How much cash is the average American holding?  According to Personal Capital, “50-somethings had a median cash balance of $96,726, while the median cash balance among those in the 60s was $119,289.”¹ Given the recent interest rate increases, it would suggest that there would be a corresponding increase in short-term savings account interest rates.  However, the national average interest rate for savings accounts is 0.16 percent, according to Bankrate.com’s Oct. 26 weekly survey of institutions.²  What other options exist for clients seeking capital preservation and competitive rates?  Let’s consider some options.

Market-linked CDs are securities and are sold by prospectus.  ESI requires a registered representative to have a series 7 to offer market-linked CDs to their client.  Market-linked CDs are structured to participate in the potential growth of various indices, which could be comprised of equities, bonds, commodities, or other asset classes.  If they are held to maturity, market-linked CDs offer principal protection and are insured by the FDIC.  The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.³ If held to maturity, and the underlying investment / index declines, the principal is returned without an interest credit.  If the underlying investment / index increases, an interest credit is earned – subject to a cap on the earnings.  Why would a client invest in a market-linked CD as opposed to a traditional CD?  A traditional CD will pay a fixed interest rate, which is normally guaranteed by the issuer, while a market-linked CD offers the potential to earn a higher return based on the performance of the underlying markets.  The amount of the potential interest credit, which is subject to a cap, will vary based on the duration of the CD.  If the investor needs to access the capital prior to the end of the duration, a penalty or market value adjustment may be assessed. 

Multi Year Guaranteed Annuities (MYGAs) are not securities.  MYGAs are contracts issued by insurance companies.  MYGAs are contracts issued by insurance companies that offer a guaranteed interest rate for a period of years.  At the end of the period, (e.g., 3, 5, or 7 years) the rate will renew for the next guaranteed period.  Due to the recent increase in interest rates, MYGAs have now become more attractive alternatives for clients seeking capital preservation and a competitive interest rate.  In some instances, MYGAs are paying guaranteed rates in excess of 5%.  Other than the interest rate, what other factors should a client consider before buying a MYGA?  When will the proceeds be needed?  These are annuity contracts which means that access must be deferred to age 59 ½ or later to avoid penalty.  What are the financial ratings of the insurance company?  Is the company financially strong?  MYGAs are contractual obligations to pay interest.  Is the company investing in high-quality investments?  How are they generating their investment returns?  Do they have a track record or paying attractive renewal rates?  These are all factors to consider before purchasing a MYGA.

Fixed Indexed Annuities (FIAs) are not securities.  FIAs tend to have longer surrender periods than MYGA’s 7-10 years, but also offer the potential to have a higher interest credit.  FIAs have also been a beneficiary of the recent increase in interest rates.  Caps have materially increased throughout 2022, and in some cases now exceed 10%.  Considering that FIAs protect principal invested with a 0% floor, the potential for a 10% interest credit can be very attractive to a conservative investor.  Again, like MYGAs, potential clients should consider when access to the capital is needed.  What is the track record and reputation of the issuer?  Have they demonstrated renewal rate cap integrity?  Although index interest credits are not guaranteed by FIAs, what are the financial ratings and quality of the issuer’s balance sheet?  All of these should be considerations for potential FIA buyers.

As a proven leader in the annuity marketplace, National Life Group offers competitive solutions with rates that remain strong. Click here for current rates.

If you would like to learn more about National Life Group’s MYGA and single premium FIAs, please contact the NLG Sales Desk at 1-800-906-3310, option 1 or view the eKit at https://resources.nationallife.com/ekits/fit-spda/.

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¹ Personal Capital, September 27, 2022

² What is the average interest rate for savings accounts? Bankrate.com, 10/27/22

³ FDIC, Deposit Insurance at a Glance 

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The alternative mutual fund lists have been updated for Q1 2023.  To view the updated lists, click here:  https://www.nationallife.com/agent/products/investments/mutual-funds

Approved and Prohibited Alternative Mutual Funds
The purchase of Alternative Mutual Funds that include inverse and leveraged strategies is not permitted. To assist with what funds may be purchased, there is an Alternative Mutual Fund Available List and a Watch List which is updated quarterly and may be found on the Agent Portal à Products à Investments à Mutual Funds. 

• The Approved List is a list of approved alternative mutual funds that may be purchased (once training has been completed).
• The Watch List is the list of alternative mutual funds that the Firm is watching to determine if they may become prohibited in the future due to failing consecutive screens, (two consecutive quarters). If you recommend purchases on the list, please be aware that they may no longer be approved to purchase in the future.
• The Restricted List is the list of prohibited alternative mutual funds.
  • BROKERAGE: If an attempt to purchase is ma de in a brokerage account, the purchase will be blocked.
  • DIRECT: If purchased in a direct, mutual fund, you will be contacted by Compliance after to work with your client to have any new investments directed to a non-alternative mutual fund or to one of the approved alternative mutual funds. 
  • REMOVED FROM APPROVED LIST:If a fund is removed from the Available list (brokerage or direct), Compliance will contact you to let you know that the fund is no longer available for purchase and to work with your client to have any new investments directed to a non-alternative mutual fund or to one of the approved alternative mutual funds. 

Training
Prior to purchasing approved alternative mutual funds, you must first complete required training in FIRE Solutions. The training may be accessed through FIRE Solutions: https://blaze.firesolutions.com/portal/login. The cost is $12.50.  Once you have completed the course, please email your completion certificate to ESITrading@NationalLife.com and this training will be added to your profile.

Questions
If you have any questions or concerns regarding the alternative mutual fund lists, please contact ESI at 800-344-7437.

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New Allianz Variable Annuity Sales Piece and Updated Sales Contact Directory Map

Allianz has introduced a new registered representative sales piece, “You can’t win from the sidelines” outlining the features of their Index Protection Strategy for their Index Advantage Variable Annuity.

If you have questions or would like to see additional information, click here for contact information.

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From Touchstone Investments

Touchstone Anti-Benchmark® International Core Equity Fund Updates
IMPORTANT NOTICE

Touchstone Anti-Benchmark International Core Equity Fund
Liquidation Notice – March 30, 2023

 At a meeting held on February 16, 2023, the Touchstone Board of Trustees (“The Board”) approved a plan to close and liquidate the Touchstone Anti-Benchmark International Core Equity Fund (the “Fund”). The Fund is expected to close and liquidate on or about March 30, 2023 (the “Liquidation Date”).

TA#	Touchstone Fund Name	CUSIP	TICKER
6702	Anti-Benchmark International Core Equity Fund Class Y	89155T573	TYBAX
6705	Anti-Benchmark International Core Equity Fund Inst Class	89155T565	TIABX

• The Fund is immediately closed to new accounts.
• The Fund will be closed to new and subsequent investments effective on Trade Date March 13, 2023.
• At any time prior to the Liquidation Date, shareholders may redeem shares of the Fund.
• At any time prior to the Liquidation Date, shareholders may exchange their shares of the Fund for shares in another Touchstone Fund, subject to the minimum investment account requirements and other restrictions on exchanges as described in the applicable Fund’s prospectus.
• Shares remaining in the Fund on the Liquidation Date will automatically be redeemed for cash and the proceeds remitted to the shareholder of record. The liquidation of Fund shares will generally be a taxable event.
• Any applicable CDSC on redemptions from the Fund will be waived effective February 17, 2023.
• Additional details including NSCC trading and fund distributions (if any) will be provided closer to the Liquidation Date.

Should you have any questions, DTCC participant firms are invited to call BNY Mellon Broker Dealer Services at 1-877-332-2371. For any fund direct business or fund related inquiries, please contact Touchstone Shareholder Services at 1-800-543-0407.

FOR BROKER DEALER USE ONLY

TOUCHSTONE FUNDS GROUP TRUST
Touchstone Anti-Benchmark® International Core Equity Fund
(the “Fund”)

Supplement dated February 17, 2023 to the Fund’s Summary Prospectus, Prospectus and Statement of Additional Information (“SAI”), each dated January 27, 2023, as may be amended or supplemented from time to time

At a meeting of the Board of Trustees (the “Board”) of Touchstone Funds Group Trust held on February 16, 2023, the Board approved a plan to close and liquidate the Fund. The Fund is expected to be closed and liquidated on or about March 30, 2023 (the “Liquidation Date”). In making its decision, the Board carefully considered the recommendation by the Fund’s investment adviser, Touchstone Advisors, Inc. (“Touchstone”), to close and liquidate the Fund due to factors including the Fund’s small size and limited growth potential.

Accordingly, the Fund will be closed to new accounts immediately. The Fund will be closed to new and subsequent investments effective as of the close of business on March 10, 2023, except that the Fund may continue to accept systematic contributions from defined contribution and similar plans until suchtime as it is administratively feasible to terminate these arrangements or the Liquidation Date, whichever is sooner.

At any time prior to the Liquidation Date, shareholders may redeem shares of the Fund or exchange their shares of the Fund for shares in other Touchstone Funds, subject to minimum investment account requirements, other restrictions on exchanges and any sales load differentials as described in the applicable Touchstone Fund’s prospectus. Any contingent deferred sales charges applicable to the redemption of Fund shares will be waived.

If you still hold shares of the Fund on the Liquidation Date, your shares will be automatically redeemed for cash and the proceeds will be remitted to you (via check or wire) based on the instructions listed on your account. The sale or liquidation of your shares will generally be a taxable event. You should consult your personal tax advisor concerning your particular tax situation.

If you hold Fund shares in a Touchstone IRA or Coverdell ESA and we do not receive instructions on the disposition of your shares by the Liquidation Date, Fund shares held in your IRA or Coverdell ESA will be exchanged into shares of the Touchstone Ultra Short Duration Fixed Income Fund and such exchange will not be a tax-reportable event.

As shareholders redeem shares of the Fund between the date of this Supplement and the Liquidation Date, the Fund may not be able to continue to invest its assets in accordance with its stated investment goal and other investment policies. Accordingly, the Fund may deviate from its stated investment goal and other investment policies during the period between the date of this Supplement and the Liquidation Date.

Following the Liquidation Date, all references to the Fund will be removed from the Prospectus and the SAI.

*****

Please contact your financial advisor or Touchstone at 800.543.0407 if you have any questions.

P.O. Box 9878 · Providence, RI 02940-8078
Ph: 800.543.0407 · TouchstoneInvestments.com

Touchstone Funds are distributed by Touchstone Securities, Inc.*
*A registered broker-dealer and member FINRA and SIPC
A Member of Western & Southern Financial Group
Please retain this Supplement for future reference.

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Touchstone Dynamic Allocation Fund Updates

 TOUCHSTONE STRATEGIC TRUST
Touchstone Dynamic Allocation Fund (the “Fund”)

Supplement dated February 24, 2023 to the Prospectus, Summary Prospectus and Statement of Additional Information (“SAI”) dated April 29, 2022, as supplemented from time to time

IMPORTANT NOTICE REGARDING PROPOSED CHANGES TO THE FUND

Proposed Reorganization

On February 16, 2023, the Board of Trustees of the Touchstone Strategic Trust (“Trust”) approved converting the Fund into an exchange-traded fund (“ETF”) by the reorganization of the Fund into a new ETF, which upon filing and regulatory approval will be a newly-created fund in the Touchstone family of funds, (the “Reorganization”). The Fund’s shareholders will be required to approve the Reorganization. Additional information about the ETF will be available on or about March 13, 2023.

A proxy statement/prospectus containing more information regarding the Reorganization will be filed with the Securities and Exchange Commission, and once effective, will be mailed to Fund shareholders in the second quarter of 2023. A special meeting of the Fund’s shareholders is expected to be held in the third quarter of 2023 (the “Special Meeting”), at which shareholders of record of the Fund will be asked to vote on the proposal to approve the Reorganization. If the Reorganization is approved by Fund shareholders at the Special Meeting and subject to certain additional conditions, the Reorganization is expected to be completed in the fourth quarter of 2023. Expenses associated with the Reorganization will be borne by Touchstone Advisors, Inc.

The foregoing is not an offer to sell, nor a solicitation of an offer to buy, any shares in connection with the Reorganization, nor is it a solicitation of any proxy.

Please retain this Supplement for future reference.

IMPORTANT NOTICE
Touchstone Mutual Fund Conversion to Exchange-Traded Fund Q4 2023

 Touchstone Dynamic Allocation Fund

TA#	Touchstone Mutual Fund Name	CUSIP	TICKER
3067	Dynamic Allocation Fund Class A	89154Q307	TSMAX
3068	Dynamic Allocation Fund Class C	89154Q406	TSMCX
3086	Dynamic Allocation Fund Class Y	89154Q505	TSMYX

On February 16, 2023, the Board of Trustees of the Touchstone Strategic Trust (“Trust”) approved converting the Touchstone Dynamic Allocation Fund (the “Fund”) into an exchange-traded fund (“ETF”) by the reorganization of the Fund into a new ETF, which upon filing and regulatory approval will be a newly-created fund in the Touchstone family of funds, (the “Reorganization”). The Fund’s shareholders will be required to approve the Reorganization. Additional information will be available on or about March 13, 2023.

A Special Meeting of Shareholders is expected to be held (the “Special Meeting”), at which shareholders of the Target Fund will be asked to vote on the proposal to approve the Reorganization. The Reorganization is expected to be tax-free for U.S. federal income tax purposes.

Touchstone will distribute more details on the expected share class collapse and subsequent reorganization and in the coming months ahead of the event.

Should you have any questions, DTCC participant firms are invited to call BNY Mellon Broker Dealer Services at 877-332-2371. For any fund direct business or fund related inquiries, please contact Touchstone Shareholder Services at 800-543-0407.

FOR BROKER DEALER USE ONLY

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As of February 23, 2023, RREEF Property Trust, Inc. (the “Company”) has received share redemption requests during the quarter ending March 31, 2023 in excess of the limit of 5% of the Company’s combined net asset value (“NAV”) as of December 31, 2022. Pursuant to the terms of the Company’s share redemption plan (the “Share Redemption Plan”), all redemption requests received during the quarter prior to February 23, 2023 were satisfied 100% on a first-come, first-served basis. Redemption requests received on February 23, 2023 were satisfied on a pro rata basis without regard to share class such that aggregate redemptions during the quarter ending March 31, 2023 did not exceed the limit of 5% of the Company’s combined NAV as of December 31, 2022. As a result of reaching the quarterly redemption volume limitation under the Share Redemption Plan, the Company will no longer accept additional redemption requests until April 1, 2023. All unsatisfied redemption requests received during the quarter ending March 31, 2023 must be resubmitted on or after April 1, 2023 to be accepted.

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Now that interest rates have increased, there can be more attractive cash alternatives than bank savings accounts.  AAM is ESI’s primary fixed income distributor and has an inventory of fixed rate CDs with varying maturities.  There could be interest penalties if the CDs are redeemed prior to maturity.  To access the inventory of fixed rate CDs, go to www.aamlive.com , >Investment Solutions>Fixed Income>Yield Grid>CD.

For additional details on CDs, click here.

AAM Fixed Income Sales Desk: 866-606-7220.

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The Q4 2022 alternative mutual fund lists have been updated.  Please see below for additional information.

Approved and Prohibited Alternative Mutual Funds
The purchase of Alternative Mutual Funds that include inverse and leveraged strategies is not permitted. To assist with what funds may be purchased, there is an Alternative Mutual Fund Available List and a Watch List which is updated quarterly and may be found on the Agent Portal under Products – Investments – Mutual Funds. 

• The Approved List is a list of approved alternative mutual funds that may be purchased (once training has been completed).
• The Watch List is a the list of alternative mutual funds that the Firm is watching to determine if they may become prohibited in the future due to failing consecutive screens, (two consecutive quarters). If you recommend purchases on the list, please be aware that they may no longer be approved to purchase in the future.
• The Restricted List is the list of prohibited alternative mutual funds.
  • BROKERAGE: If an attempt to purchase is ma de in a brokerage account, the purchase will be blocked.
  • DIRECT: If purchased in a direct, mutual fund, you will be contacted by Compliance after to work with your client to have any new investments directed to a non-alternative mutual fund or to one of the approved alternative mutual funds. 
  • REMOVED FROM APPROVED LIST:If a fund is removed from the Available list (brokerage or direct), Compliance will contact you to let you know that the fund is no longer available for purchase and to work with your client to have any new investments directed to a non-alternative mutual fund or to one of the approved alternative mutual funds. 

Training
Prior to purchasing approved alternative mutual funds, you must first complete required training in FIRE Solutions. The training may be accessed through FIRE Solutions: https://blaze.firesolutions.com/portal/login. The cost is $12.50.  Once you have completed the course, please email your completion certificate to ESITrading@NationalLife.com and this training will be added to your profile.

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As we noted in “FIAs and SPDAs as Cash Alternatives”, for clients looking for capital preservation and competitive rates, some options to consider include market-linked CDs, Multi Year Guaranteed Annuities (MYGAs), and Fixed Indexed Annuities (FIAs).

National Life Group has a long tradition of providing strong FIAs and reliable MYGAs.  As a proven leader in the annuity marketplace, National Life Group offers competitive solutions – both for MYGAs and single premium FIAs – and rates continue to remain strong.

If you would like to learn more about National Life Group’s MYGA and single premium FIAs, please contact the NLG Sales Desk at 1-800-906-3310, option 1 or view the eKit at https://resources.nationallife.com/ekits/fit-spda/.

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