Money Market Fund are
each an open-end, non-diversified, management investment company.
The Declaration of Trust permits the
Trust to issue an unlimited number of shares of beneficial interest of each Fund. The Funds are registered to offer the
following classes of shares: Class A shares, Class C shares, Class S shares and Institutional Class shares. Currently, each
Fund offers Class A shares while Class C, Class S and Institutional Class shares are offered only by Ohio Tax-Free Bond Fund,
Tax-Free Money Market Fund and Ohio Tax-Free Money Market Fund, respectively. The assets of each Fund are segregated, and a
shareholder’s interest is limited to the Fund in which shares are held. The Funds’ prospectus provides a
description of each Fund’s investment goals, policies, and strategies along with information on the classes of shares
currently being offered.
2. Significant Accounting Policies
The following is a summary of the Funds’ significant accounting
policies:
Security valuation and fair value measurements—
All investments in securities are recorded at their estimated
fair value. The Funds define the term “market value”,
as used throughout this report, as the estimated fair value. The Funds use various methods to measure fair value of their portfolio
securities on a recurring basis. Generally accepted accounting principles in the United States (“U.S. GAAP”) establish
a hierarchy that prioritizes inputs to valuation methods. These inputs are summarized in the three broad levels listed below:
|
•
|
Level 1 –
|
quoted prices in active markets for identical securities
|
|
•
|
Level 2 –
|
other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
|
|
•
|
Level 3 –
|
significant unobservable inputs (including a Fund’s own assumptions in determining the fair
value of investments)
|
The inputs or methodology used for valuing
securities are not necessarily an indication of the risk associated with investing in those securities. For example, money market
instruments are valued using amortized cost, in accordance with rules under the 1940 Act. Generally, amortized cost approximates
the current fair value of a security, but since the value is not obtained from a quoted price in an active market, such securities
are reflected as Level 2.
The aggregate value by input level, as
of June 30, 2013, for each Fund’s investments, as well as a reconciliation of assets for which significant unobservable inputs
(Level 3) were used in determining value, if applicable, is included in each Fund’s Portfolio of Investments or Tabular Presentation,
which also includes a breakdown of the Fund’s investments by portfolio allocation or credit quality. The Funds did not hold
any Level 3 categorized securities during the year ended June 30, 2013.
Notes
to Financial Statements (Continued)
All transfers in and out of the levels
are recognized at the value at the end of the period. During the year ended June 30, 2013, there were no transfers between Levels
1, 2 and 3 for all Funds.
Debt securities for which market quotations
are readily available are valued at their most recent bid prices as obtained from one or more of the major market makers for such
securities by an independent pricing service and are categorized in Level 2. Money market instruments and other debt securities
with a remaining maturity of less than 60 days are valued at amortized cost, which approximates market value and are categorized
in Level 2. While this method provides consistency in valuation (and may only be used if it approximates market value), it may
result in periods during which value, as determined by amortized cost, is higher or lower than the price that would be received
if the Fund sold the investment. Securities for which market quotations or the NASDAQ Official Closing Price (“NOCP”)
are not readily available are fair valued as determined by or under the direction of the Board of Trustees and are categorized
in Level 3.
Level 2 Valuation—
Securities
mainly traded on a non-U.S. exchange are generally valued according to the
preceding closing values on that exchange. However,
if an event that may change the value of a security occurs after the time that the closing value on the non-U.S. exchange was determined,
but before the close of regular trading on the New York Stock Exchange (“NYSE”), the security may be priced based on
fair value. This may cause the value of the security on the books of the Funds to be significantly different from the closing value
on the non-U.S. exchange and may affect the calculation of the net asset value (“NAV”) of the Funds. Any debt securities
held by the Funds for which market quotations are not readily available are generally priced at their most recent bid prices as
obtained from one or more of the major market makers for such securities.
Level 3 Valuation—
Securities
held by the Funds that do not have readily available market quotations, or
securities for which the available market
quotations are not reliable, are priced at their fair values using procedures approved by the Funds’ Board of Trustees.
The Funds may use fair value pricing under the following circumstances, among others:
|
|
•
|
If the value of a security has been materially affected by events
occurring before the Funds’ pricing time but after the close of the primary markets on which the security is traded.
|
|
|
•
|
If the exchange on which a portfolio security is principally traded closes early or if trading
in a particular portfolio security was halted during the day and did not resume prior to the Funds’ NAV calculation.
|
|
|
•
|
If a security is so thinly traded that reliable market quotations are unavailable due to infrequent
trading.
|
|
|
•
|
If the validity of market quotations is not reliable.
|
New accounting
pronouncements—
In December 2011, the Financial Accounting Standards Board (“FASB”)
issued
Accounting Standards Update (“ASU”) No. 2011-11,“Disclosures about Offsetting Assets and
Liabilities”. ASU No. 2011-11 requires disclosures to make financial statements that are prepared under U.S. GAAP more
comparable to those prepared under the International Financial Reporting Standards (“IFRS”). The new disclosure
requirements mandate that entities disclose both gross and net information about instruments and transactions eligible for
offset in the Statement of Assets and Liabilities as well as instruments and transactions subject to an agreement similar to
a master netting arrangement. In addition, ASU No. 2011-11 requires disclosure of collateral received and posted in
connection with master netting agreements or similar arrangements. In January 2013, the FASB issued ASU No. 2013-01,
“Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities”. This update limits the scope of
the ASU No. 2011-11 to derivatives, repurchase agreements, reverse repurchase agreements, securities borrowing, and
securities lending transactions that are either offset in the Statement of Assets and Liabilities or are subject
to an enforceable master netting arrangement or similar agreement. New disclosures are required for annual reporting periods
beginning on or after January 1, 2013, and interim periods within those annual periods. Management is currently evaluating
the impact these updates may have on the Funds’ financial statements and disclosures.
Notes
to Financial Statements (Continued)
When-Issued or delayed delivery transactions—
Each Fund may purchase or sell securities on a when-issued
or delayed delivery basis. These transactions involve a commitment
by the Fund to purchase or sell securities for a predetermined price or yield, with payment and delivery taking place beyond the
customary settlement period. When delayed delivery purchases are outstanding, the Fund will set aside liquid assets in an amount
sufficient to meet the purchase price. When purchasing a security on a delayed delivery basis, the Fund assumes the rights and
risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account
when determining NAV. The Fund may dispose of or renegotiate a delayed delivery transaction after it is entered into, and may sell
when-issued securities before they are delivered, which may result in a capital gain or loss. When the Fund has sold a security
on a delayed delivery basis, the Fund does not participate in future gains and losses with respect to the security.
Share valuation—
The NAV per
share of each class of shares of each Fund is calculated daily by dividing the
total value of a Fund’s assets attributable
to that class, less liabilities attributable to that class, by the number of outstanding shares of that class.
The maximum offering price per share of
each class of shares of the Ohio Tax-Free Money Market Fund and the Tax-Free Money Market Fund is equal to the NAV per share. The
maximum offering price per share of Class A shares of the Ohio Tax-Free Bond Fund is equal to the NAV per share plus a sales load
equal to 4.99% of the NAV (or 4.75% of the offering price). There is no sales load on purchases of $1 million or more of Class
A shares of the Ohio Tax-Free Bond Fund. The maximum offering price per share of Class C shares of the Ohio Tax-Free Bond Fund
is equal to the NAV per share.
The redemption price per share of each
class of shares of the Funds is equal to the NAV per share. However, the Ohio Tax-Free Bond Fund Class A shares redemptions that
were part of a no load $1 million subscription may be subject to a contingent deferred sales charge (“CDSC”) of up
to 1% if redeemed within a one-year period from the date of purchase. Additionally, purchases of Class C shares of the Ohio Tax-Free
Bond Fund are subject to a CDSC load of 1.00% of the original purchase price if redeemed within a one-year period from the date
of purchase.
Investment income—
Interest
income from securities is recorded on the basis of interest accrued, premium
amortized and discount accreted. Market discounts,
original issue discount (“OID”) and market premiums on debt securities are accreted/amortized to interest income over
the life of the security with a corresponding adjustment in the cost basis of that security.
Distributions to shareholders—
Each Fund intends to distribute to its shareholders substantially all of its income
and capital gains. Each Fund declares
distributions from net investment income on a daily basis and distributes as a dividend to shareholders on a monthly basis. Each
Fund makes distributions of capital gains, if any, at least annually, net of applicable capital loss carryforwards. Income distributions
and capital gain distributions are determined in accordance with income tax regulations.
Allocations—
Investment income
earned, realized capital gains and losses, and unrealized appreciation and
depreciation for a Fund are allocated daily to
each class of shares based upon its proportionate share of total net assets of the Fund. Class-specific expenses are charged directly
to the class incurring the expense. Common expenses, which are not attributable to a specific class, are allocated daily to each
class of shares based upon their proportionate share of total net assets of the Fund. Expenses not directly billed to a Fund are
allocated proportionally among all the Funds in the Trust, and/or in Touchstone Investment Trust, Touchstone Strategic Trust, Touchstone
Variable Series Trust, Touchstone Institutional Funds Trust and Touchstone Funds Group Trust (“Touchstone Funds Complex”),
daily in relation to net assets of each Fund or another reasonable measure.
Notes
to Financial Statements (Continued)
Security transactions—
Security
transactions are reflected for financial reporting purposes as of the trade date.
Realized gains and losses on sales of
portfolio securities are calculated using the identified cost basis.
Estimates—
The preparation
of financial statements in conformity with U.S. GAAP requires management to
make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements
and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
3. Investment Transactions
Investment transactions (excluding short-term
investments and U.S. Government securities) were as follows for the year ended June 30, 2013:
|
|
|
Ohio Tax-Free
|
|
|
|
|
Bond Fund
|
|
|
Purchases of investment securities
|
|
$
|
14,137,236
|
|
|
Proceeds from sales and maturities
|
|
$
|
16,256,229
|
|
There were no purchases or proceeds from
sales and maturities of U.S. Government securities, by the Ohio Tax-Free Bond Fund for the year ended June 30, 2013.
4. Transactions with Affiliates and Other Related Parties
Certain officers of the Trust are also
officers of Touchstone Advisors, Inc. (the “Advisor”), Touchstone Securities, Inc. (the “Underwriter”)
or BNY Mellon Investment Servicing (U.S.) Inc. (“BNY Mellon”), the Sub-Administrator and Transfer Agent to the Funds.
Such officers receive no compensation from the Trust. The Advisor and the Underwriter are each wholly-owned, indirect subsidiaries
of The Western & Southern Financial Group, Inc. (“Western & Southern”).
MANAGEMENT & EXPENSE LIMITATIONS AGREEMENTS
The Advisor provides general investment
supervisory services for the Funds, under terms of an advisory agreement (the “Advisory Agreement”). Under the Advisory
Agreement, each Fund pays the Advisor a fee, which is computed and accrued daily and paid monthly, at an annual rate based on average
daily net assets of each Fund as shown in the table below.
0.50% of the first $100 million
0.45% of the next $100 million
0.40% of the next $100 million
0.375% of such assets in excess of $300 million
The Advisor has entered into investment
sub-advisory agreements with Fort Washington Investment Advisors, Inc. (the “Sub-Advisor”). The Sub-Advisor is a wholly-owned,
indirect subsidiary of Western & Southern. The Advisor, not the Funds, paid sub-advisory fees to the Sub-Advisor.
The Advisor entered into an expense limitation
agreement (the “Expense Limitation Agreement”) to contractually limit operating expenses of the Funds, excluding: dividend
expenses on short sales; interest; taxes; brokerage commissions; other expenditures which are capitalized in accordance with GAAP;
the cost of “Acquired Fund Fees and Expenses”, if any; and other extraordinary expenses not incurred in the ordinary
course of business. The maximum operating expense limit in any year with respect to the Funds is based on a percentage of the average
Notes
to Financial Statements (Continued)
daily net assets of the Funds. The Advisor
has agreed to separately waive class-level expenses, advisory and administration fees and to reimburse expenses in order to maintain
the following expense limitations for the Funds:
|
|
|
|
|
|
|
|
|
|
|
|
Institutional
|
|
|
|
|
Class A
|
|
|
Class C
|
|
|
Class S
|
|
|
Class
|
|
|
Ohio Tax-Free Bond Fund
|
|
|
0.85
|
%
|
|
|
1.60
|
%
|
|
|
—
|
|
|
|
—
|
|
|
Ohio Tax-Free Money Market Fund
|
|
|
0.75
|
%
|
|
|
—
|
|
|
|
—
|
|
|
|
0.50
|
%
|
|
Tax-Free Money Market Fund
|
|
|
0.89
|
%
|
|
|
—
|
|
|
|
0.90
|
%
|
|
|
—
|
|
These expense limitations will remain in effect for all Funds
until at least October 29, 2013.
For the OhioTax-Free Money Market Fund
andTax-Free Money Market Fund, in addition to the above expense caps, the Advisor and/or Distributor have voluntarily agreed to
temporarily waive all or a portion of their fees, to the extent necessary to maintain each Fund’s yield. There is no guarantee
that the Advisor and/or Distributor will continue to waive such fees in the future.
During the year ended June 30, 2013, the
Advisor or affilliates waived investment advisory fees and administration fees or reimbursed expenses, including 12b-1 fees, of
the Funds as follows:
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
Investment
|
|
|
|
|
|
Operating
|
|
|
|
|
Advisory
|
|
|
Administration
|
|
|
Expenses
|
|
|
Fund
|
|
Fees Waived
|
|
|
Fees Waived
|
|
|
Reimbursed
|
|
|
Ohio Tax-Free Bond Fund
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
154,816
|
|
|
Ohio Tax-Free Money Market Fund
|
|
|
35,453
|
|
|
|
331,349
|
|
|
|
751,571
|
|
|
Tax-Free Money Market Fund
|
|
|
—
|
|
|
|
—
|
|
|
|
382,582
|
|
Effective October 29, 2012, under the terms
of the Expense Limitation Agreement the Advisor is entitled to recover, subject to approval by the Funds’ Board of Trustees,
such amounts waived or reimbursed for a period of up to three years from the year in which the Advisor reduced its compensation
or assumed expenses for the Funds. No recoupment will occur unless a Fund’s operating expenses are below the expense limitation
amount.
As of June 30, 2013, the Advisor may seek recoupment of previously
waived and reimbursed fees as follows:
|
|
|
Expiration
|
|
|
|
|
June 30,
|
|
|
Fund
|
|
2016
|
|
|
Ohio Tax-Free Money Market Fund
|
|
$
|
285,217
|
|
|
Tax-Free Money Market Fund
|
|
|
93,066
|
|
The Advisor did not recoup any amounts
it previously waived or reimbursed during the year ended June 30, 2013.
ADMINISTRATION AGREEMENT
The Advisor entered into an
Administration Agreement with the Trust, whereby the Advisor is responsible for: supplying executive and regulatory
compliance services; supervising the preparation of tax returns; coordinating the preparation of reports to shareholders and
reports to, and filings with, the Securities and Exchange Commission (the “SEC”) and state securities
authorities, as well as materials for meetings of the Board of Trustees; calculating the daily NAV per share; and maintaining
the financial books and records of each Fund. For its services, the Advisor receives an annual fee of 0.20% on the first $6
billion of the aggregate average daily net assets of the Touchstone Fund Complex (excluding Touchstone Institutional Money
Market Fund,Touchstone Institutional Funds Trust, and Touchstone Variable Series Trust); 0.16% of the next $4 billion of
aggregate average daily net assets; and 0.12% of the aggregate average daily net assets over $10 billion. The fee is
allocated among the Funds of the
Notes to Financial Statements (Continued)
Touchstone Fund Complex (excludingTouchstone
Institutional Money Market Fund,Touchstone Institutional Funds Trust, and Touchstone Variable Series Trust) on the basis of relative
daily net assets.
The Advisor has engaged BNY Mellon as the
Sub-Administrator to theTrust. BNY Mellon provides administrative and accounting services to the Trust and is compensated directly
by the Advisor, not the Trust.
TRANSFER AGENT AGREEMENT
Under the terms of the Transfer Agent Agreement
between the Trust and BNY Mellon, BNY Mellon maintains the records of each shareholder’s account, answers shareholders’
inquiries concerning their accounts, processes purchases and redemptions of each Fund’s shares, acts as dividend and distribution
disbursing agent, and performs other shareholder service functions. For these services, BNY Mellon receives a monthly fee per shareholder
account from each Fund. In addition, each Fund pays BNY Mellon out-of-pocket expenses incurred by BNY Mellon, including, but not
limited to, postage and supplies.
PLANS OF DISTRIBUTION AND SHAREHOLDER SERVICING FEE ARRANGEMENTS
The Trust has adopted distribution plans
pursuant to Rule 12b-1 under the 1940 Act for each class of shares it offers that are subject to 12b-1 distribution fees. The plans
allow each Fund to pay distribution and other fees for the sale and distribution of its shares and for services provided to shareholders.
Under the Class A plan, each Fund offering Class A shares pays an annual fee of up to 0.25% of average daily net assets that are
attributable to Class A shares. Under the Class C plan, each Fund offering Class C shares pays an annual fee of up to 1.00% of
average daily net assets that are attributable to Class C shares (of which up to 0.75% is a distribution fee and up to 0.25% is
a shareholder servicing fee).
Under the Class S plan, each Fund offering
Class S shares pays an annual fee of up to 1.00% of average daily net assets that are attributable to Class S shares (of which
up to 0.75% is distribution fee and up to 0.25% is a shareholder servicing fee). The Fund currently limits the amount to 0.35%
of average daily net assets attributable to such shares.
UNDERWRITING AGREEMENT
The Underwriter is the Funds’ principal
underwriter and, as such, acts as exclusive agent for distribution of the Funds’ shares. Under the terms of the Underwriting
Agreement between the Trust and the Underwriter, the Underwriter earned $6,460 from underwriting and broker commissions on the
sale of Class A shares of the OhioTax-Free Bond Fund during the year ended June 30, 2013. The Underwriter did not collect any CDSCs
on the redemption of Class C shares of the Ohio Tax-Free Bond Fund during the year ended June 30, 2013.
5. Federal Tax Information
Federal income tax—
It is
each Fund’s policy to continue to comply with the special provisions of the Internal
Revenue Code applicable to regulated
investment companies. As provided therein, in any fiscal year in which a Fund so qualifies and distributes at least 90% of its
investment company taxable income, the Fund (but not the shareholders) will be relieved of federal income tax on the income distributed.
It is the Fund’s policy to distribute all of its taxable income and accordingly, no provision for income taxes has been made.
In order to avoid imposition of the excise
tax applicable to regulated investment companies, it is also each Fund’s intention to declare and pay as dividends in each
calendar year at least 98% of its investment company taxable income (earned during the calendar year) and 98.2% of its net realized
capital gains (earned during the twelve months ending October 31) plus undistributed amounts from prior years.
Notes to Financial Statements (Continued)
The tax character of distributions paid for the years
ended June 30, 2013 and 2012 was as follows:
|
|
|
Ohio Tax-Free
|
|
|
Ohio Tax-Free
|
|
|
|
|
Bond Fund
|
|
|
Money Market Fund
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
|
From tax exempt income
|
|
$
|
1,868,279
|
|
|
$
|
1,891,321
|
|
|
$
|
18,996
|
|
|
$
|
19,648
|
|
|
From ordinary income
|
|
|
1,517
|
|
|
|
19,613
|
|
|
|
—
|
|
|
|
—
|
|
|
From long-term capital gains
|
|
|
342,894
|
|
|
|
54,420
|
|
|
|
—
|
|
|
|
—
|
|
|
Total distributions
|
|
$
|
2,212,690
|
|
|
$
|
1,965,354
|
|
|
$
|
18,996
|
|
|
$
|
19,648
|
|
|
|
|
Tax-Free
|
|
|
|
|
Money Market Fund
|
|
|
|
|
2013
|
|
|
2012
|
|
|
From tax exempt income
|
|
$
|
4,040
|
|
|
$
|
4,443
|
|
|
From long-term capital gains
|
|
|
—
|
|
|
|
—
|
|
|
Total distributions
|
|
$
|
4,040
|
|
|
$
|
4,443
|
|
The following information is computed on a tax basis
for each item as of June 30, 2013:
|
|
|
|
|
|
Ohio Tax-Free
|
|
|
|
|
|
|
|
Ohio Tax-Free
|
|
|
Money Market
|
|
|
Tax-Free Money
|
|
|
|
|
Bond Fund
|
|
|
Fund
|
|
|
Market Fund
|
|
|
Tax cost of portfolio investments
|
|
$
|
51,992,681
|
|
|
$
|
167,449,552
|
|
|
$
|
39,592,492
|
|
|
Gross unrealized appreciation
|
|
$
|
2,689,772
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Gross unrealized depreciation
|
|
|
(317,403
|
)
|
|
|
—
|
|
|
|
—
|
|
|
Net unrealized appreciation
|
|
|
2,372,369
|
|
|
|
—
|
|
|
|
—
|
|
|
Accumulated capital and other losses
|
|
|
—
|
|
|
|
(3,111
|
)
|
|
|
(3,384
|
)
|
|
Undistributed tax exempt income
|
|
|
16,485
|
|
|
|
369
|
|
|
|
—
|
|
|
Undistributed capital gains
|
|
|
13,852
|
|
|
|
—
|
|
|
|
—
|
|
|
Other temporary differences
|
|
|
(42,588
|
)
|
|
|
(721
|
)
|
|
|
(1
|
)
|
|
Accumulated earnings (deficit)
|
|
$
|
2,360,118
|
|
|
$
|
(3,463
|
)
|
|
$
|
(3,385
|
)
|
As of June 30, 2013, the Funds had the following capital
loss carryforwards for federal income tax purposes:
|
|
|
Short Term
|
|
|
No
|
|
|
No
|
|
|
|
|
|
|
|
Expiring on
|
|
|
Expiration
|
|
|
Expiration
|
|
|
|
|
|
Fund
|
|
2017
|
|
|
Short-Term*
|
|
|
Long-Term*
|
|
|
Total
|
|
|
Ohio Tax-Fee Money Market Fund
|
|
$
|
—
|
|
|
$
|
3,111
|
|
|
$
|
—
|
|
|
$
|
3,111
|
|
|
Tax-Free Money Market Fund
|
|
|
670
|
|
|
|
2,714
|
|
|
|
—
|
|
|
|
3,384
|
|
*The Regulated Investment Company
Modernization Act of 2010 (the “Act”) was enacted on December 22, 2010. The Act makes changes to several tax rules
impacting the Funds. The provisions of the Act became effective for the Funds’ fiscal year ending June 30, 2012. Although
the Act provides several benefits, including the unlimited carryover of future capital losses, there may be a greater likelihood
that all or a portion of each Fund’s pre-enactment capital loss carryovers may expire without being utilized due to the fact
that post-enactment capital losses must be utilized before pre-enactment capital loss carryovers may be utilized. Under the Act,
new capital losses may now be carried forward indefinitely, and retain the character of the original loss as compared with pre-enactment
law, where capital losses could be carried forward for eight years, and carried forward as short-term capital losses, irrespective
of the character of the original loss.
The capital loss carryforwards
may be utilized in future years to offset net realized capital gains, if any, prior to distributing such gains to shareholders.
The Funds have analyzed their tax
positions taken on federal income tax returns for all open tax years (tax years ended June 30, 2010 through 2013) and have concluded
that no provision for income tax is required in their financial statements.
Certain reclassifications, the
result of permanent differences between financial statement and income tax reporting requirements, have been made to the components
of capital. These reclassifications have no impact on the net assets or NAV per share of the Funds and are designed to present
the Funds’ capital accounts on a tax basis.
Notes to Financial Statements (Continued)
The following reclassification, which was
attributable to an overdistribution, was made by the following Fund for the year ended June 30, 2013.
|
|
|
|
|
|
Accumulated
|
|
|
|
|
Paid-In
|
|
|
Net Investment
|
|
|
|
|
Capital
|
|
|
Income
|
|
|
Touchstone Tax-Free Money Market Fund
|
|
$
|
(3
|
)
|
|
$
|
3
|
|
6. Commitments and Contingencies
The Funds indemnify theTrust’s officers
andTrustees for certain liabilities that might arise from their performance of their duties to the Funds. Additionally, in the
normal course of business, the Funds enter into contracts that contain a variety of representations and warranties and which provide
general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims
that may be made against the Funds. However, based on experience, the Funds expect the risk of loss to be remote.
7. Subsequent Events
Subsequent events occurring after the date
of this report have been evaluated for potential impact to this report through the date the financial statements were issued.There
were no subsequent events that necessitated recognition or disclosure on the Funds’ financial statements.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of
Touchstone Tax-Free Trust
We have audited the accompanying
statements of assets and liabilities, including the portfolios of investments, of Touchstone Tax-Free Trust, comprised of
the Touchstone Ohio Tax-Free Bond Fund,Touchstone Ohio Tax-Free Money Market Fund, and Touchstone Tax-Free Money Market Fund
(the “Funds”), as of June 30, 2013, and the related statements of operations for the year then ended, the
statements of changes in net assets for each of the two years then ended, and the financial highlights for each of the five
years in the period then ended. These financial statements and financial highlights are the responsibility of the
Funds’ management. Our responsibility is to express an opinion on these financial statements and financial
highlights based on our audits.
We conducted our audits in accordance with
the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform
the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not
engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of
internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of June
30, 2013, by correspondence with the custodian and brokers, or by other appropriate auditing procedures where replies from brokers
were not received. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements
and financial highlights referred to above present fairly, in all material respects, the financial position of each of the respective
Funds comprising the Touchstone Tax-Free Trust at June 30, 2013, the results of their operations for the year then ended, the changes
in their net assets for each of the two years then ended, and their financial highlights for each of the five years in the period
then ended, in conformity with U.S. generally accepted accounting principles.
Cincinnati, Ohio
August 23, 2013
Other Items (Unaudited)
Supplemental Tax Information
The information set forth below is for
each Fund’s fiscal year as required by federal income tax laws. Shareholders, however, must report distributions on a calendar
year basis for income tax purposes, which may include distributions for portions of two fiscal years of a Fund. Accordingly, the
information needed by shareholders for income tax purposes will be sent to them in January of each year. Please consult your tax
advisor for proper treatment of this information.
The Touchstone Ohio Tax-Free Bond Fund
designated $342,894 as capital gain dividends paid during the most-recent fiscal year.
Of the dividends paid from net investment
income during the most-recent fiscal year, the following percentages were designated as exempt interest dividends for federal income
tax purposes.
Exempt Interest Dividends
|
Touchstone Ohio Tax-Free Bond Fund
|
|
|
99.9
|
%
|
|
Touchstone Ohio Tax-Free Money Market Fund
|
|
|
100.0
|
%
|
|
Touchstone Tax-Free Money Market Fund
|
|
|
100.0
|
%
|
Proxy Voting Guidlines
The Sub-Advisor is responsible for exercising
the voting rights associated with the securities purchased and held by the Fund. A description of the policies and procedures that
the Sub-Advisor uses in fulfilling this responsibility is available as an appendix to the most recent Statement of Additional Information,
which can be obtained without charge by calling toll free 1.800.543.0407 or by visiting the Touchstone website at www.touchstoneinvestments.com
or on the Securities and Exchange Commission’s (the “Commission”) website at www.sec.gov. Information regarding
how those proxies were voted during the most recent twelve-month period ended June 30 is also available without charge by calling
toll free 1.800.543.0407 or on the Commission’s website at www.sec.gov.
Quarterly Portfolio Disclosure
The Trust files a complete listing of portfolio
holdings for each Fund as of the end of the first and third quarters of each fiscal year on Form N-Q. The complete listing (i)
is available on the Commission’s website; (ii) may be reviewed and copied at the Commission’s Public Reference Room
in Washington, DC; and (iii) will be made available to shareholders upon request by calling 1.800.543.0407 or by visiting the Touchstone
website at www.touchstoneinvestments.com. Information on the operation of the Public Reference Room may be obtained by calling
1.800.SEC.0330.
Schedule of Shareholder Expenses
As a shareholder of the Funds, you incur
two types of costs: (1) transaction costs, including reinvested dividends or other distributions; and (2) ongoing costs, including
investment advisory fees; distribution (12b-1) fees; and other Fund expenses. This example is intended to help you understand your
ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual
funds.
The example is based on an investment of
$1,000 invested at the beginning of the period and held for the entire period January 1, 2013 through June 30, 2013.
Actual Expenses
The first line of the table below for each
share class of a Fund provides information about actual account values and actual expenses. You may use the information in this
line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account
value by $1,000 (for example, an $8,600
Other Items (Unaudited) (Continued)
account value divided by $1,000 = 8.6),
then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Six Months
Ended June 30, 2013” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table below for
each share class of a Fund provides information about hypothetical account values and hypothetical expenses based on the Funds’
actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return.
The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid
for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so,
compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in
the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads),
redemption fees, or exchange fees. Therefore, the second line of the table below is useful in comparing ongoing costs only, and
will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were
included, your costs would have been higher.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
Net Expense
|
|
|
Beginning
|
|
|
Ending
|
|
|
Paid During
|
|
|
|
|
|
|
Ratio
|
|
|
Account
|
|
|
Account
|
|
|
the Six Months
|
|
|
|
|
|
|
Annualized
|
|
|
Value
|
|
|
Value
|
|
|
Ended
|
|
|
|
|
|
|
June 30,
|
|
|
January 1,
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
|
|
|
2013
|
|
|
2013
|
|
|
2013
|
|
|
2013*
|
|
|
Touchstone Ohio Tax-Free Bond Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A
|
|
Actual
|
|
|
0.85
|
%
|
|
$
|
1,000.00
|
|
|
$
|
968.20
|
|
|
$
|
4.15
|
|
|
Class A
|
|
Hypothetical
|
|
|
0.85
|
%
|
|
$
|
1,000.00
|
|
|
$
|
1,020.58
|
|
|
$
|
4.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class C
|
|
Actual
|
|
|
1.60
|
%
|
|
$
|
1,000.00
|
|
|
$
|
964.60
|
|
|
$
|
7.79
|
|
|
Class C
|
|
Hypothetical
|
|
|
1.60
|
%
|
|
$
|
1,000.00
|
|
|
$
|
1,016.86
|
|
|
$
|
8.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Touchstone Ohio Tax-Free Money Market Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A
|
|
Actual
|
|
|
0.21
|
%
|
|
$
|
1,000.00
|
|
|
$
|
1,000.10
|
|
|
$
|
1.04
|
|
|
Class A
|
|
Hypothetical
|
|
|
0.21
|
%
|
|
$
|
1,000.00
|
|
|
$
|
1,023.75
|
|
|
$
|
1.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Institutional Class
|
|
Actual
|
|
|
0.21
|
%
|
|
$
|
1,000.00
|
|
|
$
|
1,000.10
|
|
|
$
|
1.04
|
|
|
Institutional Class
|
|
Hypothetical
|
|
|
0.21
|
%
|
|
$
|
1,000.00
|
|
|
$
|
1,023.75
|
|
|
$
|
1.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Touchstone Tax-Free Money Market Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A
|
|
Actual
|
|
|
0.27
|
%
|
|
$
|
1,000.00
|
|
|
$
|
1,000.10
|
|
|
$
|
1.34
|
|
|
Class A
|
|
Hypothetical
|
|
|
0.27
|
%
|
|
$
|
1,000.00
|
|
|
$
|
1,023.46
|
|
|
$
|
1.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class S
|
|
Actual
|
|
|
0.27
|
%
|
|
$
|
1,000.00
|
|
|
$
|
1,000.10
|
|
|
$
|
1.34
|
|
|
Class S
|
|
Hypothetical
|
|
|
0.27
|
%
|
|
$
|
1,000.00
|
|
|
$
|
1,023.46
|
|
|
$
|
1.35
|
|
|
|
*
|
Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account
value over the period, multiplied by [181/365] (to reflect one-half year period).
|
Management of the Trust (Unaudited)
Listed below is required information
regarding the Trustees and principal officers of the Trust. The Trust’s Statement of Additional Information includes
additional information about the Trustees and is available, without charge, upon request by calling 1.800.543.0407 or by
visiting the Touchstone website at www.touchstoneinvestments.com.
Interested Trustees
1
:
|
|
|
|
|
|
|
|
|
Number
|
|
|
|
|
|
|
|
|
|
|
|
of
Funds
|
|
|
|
|
|
|
|
|
|
|
|
Overseen
|
|
|
|
|
|
|
|
Term
of
|
|
|
|
in
the
|
|
|
|
Name
|
|
Position(s)
|
|
Office
2
And
|
|
|
|
Touchstone
|
|
Other
|
|
Address
|
|
Held
with
|
|
Length
of
|
|
Principal
Occupation(s)
|
|
Fund
|
|
Directorships
|
|
Age
|
|
Trust
|
|
Time
Served
|
|
During
Past 5 Years
|
|
Complex
3
|
|
Held
During the Past 5 Years
4
|
|
Jill T. McGruder
Touchstone Advisors, Inc
303 Broadway
Suite 1100
Cincinnati, OH 45202
Year of Birth: 1955
|
|
Trustee and
President
|
|
Until retirement
at age 75 or until
she resigns or is
removed
Trustee since
1999
|
|
President and CEO of IFS Financial Services, Inc. (a holding company) from
1999 to the present.
|
|
50
|
|
Director of LaRosa’s, Inc. (a restaurant chain) from 1999 to the present,
IFS Financial Services, Inc. (a holding company) from 1999 to the present, Integrity and National Integrity Life Insurance
Co. from 2005 to the present, Touchstone Securities (the Trust’s distributor) from 1999 to the present, Touchstone Advisors
(the Trust’s investment advisor and administrator) from 1999 to the present, W&S Brokerage Services ( a brokerage
company) from 1999 to the present and W&S Financial Group Distributors (a distribution company) from 1999 to the present.
|
|
Independent Trustees:
|
|
|
|
|
|
|
|
|
|
|
Phillip R. Cox
c/o Touchstone Advisors, Inc.
303 Broadway
Suite 1100
Cincinnati, OH 45202
Year of Birth: 1947
|
|
Trustee
|
|
Until retirement at age 75 or until he resigns or is removed
Trustee since 1999
|
|
President and Chief Executive Officer of Cox Financial Corp.
(a financial services company) from 1971 to the present.
|
|
50
|
|
Director of Cincinnati Bell (a communications company) from
1994 to the present, Bethesda Inc. (a hospital) from 2005 to the present, Timken Co. (a manufacturing company) from 2004 to
the present, Diebold, Inc. (a technology solutions company) from 2004 to the present, and Duke Energy (energy holding company)
from 1994 until 2008.
|
William
C. Gale
c/o Touchstone Advisors, Inc.
303 Broadway
Suite 1100
Cincinnati, OH 45202
Year of Birth: 1952
|
|
Trustee
|
|
Until retirement
at age 75 or until he resigns or is removed Trustee since 2013
|
|
Senior
Vice President (from 2003 to the present) and Chief Financial Officer (from 1995 to the present) of Cintas Corporation (a
business services company).
|
|
50
|
|
None.
|
Susan J. Hickenlooper, CFA
c/o Touchstone Advisors, Inc.
303 Broadway
Suite 1100
Cincinnati, OH 45202
Year of Birth: 1946
|
|
Trustee
|
|
Until retirement at age 75 or until
she resigns or is removed Trustee since 2009
|
|
Financial Analyst for Impact 100 (Charitable
Organization) from 2012 to present.
|
|
50
|
|
Trustee of Gateway Trust (a mutual fund)
from 2006-2009, Cincinnati Parks Foundation (a charitable organization) from 2000 to present and Trustee of Episcopal Retirement
Homes Foundation from 1998-2011.
|
Management of the Trust (Unaudited) (Continued)
Independent Trustees (Continued):
|
|
|
|
|
|
|
|
|
Number
|
|
|
|
|
|
|
|
|
|
|
|
of Funds
|
|
|
|
|
|
|
|
|
|
|
|
Overseen
|
|
|
|
|
|
|
|
Term of
|
|
|
|
in the
|
|
|
|
Name
|
|
Position(s)
|
|
Office
2
And
|
|
|
|
Touchstone
|
|
Other
|
|
Address
|
|
Held with
|
|
Length of
|
|
Principal Occupation(s)
|
|
Fund
|
|
Directorships
|
|
Age
|
|
Trust
|
|
Time
Served
|
|
During
Past 5 Years
|
|
Complex
3
|
|
Held
During the Past 5 Years
4
|
H. Jerome Lerner
c/o Touchstone Advisors, Inc.
303 Broadway
Suite 1100
Cincinnati, OH 45202
Year of Birth: 1938
|
|
Trustee
|
|
Until retirement at age 75 or until he resigns or is removed Trustee since
1989
|
|
None.
|
|
50
|
|
Director of BASCO Shower Enclosures (a design and manufacturing company) from
2000 to the present and Hebrew Union College - Jewish Institute of Religion from 1990 to the present.
|
Kevin A.
Robie
5
c/o Touchstone Advisors, Inc.
303 Broadway
Suite 1100
Cincinnati, OH 45202
Year of Birth: 1956
|
|
Trustee
|
|
Until retirement
at age 75 or until he resigns or is removed Trustee since 2013
|
|
Vice President
of Portfolio Management at Soin International LLC (a multinational holding company) from 2004 to the present.
|
|
50
|
|
Director
of Buckeye EcoCare, Inc. (a lawn care company) from 2013 to the present, Trustee of Dayton Region New Market Fund, LLC (a
private fund) from 2010 to present, Trustee of the Entrepreneurs Center, Inc. (a small business incubator) from 2006 to the
present and Director of Interventional Imaging, Inc. (a medical device company) from 2004 to 2011.
|
Donald C. Siekmann
c/o Touchstone Advisors, Inc.
303 Broadway
Cincinnati, OH
Year of Birth: 1938
|
|
Trustee
|
|
Until retirement
at
age 75 or until
he resigns or is
removed
Trustee
since
2005
|
|
Executive for Duro Bag
Manufacturing
Co. (a bag
manufacturer) from 2002 to 2008.
|
|
50
|
|
Trustee of Riverfront Mutual Funds (until 2008).
|
Edward
J. VonderBrink
5
c/o Touchstone Advisors, Inc.
303 Broadway
Suite 1100
Cincinnati, OH 45202
Year of Birth: 1944
|
|
Trustee
|
|
Until retirement
at age 75 or until
he resigns or is
removed
Trustee since
2013
|
|
Consultant,
VonderBrink Consulting
LLC from 2000 to the present.
|
|
50
|
|
Director
of Streamline Health
Solutions, Inc. (healthcare IT) from
2006 to the present, BASCO shower
Enclosures (a design and
manufacturing company) from 2010
to the present, Mercy Health
Foundation from 2008 to the present
and Pelican Sound Golf and River
Club
from 2012 to the present.
|
|
|
1
|
Ms. McGruder, as a director of the Advisor and the Trust's Distributor, and an officer of affiliates
of the Advisor and the Trust's Distributor, is an “interested person” of the Trust within the meaning of Section 2(a)(19)
of the 1940 Act.
|
2
Each Trustee is elected to serve until the age
of 75 or until he or she sooner resigns or is removed.
|
|
3
|
As of June 30, 2013, The Touchstone Fund Complex consisted of 12 series of Touchstone Funds Group Trust, 4 series of Touchstone
Investment Trust, 1 series of Touchstone Institutional Funds Trust, 19 series of the Touchstone Strategic Trust, 3 series of Touchstone
Tax-Free Trust, and 11 variable annuity series of Touchstone Variable Series Trust.
|
|
|
4
|
Each Trustee is also a Trustee of Touchstone Funds Group Trust,
Touchstone Strategic Trust, Touchstone Investment Trust, Touchstone Institutional Funds Trust, and Touchstone Variable Series Trust.
|
5
Mr. Robie and Mr. VonderBrink were elected to
the Board of Trustees at a shareholder meeting held on August 2, 2013.
Management of the Trust (Unaudited) (Continued)
The following is a list of the Officers of the Trusts, the length
of time served, and principal occupations for the past five years.
Principal Officers:
|
|
|
|
|
Term
of
|
|
|
|
Name
|
|
Position(s)
|
|
Office And
|
|
|
|
Address
|
|
Held with
|
|
Length of
|
|
Principal Occupation(s)
|
|
Age
|
|
Trust
4
|
|
Time
Served
|
|
During
the Past 5 Years
|
Jill T. McGruder
1
Year of Birth: 1955
|
|
President and Trustee
|
|
Until resignation, removal or disqualification President since 2006
|
|
See biography above.
|
Steven
M. Graziano
1
Year of Birth: 1954
|
|
Vice President
|
|
Until resignation,
removal or disqualification Vice President since 2009
|
|
President
of Touchstone Advisors, Inc.; Executive Vice President of Pioneer Investment Management, Head of Retail Distribution and Strategic
Marketing 2007- 2008.
|
Timothy D. Paulin
1
Year of Birth: 1963
|
|
Vice
President
|
|
Until resignation, removal or disqualification
Vice President since 2010
|
|
Senior Vice President of Investment Research and Product Management of Touchstone
Advisors, Inc.; Director of Product Design of Klein Decisions, Inc. 2003-2010.
|
Michael
R. Moser
1, 2
Year of Birth: 1968
|
|
Chief Compliance
Officer
|
|
Until resignation,
removal or disqualification Chief Compliance Officer since 2012
|
|
Vice President
and Chief Compliance Officer of the Western & Southern Financial Group and Chief Compliance Officer of Touchstone Advisors.
|
Terrie A. Wiedenheft
1
Year of Birth: 1962
|
|
Controller and Treasurer
|
|
Until resignation, removal or disqualification Controller and Treasurer since
2006
|
|
Senior Vice President, Chief Financial Officer and Chief Operations Officer
of IFS Financial Services, Inc. (a holding company).
|
Elizabeth
R. Freeman
3
Year of Birth: 1962
|
|
Secretary
|
|
Until resignation,
removal or disqualification Secretary since 2011
|
|
Managing
Director and Senior Counsel at BNY Mellon Investment Servicing (US) Inc.
|
|
|
1
|
The address of Touchstone Advisors, Inc. is 303 Broadway,
Suite 1100, Cincinnati, OH 45202.
|
|
|
2
|
Timothy S. Stearns replaced Mr. Moser as the Chief Compliance
Officer of the Trust on August 22, 2013.
|
|
|
3
|
The address of BNY Mellon Investment Servicing (US)
Inc. is 201 Washington Street, Boston, MA 02108.
|
|
|
4
|
Each officer also holds the same office with Touchstone Funds Group Trust, Touchstone Instituational
Funds Trust, Touchstone Investment Trust, Touchstone Strategic Trust, and Touchstone Variable Series Trust.
|
PRIVACY PROTECTION POLICY
We Respect Your Privacy
Thank you for your decision to invest with
us. Touchstone and its affiliates have always placed a high value on the trust and confidence our clients place in us. We believe
that confidence must be earned and validated through time. In today’s world, when technology allows the sharing of information
at light speeds, trust must be reinforced by our sincere pledge to take the steps necessary to ensure that the information you
share with us is treated with respect and confidentiality.
Our Pledge to Our Clients
|
|
•
|
We collect only the information we need to service your account and
administer our business.
|
|
|
•
|
We are committed to keeping your information confidential and we
place strict limits and controls on the use and sharing of your information.
|
|
|
•
|
We make every effort to ensure the accuracy of your information.
|
We Collect the Following Nonpublic Personal Information About
You:
|
|
•
|
Information we receive from you on or in applications or other forms,
correspondence, or conversations, including, but not limited to, your name, address, phone number, social security number, assets,
income and date of birth; and
|
|
|
•
|
Information about your transactions with us, our affiliates, or others,
including, but not limited to, your account number and balance, payment history, parties to transactions, cost basis information,
and other financial information.
|
Categories of Information We Disclose and Parties to Whom
We Disclose
We do not disclose any nonpublic personal information about
our current or former clients to nonaffiliated third parties, except as required or permitted by law.
We Place Strict Limits and Controls on the Use and Sharing
of Your Information
|
|
•
|
We restrict access to nonpublic personal information about you to
authorized employees who need the information to administer your business.
|
|
|
•
|
We maintain physical, electronic and procedural safeguards that comply
with federal standards to protect this information.
|
|
|
•
|
We do not disclose any nonpublic personal information about our current
or former clients to anyone, except as required or permitted by law or as described in this document.
|
|
|
•
|
We will not sell your personal information to anyone.
|
We May Provide Information to Service Your Account
Sometimes it is necessary to provide information
about you to various companies such as transfer agents, custodians, broker-dealers and marketing service firms to facilitate the
servicing of your account. These organizations have a legitimate business need to see some of your personal information in order
for us to provide service to you. We may disclose to these various companies the information that we collect as described above.
We require that these companies, including our own subsidiaries and affiliates, strictly maintain the confidentiality of this information
and abide by all applicable laws. Companies within our corporate family that may receive this information are financial service
providers and insurance companies. We do not permit these associated companies to sell the information for their own purposes,
and we never sell our customer information.
This policy is applicable to the following
affiliated companies: Touchstone Funds Group Trust, Touchstone Investment Trust, Touchstone Strategic Trust, Touchstone Tax-Free
Trust, Touchstone Variable Series Trust, Touchstone Institutional Funds Trust, Touchstone Securities, Inc.,* and W&S Brokerage
Services, Inc.
* Touchstone Securities, Inc. serves as the underwriter to
the Touchstone Funds.
A Member of Western & Southern
Financial Group
®
The Privacy Protection Policy is not part of the
Annual Report.
Touchstone Investments
Distributor
Touchstone Securities, Inc.*
303 Broadway
Cincinnati, Ohio 45202-4203
800.638.8194
www.touchstoneinvestments.com
Investment Advisor
Touchstone Advisors, Inc.*
303 Broadway
Cincinnati, Ohio 45202-4203
Transfer Agent
BNY Mellon Investment Servicing (US) Inc.
4400 Computer Drive
Westborough, MA 01581
Shareholder Service
800.543.0407
* A Member of Western & Southern Financial Group
TSF-58-TTFT-AR-1306