Diamond Hill High Yield Fund Class I (DHHIX)

Overview

The investment strategy focus is on attaining high current income with the possibility for capital appreciation. The guiding principle involves a commitment to investing a majority of assets into a broad spectrum of corporate debt securities, which primarily include bonds rated below investment grade or those not rated at all, commonly referred to as "junk bonds", "high yield bonds", and "non-investment grade bonds". In addition, investments may also cover "distressed debt". This approach is reflective of a pursuit to capitalize on the higher yield potential of these securities, underpinned by a calculated acceptance of their higher risk compared to investment-grade bonds.

Products and Services

• High Yield Securities Exposure

  The fund primarily focuses on providing investors exposure to high yield securities. By allocating at least 80% of its net assets into a diversified portfolio of corporate debt securities that are below investment grade or unrated at the time of purchase, the fund aims to generate high current income. These securities, often referred to as "junk bonds", offer the potential for higher returns in exchange for a higher risk of default.

• Distressed Debt Investments

  As part of its diversified investment approach, the fund may also allocate part of its assets into so-called "distressed debt". These are securities of companies that are experiencing financial or operational difficulties but may present an opportunity for substantial returns if the companies manage to turn around. Investing in distressed debt is aligned with the fund's goal of capital appreciation but involves a higher level of risk and potential for volatility.