(PUB) Morningstar FundInvestor

August 2 014

Morningstar FundInvestor

23

Data through July 31, 2014 Diamond Hill Small-Mid Cap A

Ticker

Status Yield Total Assets

Mstar Category Mid-Cap Value

DHMAX Open

0.2% $480 mil

Morningstar Analyst Rating 04-09-14

Investment Style Equity Stock %

Historical Profile Return Risk Rating Average Below Avg Neutral

81% 85% 91% 82% 85% 97% 93% 92% 92%

Œ

Manager Change Partial Manager Change

10.0 13.0 16.6 21.4

Morningstar Pillars Process Performance

Growth of $10,000

Positive Positive Positive Positive Neutral

¶ ∞ ∞ ∞ ∞

Investment Values of Fund Investment Values of S&P 500

People Parent Price

5.0

Performance Quartile (within Category) History

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 07-14

Morningstar Analyst Rating Morningstar evaluates mutual funds based on five key pillars, which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analyst Rating Spectrum Œ „ ´ˇ ¨

10.00 . .

10.91

10.50

7.26

10.22 40.77 14.31

12.57 23.03 7.97 -1.72 0.00 23.03 0.00 0.00 1.32 -0.17 40

11.71 -4.19 -6.30 -2.81 0.00 -4.19

13.13 15.43 -0.57 -3.08

17.73 41.25

18.33 3.38 -2.28 2.86 0.00 3.38

NAV

9.81 . . . -6.40 -5.98 . . . 0.51 -10.41 . . . 0.37 0.13 . . . 9.68 . . . 67 97 . . . 1.33 1.21 . . . 0.54 0.49 . . . 39 33 . . . 11 10 . . . 0.04 0.28 0.01 0.06

-30.01 -0.91

Total Return %

6.99 8.43 0.83

8.86 7.79 0.27

+/-S&P 500 +/-Russ MV

6.56 0.00

0.03

Income Return % Capital Return %

-30.84 -1.28

40.77

15.40

40.98

12

20

49

65

10

70

Total Rtn % Rank Cat

Pillar Spectrum Positive ∞

0.00 . . 0.00 . .

0.09 0.00 1.32 1.11

0.00 0.00 1.33 0.17

0.00 0.32 1.28 0.00

0.00 0.38 1.26 0.15

0.03 0.76 1.26 0.27

0.00 0.00 . . . 105

Income $

§ Negative

¶ Neutral

Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil

Performance 07-31-14 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total

91

74

35 17

48 17

26 19

35 61

2010 2011 2012 2013 2014

6.65 -6.88 10.54 12.07 23.03 5.89 -0.23 -19.05 12.03 -4.19 10.76 -5.47 6.04 3.98 15.43 16.45 3.99 6.92 9.09 41.25 2.03 5.36 . . .

8

9

Portfolio Analysis 06-30-14 Share change since 05-14 Total Stocks:61 Sector

Rating and Risk Time Load-Adj

PE Tot Ret% % Assets

Morningstar

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

Period Return % Rtn vs Cat

State Street Instl Liqui Willis Group Holdings PL Cimarex Energy Co Hub Group Inc Class A Boston Scientific Inc

7.98

. . . Finan Svs 18.8 -7.72 4.90

1 Yr 3 Yr 5 Yr

8.36

Trailing

Total

+/-

+/- Russ %Rank Growth of

Return% S&P 500 2.00 -1.02 6.57 -2.87 14.06 -2.88 16.29 -0.55 18.39 1.60

MV

Cat

$10,000

14.31 17.18

Avg Avg

Avg -Avg

Energy Industrl

19.4 32.80 3.84 25.8 15.80 3.35

3 Mo 6 Mo 1 Yr

1.31 3.69 2.43 1.72 0.53

42 10,200 72 10,657 63 11,406 37 15,726

10 Yr Incept

. . . .

Hlth care 46.7 6.32 2.92 Finan Svs 21.0 -1.31 2.68 Cnsmr Def 22.5 -10.00 2.45 Technology 26.0 4.30 2.29 Cnsmr Def 17.8 21.59 2.25 Cnsmr Def 22.1 -15.22 2.09 Cnsmr Cyc 36.8 -8.88 2.08 Cnsmr Cyc 13.4 -18.87 2.01 Industrl 15.8 8.03 2.65

8.56

Brown & Brown Inc

3 Yr Avg 5 Yr Avg 10 Yr Avg 15 Yr Avg

Dover Corp

Other Measures

Standard Index

Best Fit Index

32 23,258 . . . . . . . . . . Tax Analysis Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat

Flowers Foods Inc Juniper Networks Inc Molson Coors Brewing Co

S&P 500

Mstar Mid Value

Alpha

-2.7 1.16

-2.8 1.02

Beta

B&G Foods Inc Jarden Corp

R-Squared

89

96

3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated)

13.44 16.64

61 48

0.77 0.46

48

Standard Deviation

14.95 16.29

Steiner Leisure Ltd

37 . . . .

Endurance Specialty Hold

Finan Svs

8.0 -8.69 2.01

Mean

Staples Inc

Cnsmr Cyc 12.0 -25.55 1.98

Sharpe Ratio

1.08

iStar Financial Inc Energizer Holdings Inc

Real Est

0.77 1.95

.

Potential Capital Gain Exposure: 15% of assets

Cnsmr Def 19.1 6.95 1.93

Morningstar’s Take by Janet Yang, CFA 04-09-14 With its capable team and proven manager, Diamond Hill Small-Mid Cap has soundly earned Morningstar’s highest regard. Lead portfolio manager Chris Welch already had a long record of impressively executing the classic value investing process that characterizes all of Diamond Hill’s offerings: From the fund’s December 2005 inception through March 2014, its annualized 9.8% return outpaced the typical mid-cap value fund by 173 basis points and the Russell 2500 Value Index by 157 basis points. That record helped the fund to earn and retain a Morningstar Analyst Rating of Silver since its first rating in 2012. Numerous meetings and conversations over the years with Welch and the rest of the research team at Diamond Hill have helped to further solidify their reputation, giving Morningstar the added confidence to upgrade the fund’s rating to Gold. Much of the fund’s appeal comes from the philosophy that unifies the firm, which focuses on using fundamental research to determine companies’ intrinsic values, and then buying those firms when their

Popular Inc

Finan Svs

4.1 11.03 1.86 26.3 43.03 1.82

Whiting Petroleum Corp

Energy

stock prices fall below those values. Staying true to this straightforward premise has meant that even as the firm’s analyst ranks grew from zero at its 2000 founding (then as now, the portfolio managers also acted as analysts) to roughly two dozen analysts and associates today, investors benefited from the team’s sole attention to its particular brand of investing; analysts haven’t had to, say, augment their research for growth-style managers, which sometimes occurs at firms offering more varied strategies. Given that focus, investors should expect this fund to shine in down markets rather than up ones; strong stock-picking helped 2013 to be an exception to the rule, when the fund’s 41.6% gain allowed it to outperform 90% of all mid-cap value funds. However, with an overall record that beats the Russell 2500 Value Index less than half of the time in rising markets, last year was more of a pleasant anomaly. Investors prepared for the fund’s more-regular performance pattern should continue to be well served here.

Post Holdings Inc

Cnsmr Def

-8.83 1.82

.

Current Investment Style

Sector Weightings

% of Stocks

Rel S&P 500 High

3 Year Low

Market Cap % Giant 0.0 Large 7.4 Mid 59.9 Small 25.2 Micro 7.5 Avg $mil: 4,710

Value Blnd Growth

Large Mid Small

Cyclical 41.47 1.44 BasicMat 0.00 0.00 . . CnsmrCyc 8.47 0.99 8 5 FinanSvs 27.99 1.79 28 21 Real Est 5.01 3.43 6 1 Sensitive 30.20 0.69 CommSrvs 0.00 0.00 . . Energy 10.33 0.97 16 9 Industrl 14.60 1.28 23 15 Technlgy 5.27 0.30 6 3 Defensive28.32 1.03 CnsmrDef13.52 1.11 14 13 Hlthcare 11.67 0.99 16 11 Utilities 3.13 0.87 3 2

h r t y u j i o p a k s d f

Value Measures Price/Earnings Price/Book Price/Sales Price/Cash Flow Dividend Yield % Long-Term Erngs Book Value Sales Cash Flow Historical Erngs Growth Measures

Rel Category

13.62 1.65 1.21 7.32 1.74 10.01 6.43 7.40 10.87 15.11

0.97 1.02 1.32 1.13 0.83 1.01 1.47 2.21 2.01 2.49

% Rel Category

Composition - Net

Cash 8.0 Stocks 92.0 Bonds 0.0 Other 0.0 Foreign 3.8

Address:

Diamond Hill Funds Columbus, OH 43215 888-226-5595 www.diamond-hill.com

Minimum Purchase: Min Auto Inv Plan:

$2500 $2500

Add: $100 IRA: $2500

Add: $100

Profitability

% Rel Category

Sales Fees:

5.00%L,

Return on Equity Return on Assets Net Margin

10.47 3.75 10.23

0.84 0.83 1.08

Web Address: Inception: Advisor: Subadvisor: NTF Plans:

Management Fee:

0.75%, 0.25%A

(% of Stock)

12-30-05

Actual Fees:

Mgt:0.75% Dist:0.25%

Diamond Hill Capital Management Inc

Expense Projections: Income Distribution:

3Yr:$883 Annually

5Yr:$1162 10Yr:$1957

None

DATALynx NTF, Fidelity Instl-NTF

Mutual Funds ß ®

© 2014Morningstar, Inc.All rights reserved. The information herein isnot representedorwarranted to be accurate, correct, complete or timely. Pastperformance isnoguarantee of future results.Access updated reports at To order reprints, call 312-696-6100. mfb.morningstar.com.

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