Looking for NL application processing deadlines? Click here. For important reporting updates for RMDs and annual retirement account fees, click here.
Holiday Phone Hours for ESI Call Center
12/23 – NYSE open until 4 – ESI phones close at 4:00 EST
12/26 – National Life and ESI closed for Christmas Observed
1/2 – National Life and ESI closed for New Year’s Day Observed
ESI BROKERAGE OPERATIONS – IMPORTANT DATES
Nov. 15, 2022 Annual Maintenance Fee Waiver Request form must be received at ESI by November 15, 2022. This optional form is submitted by Registered Representatives that wish to absorb IRA fees on behalf of client accounts.
Nov. 1-19, 2022 IRA Custodial Fees – Retirement accounts that have instructions on file to pay the annual maintenance fee via journal or EFT may have the fee deducted from the account as early as November 1st through November 19th, 2022.
Nov. 22, 2022 IRA Custodial Fees – $40 per account, included as a statement message on September 30, 2022 statement, will be applied to client accounts November 22nd.
Dec. 7, 2022 Systematic Withdrawals from Retirement Accounts scheduled for payment between December 12th and December 31st will be “pulled forward” in the December 7th nightly cycle. Trades at the client’s instruction should be placed, if necessary, to satisfy the distribution. Partial distributions will be made on December 31st if cash is available in the account. This deadline will allow for corrective actions on incorrect banking or address information.
Dec. 15, 2022 Roth IRA Conversions – It is strongly recommended forms be received, in good order, by December 15th. After this date, conversions will be made on a best efforts basis. Under no circumstances can a request be backdated.
Required Minimum Distributions – It is strongly recommended requests be received, in good order, no later than December 15th to ensure proper processing. This will allow time for corrections to incorrect banking and/or address information.
Alternative Investments 2022 Annual Custody & Valuation Fees – $35 per registered position, $125 per unregistered position, ($500 maximum Fee) are applied to accounts with eligible positions. If insufficient funds exist in the core fund, an unsecured fee posting will be placed in the account for the outstanding balance of the fee. Fee postings which are not resolved by February 1, 2023 will be reversed and charged to the Registered Representative’s commissions.
Dec. 27, 2022 Systems Deadline for New 2022 Periodic Distributions Plans – must be established and approved in ICP by December 27, 2022 in time to pay in 2022. Beginning December 28, 2022, Fidelity Clearing & Custody will establish periodic distribution plans for 2023 only.
Dec. 31, 2022 Fidelity Clearing & Custody Fee Processing and Balance Reminders – In order for a client to avoid the $35 non-qualified account custody fee, they must have one commissionable transaction settle in 2022 or have a $10,000 balance in the core money market fund on December 31, 2022.
Last trade date for 2022 regular way settlement is December 29, 2022.
Dec. 30th and 31st, 2022 IRA Distributions December 30th, 2022 is the last day an EFT can be sent out of an IRA account as a 2022 distribution, if same day settlement is available.
Distributions processed on December 31st as a check, will be reported in the 2022 tax year.
Dec. 31, 2022 & Jan. 2, 2023 Fidelity Clearing & Custody – “Inactivity” Fee Assessed & Charged – Client accounts are assessed for eligibility/waiver of Custody Fee on December 31, 2022 and, if eligible, are charged the fee on January 2nd, 2023.
Jan. 5-31, 2023 Securities Liquidations to cover Unpaid Fee Postings – ESI home office will begin the process of liquidating securities to cover unpaid fee postings related to the NFS IRA Custody Fee and non-qualified “Inactivity Fee”. Accounts with eligible securities will have trades placed to cover “debit” balances related to fee postings, as well as applicable transaction charges. Customer confirmations will be marked “To Cover Debit”. Representative’s will be charged the $25.00 service fee if ESI home office has to place trades.
Please contact ESI Operations at (800) 344-7437 with questions.
Operations Reporting Updates: RMD’s and Annual Retirement Account Fees
Historically, ESI Operations has leveraged the automated Wealthscape reporting delivery system to send reports on RMD’s and Annual Retirement Account Fees during Q4. Currently, we are unable to utilize this tool to push these reports automatically via email. National Financial Services has been researching the issue for a few weeks and we do not have a current ETA on a resolution.
Luckily, these reports can be ran on an ad-hoc basis via Wealthscape (Reports & Alerts -> Reports). You can search by Report name and click on the drop-down arrow to view the data. The reports are titled “RMD”, and “Retirement Account Annual Fees with Core Cash Balance”.
The “RMD” Report displays all of your client’s with an RMD requirement for a given account. The “Estimated RMD Amount Remaining” Column can be utilized to determine the population of accounts that haven’t yet satisfied their RMD. Some clients may had a Periodic Plan set up for their RMD, and these amounts that haven’t yet been distributed will show in the “Estimated Remaining Periodic Pymt Amnt” column.
The “Retirement Account Annual Fees with Core Cash Balance” report was created by ESI to assist you in identifying client accounts that are subject to the $40.00 annual IRA fee, and currently have insufficient cash to cover. These accounts may require your action to avoid ESI Home Office placing a trade in January, and charging the rep of record $25.00 per trade for the service.
These reports can be customized and filtered in any manner that will assist you in tackling these Operational items. Once you modify a report with your preferences, you can “save as” and it will be saved in your reports for future use. If you have any questions on the reports and the underlying Operational initiatives, please contact our service desk at 1-800-344-7437.
Alternative Mutual Fund Lists Updated for Q3 2022
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.
All three lists can be found on the NL Agent Portal under Products – Investments – 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.
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.
All three lists can be found on the NL Agent Portal under Products – Investments – 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.
Do you have clients who are looking for an accumulation and/or income solution for their rollover, but today’s market volatility has them leaning into a more conservative risk profile? Given their range of options an annuity may be a good solution to explore.
Risk Profile: Conservative to Moderate
Needs:
Looking for accumulation and/or income
Concerned about risk but still looking for an alternative to CD’s or Treasuries
Use as a source of income “bridge” to avoid taking income from equities-based accounts in years during significant market decline – protection from sequence of return risk.
Does not want to risk their principal
Potential Solution: Single Premium Fixed Indexed Deferred Annuity (FIDA) A Fixed Indexed Deferred Annuity, FIDA can offer competitive caps, floors and flexibility. For more information on FIDA from National Life Group, click here.
Risk Profile: Moderate to Moderately Aggressive
Needs:
Looking for accumulation and/or income
Willing to accept some risk (including principal loss) for potentially higher return
Potential Solution: Registered Index-Linked Annuity (RILA) A RILA limits, but doesn’t eliminate, downside risk, and offers growth potential that falls between a fixed indexed annuity and a variable annuity.
Do you have clients who are looking for an accumulation and/or income solution for their rollover, but today’s market volatility has them leaning into a more conservative risk profile? Given their range of options an annuity may be a good solution to explore.
Risk Profile: Conservative to Moderate
Needs:
Looking for accumulation and/or income
Concerned about risk but still looking for an alternative to CD’s or Treasuries
Use as a source of income “bridge” to avoid taking income from equities-based accounts in years during significant market decline – protection from sequence of return risk.
Does not want to risk their principal
Potential Solution: Single Premium Fixed Indexed Deferred Annuity (FIDA) A Fixed Indexed Deferred Annuity, FIDA can offer competitive caps, floors and flexibility. For more information on FIDA from National Life Group, click here.
Risk Profile: Moderate to Moderately Aggressive
Needs:
Looking for accumulation and/or income
Willing to accept some risk (including principal loss) for potentially higher return
Potential Solution: Registered Index-Linked Annuity (RILA) A RILA limits, but doesn’t eliminate, downside risk, and offers growth potential that falls between afixed indexed annuity and a variable annuity.
Reverse Stock Split of Certain Touchstone Fund’s Class C Shares
Effective Date – after close of business October 14, 2022
During their August 18th meeting, the Touchstone Board of Trustees approved a Reverse Stock Split for Class C shares of five Touchstone Funds. The Reverse Stock Split will be completed as outlined in the table below after the close of business on or about October 14, 2022 (the “Effective Date”). Shareholders who own Class C shares of these Funds will receive a proportional number of Class C shares as of the Effective Date. The total dollar value of a shareholder’s investment in the Fund will be unchanged and each shareholder will continue to own the same percentage (by value) of the Fund immediately following the Reverse Stock Split as the shareholder did immediately prior to the Reverse Stock Split.
The Reverse Stock Split will not be a taxable event, nor does it have an impact on the Fund’s holdings or its performance. The Board approved the Reverse Stock Split in order to bring the NAV of the Fund’s Class C shares into better alignment with the NAVs of the Fund’s other share classes. For additional information, Touchtone is providing copies of the prospectus supplements related to this corporate action.
This is the first of several Touchstone communications as the operational details for this Reverse Stock Split will be provided in future communications.
The Reverse Stock Split Ratios for the impacted Touchstone Funds are in the table below which are based on the NAV of the Fund’s Class C shares as of August 17, 2022.
TA #
CUSIP
TICKER
SHARE CLASS
TOUCHSTONE FUND NAME
Reverse Stock Split Ratio (old to new)
90
89154X807
TGVCX
C
Growth Opportunities Fund
1 : 0.670946
43
89154X872
TOECX
C
Mid Cap Growth Fund
1 : 0.466797
28
89154X401
TEQCX
C
Non-US ESG Equity Fund
1 : 0.801806
461
89155T839
TSNCX
C
Sands Capital Select Growth Fund
1 : 0.796098
6501
89154Q240
SSCOX
C
Small Company Fund
1 : 0.379048
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.
Touchstone Growth Opportunities Fund Touchstone Mid Cap Growth Fund Touchstone Non-US ESG Equity Fund Touchstone Small Company Fund (each, a “Fund” and together, the “Funds”)
Supplement dated August 19, 2022 to the current Prospectus, Summary Prospectus, and Statement of Additional Information for the Funds, as may be amended or supplemented from time to time
The following change applies to the current Prospectus, Summary Prospectus, and Statement of Additional Information for Touchstone Growth Opportunities Fund, Touchstone Mid Cap Growth Fund, Touchstone Non-US ESG Equity Fund and Touchstone Small Company Fund (each, a “Fund” and together, the “Funds”).
At a meeting of the Board of Trustees (the “Board”) of Touchstone Strategic Trust (the “Trust”) held on August 18, 2022, Touchstone Advisors, Inc. (“Touchstone”) proposed, and the Board approved, a reverse stock split of the Funds’ issued and outstanding Class C shares (collectively, the “Reverse Stock Split”). The Reverse Stock Split will be completed as outlined in the table below after the close of business on or about October 14, 2022 (the “Effective Date”). As a result of the Reverse Stock Split, for each Class C share of the Funds that a shareholder owns as of the Effective Date, the shareholder will receive a proportional number of Class C shares of the respective Fund with the same aggregate dollar value. Thus, the total dollar value of an investment in a Fund will be unchanged and each shareholder will
continue to own the same percentage (by value) of the Fund immediately following the Reverse Stock Split as the shareholder did immediately prior to the Reverse Stock Split. The Reverse Stock Split will not be a taxable event, nor does it have an impact on a Fund’s holdings or its performance. No changes are contemplated at this time for the other share classes offered by the Funds.
The Reverse Stock Split will be carried out in accordance with a stock split ratio calculated to result in net asset values per share (“NAVs”) that better align the share class prices of the respective Funds. The ratios, which are based on the NAVs of each respective Fund’s Class C shares as of August 17, 2022, are shown in the table below.
Fund
Reverse Stock Split Ratio (Old to New)
Touchstone Growth Opportunities Fund – Class C
1 : 0.670946
Touchstone Mid Cap Growth Fund – Class C
1 : 0.466797
Touchstone Non-US ESG Equity Fund – Class C
1 : 0.801806
Touchstone Small Company Fund – Class C
1 : 0.379048
The Class C shares of each Fund will be offered, sold, and redeemed on a Reverse Stock Split-adjusted basis beginning on the first business day following the Effective Date. Each shareholder’s next account statement after the Reverse Stock Split is completed will reflect the Reverse Stock Split.
Reason for the Class C Shares Reverse Stock Split
The Board approved the Reverse Stock Split in order to bring the NAVs of eachFund’s Class C shares into better alignment with the NAVs of the Fund’s other share classes. The Reverse Stock Split is designed to reduce the variance between the NAVs of Class C shares and the other share classes of each respective Fund. This is intended to reduce marketplace confusion and bring greater uniformity to the ratio of capital gains to the NAVs across the classes of each Fund.
Touchstone Sands Capital Select Growth Fund (the “Fund”)
Supplement dated August 19, 2022 to the current Prospectus, Summary Prospectus, and Statement of Additional Information for the Fund, as may be amended or supplemented from time to time
Notice of Reverse Stock Split of Class C Shares
The following change applies to the current Prospectus, Summary Prospectus, and Statement of Additional Information, each dated January 28, 2022, for Touchstone Sands Capital Select Growth Fund (the “Fund”).
At a meeting of the Board of Trustees (the “Board”) of Touchstone Funds Group Trust (the “Trust”) held on August 18, 2022, Touchstone Advisors, Inc. (“Touchstone”) proposed, and the Board approved, a reverse stock split of the Fund’s issued and outstanding Class C shares (the “Reverse Stock Split”). The Reverse Stock Split will be completed as outlined in the table below after the close of business on or about October 14, 2022 (the “Effective Date”). As a result of the Reverse Stock Split, for the Class C shares of the Fund that a shareholder owns as of the Effective Date, the shareholder will receive a proportional number of Class C shares of the Fund with the same aggregate dollar value. Thus, the total dollar value of an investment in the Fund will be unchanged and each shareholder will continue to own the same percentage (by value) of the Fund immediately following the Reverse Stock Split as the shareholder did immediately prior to the Reverse Stock Split. The Reverse Stock Split will not be a taxable event, nor does it have an impact on the Fund’s holdings or its performance. No changes are contemplated at this time for the other share classes offered by the Fund.
The Reverse Stock Split will be carried out in accordance with a stock split ratio calculated to result in a net asset value per share (“NAV”) that better aligns the share class prices of the Fund. The ratio, which is based on the NAV of the Fund’s Class C shares as of August 17, 2022, is shown in the table below.
Fund
Reverse Stock Split Ratio (Old to New)
Touchstone Sands Capital Select Growth Fund – Class C
1 : 0.796098
The Class C shares of the Fund will be offered, sold, and redeemed on a Reverse Stock Split-adjusted basis beginning on the first business day following the Effective Date. Each shareholder’s next account statement after the Reverse Stock Split is completed will reflect the Reverse Stock Split.
Reason for the Class C Shares Reverse Stock Split
The Board approved the Reverse Stock Split in order to bring the NAV of the Fund’s Class C shares into better alignment with the NAVs of the Fund’s other share classes. The Reverse Stock Split is designed to reduce the variance between the NAVs of the Class C shares and the other share classes of the Fund. This is intended to reduce marketplace confusion and bring greater uniformity to the ratio of capital gains to the NAVs across the classes of the Fund.
Please contact your financial advisor or Touchstone at 800.543.0407 if you have any questions.
ESI is happy to announce that the Brighthouse Shield Level Pay Plus variable annuity is now available. This is a registered index linked annuity, RILA, similar to the Shield Level Select 6 VA, but also includes an income benefit. There is an additional fee for the income benefit.
Brighthouse Shield Level Pay Plus Annuities are index-linked annuities that offer market growth opportunities coupled with a level of downside protection and, when elected by the client, guaranteed income that lasts for life. An index-linked annuity is a long-term financial product designed to help clients save for retirement. Shield Level Pay Plus annuities feature the added benefit of providing guaranteed lifetime income through the choice of two versions of our built-in income rider: Market Growth and Market Growth with Rollup.
If you have additional questions, please contact Brighthouse at 800-848-3854.
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Health Savings Accounts (HSAs) with a balance of $10,000 or more can now be managed on the ESI Illuminations platform!
Whether or not this new option is a potential fit for a client often depends on when the client expects to use the funds. For example, a client who is currently using their HSA for ongoing medical expenses and is taking regular withdrawals may not be a good fit for ESI Illuminations. However, a client who has accumulated $10,000 or more in their HSA and doesn’t anticipate needing access to that money in the next 3-5 years may be a good fit for ESI Illuminations.
What is an HSA? An HSA is an individual account designed to work together with a high-deductible health plan (HDHP). It provides a triple tax advantage, is portable for the individual investor, and amounts in an HSA carry over from year to year.
