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 September 30, 2017

Energen Corp. 7.13% 02/15/28 8.9%
Popular, Inc. 7.00% 07/01/19 6.0
Cimpress N.V. 7.00% 04/01/22 4.1
Nationstar Mortgage Capital Corp. 6.50% 06/01/22 4.1
Alliance Data Systems Co. 5.38% 08/01/22 3.6
Arch Merger Sub, Inc. 8.50% 09/15/25 3.0
Conduent, Inc. 10.50% 12/15/24 2.8
Bankrate, Inc. 6.13% 08/15/18 2.8
Pilgrim's Pride Corp. 5.88% 09/30/27 2.7
Century Communities, Inc. 5.88% 07/15/25 2.6
Total As % Of Net Assets 40.6%

This is presented as supplemental information.

Sector Allocation1
As Of September 30, 2017

High Yield
Composite
ICE BofAML U.S.
High Yield Index
Corporate Bonds 91.0% 100.0%
Financial Services 19.1 3.8
Energy 11.9 13.9
Retail 9.5 4.8
Basic Industry 7.3 12.1
Telecom 6.6 9.7
Healthcare 6.3 9.8
Banking 6.0 3.3
Media 5.9 11.5
Technology & Electronics 5.6 6.1
Consumer Goods 3.6 2.5
Real Estate 3.0 0.6
Leisure 2.5 4.4
Services 1.6 5.3
Transportation 1.3 0.9
Insurance 0.7 1.0
Capital Goods 0.0 5.4
Utility 0.0 2.5
Automotive 0.0 2.3
Securitized 6.3 0.0
Cash & Other2 2.6 0.0

This is presented as supplemental information.

Portfolio Characteristics
As Of September 30, 2017

Number of Issues 68
Number of Issuers 62
Option-Adjusted Spread 382
Effective Duration 3.73
Spread Duration 3.57
Weighted Average Maturity (bonds only) 6.91
Yield to Maturity (%) 6.29
Current Yield (%) 5.76

This is presented as supplemental information.

Since Inception Risk Statistics3
As Of September 30, 2017

Standard Deviation (%) 5.45
Beta (%)4 0.87
Sharpe Ratio 1.63

This is presented as supplemental information.

Credit Quality5
As Of September 30, 2017

Quality Rating % of Portfolio
Investment Grade 4.1%
BB 37.0
B 43.5
CCC & Below 5.5
Not Rated 10.0

This is presented as supplemental information.

This is presented as supplemental information.

1 ICE BofAML is licensing the ICE BofAML indices “as is,” makes no warranties regarding same, does not guarantee the suitability, quality, accuracy, timeliness, and/or completeness of the ICE BofAML 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 ICE BofAML 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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