Diamond Hill Launches New Securitized Credit Fund

COLUMBUS, Ohio, Dec. 16, 2024 /PRNewswire/ -- Diamond Hill, a boutique investment management firm with a long-term, valuation-disciplined approach across multiple asset classes, today announced the launch of the Diamond Hill Securitized Credit Fund. Structured as an interval fund, the Fund will extend Diamond Hill's expertise in securitized bonds into more illiquid and lower credit quality bonds.

The Securitized Credit Fund will be managed by Henry Song, CFA. The interval fund structure, which offers quarterly redemptions with shares available for daily purchase, provides flexibility for the Fund to take advantage of investments in less liquid, potentially higher-return securities that may not be suitable for an open-end fund with daily liquidity.

"The Securitized Credit Fund leverages our fixed income team's deep and differentiated expertise in securitized assets to build a portfolio focused solely on that asset class," said Heather Brilliant, CFA, Diamond Hill CEO. "Launching this fund adds to the team's ability to deliver portfolios with the differentiated risk/return profile our clients seek."

"Our team focuses on the securitized sector because the market has historically been less efficient in pricing these securities," said Song. "That provides a rich opportunity set for our disciplined approach to bottom-up security selection to uncover underpriced securities."

The Diamond Hill fixed income team has $5.9 billion in assets under management as of 30 November 2024 and manages the Core Bond, Core Plus Bond, Intermediate Bond, Short Duration Investment Grade and Short Duration Securitized Bond portfolios in addition to Securitized Credit.

About Diamond Hill:
Diamond Hill invests on behalf of clients through a shared commitment to its valuation-driven investment principles, long-term perspective, capacity discipline and client alignment. An independent active asset manager with significant employee ownership, Diamond Hill's investment strategies include differentiated U.S. and international equity, alternative long-short equity and fixed income. As of November 30, 2024, Diamond Hill's assets under management and assets under advisement totaled $33.5 billion. For more information visit www.diamond-hill.com. 

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Carefully consider the Fund's investment objectives, risks and expenses. This and other important information are contained in the Fund's prospectus and summary prospectus, which are available at www.diamond-hill.com or 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

The Diamond Hill Securitized Credit Fund is operated as a continuously offered, non-diversified, registered closed-end, interval fund. As a result, pursuant to Rule 23c-3 under the Investment Company Act of 1940, as amended ("Company Act"), the Fund will conduct quarterly repurchase offers, at net asset value, of no less than 5% and no more than 25% of the Fund's outstanding shares. It is possible that a repurchase offer may be oversubscribed, with the result that shareholders may only be able to have a portion of their shares repurchased. If a repurchase offer is oversubscribed by shareholders, the Fund will repurchase only a pro rata portion of shares tendered by each shareholder. There is no assurance that a shareholder will be able to tender their Fund shares when or in the amount that they desire. Shareholders should not expect to be able to sell shares other than through the Fund's repurchase policy, regardless of how the Fund performs.

Risk Disclosure
An investment in the Fund should be viewed as an illiquid investment, involves a high degree of risk and is not suitable for investors that require liquidity. Shares are not redeemable, are not listed on any securities exchange, and there is not expected to be any secondary trading market in the shares to develop.

In general, when interest rates rise, fixed income values fall. There are specialized risks associated with investing in securitized bond investments, including market, credit, distribution, inflation, extension, liquidity, management and interest rate risk. Lower quality/high yield securities involve greater default risk or price changes than bonds with higher credit ratings. Mortgage- and asset-backed securities are influenced by factors affecting the housing market and the assets underlying such securities. The securities may decline in value, face valuation difficulties and become more volatile and/or illiquid. They are also subject to prepayment risk, which occurs when mortgage holders refinance or repay loans sooner than expected, creating an early return of principal to loan holders. There is no assurance that monthly distributions paid by the fund will be maintained at a certain level or that dividends will be paid at all.

The Fund's distributions may be funded from unlimited amounts of offering proceeds or borrowings, which may constitute a return of capital and reduce the amount of capital available to the Fund for investment. Any capital returned to shareholders through distributions will be distributed after payment of fees and expenses.

A return of capital to shareholders is a return of a portion of their original investment in the Fund, thereby reducing the tax basis of their investment. As a result from such reduction in tax basis, shareholders may be subject to tax in connection with the sale of shares, even if such shares are sold at a loss relative to the shareholder's original investment.

SOURCE Diamond Hill