Diamond Hill Capital Management Launches High Yield Strategy and Renames Strategic Income Strategy

COLUMBUS, Ohio – February 29, 2016 – Diamond Hill Capital Management, Inc., a subsidiary of Diamond Hill Investment Group, Inc. (NASDAQ: DHIL), announced the launch of the Diamond Hill High Yield strategy, which is now available to investors. Additionally, the firm announced that the Diamond Hill Strategic Income Fund, which is in its fourteenth year, has been renamed the Diamond Hill Corporate Credit Fund to better reflect its investment strategy and objectives.

Portfolio Manager Bill Zox said, “The addition of my co-portfolio manager, John McClain, in 2014 and the continued development of Diamond Hill’s extensive research team have been a great benefit to the Corporate Credit strategy and gave us the bandwidth to launch the new High Yield strategy. Both strategies incorporate our unique and durable structural advantages— independence from benchmark constraints, commitment to always being nimble in the secondary corporate bond market and selective in the new issue market, concentration in our best ideas, and our long-term time horizon.”

“Since I joined Diamond Hill in mid-2014, volatility and illiquidity in the corporate bond market have been elevated,” added Portfolio Manager John McClain. “We believe we are uniquely positioned to take advantage of these conditions for the long-term benefit of shareholders of both strategies.”

The Diamond Hill Corporate Credit strategy (formerly Strategic Income) invests at least 80% of its net assets in investment grade or below-investment grade corporate bonds. The objective is high current income, preservation of capital and total return over a five-year time horizon. There are no changes to the mutual fund tickers or CUSIPs.

The new Diamond Hill High Yield strategy is a natural extension of our longstanding capabilities in the corporate bond market. The High Yield strategy invests primarily in below-investment grade (high yield) corporate bonds. The objective is high current income with the opportunity for capital appreciation. The Diamond Hill High Yield Fund is currently available through Pershing, Schwab and NFS, and we are working to make it available on additional platforms.

Our primary goal for the Diamond Hill Corporate Credit strategy is to generate a total return between inflation plus 3% and 7% nominal, each measured over rolling five-year periods. At any point in time, the portfolio managers have the flexibility to determine the appropriate place on the risk-reward spectrum to achieve this goal while minimizing the risk of a permanent loss of capital and longer-term downside volatility.

In contrast, the general risk-reward parameters of the Diamond Hill High Yield strategy are dictated by the high yield market at any point in time. Our primary goal for this strategy is to outperform peers over rolling five-year periods. A secondary goal is to generate a total return of at least inflation plus 4% over rolling five-year periods.

An investor should consider the Fund’s investment objectives, risks, and charges and expenses carefully before investing or sending any money. This and other information about the Fund can be found in the Fund’s prospectus or summary prospectus which can be obtained at www.diamond-hill.com or by calling 888-226-5595. Please read the prospectus or summary prospectus carefully before investing. The Diamond Hill Funds are distributed by BHIL Distributors, LLC (Member FINRA/SIPC). Diamond Hill Capital Management, Inc., a registered investment adviser, serves as Investment Adviser to the Diamond Hill Funds and is paid a fee for its services. Diamond Hill Funds are not FDIC insured, may lose value, and have no bank guarantee.

Risk Disclosure: The Corporate Credit Fund and High Yield Fund invest in fixed income securities; the value of fixed-income securities varies inversely with interest rates; that is, as interest rates rise, the market value of fixed-income securities will decline. Lower quality debt (ie: “High Yield”) securities involve greater risk of default or price changes due to potential changes in the issuer’s credit quality.

The Bank of America Merrill Lynch U.S. Corporate & High Yield Index is comprised of U.S. dollar denominated investment grade and below investment grade corporate debt publicly issued in the U.S. domestic market. The Bank of America Merrill Lynch U.S. High Yield Index tracks the performance of U.S. dollar denominated below investment grade corporate debt publicly issued in the U.S. domestic market.

The inception date of the High Yield Fund (“Fund”) (12/4/14) reflects that of the Diamond Hill High Yield Fund, L.P., (“High Yield Partnership”) a private fund managed with full investment authority by the Fund’s investment adviser. The Fund is managed in all material respects in a manner equivalent to the management of the High Yield Partnership. The Fund’s objectives, policies, guidelines and restrictions are in all material respects equivalent to the High Yield Partnership, and the Fund was created for reasons unrelated to the establishment of a performance record. The assets of the High Yield Partnership were converted into the Fund prior to commencement of operation of the Fund. The High Yield Partnership was not registered under the Investment Company Act of 1940 and therefore was not subject to certain investment restrictions imposed by the 1940 Act.

Investment Grade is a Bond Quality Rating of AAA, AA, A or BBB. Security quality ratings are derived from underlying portfolio securities as rated by Standard & Poor’s. For securities that are not rated by Standard & Poor’s, but are rated by Moody’s, the Moody’s rating will be used. Diamond Hill does not calculate a rating for securities that are not rated by Standard & Poor’s or Moody’s. The Standard & Poor’s and Moody’s ratings represent an opinion only, not a recommendation to buy or sell. Unrated securities by both Standard & Poor’s and Moody’s will show in the “NR” or “Not Rated” category.

CCC credit exposure includes the ratings CCC+, CCC, CCC- by Standard & Poor’s; Caa1, Caa2, Caa3 by Moody’s; and CCC by Fitch.

Duration measures the interest rate risk of the Fund. It is an estimate of the approximate percentage change in the Fund’s net asset value resulting from a one percentage point change in yield.

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