Diamond Hill Core Bond and Short Duration Total Return Funds Celebrate Three-Year Anniversaries
COLUMBUS, Ohio – August 6, 2019 – Diamond Hill Capital Management is celebrating the three-year anniversaries of the Diamond Hill Core Bond and Short Duration Total Return Funds, which have been managed by portfolio managers Henry Song and Mark Jackson since inception. Both Funds also received a 5-star Morningstar Rating as of July 31, 2019.
“Henry and Mark, with the support of the broader Diamond Hill team, have achieved our objectives and much more for each of these funds to the great benefit of our clients,” said Bill Zox, Chief Investment Officer of Fixed Income. “Along with our Corporate Credit and High Yield Funds, more clients are taking advantage of the unique value proposition of Diamond Hill fixed income.”
The Diamond Hill Core Bond Fund invests in a diversified portfolio of investment grade, fixed income securities and may invest a significant portion of its assets in mortgage-related and mortgage-backed securities. The Fund will typically maintain an average portfolio duration within 20% of the duration of the Bloomberg Barclays U.S. Aggregate Index. This Fund is designed to potentially reduce portfolio volatility through bottom-up, security selection.
The Diamond Hill Short Duration Total Return Fund generally invests at least 80% of its assets in a diversified portfolio of investment grade, fixed income securities and may invest a significant portion or all of its assets in asset-backed, mortgage-related, and mortgage-backed securities. The Fund may invest up to 20% of its assets in below-investment grade securities at the time of purchase and will typically maintain an average portfolio duration of less than three. The Fund can be used as a longer-term cash alternative or as a tool to reduce overall duration while maintaining or increasing current yield in a longer duration portfolio.
|Period and Annualized Total Returns as of 7/31/19||Since Incep.
Short Duration Total Return Fund (Class I)
Bloomberg Barclays U.S. 1-3 Yr. Gov./Credit Index
Core Bond Fund
Bloomberg Barclays U.S. Aggregate Index
Performance is not guaranteed. The performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The Fund’s current performance may be lower or higher than the performance data quoted. Investors may obtain performance information current to the most recent month-end, within 7 business days, at diamond-hill.com.
1 The Morningstar Rating™ for funds, or “star rating,” is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating™ for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. The Short Duration Total Return Fund Overall Morningstar Rating™ is based on 478 short-term bond funds as of 7/31/19. The Fund’s Class I rating was 5 stars among 478 funds for the 3-year period ended 7/31/19. The Core Bond Fund Overall Morningstar Rating™ is based on 343 intermediate core bond funds as of 7/31/19. The Fund’s Class I rating was 5 stars among 343 funds for the 3-year period ended 7/31/19. © 2019 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
Risk Disclosure: 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 (i.e.: “High Yield”) securities involve greater risk of default or price changes due to potential changes in the issuer’s credit quality. The value of investments in mortgage-related and asset-backed securities will be influenced by the factors affecting the housing market and the assets underlying such securities. The securities may decline in value, face valuation difficulties, become more volatile and/or become illiquid. They are also subject to prepayment risk, which occurs when mortgage holders refinance or otherwise repay their loans sooner than expected, creating an early return of principal to holders of the loans.
The Bloomberg Barclays U.S. 1-3 Year Government/Credit Index is an unmanaged index of investment grade government and corporate bonds with maturities of one to three years. The Bloomberg Barclays U.S. Aggregate Index is an unmanaged index representing U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through, and asset-backed securities. These indices does not incur fees and expenses (which would lower the return) and are not available for direct investment.
An investor should consider the Fund’s investment objectives, risks, charges, and expenses carefully before investing. The prospectus or summary prospectus contain this and other important information about the Fund(s) and are available at 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 Foreside Financial Services, LLC (Member FINRA). 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.