UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-08061
Diamond Hill Funds
(Exact name of registrant as specified in charter)
325 John H. McConnell Boulevard, Suite 200, Columbus, Ohio 43215
(Address of principal executive offices) (Zip code)
Thomas E. Line
325 John H. McConnell Boulevard, Suite 200, Columbus, Ohio 43215
(Name and address of agent for service)
Registrant’s telephone number, including area code: 614-255-3333
Date of fiscal year end: December 31
Date of reporting period: December 31, 2023
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
(a)
Annual Report
December 31, 2023
Small Cap Fund |
Select Fund |
Small-Mid Cap Fund |
Long-Short Fund |
Mid Cap Fund |
International Fund |
Large Cap Fund |
Short Duration Securitized Bond Fund |
Large Cap Concentrated Fund |
Core Bond Fund |
This material must be preceded or accompanied by a current prospectus.
Not FDIC insured | No bank guarantee | May lose value
Table of Contents |
Our Shared Investment Principles |
1 |
Management Discussion of Fund Performance (Unaudited) |
|
Diamond Hill Small Cap Fund |
4 |
Diamond Hill Small-Mid Cap Fund |
6 |
Diamond Hill Mid Cap Fund |
8 |
Diamond Hill Large Cap Fund |
10 |
Diamond Hill Large Cap Concentrated Fund |
12 |
Diamond Hill Select Fund |
14 |
Diamond Hill Long-Short Fund |
16 |
Diamond Hill International Fund |
18 |
Diamond Hill Short Duration Securitized Bond Fund |
20 |
Diamond Hill Core Bond Fund |
22 |
Financial Statements |
|
Schedules of Investments |
24 |
Statements of Assets & Liabilities |
92 |
Statements of Operations |
94 |
Statements of Changes in Net Assets |
96 |
Financial Highlights |
110 |
Notes to Financial Statements |
130 |
Report of Independent Registered Public Accounting Firm |
145 |
Other Items |
147 |
Schedule of Shareholder Expenses |
151 |
Management of the Trust |
153 |
Cautionary Statement: At Diamond Hill, we pledge that, “we will communicate with our clients about our investment performance in a manner that will allow them to properly assess whether we are deserving of their trust.” Our views and opinions regarding the investment prospects of our portfolio holdings and Funds are “forward looking statements” which may or may not be accurate over the long term. While we believe we have a reasonable basis for our opinions, actual results may differ materially from those we anticipate. Information provided in this report should not be considered a recommendation to purchase or sell any particular security.
You can identify forward looking statements by words like “believe,” “expect,” “anticipate,” or similar expressions when discussing prospects for particular portfolio holdings and/or one of the Funds. We cannot assure future results. You should not place undue reliance on forward-looking statements, which speak only as of the date of this report. We disclaim any obligation to update or alter any forward-looking statements, whether as a result of new information, future events, or otherwise.
This material is not authorized for distribution to prospective investors unless preceded or accompanied by a Prospectus. Carefully consider the Funds’ investment objectives, risks, and expenses. This and other important information are contained in the Funds’ prospectus and summary prospectus, which are available at diamond-hill.com or by calling 888.226.5595. Read 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. Not FDIC insured | No bank guarantee | May lose value
Our Shared Investment Principles
Our shared investment principles
Active, fundamental approach
An active, research-driven approach that capitalizes on our intellectual curiosity and unique insights is essential to deliver better returns than benchmarks or peers.
Ownership
Investing with an ownership mentality requires deep due diligence to build the conviction needed to invest over the long term.
Long term
Focusing on the long term allows us to look beyond near-term noise, allowing clients to realize the benefits of our deep, disciplined research process.
Valuation discipline
We believe the best way to compound returns is to take an ownership stake in an investment at a discount to its underlying value and have the discipline to wait for that value to be realized.
Strategic capacity management
Prudent capacity management protects our ability to generate competitive long-term investment results for our clients.
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 1 |
Management Discussion of Fund Performance (Unaudited)
Investing Environment
Global Equities
Global markets were mostly positive in Q4 2023, concluding the year in the black across most major indices, with the notable exception of China, which was down for the quarter and the year. Global stocks were up 22% in 2023 (as measured by the MSCI ACWI Index), with non-US developed markets (as measured by the MSCI EAFE Index) rising 18% and emerging markets up 10% (as measured by the MSCI EM Index).
US stocks outpaced their developed market counterparts, rising +26% (as measured by the Russell 3000 Index). For the year, small-cap stocks were up nearly +17% and mid-cap stocks delivered just over +17%. Large-cap stocks were up a resounding +27% for the year (all returns as measured by the respective Russell indices).
These positive returns all came against a macroeconomic backdrop the major headline of which was global monetary policy — particularly in the developed world, where US Federal Reserve (Fed) chief Jerome Powell indicated rate hikes were likely at an end and 2024 may even bring some cuts. However, this announcement seemed to lead the US down a slightly different path from the other major economies, with European Central Bank president Christine Lagarde and UK Bank of England governor Andrew Bailey striking more muted notes, indicating the ECB and BOE would remain vigilant, even as they held rates amid moderating inflation.
Further complicating matters is a still-mixed macroeconomic backdrop in many countries — across many European economies and the US, inflation, while having moderated from a year ago, remains elevated; GDP growth has been generally tepid, even if positive; manufacturing activity has moderated or declined; retail sales are sluggish in many places. Meanwhile, China’s economy remains pressured — its government is struggling to sufficiently spur activity to lift it from the doldrums, which helped drag its market down -10% for the year. And Japan faces ongoing questions regarding how (perhaps) it will wind down its years-long ultra-loose monetary policy and how (and, likewise, whether) it will affect meaningful corporate governance change.
Most of 2023’s major macro-related questions remain unanswered — and all persist against a fraught geopolitical backdrop that currently includes two major hot conflicts and growing tensions in other areas, including between China and Taiwan. However, the investing environment is never certain — on the contrary, uncertainty often contributes to investors’ ability to identify and capitalize on compelling investing opportunities. As we start another year, we believe this environment is a positive one for long term-focused investors willing and able to do the research necessary to identify high-quality companies trading at attractive valuation discounts.
US Fixed Income
After three consecutive years of negative returns, fixed income investors finally got relief in 2023 but the road to that performance was shaky. As the third quarter came to a close, the Bloomberg US Aggregate Bond Index had lost -1.21% through September’s month-end, and market participants were anxious about the final quarter of the year, especially after the pain of 2022, when the index lost more than -13%.
2 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
A tough October, during which the index lost -1.58%, reinforced the angst felt around the halls of fixed income managers around the country. The 10-year Treasury breached the 5% level, if only on an intraday basis, in the middle of October after climbing steadily higher since the beginning of Q4, fueled by expectations of rates remaining “higher for longer” as well as geopolitical tensions. However, declining inflation in the year’s final months fueled the outlook for a soft landing and pushed rates lower as the market ramped up expectations for an aggressive easing cycle in 2024.
The final impetus for lower rates came from the Fed itself as the dot plot (released after each quarterly Federal Open Market Committee (FOMC) meeting) signaled an additional 25 basis point (bps) rate cut expected for 2024. Nevertheless, a substantial disconnect remains between market expectations and those of the FOMC. Amazingly, the 10-year Treasury yield finished 2023 at nearly the same level as it began the year, 3.88%.
While October’s performance was a setback for the overall fixed income market (as measured by the Bloomberg US Aggregate Bond Index), November and December delivered some of the best returns in decades. November generated the best monthly performance for the index (+4.53%) since May 1985 (+5.23%), and December’s +3.83% return was the best since February 1986 (+3.94%). The combined performance for November and December was the best two-month return for the Bloomberg US Aggregate Bond Index since October 1982 (+9.56%, during which the 10-year Treasury dropped from 12.81% to 10.71%).
Q4 2023 delivered the best quarterly performance for the index since Q2 1989 (+7.97%), generating a return of +6.82%. Coming into the final two months of the year, the index was down -2.77% but finished 2023 with a return of +5.53%, the best calendar year return since 2020 (+7.51%).
The Bloomberg US Corporate Bond Index returned more than +4% in December, pushing 2023 calendar year performance past +8%. Returns for 2023 were back-end loaded, considering the corporate index returned +8.50% in Q4, compared to the full-year return of +8.52%.
The Bloomberg US Securitized Index ended the year with a 5.08% return, the sector’s best return since 2019 (+6.44%). Subsectors within the securitized market were strong, with the residential mortgage-backed securities (RMBS) sector delivering +5.05% for the year, commercial mortgage-backed securities (CMBS) up +5.42% and asset-backed securities up +5.54%. The exuberance generated by the potential for aggressive rate cuts in 2024, as well as the overall risk-on atmosphere in the final months of 2023, pushed valuations on securitized assets higher, much like with the rest of the market.
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 3 |
Diamond Hill Small Cap Fund |
Performance Discussion
Top contributors within the portfolio during the period included: regional bank Live Oak Bancshares, Inc.; transportation infrastructure company FTAI Aviation Ltd.; Las Vegas locals market casino operator Red Rock Resorts, Inc. Class A; fabrication technology company ESAB Corporation; and mortgage-servicing company Mr. Cooper Group, Inc.
Bottom contributors during the period included: regional bank First Interstate BancSystem, Inc.; business process management company WNS Holdings Ltd.; specialty ingredients provider Ashland, Inc.; regional bank BOK Financial Corporation; and diversified foods manufacturer and retailer Lancaster Colony Corporation.
Fund Changes
During the period, we identified new investment opportunities and added positions to the portfolio, including: high-performance super-alloys producer Haynes International, Inc.; supplier of advanced material aerostructures and electrical components Ducommun, Inc.; towing and recovery equipment manufacturer Miller Industries, Inc.; diversified financials company First Western Financial, Inc.; and molded products producer Core Molding Technologies, Inc.
Throughout the year, we exited positions that reached our estimates of intrinsic value and those where changing circumstances altered our long-term thesis. Larger sales included: regional bank First Interstate BancSystem; specialty chemicals producer Chase Corporation; timberland real estate investment trust Rayonier, Inc; nutrition company BellRing Brands, Inc.; and entertainment company Live Nation Entertainment, Inc. Current and future portfolio holdings are subject to change and risk.
4 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Small Cap Fund |
AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2023
|
Inception |
One |
Three |
Five |
Ten |
Expense |
PERFORMANCE AT NAV |
||||||
Investor Class |
12/29/2000 |
22.94% |
11.44% |
10.80% |
6.07% |
1.26% |
Class I |
4/29/2005 |
23.22 |
11.74 |
11.11 |
6.36 |
0.97 |
Class Y |
12/30/2011 |
23.47 |
11.91 |
11.27 |
6.50 |
0.85 |
BENCHMARK |
||||||
Russell 2000 Index |
|
16.93 |
2.22 |
9.97 |
7.16 |
— |
GROWTH OF $10,000
Comparison of the change in value of a $10,000 Investment in the Diamond Hill Small Cap Fund Class I(A) and the Russell 2000 Index.
|
(A) |
The growth of $10,000 chart represents the performance of Class I shares only, which will vary from the performance of Investor Class and Class Y shares based on the difference in loads and fees paid by shareholders in the different classes. |
|
|
The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
|
|
The chart above represents a comparison of a hypothetical $10,000 investment and the reinvestment of dividends and capital gains in the indicated share class versus a similar investment in the Russell 2000 Index (“Index”). The Index measures the performance of roughly 2,000 US small-cap companies. The index is unmanaged, market capitalization weighted, includes net reinvested dividends, does not reflect fees or expenses (which would lower the return), and is not available for direct investment. The Fund’s performance reflects the deduction of fees for these services. |
|
|
Past performance is not indicative of future results. Investment returns and principal values 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 quoted. For current to most recent month-end performance, visit diamond-hill.com. |
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 5 |
Diamond Hill Small-Mid Cap Fund |
Performance Discussion
Top contributors within the portfolio during the period included: industrial distributor WESCO International, Inc.; fabrication technology company ESAB Corporation; Las Vegas locals market casino operator Red Rock Resorts, Inc. Class A; homebuilder NVR, Inc.; and mortgage-servicing company Mr. Cooper Group, Inc.
Bottom contributors during the period included: regional bank SVB Financial Group; regional bank First Republic Bank; propane distributor UGI Corporation; specialty ingredients provider Ashland, Inc.; and regional bank First Interstate BancSystem, Inc.
Fund Changes
During the period, we identified new investment opportunities and added positions to the portfolio including: residential real estate investment trust Mid-America Apartment Communities, Inc.; professional employer organization Insperity, Inc.; electronic components and enterprise computing solutions provider Arrow Electronics, Inc.; cloud-based web platforms designer and developer GoDaddy, Inc.; and dental products manufacturer Envista Holdings Corporation.
Throughout the year, we exited positions that reached our estimates of intrinsic value and those where changing circumstances altered our long-term thesis. Larger sales included: regional bank First Interstate BancSystem, Inc.; regional bank SVB Financial Group; natural gas distribution utility South Jersey Industries, Inc.; nutrition company BellRing Brands, Inc.; and regional bank First Republic Bank. Current and future portfolio holdings are subject to change and risk.
6 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Small-Mid Cap Fund |
AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2023
|
Inception |
One |
Three |
Five |
Ten |
Expense |
PERFORMANCE AT NAV |
||||||
Investor Class |
12/30/2005 |
11.12% |
7.78% |
10.00% |
6.85% |
1.21% |
Class I |
12/30/2005 |
11.47 |
8.08 |
10.32 |
7.15 |
0.92 |
Class Y |
12/30/2011 |
11.62 |
8.20 |
10.45 |
7.29 |
0.80 |
BENCHMARK |
||||||
Russell 2500 Index |
|
17.42 |
4.24 |
11.67 |
8.36 |
— |
GROWTH OF $10,000
Comparison of the change in value of a $10,000 Investment in the Diamond Hill Small-Mid Cap Fund Class I(A) and the Russell 2500 Index.
(A) The growth of $10,000 chart represents the performance of Class I shares only, which will vary from the performance of Investor Class and Class Y shares based on the difference in loads and fees paid by shareholders in the different classes.
|
|
The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
|
|
The chart above represents a comparison of a hypothetical $10,000 investment and the reinvestment of dividends and capital gains in the indicated share class versus a similar investment in the Russell 2500 Index (“Index”). The Index measures the performance of roughly 2,500 US small- to mid-cap companies. The index is unmanaged, market capitalization weighted, includes net reinvested dividends, does not reflect fees or expenses (which would lower the return), and is not available for direct investment. The Fund’s performance reflects the deduction of fees for these services. |
|
|
Past performance is not indicative of future results. Investment returns and principal values 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 quoted. For current to most recent month-end performance, visit diamond-hill.com. |
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 7 |
Diamond Hill Mid Cap Fund |
Performance Discussion
Top contributors within the portfolio during the period included: fabrication technology company ESAB Corporation; diversified industrial and aerospace manufacturer Parker-Hannifin Corporation; industrial distributor WESCO International, Inc.; Las Vegas locals market casino operator Red Rock Resorts, Inc. Class A; and homebuilder NVR, Inc.
Bottom contributors during the period included: regional bank SVB Financial Group; regional bank First Republic Bank; propane distributor UGI Corporation; specialty ingredients provider Ashland, Inc.; and apparel company Hanesbrands, Inc.
Fund Changes
During the period, we identified new investment opportunities and added positions to the portfolio including: auto and homeowners’ insurance provider Allstate Corporation; leading supplier of defense electronics L3Harris Technologies, Inc.; tower real estate investment trust SBA Communications Corp. Class A; plumbing and heating products provider Ferguson plc; and financial services technology company Fidelity National Information Services, Inc.
Throughout the year, we exited positions that reached our estimates of intrinsic value and those where changing circumstances altered our long-term thesis. Larger sales included: regional bank SVB Financial Group; regional bank First Republic Bank; natural gas distribution utility South Jersey Industries, Inc.; information technology services provider Cognizant Technology Solutions Corporation; and private timberlands owner Weyerhaeuser Company. Current and future portfolio holdings are subject to change and risk.
8 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Mid Cap Fund |
AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2023
|
Inception |
One |
Three |
Five |
Ten |
Expense |
PERFORMANCE AT NAV |
||||||
Investor Class |
12/31/2013 |
9.14% |
7.24% |
8.66% |
6.67% |
1.06% |
Class I |
12/31/2013 |
9.44 |
7.56 |
8.99 |
6.98 |
0.77 |
Class Y |
12/31/2013 |
9.65 |
7.70 |
9.11 |
7.10 |
0.65 |
BENCHMARK |
||||||
Russell Midcap Index |
|
17.23 |
5.92 |
12.68 |
9.42 |
— |
GROWTH OF $10,000
Comparison of the change in value of a $10,000 Investment in the Diamond Hill Mid Cap Fund Class I(A) and the Russell Midcap Index.
|
(A) |
The growth of $10,000 chart represents the performance of Class I shares only, which will vary from the performance of Investor Class and Class Y shares based on the difference in loads and fees paid by shareholders in the different classes. |
|
|
The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
|
|
The chart above represents a comparison of a hypothetical $10,000 investment and the reinvestment of dividends and capital gains in the indicated share class versus a similar investment in the Russell Midcap Index (“Index”). The Index measures the performance of roughly 800 US mid-cap companies. The index is unmanaged, market capitalization weighted, includes net reinvested dividends, does not reflect fees or expenses (which would lower the return), and is not available for direct investment. The Fund’s performance reflects the deduction of fees for these services. |
|
|
Past performance is not indicative of future results. Investment returns and principal values 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 quoted. For current to most recent month-end performance, visit diamond-hill.com. |
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 9 |
Diamond Hill Large Cap Fund |
Performance Discussion
Top contributors within the portfolio during the period included: private equity firm KKR & Co., Inc.; global e-commerce company Amazon.com, Inc.; homebuilder NVR, Inc.; media and technology company Alphabet, Inc. Class A; and diversified industrial and aerospace manufacturer Parker-Hannifin Corporation.
Bottom contributors during the period included: regional bank First Republic Bank; biopharmaceutical company Pfizer, Inc.; regional bank Truist Financial Corporation; integrated oil and gas company Chevron Corporation; and utility operator Dominion Energy, Inc.
Fund Changes
During the period, we identified new investment opportunities and added positions to the portfolio including: auto and homeowners’ insurance provider Allstate Corporation; US-based mass retailer Target Corporation; diagnostics and drug development company Laboratory Corporation of America Holdings; storage space real estate investment trust Extra Space Storage, Inc.; and designer and manufacturer of industrial powertrain solutions, power transmission components and other specialty electronics Regal Rexnord Corporation.
Throughout the year, we exited positions that reached our estimates of intrinsic value and those where changing circumstances altered our long-term thesis. Larger sales included: online travel services provider Booking Holdings, Inc.; industrial gas company Linde plc; mobile network carrier Verizon Communications, Inc.; private timberlands owner Weyerhaeuser Company; and diversified media and entertainment conglomerate Walt Disney Company. Current and future portfolio holdings are subject to change and risk.
10 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Large Cap Fund |
AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2023
|
Inception |
One |
Three |
Five |
Ten |
Expense |
PERFORMANCE AT NAV |
||||||
Investor Class |
6/29/2001 |
13.31% |
7.06% |
11.93% |
9.01% |
0.96% |
Class I |
1/31/2005 |
13.66 |
7.38 |
12.26 |
9.33 |
0.67 |
Class Y |
12/30/2011 |
13.78 |
7.50 |
12.39 |
9.45 |
0.55 |
BENCHMARK |
||||||
Russell 1000 Index |
|
26.53 |
8.97 |
15.52 |
11.80 |
— |
GROWTH OF $10,000
Comparison of the change in value of a $10,000 Investment in the Diamond Hill Large Cap Fund Class I(A) and the Russell 1000 Index.
|
(A) |
The growth of $10,000 chart represents the performance of Class I shares only, which will vary from the performance of Investor Class and Class Y shares based on the difference in loads and fees paid by shareholders in the different classes. |
|
|
The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
|
|
The chart above represents a comparison of a hypothetical $10,000 investment and the reinvestment of dividends and capital gains in the indicated share class versus a similar investment in the Russell 1000 Index (“Index”). The Index measures the performance of roughly 1,000 US large-cap companies. The index is unmanaged, market capitalization weighted, includes net reinvested dividends, does not reflect fees or expenses (which would lower the return), and is not available for direct investment. The Fund’s performance reflects the deduction of fees for these services. |
|
|
Past performance is not indicative of future results. Investment returns and principal values 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 quoted. For current to most recent month-end performance, visit diamond-hill.com. |
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 11 |
Diamond Hill Large Cap Concentrated Fund |
Performance Discussion
Top contributors within the portfolio during the period included: private equity firm KKR & Co., Inc.; global e-commerce company Amazon.com, Inc.; homebuilder NVR, Inc.; diversified industrial and aerospace manufacturer Parker-Hannifin Corporation; and media and technology company Alphabet, Inc. Class A.
Bottom contributors during the period included: regional bank Truist Financial Corporation; biopharmaceutical company Pfizer, Inc.; health insurance company Humana, Inc.; health care facilities operator HCA Healthcare, Inc.; and consumer snack and beverage manufacturer PepsiCo, Inc.
Fund Changes
During the period, we identified new investment opportunities and added positions to the portfolio including: health care facilities operator HCA Healthcare, Inc.; auto and homeowners’ insurance company Allstate Corporation; and financial services software provider SS&C Technologies Holdings, Inc.
Throughout the year, we exited positions that reached our estimates of intrinsic value and those where changing circumstances altered our long-term thesis. Larger sales included: regional bank Truist Financial Corporation; media and technology company Alphabet, Inc. Class A; and software and information technology services provider Microsoft Corporation. Current and future portfolio holdings are subject to change and risk.
12 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Large Cap Concentrated Fund |
AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2023
|
Inception |
One |
Since |
Expense |
PERFORMANCE AT NAV |
||||
Investor Class |
2/26/2021 |
16.84% |
7.44% |
0.97% |
Class I |
2/26/2021 |
17.21 |
7.76 |
0.68 |
Class Y |
2/26/2021 |
17.32 |
7.87 |
0.56 |
BENCHMARK |
||||
Russell 1000 Index |
|
26.53 |
8.74 |
— |
GROWTH OF $10,000
Comparison of the change in value of a $10,000 Investment in the Diamond Hill Large Cap Concentrated Fund Class I(A) and the Russell 1000 Index.
|
(A) |
The growth of $10,000 chart represents the performance of Class I shares only, which will vary from the performance of Investor Class and Class Y shares based on the difference in loads and fees paid by shareholders in the different classes. |
|
|
The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
|
|
The chart above represents a comparison of a hypothetical $10,000 investment and the reinvestment of dividends and capital gains in the indicated share class versus a similar investment in the Russell 1000 Index (“Index”). The Index measures the performance of roughly 1,000 US large-cap companies. The index is unmanaged, market capitalization weighted, includes net reinvested dividends, does not reflect fees or expenses (which would lower the return), and is not available for direct investment. The Fund’s performance reflects the deduction of fees for these services. |
|
|
Past performance is not indicative of future results. Investment returns and principal values 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 quoted. For current to most recent month-end performance, visit diamond-hill.com. |
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 13 |
Diamond Hill Select Fund |
Performance Discussion
Top contributors within the portfolio during the period included: custom printing services provider Cimpress plc; mortgage-servicing company Mr. Cooper Group, Inc.; industrial distributor WESCO International, Inc.; global e-commerce company Amazon.com, Inc.; and Las Vegas locals market casino operator Red Rock Resorts, Inc. Class A.
Bottom contributors during the period included: multinational food company SunOpta, Inc.; regional bank First Republic Bank; regional bank Truist Financial Corporation; specialty ingredients provider Ashland, Inc.; information technology services company Rimini Street, Inc.
Fund Changes
During the period, we identified new investment opportunities and added positions to the portfolio including: auto and homeowners’ insurance provider Allstate Corporation; US-based mass retailer Target Corporation; US-based freight railroad operator Union Pacific Corporation; banking and financial services company Bank of America Corporation; and global automotive seating manufacturer Lear Corporation.
Throughout the year, we exited positions that reached our estimates of intrinsic value and those where changing circumstances altered our long-term thesis. Larger sales included: media and technology company Alphabet, Inc. Class A; regional bank Truist Financial Corporation; software and information technology services provider Microsoft Corporation; railroad equipment and services provider Westinghouse Air Brake Technologies Corporation; and diversified foods manufacturer and retailer Lancaster Colony Corporation. Current and future portfolio holdings are subject to change and risk.
14 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Select Fund |
AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2023
|
Inception |
One |
Three |
Five |
Ten |
Expense |
PERFORMANCE AT NAV |
||||||
Investor Class |
12/30/2005 |
30.19% |
12.62% |
16.32% |
10.39% |
1.16% |
Class I |
12/30/2005 |
30.56 |
12.98 |
16.66 |
10.71 |
0.87 |
Class Y |
12/30/2011 |
30.69 |
13.11 |
16.80 |
10.83 |
0.75 |
BENCHMARK |
||||||
Russell 3000 Index |
|
25.96 |
8.54 |
15.16 |
11.48 |
— |
GROWTH OF $10,000
Comparison of the change in value of a $10,000 Investment in the Diamond Hill Select Fund Class I(A) and the Russell 3000 Index.
|
(A) |
The growth of $10,000 chart represents the performance of Class I shares only, which will vary from the performance of Investor Class and Class Y shares based on the difference in loads and fees paid by shareholders in the different classes. |
|
|
The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
|
|
The chart above represents a comparison of a hypothetical $10,000 investment and the reinvestment of dividends and capital gains in the indicated share class versus a similar investment in the Russell 3000 Index (“Index”). The Index measures the performance of roughly 3,000 of the largest US companies. The index is unmanaged, market capitalization weighted, includes net reinvested dividends, does not reflect fees or expenses (which would lower the return), and is not available for direct investment. The Fund’s performance reflects the deduction of fees for these services. |
|
|
Past performance is not indicative of future results. Investment returns and principal values 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 quoted. For current to most recent month-end performance, visit diamond-hill.com. |
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 15 |
Diamond Hill Long-Short Fund |
Performance Discussion
Top contributors within the portfolio during the period included: multinational technology company Meta Platforms, Inc. (long); media and technology company Alphabet, Inc. Class A (long); private equity firm KKR & Co., Inc. (long); software and information technology services provider Microsoft Corporation (long); and diversified industrial and aerospace manufacturer Parker-Hannifin Corporation (long).
Bottom contributors during the period included: regional bank First. Republic Bank (long); regional bank SVB Financial Group (long); cosmetics company e.l.f. Beauty, Inc. (short); homecare, cleaning and maintenance products developer WD-40 Company (short); and biopharmaceutical company Pfizer, Inc. (long).
Fund Changes
During the period, we identified new investment opportunities and added positions to the portfolio including: US-based mass retailer Target Corporation (long); global automotive seating manufacturer Lear Corporation (long); diagnostics and drug development company Laboratory Corporation of America Holdings (long); auto and homeowners’ insurance provider Allstate Corporation (long); and integrated circuits and semiconductor devices manufacturer Taiwan Semiconductor Manufacturing Company Ltd. (long).
Throughout the year, we exited positions that reached our estimates of intrinsic value and those where changing circumstances altered our long-term thesis. Larger sales included: information technology services provider Cognizant Technology Solutions Corporation (long); online travel services provider Booking Holdings, Inc. (long); regional bank First Republic Bank (long); regional bank SVB Financial Group (long); and cybersecurity company NetScout Systems, Inc. (short). Current and future portfolio holdings are subject to change and risk.
16 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Long-Short Fund |
AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2023
|
Inception |
One |
Three |
Five |
Ten |
Expense |
PERFORMANCE AT NAV |
||||||
Investor Class |
6/30/2000 |
12.12% |
6.79% |
8.25% |
5.40% |
1.78% |
Class I |
1/31/2005 |
12.40 |
7.11 |
8.57 |
5.71 |
1.49 |
Class Y |
12/30/2011 |
12.55 |
7.23 |
8.69 |
5.83 |
1.37 |
BENCHMARK |
||||||
Russell 1000 Index |
|
26.53 |
8.97 |
15.52 |
11.80 |
— |
60% Russell 1000 Index/40% Bloomberg US Treasury Bills 1-3 Month Index * |
|
17.82 |
6.60 |
10.34 |
7.77 |
— |
GROWTH OF $10,000
Comparison of the change in value of a $10,000 Investment in the Diamond Hill Long-Short Fund Class I(A), the Russell 1000 Index and the Blended Index (60% Russell 1000 Index and 40% Bloomberg US Treasury Bills 1-3 Month Index *)
|
(A) |
The growth of $10,000 chart represents the performance of Class I shares only, which will vary from the performance of Investor Class and Class Y shares based on the difference in loads and fees paid by shareholders in the different classes. |
|
|
The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
|
|
The chart above represents a comparison of a hypothetical $10,000 investment and the reinvestment of dividends and capital gains in the indicated share class versus a similar investment in the Russell 1000 Index and the blended index. The Russell 1000 Index measures the performance of roughly 1,000 US large-cap companies. The Blended Index represents a 60/40 weighted blend of the Russell 1000® Index and the Bloomberg US Treasury Bills 1-3 Month Index. The Bloomberg US Treasury Bills 1-3 Month Index measures the performance of US Treasury bills with time to maturity between 1 and 3 months. The index(es) are unmanaged, market capitalization weighted, do not reflect fees or expenses (which would lower the return) and are not available for direct investment. |
|
* |
The Fund’s secondary benchmark is the 60% Russell 1000 Index/40% Bloomberg US Treasury Bills 1-3 Month Index. The Fund’s secondary benchmark is a blended index representing a 60% weighting of the Russell 1000 index and a 40% weighting of the Bloomberg US Treasury Bills 1-3 Month Index. The Fund’s secondary benchmark was selected as the Adviser replaced the vendor of the treasury component of the blended benchmark due to a change in the licensing agreements. The Fund’s performance reflects the deduction of fees for these services. |
|
|
Past performance is not indicative of future results. Investment returns and principal values 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 quoted. For current to most recent month-end performance, visit diamond-hill.com. |
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 17 |
Diamond Hill International Fund |
Performance Discussion
Top contributors within the portfolio during the period included: Swedish digital music-streaming services provider Spotify Technology SA; property and casualty insurance company Fairfax Financial Holdings Ltd.; Latin American beverage company Fomento Economico Mexicano, SAB de CV; Korea-based consumer electronics manufacturer Samsung Electronics Co., Ltd.; UK-based kitchens supplier Howden Joinery Group plc.
Bottom contributors during the period included: Italian specialty loans manager doValue SpA.; Japanese pharmaceuticals company Astellas Pharma, Inc.; UK-based spirits maker Diageo plc; UK-based specialty insurance company Beazley plc; and Netherlands-based biopharmaceutical company uniQure NV.
Fund Changes
During the period, we identified new investment opportunities and added positions to the portfolio including: Swedish mining equipment and services provider Epiroc AB; oil and gas exploration and production company Japan Petroleum Exploration Co., Ltd.; diversified Japanese trading house Mitsubishi Corporation; global mass retailer Walmart, Inc.; and Switzerland-based metals and mining company Glencore plc.
Throughout the year, we exited positions that reached our estimates of intrinsic value and those where changing circumstances altered our long-term thesis. Larger sales included: Japanese video game company Nintendo Co., Ltd.; lubricant manufacturer FUCHS SE; copper-focused mining company Freeport-McMoRan; Italian specialty loans manager doValue SpA.; and German enterprise application software products provider SAP SE. Current and future portfolio holdings are subject to change and risk.
18 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill International Fund |
AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2023
|
Inception |
One |
Three |
Five |
Since |
Expense |
PERFORMANCE AT NAV |
||||||
Investor Class |
6/28/2019 |
17.88% |
4.52% |
8.42% |
8.22% |
1.14% |
Class I |
6/28/2019 |
18.12 |
4.82 |
8.72 |
8.53 |
0.85 |
Class Y |
6/28/2019 |
18.30 |
4.96 |
8.84 |
8.65 |
0.73 |
BENCHMARK |
||||||
MSCI ACWI ex USA Index |
|
15.62 |
1.55 |
7.08 |
6.33 |
— |
GROWTH OF $10,000
Comparison of the change in value of a $10,000 Investment in the Diamond Hill International Fund Class I(A) and the MSCI ACWI ex USA Index.
|
(A) |
The growth of $10,000 chart represents the performance of Class I shares only, which will vary from the performance of Investor Class and Class Y shares based on the difference in loads and fees paid by shareholders in the different classes. |
|
|
The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
|
|
The chart above represents the comparison of a hypothetical $10,000 investment and the reinvestment of dividends and capital gains in the indicated share class versus a similar investment in the MSCI ACWI ex USA Index. |
|
|
The index is unmanaged, market capitalization weighted, include net reinvested dividends, do not reflect fees or expenses (which would lower return), and are not available for direct investment. The Fund’s performance reflects the deduction of fees for these services. |
|
* |
The quoted performance of the Fund reflects the past performance of Diamond Hill International Fund L.P. (the “International Partnership”), a private fund managed with full investment authority by the Fund’s Adviser. The Fund is managed in all material respects in a manner equivalent to the management of the predecessor unregistered fund. The performance of the International Partnership has been restated to reflect the net expenses and maximum applicable sales charge of the Fund for its initial years of investment operation. The International 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. If the International Partnership had been registered under the 1940 Act, its performance may have been adversely affected. Performance is measured from December 30, 2016, the inception of the International Partnership and is not the performance of the Fund. The assets of the International Partnership were converted, based on their value on June 28, 2019, into assets of the Fund. The International Partnership’s past performance is not necessarily an indication of how the Fund will perform in the future either before or after taxes. |
|
|
Past performance is not indicative of future results. Investment returns and principal values 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 quoted. For current to most recent month-end performance, visit diamond-hill.com. |
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 19 |
Diamond Hill Short Duration Securitized Bond Fund |
Performance Discussion
The portfolio outperformed the Bloomberg US 1-3 Year Government/Credit Index in 2023. After a challenging 2022 in which the financial markets experienced a reset in interest rates and felt the subsequent pain, 2023 brought stability to fixed income markets. A considerable yield advantage over the index as well as strong security selection fueled the portfolio’s performance through the year.
The portfolio’s underweight to both the corporate and Treasury sectors detracted from performance as both sectors had a historically strong fourth quarter which dominated the year’s performance. The portfolio’s overweight to the securitized sector was more than enough to offset the impact of the Treasury and corporate sectors, as tighter spreads and significant carry pushed this sector to double-digit returns. Within the securitized market, non-agency commercial mortgage-backed securities (CMBS) and unsecured consumer asset-backed securities (ABS) delivered the best absolute and relative returns during the calendar year. The cash allocation was a slight drag on performance during the year despite money market funds now generating attractive returns relative to the past several years.
Fund Changes
The portfolio’s allocation to Treasury debt was reduced slightly during the year and its allocation to corporate debt was relatively steady. A slight decrease in exposure to ABS and non-agency RMBS/CMBS reflects opportunities found in other areas of the market, such as agency RMBS. The portfolio’s yield held fairly steady throughout the year, with the peaks and valleys one would associate with a more reactive interest rate environment. The portfolio’s duration shortened slightly year over year as attractive yield levels could be found without need of extension.
20 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Short Duration Securitized Bond Fund |
AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2023
|
Inception |
One |
Three |
Five |
Since |
Expense |
PERFORMANCE AT NAV |
||||||
Investor Class |
7/5/2016 |
8.38% |
2.29% |
2.83% |
2.97% |
0.81% |
Class I |
7/5/2016 |
8.91 |
2.63 |
3.16 |
3.28 |
0.52 |
Class Y |
7/5/2016 |
9.03 |
2.75 |
3.27 |
3.40 |
0.40 |
BENCHMARK |
||||||
Bloomberg US 1-3 Yr. Government/Credit Index |
|
4.61 |
0.09 |
1.51 |
1.27 |
— |
GROWTH OF $10,000
Comparison of the change in value of a $10,000 Investment in the Diamond Hill Short Duration Securitized Bond Fund Class I(A) and Bloomberg US 1-3 Yr. Government/Credit Index.
|
(A) |
The growth of $10,000 chart represents the performance of Class I shares only, which will vary from the performance of Investor Class and Class Y shares based on the difference in loads and fees paid by shareholders in the different classes. |
|
|
The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
|
|
The chart above represents a comparison of a hypothetical $10,000 investment and the reinvestment of dividends and capital gains in the indicated share class versus a similar investment in the Bloomberg US 1-3 Yr. Government/Credit Index (“Index”). The Index measures the performance of investment grade government and corporate bonds with maturities of one to three years. The index is unmanaged, includes net reinvested dividends, does not reflect fees or expenses (which would lower the return), and is not available for direct investment. The Fund’s performance reflects the deduction of fees for these services. |
|
|
Past performance is not indicative of future results. Investment returns and principal values 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 quoted. For current to most recent month-end performance, visit diamond-hill.com. |
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 21 |
Diamond Hill Core Bond Fund |
Performance Discussion
The portfolio has always been managed with a goal of generating excess returns relative to the Bloomberg US Aggregate Bond Index while working to protect against downside. The broad market rally in Q4 2023 was the main driver for the fixed income market avoiding an unprecedented third consecutive year of negative performance. In fact, the best quarterly performance for the Bloomberg US Aggregate Bond Index since 1989 brought 2023 calendar year returns not only into positive territory but helped the sector to deliver its best calendar year performance since 2020.
Despite an underweight position relative to the benchmark in the best performing sector of 2023 (corporate), the portfolio outperformed the Bloomberg US Aggregate Bond Index through security selection and sector allocation. Specifically, the securitized sector was the main driver of excess return, fueled by non-agency CMBS and credit card ABS. A longer duration posture in the Treasury sector helped to offset the relative underweight to the benchmark.
Duration positioning was a slight detractor during the year as the strong rally in Q4 2023 meant that a slightly shorter duration posture relative to the benchmark was detrimental on a relative basis. Portfolio duration is managed to a range of plus-or-minus 10% of the benchmark’s duration, and the portfolio had shifted to a more neutral position relative to previous years.
Fund Changes
Sector changes to the portfolio are based on an investment philosophy focused on bottom-up security selection. The duration positioning (sensitivity to interest rate fluctuations) relative to the benchmark moved closer to neutral throughout the year, finishing in the mid-range of the +/- 10% range (versus the benchmark) due to expectations for a cessation in rate hikes from the Fed.
The strategy experienced significant net inflows throughout the year and the deployment of those assets resulted in increases in various sectors such as agency RMBS and Treasury, the latter to hold a steady underweight relative to the benchmark. The allocation of cash to these sectors resulted in a decline in exposure to other sectors, not through active liquidation but due to incremental dollars being deployed in attractive sectors. The portfolio’s allocation to investment grade credit was down slightly year over year.
22 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Core Bond Fund |
AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2023
|
Inception |
One |
Three |
Five |
Since |
Expense |
PERFORMANCE AT NAV |
|
|||||
Investor Class |
7/5/2016 |
6.20% |
(2.65)% |
1.33% |
1.26% |
0.76% |
Class I |
7/5/2016 |
6.62 |
(2.37) |
1.63 |
1.56 |
0.47 |
Class Y |
7/5/2016 |
6.62 |
(2.28) |
1.75 |
1.66 |
0.35 |
BENCHMARK |
|
|||||
Bloomberg US Aggregate Bond Index |
|
5.53 |
(3.31) |
1.10 |
0.77 |
— |
GROWTH OF $10,000
Comparison of the change in value of a $10,000 Investment in the Diamond Hill Core Bond Fund Class I(A) and Bloomberg US Aggregate Bond Index.
|
(A) |
The growth of $10,000 chart represents the performance of Class I shares only, which will vary from the performance of Investor Class and Class Y shares based on the difference in loads and fees paid by shareholders in the different classes. |
|
|
The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
|
|
The chart above represents a comparison of a hypothetical $10,000 investment and the reinvestment of dividends and capital gains in the indicated share class versus a similar investment in the Bloomberg US Aggregate Bond Index (“Index”). The Index measures the performance of investment grade, fixed-rate taxable bond market and includes government and corporate bonds, agency mortgage-backed, asset-backed and commercial mortgage-backed securities (agency and non-agency). The index is unmanaged, includes net reinvested dividends, does not reflect fees or expenses (which would lower the return), and is not available for direct investment. The Fund’s performance reflects the deduction of fees for these services. |
|
|
Past performance is not indicative of future results. Investment returns and principal values 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 quoted. For current to most recent month-end performance, visit diamond-hill.com. |
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 23 |
Diamond Hill Small Cap Fund
Schedule of Investments
December 31, 2023
|
Shares |
Fair |
||||||
Common Stocks — 99.1% |
||||||||
Consumer Discretionary — 10.5% |
||||||||
Century Communities, Inc. (a) |
31,960 | $ | 2,912,834 | |||||
Green Brick Partners, Inc. (b) |
16,022 | 832,183 | ||||||
Johnson Outdoors, Inc., Class A |
13,036 | 696,383 | ||||||
Red Rock Resorts, Inc., Class A |
297,963 | 15,890,367 | ||||||
Rocky Brands, Inc. (a) |
96,281 | 2,905,761 | ||||||
Vail Resorts, Inc. |
5,157 | 1,100,865 | ||||||
| 24,338,393 | ||||||||
Consumer Staples — 10.3% |
||||||||
Cal-Maine Foods, Inc. |
130,346 | 7,480,557 | ||||||
Lancaster Colony Corp. |
29,083 | 4,839,120 | ||||||
Mama’s Creations, Inc. (a)(b) |
150,447 | 738,695 | ||||||
Oil-Dri Corp. of America |
79,686 | 5,345,337 | ||||||
Post Holdings, Inc. (b) |
47,821 | 4,211,117 | ||||||
Seaboard Corp. |
326 | 1,163,853 | ||||||
| 23,778,679 | ||||||||
Energy — 3.6% |
||||||||
Centrus Energy Corp., Class A (a)(b) |
63,270 | 3,442,521 | ||||||
Civitas Resources, Inc. (a) |
71,191 | 4,868,041 | ||||||
| 8,310,562 | ||||||||
Financials — 27.1% |
||||||||
Bank OZK |
216,160 | 10,771,253 | ||||||
BOK Financial Corp. |
60,118 | 5,149,107 | ||||||
Enstar Group Ltd. (b) |
24,765 | 7,289,578 | ||||||
First Western Financial, Inc. (a)(b) |
86,730 | 1,719,856 | ||||||
Live Oak Bancshares, Inc. |
298,650 | 13,588,575 | ||||||
Mr. Cooper Group, Inc. (b) |
142,008 | 9,247,561 | ||||||
Silvercrest Asset Management Group, Inc., Class A |
82,132 | 1,396,244 | ||||||
Triumph Financial, Inc. (b) |
116,973 | 9,378,895 | ||||||
Webster Financial Corp. |
79,361 | 4,028,364 | ||||||
| 62,569,433 | ||||||||
|
Shares |
Fair |
||||||
Health Care — 5.0% |
||||||||
Enovis Corp. (b) |
110,510 | $ | 6,190,770 | |||||
UFP Technologies, Inc. (a)(b) |
31,175 | 5,363,347 | ||||||
| 11,554,117 | ||||||||
Industrials — 27.7% |
||||||||
Allegiant Travel Co. |
85,487 | 7,062,081 | ||||||
Allient, Inc. |
130,279 | 3,935,729 | ||||||
Concrete Pumping Holdings, Inc. (b) |
560,759 | 4,598,224 | ||||||
Douglas Dynamics, Inc. |
107,414 | 3,188,047 | ||||||
Ducommun, Inc. (a)(b) |
47,811 | 2,489,041 | ||||||
Energy Recovery, Inc. (b) |
133,475 | 2,514,669 | ||||||
ESAB Corp. |
78,657 | 6,813,269 | ||||||
First Advantage Corp. |
472,043 | 7,821,752 | ||||||
FTAI Aviation Ltd. (a) |
155,599 | 7,219,794 | ||||||
Gates Industrial Corp. plc (b) |
34,588 | 464,171 | ||||||
Graham Corp. (b) |
142,629 | 2,705,672 | ||||||
Kirby Corp. (b) |
14,895 | 1,168,960 | ||||||
Miller Industries, Inc. |
43,741 | 1,849,807 | ||||||
WESCO International, Inc. |
29,389 | 5,110,159 | ||||||
WNS Holdings Ltd. — ADR (b) |
112,903 | 7,135,470 | ||||||
| 64,076,845 | ||||||||
Information Technology — 1.9% |
||||||||
Progress Software Corp. |
9,800 | 532,140 | ||||||
Rimini Street, Inc. (a)(b) |
959,187 | 3,136,541 | ||||||
Sanmina Corp. (b) |
12,542 | 644,282 | ||||||
| 4,312,963 | ||||||||
Materials — 7.3% |
||||||||
Ashland, Inc. |
55,078 | 4,643,626 | ||||||
Core Molding Technologies, Inc. (b) |
76,558 | 1,418,620 | ||||||
Haynes International, Inc. |
44,411 | 2,533,648 | ||||||
Taseko Mines Ltd. (a)(b) |
2,479,380 | 3,471,132 | ||||||
United States Lime & Minerals, Inc. |
20,945 | 4,824,681 | ||||||
| 16,891,707 | ||||||||
24 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Small Cap Fund
Schedule of Investments (Continued)
December 31, 2023
|
Shares |
Fair |
||||||
Common Stocks — 99.1% continued |
||||||||
Real Estate — 4.9% |
||||||||
CubeSmart |
26,360 | $ | 1,221,786 | |||||
Douglas Emmett, Inc. (a) |
136,161 | 1,974,334 | ||||||
Jones Lang LaSalle, Inc. (b) |
5,250 | 991,567 | ||||||
Ryman Hospitality Properties, Inc. |
63,825 | 7,024,579 | ||||||
| 11,212,266 | ||||||||
Utilities — 0.8% |
||||||||
UGI Corp. |
73,305 | 1,803,303 | ||||||
Total Common Stocks |
||||||||
(Cost $130,554,163) |
$ | 228,848,268 | ||||||
Registered Investment Companies — 4.5% |
||||||||
State Street Institutional Liquid Reserves Fund — Premier Class, 5.49% (c) |
2,405,426 | 2,406,869 | ||||||
State Street Navigator Securities Lending Portfolio I, 5.09% (c)(d) |
8,053,607 | 8,053,607 | ||||||
Total Registered Investment Companies |
||||||||
(Cost $10,460,243) |
$ | 10,460,476 | ||||||
Total Investment Securities — 103.6% |
||||||||
(Cost $141,014,406) |
$ | 239,308,744 | ||||||
Liabilities in Excess of Other Assets — (3.6)% |
(8,428,765 | ) | ||||||
Net Assets — 100.0% |
$ | 230,879,979 | ||||||
|
(a) |
All or a portion of the security is on loan. The total fair value of the securities on loan as of December 31, 2023 was $15,076,383. |
|
(b) |
Non-income producing security. |
|
(c) |
The rate shown is the 7-day effective yield as of December 31, 2023. |
|
(d) |
This security was purchased using cash collateral held from securities on loan. |
ADR — American Depositary Receipt
plc — Public Limited Company
See accompanying Notes to Financial Statements.
Diamond Hill Small-Mid Cap Fund
Schedule of Investments
December 31, 2023
|
Shares |
Fair |
||||||
Common Stocks — 96.4% |
||||||||
Communication Services — 1.2% |
||||||||
Liberty Media Corp. - Liberty Formula One - Series C (a)(b) |
296,814 | $ | 18,737,868 | |||||
Consumer Discretionary — 11.9% |
||||||||
BorgWarner, Inc. |
202,527 | 7,260,593 | ||||||
CarMax, Inc. (b) |
173,565 | 13,319,378 | ||||||
Lear Corp. |
80,740 | 11,401,295 | ||||||
NVR, Inc. (b) |
8,234 | 57,641,705 | ||||||
Red Rock Resorts, Inc., Class A (a) |
1,628,170 | 86,830,306 | ||||||
Vail Resorts, Inc. (a) |
47,256 | 10,087,738 | ||||||
Wolverine World Wide, Inc. |
757,940 | 6,738,087 | ||||||
| 193,279,102 | ||||||||
Consumer Staples — 8.9% |
||||||||
Cal-Maine Foods, Inc. (a) |
794,388 | 45,589,927 | ||||||
Lancaster Colony Corp. (a) |
219,209 | 36,474,186 | ||||||
Post Holdings, Inc. (b) |
694,934 | 61,195,888 | ||||||
| 143,260,001 | ||||||||
Energy — 3.1% |
||||||||
Civitas Resources, Inc. (a) |
201,780 | 13,797,716 | ||||||
Coterra Energy, Inc. |
1,446,281 | 36,909,091 | ||||||
| 50,706,807 | ||||||||
Financials — 18.2% |
||||||||
Bank OZK |
419,400 | 20,898,702 | ||||||
BankUnited, Inc. |
309,340 | 10,031,896 | ||||||
BOK Financial Corp. (a) |
400,459 | 34,299,313 | ||||||
Brighthouse Financial, Inc. (b) |
86,302 | 4,567,102 | ||||||
Brown & Brown, Inc. |
97,497 | 6,933,012 | ||||||
Enstar Group Ltd. (a)(b) |
60,297 | 17,748,422 | ||||||
First Horizon Corp. |
719,884 | 10,193,558 | ||||||
Live Oak Bancshares, Inc. (a) |
996,546 | 45,342,843 | ||||||
Loews Corp. |
164,302 | 11,433,776 | ||||||
Mr. Cooper Group, Inc. (b) |
709,494 | 46,202,249 | ||||||
RenaissanceRe Holdings Ltd. |
131,157 | 25,706,772 | ||||||
Stifel Financial Corp. |
189,803 | 13,124,878 | ||||||
Webster Financial Corp. |
959,816 | 48,720,260 | ||||||
| 295,202,783 | ||||||||
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 25 |
Diamond Hill Small-Mid Cap Fund
Schedule of Investments (Continued)
December 31, 2023
|
Shares |
Fair |
||||||
Common Stocks — 96.4% continued |
||||||||
Health Care — 4.0% |
||||||||
Boston Scientific Corp. (a)(b) |
186,530 | $ | 10,783,299 | |||||
Enovis Corp. (a)(b) |
715,572 | 40,086,344 | ||||||
Envista Holdings Corp. (b) |
561,244 | 13,503,531 | ||||||
| 64,373,174 | ||||||||
Industrials — 26.6% |
||||||||
Alaska Air Group, Inc. (a)(b) |
325,076 | 12,700,719 | ||||||
Allegiant Travel Co. (a) |
392,557 | 32,429,134 | ||||||
Broadridge Financial Solutions, Inc. |
40,651 | 8,363,943 | ||||||
Energy Recovery, Inc. (b) |
894,083 | 16,844,524 | ||||||
ESAB Corp. |
388,239 | 33,629,262 | ||||||
First Advantage Corp. (a) |
1,642,735 | 27,220,119 | ||||||
Fortune Brands Innovations, Inc. |
118,256 | 9,004,012 | ||||||
Gates Industrial Corp. plc (b) |
2,756,005 | 36,985,587 | ||||||
Insperity, Inc. |
137,475 | 16,114,820 | ||||||
Kirby Corp. (b) |
92,415 | 7,252,729 | ||||||
Regal Rexnord Corp. |
375,483 | 55,578,994 | ||||||
Sensata Technologies Holding plc |
490,865 | 18,441,798 | ||||||
SS&C Technologies Holdings, Inc. |
575,705 | 35,181,333 | ||||||
WESCO International, Inc. |
560,600 | 97,477,128 | ||||||
WNS Holdings Ltd. - ADR (b) |
357,980 | 22,624,336 | ||||||
| 429,848,438 | ||||||||
Information Technology — 5.5% |
||||||||
Arrow Electronics, Inc. (b) |
125,158 | 15,300,566 | ||||||
Ciena Corp. (b) |
659,104 | 29,666,271 | ||||||
GoDaddy, Inc., Class A (b) |
141,816 | 15,055,187 | ||||||
Progress Software Corp. |
210,100 | 11,408,430 | ||||||
Sanmina Corp. (b) |
340,666 | 17,500,012 | ||||||
| 88,930,466 | ||||||||
Materials — 3.3% |
||||||||
Ashland, Inc. |
631,359 | 53,229,877 | ||||||
Real Estate — 12.5% |
||||||||
CubeSmart |
1,219,784 | 56,536,988 | ||||||
Douglas Emmett, Inc. (a) |
935,426 | 13,563,677 | ||||||
|
Shares |
Fair |
||||||
Real Estate — 12.5% continued |
||||||||
Jones Lang LaSalle, Inc. (b) |
123,021 | $ | 23,234,976 | |||||
Mid-America Apartment Communities, Inc. |
131,977 | 17,745,627 | ||||||
Rayonier, Inc. |
974,645 | 32,562,890 | ||||||
Ryman Hospitality Properties, Inc. |
285,172 | 31,386,030 | ||||||
UDR, Inc. |
699,432 | 26,781,251 | ||||||
| 201,811,439 | ||||||||
Utilities — 1.2% |
||||||||
UGI Corp. |
777,839 | 19,134,839 | ||||||
Total Common Stocks |
||||||||
(Cost $1,125,460,531) |
$ | 1,558,514,794 | ||||||
Registered Investment Companies — 5.1% |
||||||||
Diamond Hill Short Duration Securitized Bond Fund - Class Y (c) |
988,435 | 9,587,821 | ||||||
State Street Institutional US Government Money Market Fund - Premier Class, 5.32% (d) |
47,848,679 | 47,848,679 | ||||||
State Street Navigator Securities Lending Portfolio I, 5.09% (d)(e) |
25,514,808 | 25,514,808 | ||||||
Total Registered Investment Companies |
||||||||
(Cost $83,226,468) |
$ | 82,951,308 | ||||||
Total Investment Securities — 101.5% |
||||||||
(Cost $1,208,686,999) |
$ | 1,641,466,102 | ||||||
Liabilities in Excess of Other Assets — (1.5)% |
(23,784,003 | ) | ||||||
Net Assets — 100.0% |
$ | 1,617,682,099 | ||||||
|
(a) |
All or a portion of the security is on loan. The total fair value of the securities on loan as of December 31, 2023 was $89,549,909. |
|
(b) |
Non-income producing security. |
|
(c) |
Affiliated fund. |
|
(d) |
The rate shown is the 7-day effective yield as of December 31, 2023. |
|
(e) |
This security was purchased using cash collateral held from securities on loan. |
ADR — American Depositary Receipt
plc — Public Limited Company
See accompanying Notes to Financial Statements.
26 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Mid Cap Fund
Schedule of Investments
December 31, 2023
|
Shares |
Fair |
||||||
Common Stocks — 96.7% |
||||||||
Communication Services — 1.2% |
||||||||
Liberty Media Corp. - Liberty Formula One - Series C (a) |
30,126 | $ | 1,901,854 | |||||
Consumer Discretionary — 11.5% |
||||||||
BorgWarner, Inc. |
16,456 | 589,948 | ||||||
CarMax, Inc. (a) |
18,063 | 1,386,155 | ||||||
Lear Corp. |
8,063 | 1,138,576 | ||||||
NVR, Inc. (a) |
856 | 5,992,385 | ||||||
Red Rock Resorts, Inc., Class A |
161,172 | 8,595,303 | ||||||
Vail Resorts, Inc. |
4,707 | 1,004,803 | ||||||
| 18,707,170 | ||||||||
Consumer Staples — 6.5% |
||||||||
Archer-Daniels-Midland Co. |
14,823 | 1,070,517 | ||||||
Lancaster Colony Corp. |
20,496 | 3,410,330 | ||||||
Post Holdings, Inc. (a) |
69,731 | 6,140,512 | ||||||
| 10,621,359 | ||||||||
Energy — 2.1% |
||||||||
Coterra Energy, Inc. |
135,086 | 3,447,395 | ||||||
Financials — 17.8% |
||||||||
Allstate Corp. (The) |
23,904 | 3,346,082 | ||||||
American International Group, Inc. |
91,694 | 6,212,269 | ||||||
Bank OZK |
38,893 | 1,938,038 | ||||||
BOK Financial Corp. |
19,117 | 1,637,371 | ||||||
Fidelity National Information Services, Inc. |
31,246 | 1,876,947 | ||||||
Hartford Financial Services Group, Inc. (The) |
29,203 | 2,347,337 | ||||||
Loews Corp. |
11,090 | 771,753 | ||||||
Mr. Cooper Group, Inc. (a) |
50,111 | 3,263,228 | ||||||
Stifel Financial Corp. |
13,454 | 930,344 | ||||||
Webster Financial Corp. |
76,793 | 3,898,013 | ||||||
Willis Towers Watson plc |
10,885 | 2,625,462 | ||||||
| 28,846,844 | ||||||||
Health Care — 5.0% |
||||||||
Boston Scientific Corp. (a) |
59,822 | 3,458,310 | ||||||
Enovis Corp. (a) |
61,770 | 3,460,356 | ||||||
|
Shares |
Fair |
||||||
Health Care — 5.0% continued |
||||||||
Envista Holdings Corp. (a) |
48,822 | $ | 1,174,657 | |||||
| 8,093,323 | ||||||||
Industrials — 25.8% |
||||||||
Alaska Air Group, Inc. (a)(b) |
44,647 | 1,744,358 | ||||||
Allegiant Travel Co. |
19,361 | 1,599,412 | ||||||
ESAB Corp. |
40,930 | 3,545,357 | ||||||
Ferguson plc |
10,585 | 2,043,646 | ||||||
Fortune Brands Innovations, Inc. |
12,156 | 925,558 | ||||||
Insperity, Inc. |
11,879 | 1,392,456 | ||||||
Kirby Corp. (a) |
8,657 | 679,401 | ||||||
L3Harris Technologies, Inc. |
13,970 | 2,942,361 | ||||||
Parker-Hannifin Corp. |
14,047 | 6,471,453 | ||||||
Regal Rexnord Corp. |
37,605 | 5,566,292 | ||||||
Sensata Technologies Holding plc |
49,287 | 1,851,713 | ||||||
SS&C Technologies Holdings, Inc. |
63,920 | 3,906,151 | ||||||
WESCO International, Inc. |
53,276 | 9,263,631 | ||||||
| 41,931,789 | ||||||||
Information Technology — 5.6% |
||||||||
Arrow Electronics, Inc. (a) |
9,449 | 1,155,140 | ||||||
Check Point Software Technologies Ltd. (a) |
12,604 | 1,925,765 | ||||||
Ciena Corp. (a) |
67,539 | 3,039,930 | ||||||
GoDaddy, Inc., Class A (a) |
14,190 | 1,506,410 | ||||||
NXP Semiconductors NV |
6,746 | 1,549,421 | ||||||
| 9,176,666 | ||||||||
Materials — 6.3% |
||||||||
Ashland, Inc. |
54,981 | 4,635,448 | ||||||
Freeport-McMoRan, Inc. |
130,626 | 5,560,749 | ||||||
| 10,196,197 | ||||||||
Real Estate — 13.8% |
||||||||
CubeSmart |
116,230 | 5,387,261 | ||||||
Douglas Emmett, Inc. (b) |
58,607 | 849,802 | ||||||
Extra Space Storage, Inc. |
11,080 | 1,776,457 | ||||||
Jones Lang LaSalle, Inc. (a) |
11,275 | 2,129,509 | ||||||
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 27 |
Diamond Hill Mid Cap Fund
Schedule of Investments (Continued)
December 31, 2023
|
Shares |
Fair |
||||||
Common Stocks — 96.7% continued |
||||||||
Real Estate — 13.8% continued |
||||||||
Mid-America Apartment Communities, Inc. |
13,583 | $ | 1,826,370 | |||||
Rayonier, Inc. |
61,457 | 2,053,278 | ||||||
Ryman Hospitality Properties, Inc. |
29,435 | 3,239,616 | ||||||
SBA Communications Corp., Class A |
9,448 | 2,396,863 | ||||||
UDR, Inc. |
70,719 | 2,707,831 | ||||||
| 22,366,987 | ||||||||
Utilities — 1.1% |
||||||||
UGI Corp. |
73,362 | 1,804,705 | ||||||
Total Common Stocks |
||||||||
(Cost $97,777,595) |
$ | 157,094,289 | ||||||
Registered Investment Companies — 3.3% |
||||||||
State Street Institutional US Government Money Market Fund - Premier Class, 5.32% (c) |
5,259,027 | 5,259,027 | ||||||
State Street Navigator Securities Lending Portfolio I, 5.09% (c)(d) |
144,631 | 144,631 | ||||||
Total Registered Investment Companies |
||||||||
(Cost $5,403,658) |
$ | 5,403,658 | ||||||
Total Investment Securities — 100.0% |
||||||||
(Cost $103,181,253) |
$ | 162,497,947 | ||||||
Other Assets in Excess of Liabilities — 0.0% (e) |
20,368 | |||||||
Net Assets — 100.0% |
$ | 162,518,315 | ||||||
|
(a) |
Non-income producing security. |
|
(b) |
All or a portion of the security is on loan. The total fair value of the securities on loan as of December 31, 2023 was $1,881,876. |
|
(c) |
The rate shown is the 7-day effective yield as of December 31, 2023. |
|
(d) |
This security was purchased using cash collateral held from securities on loan. |
|
(e) |
Percentage rounds to less than 0.1%. |
NV — Naamloze Vennootschap
plc — Public Limited Company
See accompanying Notes to Financial Statements.
Diamond Hill Large Cap Fund
Schedule of Investments
December 31, 2023
|
Shares |
Fair |
||||||
Common Stocks — 97.8% |
||||||||
Communication Services — 1.7% |
||||||||
Alphabet, Inc., Class A (a) |
1,027,560 | $ | 143,539,856 | |||||
Consumer Discretionary — 14.0% |
||||||||
Amazon.com, Inc. (a) |
1,236,638 | 187,894,778 | ||||||
BorgWarner, Inc. |
2,520,167 | 90,347,987 | ||||||
CarMax, Inc. (a)(b) |
2,940,309 | 225,639,313 | ||||||
General Motors Co. |
4,749,771 | 170,611,774 | ||||||
Home Depot, Inc. (The) |
484,835 | 168,019,569 | ||||||
Lear Corp. |
824,228 | 116,389,236 | ||||||
NVR, Inc. (a) |
31,506 | 220,556,178 | ||||||
| 1,179,458,835 | ||||||||
Consumer Staples — 4.7% |
||||||||
PepsiCo, Inc. |
1,316,148 | 223,534,576 | ||||||
Target Corp. |
1,209,859 | 172,308,119 | ||||||
| 395,842,695 | ||||||||
Energy — 6.8% |
||||||||
Chevron Corp. |
1,054,973 | 157,359,773 | ||||||
ConocoPhillips |
2,584,074 | 299,933,469 | ||||||
Diamondback Energy, Inc. |
755,598 | 117,178,138 | ||||||
| 574,471,380 | ||||||||
Financials — 23.1% |
||||||||
Allstate Corp. (The) |
1,607,318 | 224,992,374 | ||||||
American International Group, Inc. |
5,531,947 | 374,789,409 | ||||||
Bank of America Corp. |
7,930,212 | 267,010,238 | ||||||
Berkshire Hathaway, Inc., Class B (a) |
329,619 | 117,561,913 | ||||||
Hartford Financial Services Group, Inc. (The) |
1,452,547 | 116,755,728 | ||||||
KKR & Co., Inc. |
2,615,884 | 216,725,989 | ||||||
Marsh & McLennan Cos., Inc. |
395,525 | 74,940,122 | ||||||
Nasdaq, Inc. |
2,258,044 | 131,282,678 | ||||||
Truist Financial Corp. |
2,263,805 | 83,579,681 | ||||||
Visa, Inc., Class A (b) |
483,032 | 125,757,381 | ||||||
Wells Fargo & Co. |
4,172,664 | 205,378,522 | ||||||
| 1,938,774,035 | ||||||||
Health Care — 17.3% |
||||||||
Abbott Laboratories |
2,463,020 | 271,104,611 | ||||||
AbbVie, Inc. |
678,231 | 105,105,458 | ||||||
28 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Large Cap Fund
Schedule of Investments (Continued)
December 31, 2023
|
Shares |
Fair |
||||||
Common Stocks — 97.8% continued |
||||||||
Health Care — 17.3% continued |
||||||||
Becton, Dickinson and Co. |
546,524 | $ | 133,258,947 | |||||
HCA Healthcare, Inc. |
773,831 | 209,460,575 | ||||||
Humana, Inc. |
332,609 | 152,271,726 | ||||||
Laboratory Corp. of America Holdings |
659,918 | 149,992,762 | ||||||
Medtronic plc |
1,773,874 | 146,131,740 | ||||||
Pfizer, Inc. |
5,684,234 | 163,649,097 | ||||||
Stryker Corp. |
418,969 | 125,464,457 | ||||||
| 1,456,439,373 | ||||||||
Industrials — 19.0% |
||||||||
Caterpillar, Inc. |
739,592 | 218,675,167 | ||||||
Deere & Co. |
351,714 | 140,639,877 | ||||||
Ferguson plc |
737,471 | 142,383,526 | ||||||
Honeywell International, Inc. |
597,259 | 125,251,185 | ||||||
L3Harris Technologies, Inc. |
656,946 | 138,365,966 | ||||||
Parker-Hannifin Corp. |
386,757 | 178,178,950 | ||||||
Regal Rexnord Corp. |
979,827 | 145,033,993 | ||||||
SS&C Technologies Holdings, Inc. |
2,805,991 | 171,474,110 | ||||||
Union Pacific Corp. |
828,866 | 203,586,067 | ||||||
Waste Management, Inc. |
735,889 | 131,797,720 | ||||||
| 1,595,386,561 | ||||||||
Information Technology — 3.5% |
||||||||
Microsoft Corp. |
222,451 | 83,650,474 | ||||||
Texas Instruments, Inc. |
1,251,397 | 213,313,133 | ||||||
| 296,963,607 | ||||||||
Materials — 3.2% |
||||||||
Freeport-McMoRan, Inc. |
3,788,746 | 161,286,917 | ||||||
Martin Marietta Materials, Inc. |
221,897 | 110,706,632 | ||||||
| 271,993,549 | ||||||||
Real Estate — 3.4% |
||||||||
Extra Space Storage, Inc. |
915,914 | 146,848,492 | ||||||
SBA Communications Corp., Class A |
551,757 | 139,975,233 | ||||||
| 286,823,725 | ||||||||
|
Shares |
Fair |
||||||
Utilities — 1.1% |
||||||||
Dominion Energy, Inc. |
1,850,828 | $ | 86,988,916 | |||||
Total Common Stocks |
||||||||
(Cost $6,127,181,875) |
$ | 8,226,682,532 | ||||||
Registered Investment Companies — 3.7% |
||||||||
State Street Institutional US Government Money Market Fund - Premier Class, 5.32% (c) |
181,475,849 | 181,475,849 | ||||||
State Street Navigator Securities Lending Portfolio I, 5.09% (c)(d) |
128,365,754 | 128,365,754 | ||||||
Total Registered Investment Companies |
||||||||
(Cost $309,841,603) |
$ | 309,841,603 | ||||||
Total Investment Securities — 101.5% |
||||||||
(Cost $6,437,023,478) |
$ | 8,536,524,135 | ||||||
Liabilities in Excess of Other Assets — (1.5)% |
(124,596,395 | ) | ||||||
Net Assets — 100.0% |
$ | 8,411,927,740 | ||||||
|
(a) |
Non-income producing security. |
|
(b) |
All or a portion of the security is on loan. The total fair value of the securities on loan as of December 31, 2023 was $143,445,951. |
|
(c) |
The rate shown is the 7-day effective yield as of December 31, 2023. |
|
(d) |
This security was purchased using cash collateral held from securities on loan. |
plc — Public Limited Company
See accompanying Notes to Financial Statements.
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 29 |
Diamond Hill Large Cap Concentrated Fund
Schedule of Investments
December 31, 2023
|
Shares |
Fair |
||||||
Common Stocks — 97.6% |
||||||||
Consumer Discretionary — 17.4% |
||||||||
Amazon.com, Inc. (a) |
7,645 | $ | 1,161,581 | |||||
General Motors Co. |
32,781 | 1,177,494 | ||||||
Home Depot, Inc. (The) |
3,217 | 1,114,851 | ||||||
NVR, Inc. (a) |
194 | 1,358,087 | ||||||
| 4,812,013 | ||||||||
Consumer Staples — 4.9% |
||||||||
PepsiCo, Inc. |
7,982 | 1,355,663 | ||||||
Energy — 7.2% |
||||||||
ConocoPhillips |
17,167 | 1,992,574 | ||||||
Financials — 22.7% |
||||||||
Allstate Corp. (The) |
9,418 | 1,318,332 | ||||||
American International Group, Inc. |
33,251 | 2,252,755 | ||||||
Bank of America Corp. |
41,779 | 1,406,699 | ||||||
KKR & Co., Inc. |
15,571 | 1,290,057 | ||||||
| 6,267,843 | ||||||||
Health Care — 18.5% |
||||||||
Abbott Laboratories |
15,677 | 1,725,567 | ||||||
HCA Healthcare, Inc. |
4,892 | 1,324,167 | ||||||
Humana, Inc. |
2,193 | 1,003,977 | ||||||
Pfizer, Inc. |
37,136 | 1,069,146 | ||||||
| 5,122,857 | ||||||||
Industrials — 18.2% |
||||||||
Caterpillar, Inc. |
4,811 | 1,422,468 | ||||||
Parker-Hannifin Corp. |
2,436 | 1,122,265 | ||||||
SS&C Technologies Holdings, Inc. |
19,613 | 1,198,551 | ||||||
Union Pacific Corp. |
5,279 | 1,296,628 | ||||||
| 5,039,912 | ||||||||
Information Technology — 5.0% |
||||||||
Texas Instruments, Inc. |
8,122 | 1,384,476 | ||||||
Materials — 3.7% |
||||||||
Freeport-McMoRan, Inc. |
23,640 | 1,006,355 | ||||||
Total Common Stocks |
||||||||
(Cost $22,746,455) |
$ | 26,981,693 | ||||||
|
Shares |
Fair |
||||||
Registered Investment Companies — 2.4% |
||||||||
State Street Institutional Liquid Reserves Fund - Premier Class, 5.49% (b) (Cost $645,834) |
645,512 | $ | 645,899 | |||||
Total Investment Securities — 100.0% |
||||||||
(Cost $23,392,289) |
$ | 27,627,592 | ||||||
Other Assets in Excess of Liabilities — 0.0% (c) |
8,936 | |||||||
Net Assets — 100.0% |
$ | 27,636,528 | ||||||
|
(a) |
Non-income producing security. |
|
(b) |
The rate shown is the 7-day effective yield as of December 31, 2023. |
|
(c) |
Percentage rounds to less than 0.1%. |
See accompanying Notes to Financial Statements.
30 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Select Fund
Schedule of Investments
December 31, 2023
|
Shares |
Fair |
||||||
Common Stocks — 96.7% |
||||||||
Consumer Discretionary — 20.0% |
||||||||
Amazon.com, Inc. (a) |
81,036 | $ | 12,312,610 | |||||
CarMax, Inc. (a) |
262,871 | 20,172,721 | ||||||
General Motors Co. |
461,655 | 16,582,648 | ||||||
Lear Corp. |
91,214 | 12,880,329 | ||||||
Red Rock Resorts, Inc., Class A |
603,282 | 32,173,029 | ||||||
| 94,121,337 | ||||||||
Consumer Staples — 6.3% |
||||||||
SunOpta, Inc. (a)(b) |
2,240,411 | 12,255,048 | ||||||
Target Corp. |
121,617 | 17,320,693 | ||||||
| 29,575,741 | ||||||||
Energy — 1.5% |
||||||||
Diamondback Energy, Inc. |
46,017 | 7,136,316 | ||||||
Financials — 25.3% |
||||||||
Allstate Corp. (The) |
143,459 | 20,081,391 | ||||||
American International Group, Inc. |
421,176 | 28,534,674 | ||||||
Bank of America Corp. |
429,117 | 14,448,369 | ||||||
KKR & Co., Inc. |
128,970 | 10,685,165 | ||||||
Mr. Cooper Group, Inc. (a) |
550,645 | 35,858,002 | ||||||
Webster Financial Corp. |
185,070 | 9,394,153 | ||||||
| 119,001,754 | ||||||||
Health Care — 8.6% |
||||||||
Enovis Corp. (a) |
312,683 | 17,516,502 | ||||||
HCA Healthcare, Inc. |
34,646 | 9,377,979 | ||||||
Humana, Inc. |
29,367 | 13,444,506 | ||||||
| 40,338,987 | ||||||||
Industrials — 24.1% |
||||||||
Cimpress plc (a)(b) |
314,706 | 25,192,215 | ||||||
ESAB Corp. |
80,374 | 6,961,996 | ||||||
Regal Rexnord Corp. |
140,717 | 20,828,930 | ||||||
SS&C Technologies Holdings, Inc. |
249,168 | 15,226,657 | ||||||
Union Pacific Corp. |
62,016 | 15,232,370 | ||||||
WESCO International, Inc. |
171,721 | 29,858,848 | ||||||
| 113,301,016 | ||||||||
|
Shares |
Fair |
||||||
Information Technology — 4.3% |
||||||||
Coherent Corp. (a) |
142,070 | $ | 6,184,307 | |||||
Texas Instruments, Inc. |
82,548 | 14,071,132 | ||||||
| 20,255,439 | ||||||||
Materials — 4.4% |
||||||||
Ashland, Inc. |
242,136 | 20,414,486 | ||||||
Real Estate — 2.2% |
||||||||
Extra Space Storage, Inc. |
64,292 | 10,307,936 | ||||||
Total Common Stocks |
||||||||
(Cost $309,498,366) |
$ | 454,453,012 | ||||||
Registered Investment Companies — 6.4% |
||||||||
State Street Institutional Liquid Reserves Fund - Premier Class, 5.49% (c) |
15,449,613 | 15,458,883 | ||||||
State Street Navigator Securities Lending Portfolio I, 5.09% (c)(d) |
14,423,487 | 14,423,487 | ||||||
Total Registered Investment Companies |
||||||||
(Cost $29,879,431) |
$ | 29,882,370 | ||||||
Total Investment Securities — 103.1% |
||||||||
(Cost $339,377,797) |
$ | 484,335,382 | ||||||
Liabilities in Excess of Other Assets — (3.1)% |
(14,663,860 | ) | ||||||
Net Assets — 100.0% |
$ | 469,671,522 | ||||||
|
(a) |
Non-income producing security. |
|
(b) |
All or a portion of the security is on loan. The total fair value of the securities on loan as of December 31, 2023 was $14,393,123. |
|
(c) |
The rate shown is the 7-day effective yield as of December 31, 2023. |
|
(d) |
This security was purchased using cash collateral held from securities on loan. |
plc — Public Limited Company
See accompanying Notes to Financial Statements.
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 31 |
Diamond Hill Long-Short Fund
Schedule of Investments
December 31, 2023
|
Shares |
Fair |
||||||
Common Stocks — 89.9% |
||||||||
Communication Services — 12.7% |
||||||||
Alphabet, Inc., Class A (a) |
527,155 | $ | 73,638,282 | |||||
Comcast Corp., Class A |
363,204 | 15,926,495 | ||||||
Meta Platforms, Inc., Class A (a) |
220,289 | 77,973,494 | ||||||
Verizon Communications, Inc. |
585,435 | 22,070,900 | ||||||
Walt Disney Co. (The) |
333,119 | 30,077,315 | ||||||
| 219,686,486 | ||||||||
Consumer Discretionary — 2.7% |
||||||||
BorgWarner, Inc. |
192,450 | 6,899,332 | ||||||
Lear Corp. |
187,055 | 26,414,037 | ||||||
TJX Cos., Inc. (The) (b)(c) |
134,416 | 12,609,565 | ||||||
| 45,922,934 | ||||||||
Consumer Staples — 4.0% |
||||||||
Archer-Daniels-Midland Co. |
174,016 | 12,567,436 | ||||||
Constellation Brands, Inc., Class A (b) |
101,434 | 24,521,669 | ||||||
Target Corp. (b) |
223,455 | 31,824,461 | ||||||
| 68,913,566 | ||||||||
Energy — 4.2% |
||||||||
Chevron Corp. (b) |
294,639 | 43,948,353 | ||||||
Coterra Energy, Inc. |
1,151,653 | 29,390,185 | ||||||
| 73,338,538 | ||||||||
Financials — 24.9% |
||||||||
Allstate Corp. (The) |
184,008 | 25,757,440 | ||||||
American International Group, Inc. |
1,060,315 | 71,836,341 | ||||||
Bank of America Corp. (c) |
950,815 | 32,013,941 | ||||||
Berkshire Hathaway, Inc., Class B (a)(b) |
83,269 | 29,698,722 | ||||||
Citigroup, Inc. (c) |
1,027,676 | 52,863,653 | ||||||
Fidelity National Information Services, Inc. |
571,336 | 34,320,154 | ||||||
Hartford Financial Services Group, Inc. (The) (b) |
246,256 | 19,794,057 | ||||||
KKR & Co., Inc. (b) |
569,533 | 47,185,809 | ||||||
Morgan Stanley (b) |
202,252 | 18,859,999 | ||||||
Truist Financial Corp. (c) |
866,549 | 31,992,989 | ||||||
Visa, Inc., Class A (b) |
110,917 | 28,877,241 | ||||||
|
Shares |
Fair |
||||||
Financials — 24.9% continued |
||||||||
Wells Fargo & Co. (b)(c) |
735,503 | $ | 36,201,458 | |||||
| 429,401,804 | ||||||||
Health Care — 15.8% |
||||||||
Abbott Laboratories (b) |
269,012 | 29,610,151 | ||||||
Becton, Dickinson and Co. (b) |
60,687 | 14,797,311 | ||||||
CVS Health Corp. (b) |
296,159 | 23,384,715 | ||||||
Enovis Corp. (a) |
454,797 | 25,477,728 | ||||||
HCA Healthcare, Inc. (b) |
128,376 | 34,748,816 | ||||||
Humana, Inc. |
82,629 | 37,828,382 | ||||||
Laboratory Corp. of America Holdings (b) |
113,856 | 25,878,330 | ||||||
Medtronic plc |
383,229 | 31,570,405 | ||||||
Perrigo Co. plc (b) |
717,434 | 23,087,026 | ||||||
Pfizer, Inc. |
900,995 | 25,939,646 | ||||||
| 272,322,510 | ||||||||
Industrials — 12.7% |
||||||||
Alaska Air Group, Inc. (a)(b) |
365,553 | 14,282,156 | ||||||
ESAB Corp. (b)(c) |
164,660 | 14,262,849 | ||||||
Johnson Controls International plc (c) |
378,600 | 21,822,504 | ||||||
Kirby Corp. (a) |
134,278 | 10,538,137 | ||||||
L3Harris Technologies, Inc. (c) |
121,935 | 25,681,950 | ||||||
Parker-Hannifin Corp. (b)(c) |
84,596 | 38,973,377 | ||||||
Sensata Technologies Holding plc (c) |
625,713 | 23,508,037 | ||||||
SS&C Technologies Holdings, Inc. |
580,164 | 35,453,822 | ||||||
WNS Holdings Ltd. - ADR (a) |
564,296 | 35,663,507 | ||||||
| 220,186,339 | ||||||||
Information Technology — 8.7% |
||||||||
Ciena Corp. (a)(b) |
824,205 | 37,097,467 | ||||||
Microsoft Corp. (c) |
172,477 | 64,858,251 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. - ADR |
244,020 | 25,378,080 | ||||||
Texas Instruments, Inc. |
136,676 | 23,297,791 | ||||||
| 150,631,589 | ||||||||
32 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Long-Short Fund
Schedule of Investments (Continued)
December 31, 2023
|
Shares |
Fair |
||||||
Common Stocks — 89.9% continued |
||||||||
Materials — 2.4% |
||||||||
Ashland, Inc. (b) |
185,274 | $ | 15,620,451 | |||||
Freeport-McMoRan, Inc. (b) |
594,549 | 25,309,951 | ||||||
| 40,930,402 | ||||||||
Real Estate — 0.9% |
||||||||
Extra Space Storage, Inc. (b) |
95,175 | 15,259,408 | ||||||
Utilities — 0.9% |
||||||||
Dominion Energy, Inc. (b) |
316,955 | 14,896,885 | ||||||
Total Common Stocks |
||||||||
(Cost $961,548,349) |
$ | 1,551,490,461 | ||||||
|
Coupon |
Maturity |
|
Fair |
||||||||||||
Treasury — 6.9% |
||||||||||||||||
U.S. Treasury Notes |
2.000 | % | 06/30/24 | $ | 40,000,000 | $ | 39,376,562 | |||||||||
U.S. Treasury Notes (c) |
3.000 | % | 06/30/24 | 40,000,000 | 39,581,250 | |||||||||||
U.S. Treasury Notes |
3.000 | % | 07/31/24 | 40,000,000 | 39,528,125 | |||||||||||
Total Treasury |
||||||||||||||||
(Cost $119,172,659) |
$ | 118,485,937 | ||||||||||||||
|
Shares |
Fair |
||||||
Registered Investment Companies — 18.9% |
||||||||
State Street Institutional Liquid Reserves Fund - Premier Class, 5.49% (d) |
27,457,340 | $ | 27,473,814 | |||||
State Street Navigator Securities Lending Portfolio I, 5.09% (d)(e) |
298,725,470 | 298,725,470 | ||||||
Total Registered Investment Companies |
||||||||
(Cost $326,187,522) |
$ | 326,199,284 | ||||||
Total Investment Securities — 115.7% |
||||||||
(Cost $1,406,908,530) |
$ | 1,996,175,682 | ||||||
Segregated Cash With Custodian — 33.0% |
569,747,985 | |||||||
Investments Sold Short — (31.9)% |
||||||||
(Proceeds $552,083,433) |
(549,808,718 | ) | ||||||
Liabilities In Excess of Other Assets — (16.8)% |
(290,641,309 | ) | ||||||
Net Assets — 100.0% |
$ | 1,725,473,640 | ||||||
|
(a) |
Non-income producing security. |
|
(b) |
All or a portion of the security is on loan. The total fair value of the securities on loan as of December 31, 2023 was $291,485,958. |
|
(c) |
All or a portion of the shares have been pledged as collateral for open short positions. |
|
(d) |
The rate shown is the 7-day effective yield as of December 31, 2023. |
|
(e) |
This security was purchased using cash collateral held from securities on loan. |
ADR — American Depositary Receipt
plc — Public Limited Company
See accompanying Notes to Financial Statements.
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 33 |
Diamond Hill Long-Short Fund
Schedule of Investments Sold Short
December 31, 2023
|
Shares |
Fair |
||||||
Common Stocks — 31.9% |
||||||||
Communication Services — 0.2% |
||||||||
Cogent Communications Holdings, Inc. |
40,165 | $ | 3,054,950 | |||||
Consumer Discretionary — 8.4% |
||||||||
Acushnet Holdings Corp. |
344,585 | 21,767,434 | ||||||
Best Buy Co., Inc. |
52,761 | 4,130,131 | ||||||
Canada Goose Holdings, Inc. |
791,115 | 9,374,713 | ||||||
Choice Hotels International, Inc. |
148,635 | 16,840,346 | ||||||
Dick’s Sporting Goods, Inc. |
81,686 | 12,003,758 | ||||||
Etsy, Inc. |
101,420 | 8,220,091 | ||||||
GameStop Corp., Class A |
578,475 | 10,140,667 | ||||||
Garmin Ltd. |
183,100 | 23,535,674 | ||||||
Grand Canyon Education, Inc. |
62,495 | 8,251,840 | ||||||
SeaWorld Entertainment, Inc. |
173,730 | 9,178,156 | ||||||
Shake Shack, Inc., Class A |
147,807 | 10,955,455 | ||||||
Tesla, Inc. |
39,657 | 9,853,971 | ||||||
| 144,252,236 | ||||||||
Consumer Staples — 4.3% |
||||||||
Brown-Forman Corp., Class B |
210,990 | 12,047,529 | ||||||
Clorox Co. (The) |
68,255 | 9,732,480 | ||||||
e.l.f. Beauty, Inc. |
62,125 | 8,967,123 | ||||||
J.M. Smucker Co. (The) |
61,720 | 7,800,174 | ||||||
WD-40 Co. |
146,028 | 34,910,914 | ||||||
| 73,458,220 | ||||||||
Financials — 3.1% |
||||||||
Bank of Hawaii Corp. |
240,135 | 17,400,182 | ||||||
Blackstone Mortgage Trust, Inc., Class A |
172,600 | 3,671,202 | ||||||
Commerce Bancshares, Inc. |
342,410 | 18,288,118 | ||||||
First Financial Bankshares, Inc. |
159,581 | 4,835,304 | ||||||
Palomar Holdings, Inc. |
176,935 | 9,819,893 | ||||||
| 54,014,699 | ||||||||
|
Shares |
Fair |
||||||
Health Care — 1.3% |
||||||||
CONMED Corp. |
62,640 | $ | 6,859,706 | |||||
Penumbra, Inc. |
60,245 | 15,154,027 | ||||||
| 22,013,733 | ||||||||
Industrials — 4.3% |
||||||||
Avis Budget Group, Inc. |
17,550 | 3,110,913 | ||||||
CBIZ, Inc. |
147,315 | 9,220,446 | ||||||
Cintas Corp. |
4,649 | 2,801,766 | ||||||
Mueller Industries, Inc. |
421,660 | 19,881,269 | ||||||
Robert Half, Inc. |
168,410 | 14,806,607 | ||||||
United Parcel Service, Inc., Class B |
89,055 | 14,002,118 | ||||||
W.W. Grainger, Inc. |
13,405 | 11,108,589 | ||||||
| 74,931,708 | ||||||||
Information Technology — 7.8% |
||||||||
Akamai Technologies, Inc. |
123,235 | 14,584,862 | ||||||
Alarm.com Holdings, Inc. |
373,195 | 24,115,861 | ||||||
Asana, Inc., Class A |
753,825 | 14,330,213 | ||||||
Badger Meter, Inc. |
103,204 | 15,931,601 | ||||||
F5, Inc. |
34,682 | 6,207,384 | ||||||
International Business Machines Corp. |
188,445 | 30,820,180 | ||||||
Oracle Corp. |
43,155 | 4,549,832 | ||||||
Teradata Corp. |
544,085 | 23,673,138 | ||||||
| 134,213,071 | ||||||||
Materials — 0.3% |
||||||||
Silgan Holdings, Inc. |
127,370 | 5,763,493 | ||||||
Real Estate — 0.7% |
||||||||
eXp World Holdings, Inc. |
814,435 | 12,640,031 | ||||||
Utilities — 1.5% |
||||||||
Ormat Technologies, Inc. |
336,015 | 25,466,577 | ||||||
Total Investments Sold Short — 31.9% |
||||||||
(Proceeds $552,083,433) |
$ | 549,808,718 | ||||||
Percentages disclosed are based on total net assets of the Fund at December 31, 2023.
See accompanying Notes to Financial Statements.
34 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill International Fund
Schedule of Investments
December 31, 2023
|
Shares |
Fair |
||||||
Common Stocks — 94.1% |
||||||||
Belgium — 1.2% |
||||||||
UCB SA |
15,301 | $ | 1,333,869 | |||||
Brazil — 1.7% |
||||||||
Ambev SA |
658,459 | 1,863,627 | ||||||
Canada — 8.0% |
||||||||
Canadian Natural Resources Ltd. (a) |
40,658 | 2,663,850 | ||||||
Capstone Copper Corp. (a)(b) |
217,576 | 1,059,168 | ||||||
Fairfax Financial Holdings Ltd. |
4,029 | 3,717,437 | ||||||
Imperial Oil Ltd. (a) |
23,663 | 1,348,018 | ||||||
| 8,788,473 | ||||||||
China — 4.0% |
||||||||
Alibaba Group Holding Ltd. |
167,000 | 1,608,626 | ||||||
Fu Shou Yuan International Group Ltd. |
1,149,000 | 779,848 | ||||||
Tencent Holdings Ltd. |
51,500 | 1,944,366 | ||||||
| 4,332,840 | ||||||||
Finland — 1.3% |
||||||||
Konecranes OYJ |
30,517 | 1,376,757 | ||||||
France — 2.8% |
||||||||
Safran SA |
11,783 | 2,077,553 | ||||||
Ubisoft Entertainment SA (b) |
39,745 | 1,016,034 | ||||||
| 3,093,587 | ||||||||
Germany — 1.3% |
||||||||
Vitesco Technologies Group AG (b) |
15,727 | 1,362,193 | ||||||
India — 4.2% |
||||||||
Fusion Micro Finance Ltd. (b) |
134,370 | 929,610 | ||||||
HDFC Bank Ltd. - ADR |
54,515 | 3,658,502 | ||||||
| 4,588,112 | ||||||||
Ireland — 1.2% |
||||||||
ICON plc (b) |
4,599 | 1,301,839 | ||||||
Israel — 0.9% |
||||||||
Check Point Software Technologies Ltd. (b) |
6,597 | 1,007,956 | ||||||
|
Shares |
Fair |
||||||
Japan — 6.7% |
||||||||
Astellas Pharma, Inc. |
133,000 | $ | 1,581,973 | |||||
Japan Petroleum Exploration Co. Ltd. |
62,700 | 2,324,238 | ||||||
Mitsubishi Corp. |
137,400 | 2,188,914 | ||||||
Shionogi & Co. Ltd. |
26,200 | 1,261,087 | ||||||
| 7,356,212 | ||||||||
Korea (Republic of) — 3.6% |
||||||||
Samsung Electronics Co. Ltd. |
64,361 | 3,883,083 | ||||||
Mexico — 3.4% |
||||||||
Fomento Economico Mexicano SAB de CV |
125,842 | 1,641,263 | ||||||
Wal-Mart de Mexico SAB de CV |
504,533 | 2,121,212 | ||||||
| 3,762,475 | ||||||||
Netherlands — 4.5% |
||||||||
EXOR NV |
37,157 | 3,719,486 | ||||||
uniQure NV (a)(b) |
54,185 | 366,832 | ||||||
Universal Music Group NV |
30,708 | 876,662 | ||||||
| 4,962,980 | ||||||||
Peru — 1.6% |
||||||||
Credicorp Ltd. |
11,316 | 1,696,608 | ||||||
Poland — 1.8% |
||||||||
Dino Polska SA (b) |
16,971 | 1,987,284 | ||||||
Sweden — 3.7% |
||||||||
Assa Abloy AB, Class B |
58,628 | 1,689,941 | ||||||
Epiroc AB, Class B |
132,528 | 2,324,702 | ||||||
| 4,014,643 | ||||||||
Switzerland — 10.1% |
||||||||
Compagnie Financiere Richemont SA, Class A |
18,421 | 2,544,294 | ||||||
Nestlé SA |
20,494 | 2,375,577 | ||||||
Novartis AG - ADR |
20,974 | 2,117,745 | ||||||
Roche Holdings AG |
6,374 | 1,852,815 | ||||||
Swatch Group AG (The) |
7,667 | 2,086,041 | ||||||
| 10,976,472 | ||||||||
Taiwan Province of China — 1.9% |
||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. - ADR |
20,012 | 2,081,248 | ||||||
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 35 |
Diamond Hill International Fund
Schedule of Investments (Continued)
December 31, 2023
|
Shares |
Fair |
||||||
Common Stocks — 94.1% continued |
||||||||
United Kingdom — 24.4% |
||||||||
Ashmore Group plc |
635,122 | $ | 1,799,964 | |||||
Beazley plc |
267,229 | 1,776,125 | ||||||
Bunzl plc |
64,862 | 2,636,034 | ||||||
Compass Group plc |
115,313 | 3,155,747 | ||||||
Diageo plc |
57,166 | 2,075,112 | ||||||
Glencore plc |
309,389 | 1,859,986 | ||||||
GSK plc |
112,840 | 2,084,328 | ||||||
Howden Joinery Group plc |
289,608 | 2,998,623 | ||||||
Smith & Nephew plc |
174,989 | 2,404,140 | ||||||
Tesco plc |
861,275 | 3,191,192 | ||||||
Unilever plc (a) |
55,207 | 2,675,856 | ||||||
| 26,657,107 | ||||||||
United States — 5.8% |
||||||||
Aurinia Pharmaceuticals, Inc. (a)(b) |
55,079 | 495,160 | ||||||
Energy Recovery, Inc. (b) |
50,231 | 946,352 | ||||||
Ferguson plc |
7,467 | 1,430,318 | ||||||
Spotify Technology SA (b) |
18,249 | 3,429,170 | ||||||
| 6,301,000 | ||||||||
Total Common Stocks |
||||||||
(Cost $96,152,866) |
$ | 102,728,365 | ||||||
|
Shares |
Fair |
||||||
Registered Investment Companies - 9.7% |
||||||||
State Street Institutional Liquid Reserves Fund - Premier Class, 5.49% (c) |
6,291,472 | $ | 6,295,247 | |||||
State Street Navigator Securities Lending Portfolio I, 5.09% (c)(d) |
4,326,627 | 4,326,627 | ||||||
Total Registered Investment Companies |
||||||||
(Cost $10,620,123) |
$ | 10,621,874 | ||||||
Total Investment Securities — 103.8% |
||||||||
(Cost $106,772,989) |
$ | 113,350,239 | ||||||
Liabilities in Excess of Other Assets — (3.8)% |
(4,121,856 | ) | ||||||
Net Assets — 100.0% |
$ | 109,228,383 | ||||||
|
(a) |
All or a portion of the security is on loan. The total fair value of the securities on loan as of December 31, 2023 was $4,818,292. |
|
(b) |
Non-income producing security. |
|
(c) |
The rate shown is the 7-day effective yield as of December 31, 2023. |
|
(d) |
This security was purchased using cash collateral held from securities on loan. |
AB — Aktiebolag
ADR — American Depositary Receipt
AG — Aktiengesellschaft
NV — Naamloze Vennootschap
OYJ —Julkinen Osakeyhtio
plc — Public Limited Company
SA — Societe Anonyme
SAB de CV — Societe Anonima Bursatil de Capital Variable
See accompanying Notes to Financial Statements.
36 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments
December 31, 2023
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
Corporate Credit — 5.0% |
||||||||||||||||
Banking — 2.9% |
||||||||||||||||
American Express Co. (a) |
6.338 | % | 10/30/26 | $ | 1,000,000 | $ | 1,019,554 | |||||||||
American Express Co. |
2.550 | % | 03/04/27 | 500,000 | 468,409 | |||||||||||
Bank of America Corp. (1* TSFR3M + 90) (a) |
2.015 | % | 02/13/26 | 6,600,000 | 6,342,047 | |||||||||||
Bank of America Corp. (1* SOFR + 115) (a)(b) |
1.319 | % | 06/19/26 | 776,000 | 730,318 | |||||||||||
Capital One Financial Corp. |
2.636 | % | 03/03/26 | 1,000,000 | 958,186 | |||||||||||
Citigroup, Inc. (1* SOFR + 53) (a) |
1.281 | % | 11/03/25 | 2,750,000 | 2,645,865 | |||||||||||
Discover Bank |
3.450 | % | 07/27/26 | 801,000 | 757,221 | |||||||||||
Discover Financial Services |
3.750 | % | 03/04/25 | 1,949,000 | 1,903,792 | |||||||||||
Fifth Third Bancorp |
1.707 | % | 11/01/27 | 1,200,000 | 1,079,611 | |||||||||||
Goldman Sachs Group, Inc. |
0.925 | % | 10/21/24 | 5,000,000 | 4,993,700 | |||||||||||
Huntington National Bank |
5.699 | % | 11/18/25 | 1,300,000 | 1,283,752 | |||||||||||
JPMorgan Chase & Co. |
0.824 | % | 06/01/25 | 3,000,000 | 2,935,764 | |||||||||||
JPMorgan Chase & Co. (b) |
1.561 | % | 12/10/25 | 3,700,000 | 3,562,359 | |||||||||||
JPMorgan Chase & Co. (b) |
1.470 | % | 09/22/27 | 1,600,000 | 1,449,618 | |||||||||||
JPMorgan Chase Bank, NA |
5.110 | % | 12/08/26 | 500,000 | 504,486 | |||||||||||
KeyBank NA (1* SOFR + 32) (a)(b) |
5.630 | % | 06/14/24 | 2,000,000 | 1,977,799 | |||||||||||
Morgan Stanley (a) |
0.791 | % | 01/22/25 | 3,800,000 | 3,788,774 | |||||||||||
Morgan Stanley |
0.790 | % | 05/30/25 | 2,000,000 | 1,955,167 | |||||||||||
Royal Bank of Canada |
0.750 | % | 10/07/24 | 2,000,000 | 1,930,666 | |||||||||||
Royal Bank of Canada |
4.950 | % | 04/25/25 | 900,000 | 900,105 | |||||||||||
Toronto-Dominion Bank (The) |
0.700 | % | 09/10/24 | 900,000 | 871,385 | |||||||||||
Toronto-Dominion Bank (The) (b) |
1.250 | % | 12/13/24 | 500,000 | 481,246 | |||||||||||
Truist Financial Corp. |
5.720 | % | 06/09/25 | 800,000 | 788,054 | |||||||||||
US Bancorp (a) |
6.787 | % | 10/26/27 | 900,000 | 939,659 | |||||||||||
Wells Fargo & Co. (1* SOFR + 200) (a) |
2.188 | % | 04/30/26 | 1,675,000 | 1,605,263 | |||||||||||
Wells Fargo Bank, NA |
5.254 | % | 12/11/26 | 1,500,000 | 1,518,335 | |||||||||||
| 47,391,135 | ||||||||||||||||
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
Communications — 0.0% (c) |
||||||||||||||||
Fox Corp. |
4.030 | % | 01/25/24 | $ | 450,000 | $ | 449,448 | |||||||||
Consumer Cyclical — 0.5% |
||||||||||||||||
Dollar Tree, Inc. |
4.000 | % | 05/15/25 | 1,600,000 | 1,570,563 | |||||||||||
General Motors Financial Co. |
1.250 | % | 01/08/26 | 3,700,000 | 3,423,303 | |||||||||||
Honda Motor Co. (b) |
2.271 | % | 03/10/25 | 900,000 | 872,223 | |||||||||||
Hyundai Capital America (d) |
6.250 | % | 11/03/25 | 900,000 | 913,212 | |||||||||||
Hyundai Capital America (d) |
5.650 | % | 06/26/26 | 900,000 | 905,971 | |||||||||||
Mercedes-Benz Financing (d) |
2.700 | % | 06/14/24 | 1,000,000 | 986,870 | |||||||||||
| 8,672,142 | ||||||||||||||||
Consumer Non-Cyclical — 0.1% |
||||||||||||||||
Mondelez International, Inc. (d) |
0.750 | % | 09/24/24 | 300,000 | 289,191 | |||||||||||
Pfizer, Inc. |
4.450 | % | 05/19/26 | 900,000 | 897,453 | |||||||||||
| 1,186,644 | ||||||||||||||||
Electric — 0.2% |
||||||||||||||||
DTE Energy Co. |
1.050 | % | 06/01/25 | 500,000 | 471,114 | |||||||||||
WEC Energy Group, Inc. |
0.800 | % | 03/15/24 | 2,750,000 | 2,721,934 | |||||||||||
| 3,193,048 | ||||||||||||||||
Energy — 0.3% |
||||||||||||||||
Devon Energy Corp. (b) |
5.250 | % | 09/15/24 | 1,000,000 | 997,835 | |||||||||||
Energy Transfer Operating, LP |
4.500 | % | 04/15/24 | 925,000 | 921,536 | |||||||||||
Energy Transfer Operating, LP |
5.500 | % | 06/01/27 | 1,000,000 | 1,012,182 | |||||||||||
Energy Transfer, LP |
6.050 | % | 12/01/26 | 500,000 | 514,042 | |||||||||||
TransCanada Pipeline Ltd. |
1.000 | % | 10/12/24 | 750,000 | 723,226 | |||||||||||
| 4,168,821 | ||||||||||||||||
Insurance — 0.8% |
||||||||||||||||
Athene Global Funding (d) |
2.500 | % | 01/14/25 | 1,450,000 | 1,396,696 | |||||||||||
Equitable Financial Life (d) |
1.100 | % | 11/12/24 | 3,050,000 | 2,934,966 | |||||||||||
Met Life Global Funding I (d) |
0.700 | % | 09/27/24 | 1,200,000 | 1,158,952 | |||||||||||
New York Life Global Funding (d) |
0.900 | % | 10/29/24 | 800,000 | 773,281 | |||||||||||
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 37 |
Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
Corporate Credit — 5.0% continued |
||||||||||||||||
Insurance — 0.8% continued |
||||||||||||||||
Principal Life Global Funding II (d) |
0.750 | % | 08/23/24 | $ | 1,265,000 | $ | 1,224,228 | |||||||||
Protective Life Global Funding (d) |
0.473 | % | 01/12/24 | 2,945,000 | 2,941,146 | |||||||||||
Protective Life Global Funding (d) |
0.781 | % | 07/05/24 | 1,700,000 | 1,659,304 | |||||||||||
RGA Global Funding (d) |
2.000 | % | 11/30/26 | 800,000 | 731,576 | |||||||||||
| 12,820,149 | ||||||||||||||||
Technology — 0.0% (c) |
||||||||||||||||
Dell International, LLC/EMC Corp. |
4.900 | % | 10/01/26 | 300,000 | 300,477 | |||||||||||
Transportation — 0.2% |
||||||||||||||||
Alaska Airlines Pass-Through Trust, Series 2020-1B, Class A (d) |
4.800 | % | 02/15/29 | 382,418 | 371,593 | |||||||||||
American Airlines Pass-Through Trust, Series 2016-2, Class AA |
3.200 | % | 12/15/29 | 1,349,000 | 1,227,648 | |||||||||||
United Airlines Pass-Through Trust, Series 2020-1, Class A |
5.875 | % | 04/15/29 | 776,380 | 786,030 | |||||||||||
| 2,385,271 | ||||||||||||||||
Total Corporate Credit |
||||||||||||||||
(Cost $81,436,174) |
$ | 80,567,135 | ||||||||||||||
Securitized — 86.4% |
||||||||||||||||
ABS-Other — 5.0% |
||||||||||||||||
BXG Receivables Note Trust, Series 2018-A, Class C (d) |
4.440 | % | 02/02/34 | 446,604 | 428,312 | |||||||||||
Cascade Funding Mortgage Trust, Series 2021-GRN1, Class B (d) |
1.830 | % | 03/20/41 | 3,588,000 | 3,144,039 | |||||||||||
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
ABS-Other — 5.0% continued |
||||||||||||||||
Diamond Resorts Owner Trust, Series 2021-1A, Class B (d) |
2.050 | % | 11/21/33 | $ | 966,770 | $ | 904,103 | |||||||||
Diamond Resorts Owner Trust, Series 2021-1A, Class C (d) |
2.700 | % | 11/21/33 | 519,294 | 479,758 | |||||||||||
Diamond Resorts Owner Trust, Series 2021-1A, Class D (d) |
3.830 | % | 11/21/33 | 276,220 | 253,073 | |||||||||||
FMC GMSR Issuer Trust, Series 2020-GT1, Class A (a)(d) |
4.450 | % | 01/25/26 | 8,850,000 | 7,963,943 | |||||||||||
FMC GMSR Issuer Trust, Series 2021-GT1, Class A (a)(d) |
3.620 | % | 07/25/26 | 9,900,000 | 8,536,456 | |||||||||||
FMC GMSR Issuer Trust, Series 2021-GT2, Class A (d) |
3.850 | % | 10/25/26 | 14,280,000 | 12,354,618 | |||||||||||
FMC GMSR Issuer Trust, Series 2022-GT2, Class A (d) |
7.900 | % | 07/25/27 | 4,850,000 | 4,890,615 | |||||||||||
Helios Issuer, LLC, Series 2020-4, Class A (d) |
2.980 | % | 06/20/47 | 1,472,429 | 1,348,930 | |||||||||||
Helios Issuer, LLC, Series 2021-A, Class A (d) |
1.800 | % | 02/20/48 | 1,035,892 | 898,940 | |||||||||||
Helios Issuer, LLC, Series 2022-C, Class C (d) |
6.000 | % | 11/22/49 | 4,361,473 | 3,777,284 | |||||||||||
Helios Issuer, LLC, Series 2023-B, Class C (d) |
6.000 | % | 08/22/50 | 976,202 | 901,089 | |||||||||||
Hero Funding Trust, Series 2016-4B, Class B (d) |
4.990 | % | 09/20/47 | 182,128 | 179,134 | |||||||||||
Holiday Inn Timeshare Trust, Series 2020-A, Class C (d) |
3.420 | % | 10/09/39 | 700,767 | 660,875 | |||||||||||
Holiday Inn Timeshare Trust, Series 2020-A, Class D (d) |
5.500 | % | 10/09/39 | 325,938 | 308,213 | |||||||||||
38 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
Securitized — 86.4% continued |
||||||||||||||||
ABS-Other — 5.0% continued |
||||||||||||||||
Holiday Inn Timeshare Trust, Series 2020-A, Class E (d) |
6.500 | % | 10/09/39 | $ | 1,857,847 | $ | 1,747,371 | |||||||||
Loanpal Solar Loan Ltd., Series 2021-1GS, Class A (d) |
2.290 | % | 01/20/48 | 2,374,430 | 1,847,237 | |||||||||||
Loanpal Solar Loan Ltd., Series 2021-2GS, Class A (d) |
2.220 | % | 03/20/48 | 1,822,341 | 1,356,395 | |||||||||||
Mosaic Solar Loans, LLC, Series 2017-2, Class B (d) |
4.770 | % | 06/22/43 | 357,597 | 325,352 | |||||||||||
Mosaic Solar Loans, LLC, Series 2020-1A, Class B (d) |
3.100 | % | 04/20/46 | 1,053,831 | 931,259 | |||||||||||
Mosaic Solar Loans, LLC, Series 2021-1, Class D (d) |
3.710 | % | 12/20/46 | 584,313 | 498,189 | |||||||||||
Mosaic Solar Loans, LLC, Series 2023-2A, Class C (d) |
8.180 | % | 09/22/53 | 11,000,000 | 10,417,597 | |||||||||||
MVW Own Trust, Series 2021-1W, Class D (d) |
3.170 | % | 01/22/41 | 938,430 | 850,553 | |||||||||||
PNMAC GMSR Issuer Trust, Series 2022-GT1, Class A (1* SOFR + 425) (a)(d) |
9.587 | % | 05/25/27 | 3,625,000 | 3,624,873 | |||||||||||
Renew Financial, LLC, Series 2017-1, Class A (d) |
3.670 | % | 09/20/52 | 940,616 | 863,252 | |||||||||||
Renew Financial, LLC, Series 2017-1, Class B (d) |
5.750 | % | 09/20/52 | 275,741 | 264,206 | |||||||||||
Sierra Receivables Funding, Series 2022-2A, Class D (d) |
9.220 | % | 06/20/40 | 660,231 | 666,659 | |||||||||||
SPS Servicer Advance Receivables, Series 2020-T2, Class B (d) |
2.130 | % | 11/15/55 | 2,213,000 | 2,014,367 | |||||||||||
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
ABS-Other — 5.0% continued |
||||||||||||||||
SPS Servicer Advance Receivables, Series 2020-T2, Class D (d) |
3.160 | % | 11/15/55 | $ | 3,000,000 | $ | 2,646,827 | |||||||||
Westgate Resorts, Series 2020-1A, Class C (d) |
6.213 | % | 03/20/34 | 426,409 | 422,774 | |||||||||||
Westgate Resorts, Series 2023-1A, Class D (d) |
10.140 | % | 12/20/37 | 4,620,703 | 4,651,537 | |||||||||||
| 80,157,830 | ||||||||||||||||
Agency MBS CMO — 3.2% |
||||||||||||||||
FHLMC, Series 2979, Class FP (1* SOFR + 45) (a) |
5.903 | % | 05/15/35 | 245,845 | 242,946 | |||||||||||
FHLMC, Series 3121, Class FM (1* SOFR + 40) (a) |
5.853 | % | 03/15/36 | 217,118 | 214,475 | |||||||||||
FHLMC, Series 4613, Class AF (1* SOFR + 110) (a) |
6.553 | % | 11/15/37 | 396,481 | 391,761 | |||||||||||
FHLMC, Series 3925, Class FL (1* SOFR + 45) (a) |
5.903 | % | 01/15/41 | 41,623 | 41,489 | |||||||||||
FHLMC, Series 3895, Class BF (1* SOFR + 50) (a) |
5.953 | % | 07/15/41 | 174,088 | 171,919 | |||||||||||
FHLMC, Series 4314, Class PF (1* SOFR + 40) (a) |
5.853 | % | 07/15/43 | 74,329 | 73,827 | |||||||||||
FHLMC, Series 5171, Class UK |
2.000 | % | 12/25/51 | 1,163,171 | 631,956 | |||||||||||
FNMA, Series 2013-97, Class ZB |
3.500 | % | 09/25/33 | 10,127,619 | 9,684,696 | |||||||||||
FNMA, Series 2006-56, Class DC (1* SOFR + 65) (a) |
6.102 | % | 07/25/36 | 436,501 | 436,307 | |||||||||||
FNMA, Series 2006-108, Class FD (1* SOFR + 38) (a) |
5.832 | % | 11/25/36 | 196,844 | 194,162 | |||||||||||
FNMA, Series 2010-136, Class FA (1* SOFR + 50) (a) |
5.952 | % | 12/25/40 | 187,066 | 183,557 | |||||||||||
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 39 |
Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
Securitized — 86.4% continued |
||||||||||||||||
Agency MBS CMO — 3.2% continued |
||||||||||||||||
FNMA, Series 2011-86, Class KF (1* SOFR + 55) (a) |
6.002 | % | 09/25/41 | $ | 314,373 | $ | 309,857 | |||||||||
FNMA, Series 2011-127, Class ZU |
3.500 | % | 12/25/41 | 4,379,818 | 4,099,805 | |||||||||||
FNMA, Series 2012-9, Class FC (1* SOFR + 40) (a) |
5.852 | % | 02/25/42 | 134,333 | 132,330 | |||||||||||
FNMA, Series 2012-33, Class F (1* SOFR + 52) (a) |
5.972 | % | 04/25/42 | 91,641 | 90,674 | |||||||||||
FNMA, Series 2013-34, Class GP |
3.000 | % | 05/25/42 | 2,155,638 | 2,035,438 | |||||||||||
FNMA, Series 2017-28, Class LK |
4.000 | % | 03/25/53 | 962,495 | 941,051 | |||||||||||
GNMA, Series 2023-81, Class MV |
5.500 | % | 05/20/34 | 9,720,071 | 9,823,902 | |||||||||||
GNMA, Series 2023-81, Class QV |
5.500 | % | 05/20/34 | 6,649,414 | 6,782,065 | |||||||||||
GNMA, Series 2023-133, Class GV |
6.000 | % | 07/20/34 | 3,931,414 | 4,089,470 | |||||||||||
GNMA, Series 2023-67, Class AC |
6.000 | % | 05/20/53 | 8,759,771 | 8,960,582 | |||||||||||
GNMA, Series 2012-H29, Class SA (1* TSFR1M + 63) (a) |
5.952 | % | 10/20/62 | 369,855 | 368,151 | |||||||||||
GNMA, Series 2012-H23, Class SA (1* TSFR1M + 64) (a) |
5.967 | % | 10/20/62 | 2,350,280 | 2,343,071 | |||||||||||
GNMA, Series 2016-H11, Class FD (1* TSFR12M + 112) (a) |
4.869 | % | 05/20/66 | 69,653 | 69,421 | |||||||||||
| 52,312,912 | ||||||||||||||||
Agency MBS CMO Derivatives — 0.0% (c) |
||||||||||||||||
FHLMC, Series 237, Class S14 (IO) (-1* SOFR + 660) (a) |
1.147 | % | 05/15/36 | 407,356 | 48,011 | |||||||||||
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
Agency MBS CMO Derivatives — 0.0% (c) continued |
||||||||||||||||
FNMA, Series 2012-148, Class IA (IO) |
4.000 | % | 01/25/28 | $ | 1,002,990 | $ | 39,337 | |||||||||
FNMA, Class (PO) |
0.000 | % | 04/25/29 | 131,642 | 121,141 | |||||||||||
FNMA, Series 2010-44, Class CS (IO) (-1* SOFR + 655) (a) |
1.098 | % | 05/25/40 | 261,678 | 24,975 | |||||||||||
FNMA, Series 2014-45, Class IO (IO) |
4.000 | % | 08/25/44 | 377,197 | 42,466 | |||||||||||
GNMA, Series 2015-16, Class IL (IO) |
4.000 | % | 03/20/42 | 653,554 | 15,435 | |||||||||||
GNMA, Series 2013-H13, Class T1 (IO) (a) |
0.457 | % | 05/20/63 | 8,959,132 | 40,154 | |||||||||||
GNMA, Series 2016-H20, Class GI (IO) (a) |
0.193 | % | 08/20/66 | 6,463,460 | 8,039 | |||||||||||
GNMA, Series 2018-H08, Class NI (IO) (a) |
0.768 | % | 05/20/68 | 5,002,700 | 23,942 | |||||||||||
GNMA, Series 2019-H04, Class IO (IO) (a) |
1.534 | % | 03/20/69 | 13,131,621 | 179,100 | |||||||||||
| 542,600 | ||||||||||||||||
Agency MBS Passthrough — 5.0% |
||||||||||||||||
FHLMC, Pool #G6-0257 |
5.500 | % | 06/01/41 | 345,845 | 356,657 | |||||||||||
FHLMC, Pool #84-1354 |
3.480 | % | 11/01/48 | 4,162,864 | 4,111,709 | |||||||||||
FHLMC, Pool #QG-9457 |
6.500 | % | 08/01/53 | 13,814,860 | 14,191,607 | |||||||||||
FNMA, Pool #BP6608 |
2.205 | % | 08/01/50 | 2,098,289 | 1,941,716 | |||||||||||
FNMA, Pool #BM7138 |
1.694 | % | 10/01/51 | 8,103,035 | 7,270,635 | |||||||||||
GNMA, Pool #CM7497C |
5.000 | % | 08/20/52 | 6,149,199 | 6,009,472 | |||||||||||
GNMA, Pool #CW0334C |
7.000 | % | 07/20/63 | 5,379,770 | 5,503,242 | |||||||||||
GNMA, Pool #CW0526C |
7.000 | % | 08/20/63 | 8,577,034 | 8,773,888 | |||||||||||
GNMA, Series 2023-112, Class ET |
7.000 | % | 08/20/63 | 30,603,140 | 32,949,875 | |||||||||||
| 81,108,801 | ||||||||||||||||
Auto Loan — 7.7% |
||||||||||||||||
ACM Auto Trust, Series 2023-1A, Class C (d) |
8.590 | % | 01/22/30 | 4,000,000 | 3,981,837 | |||||||||||
40 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
Securitized — 86.4% continued |
||||||||||||||||
Auto Loan — 7.7% continued |
||||||||||||||||
ACM Auto Trust, Series 2023-2A, Class A (d) |
7.970 | % | 06/20/30 | $ | 2,580,684 | $ | 2,589,477 | |||||||||
American Credit Acceptance Receivables Trust, Series 2020-3, Class F (d) |
5.940 | % | 06/14/27 | 6,750,000 | 6,722,786 | |||||||||||
American Credit Acceptance Receivables Trust, Series 2020-4, Class F (d) |
5.220 | % | 08/13/27 | 2,800,000 | 2,787,611 | |||||||||||
Arivo Acceptance Auto Loan Receivables Trust, Series 2021-1A, Class A (d) |
1.190 | % | 01/15/27 | 1,107,072 | 1,090,016 | |||||||||||
Arivo Acceptance Auto Loan Receivables Trust, Series 2021-1A, Class B (d) |
2.020 | % | 02/16/27 | 2,223,000 | 2,126,747 | |||||||||||
Arivo Acceptance Auto Loan Receivables Trust, Series 2022-2A, Class C (d) |
9.840 | % | 03/15/29 | 5,700,000 | 5,882,955 | |||||||||||
CarNow Auto Receivables Trust, Series 2021-1A, Class C (d) |
2.160 | % | 02/17/26 | 76,797 | 76,609 | |||||||||||
CarNow Auto Receivables Trust, Series 2021-1A, Class D (d) |
3.640 | % | 02/17/26 | 2,250,000 | 2,235,980 | |||||||||||
CarNow Auto Receivables Trust, Series 2023-1A, Class B (d) |
6.950 | % | 03/16/26 | 2,719,485 | 2,710,201 | |||||||||||
CarNow Auto Receivables Trust, Series 2021-1A, Class E (d) |
5.120 | % | 07/15/27 | 2,500,000 | 2,473,735 | |||||||||||
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
Auto Loan — 7.7% continued |
||||||||||||||||
CarNow Auto Receivables Trust, Series 2023-1A, Class D (d) |
7.990 | % | 02/15/28 | $ | 3,500,000 | $ | 3,373,773 | |||||||||
Chase Auto Credit Linked Notes, Series 2021-3, Class D (d) |
1.009 | % | 02/26/29 | 729,313 | 703,154 | |||||||||||
Chase Auto Credit Linked Notes, Series 2021-3, Class E (d) |
2.102 | % | 02/26/29 | 607,761 | 588,505 | |||||||||||
Credit Acceptance Auto Loan Trust, Series 2023-3A, Class C (d) |
7.620 | % | 12/15/33 | 7,000,000 | 7,091,405 | |||||||||||
Credit Acceptance Auto Loan Trust, Series 2023-5A, Class C (d) |
7.300 | % | 04/17/34 | 2,000,000 | 2,009,850 | |||||||||||
Credito Real USA Auto Receivable, Series 2021-1, Class A (d) |
1.350 | % | 02/16/27 | 158,362 | 157,874 | |||||||||||
FHF Trust, Series 2021-1, Class A (d) |
1.270 | % | 03/15/27 | 571,388 | 552,580 | |||||||||||
FHF Trust, Series 2021-2A, Class B (d) |
1.630 | % | 09/15/27 | 10,900,000 | 10,043,406 | |||||||||||
First Help Financial, LLC, Series 2023-2, Class C (d) |
8.104 | % | 12/17/29 | 2,500,000 | 2,591,267 | |||||||||||
First Help Financial, LLC, Series 2023-1A, Class C (d) |
7.880 | % | 07/15/30 | 12,907,000 | 12,692,608 | |||||||||||
First Help Financial, LLC, Series 2023-2, Class D (d) |
9.503 | % | 10/15/30 | 4,500,000 | 4,657,556 | |||||||||||
JPMorgan Chase Bank, NA, Series 2021-2, Class E (d) |
2.280 | % | 12/26/28 | 312,149 | 306,056 | |||||||||||
Lobel Automobile Receivables Trust, Series 2023-1, Class A (d) |
6.970 | % | 07/15/26 | 2,585,771 | 2,590,619 | |||||||||||
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 41 |
Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
Securitized — 86.4% continued |
||||||||||||||||
Auto Loan — 7.7% continued |
||||||||||||||||
Lobel Automobile Receivables Trust, Series 2023-2, Class A (d) |
7.590 | % | 04/16/29 | $ | 5,944,892 | $ | 5,983,380 | |||||||||
Merchants Fleet Funding, LLC, Series 2023-1A, Class D (d) |
8.200 | % | 05/20/36 | 5,700,000 | 5,784,856 | |||||||||||
Merchants Fleet Funding, LLC, Series 2023-1A, Class E (d) |
10.800 | % | 05/20/36 | 9,640,000 | 9,611,014 | |||||||||||
OneMain Direct Auto Receivables, Series 2019-1, Class D (d) |
4.680 | % | 04/14/31 | 5,500,000 | 5,307,733 | |||||||||||
Satander Bank, NA, Series 2023-B, Class F (d) |
12.240 | % | 12/15/33 | 4,000,000 | 4,016,552 | |||||||||||
US Bank National Association, Series 2023-1, Class B (d) |
6.789 | % | 08/25/32 | 2,500,000 | 2,509,252 | |||||||||||
Veros Auto Receivables Trust, Series 2021-1, Class B (d) |
1.490 | % | 10/15/26 | 2,903,393 | 2,864,630 | |||||||||||
Veros Auto Receivables Trust, Series 2021-1, Class C (d) |
3.640 | % | 08/15/28 | 5,000,000 | 4,794,021 | |||||||||||
Veros Auto Receivables Trust, Series 2023-1, Class A (d) |
7.120 | % | 11/15/28 | 3,955,136 | 3,970,360 | |||||||||||
| 124,878,405 | ||||||||||||||||
CRE/CLO — 7.8% |
||||||||||||||||
A10 Securitization, Series 2021-D, Class D (d) |
4.409 | % | 10/01/38 | 7,546,818 | 6,679,938 | |||||||||||
A10 Securitization, Series 2021-D, Class E (d) |
4.937 | % | 10/01/38 | 3,575,985 | 3,131,876 | |||||||||||
A10 Securitization, Series 2020-C, Class C (d) |
3.363 | % | 08/15/40 | 1,639,058 | 1,630,644 | |||||||||||
A10 Securitization, Series 2020-C, Class D (d) |
4.129 | % | 08/15/40 | 11,991,000 | 11,926,057 | |||||||||||
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
CRE/CLO — 7.8% continued |
||||||||||||||||
A10 Securitization, Series 2020-C, Class E (d) |
5.465 | % | 08/15/40 | $ | 1,050,000 | $ | 1,002,590 | |||||||||
Acre Commercial Mortgage Trust, Series 2021-FL4, Class D (1* TSFR1M + 271) (a)(d) |
8.073 | % | 12/18/37 | 6,000,000 | 5,689,020 | |||||||||||
Acre Commercial Mortgage Trust, Series 2021-FL4, Class E (1* TSFR1M + 321) (a)(d) |
8.573 | % | 12/18/37 | 2,000,000 | 1,878,954 | |||||||||||
ACREC, Series 2021-FL1, Class E (1* TSFR1M + 311) (a)(d) |
8.473 | % | 10/16/36 | 3,000,000 | 2,786,583 | |||||||||||
AREIT CRE Trust, Series 2019-CRE3, Class C (1* TSFR1M + 201) (a)(d)(e) |
7.376 | % | 09/14/36 | 1,589,000 | 1,449,619 | |||||||||||
AREIT CRE Trust, Series 2021-CRE5, Class A (1* TSFR1M + 119) (a)(d) |
6.553 | % | 11/17/38 | 3,493,453 | 3,427,717 | |||||||||||
Bancorp Commercial Mortgage Trust (The), Series 2017-CRE2, Class D (1* Prime + 375) (a)(d) |
9.193 | % | 08/15/32 | 165,016 | 163,161 | |||||||||||
BDS Ltd., Series 2021-FL8, Class D (1* TSFR1M + 201) (a)(d) |
7.373 | % | 01/18/36 | 2,750,000 | 2,654,751 | |||||||||||
BrightSpire Capital, Inc., Series 2021-FL1, Class A (1* TSFR1M + 126) (a)(d) |
6.620 | % | 08/19/38 | 6,679,300 | 6,495,867 | |||||||||||
BXMT Ltd., Series 2020-FL2, Class A (1* TSFR1M + 101) (d) |
6.344 | % | 02/15/38 | 8,981,183 | 8,561,574 | |||||||||||
BXMT Ltd., Series 2020-FL2, Class D (1* TSFR1M + 206) (a)(d)(e) |
7.394 | % | 02/15/38 | 4,725,000 | 3,549,132 | |||||||||||
42 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
Securitized — 86.4% continued |
||||||||||||||||
CRE/CLO — 7.8% continued |
||||||||||||||||
BXMT Ltd., Series 2020-FL2, Class E (1* TSFR1M + 216) (a)(d)(e) |
7.494 | % | 02/15/38 | $ | 3,500,000 | $ | 2,434,736 | |||||||||
BXMT Ltd., Series 2020-FL2, Class B (1* TSFR1M + 151) (d) |
6.844 | % | 02/18/38 | 5,250,000 | 4,600,186 | |||||||||||
BXMT Ltd., Series 2021-FL4, Class D (1* TSFR1M + 236) (a)(d)(e) |
7.694 | % | 05/15/38 | 8,250,000 | 6,650,845 | |||||||||||
FS Rialto Issuer Ltd., Series 2021-FL2, Class A (1* TSFR1M + 133) (d) |
6.693 | % | 05/16/38 | 9,253,959 | 9,115,038 | |||||||||||
FS Rialto Issuer Ltd., Series 2021-FL2, Class AS (1* TSFR1M + 166) (d) |
7.023 | % | 05/16/38 | 1,586,500 | 1,533,398 | |||||||||||
HERA Commercial Mortgage Ltd., Series 2021-FL1, Class C (1* TSFR1M + 206) (d) |
7.396 | % | 02/18/38 | 10,000,000 | 9,521,910 | |||||||||||
KKR Financial Management, Series 2021-FL2, Class A (1* TSFR1M + 118) (d) |
6.546 | % | 02/15/39 | 8,000,000 | 7,784,464 | |||||||||||
KKR Real Estate Finance Trust, Series 2021-FL2, Class A-S (1* TSFR1M + 141) (d) |
6.776 | % | 02/15/39 | 2,250,000 | 2,139,845 | |||||||||||
LoanCore Issuer Ltd., Series 2021-CRE6, Class A (1* TSFR1M + 141) (d) |
6.776 | % | 11/15/38 | 4,320,000 | 4,224,567 | |||||||||||
MF1 Multifamily Housing Mortgage Trust, Series 2021-FL5, Class AS (1* TSFR1M + 131) (a)(d) |
6.676 | % | 07/15/36 | 1,904,000 | 1,862,965 | |||||||||||
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
CRE/CLO — 7.8% continued |
||||||||||||||||
MF1 Multifamily Housing Mortgage Trust, Series 2021-FL5, Class D (1* TSFR1M + 261) (d) |
7.976 | % | 07/15/36 | $ | 500,000 | $ | 478,056 | |||||||||
MF1 Multifamily Housing Mortgage Trust, Series 2022-FL8, Class E (1* TSFR1M + 315) (d) |
8.506 | % | 02/19/37 | 300,000 | 278,884 | |||||||||||
MF1 Multifamily Housing Mortgage Trust, Series 2022-FL10, Class D (1* TSFR1M + 573) (a)(d) |
11.085 | % | 09/17/37 | 1,250,000 | 1,245,106 | |||||||||||
PFP Ltd., Series 2021-8, Class A (1* TFSR1M + 111) (a)(d) |
6.476 | % | 08/09/37 | 1,373,496 | 1,353,290 | |||||||||||
PFP Ltd., Series 2021-8, Class C (1* TFSR1M + 191) (a)(d) |
7.276 | % | 08/09/37 | 2,000,000 | 1,914,476 | |||||||||||
PFP Ltd., Series 2021-7, Class D (1* TSFR1M + 251) (a)(d) |
7.876 | % | 04/14/38 | 2,499,875 | 2,405,312 | |||||||||||
PFP Ltd., Series 2021-7, Class E (1* TFSR1M + 311) (d) |
8.476 | % | 04/14/38 | 2,249,888 | 2,162,644 | |||||||||||
Shelter Growth Capital Partners, LLC, Series 2021-FL3, Class A (1* TSFR1M + 119) (a)(d) |
6.556 | % | 09/15/36 | 493,147 | 491,714 | |||||||||||
Shelter Growth Capital Partners, LLC, Series 2021-FL3, Class C (1* TSFR1M + 226) (a)(d) |
7.626 | % | 09/15/36 | 2,000,000 | 1,909,332 | |||||||||||
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 43 |
Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
Securitized — 86.4% continued |
||||||||||||||||
CRE/CLO — 7.8% continued |
||||||||||||||||
Starwood Commercial Mortgage Trust, Series 2019-FL1, Class AS (1* TSFR1M + 151) (d) |
6.876 | % | 07/15/38 | $ | 1,367,000 | $ | 1,310,692 | |||||||||
TPG Real Estate Finance, Series 2019-FL3, Class C (1* TSFR1M + 221) (d) |
7.576 | % | 10/17/34 | 2,162,842 | 2,120,251 | |||||||||||
| 126,565,194 | ||||||||||||||||
Credit Cards — 10.1% |
||||||||||||||||
Brex Commercial Charge Card Master Trust, Series 2022-1, Class A (d) |
4.630 | % | 07/15/25 | 7,000,000 | 6,937,843 | |||||||||||
Continental Credit Card, LLC, Series 2019-1, Class B (d) |
4.950 | % | 08/15/26 | 4,434,011 | 4,413,251 | |||||||||||
Continental Credit Card, LLC, Series 2019-1, Class C (d) |
6.160 | % | 08/15/26 | 3,000,000 | 2,929,341 | |||||||||||
Continental Credit Card, LLC, Series 2020-A, Class A (d) |
2.240 | % | 12/15/28 | 3,600,000 | 3,546,912 | |||||||||||
Continental Credit Card, LLC, Series 2020-A, Class B (d) |
3.660 | % | 12/15/28 | 9,200,000 | 8,776,371 | |||||||||||
Continental Credit Card, LLC, Series 2021-A, Class B (d) |
3.490 | % | 12/17/29 | 6,700,000 | 6,269,795 | |||||||||||
Continental Credit Card, LLC, Series 2021-A, Class C (d) |
4.020 | % | 12/17/29 | 6,900,000 | 6,185,824 | |||||||||||
Continental Credit Card, LLC, Series 2021-A, Class D (d) |
6.010 | % | 12/17/29 | 16,210,000 | 14,077,725 | |||||||||||
Continental Credit Card, LLC, Series 2022-A, Class C (d) |
9.330 | % | 10/15/30 | 4,100,000 | 4,101,885 | |||||||||||
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
Credit Cards — 10.1% continued |
||||||||||||||||
Continental Credit Card, LLC, Series 2022-A, Class D (d) |
12.420 | % | 10/15/30 | $ | 5,000,000 | $ | 4,922,450 | |||||||||
Genesis Private Label Amortization Trust, Series 2020-1, Class D (d) |
6.630 | % | 07/20/30 | 5,309,189 | 5,276,901 | |||||||||||
Genesis Private Label Amortization Trust, Series 2020-1, Class E (d) |
9.760 | % | 07/20/30 | 2,625,000 | 2,581,674 | |||||||||||
Genesis Sales Finance Master Trust, Series 2021-AA, Class D (d) |
2.090 | % | 12/21/26 | 2,350,000 | 2,099,386 | |||||||||||
Genesis Sales Finance Master Trust, Series 2021-AA, Class E (d) |
3.770 | % | 12/21/26 | 8,000,000 | 6,925,361 | |||||||||||
Genesis Sales Finance Master Trust, Series 2021-AA, Class F (d) |
5.590 | % | 12/21/26 | 6,000,000 | 5,073,707 | |||||||||||
Genesis Sales Finance Master Trust, Series 2022-B, Class C (d) |
9.530 | % | 09/20/27 | 5,000,000 | 5,041,666 | |||||||||||
Genesis Sales Finance Master Trust, Series 2022-A, Class D (d) |
10.970 | % | 09/20/27 | 4,350,000 | 4,355,625 | |||||||||||
Mercury Financial Credit Card Master Trust, Series 2022-1A, Class A (d) |
2.500 | % | 09/21/26 | 23,685,000 | 23,035,493 | |||||||||||
Mercury Financial Credit Card Master Trust, Series 2022-1A, Class B (d) |
3.200 | % | 09/21/26 | 4,000,000 | 3,786,230 | |||||||||||
44 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
Securitized — 86.4% continued |
||||||||||||||||
Credit Cards — 10.1% continued |
||||||||||||||||
Mercury Financial Credit Card Master Trust, Series 2022-2A, Class C (d) |
10.830 | % | 03/22/27 | $ | 8,000,000 | $ | 7,913,511 | |||||||||
Mercury Financial Credit Card Master Trust, Series 2022-3A, Class B (d) |
10.680 | % | 06/21/27 | 3,500,000 | 3,506,552 | |||||||||||
Mercury Financial Credit Card Master Trust, Series 2022-3A, Class D (d) |
17.760 | % | 06/21/27 | 4,000,000 | 4,038,972 | |||||||||||
Mercury Financial Credit Card Master Trust, Series 2023-1A, Class B (d) |
8.040 | % | 09/20/27 | 7,000,000 | 7,076,532 | |||||||||||
Mercury Financial Credit Card Master Trust, Series 2023-1A, Class D (d) |
17.070 | % | 09/20/27 | 10,000,000 | 10,114,666 | |||||||||||
Mission Lane Credit Card Master, Series 2023-A, Class D (d) |
11.950 | % | 07/17/28 | 5,500,000 | 5,509,938 | |||||||||||
Mission Lane Credit Card Master, Series 2023-A, Class E (d) |
15.730 | % | 07/17/28 | 5,500,000 | 5,484,306 | |||||||||||
| 163,981,917 | ||||||||||||||||
Equipment — 2.2% |
||||||||||||||||
Business Jet Securities, LLC, Series 2020-1, Class B (d) |
3.967 | % | 11/15/35 | 404,153 | 384,998 | |||||||||||
Business Jet Securities, LLC, Series 2020-1, Class C (d) |
7.142 | % | 11/15/35 | 568,006 | 555,074 | |||||||||||
Business Jet Securities, LLC, Series 2021-1A, Class B (d) |
2.918 | % | 04/15/36 | 830,043 | 758,518 | |||||||||||
Business Jet Securities, LLC, Series 2021-1A, Class C (d) |
5.067 | % | 04/15/36 | 1,132,961 | 1,068,637 | |||||||||||
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
Equipment — 2.2% continued |
||||||||||||||||
CPF IV, LLC, Series 2023-2, Class A (d) |
7.480 | % | 03/15/32 | $ | 13,358,198 | $ | 13,405,699 | |||||||||
CPF IV, LLC, Series 2023-2, Class C (d) |
7.560 | % | 03/15/32 | 7,000,000 | 6,568,775 | |||||||||||
DEXT, Series 2023-2, Class D (d) |
8.300 | % | 05/15/34 | 2,120,000 | 2,057,278 | |||||||||||
NMEF Funding, LLC, Series 2023-A, Class C (d) |
8.040 | % | 06/17/30 | 3,000,000 | 2,989,452 | |||||||||||
Octane Receivables Trust, Series 2021-1A, Class C (d) |
2.230 | % | 11/20/28 | 3,000,000 | 2,832,714 | |||||||||||
Stellar Jay Ireland DAC, Series 2021-1, Class B (d) |
5.926 | % | 10/15/41 | 6,028,165 | 4,817,879 | |||||||||||
| 35,439,024 | ||||||||||||||||
HECM — 4.8% |
||||||||||||||||
Boston Lending Trust, Series 2022-1, Class M2 (d)(e) |
2.750 | % | 02/25/62 | 1,053,412 | 701,519 | |||||||||||
Brean Asset Backed Securities, Series 2022-RM4, Class M1 (d)(e) |
3.000 | % | 07/25/62 | 1,456,732 | 1,028,440 | |||||||||||
Brean Asset Backed Securities, Series 2023-SRM1, Class M2 (d) |
4.000 | % | 09/25/63 | 4,796,065 | 4,018,519 | |||||||||||
Brean Asset Backed Securities, Series 2023-SRM1, Class M3 (d) |
4.000 | % | 09/25/63 | 4,038,791 | 3,132,045 | |||||||||||
Brean Asset Backed Securities, Series 2023-RM7, Class A1 (d) |
4.500 | % | 03/25/78 | 8,000,000 | 7,287,590 | |||||||||||
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 45 |
Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
Securitized — 86.4% continued |
||||||||||||||||
HECM — 4.8% continued |
||||||||||||||||
Brean Asset Backed Securities, Series 2023-RM7, Class A2 (d) |
4.500 | % | 03/25/78 | $ | 2,000,000 | $ | 1,699,920 | |||||||||
Brean Asset Backed Securities, Series 2023-RM7, Class M1 (d) |
4.500 | % | 03/25/78 | 3,886,853 | 2,628,207 | |||||||||||
Cascade Funding Mortgage Trust, Series 2022-HB8, Class A (d) |
3.750 | % | 04/25/25 | 4,224,185 | 4,147,875 | |||||||||||
Cascade Funding Mortgage Trust, Series 2022-HB8, Class M3 (d) |
3.750 | % | 04/25/25 | 3,000,000 | 2,746,896 | |||||||||||
Cascade Funding Mortgage Trust, Series 2021-HB7, Class M3 (d) |
3.849 | % | 10/27/31 | 3,000,000 | 2,806,224 | |||||||||||
Finance of America HECM Buyout Trust, Series 2022-HB1, Class M3 (a)(d) |
5.084 | % | 02/25/32 | 1,600,000 | 1,465,208 | |||||||||||
Finance of America HECM Buyout Trust, Series 2022-HB1, Class M5 (d) |
7.870 | % | 02/25/32 | 8,000,000 | 7,025,893 | |||||||||||
Finance of America HECM Buyout Trust, Series 2022-HB2, Class M3 (d) |
6.000 | % | 08/01/32 | 6,500,000 | 6,040,197 | |||||||||||
Ocwen Loan Investment Trust, Series 2023-HB1, Class M3 (d) |
3.000 | % | 06/25/36 | 9,000,000 | 7,315,533 | |||||||||||
RMF Buyout Issuance Trust, Series 2021-HB1, Class A (d) |
1.259 | % | 11/25/31 | 1,754,188 | 1,688,274 | |||||||||||
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
HECM — 4.8% continued |
||||||||||||||||
RMF Buyout Issuance Trust, Series 2021-HB1, Class M3 (d) |
3.690 | % | 11/25/31 | $ | 3,000,000 | $ | 2,649,128 | |||||||||
RMF Buyout Issuance Trust, Series 2021-HB1, Class M4 (d) |
4.704 | % | 11/25/31 | 6,350,000 | 5,506,235 | |||||||||||
RMF Buyout Issuance Trust, Series 2020-HB1, Class M2 (d) |
3.630 | % | 10/25/50 | 1,000,000 | 869,180 | |||||||||||
RMF Proprietary Issuance Trust, Series 2021-2, Class A (a)(d) |
2.125 | % | 09/25/61 | 8,281,773 | 6,696,294 | |||||||||||
RMF Proprietary Issuance Trust, Series 2021-2, Class M2 (d) |
2.125 | % | 09/25/61 | 2,621,860 | 1,635,205 | |||||||||||
RMF Proprietary Issuance Trust, Series 2022-1, Class A (a)(d) |
3.000 | % | 01/25/62 | 929,612 | 781,138 | |||||||||||
RMF Proprietary Issuance Trust, Series 2022-2, Class M3 (a)(d) |
3.750 | % | 06/25/62 | 2,600,000 | 1,486,027 | |||||||||||
RMF Proprietary Issuance Trust II, Series 2022-1, Class M1 (a)(d) |
3.000 | % | 01/25/62 | 1,600,000 | 1,139,006 | |||||||||||
RMF Proprietary Issuance Trust III, Series 2022-1, Class M2 (d) |
3.000 | % | 01/25/62 | 4,000,000 | 2,495,569 | |||||||||||
| 76,990,122 | ||||||||||||||||
Hospitality — 1.0% |
||||||||||||||||
BHMS Mortgage Trust, Series 2018-ATLS, Class B (1* TSFR1M + 155) (d) |
7.159 | % | 07/15/35 | 3,500,000 | 3,437,732 | |||||||||||
BX Trust, Series 2018-GW, Class E (1* TSFR1M + 227) (a)(d) |
7.629 | % | 05/15/35 | 6,000,000 | 5,878,874 | |||||||||||
46 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
Securitized — 86.4% continued |
||||||||||||||||
Hospitality — 1.0% continued |
||||||||||||||||
Goldman Sachs Mortgage Securities Corp. Trust, Series 2018-HULA, Class C (1* TSFR1M + 150) (a)(d) |
7.123 | % | 07/15/25 | $ | 3,476,136 | $ | 3,419,177 | |||||||||
Hawaii Hotel Trust, Series 2019-MAUI, Class E (1* TSFR1M + 221) (d) |
7.568 | % | 05/15/38 | 3,000,000 | 2,935,836 | |||||||||||
| 15,671,619 | ||||||||||||||||
Industrial — 1.0% |
||||||||||||||||
BX Trust, Series 2021-VOLT, Class C (1* TSFR1M + 121) (d) |
6.576 | % | 09/15/36 | 10,000,000 | 9,635,887 | |||||||||||
BX Trust, Series 2021-VOLT, Class D (1* TSFR1M + 176) (a)(d) |
7.126 | % | 09/15/36 | 6,405,000 | 6,155,712 | |||||||||||
| 15,791,599 | ||||||||||||||||
Manufactured Housing — 0.1% |
||||||||||||||||
Cascade Manufactured Housing Asset Trust, Series 2019-MH1, Class M (a)(d) |
5.985 | % | 11/25/44 | 1,100,000 | 1,050,002 | |||||||||||
Multifamily — 9.5% |
||||||||||||||||
FREMF Mortgage Trust, Series 2017-KF39, Class B (1* SOFR + 250) (a)(d) |
7.945 | % | 11/25/24 | 3,844,388 | 3,784,070 | |||||||||||
FREMF Mortgage Trust, Series 2018-KF42, Class B (1* SOFR + 220) (a)(d) |
7.634 | % | 12/25/24 | 968,352 | 949,081 | |||||||||||
FREMF Mortgage Trust, Series 2018-KF44, Class B (1* SOFR + 215) (a)(d) |
7.595 | % | 02/25/25 | 1,494,342 | 1,463,719 | |||||||||||
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
Multifamily — 9.5% continued |
||||||||||||||||
FREMF Mortgage Trust, Series 2018-KF45, Class B (1* SOFR + 195) (a)(d) |
7.384 | % | 03/25/25 | $ | 1,125,038 | $ | 1,085,022 | |||||||||
FREMF Mortgage Trust, Series 2018-KF53, Class B (1* SOFR + 205) (a)(d) |
7.495 | % | 10/25/25 | 2,133,604 | 2,059,890 | |||||||||||
FREMF Mortgage Trust, Series 2019-KF62, Class B (1* SOFR + 205) (a)(d) |
7.495 | % | 04/25/26 | 3,253,191 | 3,040,449 | |||||||||||
FREMF Mortgage Trust, Series 2018-KF43, Class B (1* SOFR + 215) (a)(d) |
7.595 | % | 01/25/28 | 2,254,710 | 2,132,307 | |||||||||||
FREMF Mortgage Trust, Series 2018-KF48, Class B (1* SOFR + 205) (d) |
7.495 | % | 06/25/28 | 3,078,461 | 2,755,526 | |||||||||||
FREMF Mortgage Trust, Series 2018-KF50, Class B (1* SOFR + 190) (a)(d) |
7.334 | % | 07/25/28 | 2,503,081 | 2,237,631 | |||||||||||
FREMF Mortgage Trust, Series 2019-KF57, Class B (1* SOFR + 225) (a)(d) |
7.695 | % | 01/25/29 | 4,163,920 | 3,898,024 | |||||||||||
FREMF Mortgage Trust, Series 2019-KF59, Class B (1* SOFR + 235) (a)(d) |
7.795 | % | 02/25/29 | 2,045,713 | 1,924,359 | |||||||||||
FREMF Mortgage Trust, Series 2019-KF67, Class B (1* SOFR + 225) (a)(d) |
7.695 | % | 08/25/29 | 5,356,547 | 4,981,866 | |||||||||||
MultiFamily Connecticut Avenue, Series 2019-01, Class B-10 (1* SOFR + 550) (a)(d) |
10.952 | % | 10/25/49 | 8,960,000 | 8,583,133 | |||||||||||
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 47 |
Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
Securitized — 86.4% continued |
||||||||||||||||
Multifamily — 9.5% continued |
||||||||||||||||
MultiFamily Connecticut Avenue, Series 2020-01, Class CE (1* SOFR + 750) (a)(d) |
12.952 | % | 03/25/50 | $ | 8,563,000 | $ | 8,367,889 | |||||||||
MultiFamily Structured Credit Risk, Series 2021-MN2, Class M-1 (1* SOFR + 180) (a)(d) |
7.137 | % | 07/25/41 | 15,879,962 | 14,853,094 | |||||||||||
MultiFamily Structured Credit Risk, Series 2021-MN2, Class M2 (1* SOFR30A + 335) (d) |
8.687 | % | 07/25/41 | 39,250,000 | 34,185,290 | |||||||||||
MultiFamily Structured Credit Risk, Series 2021-MN2, Class B1 (1* SOFR30A + 550) (a)(d) |
10.837 | % | 07/25/41 | 6,154,000 | 4,826,540 | |||||||||||
MultiFamily Structured Credit Risk, Series 2021-MN1, Class M-1 (1* SOFR + 200) (a)(d) |
7.337 | % | 01/25/51 | 6,437,633 | 6,245,831 | |||||||||||
MultiFamily Structured Credit Risk, Series 2021-MN1, Class M2 (1* SOFR + 400) (a)(d) |
9.087 | % | 01/25/51 | 15,500,000 | 14,800,507 | |||||||||||
MultiFamily Structured Credit Risk, Series 2021-MN3, Class M-1 (1* SOFR + 230) (a)(d) |
7.637 | % | 11/25/51 | 18,143,262 | 17,646,702 | |||||||||||
MultiFamily Structured Credit Risk, Series 2021-MN3, Class M2 (1* SOFR + 400) (a)(d) |
9.337 | % | 11/25/51 | 5,400,000 | 5,003,202 | |||||||||||
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
Multifamily — 9.5% continued |
||||||||||||||||
MultiFamily Structured Credit Risk, Series 2021-MN3, Class B1 (1* SOFR + 685) (a)(d) |
12.187 | % | 11/25/51 | $ | 2,500,000 | $ | 2,170,008 | |||||||||
MultiFamily Structured Credit Risk, Series 2022-MN4, Class M-1 (1* SOFR + 425) (a)(d) |
9.578 | % | 05/25/52 | 6,673,688 | 6,718,598 | |||||||||||
| 153,712,738 | ||||||||||||||||
Non-Agency MBS 2.0 — 0.3% |
||||||||||||||||
Chase Mortgage Finance Corp., Series 2021-CL1, Class M3 (1* SOFR + 155) (a) |
6.887 | % | 02/25/50 | 2,160,407 | 1,925,497 | |||||||||||
J.P. Morgan Wealth Management, Series 2021-CL1, Class M1 (1* SOFR + 130) (a)(d) |
6.637 | % | 03/25/51 | 1,833,506 | 1,729,807 | |||||||||||
J.P. Morgan Wealth Management, Series 2021-CL1, Class M3 (1* SOFR + 180) (a)(d) |
7.137 | % | 03/25/51 | 1,383,848 | 1,264,074 | |||||||||||
| 4,919,378 | ||||||||||||||||
Non-Performing Loan — 0.1% |
||||||||||||||||
Cascade Funding Mortgage Trust, Series 2021-EBO1, Class M3 (a)(d) |
3.086 | % | 11/25/50 | 1,662,000 | 1,457,602 | |||||||||||
Non-QM — 0.0% (c) |
||||||||||||||||
Citigroup Mortgage Loan Trust, Inc., Series 2004-UST1, Class A3 (a) |
6.098 | % | 08/25/34 | 3,663 | 3,494 | |||||||||||
48 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
Securitized — 86.4% continued |
||||||||||||||||
Office — 0.5% |
||||||||||||||||
Drop Mortgage Trust, Series 2021-FILE, Class A (1* TSFR1M + 126) (d) |
6.626 | % | 10/15/43 | $ | 3,500,000 | $ | 3,233,125 | |||||||||
Drop Mortgage Trust, Series 2021-FILE, Class C (1* TSFR1M + 236) (a)(d) |
7.726 | % | 10/15/43 | 5,500,000 | 4,441,295 | |||||||||||
| 7,674,420 | ||||||||||||||||
Residential Transition Loan — 6.3% |
||||||||||||||||
AlphaFlow Transitional Mortgage Co., Series 2021-WL1, Class A1 (d) |
3.280 | % | 01/25/26 | 5,950,966 | 5,721,723 | |||||||||||
AlphaFlow Transitional Mortgage Co., Series 2021-WL1, Class A2 (d) |
5.610 | % | 01/25/26 | 4,513,707 | 4,352,761 | |||||||||||
Antler Mortgage Trust, Series 2021-RTL1, Class M (a)(d) |
5.438 | % | 05/25/25 | 16,188,000 | 14,990,287 | |||||||||||
Corevest American Finance Ltd., Series 2021-RTL1, Class A2 (d) |
3.104 | % | 03/28/29 | 7,500,000 | 6,960,789 | |||||||||||
LHOME Mortgage Trust, Series 2021-RTL1, Class M (a)(d) |
4.458 | % | 02/25/26 | 2,750,000 | 2,529,000 | |||||||||||
LHOME Mortgage Trust, Series 2021-RTL2, Class A2 (d) |
2.783 | % | 06/25/26 | 1,500,000 | 1,393,693 | |||||||||||
LHOME Mortgage Trust, Series 2021-RTL2, Class M (d) |
4.458 | % | 06/25/26 | 4,350,000 | 4,059,033 | |||||||||||
LHOME Mortgage Trust, Series 2021-RTL3, Class A2 (d) |
3.228 | % | 09/25/26 | 8,250,000 | 7,642,498 | |||||||||||
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
Residential Transition Loan — 6.3% continued |
||||||||||||||||
LHOME Mortgage Trust, Series 2021-RTL3, Class M (d) |
5.193 | % | 09/25/26 | $ | 5,000,000 | $ | 4,633,546 | |||||||||
LHOME Mortgage Trust, Series 2022-RTL1, Class M (d) |
6.900 | % | 02/25/27 | 7,927,500 | 7,407,260 | |||||||||||
New York Mortgage Trust, Series 2022-BPL1, Class A2 (d) |
4.948 | % | 11/25/27 | 5,500,000 | 5,333,815 | |||||||||||
ROC Securities Trust, Series 2021-RTL1, Class A2 (d) |
3.351 | % | 08/25/26 | 7,900,000 | 7,326,067 | |||||||||||
ROC Securities Trust, Series 2021-RTL1, Class M (d) |
5.682 | % | 08/25/26 | 6,745,000 | 6,114,142 | |||||||||||
Toorak Mortgage Corp., Series 2022-1, Class A2 (d) |
4.948 | % | 03/25/29 | 8,000,000 | 7,863,333 | |||||||||||
TVC Mortgage Trust, Series 2023-RTL1, Class A2 (d) |
9.500 | % | 11/25/27 | 15,000,000 | 15,050,100 | |||||||||||
| 101,378,047 | ||||||||||||||||
Retail — 1.5% |
||||||||||||||||
BX Trust, Series 2021-VIEW, Class E (1* SOFR + 360) (a)(d)(e) |
9.076 | % | 06/15/36 | 4,690,500 | 4,271,004 | |||||||||||
Credit Suisse Mortgage Trust, Series 2018-SITE, Class C (a)(d) |
4.941 | % | 04/15/36 | 4,575,000 | 4,540,784 | |||||||||||
Wells Fargo Mortgage Trust, Series 2021-SAVE, Class A (1* SOFR + 115) (d) |
6.626 | % | 02/15/40 | 5,408,638 | 5,257,962 | |||||||||||
Wells Fargo Mortgage Trust, Series 2021-SAVE, Class C (1* SOFR + 180) (a)(d) |
7.276 | % | 02/15/40 | 3,040,000 | 2,758,793 | |||||||||||
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 49 |
Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
Securitized — 86.4% continued |
||||||||||||||||
Retail — 1.5% continued |
||||||||||||||||
Wells Fargo Mortgage Trust, Series 2021-SAVE, Class D (1* SOFR + 250) (a)(d) |
7.976 | % | 02/15/40 | $ | 2,083,200 | $ | 1,868,807 | |||||||||
Wells Fargo Mortgage Trust, Series 2021-SAVE, Class E (1* SOFR + 365) (a)(d) |
9.126 | % | 02/15/40 | 5,680,000 | 5,019,483 | |||||||||||
| 23,716,833 | ||||||||||||||||
Single Family Rental — 4.1% |
||||||||||||||||
American Homes 4 Rent, Series 2014-SFR2, Class A (d) |
3.790 | % | 10/17/36 | 13,470,038 | 13,251,850 | |||||||||||
American Homes 4 Rent, Series 2014-SFR2, Class D (d) |
3.678 | % | 12/17/36 | 4,152,187 | 4,071,864 | |||||||||||
American Homes 4 Rent, Series 2015-SFR1, Class A (d) |
3.467 | % | 04/17/52 | 4,179,685 | 4,063,014 | |||||||||||
AMSR Trust, Series 2020-SFR2, Class G (d) |
4.000 | % | 07/17/37 | 500,000 | 470,378 | |||||||||||
Home Partners of America Trust, Series 2021-2, Class D (d) |
2.652 | % | 12/17/26 | 6,254,555 | 5,635,678 | |||||||||||
Progress Residential Trust, Series 2023-SFR2, Class E1 (d) |
4.750 | % | 10/17/28 | 3,141,000 | 2,845,043 | |||||||||||
Progress Residential Trust, Series 2019-SFR4, Class A (d) |
2.687 | % | 10/17/36 | 8,013,789 | 7,801,616 | |||||||||||
Progress Residential Trust, Series 2019-SFR4, Class B (d) |
2.937 | % | 10/17/36 | 2,300,000 | 2,239,883 | |||||||||||
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
Single Family Rental — 4.1% continued |
||||||||||||||||
Progress Residential Trust, Series 2020-SFR1, Class A (d) |
1.732 | % | 04/17/37 | $ | 27,224,119 | $ | 25,936,900 | |||||||||
| 66,316,226 | ||||||||||||||||
Small Business — 3.8% |
||||||||||||||||
Credibility Asset Securitization, Series 2021-1A, Class A (d) |
2.390 | % | 04/15/26 | 12,000,000 | 11,826,121 | |||||||||||
Credibility Asset Securitization, Series 2021-1A, Class C (d) |
3.380 | % | 04/15/26 | 3,650,000 | 3,569,152 | |||||||||||
Credibility Asset Securitization, Series 2021-1A, Class B (d) |
5.930 | % | 04/15/26 | 2,676,000 | 2,612,953 | |||||||||||
FORA Financial Asset Securitization, Series 2021-1A, Class A (d) |
2.620 | % | 05/15/27 | 11,000,000 | 10,629,349 | |||||||||||
FORA Financial Asset Securitization, Series 2021-1A, Class B (d) |
2.970 | % | 05/15/27 | 2,600,000 | 2,510,025 | |||||||||||
FORA Financial Asset Securitization, Series 2021-1A, Class C (d) |
3.850 | % | 05/15/27 | 3,000,000 | 2,818,597 | |||||||||||
Newtek Small Business Loan Trust, Series 2018-1, Class A (1* Prime - 55) (a)(d) |
7.950 | % | 02/25/44 | 463,849 | 459,784 | |||||||||||
Newtek Small Business Loan Trust, Series 2018-1, Class B (1* Prime + 75) (a)(d) |
9.250 | % | 02/25/44 | 1,020,468 | 1,013,759 | |||||||||||
Newtek Small Business Loan Trust, Series 2019-01, Class A (1* Prime - 90) (a)(d) |
7.600 | % | 12/25/44 | 1,150,563 | 1,138,004 | |||||||||||
50 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
Securitized — 86.4% continued |
||||||||||||||||
Small Business — 3.8% continued |
||||||||||||||||
Newtek Small Business Loan Trust, Series 2022-1, Class B (1* SOFR + 375) (a)(d) |
8.750 | % | 10/25/49 | $ | 2,391,762 | $ | 2,361,062 | |||||||||
Newtek Small Business Loan Trust, Series 2023-1, Class B (1* Prime + 75) (d) |
9.250 | % | 07/25/50 | 6,093,004 | 6,056,702 | |||||||||||
OnDeck Asset Securitization Trust, Series 2021-1A, Class B (d) |
2.280 | % | 05/17/27 | 3,500,000 | 3,416,118 | |||||||||||
OnDeck Asset Securitization Trust, Series 2021-1A, Class C (d) |
2.970 | % | 05/17/27 | 3,250,000 | 3,123,642 | |||||||||||
OnDeck Asset Securitization Trust, Series 2023-1, Class C (d) |
9.930 | % | 08/19/30 | 5,000,000 | 5,003,863 | |||||||||||
OnDeck Asset Securitization Trust, Series 2021-1A, Class D (d) |
4.940 | % | 05/17/27 | 5,500,000 | 5,261,392 | |||||||||||
| 61,800,523 | ||||||||||||||||
Student Loan — 0.5% |
||||||||||||||||
College Ave Student Loans, Series 2018-A, Class B (d) |
4.750 | % | 12/26/47 | 759,243 | 727,129 | |||||||||||
College Ave Student Loans, Series 2018-A, Class C (d) |
5.500 | % | 12/26/47 | 462,936 | 451,141 | |||||||||||
College Ave Student Loans, Series 2019-A, Class C (d) |
4.460 | % | 12/28/48 | 2,416,750 | 2,263,249 | |||||||||||
College Ave Student Loans, Series 2021-A, Class B (d) |
2.320 | % | 07/25/51 | 1,554,974 | 1,391,469 | |||||||||||
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
Student Loan — 0.5% continued |
||||||||||||||||
College Ave Student Loans, Series 2021-A, Class D (d) |
4.120 | % | 07/25/51 | $ | 972,470 | $ | 893,099 | |||||||||
CommonBond Student Loan Trust, Series 2017-BGS, Class C (d) |
4.440 | % | 09/25/42 | 227,751 | 192,662 | |||||||||||
Laurel Road Prime Student Loan, Series 2019-A, Class BFX (d) |
3.000 | % | 10/25/48 | 1,842,377 | 1,714,633 | |||||||||||
Prodigy Finance, Series 2021-1A, Class A (1* TSFR1M + 136) (a)(d) |
6.720 | % | 07/25/51 | 758,630 | 752,097 | |||||||||||
| 8,385,479 | ||||||||||||||||
Unsecured Consumer — 11.9% |
||||||||||||||||
ACHV ABS Trust, Series 2023-2PL, Class B (d) |
6.880 | % | 05/20/30 | 4,000,000 | 4,006,176 | |||||||||||
ACHV ABS Trust, Series 2023-2PL, Class C (d) |
7.270 | % | 05/20/30 | 1,450,000 | 1,462,624 | |||||||||||
ACHV ABS Trust, Series 2023-3PL, Class D (d) |
8.360 | % | 08/19/30 | 1,750,000 | 1,788,101 | |||||||||||
ACHV ABS Trust, Series 2023-4CP, Class B (d) |
7.240 | % | 11/25/30 | 5,000,000 | 5,046,012 | |||||||||||
ACHV ABS Trust, Series 2023-4CP, Class C (d) |
7.710 | % | 11/25/30 | 3,000,000 | 3,050,370 | |||||||||||
ACHV ABS Trust, Series 2023-4CP, Class D (d) |
8.600 | % | 11/25/30 | 2,000,000 | 2,044,134 | |||||||||||
ACHV ABS Trust, Series 2023-4CP, Class E (d) |
10.500 | % | 11/25/30 | 5,500,000 | 5,466,136 | |||||||||||
Affirm, Inc., Series 2022-Z1, Class B (d) |
6.490 | % | 06/15/27 | 2,500,000 | 2,438,765 | |||||||||||
Affirm, Inc., Series 2023-B, Class B (d) |
7.440 | % | 09/15/28 | 5,000,000 | 5,085,069 | |||||||||||
Affirm, Inc., Series 2023-X1, Class D (d) |
9.550 | % | 11/15/28 | 2,000,000 | 2,037,703 | |||||||||||
AMCR ABS Trust, Series 2023-1, Class A (d) |
7.660 | % | 01/21/31 | 4,000,000 | 4,007,250 | |||||||||||
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 51 |
Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
Securitized — 86.4% continued |
||||||||||||||||
Unsecured Consumer — 11.9% continued |
||||||||||||||||
AMCR ABS Trust, Series 2023-1, Class B (d) |
8.700 | % | 01/21/31 | $ | 9,228,000 | $ | 9,330,126 | |||||||||
Avant Loans Funding Trust, Series 2021-REV1, Class C (d) |
2.300 | % | 07/15/30 | 10,750,000 | 10,256,176 | |||||||||||
Bankers Healthcare Group Securitization Trust, Series 2023-B, Class C (d) |
8.150 | % | 12/17/36 | 3,500,000 | 3,600,963 | |||||||||||
Conn Funding II, LP, Series 2023-A, Class B (d) |
10.000 | % | 01/17/28 | 3,080,000 | 3,120,732 | |||||||||||
Freedom Financial Trust, Series 2022-3FP, Class D (d) |
7.360 | % | 08/20/29 | 11,500,000 | 11,532,294 | |||||||||||
LendingPoint Asset Securitization, Series 2022-C, Class D (d) |
10.730 | % | 02/15/30 | 4,920,000 | 4,382,566 | |||||||||||
Lendmark Funding Trust, Series 2020-2, Class B (d) |
3.540 | % | 04/21/31 | 2,000,000 | 1,818,946 | |||||||||||
Lendmark Funding Trust, Series 2020-2A, Class C (d) |
4.690 | % | 04/21/31 | 1,000,000 | 907,904 | |||||||||||
Mariner Finance Issuance Trust, Series 2019-A, Class C (d) |
4.010 | % | 07/20/32 | 2,560,000 | 2,538,360 | |||||||||||
Mariner Finance Issuance Trust, Series 2020-A, Class D (d) |
5.750 | % | 08/21/34 | 8,230,000 | 7,665,455 | |||||||||||
Mariner Finance Issuance Trust, Series 2021-AA, Class D (d) |
4.340 | % | 03/20/36 | 1,850,000 | 1,625,570 | |||||||||||
Oportun Funding XIV, LLC, Series 2021-A, Class C (d) |
3.440 | % | 03/08/28 | 3,401,555 | 3,239,407 | |||||||||||
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
Unsecured Consumer — 11.9% continued |
||||||||||||||||
Oportun Funding, LLC, Series 2021-A, Class D (d) |
5.400 | % | 03/08/28 | $ | 5,339,040 | $ | 4,983,380 | |||||||||
Oportun Funding, LLC, Series 2022-1, Class C (d) |
6.000 | % | 06/15/29 | 9,000,000 | 8,753,823 | |||||||||||
Oportun Funding, LLC, Series 2022-2, Class A (d) |
5.940 | % | 10/09/29 | 1,326,948 | 1,324,708 | |||||||||||
Oportun Funding, LLC, Series 2021-B, Class A (d) |
1.470 | % | 05/08/31 | 3,500,000 | 3,269,342 | |||||||||||
Oportun Funding, LLC, Series 2021-B, Class D (d) |
5.410 | % | 05/08/31 | 7,650,000 | 7,027,119 | |||||||||||
Oportun Funding, LLC, Series 2022-A, Class C (d) |
7.400 | % | 06/09/31 | 7,600,000 | 7,366,235 | |||||||||||
Oportun Funding, LLC, Series 2022-A, Class D (d) |
8.500 | % | 06/09/31 | 1,500,000 | 1,372,070 | |||||||||||
Oportun Funding, LLC, Series 2021-C, Class B (d) |
2.670 | % | 10/08/31 | 13,000,000 | 11,875,846 | |||||||||||
Oportun Funding, LLC, Series 2021-C, Class C (d) |
3.610 | % | 10/08/31 | 3,750,000 | 3,350,161 | |||||||||||
Oportun Funding, LLC, Series 2021-C, Class D (d) |
5.570 | % | 10/08/31 | 6,275,000 | 5,380,695 | |||||||||||
Prosper Marketplace Issuance Trust, Series 2019-3A, Class CFT (a)(d) |
0.000 | % | 07/15/25 | 81,061,702 | 400,040 | |||||||||||
Prosper Marketplace Issuance Trust, Series 2023-1, Class B (d) |
7.480 | % | 07/16/29 | 2,300,000 | 2,322,309 | |||||||||||
Prosper Marketplace Issuance Trust, Series 2023-1, Class C (d) |
8.290 | % | 07/16/29 | 1,900,000 | 1,926,908 | |||||||||||
52 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
Securitized — 86.4% continued |
||||||||||||||||
Unsecured Consumer — 11.9% continued |
||||||||||||||||
Prosper Marketplace Issuance Trust, Series 2023-1, Class D (d) |
11.240 | % | 07/16/29 | $ | 1,900,000 | $ | 1,934,435 | |||||||||
Reach Financial, LLC, Series 2021-1A, Class B (d) |
2.170 | % | 05/15/29 | 3,800,000 | 3,675,907 | |||||||||||
Reach Financial, LLC, Series 2021-1A, Class C (d) |
3.540 | % | 05/15/29 | 6,700,000 | 6,172,259 | |||||||||||
Regional Management Issuance Trust, Series 2020-1, Class A (d) |
2.340 | % | 10/15/30 | 1,479,490 | 1,445,115 | |||||||||||
Regional Management Issuance Trust, Series 2020-1, Class B (d) |
3.230 | % | 10/15/30 | 2,500,000 | 2,360,579 | |||||||||||
Regional Management Issuance Trust, Series 2021-1, Class B (d) |
2.420 | % | 03/17/31 | 895,000 | 814,582 | |||||||||||
Regional Management Issuance Trust, Series 2021-1, Class C (d) |
3.040 | % | 03/17/31 | 4,650,000 | 4,171,071 | |||||||||||
Regional Management Issuance Trust, Series 2021-1, Class D (d) |
5.070 | % | 03/17/31 | 1,300,000 | 1,138,546 | |||||||||||
Upstart Pass-Through Trust, Series 2021-ST4, Class A (d) |
2.000 | % | 07/20/27 | 3,899,002 | 3,717,489 | |||||||||||
Upstart Pass-Through Trust, Series 2021-ST7, Class NT (d) |
1.850 | % | 09/20/29 | 451,055 | 448,663 | |||||||||||
Upstart Pass-Through Trust, Series 2022-ST1, Class A (d) |
2.600 | % | 03/20/30 | 1,253,766 | 1,230,845 | |||||||||||
|
Coupon |
Maturity |
Shares/ |
Fair |
||||||||||||
Unsecured Consumer — 11.9% continued |
||||||||||||||||
Upstart Structured Pass-Through Trust, Series 2022-2A, Class A (d) |
4.250 | % | 06/17/30 | $ | 2,653,692 | $ | 2,592,476 | |||||||||
Upstart Structured Pass-Through Trust, Series 2022-4A, Class A (d) |
7.010 | % | 11/15/30 | 1,496,918 | 1,497,761 | |||||||||||
Upstart Structured Pass-Through Trust, Series 2022-4A, Class B (d) |
8.540 | % | 11/15/30 | 5,000,000 | 5,051,579 | |||||||||||
| 192,054,782 | ||||||||||||||||
Total Securitized |
||||||||||||||||
(Cost $1,427,709,879) |
$ | 1,395,909,547 | ||||||||||||||
Treasury — 3.7% |
||||||||||||||||
U.S. Treasury Notes (b) |
1.750 | % | 06/30/24 | 15,000,000 | 14,749,805 | |||||||||||
U.S. Treasury Notes (b) |
0.375 | % | 09/15/24 | 10,000,000 | 9,684,375 | |||||||||||
U.S. Treasury Notes (b) |
0.625 | % | 10/15/24 | 10,000,000 | 9,671,875 | |||||||||||
U.S. Treasury Notes (b) |
0.750 | % | 11/15/24 | 5,000,000 | 4,825,195 | |||||||||||
U.S. Treasury Notes |
1.625 | % | 02/15/26 | 10,000,000 | 9,476,172 | |||||||||||
U.S. Treasury Inflation-Protected Notes |
0.125 | % | 04/15/26 | 11,732,100 | 11,166,585 | |||||||||||
Total Treasury |
||||||||||||||||
(Cost $60,397,129) |
$ | 59,574,007 | ||||||||||||||
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 53 |
Diamond Hill Short Duration
Securitized Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Shares |
Fair |
||||||
Registered Investment Companies — 5.0% |
||||||||
State Street Institutional Liquid Reserves Fund - Premier Class, 5.49% (f) |
62,701,291 | $ | 62,738,912 | |||||
State Street Navigator Securities Lending Portfolio I, 5.09% (f)(g) |
17,631,750 | 17,631,750 | ||||||
Total Registered Investment Companies |
||||||||
(Cost $80,350,559) |
$ | 80,370,662 | ||||||
Total Investment Securities — 100.1% |
||||||||
(Cost $1,649,893,741) |
$ | 1,616,421,351 | ||||||
Liabilities in Excess of Other Assets — (0.1)% |
(2,078,818 | ) | ||||||
Net Assets — 100.0% |
$ | 1,614,342,533 | ||||||
|
(a) |
Variable rate security. The rate shown is the effective interest rate as of December 31, 2023. The benchmark on which the rate is calculated is shown parenthetically, if applicable. Certain variable rate securities are not based on a published rate and spread but are determined by the issuer or agent and may be based on index changes, prerepayment of underlying positions and/or other variables. These securities do not indicate a reference rate and spread in their description above. |
|
(b) |
All or a portion of the security is on loan. The total fair value of the securities on loan as of December 31, 2023 was $21,102,307. |
|
(c) |
Percentage rounds to less than 0.1%. |
|
(d) |
Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities have been deemed liquid under procedures approved by the Fund’s Board of Trustees and may normally be sold to qualified institutional buyers in transactions exempt from registration. The total fair value of these securities as of 12/31/2023 was $1,276,303,229, representing 79.1% of net assets. |
|
(e) |
Illiquid security as determined under procedures approved by the Board of Trustees. The total fair value of these securities as of December 31, 2023 was $20,085,295, representing 1.2% of net assets. |
|
(f) |
The rate shown is the 7-day effective yield as of December 31, 2023. |
|
(g) |
This security was purchased using cash collateral held from securities on loan. |
IO — Interest Only
NA — National Association
PO — Principal Only
Prime — Short-term interest rate in the banking system of the U.S.
SOFR — Secured Overnight Financing Rate
TSFR— CME Term SOFR
See accompanying Notes to Financial Statements.
Diamond Hill Core Bond Fund
Schedule of Investments
December 31, 2023
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Corporate Credit — 15.5% |
||||||||||||||||
Banking — 5.9% |
||||||||||||||||
American Express Co. |
2.250 | % | 03/04/25 | $ | 1,050,000 | $ | 1,015,837 | |||||||||
American Express Co. |
5.282 | % | 07/27/29 | 400,000 | 408,303 | |||||||||||
American Express Co. |
5.043 | % | 05/01/34 | 825,000 | 823,564 | |||||||||||
Bank of America Corp. (1* TSFR3M + 90) (a) |
2.015 | % | 02/13/26 | 400,000 | 384,366 | |||||||||||
Bank of America Corp. (1* SOFR + 115) (a) |
1.319 | % | 06/19/26 | 3,125,000 | 2,941,035 | |||||||||||
Bank of America Corp. (a) |
3.194 | % | 07/23/30 | 2,500,000 | 2,266,764 | |||||||||||
Bank of America Corp. (1* TSFR3M + 145) (a) |
2.884 | % | 10/22/30 | 2,300,000 | 2,040,138 | |||||||||||
Bank of America Corp. (1* SOFR + 215) (a) |
2.592 | % | 04/29/31 | 450,000 | 387,805 | |||||||||||
Bank of America Corp., Class B (SOFR + 153) (a) |
1.898 | % | 07/23/31 | 3,000,000 | 2,454,189 | |||||||||||
Bank of America Corp. (a) |
4.571 | % | 04/27/33 | 1,700,000 | 1,620,409 | |||||||||||
Bank of Montreal France |
0.949 | % | 01/22/27 | 630,000 | 580,838 | |||||||||||
Bank of New York Mellon Corp. (The) |
5.802 | % | 10/25/33 | 1,050,000 | 1,088,622 | |||||||||||
Bank of New York Mellon Corp. (The) (1* SOFR + 207) (a) |
5.834 | % | 10/25/33 | 500,000 | 530,080 | |||||||||||
Bank of Nova Scotia |
3.450 | % | 04/11/25 | 200,000 | 195,675 | |||||||||||
Capital One Financial Corp. |
1.878 | % | 11/02/27 | 1,000,000 | 899,470 | |||||||||||
Capital One Financial Corp. |
5.468 | % | 02/01/29 | 500,000 | 498,522 | |||||||||||
Capital One Financial Corp. |
6.377 | % | 06/08/34 | 500,000 | 514,599 | |||||||||||
Citigroup, Inc. (1* TSFR3M + 116) (a) |
3.352 | % | 04/24/25 | 200,000 | 198,468 | |||||||||||
Citigroup, Inc. (1* SOFR + 125) (a) |
6.906 | % | 07/01/26 | 100,000 | 100,319 | |||||||||||
Citigroup, Inc. |
4.125 | % | 07/25/28 | 150,000 | 144,039 | |||||||||||
Citigroup, Inc. (1* SOFR + 142) (a) |
2.976 | % | 11/05/30 | 3,380,000 | 3,009,534 | |||||||||||
Citigroup, Inc. (a) |
2.666 | % | 01/29/31 | 1,650,000 | 1,431,243 | |||||||||||
Citigroup, Inc. (1* SOFR + 211) (a) |
2.572 | % | 06/03/31 | 3,000,000 | 2,562,651 | |||||||||||
54 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Corporate Credit — 15.5% continued |
||||||||||||||||
Banking — 5.9% continued |
||||||||||||||||
Citizens Bank NA (b) |
4.575 | % | 08/09/28 | $ | 1,350,000 | $ | 1,281,665 | |||||||||
Comerica Bank |
2.500 | % | 07/23/24 | 250,000 | 244,848 | |||||||||||
Cooperative Rabobank UA (c) |
2.625 | % | 07/22/24 | 250,000 | 246,082 | |||||||||||
Discover Bank |
3.450 | % | 07/27/26 | 1,500,000 | 1,418,017 | |||||||||||
Discover Bank (b) |
4.650 | % | 09/13/28 | 950,000 | 906,045 | |||||||||||
Fifth Third Bancorp |
2.375 | % | 01/28/25 | 275,000 | 265,890 | |||||||||||
Fifth Third Bancorp |
1.707 | % | 11/01/27 | 450,000 | 404,854 | |||||||||||
Fifth Third Bancorp (a) |
6.361 | % | 10/27/28 | 500,000 | 518,796 | |||||||||||
Fifth Third Bancorp (1* SOFR + 234) (a) |
6.339 | % | 07/27/29 | 750,000 | 780,884 | |||||||||||
First Horizon Bank (b) |
5.750 | % | 05/01/30 | 250,000 | 235,706 | |||||||||||
Goldman Sachs Group, Inc. (1* SOFR + 51) (a) |
5.860 | % | 09/10/24 | 375,000 | 374,399 | |||||||||||
Goldman Sachs Group, Inc. (1* SOFR + 79) (a) |
1.093 | % | 12/09/26 | 950,000 | 874,918 | |||||||||||
Goldman Sachs Group, Inc. |
1.948 | % | 10/21/27 | 1,000,000 | 914,821 | |||||||||||
Goldman Sachs Group, Inc. (1* TSFR3M + 156) (a) |
4.223 | % | 05/01/29 | 2,650,000 | 2,563,417 | |||||||||||
Goldman Sachs Group, Inc. |
2.600 | % | 02/07/30 | 500,000 | 439,371 | |||||||||||
Goldman Sachs Group, Inc. (a) |
1.992 | % | 01/27/32 | 1,000,000 | 807,989 | |||||||||||
Goldman Sachs Group, Inc. (1* SOFR + 128) (a) |
2.615 | % | 04/22/32 | 2,700,000 | 2,266,403 | |||||||||||
Huntington Bancshares, Inc. |
2.625 | % | 08/06/24 | 125,000 | 122,663 | |||||||||||
Huntington Bancshares, Inc. |
4.443 | % | 08/04/28 | 750,000 | 726,961 | |||||||||||
Huntington Bancshares, Inc. (b) |
5.023 | % | 05/17/33 | 400,000 | 388,680 | |||||||||||
Huntington National Bank |
5.699 | % | 11/18/25 | 1,250,000 | 1,234,377 | |||||||||||
JPMorgan Chase & Co. |
0.824 | % | 06/01/25 | 1,950,000 | 1,908,247 | |||||||||||
JPMorgan Chase & Co. (b) |
1.561 | % | 12/10/25 | 200,000 | 192,560 | |||||||||||
JPMorgan Chase & Co. (a) |
2.083 | % | 04/22/26 | 2,000,000 | 1,915,698 | |||||||||||
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Banking — 5.9% continued |
||||||||||||||||
JPMorgan Chase & Co. (1* SOFR + 80) (a) |
1.045 | % | 11/19/26 | $ | 500,000 | $ | 463,016 | |||||||||
JPMorgan Chase & Co. (1* SOFR + 89) (a) |
1.578 | % | 04/22/27 | 400,000 | 369,130 | |||||||||||
JPMorgan Chase & Co. |
1.470 | % | 09/22/27 | 1,350,000 | 1,223,115 | |||||||||||
JPMorgan Chase & Co. (1* TSFR3M + 121) (a) |
3.509 | % | 01/23/29 | 1,425,000 | 1,350,288 | |||||||||||
JPMorgan Chase & Co. (1* SOFR + 115) (a) |
2.069 | % | 06/01/29 | 1,250,000 | 1,108,313 | |||||||||||
JPMorgan Chase & Co. (a) |
3.702 | % | 05/06/30 | 1,500,000 | 1,411,634 | |||||||||||
JPMorgan Chase & Co. (1* SOFR + 151) (a) |
2.739 | % | 10/15/30 | 450,000 | 400,106 | |||||||||||
JPMorgan Chase & Co. (a) |
2.545 | % | 11/08/32 | 475,000 | 396,330 | |||||||||||
KeyBank NA (1* SOFR + 32) (a)(b) |
5.630 | % | 06/14/24 | 2,000,000 | 1,977,799 | |||||||||||
KeyBank NA |
4.700 | % | 01/26/26 | 250,000 | 244,144 | |||||||||||
KeyBank NA |
5.000 | % | 01/26/33 | 250,000 | 233,710 | |||||||||||
KeyCorp (b) |
2.550 | % | 10/01/29 | 385,000 | 327,458 | |||||||||||
KeyCorp (a) |
4.789 | % | 06/01/33 | 300,000 | 275,429 | |||||||||||
M&T Bank Trust Co. |
5.400 | % | 11/21/25 | 600,000 | 595,963 | |||||||||||
Morgan Stanley |
3.875 | % | 01/27/26 | 500,000 | 489,705 | |||||||||||
Morgan Stanley (b) |
3.125 | % | 07/27/26 | 200,000 | 191,510 | |||||||||||
Morgan Stanley |
3.625 | % | 01/20/27 | 100,000 | 96,949 | |||||||||||
Morgan Stanley (1* SOFR + 114) (a) |
2.699 | % | 01/22/31 | 2,675,000 | 2,338,422 | |||||||||||
Morgan Stanley (SOFR + 312) (a) |
3.622 | % | 04/01/31 | 2,500,000 | 2,304,709 | |||||||||||
Morgan Stanley (1* SOFR + 103) (a) |
1.794 | % | 02/13/32 | 2,900,000 | 2,315,716 | |||||||||||
Morgan Stanley (a) |
1.928 | % | 04/28/32 | 750,000 | 603,094 | |||||||||||
Morgan Stanley (a) |
4.889 | % | 07/20/33 | 1,000,000 | 975,069 | |||||||||||
PNC Bank NA (b) |
2.700 | % | 10/22/29 | 250,000 | 219,145 | |||||||||||
PNC Financial Services Group, Inc. (The) |
2.600 | % | 07/23/26 | 250,000 | 236,729 | |||||||||||
PNC Financial Services Group, Inc. (The) |
5.582 | % | 06/12/29 | 500,000 | 510,666 | |||||||||||
PNC Financial Services Group, Inc. (The) (a) |
6.037 | % | 10/28/33 | 850,000 | 888,087 | |||||||||||
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 55 |
Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Corporate Credit — 15.5% continued |
||||||||||||||||
Banking — 5.9% continued |
||||||||||||||||
PNC Financial Services Group, Inc. (The) |
5.939 | % | 08/18/34 | $ | 1,000,000 | $ | 1,039,537 | |||||||||
Regions Financial Corp. |
2.250 | % | 05/18/25 | 275,000 | 262,083 | |||||||||||
Royal Bank of Canada |
4.950 | % | 04/25/25 | 375,000 | 375,044 | |||||||||||
Royal Bank of Canada, Series H |
1.150 | % | 07/14/26 | 200,000 | 182,959 | |||||||||||
Royal Bank of Canada (b) |
4.900 | % | 01/12/28 | 500,000 | 505,383 | |||||||||||
Royal Bank of Canada |
3.875 | % | 05/04/32 | 300,000 | 283,089 | |||||||||||
Royal Bank of Canada (b) |
5.000 | % | 05/02/33 | 1,000,000 | 1,019,391 | |||||||||||
State Street Corp. (1* SOFR + 94) (a) |
2.354 | % | 11/01/25 | 175,000 | 170,525 | |||||||||||
State Street Corp. |
5.272 | % | 08/03/26 | 700,000 | 710,172 | |||||||||||
State Street Corp. (a) |
4.164 | % | 08/04/33 | 300,000 | 282,807 | |||||||||||
Toronto-Dominion Bank (The) |
0.750 | % | 01/06/26 | 350,000 | 323,295 | |||||||||||
Toronto-Dominion Bank (The) (b) |
1.200 | % | 06/03/26 | 700,000 | 642,647 | |||||||||||
Toronto-Dominion Bank (The) (b) |
5.156 | % | 01/10/28 | 500,000 | 507,541 | |||||||||||
Toronto-Dominion Bank (The), Series C (b) |
5.523 | % | 07/17/28 | 500,000 | 514,770 | |||||||||||
Toronto-Dominion Bank (The) |
3.200 | % | 03/10/32 | 236,000 | 209,048 | |||||||||||
Truist Financial Corp. (b) |
5.900 | % | 10/28/26 | 250,000 | 252,054 | |||||||||||
Truist Financial Corp. |
6.047 | % | 06/08/27 | 500,000 | 508,807 | |||||||||||
Truist Financial Corp. (a) |
4.873 | % | 01/26/29 | 500,000 | 492,585 | |||||||||||
Truist Financial Corp. (a) |
1.887 | % | 06/07/29 | 1,000,000 | 864,140 | |||||||||||
Truist Financial Corp. (a) |
7.161 | % | 10/30/29 | 500,000 | 540,016 | |||||||||||
US Bancorp |
2.400 | % | 07/30/24 | 100,000 | 98,271 | |||||||||||
US Bancorp (a)(b) |
2.215 | % | 01/27/28 | 800,000 | 735,168 | |||||||||||
US Bancorp (a) |
4.548 | % | 07/22/28 | 300,000 | 295,576 | |||||||||||
US Bancorp (a)(b) |
5.775 | % | 06/12/29 | 450,000 | 462,309 | |||||||||||
US Bancorp (a) |
4.839 | % | 02/01/34 | 1,000,000 | 957,844 | |||||||||||
Wells Fargo & Co. |
2.164 | % | 02/11/26 | 1,050,000 | 1,010,545 | |||||||||||
Wells Fargo & Co. (1* SOFR + 200) (a) |
2.188 | % | 04/30/26 | 500,000 | 479,183 | |||||||||||
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Banking — 5.9% continued |
||||||||||||||||
Wells Fargo & Co. (1* SOFR + 210) (a) |
2.393 | % | 06/02/28 | $ | 650,000 | $ | 595,351 | |||||||||
Wells Fargo & Co., Series W (1* SOFR + 174) (a) |
5.574 | % | 07/25/29 | 900,000 | 918,961 | |||||||||||
Wells Fargo & Co. (a) |
2.879 | % | 10/30/30 | 4,000,000 | 3,555,849 | |||||||||||
Wells Fargo & Co. (a) |
3.350 | % | 03/02/33 | 2,700,000 | 2,358,224 | |||||||||||
| 89,829,171 | ||||||||||||||||
Basic Industry — 0.1% |
||||||||||||||||
FMC Corp. |
3.450 | % | 10/01/29 | 300,000 | 271,115 | |||||||||||
Nucor Corp., CV |
2.000 | % | 06/01/25 | 250,000 | 239,996 | |||||||||||
Nucor Corp. |
3.125 | % | 04/01/32 | 250,000 | 224,499 | |||||||||||
PPG Industries, Inc. |
2.400 | % | 08/15/24 | 110,000 | 107,810 | |||||||||||
PPG Industries, Inc. |
2.550 | % | 06/15/30 | 300,000 | 260,597 | |||||||||||
Sherwin Williams Co. |
3.300 | % | 02/01/25 | 350,000 | 341,031 | |||||||||||
Sherwin-Williams Co. |
2.300 | % | 05/15/30 | 250,000 | 216,802 | |||||||||||
| 1,661,850 | ||||||||||||||||
Brokerage Asset Managers Exchanges — 0.3% |
||||||||||||||||
Ameriprise Financial, Inc. |
3.000 | % | 04/02/25 | 250,000 | 243,848 | |||||||||||
Ameriprise Financial, Inc. (b) |
5.150 | % | 05/15/33 | 800,000 | 824,320 | |||||||||||
BlackRock, Inc. |
4.750 | % | 05/25/33 | 800,000 | 807,066 | |||||||||||
CBOE Global Markets, Inc. |
3.650 | % | 01/12/27 | 100,000 | 97,003 | |||||||||||
Charles Schwab Corp. (The) (a)(b) |
5.853 | % | 05/19/34 | 1,100,000 | 1,135,477 | |||||||||||
Charles Schwab Corp. (The) (a) |
6.136 | % | 08/24/34 | 450,000 | 474,334 | |||||||||||
Intercontinental Exchange, Inc. |
4.950 | % | 06/15/52 | 875,000 | 878,995 | |||||||||||
| 4,461,043 | ||||||||||||||||
Capital Goods — 0.5% |
||||||||||||||||
Carrier Global Corp. |
2.722 | % | 02/15/30 | 250,000 | 223,666 | |||||||||||
Deere & Co. |
3.100 | % | 04/15/30 | 1,725,000 | 1,600,268 | |||||||||||
John Deere Capital Corp., Series I |
4.950 | % | 07/14/28 | 400,000 | 410,082 | |||||||||||
Johnson Controls International plc |
2.000 | % | 09/16/31 | 500,000 | 416,057 | |||||||||||
L3 Harris Technologies, Inc. |
3.850 | % | 12/15/26 | 1,050,000 | 1,029,136 | |||||||||||
56 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Corporate Credit — 15.5% continued |
||||||||||||||||
Capital Goods — 0.5% continued |
||||||||||||||||
Lockheed Martin Corp. |
4.450 | % | 05/15/28 | $ | 250,000 | $ | 251,325 | |||||||||
Lockheed Martin Corp. (b) |
5.250 | % | 01/15/33 | 425,000 | 450,772 | |||||||||||
Republic Services, Inc. |
2.500 | % | 08/15/24 | 200,000 | 196,197 | |||||||||||
RTX Corp. |
6.100 | % | 03/15/34 | 2,000,000 | 2,170,490 | |||||||||||
Waste Management, Inc., Series 19-SFR4, Class A |
3.125 | % | 03/01/25 | 400,000 | 391,613 | |||||||||||
Waste Management, Inc. |
1.150 | % | 03/15/28 | 300,000 | 263,637 | |||||||||||
Waste Management, Inc. (b) |
4.625 | % | 02/15/30 | 875,000 | 884,880 | |||||||||||
| 8,288,123 | ||||||||||||||||
Communications — 0.8% |
||||||||||||||||
American Tower Corp. |
3.125 | % | 01/15/27 | 300,000 | 283,546 | |||||||||||
American Tower Corp. |
5.800 | % | 11/15/28 | 250,000 | 259,704 | |||||||||||
American Tower Corp. |
2.100 | % | 06/15/30 | 200,000 | 167,762 | |||||||||||
AT&T, Inc. (b) |
2.300 | % | 06/01/27 | 650,000 | 603,325 | |||||||||||
AT&T, Inc. |
2.550 | % | 12/01/33 | 114,000 | 92,912 | |||||||||||
AT&T, Inc. |
4.500 | % | 05/15/35 | 700,000 | 663,054 | |||||||||||
AT&T, Inc., Class B |
3.500 | % | 06/01/41 | 400,000 | 317,632 | |||||||||||
British Telecommunications plc (c) |
3.250 | % | 11/08/29 | 275,000 | 251,225 | |||||||||||
Comcast Corp. (b) |
4.150 | % | 10/15/28 | 450,000 | 443,732 | |||||||||||
Comcast Corp. |
2.650 | % | 02/01/30 | 100,000 | 90,023 | |||||||||||
Comcast Corp. |
1.950 | % | 01/15/31 | 1,025,000 | 865,129 | |||||||||||
Comcast Corp. |
3.969 | % | 11/01/47 | 144,000 | 120,840 | |||||||||||
Comcast Corp. |
5.350 | % | 05/15/53 | 925,000 | 956,432 | |||||||||||
Deutsche Telekom International Finance BV (c) |
4.750 | % | 06/21/38 | 100,000 | 97,158 | |||||||||||
Fox Corp. |
4.030 | % | 01/25/24 | 50,000 | 49,939 | |||||||||||
T Mobile USA, Inc. (b) |
5.750 | % | 01/15/34 | 1,650,000 | 1,750,059 | |||||||||||
T-Mobile USA, Inc. |
3.375 | % | 04/15/29 | 700,000 | 650,372 | |||||||||||
Verizon Communications, Inc. |
1.750 | % | 01/20/31 | 700,000 | 575,736 | |||||||||||
Verizon Communications, Inc. |
2.550 | % | 03/21/31 | 1,400,000 | 1,207,148 | |||||||||||
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Communications — 0.8% continued |
||||||||||||||||
Verizon Communications, Inc. |
2.355 | % | 03/15/32 | $ | 1,237,000 | $ | 1,028,901 | |||||||||
Walt Disney Co. (The) |
2.000 | % | 09/01/29 | 550,000 | 488,004 | |||||||||||
WarnerMedia Holdings, Inc. |
4.279 | % | 03/15/32 | 1,225,000 | 1,121,125 | |||||||||||
| 12,083,758 | ||||||||||||||||
Consumer Cyclical — 1.5% |
||||||||||||||||
Amazon.com, Inc. |
1.200 | % | 06/03/27 | 1,000,000 | 901,972 | |||||||||||
BMW US Capital, LLC (c) |
3.900 | % | 04/09/25 | 300,000 | 296,468 | |||||||||||
CVS Health Corp. |
5.125 | % | 02/21/30 | 2,000,000 | 2,031,019 | |||||||||||
CVS Health Corp. |
3.750 | % | 04/01/30 | 500,000 | 470,351 | |||||||||||
CVS Health Corp. |
5.050 | % | 03/25/48 | 250,000 | 233,827 | |||||||||||
CVS Health Corp. |
5.875 | % | 06/01/53 | 450,000 | 473,316 | |||||||||||
Dollar General Corp. (b) |
5.450 | % | 07/05/33 | 1,300,000 | 1,323,162 | |||||||||||
Dollar Tree, Inc. |
4.000 | % | 05/15/25 | 1,250,000 | 1,227,002 | |||||||||||
Expedia, Inc. (b) |
3.800 | % | 02/15/28 | 1,250,000 | 1,205,053 | |||||||||||
Ford Motor Credit Co., LLC |
4.134 | % | 08/04/25 | 1,250,000 | 1,214,934 | |||||||||||
Ford Motor Credit Co., LLC |
3.375 | % | 11/13/25 | 800,000 | 765,529 | |||||||||||
Ford Motor Credit Co., LLC |
7.122 | % | 11/07/33 | 500,000 | 538,718 | |||||||||||
General Motors Co. (b) |
5.400 | % | 10/15/29 | 1,525,000 | 1,552,146 | |||||||||||
General Motors Financial Co., Inc., Class B |
1.500 | % | 06/10/26 | 700,000 | 641,401 | |||||||||||
General Motors Financial Co., Inc. |
2.700 | % | 08/20/27 | 1,000,000 | 922,461 | |||||||||||
Honda Motor Co. |
2.534 | % | 03/10/27 | 200,000 | 188,738 | |||||||||||
Lowes Cos., Inc. |
2.625 | % | 04/01/31 | 950,000 | 831,287 | |||||||||||
Lowes Cos., Inc. |
4.250 | % | 04/01/52 | 3,650,000 | 3,090,079 | |||||||||||
Mercedes-Benz Financing (c) |
4.800 | % | 03/30/28 | 500,000 | 504,823 | |||||||||||
Ross Stores, Inc. |
4.800 | % | 04/15/30 | 1,050,000 | 1,023,058 | |||||||||||
Toyota Motor Credit Corp. |
0.500 | % | 06/18/24 | 500,000 | 488,413 | |||||||||||
Toyota Motor Credit Corp. (b) |
0.800 | % | 01/09/26 | 300,000 | 278,304 | |||||||||||
Toyota Motor Credit Corp. (b) |
4.550 | % | 05/17/30 | 1,450,000 | 1,459,422 | |||||||||||
Toyota Motor Credit Corp. |
5.550 | % | 11/20/30 | 500,000 | 526,765 | |||||||||||
Walmart, Inc. |
4.500 | % | 04/15/53 | 450,000 | 437,246 | |||||||||||
| 22,625,494 | ||||||||||||||||
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 57 |
Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Corporate Credit — 15.5% continued |
||||||||||||||||
Consumer Non-Cyclical — 1.3% |
||||||||||||||||
Abbott Laboratories |
4.750 | % | 11/30/36 | $ | 100,000 | $ | 102,427 | |||||||||
AbbVie, Inc. |
3.600 | % | 05/14/25 | 500,000 | 490,946 | |||||||||||
AbbVie, Inc. (b) |
2.950 | % | 11/21/26 | 335,000 | 321,231 | |||||||||||
AbbVie, Inc. |
3.200 | % | 11/21/29 | 750,000 | 701,092 | |||||||||||
AbbVie, Inc. |
4.550 | % | 03/15/35 | 100,000 | 98,065 | |||||||||||
Amgen, Inc. |
1.900 | % | 02/21/25 | 310,000 | 299,233 | |||||||||||
Amgen, Inc. (b) |
3.000 | % | 02/22/29 | 500,000 | 470,286 | |||||||||||
Amgen, Inc. |
4.200 | % | 03/01/33 | 400,000 | 380,477 | |||||||||||
Amgen, Inc. |
5.600 | % | 03/02/43 | 425,000 | 439,157 | |||||||||||
Anheuser-Busch Cos., LLC (b) |
4.700 | % | 02/01/36 | 1,900,000 | 1,893,801 | |||||||||||
Baxter International, Inc. |
1.915 | % | 02/01/27 | 300,000 | 274,863 | |||||||||||
Bristol-Myers Squibb Co. (b) |
2.950 | % | 03/15/32 | 300,000 | 266,581 | |||||||||||
Bristol-Myers Squibb Co. |
5.900 | % | 11/15/33 | 1,450,000 | 1,579,817 | |||||||||||
Constellation Brands, Inc. |
3.150 | % | 08/01/29 | 775,000 | 720,265 | |||||||||||
Constellation Brands, Inc. |
2.250 | % | 08/01/31 | 350,000 | 294,093 | |||||||||||
HCA, Inc. |
4.125 | % | 06/15/29 | 650,000 | 621,477 | |||||||||||
Kroger Co. (The) |
3.500 | % | 02/01/26 | 1,250,000 | 1,217,445 | |||||||||||
Kroger Co. (The) |
2.650 | % | 10/15/26 | 100,000 | 94,486 | |||||||||||
Kroger Co. (The) |
2.200 | % | 05/01/30 | 125,000 | 106,973 | |||||||||||
Kroger Co. (The) (b) |
1.700 | % | 01/15/31 | 550,000 | 444,507 | |||||||||||
Laboratory Corp. of American Holdings |
1.550 | % | 06/01/26 | 375,000 | 346,501 | |||||||||||
Mondelez International, Inc. (c) |
1.250 | % | 09/24/26 | 300,000 | 273,107 | |||||||||||
Mondelez International, Inc. |
3.000 | % | 03/17/32 | 300,000 | 266,265 | |||||||||||
Pfizer, Inc. |
5.340 | % | 05/19/63 | 1,800,000 | 1,817,278 | |||||||||||
Phillip Morris International, Inc. |
5.500 | % | 09/07/30 | 1,500,000 | 1,554,577 | |||||||||||
Phillip Morris International, Inc. |
5.375 | % | 02/15/33 | 900,000 | 923,134 | |||||||||||
Roche Holdings, Inc. (c) |
5.593 | % | 11/13/33 | 2,331,000 | 2,513,594 | |||||||||||
Zoetis, Inc., Series 4006 |
2.000 | % | 05/15/30 | 1,175,000 | 1,011,756 | |||||||||||
| 19,523,434 | ||||||||||||||||
Electric — 1.2% |
||||||||||||||||
Ameren Corp. |
2.500 | % | 09/15/24 | 130,000 | 127,106 | |||||||||||
American Electric Power, Inc. |
1.000 | % | 11/01/25 | 500,000 | 464,049 | |||||||||||
CMS Energy Corp. |
2.950 | % | 02/15/27 | 100,000 | 93,765 | |||||||||||
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Electric — 1.2% continued |
||||||||||||||||
Dominion Energy South Carolina, Inc. (b) |
6.250 | % | 10/15/53 | $ | 450,000 | $ | 518,789 | |||||||||
Dominion Energy, Inc. |
1.450 | % | 04/15/26 | 750,000 | 695,192 | |||||||||||
DTE Electric Co. |
5.200 | % | 04/01/33 | 450,000 | 467,451 | |||||||||||
DTE Energy Co., Series C |
2.529 | % | 10/01/24 | 150,000 | 146,480 | |||||||||||
DTE Energy Co., Series E |
2.850 | % | 10/01/26 | 100,000 | 94,521 | |||||||||||
DTE Energy Co., Series H |
2.950 | % | 03/01/30 | 125,000 | 110,417 | |||||||||||
Duke Energy Corp. |
4.300 | % | 03/15/28 | 825,000 | 813,365 | |||||||||||
Duke Energy Florida, LLC |
6.200 | % | 11/15/53 | 1,000,000 | 1,143,593 | |||||||||||
Duke Energy Indiana, LLC |
2.750 | % | 04/01/50 | 370,000 | 239,203 | |||||||||||
Duke Energy Ohio, Inc. |
5.250 | % | 04/01/33 | 250,000 | 257,550 | |||||||||||
Duke Energy Progress, Inc. |
2.000 | % | 08/15/31 | 600,000 | 495,122 | |||||||||||
Florida Power & Light Co. |
5.100 | % | 04/01/33 | 500,000 | 515,984 | |||||||||||
Idaho Power Co. |
5.500 | % | 03/15/53 | 900,000 | 927,914 | |||||||||||
Idaho Power Co. |
5.800 | % | 04/01/54 | 1,850,000 | 1,976,056 | |||||||||||
MidAmerican Energy Co. |
3.650 | % | 04/15/29 | 350,000 | 334,393 | |||||||||||
Nevada Power Co., Series 2023A |
6.000 | % | 03/15/54 | 450,000 | 493,683 | |||||||||||
NextEra Energy Cap Holdings, Inc. |
4.625 | % | 07/15/27 | 1,535,000 | 1,532,222 | |||||||||||
Northern States Power Co. |
2.250 | % | 04/01/31 | 500,000 | 428,875 | |||||||||||
Northern States Power Co. |
5.100 | % | 05/15/53 | 900,000 | 907,326 | |||||||||||
Oncor Electric Delivery Co., LLC |
3.750 | % | 04/01/45 | 490,000 | 406,143 | |||||||||||
Oncor Electric Delivery Co., LLC (c) |
4.950 | % | 09/15/52 | 500,000 | 491,580 | |||||||||||
PacifiCorp |
5.500 | % | 05/15/54 | 450,000 | 441,499 | |||||||||||
PECO Energy Co. |
3.000 | % | 09/15/49 | 200,000 | 142,166 | |||||||||||
PPL Electric Utilities Corp. |
5.000 | % | 05/15/33 | 900,000 | 919,920 | |||||||||||
PPL Electric Utilities Corp. |
3.000 | % | 10/01/49 | 160,000 | 114,532 | |||||||||||
Progress Energy, Inc. |
7.750 | % | 03/01/31 | 1,000,000 | 1,153,703 | |||||||||||
Public Service Co. of Colorado |
4.500 | % | 06/01/52 | 400,000 | 349,347 | |||||||||||
58 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Corporate Credit — 15.5% continued |
||||||||||||||||
Electric — 1.2% continued |
||||||||||||||||
Public Service Electric & Gas Co. |
2.250 | % | 09/15/26 | $ | 100,000 | $ | 94,267 | |||||||||
Southwestern Electric Power Co. |
2.750 | % | 10/01/26 | 100,000 | 94,045 | |||||||||||
WEC Energy Group, Inc. |
0.800 | % | 03/15/24 | 700,000 | 692,856 | |||||||||||
Wisconsin Power & Light Co. |
1.950 | % | 09/16/31 | 800,000 | 649,469 | |||||||||||
| 18,332,583 | ||||||||||||||||
Energy — 0.8% |
||||||||||||||||
BP Capital Markets America (b) |
4.812 | % | 02/13/33 | 800,000 | 806,572 | |||||||||||
BP Capital Markets America (b) |
4.893 | % | 09/11/33 | 500,000 | 508,740 | |||||||||||
ConocoPhillips Co. |
5.550 | % | 03/15/54 | 450,000 | 477,564 | |||||||||||
Coterra Energy, Inc. |
3.900 | % | 05/15/27 | 100,000 | 96,749 | |||||||||||
Diamondback Energy, Inc. (b) |
3.250 | % | 12/01/26 | 200,000 | 193,697 | |||||||||||
Diamondback Energy, Inc. |
6.250 | % | 03/15/53 | 500,000 | 533,004 | |||||||||||
Energy Transfer Operating, LP |
4.500 | % | 04/15/24 | 75,000 | 74,719 | |||||||||||
Energy Transfer, LP (c) |
5.625 | % | 05/01/27 | 500,000 | 498,293 | |||||||||||
Energy Transfer, LP |
4.950 | % | 05/15/28 | 1,100,000 | 1,094,464 | |||||||||||
Energy Transfer, LP (b) |
6.100 | % | 12/01/28 | 500,000 | 526,198 | |||||||||||
Helmerich & Payne, Inc. |
2.900 | % | 09/29/31 | 1,650,000 | 1,387,260 | |||||||||||
Marathon Petroleum Corp. |
5.000 | % | 09/15/54 | 1,250,000 | 1,102,772 | |||||||||||
MPLX, LP |
5.000 | % | 03/01/33 | 1,000,000 | 979,594 | |||||||||||
Occidental Petroleum Corp. (b) |
5.550 | % | 03/15/26 | 1,575,000 | 1,586,387 | |||||||||||
Phillips 66 |
2.450 | % | 12/15/24 | 100,000 | 97,306 | |||||||||||
Phillips 66 |
3.550 | % | 10/01/26 | 100,000 | 96,412 | |||||||||||
Phillips 66 |
5.300 | % | 06/30/33 | 875,000 | 898,067 | |||||||||||
Shell International Finance BV |
2.375 | % | 11/07/29 | 645,000 | 580,351 | |||||||||||
Shell International Finance BV |
6.375 | % | 12/15/38 | 73,000 | 83,939 | |||||||||||
Total Capital International SA |
2.829 | % | 01/10/30 | 120,000 | 110,200 | |||||||||||
| 11,732,288 | ||||||||||||||||
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Insurance — 1.3% |
||||||||||||||||
Athene Global Funding (c) |
2.500 | % | 01/14/25 | $ | 225,000 | $ | 216,729 | |||||||||
Berkshire Hathaway Financial Corp. |
3.850 | % | 03/15/52 | 900,000 | 752,005 | |||||||||||
Equitable Financial Life (c) |
1.800 | % | 03/08/28 | 609,000 | 533,434 | |||||||||||
Jackson National Life Global Funding (c) |
5.500 | % | 01/09/26 | 800,000 | 798,834 | |||||||||||
Lincoln National Corp. (b) |
3.625 | % | 12/12/26 | 100,000 | 97,250 | |||||||||||
MassMutual Global Funding (c) |
4.150 | % | 08/26/25 | 500,000 | 494,796 | |||||||||||
MassMutual Global Funding (c) |
1.200 | % | 07/16/26 | 400,000 | 365,157 | |||||||||||
MassMutual Global Funding (c) |
2.150 | % | 03/09/31 | 500,000 | 415,347 | |||||||||||
MassMutual Global Funding II (b)(c) |
5.050 | % | 06/14/28 | 500,000 | 505,658 | |||||||||||
Met Life Global Funding I (c) |
5.400 | % | 09/12/28 | 1,850,000 | 1,898,283 | |||||||||||
Met Life Global Funding I (c) |
4.300 | % | 08/25/29 | 1,000,000 | 973,780 | |||||||||||
Met Life Global Funding I (c) |
1.550 | % | 01/07/31 | 900,000 | 720,568 | |||||||||||
Met Life Global Funding I (c) |
5.150 | % | 03/28/33 | 500,000 | 508,680 | |||||||||||
Met Tower Global Funding (c) |
3.700 | % | 06/13/25 | 350,000 | 344,097 | |||||||||||
New York Life Global Funding (c) |
2.900 | % | 01/17/24 | 100,000 | 99,890 | |||||||||||
New York Life Global Funding (c) |
1.150 | % | 06/09/26 | 50,000 | 45,804 | |||||||||||
New York Life Global Funding (c) |
4.900 | % | 06/13/28 | 1,000,000 | 1,008,921 | |||||||||||
New York Life Global Funding (c) |
1.200 | % | 08/07/30 | 1,250,000 | 1,002,470 | |||||||||||
Northwestern Mutual Global Funding (c) |
4.000 | % | 07/01/25 | 400,000 | 396,346 | |||||||||||
Northwestern Mutual Global Funding (c) |
4.350 | % | 09/15/27 | 400,000 | 394,356 | |||||||||||
Pacific Life Global Fund II (c) |
1.450 | % | 01/20/28 | 500,000 | 436,120 | |||||||||||
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 59 |
Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Corporate Credit — 15.5% continued |
||||||||||||||||
Insurance — 1.3% continued |
||||||||||||||||
Pricoa Global Funding I (c) |
5.550 | % | 08/28/26 | $ | 700,000 | $ | 714,397 | |||||||||
Pricoa Global Funding I (c) |
5.100 | % | 05/30/28 | 500,000 | 505,639 | |||||||||||
Principal Life Global Funding II (c) |
1.250 | % | 06/23/25 | 525,000 | 496,879 | |||||||||||
Principal Life Global Funding II (c) |
0.875 | % | 01/12/26 | 500,000 | 459,016 | |||||||||||
Progressive Corp. |
3.200 | % | 03/26/30 | 240,000 | 221,845 | |||||||||||
Protective Life Global Funding (c) |
3.218 | % | 03/28/25 | 285,000 | 277,957 | |||||||||||
Protective Life Global Funding (c) |
5.209 | % | 04/14/26 | 1,000,000 | 998,845 | |||||||||||
Protective Life Global Funding (c) |
1.900 | % | 07/06/28 | 650,000 | 575,483 | |||||||||||
Protective Life Global Funding (c) |
5.467 | % | 12/08/28 | 500,000 | 513,356 | |||||||||||
Protective Life Global Funding (c) |
1.737 | % | 09/21/30 | 1,100,000 | 890,215 | |||||||||||
RGA Global Funding (c) |
2.000 | % | 11/30/26 | 660,000 | 603,550 | |||||||||||
UnitedHealth Group, Inc. |
4.200 | % | 05/15/32 | 1,150,000 | 1,125,305 | |||||||||||
UnitedHealth Group, Inc. |
4.250 | % | 06/15/48 | 500,000 | 446,704 | |||||||||||
UnitedHealth Group, Inc. |
5.200 | % | 04/15/63 | 500,000 | 510,284 | |||||||||||
| 20,348,000 | ||||||||||||||||
Natural Gas — 0.1% |
||||||||||||||||
Atmos Energy Corp. |
2.625 | % | 09/15/29 | 310,000 | 282,259 | |||||||||||
Atmos Energy Corp. |
4.125 | % | 03/15/49 | 885,000 | 760,188 | |||||||||||
| 1,042,447 | ||||||||||||||||
Other Utility — 0.0% (d) |
||||||||||||||||
American Water Capital Corp. |
2.800 | % | 05/01/30 | 300,000 | 268,438 | |||||||||||
American Water Capital Corp. |
2.300 | % | 06/01/31 | 825,000 | 704,495 | |||||||||||
| 972,933 | ||||||||||||||||
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
REITS — 0.5% |
||||||||||||||||
Alexandria Real Estate Equities, Inc. |
3.950 | % | 01/15/28 | $ | 100,000 | $ | 95,937 | |||||||||
American Homes 4 Rent |
4.250 | % | 02/15/28 | 100,000 | 97,046 | |||||||||||
Boston Properties, LP |
2.750 | % | 10/01/26 | 50,000 | 46,376 | |||||||||||
CubeSmart, LP |
2.250 | % | 12/15/28 | 4,200,000 | 3,708,635 | |||||||||||
ERP Operating, LP |
2.850 | % | 11/01/26 | 100,000 | 94,959 | |||||||||||
ERP Operating, LP |
2.500 | % | 02/15/30 | 150,000 | 132,526 | |||||||||||
Extra Space Storage, LP |
3.875 | % | 12/15/27 | 100,000 | 95,475 | |||||||||||
Public Storage |
1.850 | % | 05/01/28 | 800,000 | 718,316 | |||||||||||
Realty Income Corp. |
0.750 | % | 03/15/26 | 1,375,000 | 1,251,746 | |||||||||||
Realty Income Corp. |
3.000 | % | 01/15/27 | 100,000 | 94,887 | |||||||||||
Spirit Realty, LP |
4.450 | % | 09/15/26 | 413,000 | 404,891 | |||||||||||
Spirit Realty, LP |
2.100 | % | 03/15/28 | 250,000 | 221,989 | |||||||||||
Spirit Realty, LP |
4.000 | % | 07/15/29 | 60,000 | 56,926 | |||||||||||
Spirit Realty, LP |
3.200 | % | 02/15/31 | 250,000 | 220,682 | |||||||||||
| 7,240,391 | ||||||||||||||||
Technology — 0.7% |
||||||||||||||||
Apple, Inc. |
1.650 | % | 02/08/31 | 3,025,000 | 2,550,266 | |||||||||||
Dell International, LLC/EMC Corp. |
4.900 | % | 10/01/26 | 638,000 | 639,015 | |||||||||||
Dell International, LLC/EMC Corp. (b) |
5.300 | % | 10/01/29 | 450,000 | 463,411 | |||||||||||
Fidelity National Information Services, Inc. |
1.650 | % | 03/01/28 | 300,000 | 267,472 | |||||||||||
Mastercard, Inc. |
2.000 | % | 11/18/31 | 2,300,000 | 1,939,879 | |||||||||||
Oracle Corp. |
2.875 | % | 03/25/31 | 500,000 | 442,926 | |||||||||||
Oracle Corp. |
3.600 | % | 04/01/40 | 3,000,000 | 2,392,213 | |||||||||||
Visa, Inc. |
3.150 | % | 12/14/25 | 800,000 | 780,535 | |||||||||||
Xilinx, Inc. |
2.375 | % | 06/01/30 | 1,000,000 | 884,382 | |||||||||||
| 10,360,099 | ||||||||||||||||
Transportation — 0.5% |
||||||||||||||||
Alaska Airlines Pass-Through Trust, Series 2020-1B, Class A (c) |
4.800 | % | 02/15/29 | 114,725 | 111,478 | |||||||||||
American Airlines Pass-Through Trust, Series 2016-2, Class AA |
3.200 | % | 12/15/29 | 303,525 | 276,221 | |||||||||||
60 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Burlington North Santa Fe, LLC |
5.050 | % | 03/01/41 | $ | 500,000 | $ | 499,684 | |||||||||
CSX Corp. |
4.250 | % | 11/01/66 | 100,000 | 85,161 | |||||||||||
FedEx Corp. (b) |
2.400 | % | 05/15/31 | 500,000 | 430,359 | |||||||||||
Corporate Credit — 15.5% continued |
||||||||||||||||
Transportation — 0.5% continued |
||||||||||||||||
FedEx Corp., Series 2020-1, Class AA, CV |
1.875 | % | 02/20/34 | 1,280,363 | 1,063,792 | |||||||||||
Kirby Corp. (b) |
4.200 | % | 03/01/28 | 600,000 | 578,464 | |||||||||||
Norfolk Southern Corp. |
3.000 | % | 03/15/32 | 600,000 | 533,478 | |||||||||||
Norfolk Southern Corp. |
5.950 | % | 03/15/64 | 500,000 | 557,870 | |||||||||||
Ryder System, Inc. |
2.850 | % | 03/01/27 | 500,000 | 470,032 | |||||||||||
Ryder System, Inc. |
5.650 | % | 03/01/28 | 500,000 | 514,969 | |||||||||||
Southwest Airlines Co. |
2.625 | % | 02/10/30 | 1,300,000 | 1,135,384 | |||||||||||
United Airlines Pass-Through Trust, Series 2020-1B, Class B |
4.875 | % | 07/15/27 | 304,000 | 294,464 | |||||||||||
United Airlines Pass-Through Trust, Series 2020-1, Class A |
5.875 | % | 04/15/29 | 194,095 | 196,508 | |||||||||||
United Parcel Service, Inc. (b) |
4.875 | % | 03/03/33 | 900,000 | 934,174 | |||||||||||
| 7,682,038 | ||||||||||||||||
Total Corporate Credit |
||||||||||||||||
(Cost 237,613,617) |
$ | 236,183,652 | ||||||||||||||
Government Related — 0.1% |
||||||||||||||||
Government Owned, No Guarantee — 0.1% |
||||||||||||||||
Tennessee Valley Authority |
4.250 | % | 09/15/52 | 500,000 | 462,349 | |||||||||||
Tennessee Valley Authority |
4.625 | % | 09/15/60 | 525,000 | 513,137 | |||||||||||
Total Government Related |
||||||||||||||||
(Cost 1,246,917) |
$ | 975,486 | ||||||||||||||
Securitized — 61.8% |
||||||||||||||||
ABS-Other — 2.5% |
||||||||||||||||
BXG Receivables Note Trust, Series 2018-A, Class C (c) |
4.440 | % | 02/02/34 | 145,292 | 139,341 | |||||||||||
Cascade Funding Mortgage Trust, Series 2021-GRN1, Class B (c) |
1.830 | % | 03/20/41 | 1,000,000 | 876,265 | |||||||||||
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
ABS-Other — 2.5% continued |
||||||||||||||||
Diamond Resorts Owner Trust, Series 2021-1A, Class B (c) |
2.050 | % | 11/21/33 | $ | 621,495 | $ | 581,209 | |||||||||
Diamond Resorts Owner Trust, Series 2021-1A, Class C (c) |
2.700 | % | 11/21/33 | 157,445 | 145,459 | |||||||||||
FMC GMSR Issuer Trust, Series 2020-GT1, Class A (a)(c) |
4.450 | % | 01/25/26 | 2,000,000 | 1,799,761 | |||||||||||
FMC GMSR Issuer Trust, Series 2021-GT1, Class A (a)(c) |
3.620 | % | 07/25/26 | 3,300,000 | 2,845,485 | |||||||||||
FMC GMSR Issuer Trust, Series 2021-GT2, Class A (c) |
3.850 | % | 10/25/26 | 3,900,000 | 3,374,160 | |||||||||||
FMC GMSR Issuer Trust, Series 2022-GT2, Class A (c) |
7.900 | % | 07/25/27 | 2,350,000 | 2,369,679 | |||||||||||
GoodGreen Trust, Series 2017-1A, Class A (c) |
3.740 | % | 10/15/52 | 156,313 | 143,323 | |||||||||||
GoodGreen Trust, Series 2020-1A, Class A (c) |
2.630 | % | 04/15/55 | 249,624 | 196,414 | |||||||||||
Helios Issuer, LLC, Series 2019-AA, Class A (c) |
3.750 | % | 06/20/46 | 86,096 | 78,496 | |||||||||||
Helios Issuer, LLC, Series 2020-4, Class A (c) |
2.980 | % | 06/20/47 | 294,486 | 269,786 | |||||||||||
Helios Issuer, LLC, Series 2021-A, Class A (c) |
1.800 | % | 02/20/48 | 498,025 | 432,183 | |||||||||||
Helios Issuer, LLC, Series 2022-C, Class C (c) |
6.000 | % | 11/22/49 | 2,810,831 | 2,434,340 | |||||||||||
Helios Issuer, LLC, Series 2023-B, Class C (c) |
6.000 | % | 08/22/50 | 780,962 | 720,871 | |||||||||||
Hero Funding Trust, Series 2016-2A, Class A (c) |
3.750 | % | 09/20/41 | 77,916 | 71,891 | |||||||||||
Hero Funding Trust, Series 2016-3A, Class A1 (c) |
3.080 | % | 09/20/42 | 1,205,370 | 1,085,248 | |||||||||||
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 61 |
Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Securitized — 61.8% continued |
||||||||||||||||
ABS-Other — 2.5% continued |
||||||||||||||||
Hero Funding Trust, Series 2016-4A, Class A1 (c) |
3.570 | % | 09/20/47 | $ | 109,466 | $ | 99,907 | |||||||||
Hero Funding Trust, Series 2016-4B, Class B (c) |
4.990 | % | 09/20/47 | 41,724 | 41,038 | |||||||||||
Hero Funding Trust, Series 2017-3A, Class A1 (c) |
3.190 | % | 09/20/48 | 98,930 | 85,984 | |||||||||||
Hero Funding Trust, Series 2017-3A, Class A2 (c) |
3.950 | % | 09/20/48 | 361,937 | 323,181 | |||||||||||
Hero Funding Trust, Series 2018-1A, Class A2 (c) |
4.670 | % | 09/20/48 | 38,588 | 36,286 | |||||||||||
Holiday Inn Timeshare Trust, Series 2020-A, Class C (c) |
3.420 | % | 10/09/39 | 236,305 | 222,853 | |||||||||||
Loanpal Solar Loan Ltd., Series 2020-3GS, Class B (c) |
3.450 | % | 12/20/47 | 498,652 | 389,028 | |||||||||||
Loanpal Solar Loan Ltd., Series 2021-1GS, Class A (c) |
2.290 | % | 01/20/48 | 468,638 | 364,586 | |||||||||||
Loanpal Solar Loan Ltd., Series 2021-1GS, Class B (c) |
2.840 | % | 01/20/48 | 754,050 | 553,791 | |||||||||||
Loanpal Solar Loan Ltd., Series 2021-2GS, Class A (c) |
2.220 | % | 03/20/48 | 700,900 | 521,690 | |||||||||||
Mill City Solar Loan Ltd., Series 2019-2GS, Class A (c) |
3.690 | % | 07/20/43 | 116,708 | 102,993 | |||||||||||
Mosaic Solar Loans, LLC, Series 2018-1, Class A (c) |
4.010 | % | 06/22/43 | 61,682 | 57,101 | |||||||||||
Mosaic Solar Loans, LLC, Series 2017-2, Class B (c) |
4.770 | % | 06/22/43 | 35,760 | 32,535 | |||||||||||
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
ABS-Other — 2.5% continued |
||||||||||||||||
Mosaic Solar Loans, LLC, Series 2023-1A, Class B (c) |
6.920 | % | 06/20/53 | $ | 2,533,721 | $ | 2,514,821 | |||||||||
Mosaic Solar Loans, LLC, Series 2023-2A, Class C (c) |
8.180 | % | 09/22/53 | 4,500,000 | 4,261,744 | |||||||||||
Mosaic Solar Loans, LLC, Series 2023-3A, Class A (c) |
5.910 | % | 11/20/53 | 2,201,671 | 2,199,953 | |||||||||||
PNMAC GMSR Issuer Trust, Series 2022-GT1, Class A (1* SOFR + 425) (a)(c) |
9.587 | % | 05/25/27 | 2,200,000 | 2,199,923 | |||||||||||
Renew Financial, LLC, Series 2017-1, Class A (c) |
3.670 | % | 09/20/52 | 264,515 | 242,759 | |||||||||||
Renew Financial, LLC, Series 2017-1, Class B (c) |
5.750 | % | 09/20/52 | 20,054 | 19,215 | |||||||||||
Renew Financial, LLC, Series 2017-2, Class A (c) |
3.220 | % | 09/22/53 | 28,793 | 25,734 | |||||||||||
SPS Servicer Advance Receivables, Series 2020-T2, Class D (c) |
3.160 | % | 11/15/55 | 994,000 | 876,982 | |||||||||||
Sunnova Hestia I Issuer, LLC, Series 2023-GRIDI, Class A-1 (c) |
5.750 | % | 12/20/50 | 2,213,639 | 2,268,476 | |||||||||||
Sunnova Solar Issuer, LLC, Series 2020-2A, Class A (c) |
2.730 | % | 11/01/55 | 3,755,970 | 3,048,483 | |||||||||||
Westgate Resorts, Series 2020-1A, Class C (c) |
6.213 | % | 03/20/34 | 216,485 | 214,639 | |||||||||||
| 38,267,613 | ||||||||||||||||
Agency CMBS — 1.9% |
||||||||||||||||
FARM Mortgage Trust, Series 2021-1, Class A (c) |
2.180 | % | 01/25/51 | 13,623,421 | 10,789,191 | |||||||||||
62 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Securitized — 61.8% continued |
||||||||||||||||
Agency CMBS — 1.9% continued |
||||||||||||||||
Farmer Mac Agricultural Real Estate, Series 2022-1, Class A (c) |
2.540 | % | 07/25/51 | $ | 3,320,973 | $ | 2,546,771 | |||||||||
Farmer Mac Agricultural Real Estate, Series 2023-1, Class A (c) |
2.631 | % | 01/25/52 | 9,281,620 | 7,167,629 | |||||||||||
FNMA, Pool #AN3598 |
2.550 | % | 12/01/28 | 258,068 | 238,338 | |||||||||||
FNMA, Pool #BL4548 |
2.430 | % | 10/01/29 | 182,945 | 165,743 | |||||||||||
FNMA, Pool #BS0038 |
1.650 | % | 01/01/31 | 2,000,000 | 1,668,157 | |||||||||||
FNMA, Pool #BS0915 |
1.620 | % | 03/01/31 | 3,200,000 | 2,600,334 | |||||||||||
FNMA, Pool #AN6149 |
3.140 | % | 07/01/32 | 750,000 | 676,697 | |||||||||||
FNMA, Pool #AN7612 |
3.280 | % | 12/01/32 | 246,317 | 226,343 | |||||||||||
FNMA, Pool #AM5015 |
4.940 | % | 12/01/43 | 722,489 | 715,949 | |||||||||||
FRESB Multifamily Mortgage Pass-Through Trust, Series 2018-SB57, Class A-10F |
3.710 | % | 07/25/28 | 2,216,804 | 2,126,024 | |||||||||||
| 28,921,176 | ||||||||||||||||
Agency MBS CMO — 24.2% |
||||||||||||||||
FHLMC, Pool #S2-0432 (1* SOFR + 30) (a) |
5.753 | % | 05/15/28 | 31,407 | 31,358 | |||||||||||
FHLMC, Series 4847, Class CV |
3.500 | % | 02/15/30 | 327,896 | 315,580 | |||||||||||
FHLMC, Series 2646, Class ZH |
5.000 | % | 07/15/33 | 138,481 | 137,844 | |||||||||||
FHLMC, Series 4265, Class FD (1* SOFR + 40) (a) |
5.853 | % | 01/15/35 | 180,203 | 177,969 | |||||||||||
FHLMC, Series 4613, Class AF (1* SOFR + 110) (a) |
6.553 | % | 11/15/37 | 283,201 | 279,829 | |||||||||||
FHLMC, Series 3605, Class PB |
4.500 | % | 11/15/39 | 50,868 | 49,139 | |||||||||||
FHLMC, Series 3617, Class PC |
4.500 | % | 12/15/39 | 68,604 | 66,292 | |||||||||||
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Agency MBS CMO — 24.2% continued |
||||||||||||||||
FHLMC, Series 3740, Class FC (1* SOFR + 50) (a) |
5.953 | % | 10/15/40 | $ | 65,339 | $ | 64,075 | |||||||||
FHLMC, Series 3759, Class ME |
4.000 | % | 11/15/40 | 505,358 | 477,995 | |||||||||||
FHLMC, Series 3811, Class TA |
5.000 | % | 02/15/41 | 262,142 | 261,374 | |||||||||||
FHLMC, Series 3895, Class BF (1* SOFR + 50) (a) |
5.953 | % | 07/15/41 | 61,153 | 60,391 | |||||||||||
FHLMC, Series 3923, Class CZ |
5.000 | % | 09/15/41 | 880,984 | 887,341 | |||||||||||
FHLMC, Series 3959, Class PZ |
4.500 | % | 11/15/41 | 3,747,687 | 3,599,431 | |||||||||||
FHLMC, Series 4074, Class JY |
2.500 | % | 07/15/42 | 654,000 | 554,643 | |||||||||||
FHLMC, Series 4116, Class YC |
2.500 | % | 10/15/42 | 1,290,000 | 994,026 | |||||||||||
FHLMC, Series 4180, Class BU |
2.500 | % | 10/15/42 | 2,770,839 | 2,337,531 | |||||||||||
FHLMC, Series 5149, Class CA |
2.000 | % | 01/15/43 | 1,049,335 | 738,685 | |||||||||||
FHLMC, Series 4165, Class ZT |
3.000 | % | 02/15/43 | 6,901,277 | 5,678,704 | |||||||||||
FHLMC, Series 4180, Class ZB |
3.000 | % | 03/15/43 | 173,357 | 128,412 | |||||||||||
FHLMC, Series 4183, Class NQ |
3.000 | % | 03/15/43 | 2,920,000 | 2,609,085 | |||||||||||
FHLMC, Series 4204, Class QZ |
3.000 | % | 05/15/43 | 684,735 | 460,833 | |||||||||||
FHLMC, Series 4210, Class Z |
3.000 | % | 05/15/43 | 338,889 | 277,223 | |||||||||||
FHLMC, Series 4447, Class YZ |
4.000 | % | 08/15/43 | 1,098,246 | 1,048,192 | |||||||||||
FHLMC, Series 4333, Class GL |
3.500 | % | 04/15/44 | 250,000 | 216,938 | |||||||||||
FHLMC, Series 4408, Class BC |
3.000 | % | 11/15/44 | 1,020,410 | 826,737 | |||||||||||
FHLMC, Series 4673, Class PH |
3.500 | % | 01/15/45 | 193,311 | 187,776 | |||||||||||
FHLMC, Series 4448, Class GZ |
2.500 | % | 03/15/45 | 2,803,266 | 2,204,461 | |||||||||||
FHLMC, Series 4473, Class Z |
3.000 | % | 05/15/45 | 413,848 | 325,009 | |||||||||||
FHLMC, Series 4531, Class PZ |
3.500 | % | 11/15/45 | 1,451,134 | 1,353,937 | |||||||||||
FHLMC, Series 4623, Class BZ |
3.500 | % | 10/15/46 | 3,871,021 | 3,497,387 | |||||||||||
FHLMC, Series 4738, Class TW |
3.000 | % | 11/15/46 | 1,385,000 | 1,234,841 | |||||||||||
FHLMC, Series 4857, Class H |
4.000 | % | 11/15/46 | 156,438 | 153,162 | |||||||||||
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 63 |
Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Securitized — 61.8% continued |
||||||||||||||||
Agency MBS CMO — 24.2% continued |
||||||||||||||||
FHLMC, Series 4710, Class GZ |
3.000 | % | 01/15/47 | $ | 4,473,163 | $ | 3,612,716 | |||||||||
FHLMC, Series 5099, Class CM |
2.000 | % | 07/25/47 | 3,750,000 | 2,533,626 | |||||||||||
FHLMC, Series 4738, Class LZ |
3.000 | % | 12/15/47 | 2,760,703 | 2,403,279 | |||||||||||
FHLMC, Series 4736, Class CL |
3.000 | % | 12/15/47 | 441,240 | 370,026 | |||||||||||
FHLMC, Series 4753, Class EZ |
3.500 | % | 12/15/47 | 2,012,371 | 1,809,516 | |||||||||||
FHLMC, Series 4745, Class CZ |
3.500 | % | 01/15/48 | 1,233,301 | 1,100,385 | |||||||||||
FHLMC, Series 4768, Class ZH |
3.000 | % | 03/15/48 | 1,439,922 | 1,256,052 | |||||||||||
FHLMC, Series 4801, Class ZN |
4.000 | % | 05/15/48 | 811,554 | 761,218 | |||||||||||
FHLMC, Series 4941, Class NW |
2.500 | % | 05/25/49 | 758,520 | 501,003 | |||||||||||
FHLMC, Series 4892, Class PZ |
3.000 | % | 07/15/49 | 1,376,621 | 922,558 | |||||||||||
FHLMC, Series 4911, Class JM |
3.500 | % | 09/25/49 | 1,000,000 | 769,730 | |||||||||||
FHLMC, Series 5159, Class WZ |
2.000 | % | 01/25/50 | 670,407 | 395,461 | |||||||||||
FHLMC, Series 5103, Class LH |
1.500 | % | 03/25/50 | 2,431,608 | 1,991,003 | |||||||||||
FHLMC, Series 5057, Class DN |
2.000 | % | 03/25/50 | 934,754 | 759,929 | |||||||||||
FHLMC, Series 4968, Class NP |
6.500 | % | 04/25/50 | 1,468,870 | 1,567,135 | |||||||||||
FHLMC, Series 5129, Class DM |
1.000 | % | 08/25/50 | 1,397,793 | 1,040,484 | |||||||||||
FHLMC, Series 5017, Class CB |
1.500 | % | 09/25/50 | 1,195,921 | 897,188 | |||||||||||
FHLMC, Series 5011, Class DB |
2.000 | % | 09/25/50 | 262,000 | 146,661 | |||||||||||
FHLMC, Series 5038, Class QP |
0.750 | % | 10/25/50 | 2,901,549 | 2,012,538 | |||||||||||
FHLMC, Series 5019, Class PL |
1.000 | % | 10/25/50 | 2,405,779 | 1,755,362 | |||||||||||
FHLMC, Series 5028, Class PW |
1.500 | % | 10/25/50 | 684,000 | 417,170 | |||||||||||
FHLMC, Series 5039, Class JL |
1.250 | % | 11/25/50 | 1,381,816 | 1,025,799 | |||||||||||
FHLMC, Series 5223, Class MZ |
4.500 | % | 12/25/50 | 3,462,756 | 3,085,482 | |||||||||||
FHLMC, Series 5085, Class TY |
1.000 | % | 01/25/51 | 1,263,612 | 732,070 | |||||||||||
FHLMC, Series 5072, Class DG |
1.000 | % | 02/25/51 | 775,885 | 582,586 | |||||||||||
FHLMC, Series 5146, Class ZW |
2.000 | % | 07/25/51 | 1,649,130 | 863,305 | |||||||||||
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Agency MBS CMO — 24.2% continued |
||||||||||||||||
FHLMC, Series 5202, Class DZ |
3.000 | % | 07/25/51 | $ | 2,632,125 | $ | 1,673,600 | |||||||||
FHLMC, Series 5155, Class MG |
1.500 | % | 10/25/51 | 1,037,731 | 840,942 | |||||||||||
FHLMC, Series 5159, Class PL |
1.250 | % | 11/25/51 | 1,479,249 | 1,182,505 | |||||||||||
FHLMC, Series 5162, Class AP |
2.000 | % | 11/25/51 | 2,643,665 | 2,244,285 | |||||||||||
FHLMC, Series 5173, Class BZ |
2.500 | % | 12/25/51 | 1,053,406 | 587,826 | |||||||||||
FHLMC, Series 4377, Class KZ |
3.500 | % | 02/15/52 | 863,916 | 766,660 | |||||||||||
FHLMC, Series 5189, Class ZP |
3.000 | % | 02/25/52 | 1,014,627 | 804,680 | |||||||||||
FHLMC, Series 5210, Class BZ |
3.000 | % | 02/25/52 | 8,601,188 | 5,936,437 | |||||||||||
FHLMC, Series 5232, Class HL |
4.000 | % | 06/25/52 | 4,120,792 | 3,615,862 | |||||||||||
FHLMC, Series 5249, Class PL |
4.000 | % | 08/25/52 | 2,904,186 | 2,530,222 | |||||||||||
FHLMC, Series 5297, Class DB |
5.000 | % | 03/25/53 | 1,239,531 | 1,189,569 | |||||||||||
FHLMC, Series 5318, Class AZ |
5.500 | % | 06/25/53 | 4,679,095 | 4,574,099 | |||||||||||
FHLMC, Series 5332, Class CZ |
6.000 | % | 08/25/53 | 4,047,044 | 4,212,709 | |||||||||||
FNMA, Series 2010-155, Class JH |
4.000 | % | 12/25/28 | 116,554 | 112,282 | |||||||||||
FNMA, Series 2013-35, Class YT |
6.500 | % | 09/25/32 | 122,926 | 126,362 | |||||||||||
FNMA, Series 2012-129, Class HT |
2.000 | % | 12/25/32 | 47,313 | 42,409 | |||||||||||
FNMA, Series 2002-86, Class PG |
6.000 | % | 12/25/32 | 39,342 | 40,377 | |||||||||||
FNMA, Series 2004-56, Class Z |
7.500 | % | 03/25/34 | 82,443 | 88,340 | |||||||||||
FNMA, Series 2004-17, Class BA |
6.000 | % | 04/25/34 | 293,929 | 309,463 | |||||||||||
FNMA, Series 2005-3, Class CG |
5.500 | % | 02/25/35 | 114,755 | 116,483 | |||||||||||
FNMA, Series 2005-62, Class ZL |
5.500 | % | 07/25/35 | 189,403 | 192,197 | |||||||||||
FNMA, Series 2006-71, Class ZH |
6.000 | % | 07/25/36 | 216,936 | 224,516 | |||||||||||
64 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Securitized — 61.8% continued |
||||||||||||||||
Agency MBS CMO — 24.2% continued |
||||||||||||||||
FNMA, Series 2006-56, Class DC (1* SOFR + 65) (a) |
6.102 | % | 07/25/36 | $ | 335,770 | $ | 335,620 | |||||||||
FNMA, Series 2009-19, Class TD |
5.000 | % | 08/25/36 | 65,942 | 65,867 | |||||||||||
FNMA, Series 2007-95, Class A3 (1* SOFR + 25) (a) |
4.549 | % | 08/27/36 | 1,600,000 | 1,464,510 | |||||||||||
FNMA, Series 2006-108, Class FD (1* SOFR + 38) (a) |
5.832 | % | 11/25/36 | 90,132 | 88,903 | |||||||||||
FNMA, Series 2007-39, Class NB |
4.250 | % | 05/25/37 | 84,972 | 84,358 | |||||||||||
FNMA, Series 2008-60, Class JC |
5.000 | % | 07/25/38 | 139,724 | 137,329 | |||||||||||
FNMA, Series 2009-103, Class MB (a) |
5.266 | % | 12/25/39 | 98,545 | 99,952 | |||||||||||
FNMA, Series 2010-118, Class DZ |
4.750 | % | 10/25/40 | 1,406,739 | 1,355,441 | |||||||||||
FNMA, Series 2011-8, Class ZA |
4.000 | % | 02/25/41 | 1,304,455 | 1,250,154 | |||||||||||
FNMA, Series 2011-14, Class PB |
5.000 | % | 03/25/41 | 443,966 | 446,904 | |||||||||||
FNMA, Series 2011-57, Class PD |
4.000 | % | 07/25/41 | 321,407 | 305,670 | |||||||||||
FNMA, Series 2011-62, Class UA |
4.500 | % | 07/25/41 | 619,301 | 603,662 | |||||||||||
FNMA, Series 2012-9, Class FC (1* SOFR + 40) (a) |
5.852 | % | 02/25/42 | 88,058 | 86,745 | |||||||||||
FNMA, Series 2012-40, Class GY |
4.000 | % | 04/25/42 | 989,011 | 944,482 | |||||||||||
FNMA, Series 2013-34, Class GP |
3.000 | % | 05/25/42 | 293,951 | 277,560 | |||||||||||
FNMA, Series 2012-52, Class PQ |
3.500 | % | 05/25/42 | 683,221 | 585,792 | |||||||||||
FNMA, Series 2012-56, Class WC |
3.500 | % | 05/25/42 | 1,216,000 | 1,056,020 | |||||||||||
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Agency MBS CMO — 24.2% continued |
||||||||||||||||
FNMA, Series 2012-79, Class QB |
2.000 | % | 07/25/42 | $ | 99,949 | $ | 89,126 | |||||||||
FNMA, Series 2003-W2, Class 1-1A |
6.500 | % | 07/25/42 | 546,267 | 553,370 | |||||||||||
FNMA, Series 411, Class A3 |
3.000 | % | 08/25/42 | 78,805 | 71,565 | |||||||||||
FNMA, Series 2012-92, Class Z |
3.500 | % | 08/25/42 | 4,766,840 | 4,269,171 | |||||||||||
FNMA, Series 2012-99, Class UY |
2.500 | % | 09/25/42 | 465,000 | 366,384 | |||||||||||
FNMA, Series 2013-35, Class LP |
3.000 | % | 01/25/43 | 419,000 | 394,204 | |||||||||||
FNMA, Series 2013-35, Class CV |
3.000 | % | 02/25/43 | 350,000 | 316,989 | |||||||||||
FNMA, Series 2013-13, Class WH |
3.500 | % | 03/25/43 | 1,072,000 | 898,159 | |||||||||||
FNMA, Series 2013-31, Class NT |
3.000 | % | 04/25/43 | 32,707 | 29,929 | |||||||||||
FNMA, Series 2003-W10, Class 3A-5 |
4.299 | % | 06/25/43 | 2,891,239 | 2,680,310 | |||||||||||
FNMA, Series 2013-84, Class B |
4.000 | % | 08/25/43 | 1,500,000 | 1,336,506 | |||||||||||
FNMA, Series 2013-104, Class CY |
5.000 | % | 10/25/43 | 300,000 | 293,571 | |||||||||||
FNMA, Series 2013-115, Class PB |
4.500 | % | 11/25/43 | 300,000 | 290,036 | |||||||||||
FNMA, Series 2015-11, Class MZ |
4.000 | % | 12/25/43 | 5,178,185 | 4,895,780 | |||||||||||
FNMA, Series 2014-2, Class PB |
4.000 | % | 02/25/44 | 494,850 | 466,175 | |||||||||||
FNMA, Series 2015-24, Class ZA |
3.000 | % | 04/25/45 | 2,323,750 | 2,050,177 | |||||||||||
FNMA, Series 2017-16, Class UW |
3.000 | % | 07/25/45 | 2,044,494 | 1,767,232 | |||||||||||
FNMA, Series 2016-68, Class AL |
3.000 | % | 10/25/46 | 1,114,430 | 994,575 | |||||||||||
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 65 |
Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Securitized — 61.8% continued |
||||||||||||||||
Agency MBS CMO — 24.2% continued |
||||||||||||||||
FNMA, Series 2016-80, Class CZ |
3.000 | % | 11/25/46 | $ | 625,962 | $ | 420,407 | |||||||||
FNMA, Series 2017-77, Class HZ |
3.500 | % | 10/25/47 | 4,129,806 | 3,690,402 | |||||||||||
FNMA, Series 2018-08, Class DZ |
3.500 | % | 02/25/48 | 610,633 | 547,955 | |||||||||||
FNMA, Series 2022-4, Class QM |
2.000 | % | 03/25/48 | 1,602,020 | 1,124,279 | |||||||||||
FNMA, Series 2018-31, Class KB |
3.500 | % | 05/25/48 | 192,238 | 175,742 | |||||||||||
FNMA, Series 2018-31, Class KQ |
3.500 | % | 05/25/48 | 600,000 | 535,871 | |||||||||||
FNMA, Series 2018-37, Class CL |
4.000 | % | 06/25/48 | 622,735 | 519,553 | |||||||||||
FNMA, Series 2018-69, Class PZ |
3.500 | % | 09/25/48 | 1,788,382 | 1,588,674 | |||||||||||
FNMA, Series 2018-66, Class PZ |
4.000 | % | 09/25/48 | 593,136 | 487,809 | |||||||||||
FNMA, Series 2018-77, Class BY |
3.000 | % | 10/25/48 | 2,548,005 | 2,198,982 | |||||||||||
FNMA, Series 2019-01, Class MH |
3.000 | % | 02/25/49 | 199,037 | 178,866 | |||||||||||
FNMA, Series 2019-8, Class ZD |
3.500 | % | 03/25/49 | 592,013 | 525,044 | |||||||||||
FNMA, Series 2019-038, Class MT |
3.000 | % | 07/25/49 | 856,153 | 743,793 | |||||||||||
FNMA, Series 2019-40, Class PL |
4.000 | % | 07/25/49 | 318,000 | 256,664 | |||||||||||
FNMA, Series 2019-42, Class DZ |
2.750 | % | 08/25/49 | 1,710,002 | 1,141,463 | |||||||||||
FNMA, Series 2019-60, Class DZ |
2.500 | % | 10/25/49 | 1,650,174 | 980,238 | |||||||||||
FNMA, Series 2019-60, Class WZ |
2.750 | % | 10/25/49 | 588,587 | 387,951 | |||||||||||
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Agency MBS CMO — 24.2% continued |
||||||||||||||||
FNMA, Series 2020-22, Class CA |
3.000 | % | 10/25/49 | $ | 1,505,845 | $ | 1,349,797 | |||||||||
FNMA, Series 2019-83, Class EB |
2.000 | % | 01/25/50 | 171,000 | 99,387 | |||||||||||
FNMA, Series 2020-15, Class KY |
3.000 | % | 03/25/50 | 2,077,414 | 1,529,052 | |||||||||||
FNMA, Series 2020-22, Class AY |
2.000 | % | 04/25/50 | 1,254,000 | 756,810 | |||||||||||
FNMA, Series 2020-42, Class BY |
2.000 | % | 06/25/50 | 935,000 | 536,504 | |||||||||||
FNMA, Series 2020-55, Class EY |
2.000 | % | 08/25/50 | 2,300,000 | 1,581,130 | |||||||||||
FNMA, Series 2020-95, Class KY |
1.500 | % | 01/25/51 | 2,060,000 | 1,200,892 | |||||||||||
FNMA, Series 2021-15, Class HD |
1.000 | % | 04/25/51 | 946,213 | 683,341 | |||||||||||
FNMA, Series 2021-25, Class JB |
1.000 | % | 05/25/51 | 1,606,772 | 1,204,807 | |||||||||||
FNMA, Series 2021-43, Class CJ |
1.000 | % | 07/25/51 | 3,060,080 | 2,235,252 | |||||||||||
FNMA, Series 2021-43, Class ME |
1.500 | % | 07/25/51 | 1,345,236 | 1,032,255 | |||||||||||
FNMA, Series 2021-66, Class NP |
1.000 | % | 10/25/51 | 3,822,420 | 2,800,702 | |||||||||||
FNMA, Series 2021-73, Class ZD |
2.000 | % | 11/25/51 | 1,443,989 | 681,250 | |||||||||||
FNMA, Series 2022-1, Class GE |
1.500 | % | 02/25/52 | 4,034,224 | 3,376,262 | |||||||||||
FNMA, Series 2022-49, Class GZ |
4.000 | % | 08/25/52 | 4,825,387 | 4,210,817 | |||||||||||
FNMA, Series 2023-21, Class MY |
5.000 | % | 04/25/53 | 2,047,000 | 1,981,742 | |||||||||||
FNMA, Series 2023-67, Class LA |
6.000 | % | 01/25/54 | 8,560,967 | 8,646,577 | |||||||||||
GNMA, Series 2015-161, Class AV |
3.000 | % | 01/20/29 | 271,509 | 257,601 | |||||||||||
66 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Securitized — 61.8% continued |
||||||||||||||||
Agency MBS CMO — 24.2% continued |
||||||||||||||||
GNMA, Series 2018-091, Class VL |
3.500 | % | 10/20/29 | $ | 1,162,488 | $ | 1,104,773 | |||||||||
GNMA, Series 2023-004, Class BV |
5.500 | % | 12/20/33 | 1,164,352 | 1,180,256 | |||||||||||
GNMA, Series 2004-49, Class MZ |
6.000 | % | 06/20/34 | 404,939 | 411,854 | |||||||||||
GNMA, Series 2023-115, Class VL |
6.000 | % | 06/20/34 | 3,159,882 | 3,283,678 | |||||||||||
GNMA, Series 2005-13, Class BG |
5.000 | % | 02/20/35 | 157,595 | 157,758 | |||||||||||
GNMA, Series 2015-123, Class VB |
3.500 | % | 09/20/35 | 436,000 | 421,718 | |||||||||||
GNMA, Series 2006-17, Class JN |
6.000 | % | 04/20/36 | 126,397 | 129,247 | |||||||||||
GNMA, Series 2008-51, Class PH |
5.250 | % | 06/20/38 | 78,660 | 78,250 | |||||||||||
GNMA, Series 2009-2, Class PA |
5.000 | % | 12/20/38 | 42,743 | 42,513 | |||||||||||
GNMA, Series 2014-79, Class HU |
3.000 | % | 02/16/40 | 443,238 | 393,962 | |||||||||||
GNMA, Series 2018-124, Class Z |
4.000 | % | 03/20/41 | 3,801,754 | 3,364,095 | |||||||||||
GNMA, Series 2011-34, Class MB |
4.000 | % | 03/20/41 | 2,265,680 | 2,129,898 | |||||||||||
GNMA, Series 2012-74, Class LY |
2.500 | % | 06/20/42 | 907,000 | 668,762 | |||||||||||
GNMA, Series 2012-134, Class KM |
2.000 | % | 09/20/42 | 342,000 | 265,037 | |||||||||||
GNMA, Series 2012-113, Class NZ |
4.500 | % | 09/20/42 | 301,663 | 284,129 | |||||||||||
GNMA, Series 2013-186, Class PY |
2.000 | % | 11/20/42 | 4,500,000 | 3,748,034 | |||||||||||
GNMA, Series 2013-6, Class PE |
2.000 | % | 01/20/43 | 100,000 | 77,816 | |||||||||||
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Agency MBS CMO — 24.2% continued |
||||||||||||||||
GNMA, Series 2013-5, Class GY |
3.000 | % | 01/20/43 | $ | 737,000 | $ | 600,368 | |||||||||
GNMA, Series 2015-179, Class ZB |
2.500 | % | 02/20/45 | 60,197 | 48,055 | |||||||||||
GNMA, Series 2015-76, Class MZ |
3.000 | % | 05/20/45 | 2,647,503 | 2,296,904 | |||||||||||
GNMA, Series 2016-37, Class YA |
3.000 | % | 12/20/45 | 1,052,822 | 910,221 | |||||||||||
GNMA, Series 2016-38, Class ZP |
3.500 | % | 03/20/46 | 78,665 | 60,086 | |||||||||||
GNMA, Series 2016-74, Class PL |
3.000 | % | 05/20/46 | 1,032,244 | 924,577 | |||||||||||
GNMA, Series 2016-77, Class GY |
3.000 | % | 06/20/46 | 1,110,000 | 972,246 | |||||||||||
GNMA, Series 2016-116, Class AB |
3.000 | % | 09/20/46 | 1,317,254 | 1,091,188 | |||||||||||
GNMA, Series 2016-118, Class LB |
3.000 | % | 09/20/46 | 500,000 | 427,894 | |||||||||||
GNMA, Series 2016-120, Class YZ |
3.000 | % | 09/20/46 | 500,000 | 422,148 | |||||||||||
GNMA, Series 2017-080, Class BZ |
3.500 | % | 05/20/47 | 440,546 | 342,806 | |||||||||||
GNMA, Series 2017-120, Class JZ |
4.000 | % | 08/20/47 | 674,945 | 590,019 | |||||||||||
GNMA, Series 2019-092, Class DB |
2.250 | % | 01/20/48 | 1,599,371 | 1,376,794 | |||||||||||
GNMA, Series 2018-006, Class JY |
2.750 | % | 01/20/48 | 284,000 | 245,511 | |||||||||||
GNMA, Series 2018-14, Class MZ |
3.000 | % | 01/20/48 | 411,917 | 306,713 | |||||||||||
GNMA, Series 2018-024, Class DL |
3.500 | % | 02/20/48 | 1,919,351 | 1,731,442 | |||||||||||
GNMA, Series 2018-097, Class GY |
4.000 | % | 07/20/48 | 1,162,000 | 1,115,393 | |||||||||||
GNMA, Series 2018-105, Class ZK |
4.000 | % | 08/20/48 | 494,943 | 444,501 | |||||||||||
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 67 |
Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Securitized — 61.8% continued |
||||||||||||||||
Agency MBS CMO — 24.2% continued |
||||||||||||||||
GNMA, Series 2018-120, Class PY |
3.500 | % | 09/20/48 | $ | 641,739 | $ | 576,848 | |||||||||
GNMA, Series 2018-154, Class ZU |
4.000 | % | 11/20/48 | 528,004 | 446,383 | |||||||||||
GNMA, Series 2018-166, Class Z |
4.000 | % | 12/20/48 | 505,074 | 425,578 | |||||||||||
GNMA, Series 2019-20, Class JK |
3.500 | % | 02/20/49 | 145,767 | 134,876 | |||||||||||
GNMA, Series 2019-031, Class AZ |
5.000 | % | 03/20/49 | 194,180 | 192,683 | |||||||||||
GNMA, Series 2019-042, Class AB |
3.250 | % | 04/20/49 | 7,110,370 | 6,370,547 | |||||||||||
GNMA, Series 2019-052, Class HL |
4.000 | % | 04/20/49 | 490,565 | 434,394 | |||||||||||
GNMA, Series 2019-085, Class MC |
2.500 | % | 06/20/49 | 1,019,527 | 899,329 | |||||||||||
GNMA, Series 2019-99, Class EW |
3.000 | % | 08/20/49 | 540,446 | 433,992 | |||||||||||
GNMA, Series 2019-99, Class GP |
3.500 | % | 08/20/49 | 517,000 | 415,514 | |||||||||||
GNMA, Series 2021-66, Class YM |
3.500 | % | 09/20/49 | 1,778,079 | 1,546,290 | |||||||||||
GNMA, Series 2019-152, Class LC |
3.500 | % | 10/20/49 | 2,983,840 | 2,753,292 | |||||||||||
GNMA, Series 2020-015, Class EH |
2.500 | % | 02/20/50 | 1,840,369 | 1,529,314 | |||||||||||
GNMA, Series 2020-093, Class AZ |
3.000 | % | 04/20/50 | 862,909 | 603,810 | |||||||||||
GNMA, Series 2020-065, Class YC |
2.000 | % | 05/20/50 | 1,290,114 | 1,039,427 | |||||||||||
GNMA, Series 2020-84, Class LB |
1.250 | % | 06/20/50 | 4,732,949 | 3,694,520 | |||||||||||
GNMA, Series 2021-58, Class NA |
1.000 | % | 07/20/50 | 554,654 | 424,952 | |||||||||||
GNMA, Series 2020-097, Class ML |
2.500 | % | 07/20/50 | 1,975,000 | 1,316,109 | |||||||||||
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Agency MBS CMO — 24.2% continued |
||||||||||||||||
GNMA, Series 2020-133, Class ZM |
1.000 | % | 09/20/50 | $ | 496,831 | $ | 179,645 | |||||||||
GNMA, Series 2020-165, Class BP |
1.000 | % | 11/20/50 | 533,164 | 440,813 | |||||||||||
GNMA, Series 2020-183, Class AE |
1.250 | % | 12/20/50 | 598,103 | 324,797 | |||||||||||
GNMA, Series 2021-089, Class JY |
1.250 | % | 03/20/51 | 1,524,647 | 855,184 | |||||||||||
GNMA, Series 2021-86, Class MB |
1.000 | % | 05/20/51 | 601,875 | 460,725 | |||||||||||
GNMA, Series 2021-081, Class KE |
1.500 | % | 05/20/51 | 4,070,506 | 2,339,651 | |||||||||||
GNMA, Series 2021-121, Class JW |
1.500 | % | 07/20/51 | 1,708,699 | 952,634 | |||||||||||
GNMA, Series 2021-149, Class ZB |
3.000 | % | 08/20/51 | 305,222 | 197,524 | |||||||||||
GNMA, Series 2022-69, Class BY |
2.000 | % | 10/20/51 | 1,000,000 | 735,137 | |||||||||||
GNMA, Series 2022-206, Class GZ |
4.500 | % | 10/20/51 | 1,096,166 | 986,146 | |||||||||||
GNMA, Series 2021-205, Class ZL |
1.500 | % | 11/20/51 | 4,624,630 | 2,069,642 | |||||||||||
GNMA, Series 2021-196, Class YZ |
1.500 | % | 11/20/51 | 1,110,217 | 468,395 | |||||||||||
GNMA, Series 2021-197, Class G |
1.500 | % | 11/20/51 | 3,749,220 | 3,019,079 | |||||||||||
GNMA, Series 2021-216, Class Z |
1.500 | % | 12/20/51 | 5,832,621 | 3,267,701 | |||||||||||
GNMA, Series 2021-216, Class QM |
1.500 | % | 12/20/51 | 1,133,749 | 677,800 | |||||||||||
GNMA, Series 2022-160, Class GZ |
1.750 | % | 01/20/52 | 14,467,440 | 8,896,579 | |||||||||||
GNMA, Series 2022-10, Class QJ |
1.750 | % | 01/20/52 | 1,178,625 | 761,369 | |||||||||||
GNMA, Series 2023-152, Class JL |
6.000 | % | 01/20/52 | 2,362,155 | 2,424,736 | |||||||||||
68 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Securitized — 61.8% continued |
||||||||||||||||
Agency MBS CMO — 24.2% continued |
||||||||||||||||
GNMA, Series 2022-84, Class AL |
3.500 | % | 05/20/52 | $ | 2,812,353 | $ | 2,320,215 | |||||||||
GNMA, Series 2022-101, Class PL |
4.500 | % | 06/20/52 | 9,199,000 | 8,419,376 | |||||||||||
GNMA, Series 2022-205, Class CH |
5.000 | % | 06/20/52 | 3,242,719 | 3,179,032 | |||||||||||
GNMA, Series 2022-129, Class PL |
4.000 | % | 07/20/52 | 3,595,000 | 3,040,780 | |||||||||||
GNMA, Series 2022-125, Class JW |
5.000 | % | 07/20/52 | 2,000,000 | 1,880,536 | |||||||||||
GNMA, Series 2022-136, Class PB |
4.000 | % | 08/20/52 | 1,585,000 | 1,324,717 | |||||||||||
GNMA, Series 2022-160, Class QL |
4.500 | % | 09/20/52 | 5,500,000 | 4,939,355 | |||||||||||
GNMA, Series 2022-183, Class BZ |
5.000 | % | 10/20/52 | 3,073,826 | 2,954,797 | |||||||||||
GNMA, Series 2022-172, Class MZ |
5.500 | % | 10/20/52 | 1,987,135 | 1,968,879 | |||||||||||
GNMA, Series 2022-190, Class DZ |
5.750 | % | 11/20/52 | 2,080,417 | 2,137,042 | |||||||||||
GNMA, Series 2022-197, Class JB |
6.000 | % | 11/20/52 | 1,500,715 | 1,640,169 | |||||||||||
GNMA, Series 2022-205, Class CE |
5.000 | % | 12/20/52 | 2,180,598 | 2,106,298 | |||||||||||
GNMA, Series 2022-209, Class JW |
5.500 | % | 12/20/52 | 2,038,000 | 2,024,249 | |||||||||||
GNMA, Series 2023-13, Class JB |
5.250 | % | 01/20/53 | 505,050 | 477,900 | |||||||||||
GNMA, Series 2023-004, Class PB |
5.500 | % | 01/20/53 | 3,932,000 | 3,961,953 | |||||||||||
GNMA, Series 2023-058, Class PZ |
5.500 | % | 01/20/53 | 5,943,501 | 5,873,005 | |||||||||||
GNMA, Series 2023-4, Class BZ |
5.500 | % | 01/20/53 | 1,603,178 | 1,624,527 | |||||||||||
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Agency MBS CMO — 24.2% continued |
||||||||||||||||
GNMA, Series 2023-070, Class BZ |
6.000 | % | 01/20/53 | $ | 4,693,818 | $ | 4,912,728 | |||||||||
GNMA, Series 2023-35, Class DB |
4.500 | % | 02/20/53 | 1,233,954 | 1,115,039 | |||||||||||
GNMA, Series 2023-018, Class ZA |
5.000 | % | 02/20/53 | 1,708,135 | 1,616,768 | |||||||||||
GNMA, Series 2023-45, Class HZ |
5.000 | % | 03/20/53 | 3,114,917 | 2,919,718 | |||||||||||
GNMA, Series 2023-45, Class EZ |
6.000 | % | 03/20/53 | 1,899,643 | 1,988,049 | |||||||||||
GNMA, Series 2023-055, Class AT |
5.000 | % | 04/20/53 | 7,691,118 | 7,723,879 | |||||||||||
GNMA, Series 2023-065, Class LZ |
5.500 | % | 05/20/53 | 1,209,584 | 1,204,153 | |||||||||||
GNMA, Series 2023-066, Class ZE |
6.500 | % | 05/20/53 | 2,917,174 | 3,089,708 | |||||||||||
GNMA, Series 2023-082, Class GZ |
6.000 | % | 06/20/53 | 2,420,447 | 2,518,339 | |||||||||||
GNMA, Series 2023-081, Class KB |
6.500 | % | 06/20/53 | 4,407,508 | 4,686,613 | |||||||||||
GNMA, Series 2023-096, Class CB |
6.500 | % | 07/20/53 | 3,295,569 | 3,532,754 | |||||||||||
GNMA, Series 2023-128, Class LZ |
6.000 | % | 08/20/53 | 6,465,855 | 6,829,092 | |||||||||||
GNMA, Series 2023-113, Class QC |
6.000 | % | 08/20/53 | 6,188,700 | 6,482,281 | |||||||||||
GNMA, Series 2023-169, Class MB |
6.500 | % | 11/20/53 | 2,150,480 | 2,415,338 | |||||||||||
GNMA, Series 2023-165, Class AZ |
7.000 | % | 11/20/53 | 4,863,204 | 5,556,269 | |||||||||||
GNMA, Series 2017-H18, Class EB (a) |
4.833 | % | 06/20/63 | 45,553 | 44,996 | |||||||||||
GNMA, Series 2014-H14, Class FA (1* TSFR1M + 61) (a) |
5.939 | % | 07/20/64 | 209,740 | 208,669 | |||||||||||
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 69 |
Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Securitized — 61.8% continued |
||||||||||||||||
Agency MBS CMO — 24.2% continued |
||||||||||||||||
GNMA, Series 2016-H11, Class FD (1* TSFR12M + 112) (a) |
4.869 | % | 05/20/66 | $ | 204,780 | $ | 204,096 | |||||||||
GNMA, Series 2017-H16, Class DB (a) |
4.514 | % | 08/20/67 | 24,008 | 23,528 | |||||||||||
| 367,469,314 | ||||||||||||||||
Agency MBS CMO Derivatives — 0.4% |
||||||||||||||||
FHLMC, Series 3919, Class QS (IO) (-1* SOFR + 670) (a) |
1.247 | % | 08/15/30 | 947,294 | 54,823 | |||||||||||
FHLMC, Series 4214, Class CI (IO) |
3.000 | % | 06/15/31 | 87,544 | 445 | |||||||||||
FHLMC, Series 4114, Class IM (IO) |
3.500 | % | 07/15/31 | 123,790 | 1,023 | |||||||||||
FHLMC, Class (PO), Pool #S0-3651 |
0.000 | % | 02/01/34 | 93,828 | 81,403 | |||||||||||
FHLMC, Series 3102, Class TA (IO) (-7.5* SOFR30A + 64) |
7.500 | % | 01/15/36 | 181,534 | 179,639 | |||||||||||
FHLMC, Series 3607, Class AO (PO) |
0.000 | % | 04/15/36 | 62,521 | 52,302 | |||||||||||
FHLMC, Series 237, Class S14 (IO) (-1* SOFR + 660) (a) |
1.147 | % | 05/15/36 | 252,561 | 29,767 | |||||||||||
FHLMC, Series 3199, Class OC (PO) |
0.000 | % | 08/15/36 | 83,526 | 72,963 | |||||||||||
FHLMC, Series 3607, Class OP (PO) |
0.000 | % | 07/15/37 | 235,832 | 194,228 | |||||||||||
FHLMC, Series 4006, Class IA (IO) |
4.500 | % | 09/15/41 | 287,837 | 24,029 | |||||||||||
FHLMC, Series 4422, Class DO (PO) |
0.000 | % | 10/15/41 | 886,301 | 675,020 | |||||||||||
FHLMC, Series 4116, Class LI (IO) |
4.500 | % | 02/15/42 | 1,007,704 | 110,220 | |||||||||||
FHLMC, Series 4074, Class SJ (IO) (-1* SOFR + 662) (a) |
1.167 | % | 07/15/42 | 660,443 | 105,744 | |||||||||||
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Agency MBS CMO Derivatives — 0.4% continued |
||||||||||||||||
FHLMC, Class (PO), Pool #S0-6050 |
0.000 | % | 08/15/42 | $ | 135,784 | $ | 106,155 | |||||||||
FHLMC, Class (PO), Pool #S0-6829 |
0.000 | % | 09/15/43 | 246,406 | 188,189 | |||||||||||
FNMA, Series 2012-148, Class IA (IO) |
4.000 | % | 01/25/28 | 90,197 | 3,537 | |||||||||||
FNMA, Series 2004-91, Class SP (IO) (-2.4* SOFR + 1680) (a) |
3.715 | % | 10/25/31 | 124,753 | 132,058 | |||||||||||
FNMA, Series 2004-61, Class GO (PO) |
0.000 | % | 11/25/32 | 294,015 | 260,306 | |||||||||||
FNMA, Series 2013-89, Class DI (IO) |
4.000 | % | 08/25/33 | 924,904 | 78,828 | |||||||||||
FNMA, Series 2015-82, Class AI (IO) |
3.500 | % | 06/25/34 | 535,905 | 40,365 | |||||||||||
FNMA, Series 2016-28, Class DI (IO) |
3.500 | % | 03/25/35 | 482,774 | 42,575 | |||||||||||
FNMA, Series 384, Class 11 (IO) |
5.000 | % | 03/25/35 | 436,570 | 63,815 | |||||||||||
FNMA, Series 2005-52, Class JH (IO) (-1* SOFR + 660) (a) |
1.148 | % | 05/25/35 | 225,310 | 13,734 | |||||||||||
FNMA, Class (IO) (a) |
5.000 | % | 06/25/35 | 498,591 | 75,207 | |||||||||||
FNMA, Series 2016-24, Class KI (IO) |
3.500 | % | 07/25/35 | 310,111 | 27,503 | |||||||||||
FNMA, Class (IO) |
5.000 | % | 02/25/36 | 364,164 | 48,253 | |||||||||||
FNMA, Series 2006-96, Class MO (PO) |
0.000 | % | 10/25/36 | 21,426 | 18,984 | |||||||||||
FNMA, Series 379, Class I (PO) |
0.000 | % | 05/25/37 | 33,627 | 27,436 | |||||||||||
FNMA, Series 398, Class C5 (IO) |
5.000 | % | 05/25/39 | 549,293 | 102,030 | |||||||||||
FNMA, Series 2010-44, Class CS (IO) (-1* SOFR + 655) (a) |
1.098 | % | 05/25/40 | 37,383 | 3,568 | |||||||||||
FNMA, Series 409, Class C1 (IO) |
4.000 | % | 04/01/42 | 848,349 | 155,509 | |||||||||||
70 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Securitized — 61.8% continued |
||||||||||||||||
Agency MBS CMO Derivatives — 0.4% continued |
||||||||||||||||
FNMA, Series 2012-99, Class QS (IO) (-1* SOFR + 660) (a) |
1.148 | % | 09/25/42 | $ | 1,681,954 | $ | 186,293 | |||||||||
FNMA, Series 2012-128, Class SH (IO) (-1* SOFR + 400) (a) |
0.001 | % | 11/25/42 | 464,337 | 309,650 | |||||||||||
FNMA, Series 2012-128, Class WS (IO) (-1* SOFR + 400) (a) |
0.001 | % | 11/25/42 | 980,829 | 644,318 | |||||||||||
FNMA, Series 2016-32, Class GO (PO) |
0.000 | % | 01/25/43 | 11,453 | 7,052 | |||||||||||
FNMA, Series 2016-30, Class IN (IO) |
3.500 | % | 02/25/43 | 717,822 | 34,805 | |||||||||||
FNMA, Series 2003-W10, Class 3IO (IO) (a) |
0.110 | % | 06/25/43 | 8,115,919 | 3,952 | |||||||||||
FNMA, Series 2013-82, Class SB (IO) (-2.67* SOFR + 1173) (a) |
0.001 | % | 08/25/43 | 350,236 | 270,814 | |||||||||||
FNMA, Series 2013-101, Class DO (PO) |
0.000 | % | 10/25/43 | 87,884 | 65,858 | |||||||||||
FNMA, Series 2014-42, Class SN (IO) (-1* SOFR + 605) (a) |
0.598 | % | 07/25/44 | 340,548 | 40,479 | |||||||||||
FNMA, Series 2019-31, Class CI (IO) |
4.000 | % | 02/25/47 | 694,433 | 46,059 | |||||||||||
FNMA, Series 2018-24, Class IO (IO) |
4.500 | % | 04/25/48 | 1,665,554 | 273,308 | |||||||||||
GNMA, Series 2011-139, Class LS (IO) (-1* TSFR1M + 511) (a) |
0.000 | % | 03/16/38 | 1,704,118 | 88,332 | |||||||||||
GNMA, Series 2013-147, Class SD (IO) (-1* TSFR1M + 676) (a) |
1.178 | % | 12/20/39 | 1,208,085 | 122,269 | |||||||||||
GNMA, Series 2011-21, Class SA (IO) (-1* TSFR1M + 611) (a) |
0.527 | % | 02/16/41 | 1,351,808 | 150,455 | |||||||||||
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Agency MBS CMO Derivatives — 0.4% continued |
||||||||||||||||
GNMA, Series 2013-113, Class QS (IO) (-1* TSFR1M + 631) (a) |
0.728 | % | 02/20/42 | $ | 201,920 | $ | 13,653 | |||||||||
GNMA, Series 2013-82, Class NS (IO) (-1* TSFR1M + 411) (a) |
0.001 | % | 05/20/43 | 1,294,967 | 854,205 | |||||||||||
GNMA, Series 2017-004, Class WI (IO) |
4.000 | % | 02/20/44 | 667,001 | 43,854 | |||||||||||
GNMA, Series 2016-32, Class MS (IO) (-1* TSFR1M + 616) (a) |
0.578 | % | 03/20/46 | 1,687,899 | 204,449 | |||||||||||
GNMA, Series 2019-098, Class BI (IO) |
3.000 | % | 06/20/49 | 847,484 | 219,272 | |||||||||||
GNMA, Series 2013-H13, Class T1 (IO) (a) |
0.457 | % | 05/20/63 | 576,744 | 2,585 | |||||||||||
GNMA, Series 2016-H20, Class GI (IO) (a) |
0.193 | % | 08/20/66 | 384,365 | 478 | |||||||||||
GNMA, Series 2018-H08, Class NI (IO) (a) |
0.768 | % | 05/20/68 | 357,793 | 1,712 | |||||||||||
| 6,553,510 | ||||||||||||||||
Agency MBS Passthrough — 7.2% |
||||||||||||||||
FHLMC, Pool #U5-9010 |
4.000 | % | 11/01/34 | 240,221 | 235,425 | |||||||||||
FHLMC, Pool #G6-1909 |
4.500 | % | 12/01/37 | 310,379 | 311,301 | |||||||||||
FHLMC, Pool #G0-6085 |
6.500 | % | 09/01/38 | 39,984 | 42,093 | |||||||||||
FHLMC, Pool #RB-5090 |
2.000 | % | 12/01/40 | 15,902,893 | 13,687,732 | |||||||||||
FHLMC, Pool #2B-7995 |
2.523 | % | 10/01/50 | 4,073,606 | 3,674,267 | |||||||||||
FHLMC, Pool #RE-6080 |
1.500 | % | 11/01/50 | 1,528,335 | 1,159,961 | |||||||||||
FHLMC, Pool #RE-0015 |
3.000 | % | 11/01/50 | 5,745,780 | 5,146,370 | |||||||||||
FHLMC, Pool #RE-6085 |
1.500 | % | 02/01/51 | 833,402 | 630,458 | |||||||||||
FHLMC, Pool #RE-6093 |
1.500 | % | 04/01/51 | 1,276,787 | 965,879 | |||||||||||
FHLMC, Series 4839, Class AL |
4.000 | % | 04/15/51 | 2,326,401 | 2,031,392 | |||||||||||
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 71 |
Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Securitized — 61.8% continued |
||||||||||||||||
Agency MBS Passthrough — 7.2% continued |
||||||||||||||||
FHLMC, Pool #8C-0205 |
1.854 | % | 02/01/52 | $ | 3,940,018 | $ | 3,511,405 | |||||||||
FNMA, Pool #252409 |
6.500 | % | 03/01/29 | 43,700 | 44,263 | |||||||||||
FNMA, Pool #AL5850 |
3.500 | % | 10/01/29 | 160,570 | 156,626 | |||||||||||
FNMA, Pool #AS7287 |
3.500 | % | 06/01/31 | 273,807 | 266,831 | |||||||||||
FNMA, Pool #AL3200 |
3.500 | % | 02/01/33 | 228,985 | 220,098 | |||||||||||
FNMA, Pool #AT7120 |
3.500 | % | 06/01/33 | 349,970 | 336,252 | |||||||||||
FNMA, Pool #AL5166 |
3.000 | % | 11/01/33 | 216,864 | 204,702 | |||||||||||
FNMA, Pool #AL6685 |
4.000 | % | 01/01/35 | 354,791 | 347,142 | |||||||||||
FNMA, Pool #MA2198 |
3.500 | % | 03/01/35 | 231,245 | 221,458 | |||||||||||
FNMA, Pool #MA3050 |
4.500 | % | 06/01/37 | 347,743 | 347,634 | |||||||||||
FNMA, Pool #AS4073 |
4.000 | % | 12/01/44 | 167,871 | 161,836 | |||||||||||
FNMA, Pool #AS5236 |
4.000 | % | 05/01/45 | 1,085,281 | 1,029,969 | |||||||||||
FNMA, Pool #MA2778 |
3.500 | % | 10/01/46 | 83,442 | 76,150 | |||||||||||
FNMA, Pool #BM6530 |
3.000 | % | 10/01/48 | 308,874 | 279,426 | |||||||||||
FNMA, Pool #BM6732 |
4.000 | % | 11/01/48 | 16,593,349 | 15,666,518 | |||||||||||
FNMA, Pool #CA6940 |
2.247 | % | 09/01/50 | 2,497,090 | 2,227,334 | |||||||||||
FNMA, Pool #BP7449 |
2.041 | % | 10/01/50 | 926,496 | 849,829 | |||||||||||
FNMA, Pool #BM6452 |
2.114 | % | 10/01/50 | 3,420,955 | 3,017,063 | |||||||||||
FNMA, Pool #BQ5239 |
2.222 | % | 10/01/50 | 1,973,669 | 1,822,122 | |||||||||||
FNMA, Pool #MA4199 |
1.500 | % | 11/01/50 | 807,866 | 613,285 | |||||||||||
FNMA, Pool #CA8249 |
1.500 | % | 12/01/50 | 8,226,969 | 6,433,907 | |||||||||||
FNMA, Pool #BK8466 |
2.241 | % | 12/01/50 | 1,063,590 | 945,691 | |||||||||||
FNMA, Pool #MA4294 |
1.500 | % | 03/01/51 | 1,732,873 | 1,311,214 | |||||||||||
FNMA, Pool #BR9977 |
1.782 | % | 06/01/51 | 2,855,425 | 2,456,939 | |||||||||||
GNMA, Pool #MA5738M |
4.000 | % | 02/20/34 | 165,499 | 164,055 | |||||||||||
GNMA, Pool #MA7385M |
2.000 | % | 06/20/36 | 1,458,578 | 1,252,643 | |||||||||||
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Agency MBS Passthrough — 7.2% continued |
||||||||||||||||
GNMA, Pool #784279 |
5.500 | % | 11/15/38 | $ | 269,557 | $ | 276,120 | |||||||||
GNMA, Pool #711522X |
4.500 | % | 07/15/40 | 229,946 | 229,728 | |||||||||||
GNMA, Pool #78541 |
4.500 | % | 06/15/46 | 96,618 | 96,407 | |||||||||||
GNMA, Pool #784792 |
4.500 | % | 08/20/49 | 475,203 | 455,114 | |||||||||||
GNMA, Pool #MA7248 |
3.000 | % | 03/20/51 | 1,047,816 | 922,088 | |||||||||||
GNMA, Pool #CI6717 |
3.000 | % | 10/20/51 | 1,993,348 | 1,808,347 | |||||||||||
GNMA, Pool #MA7929M |
3.500 | % | 03/20/52 | 7,731,445 | 7,042,505 | |||||||||||
GNMA, Pool #CM7497C |
5.000 | % | 08/20/52 | 6,924,555 | 6,767,210 | |||||||||||
GNMA, Pool #CX4361C |
8.000 | % | 11/20/53 | 7,014,398 | 7,308,746 | |||||||||||
GNMA, Pool #CR2128 |
3.000 | % | 04/20/55 | 833,768 | 715,187 | |||||||||||
GNMA, Pool #CN5057 |
4.500 | % | 07/20/62 | 2,530,456 | 2,375,609 | |||||||||||
GNMA, Pool #CN5236C |
4.000 | % | 08/20/62 | 6,823,762 | 6,315,097 | |||||||||||
GNMA, Pool #CN5237 |
4.500 | % | 08/20/62 | 2,468,840 | 2,317,760 | |||||||||||
GNMA, Pool #CQ3549 |
3.000 | % | 10/20/62 | 225,593 | 193,492 | |||||||||||
GNMA, Pool #CS5780 |
3.000 | % | 02/20/63 | 331,941 | 284,708 | |||||||||||
| 108,957,388 | ||||||||||||||||
ARM — 0.0% (d) |
||||||||||||||||
Structured Asset Securities Corp., Series 2003-37A, Class 2-A (a) |
5.769 | % | 12/25/33 | 6,570 | 6,345 | |||||||||||
Auto Loan — 3.2% |
||||||||||||||||
ACM Auto Trust, Series 2023-1A, Class C (c) |
8.590 | % | 01/22/30 | 3,400,000 | 3,384,561 | |||||||||||
ACM Auto Trust, Series 2023-2A, Class A (c) |
7.970 | % | 06/20/30 | 1,612,927 | 1,618,423 | |||||||||||
Arivo Acceptance Auto Loan Receivables Trust, Series 2021-1A, Class A (c) |
1.190 | % | 01/15/27 | 311,632 | 306,831 | |||||||||||
72 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Securitized — 61.8% continued |
||||||||||||||||
Auto Loan — 3.2% continued |
||||||||||||||||
Arivo Acceptance Auto Loan Receivables Trust, Series 2022-2A, Class C (c) |
9.840 | % | 03/15/29 | $ | 2,700,000 | $ | 2,786,663 | |||||||||
CarNow Auto Receivables Trust, Series 2021-1A, Class C (c) |
2.160 | % | 02/17/26 | 115,196 | 114,914 | |||||||||||
CarNow Auto Receivables Trust, Series 2023-1A, Class B (c) |
6.950 | % | 03/16/26 | 2,266,238 | 2,258,501 | |||||||||||
CarNow Auto Receivables Trust, Series 2023-1A, Class D (c) |
7.990 | % | 02/15/28 | 2,500,000 | 2,409,838 | |||||||||||
Credit Acceptance Auto Loan Trust, Series 2023-3A, Class C (c) |
7.620 | % | 12/15/33 | 3,000,000 | 3,039,174 | |||||||||||
Credit Acceptance Auto Loan Trust, Series 2023-5A, Class C (c) |
7.300 | % | 04/17/34 | 1,500,000 | 1,507,388 | |||||||||||
Credito Real USA Auto Receivable, Series 2021-1, Class A (c) |
1.350 | % | 02/16/27 | 27,304 | 27,220 | |||||||||||
Exeter Automobile Receivables Trust, Series 2021-2, Class D |
1.400 | % | 04/15/27 | 8,060,000 | 7,609,880 | |||||||||||
FHF Trust, Series 2021-1, Class A (c) |
1.270 | % | 03/15/27 | 197,129 | 190,640 | |||||||||||
FHF Trust, Series 2021-2A, Class B (c) |
1.630 | % | 09/15/27 | 5,590,000 | 5,150,701 | |||||||||||
First Help Financial, LLC, Series 2023-2, Class C (c) |
8.104 | % | 12/17/29 | 1,750,000 | 1,813,887 | |||||||||||
First Help Financial, LLC, Series 2023-2, Class D (c) |
9.503 | % | 10/15/30 | 1,750,000 | 1,811,272 | |||||||||||
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Auto Loan — 3.2% continued |
||||||||||||||||
Lobel Automobile Receivables Trust, Series 2023-1, Class A (c) |
6.970 | % | 07/15/26 | $ | 834,120 | $ | 835,683 | |||||||||
Lobel Automobile Receivables Trust, Series 2023-2, Class A (c) |
7.590 | % | 04/16/29 | 2,286,497 | 2,301,300 | |||||||||||
Merchants Fleet Funding, LLC, Series 2023-1A, Class D (c) |
8.200 | % | 05/20/36 | 4,000,000 | 4,059,548 | |||||||||||
OneMain Direct Auto Receivables, Series 2019-1, Class D (c) |
4.680 | % | 04/14/31 | 675,000 | 651,404 | |||||||||||
Santander Drive Auto Receivables Trust, Series 2020-4, Class D |
1.480 | % | 01/15/27 | 3,974,681 | 3,887,184 | |||||||||||
US Bank National Association, Series 2023-1, Class B (c) |
6.789 | % | 08/25/32 | 1,200,000 | 1,204,441 | |||||||||||
Veros Auto Receivables Trust, Series 2021-1, Class B (c) |
1.490 | % | 10/15/26 | 645,199 | 636,584 | |||||||||||
Veros Auto Receivables Trust, Series 2023-1, Class A (c) |
7.120 | % | 11/15/28 | 1,521,206 | 1,527,061 | |||||||||||
| 49,133,098 | ||||||||||||||||
CRE/CLO — 3.2% |
||||||||||||||||
A10 Securitization, Series 2021-D, Class D (c) |
4.409 | % | 10/01/38 | 1,241,661 | 1,099,035 | |||||||||||
A10 Securitization, Series 2021-D, Class E (c) |
4.937 | % | 10/01/38 | 1,266,495 | 1,109,206 | |||||||||||
A10 Securitization, Series 2020-C, Class D (c) |
4.129 | % | 08/15/40 | 3,100,000 | 3,083,210 | |||||||||||
A10 Securitization, Series 2020-C, Class E (c) |
5.465 | % | 08/15/40 | 250,000 | 238,712 | |||||||||||
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 73 |
Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Securitized — 61.8% continued |
||||||||||||||||
CRE/CLO — 3.2% continued |
||||||||||||||||
Acre Commercial Mortgage Trust, Series 2021-FL4, Class D (1* TSFR1M + 271) (a)(c) |
8.073 | % | 12/18/37 | $ | 1,000,000 | $ | 948,170 | |||||||||
Acre Commercial Mortgage Trust, Series 2021-FL4, Class E (1* TSFR1M + 321) (a)(c) |
8.573 | % | 12/18/37 | 675,000 | 634,147 | |||||||||||
ACREC, Series 2021-FL1, Class E (1* TSFR1M + 311) (a)(c) |
8.473 | % | 10/16/36 | 2,000,000 | 1,857,722 | |||||||||||
AREIT CRE Trust, Series 2019-CRE3, Class C (1* TSFR1M + 201) (a)(c) |
7.376 | % | 09/14/36 | 1,000,000 | 912,284 | |||||||||||
AREIT CRE Trust, Series 2021-CRE5, Class A (1* TSFR1M + 119) (a)(c) |
6.553 | % | 11/17/38 | 4,351,867 | 4,269,978 | |||||||||||
AREIT CRE Trust, Series 2022-CRE7, Class C (1* SOFR + 384) (a)(c) |
9.201 | % | 06/17/39 | 900,000 | 885,350 | |||||||||||
BDS Ltd., Series 2021-FL8, Class C (1* TSFR1M + 166) (c) |
7.023 | % | 01/18/36 | 1,093,000 | 1,056,140 | |||||||||||
BDS Ltd., Series 2021-FL8, Class D (1* TSFR1M + 201) (a)(c) |
7.373 | % | 01/18/36 | 1,000,000 | 965,364 | |||||||||||
BXMT Ltd., Series 2020-FL2, Class A (1* TSFR1M + 101) (c) |
6.344 | % | 02/15/38 | 5,112,835 | 4,873,958 | |||||||||||
BXMT Ltd., Series 2020-FL2, Class D (1* TSFR1M + 206) (a)(c)(e) |
7.394 | % | 02/15/38 | 1,520,000 | 1,141,731 | |||||||||||
BXMT Ltd., Series 2020-FL2, Class B (1* TSFR1M + 151) (c) |
6.844 | % | 02/18/38 | 2,240,000 | 1,962,746 | |||||||||||
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
CRE/CLO — 3.2% continued |
||||||||||||||||
BXMT Ltd., Series 2021-FL4, Class C (1* TSFR1M + 186) (c) |
7.226 | % | 05/15/38 | $ | 1,600,000 | $ | 1,401,763 | |||||||||
BXMT Ltd., Series 2021-FL4, Class D (1* TSFR1M + 236) (a)(c)(e) |
7.694 | % | 05/15/38 | 2,250,000 | 1,813,867 | |||||||||||
HERA Commercial Mortgage Ltd., Series 2021-FL1, Class C (1* TSFR1M + 206) (c) |
7.396 | % | 02/18/38 | 3,000,000 | 2,856,573 | |||||||||||
KKR Financial Management, Series 2021-FL2, Class A (1* TSFR1M + 118) (c) |
6.546 | % | 02/15/39 | 3,500,000 | 3,405,703 | |||||||||||
KKR Real Estate Finance Trust, Series 2021-FL2, Class A-S (1* TSFR1M + 141) (c) |
6.776 | % | 02/15/39 | 1,500,000 | 1,426,563 | |||||||||||
MF1 Multifamily Housing Mortgage Trust, Series 2021-FL5, Class AS (1* TSFR1M + 131) (a)(c) |
6.676 | % | 07/15/36 | 1,300,000 | 1,271,982 | |||||||||||
MF1 Multifamily Housing Mortgage Trust, Series 2021-FL5, Class C (1* TSFR1M + 181) (a)(c) |
7.176 | % | 07/15/36 | 1,000,000 | 959,020 | |||||||||||
MF1 Multifamily Housing Mortgage Trust, Series 2022-FL8, Class E (1* TSFR1M + 315) (c) |
8.506 | % | 02/19/37 | 200,000 | 185,923 | |||||||||||
MF1 Multifamily Housing Mortgage Trust, Series 2022-FL10, Class D (1* TSFR1M + 573) (a)(c) |
11.085 | % | 09/17/37 | 750,000 | 747,064 | |||||||||||
74 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Securitized — 61.8% continued |
||||||||||||||||
CRE/CLO — 3.2% continued |
||||||||||||||||
PFP Ltd., Series 2021-8, Class A (1* TFSR1M + 111) (a)(c) |
6.476 | % | 08/09/37 | $ | 700,763 | $ | 690,454 | |||||||||
PFP Ltd., Series 2021-8, Class C (1* TFSR1M + 191) (a)(c) |
7.276 | % | 08/09/37 | 1,700,000 | 1,627,305 | |||||||||||
PFP Ltd., Series 2021-7, Class D (1* TSFR1M + 251) (a)(c) |
7.876 | % | 04/14/38 | 1,749,913 | 1,683,719 | |||||||||||
PFP Ltd., Series 2021-7, Class E (1* TFSR1M + 311) (c) |
8.476 | % | 04/14/38 | 1,249,938 | 1,201,469 | |||||||||||
ReadyCap Commercial Mortgage Trust, Series 2021-FL6, Class A (1* TSFR1M + 106) (a)(c) |
6.420 | % | 07/25/36 | 1,841,189 | 1,797,678 | |||||||||||
Shelter Growth Capital Partners, LLC, Series 2021-FL3, Class A (1* TSFR1M + 119) (a)(c) |
6.556 | % | 09/15/36 | 208,438 | 207,833 | |||||||||||
TPG Real Estate Finance, Series 2019-FL3, Class D (1* TSFR1M + 256) (c) |
7.926 | % | 10/15/34 | 1,000,000 | 946,908 | |||||||||||
TPG Real Estate Finance, Series 2019-FL3, Class C (1* TSFR1M + 221) (c) |
7.576 | % | 10/17/34 | 1,572,976 | 1,542,001 | |||||||||||
| 48,803,578 | ||||||||||||||||
Credit Cards — 3.0% |
||||||||||||||||
Brex Commercial Charge Card Master Trust, Series 2022-1, Class A (c) |
4.630 | % | 07/15/25 | 2,700,000 | 2,676,025 | |||||||||||
Continental Credit Card, LLC, Series 2019-1, Class B (c) |
4.950 | % | 08/15/26 | 178,551 | 177,715 | |||||||||||
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Credit Cards — 3.0% continued |
||||||||||||||||
Continental Credit Card, LLC, Series 2020-A, Class A (c) |
2.240 | % | 12/15/28 | $ | 1,600,000 | $ | 1,576,405 | |||||||||
Continental Credit Card, LLC, Series 2020-A, Class B (c) |
3.660 | % | 12/15/28 | 3,000,000 | 2,861,860 | |||||||||||
Continental Credit Card, LLC, Series 2021-A, Class B (c) |
3.490 | % | 12/17/29 | 2,500,000 | 2,339,476 | |||||||||||
Continental Credit Card, LLC, Series 2021-A, Class C (c) |
4.020 | % | 12/17/29 | 2,500,000 | 2,241,241 | |||||||||||
Continental Credit Card, LLC, Series 2022-A, Class C (c) |
9.330 | % | 10/15/30 | 2,300,000 | 2,301,057 | |||||||||||
Genesis Private Label Amortization Trust, Series 2020-1, Class D (c) |
6.630 | % | 07/20/30 | 419,147 | 416,597 | |||||||||||
Genesis Sales Finance Master Trust, Series 2021-AA, Class D (c) |
2.090 | % | 12/21/26 | 1,003,000 | 896,036 | |||||||||||
Genesis Sales Finance Master Trust, Series 2022-B, Class C (c) |
9.530 | % | 09/20/27 | 1,500,000 | 1,512,500 | |||||||||||
Genesis Sales Finance Master Trust, Series 2022-A, Class D (c) |
10.970 | % | 09/20/27 | 1,500,000 | 1,501,940 | |||||||||||
Mercury Financial Credit Card Master Trust, Series 2022-1A, Class A (c) |
2.500 | % | 09/21/26 | 8,150,000 | 7,926,505 | |||||||||||
Mercury Financial Credit Card Master Trust, Series 2022-1A, Class B (c) |
3.200 | % | 09/21/26 | 2,090,000 | 1,978,305 | |||||||||||
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 75 |
Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Securitized — 61.8% continued |
||||||||||||||||
Credit Cards — 3.0% continued |
||||||||||||||||
Mercury Financial Credit Card Master Trust, Series 2022-3A, Class B (c) |
10.680 | % | 06/21/27 | $ | 2,500,000 | $ | 2,504,680 | |||||||||
Mercury Financial Credit Card Master Trust, Series 2023-1A, Class B (c) |
8.040 | % | 09/20/27 | 5,000,000 | 5,054,666 | |||||||||||
Mercury Financial Credit Card Master Trust, Series 2023-1A, Class B (c) |
9.590 | % | 09/20/27 | 3,500,000 | 3,529,108 | |||||||||||
Mission Lane Credit Card Master, Series 2023-A, Class B (c) |
8.150 | % | 07/17/28 | 1,850,000 | 1,851,364 | |||||||||||
Mission Lane Credit Card Master, Series 2023-A, Class C (c) |
10.030 | % | 07/17/28 | 4,000,000 | 4,034,679 | |||||||||||
| 45,380,159 | ||||||||||||||||
Equipment — 0.9% |
||||||||||||||||
Blue Bridge Funding, Inc., Series 2023-1, Class A (c) |
7.370 | % | 11/15/30 | 2,000,000 | 2,004,063 | |||||||||||
Business Jet Securities, LLC, Series 2020-1, Class B (c) |
3.967 | % | 11/15/35 | 104,780 | 99,814 | |||||||||||
Business Jet Securities, LLC, Series 2021-1A, Class B (c) |
2.918 | % | 04/15/36 | 221,345 | 202,272 | |||||||||||
CLI Funding VI, LLC, Series 2020-1, Class B (c) |
3.620 | % | 09/18/45 | 433,713 | 394,335 | |||||||||||
CPF IV, LLC, Series 2023-2, Class A (c) |
7.480 | % | 03/15/32 | 3,816,628 | 3,830,200 | |||||||||||
CPF IV, LLC, Series 2023-2, Class C (c) |
7.560 | % | 03/15/32 | 2,000,000 | 1,876,793 | |||||||||||
DEXT, Series 2023-2, Class D (c) |
8.300 | % | 05/15/34 | 1,500,000 | 1,455,621 | |||||||||||
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Equipment — 0.9% continued |
||||||||||||||||
NMEF Funding, LLC, Series 2023-A, Class C (c) |
8.040 | % | 06/17/30 | $ | 2,000,000 | $ | 1,992,968 | |||||||||
Octane Receivables Trust, Series 2021-1A, Class C (c) |
2.230 | % | 11/20/28 | 1,350,000 | 1,274,721 | |||||||||||
Stellar Jay Ireland DAC, Series 2021-1, Class B (c) |
5.926 | % | 10/15/41 | 767,919 | 613,743 | |||||||||||
| 13,744,530 | ||||||||||||||||
HECM — 3.4% |
||||||||||||||||
Boston Lending Trust, Series 2022-1, Class M2 (c)(e) |
2.750 | % | 02/25/62 | 526,706 | 350,759 | |||||||||||
Brean Asset Backed Securities, Series 2022-RM4, Class M1 (c)(e) |
3.000 | % | 07/25/62 | 1,044,839 | 737,647 | |||||||||||
Brean Asset Backed Securities, Series 2022-RM5, Class M1 (c)(e) |
4.500 | % | 09/25/62 | 2,429,191 | 1,818,617 | |||||||||||
Brean Asset Backed Securities, Series 2022-RM5, Class M2 (c)(e) |
4.500 | % | 09/25/62 | 2,746,042 | 1,831,887 | |||||||||||
Brean Asset Backed Securities, Series 2023-RM6, Class M1 (c)(e) |
5.250 | % | 01/25/63 | 2,823,768 | 2,180,179 | |||||||||||
Brean Asset Backed Securities, Series 2023-RM6, Class M2 (c)(e) |
5.250 | % | 01/25/63 | 2,823,768 | 1,925,830 | |||||||||||
76 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Securitized — 61.8% continued |
||||||||||||||||
HECM — 3.4% continued |
||||||||||||||||
Brean Asset Backed Securities, Series 2023-SRM1, Class M1 (c) |
4.000 | % | 09/25/63 | $ | 3,029,093 | $ | 2,680,640 | |||||||||
Brean Asset Backed Securities, Series 2023-SRM1, Class M3 (c) |
4.000 | % | 09/25/63 | 2,877,639 | 2,231,582 | |||||||||||
Brean Asset Backed Securities, Series 2023-RM7, Class A1 (c) |
4.500 | % | 03/25/78 | 10,000,000 | 9,109,488 | |||||||||||
Brean Asset Backed Securities, Series 2023-RM7, Class A2 (c) |
4.500 | % | 03/25/78 | 6,039,000 | 5,132,908 | |||||||||||
Brean Asset Backed Securities, Series 2023-RM7, Class M1 (c) |
4.500 | % | 03/25/78 | 3,003,750 | 2,031,072 | |||||||||||
Cascade Funding Mortgage Trust, Series 2022-HB8, Class M3 (c) |
3.750 | % | 04/25/25 | 1,500,000 | 1,373,448 | |||||||||||
Cascade Funding Mortgage Trust, Series 2022-HB8, Class A (c) |
3.750 | % | 04/25/25 | 2,508,110 | 2,462,801 | |||||||||||
Finance of America HECM Buyout Trust, Series 2022-HB1, Class M3 (a)(c) |
5.084 | % | 02/25/32 | 1,650,000 | 1,510,995 | |||||||||||
Finance of America HECM Buyout Trust, Series 2022-HB2, Class M3 (c) |
6.000 | % | 08/01/32 | 2,175,000 | 2,021,143 | |||||||||||
Ocwen Loan Investment Trust, Series 2023-HB1, Class M3 (c) |
3.000 | % | 06/25/36 | 4,000,000 | 3,251,348 | |||||||||||
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
HECM — 3.4% continued |
||||||||||||||||
RMF Buyout Issuance Trust, Series 2021-HB1, Class M3 (c) |
3.690 | % | 11/25/31 | $ | 1,550,000 | $ | 1,368,716 | |||||||||
RMF Buyout Issuance Trust, Series 2020-HB1, Class AI (a)(c) |
1.719 | % | 10/25/50 | 1,515,206 | 1,434,975 | |||||||||||
RMF Buyout Issuance Trust, Series 2020-HB1, Class M1 (c) |
2.619 | % | 10/25/50 | 1,500,000 | 1,334,609 | |||||||||||
RMF Proprietary Issuance Trust, Series 2021-2, Class A (a)(c) |
2.125 | % | 09/25/61 | 3,574,644 | 2,890,307 | |||||||||||
RMF Proprietary Issuance Trust, Series 2022-1, Class A (a)(c) |
3.000 | % | 01/25/62 | 1,487,380 | 1,249,821 | |||||||||||
RMF Proprietary Issuance Trust, Series 2022-2, Class M3 (a)(c) |
3.750 | % | 06/25/62 | 1,100,000 | 628,704 | |||||||||||
RMF Proprietary Issuance Trust II, Series 2022-1, Class M1 (a)(c) |
3.000 | % | 01/25/62 | 1,000,000 | 711,879 | |||||||||||
RMF Proprietary Issuance Trust III, Series 2022-1, Class M2 (c) |
3.000 | % | 01/25/62 | 1,000,000 | 623,892 | |||||||||||
| 50,893,247 | ||||||||||||||||
Hospitality — 0.3% |
||||||||||||||||
BHMS Mortgage Trust, Series 2018-ATLS, Class B (1* TSFR1M + 155) (c) |
7.159 | % | 07/15/35 | 1,000,000 | 982,209 | |||||||||||
BX Commercial Mortgage Trust, Series 2020-VIV3, Class B (a)(c) |
3.544 | % | 03/09/44 | 1,870,000 | 1,636,284 | |||||||||||
BX Trust, Series 2018-GW, Class E (1* TSFR1M + 227) (a)(c) |
7.629 | % | 05/15/35 | 1,802,000 | 1,765,622 | |||||||||||
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 77 |
Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Securitized — 61.8% continued |
||||||||||||||||
Hospitality — 0.3% continued |
||||||||||||||||
Goldman Sachs Mortgage Securities Corp. Trust, Series 2018-HULA, Class C (1* TSFR1M + 150) (a)(c) |
7.123 | % | 07/15/25 | $ | 882,756 | $ | 868,291 | |||||||||
| 5,252,406 | ||||||||||||||||
Industrial — 0.4% |
||||||||||||||||
BX Trust, Series 2021-VOLT, Class C (1* TSFR1M + 121) (c) |
6.576 | % | 09/15/36 | 5,000,000 | 4,817,944 | |||||||||||
BX Trust, Series 2021-VOLT, Class D (1* TSFR1M + 176) (a)(c) |
7.126 | % | 09/15/36 | 950,000 | 913,025 | |||||||||||
| 5,730,969 | ||||||||||||||||
Laboratory — 0.1% |
||||||||||||||||
VLS Commercial Mortgage Trust, Series 2020-LAB, Class A (c) |
2.130 | % | 10/10/42 | 2,160,000 | 1,750,675 | |||||||||||
Manufactured Housing — 0.0% (d) |
||||||||||||||||
Cascade Manufactured Housing Asset Trust, Series 2019-MH1, Class M (a)(c) |
5.985 | % | 11/25/44 | 100,000 | 95,455 | |||||||||||
Multifamily — 0.8% |
||||||||||||||||
FREMF Mortgage Trust, Series 2017-KF39, Class B (1* SOFR + 250) (a)(c) |
7.945 | % | 11/25/24 | 330,814 | 325,623 | |||||||||||
FREMF Mortgage Trust, Series 2018-KF42, Class B (1* SOFR + 220) (a)(c) |
7.634 | % | 12/25/24 | 603,756 | 591,741 | |||||||||||
FREMF Mortgage Trust, Series 2018-KF44, Class B (1* SOFR + 215) (a)(c) |
7.595 | % | 02/25/25 | 213,477 | 209,103 | |||||||||||
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Multifamily — 0.8% continued |
||||||||||||||||
FREMF Mortgage Trust, Series 2018-KF53, Class B (1* SOFR + 205) (a)(c) |
7.495 | % | 10/25/25 | $ | 491,756 | $ | 474,766 | |||||||||
FREMF Mortgage Trust, Series 2018-KF43, Class B (1* SOFR + 215) (a)(c) |
7.595 | % | 01/25/28 | 236,208 | 223,385 | |||||||||||
FREMF Mortgage Trust, Series 2018-KF48, Class B (1* SOFR + 205) (c) |
7.495 | % | 06/25/28 | 1,438,424 | 1,287,532 | |||||||||||
FREMF Mortgage Trust, Series 2018-KF50, Class B (1* SOFR + 190) (a)(c) |
7.334 | % | 07/25/28 | 338,254 | 302,383 | |||||||||||
FREMF Mortgage Trust, Series 2019-KF57, Class B (1* SOFR + 225) (a)(c) |
7.695 | % | 01/25/29 | 1,485,409 | 1,390,555 | |||||||||||
FREMF Mortgage Trust, Series 2019-KF67, Class B (1* SOFR + 225) (a)(c) |
7.695 | % | 08/25/29 | 376,257 | 349,938 | |||||||||||
MultiFamily Structured Credit Risk, Series 2021-MN2, Class M-1 (1* SOFR + 180) (a)(c) |
7.137 | % | 07/25/41 | 2,568,017 | 2,401,957 | |||||||||||
MultiFamily Structured Credit Risk, Series 2021-MN1, Class M-1 (1* SOFR + 200) (a)(c) |
7.337 | % | 01/25/51 | 946,206 | 918,015 | |||||||||||
MultiFamily Structured Credit Risk, Series 2021-MN3, Class M-1 (1* SOFR + 230) (a)(c) |
7.637 | % | 11/25/51 | 1,731,021 | 1,683,645 | |||||||||||
MultiFamily Structured Credit Risk, Series 2022-MN4, Class M-1 (1* SOFR + 425) (a)(c) |
9.578 | % | 05/25/52 | 1,957,667 | 1,970,841 | |||||||||||
| 12,129,484 | ||||||||||||||||
78 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Securitized — 61.8% continued |
||||||||||||||||
Non-Agency MBS 2.0 — 0.2% |
||||||||||||||||
Chase Mortgage Finance Corp., Series 2021-CL1, Class M3 (1* SOFR + 155) (a) |
6.887 | % | 02/25/50 | $ | 662,525 | $ | 590,486 | |||||||||
J.P. Morgan Wealth Management, Series 2021-CL1, Class M1 (1* SOFR + 130) (a)(c) |
6.637 | % | 03/25/51 | 611,169 | 576,602 | |||||||||||
J.P. Morgan Wealth Management, Series 2021-CL1, Class M3 (1* SOFR + 180) (a)(c) |
7.137 | % | 03/25/51 | 1,691,369 | 1,544,980 | |||||||||||
| 2,712,068 | ||||||||||||||||
Non-Performing Loan — 0.2% |
||||||||||||||||
Cascade Funding Mortgage Trust, Series 2021-1, Class A (c) |
0.985 | % | 11/25/50 | 1,708,034 | 1,619,859 | |||||||||||
Cascade Funding Mortgage Trust, Series 2021-EBO1, Class M3 (a)(c) |
3.086 | % | 11/25/50 | 700,000 | 613,912 | |||||||||||
| 2,233,771 | ||||||||||||||||
Office — 0.3% |
||||||||||||||||
Drop Mortgage Trust, Series 2021-FILE, Class A (1* TSFR1M + 126) (c) |
6.626 | % | 10/15/43 | 2,000,000 | 1,847,500 | |||||||||||
Drop Mortgage Trust, Series 2021-FILE, Class C (1* TSFR1M + 236) (a)(c) |
7.726 | % | 10/15/43 | 3,000,000 | 2,422,524 | |||||||||||
| 4,270,024 | ||||||||||||||||
Residential Transition Loan — 1.6% |
||||||||||||||||
AlphaFlow Transitional Mortgage Co., Series 2021-WL1, Class A1 (c) |
3.280 | % | 01/25/26 | $ | 1,021,523 | $ | 982,172 | |||||||||
AlphaFlow Transitional Mortgage Co., Series 2021-WL1, Class A2 (c) |
5.610 | % | 01/25/26 | 237,564 | 229,093 | |||||||||||
Antler Mortgage Trust, Series 2021-RTL1, Class M (a)(c) |
5.438 | % | 05/25/25 | 1,750,000 | 1,620,522 | |||||||||||
Corevest American Finance Ltd., Series 2021-RTL1, Class A2 (c) |
3.104 | % | 03/28/29 | 1,000,000 | 928,105 | |||||||||||
LHOME Mortgage Trust, Series 2021-RTL1, Class M (a)(c) |
4.458 | % | 02/25/26 | 750,000 | 689,727 | |||||||||||
LHOME Mortgage Trust, Series 2021-RTL2, Class A2 (c) |
2.783 | % | 06/25/26 | 700,000 | 650,390 | |||||||||||
LHOME Mortgage Trust, Series 2021-RTL2, Class M (c) |
4.458 | % | 06/25/26 | 1,981,000 | 1,848,493 | |||||||||||
LHOME Mortgage Trust, Series 2022-RTL1, Class A2 (c) |
4.948 | % | 02/25/27 | 1,355,000 | 1,273,064 | |||||||||||
LHOME Mortgage Trust, Series 2022-RTL1, Class M (c) |
6.900 | % | 02/25/27 | 1,250,000 | 1,167,969 | |||||||||||
New York Mortgage Trust, Series 2021-BPL1, Class A1 (c) |
2.239 | % | 05/25/26 | 1,527,821 | 1,515,199 | |||||||||||
New York Mortgage Trust, Series 2022-BPL1, Class A2 (c) |
4.948 | % | 11/25/27 | 1,200,000 | 1,163,742 | |||||||||||
ROC Securities Trust, Series 2021-RTL1, Class A1 (c) |
2.487 | % | 08/25/26 | 1,022,019 | 1,007,116 | |||||||||||
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 79 |
Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Securitized — 61.8% continued |
||||||||||||||||
Residential Transition Loan — 1.6% continued |
||||||||||||||||
ROC Securities Trust, Series 2021-RTL1, Class A2 (c) |
3.351 | % | 08/25/26 | $ | 3,500,000 | $ | 3,245,726 | |||||||||
Toorak Mortgage Corp., Series 2021-1, Class A-1 (c) |
2.240 | % | 06/25/24 | 336,746 | 329,830 | |||||||||||
Toorak Mortgage Corp., Series 2022-1, Class A2 (c) |
4.948 | % | 03/25/29 | 1,000,000 | 982,917 | |||||||||||
TVC Mortgage Trust, Series 2023-RTL1, Class A2 (c) |
9.500 | % | 11/25/27 | 6,000,000 | 6,020,040 | |||||||||||
| 23,654,105 | ||||||||||||||||
Retail — 0.8% |
||||||||||||||||
BX Trust, Series 2021-VIEW, Class B (1* SOFR + 180) (a)(c) |
7.276 | % | 06/15/36 | 1,150,000 | 1,092,421 | |||||||||||
BX Trust, Series 2021-VIEW, Class E (1* SOFR + 360) (a)(c)(e) |
9.076 | % | 06/15/36 | 1,650,000 | 1,502,432 | |||||||||||
Credit Suisse Mortgage Trust, Series 2018-SITE, Class A (c) |
4.284 | % | 04/15/36 | 1,857,000 | 1,850,965 | |||||||||||
Credit Suisse Mortgage Trust, Series 2018-SITE, Class C (a)(c) |
4.941 | % | 04/15/36 | 300,000 | 297,756 | |||||||||||
Credit Suisse Mortgage Trust, Series 2018-SITE, Class D (1* TSFR1M + 101) (a)(c) |
4.941 | % | 04/15/36 | 235,000 | 232,869 | |||||||||||
Wells Fargo Mortgage Trust, Series 2021-SAVE, Class A (1* SOFR + 115) (c) |
6.626 | % | 02/15/40 | 3,797,213 | 3,691,429 | |||||||||||
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Retail — 0.8% continued |
||||||||||||||||
Wells Fargo Mortgage Trust, Series 2021-SAVE, Class B (1* SOFR + 145) (a)(c) |
6.926 | % | 02/15/40 | $ | 2,123,200 | $ | 1,974,124 | |||||||||
Wells Fargo Mortgage Trust, Series 2021-SAVE, Class C (1* SOFR + 180) (a)(c) |
7.276 | % | 02/15/40 | 580,000 | 526,349 | |||||||||||
Wells Fargo Mortgage Trust, Series 2021-SAVE, Class D (1* SOFR + 250) (a)(c) |
7.976 | % | 02/15/40 | 1,524,000 | 1,367,157 | |||||||||||
| 12,535,502 | ||||||||||||||||
Single Family Rental — 1.7% |
||||||||||||||||
American Homes 4 Rent, Series 2014-SFR2, Class A (c) |
3.790 | % | 10/17/36 | 4,246,971 | 4,178,178 | |||||||||||
American Homes 4 Rent, Series 2014-SFR2, Class D (c) |
3.678 | % | 12/17/36 | 1,818,658 | 1,783,476 | |||||||||||
American Homes 4 Rent, Series 2015-SFR1, Class A (c) |
3.467 | % | 04/17/52 | 2,640,725 | 2,567,012 | |||||||||||
American Homes 4 Rent, Series 2015-SFR2, Class A (c) |
3.732 | % | 10/18/52 | 3,876,025 | 3,758,003 | |||||||||||
Home Partners of America Trust, Series 2021-2, Class D (c) |
2.652 | % | 12/17/26 | 962,239 | 867,027 | |||||||||||
Home Partners of America Trust, Series 2019-1, Class B (c) |
3.157 | % | 09/17/39 | 473,076 | 430,336 | |||||||||||
Home Partners of America Trust, Series 2019-2, Class B (c) |
2.922 | % | 10/19/39 | 598,837 | 546,191 | |||||||||||
Progress Residential Trust, Series 2023-SFR2, Class E1 (c) |
4.750 | % | 10/17/28 | 2,000,000 | 1,811,552 | |||||||||||
80 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Securitized — 61.8% continued |
||||||||||||||||
Single Family Rental — 1.7% continued |
||||||||||||||||
Progress Residential Trust, Series 2019-SFR3, Class A (c) |
2.271 | % | 09/17/36 | $ | 668,964 | $ | 651,017 | |||||||||
Progress Residential Trust, Series 2019-SFR3, Class C (c) |
2.721 | % | 09/17/36 | 2,000,000 | 1,948,203 | |||||||||||
Progress Residential Trust, Series 2019-SFR4, Class B (c) |
2.937 | % | 10/17/36 | 1,910,000 | 1,860,077 | |||||||||||
Progress Residential Trust, Series 2020-SFR1, Class A (c) |
1.732 | % | 04/17/37 | 5,973,258 | 5,690,829 | |||||||||||
| 26,091,901 | ||||||||||||||||
Small Business — 1.1% |
||||||||||||||||
Credibility Asset Securitization, Series 2021-1A, Class A (c) |
2.390 | % | 04/15/26 | 6,000,000 | 5,913,061 | |||||||||||
Credibility Asset Securitization, Series 2021-1A, Class C (c) |
3.380 | % | 04/15/26 | 1,250,000 | 1,222,313 | |||||||||||
FORA Financial Asset Securitization, Series 2021-1A, Class C (c) |
3.850 | % | 05/15/27 | 418,000 | 392,725 | |||||||||||
Newtek Small Business Loan Trust, Series 2018-1, Class A (1* Prime — 55) (a)(c) |
7.950 | % | 02/25/44 | 264,394 | 262,077 | |||||||||||
Newtek Small Business Loan Trust, Series 2018-1, Class B (1* Prime + 75) (a)(c) |
9.250 | % | 02/25/44 | 69,577 | 69,120 | |||||||||||
Newtek Small Business Loan Trust, Series 2019-01, Class A (1* Prime — 90) (a)(c) |
7.600 | % | 12/25/44 | 288,275 | 285,128 | |||||||||||
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Small Business — 1.1% continued |
||||||||||||||||
Newtek Small Business Loan Trust, Series 2022-1, Class B (1* SOFR + 375) (a)(c) |
8.750 | % | 10/25/49 | $ | 1,195,881 | $ | 1,180,531 | |||||||||
Newtek Small Business Loan Trust, Series 2023-1, Class B (1* Prime + 75) (c) |
9.250 | % | 07/25/50 | 2,933,669 | 2,916,190 | |||||||||||
OnDeck Asset Securitization Trust, Series 2021-1A, Class B (c) |
2.280 | % | 05/17/27 | 750,000 | 732,025 | |||||||||||
OnDeck Asset Securitization Trust, Series 2021-1A, Class C (c) |
2.970 | % | 05/17/27 | 650,000 | 624,728 | |||||||||||
OnDeck Asset Securitization Trust, Series 2023-1, Class C (c) |
9.930 | % | 08/19/30 | 3,350,000 | 3,352,588 | |||||||||||
| 16,950,486 | ||||||||||||||||
Student Loan — 0.5% |
||||||||||||||||
College Ave Student Loans, Series 2018-A, Class B (c) |
4.750 | % | 12/26/47 | 55,944 | 53,578 | |||||||||||
College Ave Student Loans, Series 2018-A, Class C (c) |
5.500 | % | 12/26/47 | 51,437 | 50,127 | |||||||||||
College Ave Student Loans, Series 2019-A, Class C (c) |
4.460 | % | 12/28/48 | 151,047 | 141,453 | |||||||||||
College Ave Student Loans, Series 2019-A, Class A1 (1* SOFR + 140) (a)(c) |
6.870 | % | 12/28/48 | 87,741 | 87,083 | |||||||||||
College Ave Student Loans, Series 2021-A, Class B (c) |
2.320 | % | 07/25/51 | 419,843 | 375,697 | |||||||||||
College Ave Student Loans, Series 2021-A, Class D (c) |
4.120 | % | 07/25/51 | 388,988 | 357,240 | |||||||||||
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 81 |
Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Securitized — 61.8% continued |
||||||||||||||||
Student Loan — 0.5% continued |
||||||||||||||||
Laurel Road Prime Student Loan, Series 2018-B, Class A2 (c) |
3.540 | % | 05/26/43 | $ | 2,769 | $ | 2,751 | |||||||||
Laurel Road Prime Student Loan, Series 2019-A, Class A2FX (c) |
2.730 | % | 10/25/48 | 1,264,418 | 1,233,025 | |||||||||||
Prodigy Finance, Series 2021-1A, Class A (1* TSFR1M + 136) (a)(c) |
6.720 | % | 07/25/51 | 280,693 | 278,276 | |||||||||||
SMB Private Education Loan Trust, Series 2018-C, Class B (c) |
4.000 | % | 11/17/42 | 200,000 | 185,045 | |||||||||||
Social Professional Loan Program, Series 2017-B, Class CFX (a)(c) |
4.440 | % | 05/25/40 | 900,000 | 836,236 | |||||||||||
Social Professional Loan Program, Series 2017-E, Class C (c) |
4.160 | % | 11/26/40 | 1,585,000 | 1,464,551 | |||||||||||
Social Professional Loan Program, Series 2020-A, Class BFX (c) |
3.120 | % | 05/15/46 | 425,000 | 344,193 | |||||||||||
Social Professional Loan Program, Series 2018-D, Class BFX (c) |
4.140 | % | 02/25/48 | 500,000 | 455,618 | |||||||||||
Social Professional Loan Program, Series 2019-B, Class BFX (c) |
3.730 | % | 08/17/48 | 750,000 | 660,597 | |||||||||||
Social Professional Loan Program, Series 2019-C, Class BFX (c) |
3.050 | % | 11/16/48 | 1,130,000 | 950,427 | |||||||||||
| 7,475,897 | ||||||||||||||||
Unsecured Consumer — 3.9% |
||||||||||||||||
ACHV ABS Trust, Series 2023-1PL, Class C (c) |
7.420 | % | 03/18/30 | 1,500,000 | 1,515,506 | |||||||||||
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Unsecured Consumer — 3.9% continued |
||||||||||||||||
ACHV ABS Trust, Series 2023-3PL, Class D (c) |
8.360 | % | 08/19/30 | $ | 1,250,000 | $ | 1,277,215 | |||||||||
ACHV ABS Trust, Series 2023-4CP, Class C (c) |
7.710 | % | 11/25/30 | 2,500,000 | 2,541,975 | |||||||||||
ACHV ABS Trust, Series 2023-4CP, Class D (c) |
8.600 | % | 11/25/30 | 2,000,000 | 2,044,134 | |||||||||||
Affirm, Inc., Series 2022-Z1, Class B (c) |
6.490 | % | 06/15/27 | 1,500,000 | 1,463,259 | |||||||||||
Affirm, Inc., Series 2023-B, Class B (c) |
7.440 | % | 09/15/28 | 5,000,000 | 5,085,069 | |||||||||||
AMCR ABS Trust, Series 2023-1, Class A (c) |
7.660 | % | 01/21/31 | 2,000,000 | 2,003,625 | |||||||||||
AMCR ABS Trust, Series 2023-1, Class B (c) |
8.700 | % | 01/21/31 | 2,000,000 | 2,022,134 | |||||||||||
Avant Loans Funding Trust, Series 2021-REV1, Class A (c) |
1.210 | % | 07/15/30 | 1,029,906 | 1,022,572 | |||||||||||
Avant Loans Funding Trust, Series 2021-REV1, Class C (c) |
2.300 | % | 07/15/30 | 1,800,000 | 1,717,313 | |||||||||||
Bankers Healthcare Group Securitization Trust, Series 2023-B, Class C (c) |
8.150 | % | 12/17/36 | 1,000,000 | 1,028,847 | |||||||||||
Conn Funding II, LP, Series 2023-A, Class A (c) |
8.010 | % | 01/17/28 | 1,767,711 | 1,771,359 | |||||||||||
Freedom Financial Trust, Series 2022-3FP, Class D (c) |
7.360 | % | 08/20/29 | 5,500,000 | 5,515,445 | |||||||||||
Lendmark Funding Trust, Series 2020-2, Class B (c) |
3.540 | % | 04/21/31 | 1,195,000 | 1,086,820 | |||||||||||
Lendmark Funding Trust, Series 2020-2A, Class C (c) |
4.690 | % | 04/21/31 | 550,000 | 499,347 | |||||||||||
Lendmark Funding Trust, Series 2021-1A, Class C (c) |
3.410 | % | 11/20/31 | 750,000 | 652,906 | |||||||||||
82 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Securitized — 61.8% continued |
||||||||||||||||
Unsecured Consumer — 3.9% continued |
||||||||||||||||
Lendmark Funding Trust, Series 2023-1A, Class C (c) |
6.160 | % | 05/20/33 | $ | 2,000,000 | $ | 1,979,072 | |||||||||
Mariner Finance Issuance Trust, Series 2023-AA, Class D (c) |
8.850 | % | 10/22/35 | 1,000,000 | 1,023,620 | |||||||||||
Mariner Finance Issuance Trust, Series 2021-AA, Class D (c) |
4.340 | % | 03/20/36 | 1,000,000 | 878,686 | |||||||||||
Oportun Funding XIV, LLC, Series 2021-A, Class C (c) |
3.440 | % | 03/08/28 | 1,783,587 | 1,698,566 | |||||||||||
Oportun Funding, LLC, Series 2022-1, Class C (c) |
6.000 | % | 06/15/29 | 1,000,000 | 972,647 | |||||||||||
Oportun Funding, LLC, Series 2021-B, Class A (c) |
1.470 | % | 05/08/31 | 3,000,000 | 2,802,293 | |||||||||||
Oportun Funding, LLC, Series 2022-A, Class C (c) |
7.400 | % | 06/09/31 | 2,500,000 | 2,423,104 | |||||||||||
Oportun Funding, LLC, Series 2021-C, Class A (c) |
2.180 | % | 10/08/31 | 2,260,000 | 2,085,366 | |||||||||||
Oportun Funding, LLC, Series 2021-C, Class B (c) |
2.670 | % | 10/08/31 | 3,750,000 | 3,425,725 | |||||||||||
Reach Financial, LLC, Series 2021-1A, Class B (c) |
2.170 | % | 05/15/29 | 1,500,000 | 1,451,016 | |||||||||||
Regional Management Issuance Trust, Series 2020-1, Class A (c) |
2.340 | % | 10/15/30 | 1,183,592 | 1,156,092 | |||||||||||
Regional Management Issuance Trust, Series 2021-1, Class C (c) |
3.040 | % | 03/17/31 | 1,191,000 | 1,068,332 | |||||||||||
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Securitized — 61.8% continued |
||||||||||||||||
Unsecured Consumer — 3.9% continued |
||||||||||||||||
Regional Management Issuance Trust, Series 2021-2, Class C (c) |
3.230 | % | 08/15/33 | $ | 650,000 | $ | 538,396 | |||||||||
Republic Finance Issuance Trust, Series 2020-A, Class B (c) |
3.540 | % | 11/20/30 | 1,185,000 | 1,138,212 | |||||||||||
Upstart Pass-Through Trust, Series 2021-ST4, Class A (c) |
2.000 | % | 07/20/27 | 1,673,403 | 1,595,500 | |||||||||||
Upstart Pass-Through Trust, Series 2021-1A, Class C (c) |
1.750 | % | 10/20/29 | 1,830,995 | 1,803,789 | |||||||||||
Upstart Pass-Through Trust, Series 2022-ST1, Class A (c) |
2.600 | % | 03/20/30 | 313,442 | 307,711 | |||||||||||
Upstart Securitization Trust, Series 2021-3, Class B (c) |
1.660 | % | 07/20/31 | 325,742 | 321,258 | |||||||||||
Upstart Securitization Trust, Series 2022-4, Class A (c) |
5.980 | % | 08/20/32 | 1,171,345 | 1,167,739 | |||||||||||
Upstart Structured Pass-Through Trust, Series 2022-2A, Class A (c) |
4.250 | % | 06/17/30 | 762,936 | 745,337 | |||||||||||
| 59,829,987 | ||||||||||||||||
Total Securitized |
||||||||||||||||
(Cost 961,135,580) |
$ | 938,842,688 | ||||||||||||||
Treasury — 17.3% |
||||||||||||||||
U.S. Treasury Inflation-Protected Notes |
0.500 | % | 04/15/24 | 5,489,640 | 5,420,376 | |||||||||||
U.S. Treasury Notes |
1.625 | % | 02/15/26 | 5,000,000 | 4,738,086 | |||||||||||
U.S. Treasury Inflation-Protected Notes |
0.125 | % | 04/15/26 | 5,866,050 | 5,583,293 | |||||||||||
U.S. Treasury Notes (b) |
2.250 | % | 08/15/27 | 2,000,000 | 1,886,250 | |||||||||||
U.S. Treasury Notes |
0.500 | % | 10/31/27 | 15,000,000 | 13,186,523 | |||||||||||
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 83 |
Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2023
|
Coupon |
Maturity |
Shares / |
Fair |
||||||||||||
Treasury — 17.3% continued |
||||||||||||||||
U.S. Treasury Notes |
1.250 | % | 09/30/28 | $ | 26,000,000 | $ | 23,042,500 | |||||||||
U.S. Treasury Notes (b) |
3.875 | % | 11/30/29 | 5,000,000 | 4,990,430 | |||||||||||
U.S. Treasury Notes |
0.625 | % | 08/15/30 | 35,000,000 | 28,389,648 | |||||||||||
U.S. Treasury STRIPS |
0.000 | % | 11/15/31 | 2,000,000 | 1,466,085 | |||||||||||
U.S. Treasury STRIPS |
0.000 | % | 02/15/33 | 2,000,000 | 1,389,594 | |||||||||||
U.S. Treasury STRIPS |
0.000 | % | 05/15/33 | 2,100,000 | 1,443,247 | |||||||||||
U.S. Treasury STRIPS |
0.000 | % | 08/15/33 | 4,000,000 | 2,719,603 | |||||||||||
U.S. Treasury STRIPS |
0.000 | % | 08/15/34 | 10,000,000 | 6,510,233 | |||||||||||
U.S. Treasury STRIPS |
0.000 | % | 11/15/34 | 5,000,000 | 3,221,413 | |||||||||||
U.S. Treasury STRIPS |
0.000 | % | 05/15/35 | 5,000,000 | 3,151,880 | |||||||||||
U.S. Treasury STRIPS |
0.000 | % | 02/15/36 | 15,000,000 | 9,143,620 | |||||||||||
U.S. Treasury STRIPS |
0.000 | % | 02/15/37 | 12,000,000 | 6,999,793 | |||||||||||
U.S. Treasury STRIPS |
0.000 | % | 02/15/38 | 10,000,000 | 5,568,235 | |||||||||||
U.S. Treasury STRIPS |
0.000 | % | 11/15/38 | 10,000,000 | 5,358,217 | |||||||||||
U.S. Treasury Bonds |
1.125 | % | 08/15/40 | 40,000,000 | 25,531,250 | |||||||||||
U.S. Treasury Bonds |
1.375 | % | 11/15/40 | 35,000,000 | 23,221,680 | |||||||||||
U.S. Treasury STRIPS |
0.000 | % | 08/15/41 | 5,000,000 | 2,315,116 | |||||||||||
U.S. Treasury Inflation-Protected Notes |
0.625 | % | 02/15/43 | 24,088,140 | 18,803,715 | |||||||||||
U.S. Treasury Bonds |
2.250 | % | 08/15/46 | 20,000,000 | 14,219,531 | |||||||||||
U.S. Treasury Bonds |
3.000 | % | 02/15/48 | 24,000,000 | 19,557,187 | |||||||||||
U.S. Treasury Bonds |
1.250 | % | 05/15/50 | 23,000,000 | 12,393,945 | |||||||||||
U.S. Treasury Bonds (b) |
1.625 | % | 11/15/50 | 21,000,000 | 12,511,406 | |||||||||||
Total Treasury |
||||||||||||||||
(Cost 270,204,989) |
$ | 262,762,856 | ||||||||||||||
|
Shares |
Fair |
||||||
Registered Investment Companies — 5.9% |
||||||||
State Street Institutional Liquid Reserves Fund - Premier Class, 5.49% (f) |
74,445,486 | $ | 74,490,153 | |||||
State Street Navigator Securities Lending Portfolio I, 5.09% (f)(g) |
15,082,372 | 15,082,372 | ||||||
Total Registered Investment Companies |
||||||||
(Cost $89,549,894) |
$ | 89,572,525 | ||||||
Total Investment Securities — 100.6% |
||||||||
(Cost $1,559,750,997) |
$ | 1,528,337,207 | ||||||
Liabilities in Excess of Other Assets — (0.6)% |
(9,202,837 | ) | ||||||
Net Assets — 100.0% |
$ | 1,519,134,370 | ||||||
|
(a) |
Variable rate security. The rate shown is the effective interest rate as of December 31, 2023. The benchmark on which the rate is calculated is shown parenthetically, if applicable. Certain variable rate securities are not based on a published rate and spread but are determined by the issuer or agent and may be based on index changes, prerepayment of underlying positions and/or other variables. These securities do not indicate a reference rate and spread in their description above. |
|
(b) |
All or a portion of the security is on loan. The total fair value of the securities on loan as of December 31, 2023 was $29,132,594. |
|
(c) |
Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities have been deemed liquid under procedures approved by the Fund’s Board of Trustees and may normally be sold to qualified institutional buyers in transactions exempt from registration. The total fair value of these securities as of 12/31/2023 was $457,829,411, representing 30.1% of net assets. |
|
(d) |
Percentage rounds to less than 0.1%. |
|
(e) |
Illiquid security as determined under procedures approved by the Board of Trustees. The total fair value of these securities as of December 31, 2023 was $13,302,949, representing 0.9% of net assets. |
|
(f) |
The rate shown is the 7-day effective yield as of December 31, 2023. |
|
(g) |
This security was purchased using cash collateral held from securities on loan. |
BV — Besloten Vennootschap
CV — Convertible Security
IO — Interest Only
NA — National Association
plc — Public Limited Company
PO — Principal Only
Prime — Short-term interest rate in the banking system of the U.S.
84 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2023
REIT — Real Estate Investment Trust
SA — Societe Anonyme
SOFR — Secured Overnight Financing Rate
TSFR— CME Term SOFR
UA — Uitgesloten Aansprakelijkheid
See accompanying Notes to Financial Statements.
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 85 |
Diamond Hill Funds
Tabular Presentation of Schedules of Investments
December 31, 2023
Diamond Hill Small Cap Fund |
|
Sector Allocation |
% of |
Industrials |
27.7% |
Financials |
27.1% |
Consumer Discretionary |
10.5% |
Consumer Staples |
10.3% |
Materials |
7.3% |
Health Care |
5.0% |
Real Estate |
4.9% |
Energy |
3.6% |
Information Technology |
1.9% |
Utilities |
0.8% |
Registered Investment Companies |
4.5% |
Other |
|
Net Other Assets (Liabilities) |
-3.6% |
100.0% |
|
Russell 2000 Index |
% of |
Industrials |
16.9% |
Financials |
17.1% |
Consumer Discretionary |
11.0% |
Consumer Staples |
3.4% |
Materials |
4.4% |
Health Care |
15.4% |
Real Estate |
6.3% |
Energy |
6.9% |
Information Technology |
13.6% |
Utilities |
2.7% |
Communication Services |
2.3% |
100.0% |
|
Diamond Hill Small-Mid Cap Fund |
|
Sector Allocation |
% of |
Industrials |
26.6% |
Financials |
18.2% |
Real Estate |
12.5% |
Consumer Discretionary |
11.9% |
Consumer Staples |
8.9% |
Information Technology |
5.5% |
Health Care |
4.0% |
Materials |
3.3% |
Energy |
3.1% |
Utilities |
1.2% |
Communication Services |
1.2% |
Registered Investment Companies |
5.1% |
Other |
|
Net Other Assets (Liabilities) |
-1.5% |
100.0% |
|
Russell 2500 Index |
% of |
Industrials |
19.7% |
Financials |
16.6% |
Real Estate |
7.3% |
Consumer Discretionary |
12.9% |
Consumer Staples |
3.2% |
Information Technology |
12.7% |
Health Care |
12.1% |
Materials |
5.5% |
Energy |
4.8% |
Utilities |
2.6% |
Communication Services |
2.6% |
100.0% |
|
86 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Funds
Tabular Presentation of Schedules of Investments (Continued)
December 31, 2023
Diamond Hill Mid Cap Fund |
|
Sector Allocation |
% of |
Industrials |
25.8% |
Financials |
17.8% |
Real Estate |
13.8% |
Consumer Discretionary |
11.5% |
Consumer Staples |
6.5% |
Information Technology |
5.6% |
Health Care |
5.0% |
Materials |
6.3% |
Energy |
2.1% |
Communication Services |
1.2% |
Utilities |
1.1% |
Registered Investment Companies |
3.3% |
Other |
|
Net Other Assets (Liabilities) |
0.0%* |
100.0% |
|
* Percentage rounds to less than 0.1%. |
|
Russell Midcap Index |
% of |
Industrials |
19.3% |
Financials |
15.5% |
Real Estate |
8.0% |
Consumer Discretionary |
10.6% |
Consumer Staples |
3.5% |
Information Technology |
13.6% |
Health Care |
10.3% |
Materials |
5.7% |
Energy |
4.8% |
Communication Services |
3.5% |
Utilities |
5.2% |
100.0% |
Diamond Hill Large Cap Fund |
|
Sector Allocation |
% of |
Financials |
23.1% |
Industrials |
19.0% |
Health Care |
17.3% |
Consumer Discretionary |
14.0% |
Energy |
6.8% |
Consumer Staples |
4.7% |
Information Technology |
3.5% |
Real Estate |
3.4% |
Materials |
3.2% |
Communication Services |
1.7% |
Utilities |
1.1% |
Registered Investment Companies |
3.7% |
Other |
|
Net Other Assets (Liabilities) |
-1.5% |
100.0% |
|
Russell 1000 Index |
% of |
Financials |
13.5% |
Industrials |
9.6% |
Health Care |
12.5% |
Consumer Discretionary |
10.9% |
Energy |
3.8% |
Consumer Staples |
5.8% |
Information Technology |
27.9% |
Real Estate |
2.8% |
Materials |
2.6% |
Communication Services |
8.3% |
Utilities |
2.3% |
100.0% |
|
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 87 |
Diamond Hill Funds
Tabular Presentation of Schedules of Investments (Continued)
December 31, 2023
Diamond Hill Large Cap Concentrated |
|
Sector Allocation |
% of |
Financials |
22.7% |
Health Care |
18.5% |
Industrials |
18.2% |
Consumer Discretionary |
17.4% |
Energy |
7.2% |
Information Technology |
5.0% |
Consumer Staples |
4.9% |
Materials |
3.7% |
Registered Investment Companies |
2.4% |
Other |
|
Net Other Assets (Liabilities) |
0.0%* |
100.0% |
|
* Percentage rounds to less than 0.1%. |
|
Russell 1000 Index |
% of |
Financials |
13.5% |
Health Care |
12.5% |
Industrials |
9.6% |
Consumer Discretionary |
10.9% |
Energy |
3.8% |
Information Technology |
27.9% |
Consumer Staples |
5.8% |
Materials |
2.6% |
Communication Services |
8.3% |
Real Estate |
2.8% |
Utilities |
2.3% |
100.0% |
Diamond Hill Select Fund |
|
Sector Allocation |
% of |
Financials |
25.3% |
Industrials |
24.1% |
Consumer Discretionary |
20.0% |
Health Care |
8.6% |
Consumer Staples |
6.3% |
Materials |
4.4% |
Information Technology |
4.3% |
Real Estate |
2.2% |
Energy |
1.5% |
Registered Investment Companies |
6.4% |
Other |
|
Net Other Assets (Liabilities) |
-3.1% |
100.0% |
|
Russell 3000 Index |
% of |
Financials |
13.7% |
Industrials |
10.0% |
Consumer Discretionary |
10.9% |
Health Care |
12.6% |
Consumer Staples |
5.7% |
Materials |
2.7% |
Information Technology |
27.1% |
Real Estate |
3.0% |
Energy |
4.0% |
Communication Services |
8.0% |
Utilities |
2.3% |
100.0% |
|
88 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Funds
Tabular Presentation of Schedules of Investments (Continued)
December 31, 2023
Diamond Hill Long-Short Fund |
|
Long Portfolio |
% of |
Financials |
24.9% |
Health Care |
15.8% |
Industrials |
12.7% |
Communication Services |
12.7% |
Information Technology |
8.7% |
Energy |
4.2% |
Consumer Staples |
4.0% |
Consumer Discretionary |
2.7% |
Materials |
2.4% |
Real Estate |
0.9% |
Utilities |
0.9% |
Registered Investment Companies |
18.9% |
Treasury |
6.9% |
Short Portfolio |
% of |
Consumer Discretionary |
-8.4% |
Information Technology |
-7.8% |
Consumer Staples |
-4.3% |
Industrials |
-4.3% |
Financials |
-3.1% |
Utilities |
-1.5% |
Health Care |
-1.3% |
Real Estate |
-0.7% |
Materials |
-0.3% |
Communication Services |
-0.2% |
Other |
|
Segregated Cash With Custodian |
33.0% |
Net Other Assets (Liabilities) |
-16.8% |
100.0% |
|
Russell 1000 Index |
% of |
Financials |
13.5% |
Health Care |
12.5% |
Industrials |
9.6% |
Communication Services |
8.3% |
Information Technology |
27.9% |
Energy |
3.8% |
Consumer Staples |
5.8% |
Consumer Discretionary |
10.9% |
Materials |
2.6% |
Real Estate |
2.8% |
Utilities |
2.3% |
100.0% |
|
| Diamond Hill International Fund | |
| Sector Allocation | % of Net Assets |
| Consumer Staples | 16.4% |
| Industrials | 16.2% |
| Financials | 15.8% |
| Health Care | 13.5% |
| Consumer Discretionary | 10.6% |
| Communication Services | 6.7% |
| Information Technology | 6.4% |
| Energy | 5.8% |
| Materials | 2.7% |
| Registered Investment Companies | 9.7% |
| Other | |
Net Other Assets (Liabilities) |
-3.8% |
| 100.0% | |
| MSCI ACWI ex USA Index | % of Index |
| Consumer Staples | 8.0% |
| Industrials | 13.5% |
| Financials | 21.2% |
| Health Care | 9.3% |
| Consumer Discretionary | 11.5% |
| Communication Services | 5.2% |
| Information Technology | 12.4% |
| Energy | 5.6% |
| Materials | 8.0% |
| Utilities | 3.2% |
| Real Estate | 2.1% |
| 100.0% |
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 89 |
Diamond Hill Funds
Tabular Presentation of Schedules of Investments (Continued)
December 31, 2023
| Diamond Hill Short Duration Securitized Bond Fund | |
Sector Allocation |
% of Net Assets |
| Securitized | 86.4% |
| Corporate Credit | 5.0% |
| Treasury | 3.7% |
| Registered Investment Companies | 5.0% |
| Other | |
Net Other Assets (Liabilities) |
-0.1% |
| 100.0% | |
| Bloomberg US 1-3 Yr. Gov./Credit Index | |
Sector Allocation |
% of Index |
| Treasury | 66.4% |
| Corporate Credit | 25.2% |
| Non-Corporate Credit | 5.6% |
| Agency | 2.8% |
| 100.0% |
Diamond Hill Core Bond Fund |
|
Sector Allocation |
% of |
Securitized |
61.8% |
Corporate Credit |
15.5% |
Treasury |
17.3% |
Government Related |
0.1% |
Registered Investment Companies |
5.9% |
Other |
|
Net Other Assets (Liabilities) |
-0.6% |
100.0% |
|
Bloomberg US Aggregate Bond Index |
|
Sector Allocation |
% of |
Treasury |
41.4% |
Agency RMBS/CMBS |
27.5% |
Corporate Credit |
25.0% |
Non-Corporate Credit |
3.9% |
Agency |
1.0% |
Non-Agency RMBS/CMBS |
0.8% |
Asset-Backed Securities |
0.4% |
100.0% |
|
90 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
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DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 91 |
Diamond Hill Funds
Statements of Assets & Liabilities
December 31, 2023
Small Cap |
Small-Mid |
Mid Cap |
||||||||||
Assets |
||||||||||||
Investment in unaffiliated securities, at cost |
$ | 141,014,406 | $ | 1,198,824,018 | $ | 103,181,253 | ||||||
Investment in affiliated securities, at cost |
— | 9,862,981 | — | |||||||||
Investment in unaffiliated securities, at fair value* |
$ | 239,308,744 | $ | 1,631,878,281 | $ | 162,497,947 | ||||||
Investment affiliated securities, at fair value |
— | 9,587,821 | — | |||||||||
Cash |
36,603 | — | — | |||||||||
Cash denominated in foreign currency (Cost $—,$—, $—, $—, $—, $—, $—, $63,560, $—, and $—) |
— | — | — | |||||||||
Cash deposits with custodian for securities sold short |
— | — | — | |||||||||
Receivable for investments sold |
113,935 | 1,346,436 | 94,468 | |||||||||
Receivable for fund shares issued |
44,016 | 699,671 | 35,720 | |||||||||
Receivable for dividends and interest |
246,797 | 2,743,397 | 313,984 | |||||||||
Tax reclaims receivable |
— | — | — | |||||||||
Total Assets |
239,750,095 | 1,646,255,606 | 162,942,119 | |||||||||
Liabilities |
||||||||||||
Investments sold short, at fair value (proceeds $—, $—, $—, $—, $—, $—, $552,083,433, $—, $—, and $—) |
— | — | — | |||||||||
Due to custodian |
— | 86,212 | 58,243 | |||||||||
Payable for securities purchased |
— | — | — | |||||||||
Payable for fund shares redeemed |
597,918 | 1,806,187 | 116,410 | |||||||||
Payable for dividend expense on securities sold short |
— | — | — | |||||||||
Payable for return of collateral received for securities on loan |
8,053,607 | 25,514,808 | 144,631 | |||||||||
Payable to Investment Adviser |
163,256 | 1,008,000 | 81,090 | |||||||||
Payable to Administrator |
35,114 | 149,045 | 22,287 | |||||||||
Accrued distribution fees |
14,105 | 9,055 | 943 | |||||||||
Other accrued expenses |
6,116 | 200 | 200 | |||||||||
Total Liabilities |
8,870,116 | 28,573,507 | 423,804 | |||||||||
Net Assets |
$ | 230,879,979 | $ | 1,617,682,099 | $ | 162,518,315 | ||||||
Components of Net Assets |
||||||||||||
Paid-in capital |
$ | 128,907,746 | $ | 1,188,878,039 | $ | 107,108,396 | ||||||
Accumulated earnings (deficit) |
101,972,233 | 428,804,060 | 55,409,919 | |||||||||
Net Assets |
$ | 230,879,979 | $ | 1,617,682,099 | $ | 162,518,315 | ||||||
Net Assets |
||||||||||||
Investor Shares |
$ | 62,642,291 | $ | 44,269,842 | $ | 4,435,209 | ||||||
Class I Shares |
$ | 149,790,132 | $ | 758,159,861 | $ | 149,819,872 | ||||||
Class Y Shares |
$ | 18,447,556 | $ | 815,252,396 | $ | 8,263,234 | ||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) |
||||||||||||
Investor Shares |
2,660,459 | 1,746,461 | 270,942 | |||||||||
Class I Shares |
6,162,963 | 29,755,993 | 9,171,714 | |||||||||
Class Y Shares |
756,822 | 31,909,683 | 504,042 | |||||||||
Net Asset Value, offering and redemption price per share: |
||||||||||||
Investor Shares |
$ | 23.55 | $ | 25.35 | $ | 16.37 | ||||||
Class I Shares |
$ | 24.30 | $ | 25.48 | $ | 16.33 | ||||||
Class Y Shares |
$ | 24.38 | $ | 25.55 | $ | 16.39 | ||||||
* Includes value of securities on loan |
$ | 15,076,383 | $ | 89,549,909 | $ | 1,881,876 | ||||||
See accompanying Notes to Financial Statements.
92 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Large Cap |
Large Cap |
Select |
Long-Short |
International |
Short Duration |
Core Bond |
|||||||||||||||||||||
| $ | 6,437,023,478 | $ | 23,392,289 | $ | 339,377,797 | $ | 1,406,908,530 | $ | 106,772,989 | $ | 1,649,893,741 | $ | 1,559,750,997 | ||||||||||||||
| — | — | — | — | — | — | — | |||||||||||||||||||||
| $ | 8,536,524,135 | $ | 27,627,592 | $ | 484,335,382 | $ | 1,996,175,682 | $ | 113,350,239 | $ | 1,616,421,351 | $ | 1,528,337,207 | ||||||||||||||
| — | — | — | — | — | — | — | |||||||||||||||||||||
| — | — | — | — | — | — | — | |||||||||||||||||||||
| — | — | — | — | 84,246 | — | — | |||||||||||||||||||||
| — | — | — | 569,747,985 | — | — | — | |||||||||||||||||||||
| — | — | — | 10,851,276 | — | 10,131,250 | 9,590 | |||||||||||||||||||||
| 7,049,372 | 146 | 664,306 | 853,008 | — | 3,145,287 | 4,676,585 | |||||||||||||||||||||
| 9,661,485 | 22,851 | 535,719 | 5,093,788 | 156,134 | 4,658,350 | 6,498,300 | |||||||||||||||||||||
| — | — | — | — | 77,266 | — | — | |||||||||||||||||||||
| 8,553,234,992 | 27,650,589 | 485,535,407 | 2,582,721,739 | 113,667,885 | 1,634,356,238 | 1,539,521,682 | |||||||||||||||||||||
| — | — | — | 549,808,718 | — | — | — | |||||||||||||||||||||
| 1,654,453 | — | 259,464 | 72,497 | — | — | — | |||||||||||||||||||||
| — | — | — | 5,543,763 | — | — | 4,357,683 | |||||||||||||||||||||
| 6,783,062 | — | 837,816 | 1,118,024 | 44,240 | 1,670,428 | 393,326 | |||||||||||||||||||||
| — | — | — | 382,071 | — | — | — | |||||||||||||||||||||
| 128,365,754 | — | 14,423,487 | 298,725,470 | 4,326,627 | 17,631,750 | 15,082,372 | |||||||||||||||||||||
| 3,508,882 | 11,453 | 273,757 | 1,323,405 | 53,427 | 477,842 | 363,070 | |||||||||||||||||||||
| 921,318 | 2,245 | 62,178 | 248,053 | 8,524 | 228,090 | 190,259 | |||||||||||||||||||||
| 73,583 | 62 | 6,520 | 25,898 | 157 | 5,395 | 402 | |||||||||||||||||||||
| 200 | 301 | 663 | 200 | 6,527 | 200 | 200 | |||||||||||||||||||||
| 141,307,252 | 14,061 | 15,863,885 | 857,248,099 | 4,439,502 | 20,013,705 | 20,387,312 | |||||||||||||||||||||
| $ | 8,411,927,740 | $ | 27,636,528 | $ | 469,671,522 | $ | 1,725,473,640 | $ | 109,228,383 | $ | 1,614,342,533 | $ | 1,519,134,370 | ||||||||||||||
| $ | 6,288,210,461 | $ | 24,250,453 | $ | 327,553,573 | $ | 1,136,472,431 | $ | 103,959,639 | $ | 1,665,089,482 | $ | 1,569,269,683 | ||||||||||||||
| 2,123,717,279 | 3,386,075 | 142,117,949 | 589,001,209 | 5,268,744 | (50,746,949 | ) | (50,135,313 | ) | |||||||||||||||||||
| $ | 8,411,927,740 | $ | 27,636,528 | $ | 469,671,522 | $ | 1,725,473,640 | $ | 109,228,383 | $ | 1,614,342,533 | $ | 1,519,134,370 | ||||||||||||||
| $ | 331,758,303 | $ | 294,845 | $ | 31,796,582 | $ | 122,865,797 | $ | 1,021,639 | $ | 25,257,865 | $ | 1,909,815 | ||||||||||||||
| $ | 5,228,447,015 | $ | 10,635,434 | $ | 389,017,028 | $ | 1,543,505,624 | $ | 43,664,071 | $ | 1,541,039,223 | $ | 1,369,268,225 | ||||||||||||||
| $ | 2,851,722,422 | $ | 16,706,249 | $ | 48,857,912 | $ | 59,102,219 | $ | 64,542,673 | $ | 48,045,445 | $ | 147,956,330 | ||||||||||||||
| 10,457,834 | 24,697 | 1,438,205 | 4,726,856 | 61,267 | 2,608,093 | 209,992 | |||||||||||||||||||||
| 164,433,624 | 894,675 | 17,339,302 | 57,304,895 | 2,614,651 | 159,090,986 | 151,033,936 | |||||||||||||||||||||
| 89,622,102 | 1,403,729 | 2,166,439 | 2,180,661 | 3,858,218 | 4,953,757 | 16,308,362 | |||||||||||||||||||||
| $ | 31.72 | $ | 11.94 | $ | 22.11 | $ | 25.99 | $ | 16.68 | $ | 9.68 | $ | 9.09 | ||||||||||||||
| $ | 31.80 | $ | 11.89 | $ | 22.44 | $ | 26.93 | $ | 16.70 | $ | 9.69 | $ | 9.07 | ||||||||||||||
| $ | 31.82 | $ | 11.90 | $ | 22.55 | $ | 27.10 | $ | 16.73 | $ | 9.70 | $ | 9.07 | ||||||||||||||
| $ | 143,445,951 | $ | — | $ | 14,393,123 | $ | 291,485,958 | $ | 4,818,292 | $ | 21,102,307 | $ | 29,132,594 | ||||||||||||||
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 93 |
Diamond Hill Funds
Statements of Operations
For the year ended December 31, 2023
Small Cap |
Small-Mid |
Mid Cap |
Large Cap |
Large Cap |
||||||||||||||||
Investment Income |
||||||||||||||||||||
Dividends |
$ | 5,995,457 | $ | 35,563,719 | $ | 2,722,763 | $ | 176,252,358 | $ | 536,347 | ||||||||||
Income distributions from affiliated investments |
— | 523,347 | — | — | — | |||||||||||||||
Securities lending income |
46,475 | 233,490 | 6,667 | 588,491 | 1,518 | |||||||||||||||
Foreign taxes withheld |
— | — | (5,549 | ) | — | — | ||||||||||||||
Total Investment Income |
6,041,932 | 36,320,556 | 2,723,881 | 176,840,849 | 537,865 | |||||||||||||||
Expenses |
||||||||||||||||||||
Investment advisory fees |
2,240,106 | 13,702,436 | 984,442 | 41,318,980 | 126,448 | |||||||||||||||
Administration fees |
484,071 | 2,045,019 | 271,703 | 11,332,575 | 24,731 | |||||||||||||||
Distribution and service fees — Investor |
184,636 | 283,972 | 27,115 | 1,578,571 | 650 | |||||||||||||||
Other fees |
7,749 | 5,352 | 3,974 | 19,426 | 1,357 | |||||||||||||||
Total Expenses |
2,916,562 | 16,036,779 | 1,287,234 | 54,249,552 | 153,186 | |||||||||||||||
Advisory fees waived by Adviser |
— | (31,811 | ) | — | — | — | ||||||||||||||
Net Expenses |
2,916,562 | 16,004,968 | 1,287,234 | 54,249,552 | 153,186 | |||||||||||||||
Net Investment Income |
3,125,370 | 20,315,588 | 1,436,647 | 122,591,297 | 384,679 | |||||||||||||||
Realized and Unrealized Gains (Losses) on Investments |
||||||||||||||||||||
Net realized gains (losses) on investment transactions |
68,890,230 | 32,157,349 | 9,916,702 | 308,005,815 | (225,458 | ) | ||||||||||||||
Net realized gains from in-kind redemptions |
— | 68,588,589 | — | — | — | |||||||||||||||
Net change in unrealized appreciation (depreciation) on unaffiliated investments |
(16,670,042 | ) | 50,161,742 | 2,833,924 | 630,472,471 | 3,980,986 | ||||||||||||||
Net change in unrealized appreciation (depreciation) on affiliated investments |
— | 270,673 | — | — | — | |||||||||||||||
Net Realized and Unrealized Gains on Investments |
52,220,188 | 151,178,353 | 12,750,626 | 938,478,286 | 3,755,528 | |||||||||||||||
Change in Net Assets from Operations |
$ | 55,345,558 | $ | 171,493,941 | $ | 14,187,273 | $ | 1,061,069,583 | $ | 4,140,207 | ||||||||||
See accompanying Notes to Financial Statements.
94 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Funds
Statements of Operations
For the year ended December 31, 2023
Select |
Long-Short |
International |
Short Duration |
Core Bond |
||||||||||||||||
Investment Income |
||||||||||||||||||||
Dividends |
$ | 5,525,457 | $ | 36,205,973 | $ | 1,830,469 | $ | 5,138,441 | $ | 2,229,353 | ||||||||||
Securities lending income |
30,213 | 380,229 | 11,949 | 51,717 | 90,977 | |||||||||||||||
Rebates on short sales, net of fees |
— | 23,433,081 | — | — | — | |||||||||||||||
Foreign taxes withheld |
— | (93,312 | ) | (141,659 | ) | — | — | |||||||||||||
Interest |
— | 4,751,713 | — | 80,079,755 | 48,114,023 | |||||||||||||||
Total Investment Income |
5,555,670 | 64,677,684 | 1,700,759 | 85,269,913 | 50,434,353 | |||||||||||||||
Expenses |
||||||||||||||||||||
Investment advisory fees |
2,680,708 | 15,848,904 | 434,237 | 4,848,528 | 2,950,814 | |||||||||||||||
Administration fees |
594,160 | 2,980,131 | 58,979 | 2,292,751 | 1,550,144 | |||||||||||||||
Distribution and service fees — Investor |
70,852 | 308,131 | 1,078 | 77,784 | 7,663 | |||||||||||||||
Other fees |
2,452 | 5,127 | 22,467 | 4,185 | 3,219 | |||||||||||||||
Dividend expense |
— | 7,381,390 | — | — | — | |||||||||||||||
Total Expenses |
3,348,172 | 26,523,683 | 516,761 | 7,223,248 | 4,511,840 | |||||||||||||||
Advisory fees waived by Adviser |
— | — | — | — | — | |||||||||||||||
Net Expenses |
3,348,172 | 26,523,683 | 516,761 | 7,223,248 | 4,511,840 | |||||||||||||||
Net Investment Income |
2,207,498 | 38,154,001 | 1,183,998 | 78,046,665 | 45,922,513 | |||||||||||||||
Realized and Unrealized Gains (Losses) on Investments |
||||||||||||||||||||
Net realized gains (losses) on investment transactions |
3,416,850 | 39,007,147 | (5,533 | ) | (6,276,306 | ) | (3,635,873 | ) | ||||||||||||
Net realized gains on closed short positions |
— | 13,002,068 | — | — | — | |||||||||||||||
Net realized losses on foreign currency transactions |
— | — | (10,983 | ) | — | — | ||||||||||||||
Net change in unrealized appreciation (depreciation) on unaffiliated investments and foreign currency translations |
99,562,501 | 161,159,820 | 11,027,004 | 47,754,284 | 29,247,584 | |||||||||||||||
Net changes in unrealized appreciation (depreciation) on short positions |
— | (49,433,192 | ) | — | — | — | ||||||||||||||
Net Realized and Unrealized Gains on Investments |
102,979,351 | 163,735,843 | 11,010,488 | 41,477,978 | 25,611,711 | |||||||||||||||
Change in Net Assets from Operations |
$ | 105,186,849 | $ | 201,889,844 | $ | 12,194,486 | $ | 119,524,643 | $ | 71,534,224 | ||||||||||
See accompanying Notes to Financial Statements.
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 95 |
Diamond Hill Funds
Statements of Changes in Net Assets
Small Cap Fund |
Small-Mid Cap Fund |
||||||||||||||||
For the year |
For the year |
For the year |
For the year |
||||||||||||||
From Operations |
|||||||||||||||||
Net investment income |
$ | 3,125,370 | $ | 2,215,620 | $ | 20,315,588 | $ | 16,232,583 | |||||||||
Net realized gains on investment transactions |
68,890,230 | 79,642,787 | 100,745,938 | 87,711,802 | |||||||||||||
Net realized losses on sales from affiliated investments |
— | — | — | (349,205 | ) | ||||||||||||
Net change in unrealized appreciation (depreciation) on investments |
(16,670,042 | ) | (157,510,132 | ) | 50,432,415 | (421,471,023 | ) | ||||||||||
Change in Net Assets from Operations |
55,345,558 | (75,651,725 | ) | 171,493,941 | (317,875,843 | ) | |||||||||||
Distributions to Shareholders |
|||||||||||||||||
Investor |
(17,793,658 | ) | (12,978,961 | ) | (436,019 | ) | (7,853,233 | ) | |||||||||
Class I |
(38,439,736 | ) | (29,928,918 | ) | (15,004,237 | ) | (41,992,021 | ) | |||||||||
Class Y |
(4,457,136 | ) | (2,941,247 | ) | (17,087,711 | ) | (47,806,461 | ) | |||||||||
Change in Net Assets from Distributions to Shareholders |
(60,690,530 | ) | (45,849,126 | ) | (32,527,967 | ) | (97,651,715 | ) | |||||||||
Change in Net Assets from Capital Transactions |
(49,656,523 | ) | (161,153,214 | ) | (423,601,312 | ) | 39,438,849 | ||||||||||
Total Change in Net Assets |
(55,001,495 | ) | (282,654,065 | ) | (284,635,338 | ) | (376,088,709 | ) | |||||||||
Net Assets: |
|||||||||||||||||
Beginning of year |
285,881,474 | 568,535,539 | 1,902,317,437 | 2,278,406,146 | |||||||||||||
End of year |
$ | 230,879,979 | $ | 285,881,474 | $ | 1,617,682,099 | $ | 1,902,317,437 | |||||||||
See accompanying Notes to Financial Statements.
96 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Funds
Statements of Changes in Net Assets
Small Cap Fund |
Small-Mid Cap Fund |
||||||||||||||||
For the year |
For the year |
For the year |
For the year |
||||||||||||||
Capital Transactions |
|||||||||||||||||
Investor |
|||||||||||||||||
Proceeds from shares sold |
$ | 15,800,455 | $ | 7,978,405 | $ | 10,147,371 | $ | 18,800,612 | |||||||||
Reinvested distributions |
16,389,099 | 11,758,072 | 415,784 | 7,737,855 | |||||||||||||
Payments for shares redeemed |
(46,867,970 | ) | (33,032,714 | ) | (144,105,451 | ) | (34,743,030 | ) | |||||||||
Change in Net Assets from Investor Share Transactions |
(14,678,416 | ) | (13,296,237 | ) | (133,542,296 | ) | (8,204,563 | ) | |||||||||
Class I |
|||||||||||||||||
Proceeds from shares sold |
30,049,152 | 44,615,799 | 69,907,016 | 82,087,003 | |||||||||||||
Reinvested distributions |
35,138,450 | 28,020,763 | 11,390,598 | 33,137,319 | |||||||||||||
Payments for shares redeemed |
(100,706,565 | ) | (196,399,327 | ) | (201,856,543 | ) | (178,064,760 | ) | |||||||||
Change in Net Assets from Class I Share Transactions |
(35,518,963 | ) | (123,762,765 | ) | (120,558,929 | ) | (62,840,438 | ) | |||||||||
Class Y |
|||||||||||||||||
Proceeds from shares sold |
1,467,274 | 9,305,130 | 230,283,137 | 243,063,857 | |||||||||||||
Reinvested distributions |
4,457,136 | 2,941,247 | 16,347,339 | 46,673,584 | |||||||||||||
Payments for shares redeemed |
(5,383,554 | ) | (36,340,589 | ) | (416,130,563 | ) | (179,253,591 | ) | |||||||||
Change in Net Assets from Class Y Share Transactions |
540,856 | (24,094,212 | ) | (169,500,087 | ) | 110,483,850 | |||||||||||
Change in Net Assets from Capital Transactions |
$ | (49,656,523 | ) | $ | (161,153,214 | ) | $ | (423,601,312 | ) | $ | 39,438,849 | ||||||
See accompanying Notes to Financial Statements.
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 97 |
Diamond Hill Funds
Statements of Changes in Net Assets
Small Cap Fund |
Small-Mid Cap Fund |
||||||||||||||||
For the year |
For the year |
For the year |
For the year |
||||||||||||||
Share Transactions: |
|||||||||||||||||
Investor |
|||||||||||||||||
Issued |
581,740 | 256,826 | 420,432 | 730,674 | |||||||||||||
Reinvested |
681,757 | 456,361 | 16,357 | 328,105 | |||||||||||||
Redeemed |
(1,780,754 | ) | (1,105,459 | ) | (5,808,766 | ) | (1,357,311 | ) | |||||||||
Change in Shares Outstanding |
(517,257 | ) | (392,272 | ) | (5,371,977 | ) | (298,532 | ) | |||||||||
Class I |
|||||||||||||||||
Issued |
1,090,792 | 1,466,642 | 2,866,071 | 3,176,386 | |||||||||||||
Reinvested |
1,413,534 | 1,059,155 | 442,987 | 1,386,626 | |||||||||||||
Redeemed |
(3,651,567 | ) | (6,272,757 | ) | (8,462,203 | ) | (6,979,747 | ) | |||||||||
Change in Shares Outstanding |
(1,147,241 | ) | (3,746,960 | ) | (5,153,145 | ) | (2,416,735 | ) | |||||||||
Class Y |
|||||||||||||||||
Issued |
53,095 | 284,937 | 9,299,644 | 9,000,609 | |||||||||||||
Reinvested |
178,631 | 110,879 | 633,849 | 1,947,522 | |||||||||||||
Redeemed |
(197,825 | ) | (1,157,763 | ) | (17,600,745 | ) | (6,904,655 | ) | |||||||||
Change in Shares Outstanding |
33,901 | (761,947 | ) | (7,667,252 | ) | 4,043,476 | |||||||||||
Change in Total Shares Outstanding |
(1,630,597 | ) | (4,901,179 | ) | (18,192,374 | ) | 1,328,209 | ||||||||||
See accompanying Notes to Financial Statements.
98 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Funds
Statements of Changes in Net Assets
Mid Cap Fund |
Large Cap Fund |
||||||||||||||||
For the year |
For the year |
For the year |
For the year |
||||||||||||||
From Operations |
|||||||||||||||||
Net investment income |
$ | 1,436,647 | $ | 1,646,679 | $ | 122,591,297 | $ | 121,269,741 | |||||||||
Net realized gains on investment transactions |
9,916,702 | 15,667,057 | 308,005,815 | 538,678,250 | |||||||||||||
Net realized losses on sales from affiliated investments |
— | (14,891 | ) | — | — | ||||||||||||
Net change in unrealized appreciation (depreciation) on investments |
2,833,924 | (52,346,492 | ) | 630,472,471 | (2,356,203,019 | ) | |||||||||||
Change in Net Assets from Operations |
14,187,273 | (35,047,647 | ) | 1,061,069,583 | (1,696,255,028 | ) | |||||||||||
Distributions to Shareholders |
|||||||||||||||||
Investor |
(98,589 | ) | (1,146,228 | ) | (10,067,995 | ) | (47,431,464 | ) | |||||||||
Class I |
(4,608,435 | ) | (7,686,508 | ) | (193,440,234 | ) | (349,328,424 | ) | |||||||||
Class Y |
(257,199 | ) | (647,148 | ) | (108,212,754 | ) | (148,593,466 | ) | |||||||||
Change in Net Assets from Distributions to Shareholders |
(4,964,223 | ) | (9,479,884 | ) | (311,720,983 | ) | (545,353,354 | ) | |||||||||
Change in Net Assets from Capital Transactions |
(33,937,687 | ) | (54,681,887 | ) | (827,413,517 | ) | (1,628,581,539 | ) | |||||||||
Total Change in Net Assets |
(24,714,637 | ) | (99,209,418 | ) | (78,064,917 | ) | (3,870,189,921 | ) | |||||||||
Net Assets: |
|||||||||||||||||
Beginning of year |
187,232,952 | 286,442,370 | 8,489,992,657 | 12,360,182,578 | |||||||||||||
End of year |
$ | 162,518,315 | $ | 187,232,952 | $ | 8,411,927,740 | $ | 8,489,992,657 | |||||||||
See accompanying Notes to Financial Statements.
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 99 |
Diamond Hill Funds
Statements of Changes in Net Assets
Mid Cap Fund |
Large Cap Fund |
||||||||||||||||
For the year |
For the year |
For the year |
For the year |
||||||||||||||
Capital Transactions |
|||||||||||||||||
Investor |
|||||||||||||||||
Proceeds from shares sold |
$ | 1,029,195 | $ | 4,331,171 | $ | 74,713,186 | $ | 119,086,813 | |||||||||
Reinvested distributions |
93,772 | 847,943 | 8,454,785 | 44,254,282 | |||||||||||||
Payments for shares redeemed |
(20,716,969 | ) | (8,841,186 | ) | (589,822,438 | ) | (190,407,780 | ) | |||||||||
Change in Net Assets from Investor Share Transactions |
(19,594,002 | ) | (3,662,072 | ) | (506,654,467 | ) | (27,066,685 | ) | |||||||||
Class I |
|||||||||||||||||
Proceeds from shares sold |
25,681,855 | 21,439,323 | 758,842,787 | 1,377,284,121 | |||||||||||||
Reinvested distributions |
4,476,580 | 7,255,950 | 162,911,099 | 295,045,866 | |||||||||||||
Payments for shares redeemed |
(39,774,953 | ) | (72,343,751 | ) | (1,576,289,792 | ) | (2,968,092,239 | ) | |||||||||
Change in Net Assets from Class I Share Transactions |
(9,616,518 | ) | (43,648,478 | ) | (654,535,906 | ) | (1,295,762,252 | ) | |||||||||
Class Y |
|||||||||||||||||
Proceeds from shares sold |
1,257,118 | 3,943,424 | 646,662,800 | 453,803,933 | |||||||||||||
Reinvested distributions |
256,745 | 593,574 | 99,542,199 | 134,911,753 | |||||||||||||
Payments for shares redeemed |
(6,241,030 | ) | (11,908,335 | ) | (412,428,143 | ) | (894,468,288 | ) | |||||||||
Change in Net Assets from Class Y Share Transactions |
(4,727,167 | ) | (7,371,337 | ) | 333,776,856 | (305,752,602 | ) | ||||||||||
Change in Net Assets from Capital Transactions |
$ | (33,937,687 | ) | $ | (54,681,887 | ) | $ | (827,413,517 | ) | $ | (1,628,581,539 | ) | |||||
See accompanying Notes to Financial Statements.
100 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Funds
Statements of Changes in Net Assets
Mid Cap Fund |
Large Cap Fund |
||||||||||||||||
For the year |
For the year |
For the year |
For the year |
||||||||||||||
Share Transactions: |
|||||||||||||||||
Investor |
|||||||||||||||||
Issued |
65,994 | 260,881 | 2,540,886 | 3,715,016 | |||||||||||||
Reinvested |
5,734 | 53,973 | 266,805 | 1,485,768 | |||||||||||||
Redeemed |
(1,361,985 | ) | (526,506 | ) | (19,262,388 | ) | (6,082,543 | ) | |||||||||
Change in Shares Outstanding |
(1,290,257 | ) | (211,652 | ) | (16,454,697 | ) | (881,759 | ) | |||||||||
Class I |
|||||||||||||||||
Issued |
1,692,539 | 1,263,699 | 25,373,487 | 42,607,317 | |||||||||||||
Reinvested |
272,193 | 459,767 | 5,104,258 | 9,838,230 | |||||||||||||
Redeemed |
(2,592,945 | ) | (4,215,741 | ) | (52,572,453 | ) | (94,783,948 | ) | |||||||||
Change in Shares Outstanding |
(628,213 | ) | (2,492,275 | ) | (22,094,708 | ) | (42,338,401 | ) | |||||||||
Class Y |
|||||||||||||||||
Issued |
80,145 | 228,084 | 21,170,495 | 14,111,302 | |||||||||||||
Reinvested |
15,543 | 37,454 | 3,114,246 | 4,494,622 | |||||||||||||
Redeemed |
(403,347 | ) | (720,344 | ) | (13,694,916 | ) | (29,295,363 | ) | |||||||||
Change in Shares Outstanding |
(307,659 | ) | (454,806 | ) | 10,589,825 | (10,689,439 | ) | ||||||||||
Change in Total Shares Outstanding |
(2,226,129 | ) | (3,158,733 | ) | (27,959,580 | ) | (53,909,599 | ) | |||||||||
See accompanying Notes to Financial Statements.
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 101 |
Diamond Hill Funds
Statements of Changes in Net Assets
Large Cap Concentrated Fund |
Select Fund |
||||||||||||||||
For the year |
For the |
For the year |
For the |
||||||||||||||
From Operations |
|||||||||||||||||
Net investment income |
$ | 384,679 | $ | 267,749 | $ | 2,207,498 | $ | 771,433 | |||||||||
Net realized gains (losses) on investment transactions |
(225,458 | ) | (486,077 | ) | 3,416,850 | 14,056,842 | |||||||||||
Net change in unrealized appreciation (depreciation) on investments |
3,980,986 | (2,075,074 | ) | 99,562,501 | (89,536,830 | ) | |||||||||||
Change in Net Assets from Operations |
4,140,207 | (2,293,402 | ) | 105,186,849 | (74,708,555 | ) | |||||||||||
Distributions to Shareholders |
|||||||||||||||||
Investor |
(3,176 | ) | (72 | ) | (88,231 | ) | (1,172,423 | ) | |||||||||
Class I |
(141,837 | ) | (105,695 | ) | (2,113,285 | ) | (10,138,286 | ) | |||||||||
Class Y |
(239,374 | ) | (170,042 | ) | (298,772 | ) | (2,387,155 | ) | |||||||||
Change in Net Assets from Distributions to Shareholders |
(384,387 | ) | (275,809 | ) | (2,500,288 | ) | (13,697,864 | ) | |||||||||
Change in Net Assets from Capital Transactions |
733,474 | 7,770,634 | 43,034,594 | 28,958,053 | |||||||||||||
Total Change in Net Assets |
4,489,294 | 5,201,423 | 145,721,155 | (59,448,366 | ) | ||||||||||||
Net Assets: |
|||||||||||||||||
Beginning of year |
23,147,234 | 17,945,811 | 323,950,367 | 383,398,733 | |||||||||||||
End of year |
$ | 27,636,528 | $ | 23,147,234 | $ | 469,671,522 | $ | 323,950,367 | |||||||||
See accompanying Notes to Financial Statements.
102 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Funds
Statements of Changes in Net Assets
Large Cap Concentrated Fund |
Select Fund |
||||||||||||||||
For the year |
For the |
For the year |
For the |
||||||||||||||
Capital Transactions |
|||||||||||||||||
Investor |
|||||||||||||||||
Proceeds from shares sold |
$ | 251,746 | $ | 111,404 | $ | 4,950,053 | $ | 14,959,697 | |||||||||
Reinvested distributions |
3,176 | 72 | 80,577 | 1,075,895 | |||||||||||||
Payments for shares redeemed |
(13,671 | ) | (110,994 | ) | (9,365,608 | ) | (10,759,773 | ) | |||||||||
Change in Net Assets from Investor Share Transactions |
241,251 | 482 | (4,334,978 | ) | 5,275,819 | ||||||||||||
Class I |
|||||||||||||||||
Proceeds from shares sold |
1,533,948 | 7,565,664 | 141,814,001 | 131,503,613 | |||||||||||||
Reinvested distributions |
141,837 | 105,695 | 1,979,277 | 9,747,712 | |||||||||||||
Payments for shares redeemed |
(1,610,701 | ) | (216,690 | ) | (73,692,896 | ) | (75,473,292 | ) | |||||||||
Change in Net Assets from Class I Share Transactions |
65,084 | 7,454,669 | 70,100,382 | 65,778,033 | |||||||||||||
Class Y |
|||||||||||||||||
Proceeds from shares sold |
1,603,184 | 410,890 | 5,442,044 | 4,273,252 | |||||||||||||
Reinvested distributions |
239,374 | 170,042 | 266,191 | 2,341,377 | |||||||||||||
Payments for shares redeemed |
(1,415,419 | ) | (265,449 | ) | (28,439,045 | ) | (48,710,428 | ) | |||||||||
Change in Net Assets from Class Y Share Transactions |
427,139 | 315,483 | (22,730,810 | ) | (42,095,799 | ) | |||||||||||
Change in Net Assets from Capital Transactions |
$ | 733,474 | $ | 7,770,634 | $ | 43,034,594 | $ | 28,958,053 | |||||||||
See accompanying Notes to Financial Statements.
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 103 |
Diamond Hill Funds
Statements of Changes in Net Assets
Large Cap Concentrated Fund |
Select Fund |
||||||||||||||||
For the year |
For the |
For the year |
For the |
||||||||||||||
Share Transactions: |
|||||||||||||||||
Investor |
|||||||||||||||||
Issued |
23,389 | 10,526 | 250,852 | 754,817 | |||||||||||||
Reinvested |
265 | 7 | 3,622 | 61,061 | |||||||||||||
Redeemed |
(1,215 | ) | (11,013 | ) | (507,929 | ) | (572,955 | ) | |||||||||
Change in Shares Outstanding |
22,439 | (480 | ) | (253,455 | ) | 242,923 | |||||||||||
Class I |
|||||||||||||||||
Issued |
147,388 | 728,442 | 7,202,460 | 6,565,354 | |||||||||||||
Reinvested |
11,899 | 10,252 | 87,580 | 544,994 | |||||||||||||
Redeemed |
(150,883 | ) | (21,487 | ) | (3,729,114 | ) | (4,013,120 | ) | |||||||||
Change in Shares Outstanding |
8,404 | 717,207 | 3,560,926 | 3,097,228 | |||||||||||||
Class Y |
|||||||||||||||||
Issued |
155,371 | 38,438 | 271,180 | 213,787 | |||||||||||||
Reinvested |
20,048 | 16,477 | 11,716 | 130,259 | |||||||||||||
Redeemed |
(134,407 | ) | (25,641 | ) | (1,405,374 | ) | (2,568,701 | ) | |||||||||
Change in Shares Outstanding |
41,012 | 29,274 | (1,122,478 | ) | (2,224,655 | ) | |||||||||||
Change in Total Shares Outstanding |
71,855 | 746,001 | 2,184,993 | 1,115,496 | |||||||||||||
See accompanying Notes to Financial Statements.
104 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Funds
Statements of Changes in Net Assets
Long-Short Fund |
International Fund |
||||||||||||||||
For the year |
For the |
For the year |
For the |
||||||||||||||
From Operations |
|||||||||||||||||
Net investment income |
$ | 38,154,001 | $ | 11,490,768 | $ | 1,183,998 | $ | 747,509 | |||||||||
Net realized gains (losses) on investment transactions |
39,007,147 | 24,768,688 | (5,533 | ) | (1,059,472 | ) | |||||||||||
Net realized gains on closed short positions |
13,002,068 | 8,434,138 | — | — | |||||||||||||
Net realized losses on sales from affiliated investments |
— | (696,825 | ) | — | — | ||||||||||||
Net realized losses on foreign currency transactions |
— | — | (10,983 | ) | (4,186 | ) | |||||||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations |
161,159,820 | (354,404,754 | ) | 11,027,004 | (7,363,671 | ) | |||||||||||
Net change in unrealized appreciation (depreciation) on short positions |
(49,433,192 | ) | 132,898,380 | — | — | ||||||||||||
Change in Net Assets from Operations |
201,889,844 | (177,509,605 | ) | 12,194,486 | (7,679,820 | ) | |||||||||||
Distributions to Shareholders |
|||||||||||||||||
Investor |
(4,845,636 | ) | (6,266,640 | ) | (7,467 | ) | (3,016 | ) | |||||||||
Class I |
(63,395,852 | ) | (81,999,465 | ) | (466,186 | ) | (170,196 | ) | |||||||||
Class Y |
(2,498,805 | ) | (1,104,658 | ) | (714,717 | ) | (697,590 | ) | |||||||||
Change in Net Assets from Distributions to Shareholders |
(70,740,293 | ) | (89,370,763 | ) | (1,188,370 | ) | (870,802 | ) | |||||||||
Change in Net Assets from Capital Transactions |
(158,132,898 | ) | 21,350,286 | 46,623,232 | 4,561,555 | ||||||||||||
Total Change in Net Assets |
(26,983,347 | ) | (245,530,082 | ) | 57,629,348 | (3,989,067 | ) | ||||||||||
Net Assets: |
|||||||||||||||||
Beginning of year |
1,752,456,987 | 1,997,987,069 | 51,599,035 | 55,588,102 | |||||||||||||
End of year |
$ | 1,725,473,640 | $ | 1,752,456,987 | $ | 109,228,383 | $ | 51,599,035 | |||||||||
See accompanying Notes to Financial Statements.
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 105 |
Diamond Hill Funds
Statements of Changes in Net Assets
Long-Short Fund |
International Fund |
||||||||||||||||
For the year |
For the |
For the year |
For the |
||||||||||||||
Capital Transactions |
|||||||||||||||||
Investor |
|||||||||||||||||
Proceeds from shares sold |
$ | 6,005,940 | $ | 10,582,588 | $ | 745,059 | $ | 63,984 | |||||||||
Reinvested distributions |
4,387,393 | 5,669,299 | 7,467 | 3,016 | |||||||||||||
Payments for shares redeemed |
(23,441,648 | ) | (38,367,534 | ) | (60,376 | ) | (160,763 | ) | |||||||||
Change in Net Assets from Investor Share Transactions |
(13,048,315 | ) | (22,115,647 | ) | 692,150 | (93,763 | ) | ||||||||||
Class I |
|||||||||||||||||
Proceeds from shares sold |
218,073,690 | 421,930,224 | 30,692,403 | 4,873,961 | |||||||||||||
Reinvested distributions |
53,076,217 | 65,628,792 | 465,994 | 170,043 | |||||||||||||
Payments for shares redeemed |
(448,196,872 | ) | (431,288,728 | ) | (2,221,609 | ) | (1,756,465 | ) | |||||||||
Change in Net Assets from Class I Share Transactions |
(177,046,965 | ) | 56,270,288 | 28,936,788 | 3,287,539 | ||||||||||||
Class Y |
|||||||||||||||||
Proceeds from shares sold |
46,340,274 | 1,951,053 | 17,143,392 | 2,003,610 | |||||||||||||
Reinvested distributions |
836,880 | 1,043,115 | 669,646 | 697,590 | |||||||||||||
Payments for shares redeemed |
(15,214,772 | ) | (15,798,523 | ) | (818,744 | ) | (1,333,421 | ) | |||||||||
Change in Net Assets from Class Y Share Transactions |
31,962,382 | (12,804,355 | ) | 16,994,294 | 1,367,779 | ||||||||||||
Change in Net Assets from Capital Transactions |
$ | (158,132,898 | ) | $ | 21,350,286 | $ | 46,623,232 | $ | 4,561,555 | ||||||||
See accompanying Notes to Financial Statements.
106 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Funds
Statements of Changes in Net Assets
Long-Short Fund |
International Fund |
||||||||||||||||
For the year |
For the |
For the year |
For the |
||||||||||||||
Share Transactions: |
|||||||||||||||||
Investor |
|||||||||||||||||
Issued |
237,790 | 392,306 | 46,021 | 3,848 | |||||||||||||
Reinvested |
168,082 | 232,879 | 448 | 208 | |||||||||||||
Redeemed |
(934,396 | ) | (1,438,599 | ) | (3,882 | ) | (12,189 | ) | |||||||||
Change in Shares Outstanding |
(528,524 | ) | (813,414 | ) | 42,587 | (8,133 | ) | ||||||||||
Class I |
|||||||||||||||||
Issued |
8,349,639 | 15,345,949 | 1,976,432 | 323,722 | |||||||||||||
Reinvested |
1,961,101 | 2,601,021 | 27,887 | 11,762 | |||||||||||||
Redeemed |
(17,281,093 | ) | (16,173,943 | ) | (140,673 | ) | (121,137 | ) | |||||||||
Change in Shares Outstanding |
(6,970,353 | ) | 1,773,027 | 1,863,646 | 214,347 | ||||||||||||
Class Y |
|||||||||||||||||
Issued |
1,872,063 | 69,195 | 1,031,707 | 137,008 | |||||||||||||
Reinvested |
30,719 | 41,046 | 40,003 | 48,191 | |||||||||||||
Redeemed |
(584,241 | ) | (539,206 | ) | (52,688 | ) | (90,979 | ) | |||||||||
Change in Shares Outstanding |
1,318,541 | (428,965 | ) | 1,019,022 | 94,220 | ||||||||||||
Change in Total Shares Outstanding |
(6,180,336 | ) | 530,648 | 2,925,255 | 300,434 | ||||||||||||
See accompanying Notes to Financial Statements.
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 107 |
Diamond Hill Funds
Statements of Changes in Net Assets
Short Duration |
Core Bond Fund |
||||||||||||||||
For the year |
For the |
For the year |
For the |
||||||||||||||
From Operations |
|||||||||||||||||
Net investment income |
$ | 78,046,665 | $ | 48,067,301 | $ | 45,922,513 | $ | 14,579,271 | |||||||||
Net realized losses on investment transactions |
(6,276,306 | ) | (9,770,136 | ) | (3,635,873 | ) | (13,666,638 | ) | |||||||||
Net change in unrealized appreciation (depreciation) on investments |
47,754,284 | (87,596,198 | ) | 29,247,584 | (58,652,379 | ) | |||||||||||
Change in Net Assets from Operations |
119,524,643 | (49,299,033 | ) | 71,534,224 | (57,739,746 | ) | |||||||||||
Distributions to Shareholders |
|||||||||||||||||
Investor |
(1,656,586 | ) | (1,151,524 | ) | (123,284 | ) | (352,151 | ) | |||||||||
Class I |
(74,008,010 | ) | (43,861,659 | ) | (41,394,498 | ) | (13,024,127 | ) | |||||||||
Class Y |
(3,517,623 | ) | (3,056,333 | ) | (4,991,535 | ) | (1,570,985 | ) | |||||||||
Change in Net Assets from Distributions to Shareholders |
(79,182,219 | ) | (48,069,516 | ) | (46,509,317 | ) | (14,947,263 | ) | |||||||||
Change in Net Assets from Capital Transactions |
425,763,101 | (253,104,500 | ) | 905,233,983 | 262,137,082 | ||||||||||||
Total Change in Net Assets |
466,105,525 | (350,473,049 | ) | 930,258,890 | 189,450,073 | ||||||||||||
Net Assets: |
|||||||||||||||||
Beginning of year |
1,148,237,008 | 1,498,710,057 | 588,875,480 | 399,425,407 | |||||||||||||
End of year |
$ | 1,614,342,533 | $ | 1,148,237,008 | $ | 1,519,134,370 | $ | 588,875,480 | |||||||||
See accompanying Notes to Financial Statements.
108 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Funds
Statements of Changes in Net Assets
Short Duration |
Core Bond Fund |
||||||||||||||||
For the year |
For the |
For the year |
For the |
||||||||||||||
Capital Transactions |
|||||||||||||||||
Investor |
|||||||||||||||||
Proceeds from shares sold |
$ | 31,768,363 | $ | 11,187,443 | $ | 2,876,561 | $ | 29,148,774 | |||||||||
Reinvested distributions |
1,563,714 | 1,138,661 | 118,172 | 350,241 | |||||||||||||
Payments for shares redeemed |
(38,298,712 | ) | (20,501,697 | ) | (4,659,423 | ) | (32,930,125 | ) | |||||||||
Change in Net Assets from Investor Share Transactions |
(4,966,635 | ) | (8,175,593 | ) | (1,664,690 | ) | (3,431,110 | ) | |||||||||
Class I |
|||||||||||||||||
Proceeds from shares sold |
974,421,830 | 716,873,735 | 966,581,977 | 526,946,636 | |||||||||||||
Reinvested distributions |
59,052,013 | 32,935,940 | 36,970,537 | 11,530,209 | |||||||||||||
Payments for shares redeemed |
(584,410,542 | ) | (921,212,652 | ) | (182,107,153 | ) | (281,486,631 | ) | |||||||||
Change in Net Assets from Class I Share Transactions |
449,063,301 | (171,402,977 | ) | 821,445,361 | 256,990,214 | ||||||||||||
Class Y |
|||||||||||||||||
Proceeds from shares sold |
8,530,952 | 20,021,129 | 103,878,334 | 14,372,450 | |||||||||||||
Reinvested distributions |
3,449,501 | 2,975,612 | 3,811,616 | 1,460,848 | |||||||||||||
Payments for shares redeemed |
(30,314,018 | ) | (96,522,671 | ) | (22,236,638 | ) | (7,255,320 | ) | |||||||||
Change in Net Assets from Class Y Share Transactions |
(18,333,565 | ) | (73,525,930 | ) | 85,453,312 | 8,577,978 | |||||||||||
Change in Net Assets from Capital Transactions |
$ | 425,763,101 | $ | (253,104,500 | ) | $ | 905,233,983 | $ | 262,137,082 | ||||||||
Share Transactions: |
|||||||||||||||||
Investor |
|||||||||||||||||
Issued |
3,323,630 | 1,154,860 | 320,462 | 3,032,990 | |||||||||||||
Reinvested |
164,271 | 118,282 | 13,238 | 37,066 | |||||||||||||
Redeemed |
(3,996,825 | ) | (2,121,599 | ) | (524,220 | ) | (3,639,827 | ) | |||||||||
Change in Shares Outstanding |
(508,924 | ) | (848,457 | ) | (190,520 | ) | (569,771 | ) | |||||||||
Class I |
|||||||||||||||||
Issued |
102,154,114 | 73,655,386 | 108,373,751 | 56,207,819 | |||||||||||||
Reinvested |
6,198,938 | 3,423,018 | 4,168,350 | 1,248,754 | |||||||||||||
Redeemed |
(61,227,102 | ) | (95,256,294 | ) | (20,640,333 | ) | (30,162,325 | ) | |||||||||
Change in Shares Outstanding |
47,125,950 | (18,177,890 | ) | 91,901,768 | 27,294,248 | ||||||||||||
Class Y |
|||||||||||||||||
Issued |
893,797 | 2,065,663 | 11,734,769 | 1,582,542 | |||||||||||||
Reinvested |
362,271 | 307,913 | 429,270 | 156,999 | |||||||||||||
Redeemed |
(3,173,574 | ) | (9,829,846 | ) | (2,472,106 | ) | (768,111 | ) | |||||||||
Change in Shares Outstanding |
(1,917,506 | ) | (7,456,270 | ) | 9,691,933 | 971,430 | |||||||||||
Change in Total Shares Outstanding |
44,699,520 | (26,482,617 | ) | 101,403,181 | 27,695,907 | ||||||||||||
See accompanying Notes to Financial Statements.
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 109 |
Small Cap Fund
Financial Highlights
Selected data for a share outstanding throughout the periods indicated
Small Cap Fund |
Net asset |
Net |
Net realized |
Total from |
Dividends |
|||||||||||||||
Investor |
||||||||||||||||||||
For the year ended December 31, 2023 |
$ | 25.06 | 0.24 | 5.49 | 5.73 | (0.63 | ) | |||||||||||||
For the year ended December 31, 2022 |
$ | 34.73 | 0.11 | (5.23 | ) | (5.12 | ) | (0.15 | ) | |||||||||||
For the year ended December 31, 2021 |
$ | 30.96 | 0.07 | 9.75 | 9.82 | (0.07 | ) | |||||||||||||
For the year ended December 31, 2020 |
$ | 31.23 | 0.01 | (0.18 | ) | (0.17 | ) | (0.10 | ) | |||||||||||
For the year ended December 31, 2019 |
$ | 27.54 | 0.06 | 5.80 | 5.86 | (0.34 | ) | |||||||||||||
|
||||||||||||||||||||
Class I |
||||||||||||||||||||
For the year ended December 31, 2023 |
$ | 25.67 | 0.33 | 5.61 | 5.94 | (0.70 | ) | |||||||||||||
For the year ended December 31, 2022 |
$ | 35.44 | 0.18 | (5.31 | ) | (5.13 | ) | (0.24 | ) | |||||||||||
For the year ended December 31, 2021 |
$ | 31.49 | 0.19 | 9.92 | 10.11 | (0.18 | ) | |||||||||||||
For the year ended December 31, 2020 |
$ | 31.77 | 0.09 | (0.18 | ) | (0.09 | ) | (0.19 | ) | |||||||||||
For the year ended December 31, 2019 |
$ | 27.98 | 0.16 | 5.90 | 6.06 | (0.44 | ) | |||||||||||||
|
||||||||||||||||||||
Class Y |
||||||||||||||||||||
For the year ended December 31, 2023 |
$ | 25.72 | 0.36 | 5.65 | 6.01 | (0.74 | ) | |||||||||||||
For the year ended December 31, 2022 |
$ | 35.49 | 0.22 | (5.32 | ) | (5.10 | ) | (0.27 | ) | |||||||||||
For the year ended December 31, 2021 |
$ | 31.52 | 0.22 | 9.95 | 10.17 | (0.22 | ) | |||||||||||||
For the year ended December 31, 2020 |
$ | 31.80 | 0.12 | (0.17 | ) | (0.05 | ) | (0.23 | ) | |||||||||||
For the year ended December 31, 2019 |
$ | 28.01 | 0.19 | 5.91 | 6.10 | (0.48 | ) | |||||||||||||
|
||||||||||||||||||||
|
(A) |
Net investment income per share has been calculated using the average daily shares outstanding during the year. |
|
(B) |
Total returns shown exclude the effect of applicable sales charges for years prior to December 31, 2021. |
|
(C) |
The Fund’s adviser has contractually agreed to waive fees in the pro-rata amount of the management fee charged by the underlying Diamond Hill Fund on each Fund’s investment in such other Diamond Hill Fund. If such fee waiver had not occurred, the ratios would have been as indicated for the year ended December 31, 2019. |
110 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Distributions |
Total |
Net asset |
Total return(B) |
Net assets, |
Ratio of |
Ratio of |
Ratio of net |
Portfolio |
|||||||||||||||||||||||||||
| (6.61 | ) | (7.24 | ) | $ | 23.55 | 22.94 | % | $ | 62,642 | 1.26 | % | 1.26 | % | 0.88 | % | 41 | % | ||||||||||||||||||
| (4.40 | ) | (4.55 | ) | $ | 25.06 | (15.02 | )% | $ | 79,634 | 1.26 | % | 1.26 | % | 0.34 | % | 37 | %(E) | ||||||||||||||||||
| (5.98 | ) | (6.05 | ) | $ | 34.73 | 32.45 | % | $ | 123,975 | 1.26 | % | 1.26 | % | 0.20 | % | 20 | % | ||||||||||||||||||
| — | (0.10 | ) | $ | 30.96 | (0.55 | )% | $ | 117,491 | 1.26 | % | 1.26 | % | 0.05 | % | 34 | % | |||||||||||||||||||
| (1.83 | ) | (2.17 | ) | $ | 31.23 | 21.36 | % | $ | 165,339 | 1.27 | % | 1.27 | % | 0.23 | % | 22 | % | ||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
| (6.61 | ) | (7.31 | ) | $ | 24.30 | 23.22 | % | $ | 149,790 | 0.97 | % | 0.97 | % | 1.19 | % | 41 | % | ||||||||||||||||||
| (4.40 | ) | (4.64 | ) | $ | 25.67 | (14.77 | )% | $ | 187,656 | 0.97 | % | 0.97 | % | 0.57 | % | 37 | %(E) | ||||||||||||||||||
| (5.98 | ) | (6.16 | ) | $ | 35.44 | 32.83 | % | $ | 391,856 | 0.97 | % | 0.97 | % | 0.52 | % | 20 | % | ||||||||||||||||||
| — | (0.19 | ) | $ | 31.49 | (0.28 | )% | $ | 350,375 | 0.97 | % | 0.97 | % | 0.33 | % | 34 | % | |||||||||||||||||||
| (1.83 | ) | (2.27 | ) | $ | 31.77 | 21.75 | % | $ | 469,014 | 0.98 | % | 0.98 | % | 0.52 | % | 22 | % | ||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
| (6.61 | ) | (7.35 | ) | $ | 24.38 | 23.47 | % | $ | 18,448 | 0.85 | % | 0.85 | % | 1.29 | % | 41 | % | ||||||||||||||||||
| (4.40 | ) | (4.67 | ) | $ | 25.72 | (14.64 | )% | $ | 18,592 | 0.85 | % | 0.85 | % | 0.69 | % | 37 | %(E) | ||||||||||||||||||
| (5.98 | ) | (6.20 | ) | $ | 35.49 | 32.98 | % | $ | 52,704 | 0.85 | % | 0.85 | % | 0.59 | % | 20 | % | ||||||||||||||||||
| — | (0.23 | ) | $ | 31.52 | (0.17 | )% | $ | 56,417 | 0.85 | % | 0.85 | % | 0.46 | % | 34 | % | |||||||||||||||||||
| (1.83 | ) | (2.31 | ) | $ | 31.80 | 21.88 | % | $ | 105,030 | 0.86 | % | 0.86 | % | 0.62 | % | 22 | % | ||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
|
(D) |
Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued. |
|
(E) |
Portfolio turnover does not include redemptions in-kind. |
See accompanying Notes to Financial Statements.
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 111 |
Small-Mid Cap Fund
Financial Highlights
Selected data for a share outstanding throughout the periods indicated
Small-Mid Cap Fund |
Net asset |
Net |
Net realized |
Total from |
Dividends |
|||||||||||||||
Investor |
||||||||||||||||||||
For the year ended December 31, 2023 |
$ | 23.04 | 0.15 | 2.42 | 2.57 | (0.07 | ) | |||||||||||||
For the year ended December 31, 2022 |
$ | 28.06 | 0.12 | (3.99 | ) | (3.87 | ) | (0.12 | ) | |||||||||||
For the year ended December 31, 2021 |
$ | 22.69 | 0.05 | 6.87 | 6.92 | (0.05 | ) | |||||||||||||
For the year ended December 31, 2020 |
$ | 22.57 | 0.03 | 0.20 | 0.23 | (0.10 | ) | |||||||||||||
For the year ended December 31, 2019 |
$ | 18.59 | 0.04 | 5.02 | 5.06 | (0.14 | ) | |||||||||||||
|
||||||||||||||||||||
Class I |
||||||||||||||||||||
For the year ended December 31, 2023 |
$ | 23.31 | 0.26 | 2.42 | 2.68 | (0.32 | ) | |||||||||||||
For the year ended December 31, 2022 |
$ | 28.38 | 0.19 | (4.04 | ) | (3.85 | ) | (0.19 | ) | |||||||||||
For the year ended December 31, 2021 |
$ | 22.93 | 0.12 | 6.96 | 7.08 | (0.13 | ) | |||||||||||||
For the year ended December 31, 2020 |
$ | 22.80 | 0.09 | 0.21 | 0.30 | (0.16 | ) | |||||||||||||
For the year ended December 31, 2019 |
$ | 18.76 | 0.11 | 5.08 | 5.19 | (0.21 | ) | |||||||||||||
|
||||||||||||||||||||
Class Y |
||||||||||||||||||||
For the year ended December 31, 2023 |
$ | 23.37 | 0.29 | 2.43 | 2.72 | (0.35 | ) | |||||||||||||
For the year ended December 31, 2022 |
$ | 28.45 | 0.23 | (4.06 | ) | (3.83 | ) | (0.22 | ) | |||||||||||
For the year ended December 31, 2021 |
$ | 22.99 | 0.16 | 6.96 | 7.12 | (0.16 | ) | |||||||||||||
For the year ended December 31, 2020 |
$ | 22.84 | 0.12 | 0.22 | 0.34 | (0.18 | ) | |||||||||||||
For the year ended December 31, 2019 |
$ | 18.80 | 0.13 | 5.08 | 5.21 | (0.23 | ) | |||||||||||||
|
||||||||||||||||||||
|
(A) |
Net investment income per share has been calculated using the average daily shares outstanding during the year. |
|
(B) |
Total returns shown exclude the effect of applicable sales charges for years prior to December 31, 2021. |
|
(C) |
The Fund’s adviser has contractually agreed to waive fees in the pro-rata amount of the management fee charged by the underlying Diamond Hill Fund on each Fund’s investment in such other Diamond Hill Fund. If such fee waiver had not occurred, the ratios would have been as indicated. |
112 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Distributions |
Total |
Net asset |
Total return(B) |
Net assets, |
Ratio of |
Ratio of |
Ratio of net |
Portfolio |
|||||||||||||||||||||||||||
| (0.19 | ) | (0.26 | ) | $ | 25.35 | 11.12 | % | $ | 44,270 | 1.21 | % | 1.21 | % | 0.63 | % | 16 | %(E) | ||||||||||||||||||
| (1.03 | ) | (1.15 | ) | $ | 23.04 | (13.86 | )% | $ | 163,974 | 1.21 | % | 1.21 | % | 0.45 | % | 25 | %(E) | ||||||||||||||||||
| (1.50 | ) | (1.55 | ) | $ | 28.06 | 30.78 | % | $ | 208,110 | 1.20 | % | 1.21 | % | 0.18 | % | 14 | % | ||||||||||||||||||
| (0.01 | ) | (0.11 | ) | $ | 22.69 | 1.03 | % | $ | 162,637 | 1.20 | % | 1.21 | % | 0.19 | % | 31 | %(E) | ||||||||||||||||||
| (0.94 | ) | (1.08 | ) | $ | 22.57 | 27.33 | % | $ | 183,914 | 1.21 | % | 1.22 | % | 0.21 | % | 14 | % | ||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
| (0.19 | ) | (0.51 | ) | $ | 25.48 | 11.47 | % | $ | 758,160 | 0.92 | % | 0.92 | % | 1.07 | % | 16 | %(E) | ||||||||||||||||||
| (1.03 | ) | (1.22 | ) | $ | 23.31 | (13.62 | )% | $ | 813,600 | 0.92 | % | 0.92 | % | 0.74 | % | 25 | %(E) | ||||||||||||||||||
| (1.50 | ) | (1.63 | ) | $ | 28.38 | 31.14 | % | $ | 1,059,287 | 0.91 | % | 0.92 | % | 0.45 | % | 14 | % | ||||||||||||||||||
| (0.01 | ) | (0.17 | ) | $ | 22.93 | 1.31 | % | $ | 889,148 | 0.91 | % | 0.92 | % | 0.49 | % | 31 | %(E) | ||||||||||||||||||
| (0.94 | ) | (1.15 | ) | $ | 22.80 | 27.74 | % | $ | 1,081,619 | 0.92 | % | 0.93 | % | 0.50 | % | 14 | % | ||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
| (0.19 | ) | (0.54 | ) | $ | 25.55 | 11.62 | % | $ | 815,252 | 0.80 | % | 0.80 | % | 1.21 | % | 16 | %(E) | ||||||||||||||||||
| (1.03 | ) | (1.25 | ) | $ | 23.37 | (13.51 | )% | $ | 924,744 | 0.80 | % | 0.80 | % | 0.87 | % | 25 | %(E) | ||||||||||||||||||
| (1.50 | ) | (1.66 | ) | $ | 28.45 | 31.24 | % | $ | 1,011,010 | 0.79 | % | 0.80 | % | 0.59 | % | 14 | % | ||||||||||||||||||
| (0.01 | ) | (0.19 | ) | $ | 22.99 | 1.50 | % | $ | 888,375 | 0.79 | % | 0.80 | % | 0.61 | % | 31 | %(E) | ||||||||||||||||||
| (0.94 | ) | (1.17 | ) | $ | 22.84 | 27.82 | % | $ | 1,147,458 | 0.80 | % | 0.81 | % | 0.62 | % | 14 | % | ||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
|
(D) |
Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued. |
|
(E) |
Portfolio turnover does not include redemptions in-kind. |
See accompanying Notes to Financial Statements.
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 113 |
Mid Cap Fund
Financial Highlights
Selected data for a share outstanding throughout the periods indicated
Mid Cap Fund |
Net asset |
Net |
Net realized |
Total from |
Dividends |
|||||||||||||||
Investor |
||||||||||||||||||||
For the year ended December 31, 2023 |
$ | 15.33 | 0.08 | 1.32 | 1.40 | (0.04 | ) | |||||||||||||
For the year ended December 31, 2022 |
$ | 18.62 | 0.07 | (2.60 | ) | (2.53 | ) | (0.10 | ) | |||||||||||
For the year ended December 31, 2021 |
$ | 14.27 | 0.05 | 4.36 | 4.41 | (0.06 | ) | |||||||||||||
For the year ended December 31, 2020 |
$ | 14.64 | 0.05 | (0.34 | ) | (0.29 | ) | (0.06 | ) | |||||||||||
For the year ended December 31, 2019 |
$ | 11.89 | 0.05 | 2.96 | 3.01 | (0.05 | ) | |||||||||||||
|
||||||||||||||||||||
Class I |
||||||||||||||||||||
For the year ended December 31, 2023 |
$ | 15.39 | 0.14 | 1.31 | 1.45 | (0.19 | ) | |||||||||||||
For the year ended December 31, 2022 |
$ | 18.69 | 0.12 | (2.61 | ) | (2.49 | ) | (0.15 | ) | |||||||||||
For the year ended December 31, 2021 |
$ | 14.32 | 0.10 | 4.38 | 4.48 | (0.11 | ) | |||||||||||||
For the year ended December 31, 2020 |
$ | 14.69 | 0.09 | (0.35 | ) | (0.26 | ) | (0.09 | ) | |||||||||||
For the year ended December 31, 2019 |
$ | 11.92 | 0.10 | 2.97 | 3.07 | (0.09 | ) | |||||||||||||
|
||||||||||||||||||||
Class Y |
||||||||||||||||||||
For the year ended December 31, 2023 |
$ | 15.43 | 0.16 | 1.33 | 1.49 | (0.21 | ) | |||||||||||||
For the year ended December 31, 2022 |
$ | 18.74 | 0.14 | (2.62 | ) | (2.48 | ) | (0.17 | ) | |||||||||||
For the year ended December 31, 2021 |
$ | 14.36 | 0.11 | 4.40 | 4.51 | (0.13 | ) | |||||||||||||
For the year ended December 31, 2020 |
$ | 14.73 | 0.10 | (0.35 | ) | (0.25 | ) | (0.10 | ) | |||||||||||
For the year ended December 31, 2019 |
$ | 11.95 | 0.11 | 2.98 | 3.09 | (0.10 | ) | |||||||||||||
|
||||||||||||||||||||
|
(A) |
Net investment income per share has been calculated using the average daily shares outstanding during the year. |
|
(B) |
Total returns shown exclude the effect of applicable sales charges for years prior to December 31, 2021. |
|
(C) |
The Fund’s adviser has contractually agreed to waive fees in the pro-rata amount of the management fee charged by the underlying Diamond Hill Fund on each Fund’s investment in such other Diamond Hill Fund. If such fee waiver had not occurred, the ratios would have been as indicated for the years ended December 31, 2022 through 2019. |
114 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Distributions |
Total |
Net asset |
Total return(B) |
Net assets, |
Ratio of |
Ratio of |
Ratio of net |
Portfolio |
|||||||||||||||||||||||||||
| (0.32 | ) | (0.36 | ) | $ | 16.37 | 9.14 | % | $ | 4,435 | 1.06 | % | 1.06 | % | 0.48 | % | 22 | % | ||||||||||||||||||
| (0.66 | ) | (0.76 | ) | $ | 15.33 | (13.66 | )% | $ | 23,932 | 1.06 | % | 1.06 | % | 0.46 | % | 19 | %(E) | ||||||||||||||||||
| — | (0.06 | ) | $ | 18.62 | 30.87 | % | $ | 33,006 | 1.06 | % | 1.06 | % | 0.30 | % | 12 | % | |||||||||||||||||||
| (0.02 | ) | (0.08 | ) | $ | 14.27 | (2.01 | )% | $ | 33,178 | 1.06 | % | 1.06 | % | 0.41 | % | 52 | % | ||||||||||||||||||
| (0.21 | ) | (0.26 | ) | $ | 14.64 | 25.36 | % | $ | 31,997 | 1.06 | % | 1.07 | % | 0.36 | % | 31 | % | ||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
| (0.32 | ) | (0.51 | ) | $ | 16.33 | 9.44 | % | $ | 149,820 | 0.77 | % | 0.77 | % | 0.90 | % | 22 | % | ||||||||||||||||||
| (0.66 | ) | (0.81 | ) | $ | 15.39 | (13.39 | )% | $ | 150,772 | 0.77 | % | 0.77 | % | 0.75 | % | 19 | %(E) | ||||||||||||||||||
| — | (0.11 | ) | $ | 18.69 | 31.29 | % | $ | 229,696 | 0.77 | % | 0.77 | % | 0.60 | % | 12 | % | |||||||||||||||||||
| (0.02 | ) | (0.11 | ) | $ | 14.32 | (1.76 | )% | $ | 194,354 | 0.77 | % | 0.77 | % | 0.71 | % | 52 | % | ||||||||||||||||||
| (0.21 | ) | (0.30 | ) | $ | 14.69 | 25.82 | % | $ | 177,536 | 0.77 | % | 0.78 | % | 0.68 | % | 31 | % | ||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
| (0.32 | ) | (0.53 | ) | $ | 16.39 | 9.65 | % | $ | 8,263 | 0.65 | % | 0.65 | % | 0.99 | % | 22 | % | ||||||||||||||||||
| (0.66 | ) | (0.83 | ) | $ | 15.43 | (13.31 | )% | $ | 12,528 | 0.65 | % | 0.65 | % | 0.86 | % | 19 | %(E) | ||||||||||||||||||
| — | (0.13 | ) | $ | 18.74 | 31.41 | % | $ | 23,739 | 0.65 | % | 0.65 | % | 0.69 | % | 12 | % | |||||||||||||||||||
| (0.02 | ) | (0.12 | ) | $ | 14.36 | (1.66 | )% | $ | 23,248 | 0.65 | % | 0.65 | % | 0.82 | % | 52 | % | ||||||||||||||||||
| (0.21 | ) | (0.31 | ) | $ | 14.73 | 25.91 | % | $ | 20,454 | 0.65 | % | 0.66 | % | 0.74 | % | 31 | % | ||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
|
(D) |
Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued. |
|
(E) |
Portfolio turnover does not include redemptions in-kind. |
See accompanying Notes to Financial Statements.
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 115 |
Large Cap Fund
Financial Highlights
Selected data for a share outstanding throughout the periods indicated
Large Cap Fund |
Net asset |
Net |
Net realized |
Total from |
||||||||||||
Investor |
||||||||||||||||
For the year ended December 31, 2023 |
$ | 28.86 | 0.35 | 3.49 | 3.84 | |||||||||||
For the year ended December 31, 2022 |
$ | 35.50 | 0.28 | (5.09 | ) | (4.81 | ) | |||||||||
For the year ended December 31, 2021 |
$ | 30.42 | 0.23 | 7.43 | 7.66 | |||||||||||
For the year ended December 31, 2020 |
$ | 28.86 | 0.28 | 2.19 | 2.47 | |||||||||||
For the year ended December 31, 2019 |
$ | 22.89 | 0.28 | 6.99 | 7.27 | |||||||||||
|
||||||||||||||||
Class I |
||||||||||||||||
For the year ended December 31, 2023 |
$ | 29.04 | 0.44 | 3.52 | 3.96 | |||||||||||
For the year ended December 31, 2022 |
$ | 35.69 | 0.37 | (5.10 | ) | (4.73 | ) | |||||||||
For the year ended December 31, 2021 |
$ | 30.57 | 0.34 | 7.46 | 7.80 | |||||||||||
For the year ended December 31, 2020 |
$ | 29.05 | 0.36 | 2.22 | 2.58 | |||||||||||
For the year ended December 31, 2019 |
$ | 23.03 | 0.36 | 7.04 | 7.40 | |||||||||||
|
||||||||||||||||
Class Y |
||||||||||||||||
For the year ended December 31, 2023 |
$ | 29.06 | 0.48 | 3.52 | 4.00 | |||||||||||
For the year ended December 31, 2022 |
$ | 35.72 | 0.41 | (5.10 | ) | (4.69 | ) | |||||||||
For the year ended December 31, 2021 |
$ | 30.59 | 0.38 | 7.47 | 7.85 | |||||||||||
For the year ended December 31, 2020 |
$ | 29.07 | 0.40 | 2.21 | 2.61 | |||||||||||
For the year ended December 31, 2019 |
$ | 23.04 | 0.40 | 7.05 | 7.45 | |||||||||||
|
||||||||||||||||
|
(A) |
Net investment income per share has been calculated using the average daily shares outstanding during the year. |
|
(B) |
Total returns shown exclude the effect of applicable sales charges for years prior to December 31, 2021. |
|
(C) |
Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued. |
116 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Dividends |
Distributions |
Total |
Net asset |
Total return(B) |
Net assets, |
Ratio of total |
Ratio of net |
Portfolio |
|||||||||||||||||||||||||||
| (0.24 | ) | (0.74 | ) | (0.98 | ) | $ | 31.72 | 13.31 | % | $ | 332 | 0.96 | % | 1.16 | % | 22 | % | ||||||||||||||||||
| (0.33 | ) | (1.50 | ) | (1.83 | ) | $ | 28.86 | (13.66 | )% | $ | 777 | 0.96 | % | 0.87 | % | 38 | %(D) | ||||||||||||||||||
| (0.21 | ) | (2.37 | ) | (2.58 | ) | $ | 35.50 | 25.42 | % | $ | 987 | 0.96 | % | 0.68 | % | 22 | %(D) | ||||||||||||||||||
| (0.18 | ) | (0.73 | ) | (0.91 | ) | $ | 30.42 | 8.65 | % | $ | 763 | 0.96 | % | 1.04 | % | 33 | % | ||||||||||||||||||
| (0.26 | ) | (1.04 | ) | (1.30 | ) | $ | 28.86 | 31.80 | % | $ | 1,243 | 0.97 | % | 1.03 | % | 22 | %(E) | ||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
| (0.46 | ) | (0.74 | ) | (1.20 | ) | $ | 31.80 | 13.66 | % | $ | 5,228 | 0.67 | % | 1.47 | % | 22 | % | ||||||||||||||||||
| (0.42 | ) | (1.50 | ) | (1.92 | ) | $ | 29.04 | (13.38 | )% | $ | 5,417 | 0.67 | % | 1.16 | % | 38 | %(D) | ||||||||||||||||||
| (0.31 | ) | (2.37 | ) | (2.68 | ) | $ | 35.69 | 25.75 | % | $ | 8,168 | 0.67 | % | 0.97 | % | 22 | %(D) | ||||||||||||||||||
| (0.33 | ) | (0.73 | ) | (1.06 | ) | $ | 30.57 | 8.97 | % | $ | 5,140 | 0.67 | % | 1.33 | % | 33 | % | ||||||||||||||||||
| (0.34 | ) | (1.04 | ) | (1.38 | ) | $ | 29.05 | 32.18 | % | $ | 3,878 | 0.68 | % | 1.32 | % | 22 | %(E) | ||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
| (0.50 | ) | (0.74 | ) | (1.24 | ) | $ | 31.82 | 13.78 | % | $ | 2,852 | 0.55 | % | 1.60 | % | 22 | % | ||||||||||||||||||
| (0.47 | ) | (1.50 | ) | (1.97 | ) | $ | 29.06 | (13.27 | )% | $ | 2,296 | 0.55 | % | 1.28 | % | 38 | %(D) | ||||||||||||||||||
| (0.35 | ) | (2.37 | ) | (2.72 | ) | $ | 35.72 | 25.89 | % | $ | 3,205 | 0.55 | % | 1.09 | % | 22 | %(D) | ||||||||||||||||||
| (0.36 | ) | (0.73 | ) | (1.09 | ) | $ | 30.59 | 9.07 | % | $ | 2,340 | 0.55 | % | 1.45 | % | 33 | % | ||||||||||||||||||
| (0.38 | ) | (1.04 | ) | (1.42 | ) | $ | 29.07 | 32.34 | % | $ | 1,568 | 0.56 | % | 1.44 | % | 22 | %(E) | ||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
|
(D) |
Portfolio turnover does not include redemptions in-kind. |
|
(E) |
Portfolio turnover does not include in-kind subscriptions. |
See accompanying Notes to Financial Statements.
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 117 |
Large Cap Concentrated Fund
Financial Highlights
Selected data for a share outstanding throughout the periods indicated
Large Cap Concentrated Fund(A) |
Net asset |
Net |
Net realized |
Total from |
||||||||||||
Investor |
||||||||||||||||
For the year ended December 31, 2023 |
$ | 10.33 | 0.13 | 1.61 | 1.74 | |||||||||||
For the year ended December 31, 2022 |
$ | 11.90 | 0.10 | (1.64 | ) | (1.54 | ) | |||||||||
For the period ended December 31, 2021 |
$ | 10.00 | 0.05 | 2.00 | 2.05 | |||||||||||
|
||||||||||||||||
Class I |
||||||||||||||||
For the year ended December 31, 2023 |
$ | 10.28 | 0.16 | 1.61 | 1.77 | |||||||||||
For the year ended December 31, 2022 |
$ | 11.92 | 0.14 | (1.66 | ) | (1.52 | ) | |||||||||
For the period ended December 31, 2021 |
$ | 10.00 | 0.07 | 2.02 | 2.09 | |||||||||||
|
||||||||||||||||
Class Y |
||||||||||||||||
For the year ended December 31, 2023 |
$ | 10.29 | 0.17 | 1.61 | 1.78 | |||||||||||
For the year ended December 31, 2022 |
$ | 11.92 | 0.14 | (1.64 | ) | (1.50 | ) | |||||||||
For the period ended December 31, 2021 |
$ | 10.00 | 0.09 | 2.01 | 2.10 | |||||||||||
|
||||||||||||||||
|
(A) |
Inception date of the Fund is February 26, 2021. Fund commenced public offering on May 3, 2021. |
|
(B) |
Net investment income per share has been calculated using the average daily shares outstanding during the period. |
|
(C) |
Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued. |
118 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Dividends |
Distributions |
Total |
Net asset |
Total return |
Net assets, |
Ratio of total |
Ratio of net |
Portfolio |
|||||||||||||||||||||||||||
| (0.13 | ) | — | (0.13 | ) | $ | 11.94 | 16.84 | % | $ | 295 | 0.97 | % | 1.21 | % | 34 | % | |||||||||||||||||||
| (0.03 | ) | — | (0.03 | ) | $ | 10.33 | (12.93 | )% | $ | 23 | 0.97 | % | 0.96 | % | 41 | % | |||||||||||||||||||
| (0.05 | ) | (0.10 | ) | (0.15 | ) | $ | 11.90 | 20.53 | %(D) | $ | 33 | 0.96 | %(E) | 0.56 | %(E) | 18 | %(D) | ||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
| (0.16 | ) | — | (0.16 | ) | $ | 11.89 | 17.21 | % | $ | 10,635 | 0.68 | % | 1.45 | % | 34 | % | |||||||||||||||||||
| (0.12 | ) | — | (0.12 | ) | $ | 10.28 | (12.75 | )% | $ | 9,107 | 0.68 | % | 1.38 | % | 41 | % | |||||||||||||||||||
| (0.07 | ) | (0.10 | ) | (0.17 | ) | $ | 11.92 | 20.92 | %(D) | $ | 2,015 | 0.67 | %(E) | 0.77 | %(E) | 18 | %(D) | ||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
| (0.17 | ) | — | (0.17 | ) | $ | 11.90 | 17.32 | % | $ | 16,706 | 0.56 | % | 1.57 | % | 34 | % | |||||||||||||||||||
| (0.13 | ) | — | (0.13 | ) | $ | 10.29 | (12.62 | )% | $ | 14,017 | 0.56 | % | 1.32 | % | 41 | % | |||||||||||||||||||
| (0.08 | ) | (0.10 | ) | (0.18 | ) | $ | 11.92 | 20.98 | %(D) | $ | 15,898 | 0.55 | %(E) | 1.00 | %(E) | 18 | %(D) | ||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
|
(D) |
Not annualized. |
|
(E) |
Annualized. |
See accompanying Notes to Financial Statements.
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 119 |
Select Fund
Financial Highlights
Selected data for a share outstanding throughout the periods indicated
Select Fund |
Net asset |
Net |
Net realized |
Total from |
||||||||||||
Investor |
||||||||||||||||
For the year ended December 31, 2023 |
$ | 17.03 | 0.05 | 5.09 | 5.14 | |||||||||||
For the year ended December 31, 2022 |
$ | 21.44 | (0.02 | ) | (3.70 | ) | (3.72 | ) | ||||||||
For the year ended December 31, 2021 |
$ | 18.43 | 0.10 | 5.85 | 5.95 | |||||||||||
For the year ended December 31, 2020 |
$ | 16.17 | 0.05 | 2.26 | 2.31 | |||||||||||
For the year ended December 31, 2019 |
$ | 12.64 | 0.06 | 3.78 | 3.84 | |||||||||||
|
||||||||||||||||
Class I |
||||||||||||||||
For the year ended December 31, 2023 |
$ | 17.28 | 0.11 | 5.17 | 5.28 | |||||||||||
For the year ended December 31, 2022 |
$ | 21.73 | 0.04 | (3.76 | ) | (3.72 | ) | |||||||||
For the year ended December 31, 2021 |
$ | 18.60 | 0.14 | 5.96 | 6.10 | |||||||||||
For the year ended December 31, 2020 |
$ | 16.32 | 0.09 | 2.29 | 2.38 | |||||||||||
For the year ended December 31, 2019 |
$ | 12.72 | 0.11 | 3.80 | 3.91 | |||||||||||
|
||||||||||||||||
Class Y |
||||||||||||||||
For the year ended December 31, 2023 |
$ | 17.36 | 0.12 | 5.20 | 5.32 | |||||||||||
For the year ended December 31, 2022 |
$ | 21.82 | 0.05 | (3.76 | ) | (3.71 | ) | |||||||||
For the year ended December 31, 2021 |
$ | 18.66 | 0.14 | 6.01 | 6.15 | |||||||||||
For the year ended December 31, 2020 |
$ | 16.37 | 0.11 | 2.30 | 2.41 | |||||||||||
For the year ended December 31, 2019 |
$ | 12.74 | 0.13 | 3.81 | 3.94 | |||||||||||
|
||||||||||||||||
|
(A) |
Net investment income (loss) per share has been calculated using the average daily shares outstanding during the year. |
|
(B) |
Total returns shown exclude the effect of applicable sales charges for years prior to December 31, 2021. |
|
(C) |
Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued. |
120 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Dividends |
Distributions |
Total |
Net asset |
Total return(B) |
Net assets, |
Ratio of |
Ratio of net |
Portfolio |
|||||||||||||||||||||||||||
| (0.05 | ) | (0.01 | ) | (0.06 | ) | $ | 22.11 | 30.19 | % | $ | 31,797 | 1.16 | % | 0.26 | % | 60 | % | ||||||||||||||||||
| — | (0.69 | ) | (0.69 | ) | $ | 17.03 | (17.44 | )% | $ | 28,808 | 1.16 | % | (0.09 | )% | 78 | %(D) | |||||||||||||||||||
| (0.17 | ) | (2.77 | ) | (2.94 | ) | $ | 21.44 | 32.91 | % | $ | 31,064 | 1.16 | % | 0.44 | % | 55 | % | ||||||||||||||||||
| (0.05 | ) | — | (0.05 | ) | $ | 18.43 | 14.30 | % | $ | 10,207 | 1.16 | % | 0.33 | % | 76 | % | |||||||||||||||||||
| — | (0.31 | ) | (0.31 | ) | $ | 16.17 | 30.41 | % | $ | 11,049 | 1.17 | % | 0.46 | % | 45 | % | |||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
| (0.11 | ) | (0.01 | ) | (0.12 | ) | $ | 22.44 | 30.56 | % | $ | 389,017 | 0.87 | % | 0.59 | % | 60 | % | ||||||||||||||||||
| (0.04 | ) | (0.69 | ) | (0.73 | ) | $ | 17.28 | (17.20 | )% | $ | 238,051 | 0.87 | % | 0.21 | % | 78 | %(D) | ||||||||||||||||||
| (0.20 | ) | (2.77 | ) | (2.97 | ) | $ | 21.73 | 33.39 | % | $ | 232,051 | 0.87 | % | 0.61 | % | 55 | % | ||||||||||||||||||
| (0.10 | ) | — | (0.10 | ) | $ | 18.60 | 14.57 | % | $ | 171,263 | 0.87 | % | 0.62 | % | 76 | % | |||||||||||||||||||
| — | (0.31 | ) | (0.31 | ) | $ | 16.32 | 30.77 | % | $ | 152,591 | 0.88 | % | 0.75 | % | 45 | % | |||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
| (0.12 | ) | (0.01 | ) | (0.13 | ) | $ | 22.55 | 30.69 | % | $ | 48,858 | 0.75 | % | 0.66 | % | 60 | % | ||||||||||||||||||
| (0.06 | ) | (0.69 | ) | (0.75 | ) | $ | 17.36 | (17.10 | )% | $ | 57,091 | 0.75 | % | 0.27 | % | 78 | %(D) | ||||||||||||||||||
| (0.22 | ) | (2.77 | ) | (2.99 | ) | $ | 21.82 | 33.55 | % | $ | 120,283 | 0.75 | % | 0.64 | % | 55 | % | ||||||||||||||||||
| (0.12 | ) | — | (0.12 | ) | $ | 18.66 | 14.70 | % | $ | 141,244 | 0.75 | % | 0.74 | % | 76 | % | |||||||||||||||||||
| — | (0.31 | ) | (0.31 | ) | $ | 16.37 | 30.96 | % | $ | 103,963 | 0.76 | % | 0.86 | % | 45 | % | |||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
|
(D) |
Portfolio turnover does not include redemptions in-kind. |
See accompanying Notes to Financial Statements.
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 121 |
Long-Short Fund
Financial Highlights
Selected data for a share outstanding throughout the periods indicated
Long-Short Fund |
Net asset |
Net |
Net realized |
Total from |
Dividends |
|||||||||||||||
Investor |
||||||||||||||||||||
For the year ended December 31, 2023 |
$ | 24.12 | 0.47 | 2.44 | 2.91 | (0.53 | ) | |||||||||||||
For the year ended December 31, 2022 |
$ | 27.76 | 0.08 | (2.50 | ) | (2.42 | ) | (0.09 | ) | |||||||||||
For the year ended December 31, 2021 |
$ | 25.89 | (0.11 | ) | 4.98 | 4.87 | — | |||||||||||||
For the year ended December 31, 2020 |
$ | 26.29 | 0.02 | (0.17 | ) | (0.15 | ) | (0.05 | ) | |||||||||||
For the year ended December 31, 2019 |
$ | 22.78 | 0.13 | 5.04 | 5.17 | (0.17 | ) | |||||||||||||
|
||||||||||||||||||||
Class I |
||||||||||||||||||||
For the year ended December 31, 2023 |
$ | 24.96 | 0.57 | 2.52 | 3.09 | (0.61 | ) | |||||||||||||
For the year ended December 31, 2022 |
$ | 28.68 | 0.17 | (2.59 | ) | (2.42 | ) | (0.17 | ) | |||||||||||
For the year ended December 31, 2021 |
$ | 26.58 | (0.03 | ) | 5.13 | 5.10 | — | |||||||||||||
For the year ended December 31, 2020 |
$ | 26.98 | 0.09 | (0.17 | ) | (0.08 | ) | (0.12 | ) | |||||||||||
For the year ended December 31, 2019 |
$ | 23.32 | 0.22 | 5.16 | 5.38 | (0.23 | ) | |||||||||||||
|
||||||||||||||||||||
Class Y |
||||||||||||||||||||
For the year ended December 31, 2023 |
$ | 25.11 | 0.61 | 2.53 | 3.14 | (0.64 | ) | |||||||||||||
For the year ended December 31, 2022 |
$ | 28.85 | 0.19 | (2.60 | ) | (2.41 | ) | (0.20 | ) | |||||||||||
For the year ended December 31, 2021 |
$ | 26.69 | 0.02 | 5.14 | 5.16 | — | ||||||||||||||
For the year ended December 31, 2020 |
$ | 27.10 | 0.14 | (0.20 | ) | (0.06 | ) | (0.15 | ) | |||||||||||
For the year ended December 31, 2019 |
$ | 23.42 | 0.25 | 5.18 | 5.43 | (0.26 | ) | |||||||||||||
|
||||||||||||||||||||
|
(A) |
Net investment income (loss) per share has been calculated using the average daily shares outstanding during the year. |
|
(B) |
Total returns shown exclude the effect of applicable sales charges for years prior to December 31, 2021. |
|
(C) |
This Fund invests in short positions and as such incurs certain expenses and fees. If such expenses and fees had not occurred, the ratios of total expenses to average net assets would have been 1.36% for Investor, 1.07% for Class I, and 0.95% for Class Y for the year ended December 31, 2023. |
122 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Distributions |
Total |
Net asset |
Total return(B) |
Net assets, |
Ratio of |
Ratio of |
Ratio of net |
Portfolio |
|||||||||||||||||||||||||||
| (0.51 | ) | (1.04 | ) | $ | 25.99 | 12.12 | % | $ | 123 | 1.78 | % | 1.78 | % | 1.89 | % | 41 | % | ||||||||||||||||||
| (1.13 | ) | (1.22 | ) | $ | 24.12 | (8.74 | )% | $ | 127 | 1.78 | % | 1.78 | % | 0.30 | % | 61 | % | ||||||||||||||||||
| (3.00 | ) | (3.00 | ) | $ | 27.76 | 19.03 | % | $ | 168 | 1.92 | % | 1.93 | % | (0.38 | )% | 33 | % | ||||||||||||||||||
| (0.20 | ) | (0.25 | ) | $ | 25.89 | (0.55 | )% | $ | 162 | 1.81 | % | 1.82 | % | 0.09 | % | 65 | % | ||||||||||||||||||
| (1.49 | ) | (1.66 | ) | $ | 26.29 | 22.74 | % | $ | 235 | 1.85 | % | 1.86 | % | 0.51 | % | 54 | % | ||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
| (0.51 | ) | (1.12 | ) | $ | 26.93 | 12.40 | % | $ | 1,544 | 1.49 | % | 1.49 | % | 2.18 | % | 41 | % | ||||||||||||||||||
| (1.13 | ) | (1.30 | ) | $ | 24.96 | (8.45 | )% | $ | 1,604 | 1.49 | % | 1.49 | % | 0.61 | % | 61 | % | ||||||||||||||||||
| (3.00 | ) | (3.00 | ) | $ | 28.68 | 19.40 | % | $ | 1,792 | 1.63 | % | 1.64 | % | (0.08 | )% | 33 | % | ||||||||||||||||||
| (0.20 | ) | (0.32 | ) | $ | 26.58 | (0.27 | )% | $ | 1,794 | 1.52 | % | 1.53 | % | 0.39 | % | 65 | % | ||||||||||||||||||
| (1.49 | ) | (1.72 | ) | $ | 26.98 | 23.11 | % | $ | 2,960 | 1.56 | % | 1.57 | % | 0.84 | % | 54 | % | ||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
| (0.51 | ) | (1.15 | ) | $ | 27.10 | 12.55 | % | $ | 59 | 1.37 | % | 1.37 | % | 2.34 | % | 41 | % | ||||||||||||||||||
| (1.13 | ) | (1.33 | ) | $ | 25.11 | (8.36 | )% | $ | 22 | 1.37 | % | 1.37 | % | 0.68 | % | 61 | % | ||||||||||||||||||
| (3.00 | ) | (3.00 | ) | $ | 28.85 | 19.55 | % | $ | 37 | 1.51 | % | 1.52 | % | 0.08 | % | 33 | % | ||||||||||||||||||
| (0.20 | ) | (0.35 | ) | $ | 26.69 | (0.19 | )% | $ | 75 | 1.40 | % | 1.41 | % | 0.57 | % | 65 | % | ||||||||||||||||||
| (1.49 | ) | (1.75 | ) | $ | 27.10 | 23.23 | % | $ | 292 | 1.44 | % | 1.45 | % | 0.93 | % | 54 | % | ||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
|
(D) |
The Fund’s adviser has contractually agreed to waive fees in the pro-rata amount of the management fee charged by the underlying Diamond Hill Fund on each Fund’s investment in such other Diamond Hill Fund. If such fee waiver had not occurred, the ratios would have been as indicated for the years ended December 31, 2022 through 2018. |
|
(E) |
Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued. |
|
(F) |
The portfolio turnover rate for 2023, 2022, 2021, 2020 and 2019 would have been 40%, 46%, 30%, 47% and 42%, respectively, if the absolute value of securities sold short liability was included in the denominator of the calculation. |
See accompanying Notes to Financial Statements.
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 123 |
International Fund
Financial Highlights
Selected data for a share outstanding throughout the periods indicated
International Fund(A) |
Net asset |
Net |
Net realized |
Total from |
||||||||||||
Investor |
||||||||||||||||
For the year ended December 31, 2023 |
$ | 14.28 | 0.21 | 2.34 | 2.55 | |||||||||||
For the year ended December 31, 2022 |
$ | 16.76 | 0.17 | (2.49 | ) | (2.32 | ) | |||||||||
For the year ended December 31, 2021 |
$ | 15.48 | 0.38 | 1.52 | 1.90 | |||||||||||
For the year ended December 31, 2020 |
$ | 14.67 | 0.05 | 0.90 | 0.95 | |||||||||||
For the period ended December 31, 2019 |
$ | 13.55 | 0.02 | 1.15 | 1.17 | |||||||||||
|
||||||||||||||||
Class I |
||||||||||||||||
For the year ended December 31, 2023 |
$ | 14.29 | 0.26 | 2.33 | 2.59 | |||||||||||
For the year ended December 31, 2022 |
$ | 16.79 | 0.20 | (2.46 | ) | (2.26 | ) | |||||||||
For the year ended December 31, 2021 |
$ | 15.51 | 0.42 | 1.53 | 1.95 | |||||||||||
For the year ended December 31, 2020 |
$ | 14.69 | 0.09 | 0.90 | 0.99 | |||||||||||
For the period ended December 31, 2019 |
$ | 13.55 | 0.04 | 1.15 | 1.19 | |||||||||||
|
||||||||||||||||
Class Y |
||||||||||||||||
For the year ended December 31, 2023 |
$ | 14.30 | 0.29 | 2.33 | 2.62 | |||||||||||
For the year ended December 31, 2022 |
$ | 16.80 | 0.22 | (2.47 | ) | (2.25 | ) | |||||||||
For the year ended December 31, 2021 |
$ | 15.51 | 0.47 | 1.51 | 1.98 | |||||||||||
For the year ended December 31, 2020 |
$ | 14.69 | 0.11 | 0.89 | 1.00 | |||||||||||
For the period ended December 31, 2019 |
$ | 13.55 | 0.05 | 1.15 | 1.20 | |||||||||||
|
||||||||||||||||
|
(A) |
Inception date of the Fund is June 28, 2019. Fund commenced public offering and operations on July 1, 2019. |
|
(B) |
Net investment income per share has been calculated using the average daily shares outstanding during the period. |
|
(C) |
Total returns shown exclude the effect of applicable sales charges for periods prior to December 31, 2021. |
124 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Dividends |
Distributions |
Total |
Net asset |
Total return(C) |
Net assets, |
Ratio of total |
Ratio of net |
Portfolio |
|||||||||||||||||||||||||||
| (0.15 | ) | — | (0.15 | ) | $ | 16.68 | 17.88 | % | $ | 1,022 | 1.14 | % | 1.30 | % | 21 | % | |||||||||||||||||||
| (0.12 | ) | (0.04 | ) | (0.16 | ) | $ | 14.28 | (13.84 | )% | $ | 267 | 1.15 | % | 1.13 | % | 21 | % | ||||||||||||||||||
| (0.15 | ) | (0.47 | ) | (0.62 | ) | $ | 16.76 | 12.43 | % | $ | 449 | 1.13 | % | 2.20 | % | 33 | % | ||||||||||||||||||
| (0.06 | ) | (0.08 | ) | (0.14 | ) | $ | 15.48 | 6.48 | % | $ | 338 | 1.14 | % | 0.43 | % | 49 | % | ||||||||||||||||||
| (0.04 | ) | (0.01 | ) | (0.05 | ) | $ | 14.67 | 8.64 | %(E) | $ | 45 | 1.21 | %(F) | 0.25 | %(F) | 8 | %(E) | ||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
| (0.18 | ) | — | (0.18 | ) | $ | 16.70 | 18.12 | % | $ | 43,664 | 0.85 | % | 1.64 | % | 21 | % | |||||||||||||||||||
| (0.20 | ) | (0.04 | ) | (0.24 | ) | $ | 14.29 | (13.51 | )% | $ | 10,729 | 0.86 | % | 1.35 | % | 21 | % | ||||||||||||||||||
| (0.20 | ) | (0.47 | ) | (0.67 | ) | $ | 16.79 | 12.74 | % | $ | 9,010 | 0.84 | % | 2.43 | % | 33 | % | ||||||||||||||||||
| (0.09 | ) | (0.08 | ) | (0.17 | ) | $ | 15.51 | 6.74 | % | $ | 3,913 | 0.85 | % | 0.74 | % | 49 | % | ||||||||||||||||||
| (0.04 | ) | (0.01 | ) | (0.05 | ) | $ | 14.69 | 8.80 | %(E) | $ | 3,828 | 0.92 | %(F) | 0.61 | %(F) | 8 | %(E) | ||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
| (0.19 | ) | — | (0.19 | ) | $ | 16.73 | 18.30 | % | $ | 64,543 | 0.73 | % | 1.81 | % | 21 | % | |||||||||||||||||||
| (0.21 | ) | (0.04 | ) | (0.25 | ) | $ | 14.30 | (13.41 | )% | $ | 40,603 | 0.74 | % | 1.48 | % | 21 | % | ||||||||||||||||||
| (0.22 | ) | (0.47 | ) | (0.69 | ) | $ | 16.80 | 12.88 | % | $ | 46,129 | 0.72 | % | 2.74 | % | 33 | % | ||||||||||||||||||
| (0.10 | ) | (0.08 | ) | (0.18 | ) | $ | 15.51 | 6.81 | % | $ | 12,616 | 0.73 | % | 0.87 | % | 49 | % | ||||||||||||||||||
| (0.05 | ) | (0.01 | ) | (0.06 | ) | $ | 14.69 | 8.85 | %(E) | $ | 9,616 | 0.80 | %(F) | 0.70 | %(F) | 8 | %(E) | ||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
|
(D) |
Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued. |
|
(E) |
Not annualized. |
|
(F) |
Annualized. |
See accompanying Notes to Financial Statements.
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 125 |
Short Duration Securitized Bond Fund
Financial Highlights
Selected data for a share outstanding throughout the periods indicated
Short Duration Securitized Bond Fund |
Net asset |
Net |
Net realized |
Total from |
||||||||||||
Investor |
||||||||||||||||
For the year ended December 31, 2023 |
$ | 9.42 | 0.51 | 0.26 | 0.77 | |||||||||||
For the year ended December 31, 2022 |
$ | 10.10 | 0.31 | (0.67 | ) | (0.36 | ) | |||||||||
For the year ended December 31, 2021 |
$ | 10.09 | 0.23 | 0.01 | 0.24 | |||||||||||
For the year ended December 31, 2020 |
$ | 10.11 | 0.26 | 0.02 | 0.28 | |||||||||||
For the year ended December 31, 2019 |
$ | 10.05 | 0.38 | 0.06 | 0.44 | |||||||||||
|
||||||||||||||||
Class I |
||||||||||||||||
For the year ended December 31, 2023 |
$ | 9.41 | 0.54 | 0.28 | 0.82 | |||||||||||
For the year ended December 31, 2022 |
$ | 10.10 | 0.34 | (0.68 | ) | (0.34 | ) | |||||||||
For the year ended December 31, 2021 |
$ | 10.09 | 0.25 | 0.02 | 0.27 | |||||||||||
For the year ended December 31, 2020 |
$ | 10.12 | 0.28 | 0.02 | 0.30 | |||||||||||
For the year ended December 31, 2019 |
$ | 10.05 | 0.41 | 0.07 | 0.48 | |||||||||||
|
||||||||||||||||
Class Y |
||||||||||||||||
For the year ended December 31, 2023 |
$ | 9.42 | 0.55 | 0.28 | 0.83 | |||||||||||
For the year ended December 31, 2022 |
$ | 10.11 | 0.34 | (0.67 | ) | (0.33 | ) | |||||||||
For the year ended December 31, 2021 |
$ | 10.10 | 0.27 | 0.01 | 0.28 | |||||||||||
For the year ended December 31, 2020 |
$ | 10.12 | 0.30 | 0.02 | 0.32 | |||||||||||
For the year ended December 31, 2019 |
$ | 10.06 | 0.42 | 0.06 | 0.48 | |||||||||||
|
||||||||||||||||
|
(A) |
Net investment income per share has been calculated using the average daily shares outstanding during the year. |
|
(B) |
Total returns shown exclude the effect of applicable sales charges for years prior to December 31, 2021. |
|
(C) |
Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued. |
126 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Dividends |
Distributions |
Total |
Net asset |
Total return(B) |
Net assets, |
Ratio of total |
Ratio of net |
Portfolio |
|||||||||||||||||||||||||||
| (0.51 | ) | — | (0.51 | ) | $ | 9.68 | 8.38 | % | $ | 25,258 | 0.81 | % | 5.32 | % | 38 | % | |||||||||||||||||||
| (0.32 | ) | — | (0.32 | ) | $ | 9.42 | (3.57 | )% | $ | 29,352 | 0.81 | % | 3.23 | % | 41 | % | |||||||||||||||||||
| (0.23 | ) | (0.00 | )(D) | (0.23 | ) | $ | 10.10 | 2.42 | % | $ | 40,035 | 0.81 | % | 2.26 | % | 48 | % | ||||||||||||||||||
| (0.30 | ) | — | (0.30 | ) | $ | 10.09 | 2.87 | % | $ | 47,059 | 0.82 | % | 2.68 | % | 72 | % | |||||||||||||||||||
| (0.38 | ) | (0.00 | )(D) | (0.38 | ) | $ | 10.11 | 4.44 | % | $ | 55,727 | 0.82 | % | 3.72 | % | 54 | % | ||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
| (0.54 | ) | — | (0.54 | ) | $ | 9.69 | 8.91 | % | $ | 1,541,039 | 0.52 | % | 5.63 | % | 38 | % | |||||||||||||||||||
| (0.35 | ) | — | (0.35 | ) | $ | 9.41 | (3.38 | )% | $ | 1,054,124 | 0.52 | % | 3.55 | % | 41 | % | |||||||||||||||||||
| (0.26 | ) | (0.00 | )(D) | (0.26 | ) | $ | 10.10 | 2.74 | % | $ | 1,313,888 | 0.52 | % | 2.50 | % | 48 | % | ||||||||||||||||||
| (0.33 | ) | — | (0.33 | ) | $ | 10.09 | 3.08 | % | $ | 897,232 | 0.53 | % | 2.93 | % | 72 | % | |||||||||||||||||||
| (0.41 | ) | (0.00 | )(D) | (0.41 | ) | $ | 10.12 | 4.85 | % | $ | 525,994 | 0.53 | % | 4.00 | % | 54 | % | ||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
| (0.55 | ) | — | (0.55 | ) | $ | 9.70 | 9.03 | % | $ | 48,045 | 0.40 | % | 5.68 | % | 38 | % | |||||||||||||||||||
| (0.36 | ) | — | (0.36 | ) | $ | 9.42 | (3.27 | )% | $ | 64,761 | 0.40 | % | 3.54 | % | 41 | % | |||||||||||||||||||
| (0.27 | ) | (0.00 | )(D) | (0.27 | ) | $ | 10.11 | 2.85 | % | $ | 144,787 | 0.40 | % | 2.68 | % | 48 | % | ||||||||||||||||||
| (0.34 | ) | — | (0.34 | ) | $ | 10.10 | 3.29 | % | $ | 188,175 | 0.41 | % | 3.09 | % | 72 | % | |||||||||||||||||||
| (0.42 | ) | (0.00 | )(D) | (0.42 | ) | $ | 10.12 | 4.84 | % | $ | 226,938 | 0.41 | % | 4.09 | % | 54 | % | ||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
|
(D) |
Amount is less than $0.005. |
See accompanying Notes to Financial Statements.
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 127 |
Core Bond Fund
Financial Highlights
Selected data for a share outstanding throughout the periods indicated
Core Bond Fund |
Net asset |
Net |
Net realized |
Total from |
||||||||||||
Investor |
||||||||||||||||
For the year ended December 31, 2023 |
$ | 8.92 | 0.38 | 0.16 | 0.54 | |||||||||||
For the year ended December 31, 2022 |
$ | 10.40 | 0.22 | (1.46 | ) | (1.24 | ) | |||||||||
For the year ended December 31, 2021 |
$ | 10.74 | 0.19 | (0.32 | ) | (0.13 | ) | |||||||||
For the year ended December 31, 2020 |
$ | 10.19 | 0.21 | 0.56 | 0.77 | |||||||||||
For the year ended December 31, 2019 |
$ | 9.71 | 0.24 | 0.49 | 0.73 | |||||||||||
|
||||||||||||||||
Class I |
||||||||||||||||
For the year ended December 31, 2023 |
$ | 8.90 | 0.41 | 0.16 | 0.57 | |||||||||||
For the year ended December 31, 2022 |
$ | 10.39 | 0.27 | (1.49 | ) | (1.22 | ) | |||||||||
For the year ended December 31, 2021 |
$ | 10.74 | 0.22 | (0.33 | ) | (0.11 | ) | |||||||||
For the year ended December 31, 2020 |
$ | 10.19 | 0.24 | 0.56 | 0.80 | |||||||||||
For the year ended December 31, 2019 |
$ | 9.71 | 0.26 | 0.50 | 0.76 | |||||||||||
|
||||||||||||||||
Class Y |
||||||||||||||||
For the year ended December 31, 2023 |
$ | 8.91 | 0.42 | 0.15 | 0.57 | |||||||||||
For the year ended December 31, 2022 |
$ | 10.39 | 0.28 | (1.48 | ) | (1.20 | ) | |||||||||
For the year ended December 31, 2021 |
$ | 10.75 | 0.23 | (0.33 | ) | (0.10 | ) | |||||||||
For the year ended December 31, 2020 |
$ | 10.20 | 0.26 | 0.55 | 0.81 | |||||||||||
For the year ended December 31, 2019 |
$ | 9.71 | 0.28 | 0.50 | 0.78 | |||||||||||
|
||||||||||||||||
|
(A) |
Net investment income per share has been calculated using the average daily shares outstanding during the year. |
|
(B) |
Total returns shown exclude the effect of applicable sales charges for years prior to December 31, 2021. |
|
(C) |
Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued. |
See accompanying Notes to Financial Statements.
128 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Dividends |
Distributions |
Total |
Net asset |
Total return(B) |
Net assets, |
Ratio of total |
Ratio of net |
Portfolio |
|||||||||||||||||||||||||||
| (0.37 | ) | — | (0.37 | ) | $ | 9.09 | 6.20 | % | $ | 1,910 | 0.76 | % | 4.25 | % | 20 | % | |||||||||||||||||||
| (0.24 | ) | — | (0.24 | ) | $ | 8.92 | (12.05 | )% | $ | 3,572 | 0.76 | % | 2.36 | % | 40 | % | |||||||||||||||||||
| (0.21 | ) | — | (0.21 | ) | $ | 10.40 | (1.24 | )% | $ | 10,091 | 0.76 | % | 1.78 | % | 37 | % | |||||||||||||||||||
| (0.22 | ) | — | (0.22 | ) | $ | 10.74 | 7.60 | % | $ | 17,024 | 0.76 | % | 1.98 | % | 28 | % | |||||||||||||||||||
| (0.25 | ) | — | (0.25 | ) | $ | 10.19 | 7.63 | % | $ | 3,599 | 0.77 | % | 2.43 | % | 29 | % | |||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
| (0.40 | ) | — | (0.40 | ) | $ | 9.07 | 6.62 | % | $ | 1,369,268 | 0.47 | % | 4.64 | % | 20 | % | |||||||||||||||||||
| (0.27 | ) | — | (0.27 | ) | $ | 8.90 | (11.84 | )% | $ | 526,372 | 0.47 | % | 2.93 | % | 40 | % | |||||||||||||||||||
| (0.24 | ) | — | (0.24 | ) | $ | 10.39 | (0.99 | )% | $ | 330,666 | 0.47 | % | 2.08 | % | 37 | % | |||||||||||||||||||
| (0.25 | ) | — | (0.25 | ) | $ | 10.74 | 7.94 | % | $ | 260,365 | 0.47 | % | 2.28 | % | 28 | % | |||||||||||||||||||
| (0.28 | ) | — | (0.28 | ) | $ | 10.19 | 7.93 | % | $ | 66,174 | 0.48 | % | 2.61 | % | 29 | % | |||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
| (0.41 | ) | — | (0.41 | ) | $ | 9.07 | 6.62 | % | $ | 147,956 | 0.35 | % | 4.77 | % | 20 | % | |||||||||||||||||||
| (0.28 | ) | — | (0.28 | ) | $ | 8.91 | (11.63 | )% | $ | 58,932 | 0.35 | % | 2.94 | % | 40 | % | |||||||||||||||||||
| (0.26 | ) | — | (0.26 | ) | $ | 10.39 | (0.95 | )% | $ | 58,668 | 0.35 | % | 2.21 | % | 37 | % | |||||||||||||||||||
| (0.26 | ) | — | (0.26 | ) | $ | 10.75 | 8.04 | % | $ | 59,856 | 0.35 | % | 2.46 | % | 28 | % | |||||||||||||||||||
| (0.29 | ) | — | (0.29 | ) | $ | 10.20 | 8.15 | % | $ | 52,275 | 0.36 | % | 2.83 | % | 29 | % | |||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 129 |
Diamond Hill Funds
Notes to Financial Statements
December 31, 2023
Organization
The Diamond Hill Small Cap Fund (“Small Cap Fund”), Diamond Hill Small-Mid Cap Fund (“Small-Mid Cap Fund”), Diamond Hill Mid Cap Fund (“Mid Cap Fund”), Diamond Hill Large Cap Fund (“Large Cap Fund”), Diamond Hill Large Cap Concentrated Fund (“Large Cap Concentrated Fund”), Diamond Hill Select Fund (“Select Fund”), Diamond Hill Long-Short Fund (“Long-Short Fund”), Diamond Hill International Fund (“International Fund”), Diamond Hill Short Duration Securitized Bond Fund (“Short Duration Fund”) and Diamond Hill Core Bond Fund (“Core Bond Fund”) are each a diversified series, except for Select Fund and Large Cap Concentrated Fund which are non-diversified, of the Diamond Hill Funds (the “Trust”) (each a “Fund” and collectively the “Funds”). The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management company. Each Fund follows accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, “Financial Services – Investment Companies.”
All Funds currently offer three classes of shares: Investor, Class I and Class Y. Each class of shares for each Fund has identical rights and privileges except with respect to distribution (12b-1) and service fees, voting rights on matters affecting a single class of shares, exchange privileges of each class of shares.
Regulatory Update
Tailored Shareholder Reports for Mutual Funds and Exchange-Traded Funds (“ETFs”) – Effective January 24, 2023, the Securities and Exchange Commission (the “SEC”) adopted rule and form amendments to require mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these amendments on the shareholder reports for the Funds.
Significant Accounting Policies
The following is a summary of the Funds’ significant accounting policies:
Estimates — The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Security valuation — The Funds record their investments at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The valuation
130 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2023
techniques used by the Funds maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. These inputs are summarized in the three broad levels listed below:
|
● |
Level 1 — quoted prices in active markets for identical securities |
|
● |
Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
|
● |
Level 3 — significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments) |
Listed securities for which market quotations are readily available are valued at the closing prices as determined by the primary exchange where the securities are traded. Unlisted securities or listed securities for which the latest sales price are not readily available are valued at the closing bid (long positions) or ask (short positions) price in the principal market where such securities are normally traded. Investments in other open-end investment companies are valued at their reported net asset value (“NAV”) per share. In each of these situations, valuations are typically categorized as Level 1 in the fair value hierarchy.
Debt securities are valued on the basis of valuations provided by dealers or by an independent pricing service which take into account appropriate factors such as trading activity (i.e., market transactions for normal, institutional-size trading units of similar securities), readily available market quotations (including broker quotes), yield, quality, coupon rate, maturity, type of issue, trading characteristic, call features, credit ratings and other data. Short-term debt investments of sufficient credit quality maturing in less than 61 days may be valued at amortized cost, if amortized cost is determined to approximate fair value. In each of these situations, valuations are typically categorized as Level 2 in the fair value hierarchy.
Securities for which market quotations are not readily available (e.g., an approved pricing service does not provide a price, a price becomes stale, or an event occurs that materially affects the furnished price) are valued by the Valuation & Liquidity Committee of Diamond Hill Capital Management, Inc. (“DHCM” or the “Adviser”). In these cases, the Valuation & Liquidity Committee, established and appointed by the Board of Trustees, determines in good faith, subject to Trust procedures, the fair value of portfolio securities held by a Fund (“good faith fair valuation”) pursuant to Rule 2a-5 under the 1940 Act. When a good faith fair valuation of a security is required, consideration is generally given to a number of factors, including, but not limited to the following: dealer quotes, published analyses by dealers or analysts of the situation at issue, transactions implicitly valuing the security (such as a merger, tender offer, etc.), the value of other securities or contracts which derive their value from the security at issue, and the implications (whether negative or positive) of the circumstances which have caused trading in the security to halt. Depending on the source and relative significance of the valuation inputs in these instances, the valuations for these securities may be classified as Level 2 or Level 3 in the fair value hierarchy.
In accordance with procedures adopted by the Trust’s Board of Trustees, fair value pricing may be used if events materially affecting the value of foreign equity securities occur between the time the exchange on which they are traded closes and the time the Funds’ NAVs are
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 131 |
Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2023
calculated. The Funds use a systematic valuation model, provided daily by an independent third party, to fair value their international equity securities. These valuations are considered as Level 2 in the fair value hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. For example, short-term debt securities of sufficient credit quality maturing in less than 61 days may be valued using amortized cost in accordance with rules under the 1940 Act. Generally, amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, such securities are reflected as Level 2. The following is a summary of the Funds’ investments and the inputs used to value the investments as of December 31, 2023:
Level 1 - |
Level 2 - Other |
Level 3 - |
Total |
|||||||||||||
Investments in Securities (Assets) |
||||||||||||||||
Small Cap Fund |
||||||||||||||||
Common Stocks* |
$ | 228,848,268 | $ | — | $ | — | $ | 228,848,268 | ||||||||
Registered Investment Companies |
10,460,476 | — | — | 10,460,476 | ||||||||||||
Total |
$ | 239,308,744 | $ | — | $ | — | $ | 239,308,744 | ||||||||
Small-Mid Cap Fund |
||||||||||||||||
Common Stocks* |
$ | 1,558,514,794 | $ | — | $ | — | $ | 1,558,514,794 | ||||||||
Registered Investment Companies |
82,951,308 | — | — | 82,951,308 | ||||||||||||
Total |
$ | 1,641,466,102 | $ | — | $ | — | $ | 1,641,466,102 | ||||||||
Mid Cap Fund |
||||||||||||||||
Common Stocks* |
$ | 157,094,289 | $ | — | $ | — | $ | 157,094,289 | ||||||||
Registered Investment Companies |
5,403,658 | — | — | 5,403,658 | ||||||||||||
Total |
$ | 162,497,947 | $ | — | $ | — | $ | 162,497,947 | ||||||||
Large Cap Fund |
||||||||||||||||
Common Stocks* |
$ | 8,226,682,532 | $ | — | $ | — | $ | 8,226,682,532 | ||||||||
Registered Investment Companies |
309,841,603 | — | — | 309,841,603 | ||||||||||||
Total |
$ | 8,536,524,135 | $ | — | $ | — | $ | 8,536,524,135 | ||||||||
Large Cap Concentrated Fund |
||||||||||||||||
Common Stocks* |
$ | 26,981,693 | $ | — | $ | — | $ | 26,981,693 | ||||||||
Registered Investment Companies |
645,899 | — | — | 645,899 | ||||||||||||
Total |
$ | 27,627,592 | $ | — | $ | — | $ | 27,627,592 | ||||||||
Select Fund |
||||||||||||||||
Common Stocks* |
$ | 454,453,012 | $ | — | $ | — | $ | 454,453,012 | ||||||||
Registered Investment Companies |
29,882,370 | — | — | 29,882,370 | ||||||||||||
Total |
$ | 484,335,382 | $ | — | $ | — | $ | 484,335,382 | ||||||||
132 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2023
Level 1 - |
Level 2 - Other |
Level 3 - |
Total |
|||||||||||||
Long-Short Fund |
||||||||||||||||
Common Stocks* |
$ | 1,551,490,461 | $ | — | $ | — | $ | 1,551,490,461 | ||||||||
Treasury |
— | 118,485,937 | — | 118,485,937 | ||||||||||||
Registered Investment Companies |
326,199,284 | — | — | 326,199,284 | ||||||||||||
Total |
$ | 1,877,689,745 | $ | 118,485,937 | $ | — | $ | 1,996,175,682 | ||||||||
International Fund |
||||||||||||||||
Common Stocks |
$ | 31,515,987 | $ | 71,212,378 | $ | — | $ | 102,728,365 | ||||||||
Registered Investment Companies |
10,621,874 | — | — | 10,621,874 | ||||||||||||
Total |
$ | 42,137,861 | $ | 71,212,378 | $ | — | $ | 113,350,239 | ||||||||
Short Duration Fund |
||||||||||||||||
Corporate Credit* |
$ | — | $ | 80,567,135 | $ | — | $ | 80,567,135 | ||||||||
Securitized* |
— | 1,395,909,547 | — | 1,395,909,547 | ||||||||||||
Treasury |
— | 59,574,007 | — | 59,574,007 | ||||||||||||
Registered Investment Companies |
80,370,662 | — | — | 80,370,662 | ||||||||||||
Total |
$ | 80,370,662 | $ | 1,536,050,689 | $ | — | $ | 1,616,421,351 | ||||||||
Core Bond Fund |
||||||||||||||||
Corporate Credit* |
$ | — | $ | 236,183,652 | $ | — | $ | 236,183,652 | ||||||||
Government Related* |
— | 975,486 | — | 975,486 | ||||||||||||
Securitized* |
— | 938,842,688 | — | 938,842,688 | ||||||||||||
Treasury |
— | 262,762,856 | — | 262,762,856 | ||||||||||||
Registered Investment Companies |
89,572,525 | — | — | 89,572,525 | ||||||||||||
Total |
$ | 89,572,525 | $ | 1,438,764,682 | $ | — | $ | 1,528,337,207 | ||||||||
Investments in Securities Sold Short: (Liabilities) |
||||||||||||||||
Long-Short Fund |
||||||||||||||||
Common Stocks* |
$ | (549,808,718 | ) | $ | — | $ | — | $ | (549,808,718 | ) | ||||||
Total |
$ | (549,808,718 | ) | $ | — | $ | — | $ | (549,808,718 | ) | ||||||
|
* |
See Schedule of Investments and Schedule of Investments Sold Short for industry classification. |
There were no transfers into or out of Level 3 for the year ended December 31, 2023.
Short sales — The Long-Short Fund and International Fund are permitted to make short sales of securities. Short sales are effective when it is believed that the price of a particular security will decline and involves the sale of a security that a Fund does not own in hope of purchasing the same security at a later date at a lower price. To make delivery to the buyer, a Fund must borrow the security, and the Fund is obligated to return the security to the lender, which is accomplished by a later purchase of the security by the Fund. Cash received from short sales and other liquid securities are maintained by the custodian and are used as collateral. Cash collateral is shown as “Cash deposits with custodian for securities sold short” on the Statements of Assets & Liabilities and “Segregated Cash With Custodian” on the Schedules of Investments. Liquid securities pledged as collateral are noted on the Schedules of Investments.
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 133 |
Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2023
A Fund will incur a loss as a result of a short sale if the price of the security increases between the date of the short sale and the date on which the Fund purchases the security to replace the borrowed security. Although a Fund’s gain is limited to the amount at which it sold a security short, its potential loss is not limited. The use of short sales may cause a Fund to have higher expenses (specifically dividend expenses) than those of other equity mutual funds. Short sales are speculative transactions and involve special risks, including greater reliance on the ability of the DHCM to accurately anticipate the future value of a security.
A Fund may also incur stock loan fees which represent the cost of borrowing securities used for short sale transactions. A Fund may also earn rebates as an element of the custodian arrangement, which are recorded as an offset to stock loan fees on short sales transactions. The stock loan fees on short sales are recognized on the Statements of Operations. In the event that rebates exceed the stock loan fees on short sales, the net rebates are recognized as a component of investment income on the Statements of Operations.
Securities lending — Under the terms of the securities lending agreement with State Street Bank and Trust Company (“State Street”), State Street is authorized to loan securities on behalf of the Funds to approved borrowers. The contractual maturity of securities lending transactions is on an overnight and continuous basis. In exchange, the Funds receive cash and/or U.S. Treasury and government agency securities as collateral in the amount of at least 100% of the value of the securities loaned. Any collateral shortfalls due to changes in security market prices are adjusted the next business day. The cash collateral is invested in short-term instruments as noted in each Fund’s Schedule of Investments. Although risk is mitigated by the collateral, the Funds could experience a delay in recovering their securities and possible loss of income or value if the borrower fails to return them. The agreement indemnifies the Funds from losses incurred in the event of a borrower’s material default of the terms and conditions of the borrower agreement. The agreement provides that after predetermined rebates to borrowers, the Funds each retain a portion of their respective net securities lending income and pay State Street the remaining portion. The Funds manage credit exposure arising from these lending transactions by, in appropriate circumstances, entering into a master netting agreement and collateral agreement with State Street that provide the Funds, in the event of default (such as bankruptcy or borrower’s failure to pay or perform), the right to net rights and obligations under such agreements and liquidate and set off collateral against the net amount owed to the Funds.
134 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2023
As of December 31, 2023, the fair value of securities on loan and the collateral held were as follows:
Fair Value of Collateral |
||||||||||||||||
Fair Value of |
Cash Collateral |
Non-Cash |
Total Collateral |
|||||||||||||
Small Cap Fund |
$ | 15,076,383 | $ | 8,053,607 | $ | 7,718,930 | $ | 15,772,537 | ||||||||
Small-Mid Cap Fund |
89,549,909 | 25,514,808 | 67,378,542 | 92,893,350 | ||||||||||||
Mid Cap Fund |
1,881,876 | 144,631 | 1,819,365 | 1,963,996 | ||||||||||||
Large Cap Fund |
143,445,951 | 128,365,754 | 18,324,750 | 146,690,504 | ||||||||||||
Large Cap Concentrated Fund |
— | — | — | — | ||||||||||||
Select Fund |
14,393,123 | 14,423,487 | 688,327 | 15,111,814 | ||||||||||||
Long-Short Fund |
291,485,958 | 298,725,470 | — | 298,725,470 | ||||||||||||
International Fund |
4,818,292 | 4,326,627 | 745,171 | 5,071,798 | ||||||||||||
Short Duration Fund |
21,102,307 | 17,631,750 | 12,204,575 | 29,836,325 | ||||||||||||
Core Bond Fund |
29,132,594 | 15,082,372 | 14,954,753 | 30,037,125 | ||||||||||||
|
* |
These securities are held for the benefit of the Funds at the Funds’ custodian. The Funds cannot repledge or resell this collateral. As such, collateral is excluded from the Statements of Assets & Liabilities. |
Security transactions — Throughout the reporting period, investment transactions are generally recorded on trade date but no later than the first business day following trade date. For financial reporting purposes, investments are recorded on trade date. The specific identification method is used for determining realized gains or losses for financial statements and income tax purposes. Dividend income and expense are recognized on the ex-dividend date and interest income is recognized on an accrual basis. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Taxes on foreign dividends and/or capital gains have been recorded for in accordance with the Funds’ understanding of the applicable country’s tax rules and rates. Discounts and premiums on securities purchased are amortized using the daily effective yield method and included in interest income. The Funds record distributions received from investments in real estate investment trusts (also known as “REITs”) and partnerships in excess of income from underlying investments as a reduction of cost of investments and/or realized gain. Such amounts are based on estimates if actual amounts are not available, and actual amounts of income, realized gain and return of capital may differ from the estimated amounts. The Funds adjust the estimated amounts once the issuers provide information about the actual composition of the distributions. Interest only stripped mortgage-backed securities (“IO Strips”) are securities that receive only interest payments from a pool of mortgage loans. Little to no principal will be received by the Funds upon maturity of an IO Strip. Periodic adjustments are recorded to reduce the cost of the security until maturity, which are included in interest income.
Share valuation — The NAV per share of each class of shares of each Fund is calculated daily by dividing the total value of a Fund’s assets attributable to that class, less liabilities attributable to that class, by the number of shares of that class outstanding.
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 135 |
Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2023
Income taxes — The Funds may be subject to taxes imposed by countries in which they invest. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and unrealized appreciation as such income and/or gains are earned.
Each Fund has complied and intends to continue to comply with the requirements of the Internal Revenue Code that are applicable to regulated investment companies and to distribute substantially all of its taxable net investment income and any net realized capital gains to its shareholders.
The Funds recognize tax benefits or expenses of uncertain tax positions only when the position is “more likely than not” to be sustained assuming examination by tax authorities. Management of the Funds has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the previous three tax year ends and the interim tax period since then, as applicable), and has concluded that no provision for unrecognized tax benefits or expenses is required in these financial statements and does not expect this to change over the next twelve months. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense on the Statements of Operations. During the year ended December 31, 2023, the Funds did not incur any interest or penalties.
Distributions to shareholders — Dividends from net investment income are declared and paid monthly for the Short Duration Fund and Core Bond Fund. Dividends from net investment income are declared and paid on an annual basis for the Small Cap Fund, Small-Mid Cap Fund, Mid Cap Fund, Large Cap Fund, Large Cap Concentrated Fund, Select Fund, Long-Short Fund and International Fund. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share rates are due to differences in the expenses of each class. Net realized capital gains, if any, are distributed at least annually. Distributions from net investment income and from net capital gains are determined in accordance with U.S. income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatments for paydown gains and losses on mortgage-backed securities and deferrals of certain losses. Permanent book and tax basis differences are reclassified among the components of net assets. Certain Funds may utilize earnings and profits distributed to shareholders on redemption of shares as part of the dividends paid deduction for income tax purposes.
Allocations — Investment income earned, realized capital gains and losses, and unrealized appreciation and depreciation are allocated daily to each class of shares of a Fund based upon its proportionate share of total net assets of the Fund. Class specific expenses are charged directly to the class incurring the expense. Common expenses, which are not attributable to a specific class, are allocated daily to each class of shares based upon its proportionate share of total net assets of the Fund. Expenses not directly billed to a Fund are allocated proportionally among all Funds daily in relation to net assets of each Fund or another reasonable measure.
136 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2023
Foreign securities risk — Investing in non-U.S. securities may entail risk due to foreign economic and political developments; this risk may be higher when investing in emerging markets. Changes in currency exchange rates and differences in accounting and taxation policies outside the U.S. can raise or lower returns.
Foreign currency translation — The books and records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars on the date of valuation. The Funds do not isolate that portion of realized or unrealized gains and losses resulting from changes in the foreign exchange rate from fluctuations arising from changes in the market prices of the securities. These gains and losses are included in net realized and unrealized gains (losses) on investments on the Statements of Operations. Net realized and unrealized gains (losses) on foreign currency transactions represent net foreign exchange gains or losses from foreign currency exchange contracts, disposition of foreign currencies, currency gains or losses realized between trade and settlement dates on securities transactions and the difference between the amount of the investment income and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent amounts actually received or paid.
Investment Transactions
For the year ended December 31, 2023, purchases and sales (including maturities) of investment securities (excluding short-term securities, U.S. government obligations and in-kind transactions) were as follows:
Purchases |
Sales |
|||||||
Small Cap Fund |
$ | 112,211,683 | $ | 217,755,017 | ||||
Small-Mid Cap Fund |
289,385,429 | 568,513,722 | ||||||
Mid Cap Fund |
35,142,164 | 75,257,523 | ||||||
Large Cap Fund |
1,814,294,248 | 2,940,239,622 | ||||||
Large Cap Concentrated Fund |
9,050,671 | 8,249,273 | ||||||
Select Fund |
248,481,366 | 222,056,469 | ||||||
Long-Short Fund |
649,704,317 | 825,798,922 | ||||||
International Fund |
55,352,301 | 13,810,280 | ||||||
Short Duration Fund |
783,169,197 | 448,654,575 | ||||||
Core Bond Fund |
818,603,589 | 182,531,866 | ||||||
For the year ended December 31, 2023, purchases and sales (including maturities) of U.S. government long-term securities were as follows:
Purchases |
Sales |
|||||||
Short Duration Fund |
$ | 20,217,129 | $ | 34,724,023 | ||||
Core Bond Fund |
181,363,591 | 8,892,134 | ||||||
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 137 |
Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2023
The Funds pay commissions on the purchase and sale of investment securities. The commissions are treated as transaction costs and, therefore, are included as part of the cost of purchases or net proceeds on the sale of investment securities and are not included in the presentation of Fund expenses on the Statements of Operations. The Funds paid the following commissions during the year ended December 31, 2023:
Total |
Commissions |
|||||||
Small Cap Fund |
$ | 223,935 | 0.08 | % | ||||
Small-Mid Cap Fund |
404,863 | 0.02 | % | |||||
Mid Cap Fund |
42,892 | 0.03 | % | |||||
Large Cap Fund |
1,243,902 | 0.02 | % | |||||
Large Cap Concentrated Fund |
5,273 | 0.02 | % | |||||
Select Fund |
214,325 | 0.06 | % | |||||
Long-Short Fund |
498,116 | 0.03 | % | |||||
International Fund |
88,305 | 0.13 | % | |||||
Investment Advisory Fees and Other Transactions with Affiliates
As of December 31, 2023, the Small Cap Fund, Small-Mid Cap Fund, Mid Cap Fund, Large Cap Fund, Large Cap Concentrated Fund, Select Fund, Long-Short Fund, International Fund, Short Duration Fund and Core Bond Fund each receive investment management and advisory services from DHCM under management agreements that provide for fees to be paid monthly at an annual rate of 0.80%, 0.75%, 0.60%, 0.50%, 0.50%, 0.70%, 0.90%, 0.65%, 0.35% and 0.30%, respectively, of each Fund’s average daily net assets. The management agreements are subject to annual approval by the Board of Trustees. In addition, each Fund has entered into an administrative services agreement whereby DHCM is paid a fee monthly at an annual rate of 0.21% for Investor shares, 0.17% for Class I shares and 0.05% for Class Y shares of each class’ average daily net assets. These administrative fees are used to pay most of the Funds’ operating expenses except advisory fees, distribution fees, custody fees, brokerage fees, taxes, interest and dividend expense on securities sold short and extraordinary expenses.
Pursuant to Rule 12b-1 under the 1940 Act, the Trust has adopted a distribution plan on behalf of each Fund’s Investor shares (the “Plan”). Under the Plan, Investor shares pay a distribution fee monthly at an annual rate of 0.25% of Investor shares’ average daily net assets. Class I and Class Y shares are not subject to any distribution fees. The Trust has entered into a Distribution Agreement on behalf of the Funds with Foreside Financial Services, LLC (“Distributor”). Pursuant to the Distribution Agreement, the Distributor acts as principal underwriter of each Fund’s shares.
138 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2023
The Funds may invest in one or more Diamond Hill Funds. The Funds’ Adviser has contractually agreed to waive fees in the pro-rata amount of the management fee charged by the underlying Diamond Hill Fund on each Fund’s investment in such other Diamond Hill Funds. This fee waiver is accrued daily and settled monthly. During the year ended December 31, 2023, the Funds reduced investment advisory fees as follows:
Small-Mid Cap Fund |
$ | 31,811 |
The Small-Mid Cap Fund owned Class Y shares of the Short Duration Fund, thereby making the Short Duration Fund an affiliated company as defined by the 1940 Act.
Information regarding the Fund’s holdings in the Short Duration Fund during the year ended December 31, 2023 is as follows:
Affiliated Fund |
Small-Mid |
|||
Diamond Hill Short Duration Securitized Bond Fund |
||||
Value, December 31, 2022 |
$ | 8,793,801 | ||
Purchases |
523,347 | |||
Change in Unrealized Appreciation (Depreciation) |
270,673 | |||
Value, December 31, 2023 |
$ | 9,587,821 | ||
Income Distributions |
$ | 523,347 | ||
DHCM is a beneficial shareholder of the Large Cap Concentrated and International Funds.
The Officers of the Trust are affiliated with DHCM. Such Officers receive no compensation from the Funds for serving in their respective roles.
Trustee Fees
The Independent Trustees are compensated for their services to the Funds by DHCM as part of the administration services agreement. The Independent Trustees were paid $652,000 in fees during the year ended December 31, 2023. In addition, DHCM reimburses Trustees for out-of-pocket expenses incurred in conjunction with attendance of meetings.
Commitments and Contingencies
The Funds indemnify the Trust’s Officers and Trustees for certain liabilities that might arise from their performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties and provides general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 139 |
Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2023
Federal Tax Information
The amount and character of income and capital gain distributions paid by the Funds are determined in accordance with Federal income tax regulations, which may differ from GAAP.
The tax character of distributions paid during the years ended December 31, 2023 and 2022 was as follows:
Small Cap Fund |
Small-Mid Cap Fund |
Mid Cap Fund |
||||||||||||||||||||||
December 31, |
December 31, |
December 31, |
December 31, |
December 31, |
December 31, |
|||||||||||||||||||
Distributions paid from: |
||||||||||||||||||||||||
Ordinary income |
$ | 6,445,738 | $ | 2,358,710 | $ | 20,701,817 | $ | 16,229,414 | $ | 1,449,348 | $ | 1,691,702 | ||||||||||||
Long-term capital gains |
54,244,792 | 43,490,416 | 11,826,150 | 81,422,301 | 3,514,875 | 7,788,182 | ||||||||||||||||||
Total distributions |
$ | 60,690,530 | $ | 45,849,126 | $ | 32,527,967 | $ | 97,651,715 | $ | 4,964,223 | $ | 9,479,884 | ||||||||||||
Large Cap Fund |
Large Cap Concentrated |
Select Fund |
||||||||||||||||||||||
December 31, |
December 31, |
December 31, |
December 31, |
December 31, |
December 31, |
|||||||||||||||||||
Distributions paid from: |
||||||||||||||||||||||||
Ordinary income |
$ | 121,668,987 | $ | 123,521,422 | $ | 384,387 | $ | 275,809 | $ | 2,215,170 | $ | 793,086 | ||||||||||||
Long-term capital gains |
190,051,996 | 421,831,932 | — | — | 285,118 | 12,904,778 | ||||||||||||||||||
Total distributions |
$ | 311,720,983 | $ | 545,353,354 | $ | 384,387 | $ | 275,809 | $ | 2,500,288 | $ | 13,697,864 | ||||||||||||
Long-Short Fund |
International Fund |
Short Duration Fund |
||||||||||||||||||||||
December 31, |
December 31, |
December 31, |
December 31, |
December 31, |
December 31, |
|||||||||||||||||||
Distributions paid from: |
||||||||||||||||||||||||
Ordinary income |
$ | 38,224,569 | $ | 11,400,637 | $ | 1,188,370 | $ | 736,811 | $ | 79,182,219 | $ | 48,069,516 | ||||||||||||
Long-term capital gains |
32,515,724 | 77,970,126 | — | 133,991 | — | — | ||||||||||||||||||
Total distributions |
$ | 70,740,293 | $ | 89,370,763 | $ | 1,188,370 | $ | 870,802 | $ | 79,182,219 | $ | 48,069,516 | ||||||||||||
Core Bond Fund |
||||||||
December 31, |
December 31, |
|||||||
Distributions paid from: |
||||||||
Ordinary income |
$ | 46,509,317 | $ | 14,947,263 | ||||
Long-term capital gains |
— | — | ||||||
Total distributions |
$ | 46,509,317 | $ | 14,947,263 | ||||
140 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2023
The following information was computed on a tax basis for each item as of December 31, 2023:
Small Cap |
Small-Mid |
Mid Cap |
Large Cap |
|||||||||||||
Net unrealized appreciation on investments |
$ | 93,592,695 | $ | 429,575,493 | $ | 53,762,707 | $ | 2,072,052,862 | ||||||||
Undistributed ordinary income |
1,433,701 | — | — | 1,038,721 | ||||||||||||
Undistributed capital gains |
6,945,837 | — | 1,647,212 | 50,625,696 | ||||||||||||
Post October capital losses |
— | (771,433 | ) | — | — | |||||||||||
Distributable earnings |
$ | 101,972,233 | $ | 428,804,060 | $ | 55,409,919 | $ | 2,123,717,279 | ||||||||
Large Cap |
Select |
Long-Short |
International |
|||||||||||||
Net unrealized appreciation on investments |
$ | 4,169,812 | $ | 138,773,350 | $ | 582,399,089 | $ | 6,490,567 | ||||||||
Undistributed ordinary income |
292 | 312,616 | 19,563 | 95,640 | ||||||||||||
Undistributed capital gains |
— | 3,031,983 | 6,582,557 | — | ||||||||||||
Accumulated capital and other losses |
(784,029 | ) | — | — | (1,317,463 | ) | ||||||||||
Distributable earnings |
$ | 3,386,075 | $ | 142,117,949 | $ | 589,001,209 | $ | 5,268,744 | ||||||||
Short |
Core Bond |
|||||||
Net unrealized depreciation on investments |
$ | (33,623,161 | ) | $ | (35,391,143 | ) | ||
Accumulated capital and other losses |
(17,123,788 | ) | (14,744,170 | ) | ||||
Accumulated deficit |
$ | (50,746,949 | ) | $ | (50,135,313 | ) | ||
As of December 31, 2023, the Funds’ federal tax cost of investments and net unrealized appreciation (depreciation) on investments including short sales, where applicable, were as follows:
Small Cap |
Small-Mid |
Mid Cap |
Large Cap |
|||||||||||||
Tax cost of investments |
$ | 145,716,049 | $ | 1,211,890,609 | $ | 108,735,240 | $ | 6,464,471,273 | ||||||||
Gross unrealized appreciation |
95,603,245 | 503,513,709 | 56,340,542 | 2,215,840,005 | ||||||||||||
Gross unrealized depreciation |
(2,010,550 | ) | (73,938,216 | ) | (2,577,835 | ) | (143,787,143 | ) | ||||||||
Net unrealized appreciation on investments |
$ | 93,592,695 | $ | 429,575,493 | $ | 53,762,707 | $ | 2,072,052,862 | ||||||||
Large Cap |
Select |
Long-Short |
International |
|||||||||||||
Tax cost of investments |
$ | 23,457,780 | $ | 345,562,032 | $ | 863,967,875 | $ | 106,859,672 | ||||||||
Gross unrealized appreciation |
4,653,413 | 144,609,701 | 660,847,045 | 12,523,419 | ||||||||||||
Gross unrealized depreciation |
(483,601 | ) | (5,836,351 | ) | (78,447,956 | ) | (6,032,852 | ) | ||||||||
Net unrealized appreciation on investments |
$ | 4,169,812 | $ | 138,773,350 | $ | 582,399,089 | $ | 6,490,567 | ||||||||
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 141 |
Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2023
Short |
Core Bond |
|||||||
Tax cost of investments |
$ | 1,650,044,512 | $ | 1,563,728,350 | ||||
Gross unrealized appreciation |
23,193,303 | 23,080,484 | ||||||
Gross unrealized depreciation |
(56,816,464 | ) | (58,471,627 | ) | ||||
Net unrealized depreciation on investments |
$ | (33,623,161 | ) | $ | (35,391,143 | ) | ||
The difference between book basis and tax basis net unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales and Passive Foreign Investment Companies.
For the latest tax year ended December 31, 2023, the following Funds have capital loss carry forwards (“CLCFs”) as summarized below.
CLCFs not subject to expiration:
Large Cap |
International |
Short |
||||||||||
No expiration - short-term |
$ | 435,060 | $ | 1,202,402 | $ | 3,594,658 | ||||||
No expiration - long-term |
348,969 | 115,061 | 13,529,130 | |||||||||
| $ | 784,029 | $ | 1,317,463 | $ | 17,123,788 | |||||||
Core Bond |
||||
No expiration - short-term |
$ | 4,254,177 | ||
No expiration - long-term |
10,489,993 | |||
| $ | 14,744,170 | |||
During the year ended December 31, 2023, International Fund utilized $71,857 of short-term CLCFs and Short Duration Fund utilized $893,753 of short-term CLCFs to offset current year gains.
142 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2023
Reclassifications of capital accounts – Reclassifications result primarily from utilization of earnings and profits on shareholder redemptions and redemption in-kind. The following reclassifications have no impact to the net assets or NAV per share of the Funds and are designed to present each Fund’s capital accounts on a tax basis:
Paid-In |
Distributable |
|||||||
Small Cap Fund |
$ | 20,528,342 | $ | (20,528,342 | ) | |||
Small-Mid Cap Fund |
87,688,635 | (87,688,635 | ) | |||||
Mid Cap Fund |
984,829 | (984,829 | ) | |||||
Large Cap Fund |
32,089,700 | (32,089,700 | ) | |||||
Large Cap Concentrated Fund |
— | — | ||||||
Select Fund |
162,782 | (162,782 | ) | |||||
Long-Short Fund |
5,350,911 | (5,350,911 | ) | |||||
International Fund |
— | — | ||||||
Short Duration Fund |
(69,068 | ) | 69,068 | |||||
Core Bond Fund |
(132,867 | ) | 132,867 | |||||
In-Kind Redemption Transactions
During the year ended December 31, 2023, Small-Mid Cap Fund realized $68,588,589 of net capital gains resulting from in-kind redemptions (redemptions in which shareholders who redeemed Fund shares received investment securities held by a Fund rather than cash). The Fund recognizes a gain on in-kind redemptions to the extent that the value of the distributed investment securities on the date of redemption exceeds the cost of those investment securities. Such gains are not taxable to the Fund and are not required to be distributed to shareholders. The Fund has reclassified this amount against paid-in capital on the Statements of Assets and Liabilities. Such reclassification, the result of permanent differences between the financial statement and income tax reporting requirements, had no effect on the Fund’s net assets or NAV per share.
Borrowings
The Small Cap Fund, Small-Mid Cap Fund, Mid Cap Fund, Large Cap Fund, Large Cap Concentrated Fund, Select Fund, Long-Short Fund, International Fund, Short Duration Fund and Core Bond Fund each has an unsecured line of credit up to 20.0%, 20.0%, 20.0%, 33.3%, 20.0%, 25.0%, 15.0%, 20.0%, 20.0% and 20.0%, respectively, of its net assets, with a total maximum of $40,000,000.
Borrowings under the agreement bear interest at the sum of 0.10% plus the higher of Federal Funds Effective Rate or the Overnight Bank Funding Rate plus 1.25%. The line of credit is available until May 29, 2024, unless extended, when any advances are to be repaid. During the year ended December 31, 2023, no amounts were drawn from the available line.
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 143 |
Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2023
In accordance with an exemptive order (the “Order”) from the U.S. Securities and Exchange Commission (“SEC”), the Funds may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by each Fund’s investment policies and restrictions. A lending fund may lend in aggregate up to 15% of its net assets, but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing fund may not borrow through the Interfund Lending Program or from any other source more than 33 1/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board. The Funds had no outstanding interfund loans as of December 31, 2023. During the year ended December 31, 2023, the following Funds participated as lenders/borrowers in the Interfund Lending Program and the activity was as follows:
Fund |
Average Loan |
Average |
Number |
Interest |
||||||||||||
Mid Cap Fund (borrower) Short Duration Fund (lender) |
$ | 16,000,000 | 5.48 | % | 1 | $ | 2,436 | |||||||||
|
* |
Included in Interest/Other fees on the Statements of Operations. |
Other Matters
Pandemics and other wide-spread public health events can result in significant disruptions to economies and markets, adversely impacting individual companies, sectors, industries, currencies, interest and inflation rates, credit ratings, and investor sentiment. The duration and extent of such events cannot be reasonably estimated. Governmental responses to these events may negatively impact the capabilities of the Funds’ service providers and disrupt the Funds’ operations. These events may result in substantial market volatility and may adversely impact the prices and liquidity of a Fund’s investments.
Subsequent Events
The Funds evaluated events from December 31, 2023 through the date that these financial statements were issued. There were no subsequent events to report that would have a material impact on the Funds’ financial statements.
144 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Report of Independent Registered
Public Accounting Firm
To the Shareholders and Board of Trustees of
Diamond Hill Funds
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Diamond Hill Funds comprising the funds listed below (the “Funds”) as of December 31, 2023, the related statements of operations and changes in net assets, the related notes, and the financial highlights for each of the years or periods indicated below (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of December 31, 2023, the results of their operations, the changes in net assets, and the financial highlights for each of the years or periods indicated below in conformity with accounting principles generally accepted in the United States of America.
Fund Name |
Statements of |
Statements of |
Financial Highlights |
Diamond Hill Small Cap Fund, Diamond Hill Small-Mid Cap Fund, Diamond Hill Mid Cap Fund, Diamond Hill Large Cap Fund, Diamond Hill Select Fund Diamond Hill Long-Short Fund, Diamond Hill Short Duration Securitized Bond Fund, and Diamond Hill Core Bond Fund |
For the year ended December 31, 2023 |
For the years ended December 31, 2023 and 2022 |
For the years ended December 31, 2023, 2022, 2021, 2020, and 2019 |
Diamond Hill International Fund |
For the year ended December 31, 2023 |
For the years ended December 31, 2023 and 2022 |
For the years ended December 31, 2023, 2022, 2021, 2020, and for the period from July 1, 2019 (commencement of operations) through December 31, 2019 |
Diamond Hill Large Cap Concentrated Fund |
For the year ended December 31, 2023 |
For the years ended December 31, 2023 and 2022 |
For the years ended December 31, 2023, 2022, and for the period from February 26, 2021 (commencement of operations) through December 31, 2021 |
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 145 |
Report of Independent Registered
Public Accounting Firm (Continued)
Basis for Opinion
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2023, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more funds advised by Diamond Hill Capital Management, Inc. since 2015.
COHEN & COMPANY, LTD.
Cleveland, Ohio
February 16, 2024
146 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Funds
Other Items
December 31, 2023
Proxy Voting
The investment Adviser is responsible for exercising the voting rights associated with the securities purchased and held by the Funds. A description of the policies and procedures that the Adviser uses in fulfilling this responsibility and information regarding how those proxies were voted during the twelve-month period ended June 30 are available without charge upon request by calling toll free number 1-888-226-5595, or through the Funds’ website, or on the Securities and Exchange Commission’s (“Commission”) website at www.sec.gov.
Portfolio Disclosure
The Trust files a complete listing of portfolio holdings for each Fund as of the end of the first and third quarters of each fiscal year on Part F to Form N-PORT. The complete listing is available on the Commission’s website. Monthly portfolio holdings are also available on www.diamond-hill.com.
Dividends Received Deduction
For corporate shareholders, the following percentages of ordinary dividends paid during the year or period ended December 31, 2023 qualify for the corporate dividends received deduction:
Small Cap Fund |
46.94 | % | ||
Small-Mid Cap Fund |
100.00 | % | ||
Mid Cap Fund |
100.00 | % | ||
Large Cap Fund |
100.00 | % | ||
Large Cap Concentrated Fund |
100.00 | % | ||
Select Fund |
100.00 | % | ||
Long-Short Fund |
35.18 | % | ||
International Fund |
0.00 | % | ||
Short Duration Fund |
0.00 | % | ||
Core Bond Fund |
0.00 | % |
Qualified Dividend Income
The Funds have designated the maximum amount allowable of their taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003. This amount was reflected on form 1099-DIV for the calendar year 2023.
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 147 |
Diamond Hill Funds
Other Items
December 31, 2023 (Continued)
Capital Gain Distribution
For the year ended December 31, 2023, the following Funds designated long-term capital gain distributions:
Small Cap Fund |
$ | 74,773,147 | ||
Small-Mid Cap Fund |
30,423,273 | |||
Mid Cap Fund |
4,499,255 | |||
Large Cap Fund |
222,672,454 | |||
Select Fund |
447,942 | |||
Long-Short Fund |
37,156,811 |
International Fund intends to elect to pass through to shareholders the income tax credit for taxes paid to foreign countries. The Fund’s foreign source income per share was $0.282 and the foreign tax expense per share was $0.019. The pass-through of the foreign tax credit will only affect those persons who are shareholders on the dividend record date. These shareholders will receive more detailed information with their 2023 Form 1099-DIV.
Trustee Approval of Investment Advisory Agreement
Renewal of Management Agreement for All Funds
The Board of Trustees of Diamond Hill Funds (the “Trust”) requested and the Adviser provided a broad range of information in connection with its consideration of the continuance of the Amended and Restated Investment Management Agreement (“Management Agreement”) between the Trust and Diamond Hill Capital Management, Inc. (the “Adviser”), for each series of the Trust (each separately, a “Fund”). In approving the Management Agreement, the Board considered a variety of factors, including those discussed below. The Board also considered other factors (including conditions and trends prevailing generally in the economy, the securities markets, and the industry) and did not treat any single factor as determinative, and each Trustee may have attributed different weights to different factors. The Board based its conclusions in part on its consideration of the advisory arrangements in prior years and the Board’s ongoing regular review of fund performance and operations throughout the year. The Board reviewed the information at regularly scheduled meetings on July 19, 2023, and August 17, 2023, and by unanimous vote approved continuation of the Management Agreement. In concluding to renew the Management Agreement, the Board discussed the following factors, on a Fund-by-Fund basis:
|
a) |
Nature, Extent and Quality of Services. In considering the nature, extent, and quality of services provided by the Adviser to the Trust, the Board reviewed information provided by the Adviser relating to its operations and personnel, descriptions of its organizational and management structure, and information regarding the Adviser’s compliance and regulatory history, including its Form ADV. The Trustees considered the nature, extent and quality of the services provided by the Adviser under the Management Agreement, including a review of the services provided thereunder and the Adviser’s overall reputation, integrity, and mission to serve its clients through a disciplined intrinsic-value-based approach to investment. The Trustees considered the Adviser’s experience and |
148 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Funds
Other Items
December 31, 2023 (Continued)
the capabilities and qualifications of its personnel, and the Adviser’s continued investment of significant resources in human capital to attract and retain top talent. The Trustees also reviewed the Adviser’s succession plan for key investment and management staff. In addition, the Trustees reviewed information related to the compensation structure for portfolio managers and other key investment personnel. Finally, the Trustees noted that the Adviser provides administrative services to the Trust under an Amended and Restated Administrative, Fund Accounting and Transfer Agency Services Agreement (“Administration Agreement”).
|
b) |
Investment Performance of the Funds. In evaluating the performance of each Fund, the Board receives and reviews detailed performance information for each Fund at its regularly scheduled meetings. In connection with the consideration of the Management Agreement, the Trustees reviewed each Fund’s absolute performance, performance relative to its passive benchmark, performance relative to a custom peer group, and performance relative to the Fund’s Morningstar category, each as of May 31 and June 30, 2023. The Trustees concluded that the performance of each Fund is being monitored and reasonably addressed, where appropriate. |
|
c) |
Reasonableness of Investment Advisory Fees. The Trustees noted that the contractual fee rate for each Fund under the Management Agreement generally was in line with or below the median rates of the applicable Fund’s peer group. |
|
d) |
Reasonableness of Total Expenses. The Trustees noted that with exception of four Funds, the total expenses for Investor Class, Class I and Class Y shares of all Funds were at or below the median total expenses of comparable funds within each Fund’s applicable Morningstar peer group. With respect to those four Funds, the Trustees noted that the total expenses of each Fund were within 0.07% of the median for the applicable Morningstar peer group. |
|
e) |
Reasonableness of Investment Advisory Fees as Compared to Fees Charged to Other Clients. The Trustees reviewed the fees paid by each of the Adviser’s other clients, as well as a summary of the differences in services provided and how these differences affect fees, including the difference between serving as an adviser versus a sub-adviser. With limited exceptions, the Trustees observed that the investment advisory fees charged by the Adviser to the Funds were comparable to the investment advisory fees the Adviser charges its other similarly managed accounts (i.e., separately managed accounts). |
|
f) |
Profitability. The Trustees considered each Fund’s profitability to the Adviser and the Adviser’s methodology for calculating its profitability. The Trustees observed that the Adviser’s pre-tax profit margin under the Management Agreement represented a fair and entrepreneurial profit for managing the Funds. The Trustees discussed that the Adviser is also the administrator to the Funds and the Trustees reviewed a separate profitability analysis relating to the administrative services provided to the Funds. The Trustees noted that the profit margin under the Administration Agreement represented a fair and entrepreneurial profit for serving as administrator to the Funds. |
|
g) |
Economies of Scale. The Trustees reviewed the potential extent to which economies of scale would be realized as each Fund grows and whether fee levels reflect these economies of scale for the benefit of Fund shareholders. While many advisory firms |
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 149 |
Diamond Hill Funds
Other Items
December 31, 2023 (Continued)
reduce fees as assets under management increase with predetermined break points, the Adviser has adopted a different strategy. Rather than instituting break points, the Adviser has targeted its advisory fees to correspond to its mission to add value, meaning that rather than charging a lower fee on assets above a certain level, the Adviser prefers to close a strategy to new investors so that it can efficiently manage the Fund’s assets and attempt to fulfill its responsibility to add value to existing investors.
|
h) |
Ancillary Benefits. The Trustees considered ancillary benefits received by the Adviser as a result of its relationship with the Funds. The Trustees noted that, as administrator to the Funds, the Adviser is expected to earn fees from the Funds for providing administrative services. The fees were shown separately in the profitability analysis presented to the Trustees. |
In their deliberations, there was a comprehensive consideration of each of the factors above in connection with each Fund, and the Trustees, all of whom qualify as Independent Trustees under the 1940 Act, concluded the compensation to be received by the Adviser from each Fund was fair and reasonable and the continuance of the Management Agreement for all of the Funds was in the best interests of each Fund and its shareholders.
150 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Funds
Schedule of Shareholder Expenses
Hypothetical Example of a $1,000 Investment at Beginning of Period
(Unaudited)
As a Fund shareholder, you may incur two types of costs: (1) transaction costs, including wire redemption fees and sales charges (loads) as applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs or other fees that may apply, such as sales charges and fees for low balance accounts. Therefore, the examples are useful in comparing ongoing costs only and will not help you determine the relative total cost of owning different funds. In addition, if these transactional costs and other fees were included, your costs would have been higher.
These examples are based on an investment of $1,000 invested at July 1, 2023 and held for the entire period from July 1, 2023 through December 31, 2023.
The Actual Expense example below provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses paid during the period” to estimate the expenses you paid on your account during this period.
The Hypothetical Expense example below provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in this Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Account value |
Account value |
Expenses paid |
Funds |
||||
|
Actual |
Hypothetical |
Actual |
Hypothetical |
Actual |
Hypothetical |
Actual |
Small Cap Fund |
|||||||
Investor |
1,000.00 |
1,000.00 |
1,089.00 |
1,018.80 |
6.69 |
6.46 |
1.27% |
Class I |
1,000.00 |
1,000.00 |
1,090.00 |
1,020.27 |
5.16 |
4.99 |
0.98% |
Class Y |
1,000.00 |
1,000.00 |
1,091.70 |
1,020.87 |
4.53 |
4.38 |
0.86% |
Small-Mid Cap Fund |
|||||||
Investor |
1,000.00 |
1,000.00 |
1,047.10 |
1,019.06 |
6.29 |
6.21 |
1.22% |
Class I |
1,000.00 |
1,000.00 |
1,049.00 |
1,020.57 |
4.75 |
4.69 |
0.92% |
Class Y |
1,000.00 |
1,000.00 |
1,049.70 |
1,021.17 |
4.13 |
4.08 |
0.80% |
Mid Cap Fund |
|||||||
Investor |
1,000.00 |
1,000.00 |
1,065.00 |
1,019.86 |
5.52 |
5.40 |
1.06% |
Class I |
1,000.00 |
1,000.00 |
1,066.60 |
1,021.32 |
4.01 |
3.92 |
0.77% |
Class Y |
1,000.00 |
1,000.00 |
1,066.80 |
1,021.93 |
3.39 |
3.31 |
0.65% |
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 151 |
Diamond Hill Funds
Schedule of Shareholder Expenses
Hypothetical Example of a $1,000 Investment at Beginning of Period
(Unaudited) (Continued)
Account value |
Account value |
Expenses paid |
Funds |
||||
|
Actual |
Hypothetical |
Actual |
Hypothetical |
Actual |
Hypothetical |
Actual |
Large Cap Fund |
|||||||
Investor |
1,000.00 |
1,000.00 |
1,078.20 |
1,020.37 |
5.03 |
4.89 |
0.96% |
Class I |
1,000.00 |
1,000.00 |
1,080.00 |
1,021.83 |
3.51 |
3.41 |
0.67% |
Class Y |
1,000.00 |
1,000.00 |
1,080.60 |
1,022.43 |
2.88 |
2.80 |
0.55% |
Large Cap Concentrated Fund |
|||||||
Investor |
1,000.00 |
1,000.00 |
1,107.30 |
1,020.32 |
5.15 |
4.94 |
0.97% |
Class I |
1,000.00 |
1,000.00 |
1,109.50 |
1,021.78 |
3.62 |
3.47 |
0.68% |
Class Y |
1,000.00 |
1,000.00 |
1,109.60 |
1,022.38 |
2.98 |
2.85 |
0.56% |
Select Fund |
|||||||
Investor |
1,000.00 |
1,000.00 |
1,108.00 |
1,019.36 |
6.16 |
5.90 |
1.16% |
Class I |
1,000.00 |
1,000.00 |
1,109.80 |
1,020.82 |
4.63 |
4.43 |
0.87% |
Class Y |
1,000.00 |
1,000.00 |
1,109.90 |
1,021.42 |
3.99 |
3.82 |
0.75% |
Long-Short Fund |
|||||||
Investor |
1,000.00 |
1,000.00 |
1,080.80 |
1,016.03 |
9.55 |
9.25 |
1.82% |
Class I |
1,000.00 |
1,000.00 |
1,082.40 |
1,017.49 |
8.03 |
7.78 |
1.53% |
Class Y |
1,000.00 |
1,000.00 |
1,082.80 |
1,018.10 |
7.40 |
7.17 |
1.41% |
International Fund |
|||||||
Investor |
1,000.00 |
1,000.00 |
1,039.10 |
1,019.46 |
5.86 |
5.80 |
1.14% |
Class I |
1,000.00 |
1,000.00 |
1,040.00 |
1,020.92 |
4.37 |
4.33 |
0.85% |
Class Y |
1,000.00 |
1,000.00 |
1,041.10 |
1,021.53 |
3.76 |
3.72 |
0.73% |
Short Duration Fund |
|||||||
Investor |
1,000.00 |
1,000.00 |
1,055.60 |
1,021.12 |
4.20 |
4.13 |
0.81% |
Class I |
1,000.00 |
1,000.00 |
1,058.30 |
1,022.58 |
2.70 |
2.65 |
0.52% |
Class Y |
1,000.00 |
1,000.00 |
1,058.80 |
1,023.19 |
2.08 |
2.04 |
0.40% |
Core Bond Fund |
|||||||
Investor |
1,000.00 |
1,000.00 |
1,034.80 |
1,021.37 |
3.90 |
3.87 |
0.76% |
Class I |
1,000.00 |
1,000.00 |
1,036.90 |
1,022.84 |
2.41 |
2.40 |
0.47% |
Class Y |
1,000.00 |
1,000.00 |
1,037.50 |
1,023.44 |
1.80 |
1.79 |
0.35% |
|
* |
Expenses are equal to the Fund’s annualized net expense ratio, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one-half year period). |
You can find more information about each Fund’s expenses, including annual expense ratios for historical periods in the Financial Highlights section of this report. For additional information on operating expenses and other shareholder costs, please refer to the Funds’ prospectus. The prospectus presents hypothetical shareholder costs over various time periods based upon a $10,000 investment and a return of 5% a year. The standardized example, which appears in all mutual fund prospectuses, may be useful to you in comparing the costs of investing in different funds.
152 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
Diamond Hill Funds
Management of the Trust
(Unaudited)
The names of the Trustees and officers of the Trust are shown below. Each Trustee is an independent and non-interested Trustee as defined in the 1940 Act.
TRUSTEES
Name and Age |
Position |
Year First |
Principal Occupation(s) |
Number of |
Other |
Tamara L. Fagely |
Trustee |
Since November 2014 |
Retired, January 2014 to present; Chief Operations Officer, Hartford Funds, 2012 to 2013; Chief Financial Officer, Hartford Funds, 2010 to 2012; Treasurer, Hartford Funds, 2001 to 2012 |
10 |
Allianz Variable Insurance Products Trust and Allianz Variable Insurance Products Fund of Funds Trust, December 2017 to present; AIM ETF Products Trust, February 2020 to present |
Jody T. Foster |
Trustee |
Since February 2022 |
Chief Executive Officer, Symphony Consulting, 2010 to present |
10 |
Hussman Investment Trust, June 2016 to present; Forum CRE Income Fund, April 2021 to January 2022 |
John T. |
Trustee |
Since May 2019 |
Retired, December 2017 to present; Partner, COO and CCO, Independent Franchise Partners, LLP, June 2009 to November 2017 |
10 |
None |
Anthony J. Ghoston |
Trustee |
Since May 2022 |
Chief Executive Officer and President, Informational Resource Consulting, 2020 to present; President, Chief Operating Officer and Chief Compliance Officer, Dividend Assets Capital, LLC, 2010 to 2020 |
10 |
None |
Nancy M. Morris |
Trustee |
Since May 2019 |
Retired, August 2018 to present; Chief Compliance Officer, Wellington Management Company LLP, April 2012 to July 2018 |
10 |
The Arbitrage Funds, December 2018 to present; AltShares Trust, January 2020 to present |
DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 153 |
Diamond Hill Funds
Management of the Trust
(Unaudited) (Continued)
OFFICERS
Name and Age |
Position Held |
Year First Elected to |
Principal Occupation(s) |
Thomas E. Line Year of Birth: 1967 |
President |
Since May 2020 |
Chief Executive Officer of the Trust, November 2014 to May 2020; Chief Financial Officer of Diamond Hill Investment Group, Inc., January 2015 to present; Managing Director - Finance of Diamond Hill Investment Group, Inc., April 2014 to December 2014. |
Karen R. Colvin Year of Birth: 1966 |
Vice President Secretary |
Since November 2011 Since November 2014 |
Director-Fund Administration & Sales Support, Diamond Hill Capital Management, Inc., June 2009 to present. |
Gary R. Young Year of Birth: 1969 |
Chief Compliance Officer |
Since May 2020 |
President of the Trust, November 2014 to May 2020; Secretary of the Trust, May 2004 to November 2014; Chief Administrative Officer of the Trust, October 2010 to November 2014; Chief Risk Officer of Diamond Hill Capital Management, Inc., May 2020 to present; Chief Compliance Officer of Diamond Hill Capital Management, Inc., October 2010 to present; Controller of Diamond Hill Investment Group, Inc., April 2004 to March 2015. |
Julie A. Roach Year of Birth: 1971 |
Treasurer |
Since October 2017 |
Director-Fund Administration, Diamond Hill Capital Management, Inc., September 2017 to present. |
|
1 |
Each Trustee is elected to serve in accordance with the Declaration of Trust and Bylaws of the Trust until their resignation, removal or retirement. Trustees have a 15-year term limit. Each Officer is elected by the Trustees for a renewable 1-year term to serve the Trust or until their resignation, removal or retirement. The address for all Trustees and Officers is 325 John H. McConnell Blvd., Suite 200, Columbus, OH 43215. |
|
2 |
This includes all directorships (other than those in the Trust) that are held by each Trustee as a director of a public company or a registered investment company in the last 5 years. |
The Funds’ Statement of Additional Information includes information about the Trustees and is available free of charge, upon request, by calling toll free at 888-226-5595.
154 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM |
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DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2023 | DIAMOND-HILL.COM 157 |
INVESTMENT ADVISER: DIAMOND HILL CAPITAL MANAGEMENT, INC.
DISTRIBUTOR: FORESIDE FINANCIAL SERVICES, LLC (MEMBER FINRA)
DIAMOND-HILL.COM | 855.255.8955 | 325 JOHN H. MCCONNELL BLVD | SUITE 200 | COLUMBUS, OHIO | 43215
DH-AR123123
(b) Not applicable
Item 2. Code of Ethics.
The registrant has adopted a code of ethics that applies to the registrant's principal executive officer and principal financial officer. The registrant has made minor amendments to its code of ethics during the period covered by this report. The registrant has not granted any waivers from any provisions of the code of ethics during the period covered by this report. A copy of the registrant’s Code of Ethics is filed herewith.
Item 3. Audit Committee Financial Expert.
3(a)(1) The registrant’s board of directors has determined that the registrant has at least one audit committee financial expert serving on its audit committee.
3(a)(2) The audit committee financial experts are Ms. Tamara L. Fagely and Jody T. Foster, who are “independent” for purposes of this Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services.
(a) Audit Fees. Audit fees totaled $160,000 and $160,000 in fiscal 2023 and 2022, respectively. 2023 and 2022 fees include fees associated with the annual audit and filings of the registrant’s Form N-1A and Form N-CEN.
(b) Audit-Related Fees. There were no audit-related fees in fiscal 2023 and 2022.
(c) Tax Fees. Fees for tax compliance services totaled $49,500 and $56,250 in fiscal 2023 and 2022, respectively.
(d) All Other Fees. All other fees totaled $0 and $0 in fiscal 2023 and 2022, respectively.
(e)(1) Audit Committee Pre-Approval Policies. The Audit Committee’s pre-approval policies describe the types of audit, audit-related, tax and other services that may receive the general pre-approval of the Audit Committee. The pre-approval policies provide that annual audit service fees, tax services not specifically granted pre-approval, services exceeding pre-approved cost levels and other services that have not received general pre-approval will be subject to specific pre-approval by the Audit Committee. The pre-approval policies further provide that the Committee may grant general pre-approval to other audit services (statutory audits and services associated with SEC registration statements, periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings), audit-related services (accounting consultations related to accounting, financial reporting or disclosure matters not classified as “audit services,” assistance with understanding and implementing new accounting and financial reporting guidance from rulemaking authorities, agreed-upon or expanded audit procedures related to accounting and/or billing records required to respond to or comply with financial, accounting or regulatory reporting matters and assistance with internal control reporting requirements under Form N-CEN and Form N-CSR), tax services that have historically been provided by the auditor that the Committee believes would not impair the independence of the auditor and are consistent with the SEC’s rules on auditor independence and permissible non-audit services classified as “all other services” that are routine and recurring services.
(e)(2) All of the services described in paragraphs (b) through (d) of Item 4 were approved by the Audit Committee.
(f) During the audit of registrant’s financial statements for the most recent fiscal year, less than 50 percent of the hours expended on the principal accountant’s engagement were attributed to work performed by persons other than the principal accountant’s full-time, permanent employee.
(g) The aggregate non-audit fees for services to the registrant, its investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant were $30,000 and $31,000 in 2023 and 2022, respectively.
(h) The registrant's audit committee of the board of trustees has considered whether the provision of non-audit services that were rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence.
(i) Not applicable.
(j) Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Schedule of Investments.
(a) The Schedule of Investments is included in the Annual Report to Shareholders filed under Item 1 of this Form.
(b) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. Controls and Procedures.
(a)The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b)There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that have materially affected or are reasonably likely to materially affected, the registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
| (a)(1) | Code of Ethics for Senior Financial Officers is filed herewith. |
| (a)(2) | A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)): Attached hereto |
|
(1) Not applicable.
(2) Change in the registrant’s independent public accountants: Not applicable | |
| (b) | Certification required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)): Attached hereto |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Registrant | Diamond Hill Funds | |
| By (Signature and Title) | /s/ Thomas E. Line | |
| Thomas E. Line, President | ||
| Date: | February 21, 2024 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By (Signature and Title) | /s/ Thomas E. Line | |
| Thomas E. Line, President | ||
| Date: | February 21, 2024 | |
| By (Signature and Title) | /s/ Julie A. Roach | |
| Julie A. Roach, Principal Financial Officer | ||
| Date: | February 21, 2024 |