Diamond Hill Corporate Credit Fund Receives Morningstar Analyst Rating of Silver
COLUMBUS, OHIO, May 29, 2020 – Diamond Hill Capital Management, an independent active asset manager and a subsidiary of Diamond Hill Investment Group, Inc. (NASDAQ: DHIL), today announced that its Corporate Credit Fund I and Y share classes (DHSTX and DSIYX) have received a Morningstar Analyst Rating of Silver as of May 20, 2020, upgraded from Bronze. The Fund, with $1.2 billion in assets, also has an overall 5-star rating from Morningstar, a leading provider of independent investment research. The Overall Morningstar Rating™ is based on 621 high yield bond funds as of March 31, 2020.
The Morningstar Analyst Rating for Funds is a forward-looking, qualitative rating that Morningstar’s manager-research analysts assign based on their assessment of a fund’s investment merits. Only 21 of the 240 funds in Morningstar’s U.S. High Yield Bond category have received a Bronze, Silver or Gold medal as of May 20, 2020.
In its analysis, Morningstar called the Corporate Credit Fund “one of a kind,” citing the Diamond Hill portfolio management team’s high conviction, benchmark-agnostic approach and strong performance on an absolute and volatility-adjusted basis.
According to Morningstar’s May 20, 2020 analyst report:
“The team’s investment approach stands out relative to its category peers. The managers seek absolute nominal gains between inflation plus 3% and 7% measured over rolling five-year periods while minimizing downside volatility. To do so, they tend to hold concentrated positions in their best ideas while relying on thorough fundamental research and their valuation discipline to limit risk.
The managers mitigated losses in 2020 by entering the market turmoil with over 18% in dry powder and a higher credit-quality profile because they were concerned by tight spreads and high overall valuations. Similarly, the strategy outperformed its typical peer and its benchmark by 200-plus basis points during the last quarter of 2018 thanks to the managers’ attention to valuations prior to that sell-off. Overall, investors have been well-served on the managers’ watch.”
William (Bill) Zox, CFA, was named a portfolio manager on the Corporate Credit Fund in 2006 and became lead manager in 2008. In 2015, John McClain, CFA, became co-portfolio manager. Suken Patel, CFA, is associate portfolio manager and Douglas Gimple is senior portfolio specialist. The Fund includes both investment grade and high yield corporate bonds. Since early 2010, the Fund has been largely focused on the high yield portion of the market.
“We are proud to continue to be a Morningstar Medalist with a Silver Rating from its analysts and are gratified that our team’s hard work is benefiting our clients,” said Zox. “As always, we are focused on delivering risk-adjusted returns to investors over a complete market cycle by holding up better during down markets and capturing a fair share of the upside in strong markets.”
Other Morningstar Medalists from Diamond Hill are: Large Cap Fund (DHLAX, DHLCX, DHLRX, DHLYX), Mid Cap Fund (DHPAX, DHPIX, DHPYX) and Small-Mid Cap Fund (DHMAX, DHMCX, DHMIX, DFMYX) with a Gold rating; Small Cap Fund (DHSIX, DHSCX, DHSYX) with a Silver rating; and Long-Short Fund (DHAYX, DHFCX, DHLSX) with a Bronze rating. According to Morningstar, if a fund receives a Gold, Silver, or Bronze Medalist rating, Morningstar expects it to perform better than similar funds over a full market cycle of at least five years.
About Diamond Hill Capital Management
Based in Columbus, Ohio, Diamond Hill is an independent active asset manager with significant employee ownership and $19.5 billion in assets under management as of April 30, 2020. Investment strategies include long-only U.S. and international equity, alternative long-short equity, and fixed income. Diamond Hill invests on behalf of institutions and individuals by providing strategies that deliver lasting value through a shared commitment to its intrinsic value investment philosophy, long-term perspective, disciplined approach and alignment with client interests.
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.
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.
Read the Diamond Hill Corporate Credit Fund Morningstar Analyst Report