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Total Net Assets

$337M
as of 12/31/2020

Inception

July 5, 2016
DHRAX (Investor)
DHRIX (Class I)
DHRYX (Class Y)

Status

Open

Investment Strategy

  • Identify opportunities with a bottom-up, intrinsic value-focused approach to active investment management and disciplined risk control.
  • Perform risk/reward analysis to evaluate credit risk, interest rate risk, prepayment risk, and security structure.
  • Invest in securities we believe offer attractive prospects for income and/or capital appreciation relative to the risk borne.

Team

Mark Jackson, CFA

Portfolio Manager

Henry Song, CFA

Portfolio Manager

Douglas Gimple

Senior Portfolio Specialist

Monthly

As of 3/4/2021 Period and Annualized Total Returns as of 2/28/2021 Expense Ratio
NAVYTD Return Since Inception
(7/5/2016)
3-YR 1-YR 3MO. Feb. Total
Investor (DHRAX) 10.45 -2.32 3.42 5.42 1.14 -1.82 -1.42 0.76
Class I (DHRIX) 10.45 -2.28 3.73 5.73 1.47 -1.65 -1.31 0.47
Class Y (DHRYX) 10.46 -2.26 3.84 5.84 1.57 -1.62 -1.30 0.35
Benchmark
Bloomberg Barclays U.S. Aggregate Index 2.98 5.32 1.38 -2.02 -1.44
Swipe or scroll right for more data

Quarterly

As of 3/4/2021 Period and Annualized Total Returns as of 12/31/2020 Expense Ratio
NAVYTD Return Since Inception
(7/5/2016)
3-YR 1-YR 3MO. Total
Investor (DHRAX) 10.45 -2.32 3.96 5.46 7.60 0.15 0.76
Class I (DHRIX) 10.45 -2.28 4.27 5.77 7.94 0.23 0.47
Class Y (DHRYX) 10.46 -2.26 4.38 5.92 8.04 0.25 0.35
Benchmark
Bloomberg Barclays U.S. Aggregate Index 3.59 5.34 7.51 0.67
Swipe or scroll right for more data

Calendar Year Returns

Year Class I (DHRIX) Bloomberg Barclays U.S. Aggregate Index
2020 7.94 7.51
2019 7.93 8.72
2018 1.59 0.01
2017 4.17 3.54

Morningstar Ratings (Class I Shares)

Category

Intermediate Core Bond

Fee Level

Below Average

Overall Rating

    

Statistics

Portfolio Characteristics1 as of December 31, 2020

Management Fee 0.30%
Distribution Frequency Monthly
Portfolio Turnover (12 months trailing) 28%
30 Day SEC Yield
Investor 1.44%
Class I 1.94%
Class Y 1.93%

Portfolio Statistics2 as of December 31, 2020

Core Bond Fund Bloomberg Barclays U.S. Aggregate Index
Number of Holdings 734 11,984
Effective Duration 5.92 6.22
Weighted Average Life 7.88 8.28
Convexity 0.33 0.34
Option-Adjusted Spread 119 42

Since Inception Risk Statistics2,3 as of December 31, 2020 (Class I Shares)

Core Bond Fund
Standard Deviation 3.47%
Beta 1.02%
Sharpe Ratio 0.85
R-Squared 89.24%
Information Ratio 0.48

Portfolio

Portfolio Guidelines

The 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 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.

Sector Allocation4 as of December 31, 2020

Core Bond Fund Bloomberg Barclays U.S. Aggregate Index
Agency RMBS/CMBS 31.4 27.8
Treasury 18.9 37.0
Asset-Backed Securities 18.6 0.3
Corporate Credit 15.7 27.4
Non-Agency RMBS/CMBS 13.6 1.2
Agency 0.4 1.7
Non-Corporate Credit (includes covered) 0.0 4.6
Cash & Other 1.5 0.0

Duration Breakdown as of December 31, 2020

Core Bond Fund Bloomberg Barclays U.S. Aggregate Index
Less than one 19.5 10.3
1-3 20.8 36.1
3-5 16.9 16.4
5-7 10.6 10.9
7-10 15.4 7.3
10-20 10.5 14.4
20+ 6.3 4.6

Credit Quality5 as of December 31, 2020

Quality Rating Core Bond Fund
AAA 59.3
AA 7.7
A 15.2
BBB 16.1
BB 0.2
Not Rated 1.6

Distributions

Income Short-Term Long-Term Record Date Pay Date Reinvestment NAV
Investor (DHRAX) 0.0180 02/24/21 02/26/21 10.43
Investor (DHRAX) 0.0230 01/27/21 01/29/21 10.69
Class I (DHRIX) 0.0200 02/24/21 02/26/21 10.43
Class I (DHRIX) 0.0260 01/27/21 01/29/21 10.68
Class Y (DHRYX) 0.0210 02/24/21 02/26/21 10.44
Class Y (DHRYX) 0.0270 01/27/21 01/29/21 10.69
Investor (DHRAX) 0.0140 12/29/20 12/31/20 10.74
Investor (DHRAX) 0.0140 11/25/20 11/30/20 10.76
Investor (DHRAX) 0.0180 10/28/20 10/30/20 10.71
Investor (DHRAX) 0.0180 09/28/20 09/30/20 10.79
Investor (DHRAX) 0.0200 08/27/20 08/31/20 10.75
Investor (DHRAX) 0.0220 07/29/20 07/31/20 10.82
Investor (DHRAX) 0.0180 06/26/20 06/30/20 10.70
Investor (DHRAX) 0.0190 05/27/20 05/29/20 10.55
Investor (DHRAX) 0.0180 04/28/20 04/30/20 10.51
Investor (DHRAX) 0.0200 03/27/20 03/31/20 10.29
Investor (DHRAX) 0.0190 02/26/20 02/28/20 10.54
Investor (DHRAX) 0.0200 01/29/20 01/31/20 10.38
Class I (DHRIX) 0.0170 12/29/20 12/31/20 10.74
Class I (DHRIX) 0.0170 11/25/20 11/30/20 10.75
Class I (DHRIX) 0.0210 10/28/20 10/30/20 10.71
Class I (DHRIX) 0.0210 09/28/20 09/30/20 10.79
Class I (DHRIX) 0.0230 08/27/20 08/31/20 10.74
Class I (DHRIX) 0.0250 07/29/20 07/31/20 10.82
Class I (DHRIX) 0.0210 06/26/20 06/30/20 10.70
Class I (DHRIX) 0.0210 05/27/20 05/29/20 10.55
Class I (DHRIX) 0.0210 04/28/20 04/30/20 10.51
Class I (DHRIX) 0.0230 03/27/20 03/31/20 10.29
Class I (DHRIX) 0.0210 02/26/20 02/28/20 10.54
Class I (DHRIX) 0.0220 01/29/20 01/31/20 10.38
Class Y (DHRYX) 0.0180 12/29/20 12/31/20 10.75
Class Y (DHRYX) 0.0170 11/25/20 11/30/20 10.76
Class Y (DHRYX) 0.0220 10/28/20 10/30/20 10.72
Class Y (DHRYX) 0.0220 09/28/20 09/30/20 10.80
Class Y (DHRYX) 0.0240 08/27/20 08/31/20 10.75
Class Y (DHRYX) 0.0260 07/29/20 07/31/20 10.83
Class Y (DHRYX) 0.0220 06/26/20 06/30/20 10.71
Class Y (DHRYX) 0.0220 05/27/20 05/29/20 10.56
Class Y (DHRYX) 0.0220 04/28/20 04/30/20 10.52
Class Y (DHRYX) 0.0240 03/27/20 03/31/20 10.30
Class Y (DHRYX) 0.0220 02/26/20 02/28/20 10.54
Class Y (DHRYX) 0.0230 01/29/20 01/31/20 10.39
Investor (DHRAX) 0.0200 12/27/19 12/31/19 10.21
Investor (DHRAX) 0.0190 11/26/19 11/29/19 10.26
Investor (DHRAX) 0.0200 10/29/19 10/31/19 10.25
Investor (DHRAX) 0.0190 09/26/19 09/30/19 10.28
Investor (DHRAX) 0.0190 08/28/19 08/30/19 10.37
Investor (DHRAX) 0.0200 07/29/19 07/31/19 10.12
Investor (DHRAX) 0.0220 06/26/19 06/28/19 10.12
Investor (DHRAX) 0.0230 05/29/19 05/31/19 10.01
Investor (DHRAX) 0.0220 04/26/19 04/30/19 9.86
Investor (DHRAX) 0.0240 03/27/19 03/29/19 9.90
Investor (DHRAX) 0.0210 02/26/19 02/28/19 9.75
Investor (DHRAX) 0.0250 01/29/19 01/31/19 9.73
Class I (DHRIX) 0.0220 12/27/19 12/31/19 10.21
Class I (DHRIX) 0.0210 11/26/19 11/29/19 10.26
Class I (DHRIX) 0.0230 10/29/19 10/31/19 10.24
Class I (DHRIX) 0.0210 09/26/19 09/30/19 10.28
Class I (DHRIX) 0.0220 08/28/19 08/30/19 10.37
Class I (DHRIX) 0.0220 07/29/19 07/31/19 10.12
Class I (DHRIX) 0.0250 06/26/19 06/28/19 10.12
Class I (DHRIX) 0.0250 05/29/19 05/31/19 10.01
Class I (DHRIX) 0.0240 04/26/19 04/30/19 9.86
Class I (DHRIX) 0.0260 03/27/19 03/29/19 9.90
Class I (DHRIX) 0.0230 02/26/19 02/28/19 9.75
Class I (DHRIX) 0.0280 01/29/19 01/31/19 9.72
Class Y (DHRYX) 0.0230 12/27/19 12/31/19 10.22
Class Y (DHRYX) 0.0220 11/26/19 11/29/19 10.26
Class Y (DHRYX) 0.0240 10/29/19 10/31/19 10.25
Class Y (DHRYX) 0.0220 09/26/19 09/30/19 10.29
Class Y (DHRYX) 0.0230 08/28/19 08/30/19 10.38
Class Y (DHRYX) 0.0230 07/29/19 07/31/19 10.13
Class Y (DHRYX) 0.0250 06/26/19 06/28/19 10.13
Class Y (DHRYX) 0.0260 05/29/19 05/31/19 10.01
Class Y (DHRYX) 0.0250 04/26/19 04/30/19 9.86
Class Y (DHRYX) 0.0270 03/27/19 03/29/19 9.91
Class Y (DHRYX) 0.0240 02/26/19 02/28/19 9.75
Class Y (DHRYX) 0.0290 01/29/19 01/31/19 9.73
Investor (DHRAX) 0.0230 12/27/18 12/31/18 9.70
Investor (DHRAX) 0.0230 11/28/18 11/30/18 9.55
Investor (DHRAX) 0.0240 10/29/18 10/31/18 9.53
Investor (DHRAX) 0.0200 09/26/18 09/28/18 9.58
Investor (DHRAX) 0.0230 08/29/18 08/31/18 9.66
Investor (DHRAX) 0.0230 07/27/18 07/31/18 9.60
Investor (DHRAX) 0.0210 06/27/18 06/29/18 9.64
Investor (DHRAX) 0.0220 05/29/18 05/31/18 9.66
Investor (DHRAX) 0.0210 04/26/18 04/30/18 9.61
Investor (DHRAX) 0.0220 03/27/18 03/29/18 9.69
Investor (DHRAX) 0.0200 02/26/18 02/28/18 9.64
Investor (DHRAX) 0.0190 01/29/18 01/31/18 9.73
Class I (DHRIX) 0.0250 12/27/18 12/31/18 9.69
Class I (DHRIX) 0.0260 11/28/18 11/30/18 9.55
Class I (DHRIX) 0.0270 10/29/18 10/31/18 9.53
Class I (DHRIX) 0.0220 09/26/18 09/28/18 9.58
Class I (DHRIX) 0.0270 08/29/18 08/31/18 9.66
Class I (DHRIX) 0.0250 07/27/18 07/31/18 9.61
Class I (DHRIX) 0.0230 06/27/18 06/29/18 9.64
Class I (DHRIX) 0.0250 05/29/18 05/31/18 9.67
Class I (DHRIX) 0.0230 04/26/18 04/30/18 9.61
Class I (DHRIX) 0.0240 03/27/18 03/29/18 9.69
Class I (DHRIX) 0.0220 02/26/18 02/28/18 9.64
Class I (DHRIX) 0.0210 01/29/18 01/31/18 9.73
Class Y (DHRYX) 0.0260 12/27/18 12/31/18 9.70
Class Y (DHRYX) 0.0260 11/28/18 11/30/18 9.56
Class Y (DHRYX) 0.0280 10/29/18 10/31/18 9.53
Class Y (DHRYX) 0.0230 09/26/18 09/28/18 9.58
Class Y (DHRYX) 0.0280 08/29/18 08/31/18 9.66
Class Y (DHRYX) 0.0260 07/27/18 07/31/18 9.61
Class Y (DHRYX) 0.0240 06/27/18 06/29/18 9.65
Class Y (DHRYX) 0.0260 05/29/18 05/31/18 9.67
Class Y (DHRYX) 0.0240 04/26/18 04/30/18 9.62
Class Y (DHRYX) 0.0250 03/27/18 03/29/18 9.69
Class Y (DHRYX) 0.0220 02/26/18 02/28/18 9.65
Class Y (DHRYX) 0.0220 01/29/18 01/31/18 9.73
Investor (DHRAX) 0.0180 12/27/17 12/29/17 9.84
Investor (DHRAX) 0.0190 11/28/17 11/30/17 9.85
Investor (DHRAX) 0.0210 10/27/17 10/31/17 9.86
Investor (DHRAX) 0.0180 09/27/17 09/29/17 9.87
Investor (DHRAX) 0.0190 08/29/17 08/31/17 9.94
Investor (DHRAX) 0.0180 07/27/17 07/31/17 9.88
Investor (DHRAX) 0.0190 06/28/17 06/30/17 9.87
Investor (DHRAX) 0.0180 05/26/17 05/31/17 9.87
Investor (DHRAX) 0.0180 04/26/17 04/28/17 9.81
Investor (DHRAX) 0.0170 03/29/17 03/31/17 9.74
Investor (DHRAX) 0.0180 02/24/17 02/28/17 9.76
Investor (DHRAX) 0.0180 01/27/17 01/31/17 9.69
Class I (DHRIX) 0.0210 12/27/17 12/29/17 9.84
Class I (DHRIX) 0.0220 11/28/17 11/30/17 9.85
Class I (DHRIX) 0.0230 10/27/17 10/31/17 9.86
Class I (DHRIX) 0.0210 09/27/17 09/29/17 9.87
Class I (DHRIX) 0.0220 08/29/17 08/31/17 9.94
Class I (DHRIX) 0.0210 07/27/17 07/31/17 9.88
Class I (DHRIX) 0.0210 06/28/17 06/30/17 9.87
Class I (DHRIX) 0.0200 05/26/17 05/31/17 9.87
Class I (DHRIX) 0.0200 04/26/17 04/28/17 9.81
Class I (DHRIX) 0.0200 03/29/17 03/31/17 9.74
Class I (DHRIX) 0.0200 02/24/17 02/28/17 9.76
Class I (DHRIX) 0.0200 01/27/17 01/31/17 9.69
Class Y (DHRYX) 0.0210 12/27/17 12/29/17 9.84
Class Y (DHRYX) 0.0220 11/28/17 11/30/17 9.85
Class Y (DHRYX) 0.0240 10/27/17 10/31/17 9.87
Class Y (DHRYX) 0.0210 09/27/17 09/29/17 9.88
Class Y (DHRYX) 0.0220 08/29/17 08/31/17 9.94
Class Y (DHRYX) 0.0210 07/27/17 07/31/17 9.88
Class Y (DHRYX) 0.0220 06/28/17 06/30/17 9.87
Class Y (DHRYX) 0.0210 05/26/17 05/31/17 9.87
Class Y (DHRYX) 0.0210 04/26/17 04/28/17 9.81
Class Y (DHRYX) 0.0200 03/29/17 03/31/17 9.74
Class Y (DHRYX) 0.0210 02/24/17 02/28/17 9.76
Class Y (DHRYX) 0.0200 01/27/17 01/31/17 9.69
Investor (DHRAX) 0.0170 12/28/16 12/30/16 9.69
Investor (DHRAX) 0.0150 11/28/16 11/30/16 9.75
Investor (DHRAX) 0.0150 10/27/16 10/31/16 9.95
Investor (DHRAX) 0.0260 09/28/16 09/30/16 10.06
Class I (DHRIX) 0.0190 12/28/16 12/30/16 9.69
Class I (DHRIX) 0.0160 11/28/16 11/30/16 9.76
Class I (DHRIX) 0.0180 10/27/16 10/31/16 9.95
Class I (DHRIX) 0.0280 09/28/16 09/30/16 10.06
Class I (DHRIX) 0.0060 08/29/16 08/31/16 10.05
Class Y (DHRYX) 0.0200 12/28/16 12/30/16 9.69
Class Y (DHRYX) 0.0160 11/28/16 11/30/16 9.76
Class Y (DHRYX) 0.0190 10/27/16 10/31/16 9.95
Class Y (DHRYX) 0.0290 09/28/16 09/30/16 10.06
Class Y (DHRYX) 0.0060 08/29/16 08/31/16 10.05

Documents

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.

Risk Disclosure:  The Short Duration Securitized Bond Fund, Core Bond Fund, 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 Short Duration Securitized Bond Fund and Core Bond Fund may also invest in asset-backed, mortgage-related, and mortgage-backed securities. 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. 

Fund holdings, sector allocations, and portfolio statistics subject to change without notice.

Analytics provided by The Yield Book® Software.

1 The 30-day SEC Yield represents net investment income earned by the fund over the previous 30-day period, expressed as an annual percentage rate based on the Fund’s share price at the end of the 30-day period.

2 Definitions: Effective 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 interest rates. Weighted Average Life is the average number of years each dollar of unpaid principal remains outstanding. Convexity is an estimate of the approximate change in the Fund’s effective duration resulting from a one percentage point change in interest rates. Option-Adjusted Spread is the difference between the portfolio yield and the risk-free rate, accounting for embedded options. Source: The Yield Book. Standard Deviation measures the volatility of the Fund’s returns. Sharpe Ratio uses the Fund’s standard deviation and average excess return over the risk-free ratio to determine reward per unit of risk. Beta measures the Fund’s sensitivity to market movements. R-squared represents the percentage of the portfolio’s movements that can be explained by general market movements. Information Ratio uses the Fund’s standard deviation and excess return over a benchmark to determine excess return per unit of risk. Statistics for less than one year are not annualized.

Since inception risk statistics are calculated using monthly returns beginning on the first day of the Fund’s first full month of performance.

3 Cash & Other may include cash, money market funds, and short duration fixed income funds. RMBS/CMBS stands for Residential Mortgage-Backed Securities/Commercial Mortgage-Backed Securities.

4 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”.

The Bloomberg Barclays U.S. Aggregate Index is an unmanaged index representing the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through, and asset-backed securities.

Index data source: Bloomberg Index Services Limited. See diamond-hill.com/disclosures for a full copy of the disclaimer. These indices do not incur fees and expenses (which would lower the return) and are not available for direct investment.

The Overall Morningstar RatingTM is based on 380 Intermediate Core Bond funds as of 12/31/20. The Fund’s Class I rating was 4 stars among 380 Intermediate Core Bond funds for the 3-year period ended 12/31/20, respectively.

The Morningstar RatingTM 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 Morningstar Broad Fee Level data point compares the fund's prospectus adjusted operating net expense ratio to the prospectus adjusted operating net expense ratio of all the other funds within its Morningstar Category.

© 2021 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.