Portfolio Guidelines

The portfolio generally invests at least 80% of its net assets in a diversified portfolio of
corporate debt securities that are rated below investment grade or are unrated.

Top Ten Issues
As Of June 30, 2017

Energen Corp. 7.13% 02/15/28 6.4%
Cimpress N.V. 7.00% 04/01/22 4.7
Popular, Inc. 7.00% 07/01/19 4.5
Nationstar Capital Corp. 6.50% 06/01/22 4.3
Alliance Data Systems Co. 5.38% 08/01/22 4.1
Bankrate, Inc. 6.13% 08/15/18 3.9
Conduent, Inc. 10.50% 12/15/24 3.7
Crescent Communities, Inc. 8.88% 10/15/21 3.1
Century Communities, Inc. 5.88% 07/15/25 2.8
Diamondback Energy, Inc. 5.38% 05/31/25 2.6
Total As % Of Net Assets 39.8%

This is presented as supplemental information.

Sector Allocation1
As Of June 30, 2017

High Yield
Composite
BofA ML U.S.
High YieldIndex
Corporate Bonds 87.8% 100.0%
Financial Services 19.7 3.8
Energy 9.5 13.5
Technology & Electronics 9.1 6.1
Healthcare 6.5 10.0
Retail 6.3 4.9
Basic Industry 5.8 12.2
Media 4.7 11.4
Telecom 4.6 10.2
Banking 4.5 3.4
Real Estate 3.6 0.7
Transportation 3.6 0.9
Leisure 3.5 4.5
Consumer Goods 3.1 2.6
Services 2.9 5.1
Insurance 0.4 0.8
Capital Goods 0.0 5.5
Utility 0.0 2.4
Automotive 0.0 2.1
Securitized 6.9 0.0
Cash & Other2 5.3 0.0

This is presented as supplemental information.

Portfolio Characteristics
As Of June 30, 2017

Number of Issues 64
Number of Issuers 61
Option-Adjusted Spread 363
Effective Duration 3.74
Spread Duration 3.58
Weighted Average Maturity (bonds only) 6.73
Yield to Maturity (%) 5.87
Current Yield (%) 6.1

This is presented as supplemental information.

Since Inception Risk Statistics3
As Of June 30, 2017

Standard Deviation (%) 5.72
Beta (%)4 0.87
Sharpe Ratio 1.59

This is presented as supplemental information.

Credit Quality5
As Of June 30, 2017

Quality Rating % of Portfolio
Investment Grade 10.8%
BB 40.3
B 39.6
CCC & Below 3.1
Not Rated 6.2

This is presented as supplemental information.

This is presented as supplemental information.

1 BofA Merrill Lynch is licensing the BofA Merrill Lynch indices “as is,” makes no warranties regarding same, does not guarantee the suitability, quality, accuracy, timeliness, and/or completeness of the BofA Merrill Lynch indices or any data included in, related to, or derived therefrom, assumes no liability in connection with their use, and does not sponsor, endorse, or recommend Diamond Hill Capital Management, Inc., or any of its products or services.

2 Cash & Other may include cash, treasuries, money market funds, and short duration fixed income funds.

3 Source: eVestment Analytics.

4 Relative to the BofA ML U.S. High Yield Index.

5 Investment Grade is a Bond Quality Rating of AAA, AA, A or BBB. Security quality ratings are derived from underlying portfolio securities by using the middle rating of Standard & Poor’s, Moody’s, and Fitch. If only two of Standard & Poor’s, Moody’s, and Fitch rates a security the higher of the two is selected. If only one of Standard & Poor’s, Moody’s, and Fitch rates a security the available rating is used. For securities that are not rated by Standard & Poor’s, Moody’s, or Fitch a rating from a secondary Nationally Recognized Statistical Rating Organization (“NRSRO”) may be used. Ratings by any agency represent an opinion only, not a recommendation to buy or sell. Securities that are not rated by any agencies are reflected as Not Rated “NR”.

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