Fund Evaluator:

Touchstone Strategic Income Fund Class Y Overview

Touchstone Strategic Income Fund Class Y (TQPYX) is an actively managed Taxable Bond Multisector Bond fund. Touchstone launched the fund in 2015.

The investment seeks a high level of current income with a focus on capital preservation. The fund invests, under normal market conditions, at least 80% of its assets in income producing fixed income securities. Income producing securities generally include corporate debt securities, mortgage-related securities, asset-backed securities, government securities (both U.S. government securities and foreign sovereign debt), and preferred stocks. The fund may also invest up to 20% of its total assets in emerging markets debt securities denominated in either the U.S. dollar or a foreign currency.

About Touchstone Strategic Income Fund Class Y (TQPYX)

There are 3 members of the management team with an average tenure of 4.95 years: Daniel Carter (2021), Austin Kummer (2021), Brendan White (2021). Management tenure is more important for actively managed funds than passive index funds.

The fund has 1 primary benchmark: Bloomberg US Agg Bond TR USD index with a weighting of 100%. Touchstone Strategic Income Fund Class Y has 211 securities in its portfolio. The top 10 holdings constitute 25.2% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Touchstone Strategic Income Fund Class Y is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Touchstone Strategic Income Fund Class Y has 10.3% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 1.9%. There is 0.0% allocated to foreign stock, and 1.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 94.7% (84.3% domestic bond, 10.3% foreign bond and 1.1% convertible bond). Touchstone Strategic Income Fund Class Y has 1.4% of the portfolio in cash.

Assets Under Management

The fund has $93 million in total assets, which is below the $1 billion average for the Multisector Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

TQPYX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Touchstone Strategic Income Fund Class Y expense ratio is above average compared to funds in the Multisector Bond category. Touchstone Strategic Income Fund Class Y has an expense ratio of 0.67%, which is 30% lower than its category average, making the fund expense ratio grade a B. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Touchstone Strategic Income Fund Class Y has a portfolio turnover rate of 193%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 162% for the Multisector Bond category.

Recently, in the month of June 2026, Touchstone Strategic Income Fund Class Y returned 0.5%, which earned it a grade of A, as the Multisector Bond category had an average return of 0.2%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Touchstone Strategic Income Fund Class Y has a trailing yield of 5.00%, which is below the 5.25% category average. The fund normally distributes its income monthly.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Touchstone Strategic Income Fund Class Y Grades

Year to date, the fund has returned 1.6%, 0.0 percentage points better than the category, which translates into a grade of C. The fund has returned 5.8% over the past year (grade of B), 8.3% over the past three years (grade of A) and 3.2% per year over the past five years (grade of B) and 4.0% per year over the past 10 years (grade of C).

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