# EDGAR Filing Document

**Accession Number:** 0001032423
**File Stem:** 0001398344-26-003660
**Filing Date:** 2026-2
**Character Count:** 1088846
**Document Hash:** e628cb4edefaf69559d2596667bf07d1
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001398344-26-003660.hdr.sgml**: 20260225

**ACCESSION NUMBER**: 0001398344-26-003660

**CONFORMED SUBMISSION TYPE**: 485BPOS

**PUBLIC DOCUMENT COUNT**: 71

**FILED AS OF DATE**: 20260225

**DATE AS OF CHANGE**: 20260225

**EFFECTIVENESS DATE**: 20260228

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** DIAMOND HILL FUNDS
- **CENTRAL INDEX KEY:** 0001032423

**ORGANIZATION NAME:**
- **EIN:** 316547095
- **STATE OF INCORPORATION:** OH
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 485BPOS
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-08061
- **FILM NUMBER:** 26677930

**BUSINESS ADDRESS:**
- **STREET 1:** 325 JOHN H. MCCONNELL BOULEVARD
- **STREET 2:** SUITE 200
- **CITY:** COLUMBUS
- **STATE:** OH
- **ZIP:** 43215
- **BUSINESS PHONE:** 614-255-3333

**MAIL ADDRESS:**
- **STREET 1:** 325 JOHN H. MCCONNELL BOULEVARD
- **STREET 2:** SUITE 200
- **CITY:** COLUMBUS
- **STATE:** OH
- **ZIP:** 43215

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** BSG FUNDS
- **DATE OF NAME CHANGE:** 19970206
**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** DIAMOND HILL FUNDS
- **CENTRAL INDEX KEY:** 0001032423

**ORGANIZATION NAME:**
- **EIN:** 316547095
- **STATE OF INCORPORATION:** OH
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 485BPOS
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-22075
- **FILM NUMBER:** 26677929

**BUSINESS ADDRESS:**
- **STREET 1:** 325 JOHN H. MCCONNELL BOULEVARD
- **STREET 2:** SUITE 200
- **CITY:** COLUMBUS
- **STATE:** OH
- **ZIP:** 43215
- **BUSINESS PHONE:** 614-255-3333

**MAIL ADDRESS:**
- **STREET 1:** 325 JOHN H. MCCONNELL BOULEVARD
- **STREET 2:** SUITE 200
- **CITY:** COLUMBUS
- **STATE:** OH
- **ZIP:** 43215

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** BSG FUNDS
- **DATE OF NAME CHANGE:** 19970206

## Series and Classes Contracts Data

### Diamond Hill Small Cap Fund (Series ID: S000003154)

| Class ID   | Class Name                           | Ticker Symbol   |
|:---|:---|:---|
| C000008530 | Diamond Hill Small Cap Fund Investor | DHSCX           |
| C000008532 | Diamond Hill Small Cap Fund Class I  | DHSIX           |
| C000108463 | Diamond Hill Small Cap Fund Class Y  | DHSYX           |

### Diamond Hill Large Cap Fund (Series ID: S000003155)

| Class ID   | Class Name                           | Ticker Symbol   |
|:---|:---|:---|
| C000008533 | Diamond Hill Large Cap Fund Investor | DHLAX           |
| C000008535 | Diamond Hill Large Cap Fund Class I  | DHLRX           |
| C000108464 | Diamond Hill Large Cap Fund Class Y  | DHLYX           |

### Diamond Hill Long-Short Fund (Series ID: S000003156)

| Class ID   | Class Name                            | Ticker Symbol   |
|:---|:---|:---|
| C000008536 | Diamond Hill Long-Short Fund Investor | DIAMX           |
| C000008538 | Diamond Hill Long-Short Fund Class I  | DHLSX           |
| C000108465 | Diamond Hill Long-Short Fund Class Y  | DIAYX           |

### Diamond Hill Small-Mid Cap Fund (Series ID: S000012190)

| Class ID   | Class Name                               | Ticker Symbol   |
|:---|:---|:---|
| C000033256 | Diamond Hill Small-Mid Cap Fund Investor | DHMAX           |
| C000033258 | Diamond Hill Small-Mid Cap Fund Class I  | DHMIX           |
| C000108467 | Diamond Hill Small-Mid Cap Fund Class Y  | DHMYX           |

### Diamond Hill Select Fund (Series ID: S000012191)

| Class ID   | Class Name                        | Ticker Symbol   |
|:---|:---|:---|
| C000033259 | Diamond Hill Select Fund Investor | DHTAX           |
| C000033261 | Diamond Hill Select Fund Class I  | DHLTX           |
| C000108468 | Diamond Hill Select Fund Class Y  | DHTYX           |

### Diamond Hill Mid Cap Fund (Series ID: S000043502)

| Class ID   | Class Name                         | Ticker Symbol   |
|:---|:---|:---|
| C000134907 | Diamond Hill Mid Cap Fund Investor | DHPAX           |
| C000134909 | Diamond Hill Mid Cap Fund Class I  | DHPIX           |
| C000134910 | Diamond Hill Mid Cap Fund Class Y  | DHPYX           |

### Diamond Hill Short Duration Securitized Bond Fund (Series ID: S000055043)

| Class ID   | Class Name                                                 | Ticker Symbol   |
|:---|:---|:---|
| C000173083 | Diamond Hill Short Duration Securitized Bond Fund Investor | DHEAX           |
| C000173084 | Diamond Hill Short Duration Securitized Bond Fund Class I  | DHEIX           |
| C000173085 | Diamond Hill Short Duration Securitized Bond Fund Class Y  | DHEYX           |

### Diamond Hill Core Bond Fund (Series ID: S000055044)

| Class ID   | Class Name                           | Ticker Symbol   |
|:---|:---|:---|
| C000173086 | Diamond Hill Core Bond Fund Investor | DHRAX           |
| C000173087 | Diamond Hill Core Bond Fund Class I  | DHRIX           |
| C000173088 | Diamond Hill Core Bond Fund Class Y  | DHRYX           |

### Diamond Hill International Fund (Series ID: S000065011)

| Class ID   | Class Name                               | Ticker Symbol   |
|:---|:---|:---|
| C000210481 | Diamond Hill International Fund Class Y  | DHIYX           |
| C000210482 | Diamond Hill International Fund Investor | DHIAX           |
| C000210483 | Diamond Hill International Fund Class I  | DHIIX           |

### Diamond Hill Core Plus Bond Fund (Series ID: S000088234)

| Class ID   | Class Name                                | Ticker Symbol   |
|:---|:---|:---|
| C000254400 | Diamond Hill Core Plus Bond Fund Investor | DHNAX           |
| C000254401 | Diamond Hill Core Plus Bond Fund Class I  | DHNIX           |
| C000254402 | Diamond Hill Core Plus Bond Fund Class Y  | DHNYX           |

### Diamond Hill Securitized Total Return Fund (Series ID: S000093192)

| Class ID   | Class Name                                          | Ticker Symbol   |
|:---|:---|:---|
| C000261342 | Diamond Hill Securitized Total Return Fund Class Y  | DHWYX           |
| C000261343 | Diamond Hill Securitized Total Return Fund Investor | DHWAX           |
| C000261344 | Diamond Hill Securitized Total Return Fund Class I  | DHWIX           |

### Diamond Hill Large Cap Concentrated ETF (Series ID: S000094326)

| Class ID   | Class Name                              | Ticker Symbol   |
|:---|:---|:---|
| C000262826 | Diamond Hill Large Cap Concentrated ETF |  |

?xml version='1.0' encoding='ASCII'?

**As filed with the Securities and Exchange Commission on February 25, 2026**

**File Nos. 333-22075 and 811-08061**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM N-1A**

**REGISTRATION STATEMENT**

***UNDER***

 ****

---

| | |
|:---|:---|
| ***THE SECURITIES ACT OF 1933*** | [X] |
| **Pre-Effective Amendment No.** | [ ] |
| **Post-Effective Amendment No. 95** | [X] |

---

**and/or**

**REGISTRATION STATEMENT**

***UNDER***

 ****

---

| | |
|:---|:---|
| ***THE INVESTMENT COMPANY ACT OF 1940*** | [X] |
| **Amendment No. 98** | [X] |
| **(Check appropriate box or boxes.)** |  |

---

**Diamond Hill Funds**

**(Exact Name of Registrant as Specified in Charter)**

**325 John H. McConnell Blvd., Suite 200, Columbus, Ohio 43215**

**(Address of Principal Executive Offices) (Zip Code)**

**Registrant's Telephone Number, including Area Code: (888) 226-5595**

**Thomas E. Line, Diamond Hill Funds**

**325 John H. McConnell Blvd., Suite 200, Columbus, Ohio 43215**

**(Name and Address of Agent for Service)**

***With copy to:***

**Michael V. Wible, Esq.**

**Thompson Hine LLP**

**41 South High Street, Suite 1700**

**Columbus, Ohio 43215-6101**

**(614) 469-3200**

Approximate Date of Proposed Public Offering:

It is proposed that this filing will become effective:

[ ] immediately upon filing pursuant to paragraph (b)

[X] on February 28, 2026 pursuant to paragraph (b)

[ ] 60 days after filing pursuant to paragraph (a) (1)

[ ] on (date) pursuant to paragraph (a) (1)

[ ] 75 days after filing pursuant to paragraph (a) (2)

[ ] on (date) pursuant to paragraph (a) (2) of Rule 485.

If appropriate, check the following box:

[ ] this post-effective amendment designates a new effective date for a previously filed post-effective amendment.

**Prospectus** 

February 28, 2026

---

| | | | |
|:---|:---|:---|:---|
| | **Investor**  | **Class I** | **Class Y** |
| **Diamond Hill Small Cap Fund** | DHSCX | DHSIX | DHSYX |
| **Diamond Hill Small-Mid Cap Fund** | DHMAX | DHMIX | DHMYX |
| **Diamond Hill Mid Cap Fund** | DHPAX | DHPIX | DHPYX |
| **Diamond Hill Large Cap Fund** | DHLAX | DHLRX | DHLYX |
| **Diamond Hill Select Fund** | DHTAX | DHLTX | DHTYX |
| **Diamond Hill Long-Short Fund** | DIAMX | DHLSX | DIAYX |
| **Diamond Hill International Fund** | DHIAX | DHIIX | DHIYX |
| **Diamond Hill Short Duration Securitized Bond Fund**  | DHEAX | DHEIX | DHEYX |
| **Diamond Hill Securitized Total Return Fund** | DHWAX | DHWIX | DHWYX |
| **Diamond Hill Core Bond Fund** | DHRAX | DHRIX | DHRYX |
| **Diamond Hill Core Plus Bond Fund** | DHNAX | DHNIX | DHNYX |

---

As with all mutual fund shares and prospectuses, the Securities and Exchange Commission has not approved or disapproved these shares or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.

![](diamondhill_01.jpg)

**Table of Contents**<br>

---

| | |
|:---|:---|
| **Fund Summaries** |  |
| Diamond Hill Small Cap Fund | [1](#pro01) |
| Diamond Hill Small-Mid Cap Fund | [4](#pro02) |
| Diamond Hill Mid Cap Fund | [7](#pro03) |
| Diamond Hill Large Cap Fund | [10](#pro04) |
| Diamond Hill Select Fund | [13](#pro05) |
| Diamond Hill Long-Short Fund | [16](#pro06) |
| Diamond Hill International Fund | [20](#pro07) |
| Diamond Hill Short Duration Securitized Bond Fund | [23](#pro08) |
| Diamond Hill Securitized Total Return Fund | [27](#pro09) |
| Diamond Hill Core Bond Fund | [31](#pro10) |
| Diamond Hill Core Plus Bond Fund | [35](#pro11) |
| **Fund Details** |  |
| Additional Information About Investment Strategies and Related Risks | [40](#pro12) |
| Investment Risks | [42](#pro13) |
| Portfolio Holdings Disclosure | [48](#pro14) |
| Management of the Funds | [49](#pro15) |
| **Your Account** |  |
| Pricing Your Shares | [51](#pro16) |
| How to Purchase Shares | [51](#pro17) |
| How to Redeem Shares | [55](#pro18) |
| How to Exchange Shares | [56](#pro19) |
| How to Request Certain Non-Financial Transactions | [57](#pro20) |
| Market Timing and Frequent Trading Policy | [57](#pro21) |
| Distributions and Taxes | [58](#pro22) |
| Householding | [59](#pro23) |
| **Financial Highlights** | [59](#pro24) |

---

**For more information, see back cover.**![](diamondhill_02.jpg)

![](diamondhill_03.jpg)

---

| | | | |
|:---|:---|:---|:---|
| **Class** | **Investor** | **I** | **Y** |
| Ticker | DHSCX | DHSIX | DHSYX |

---

**Investment Objective** 

The investment objective of the Diamond Hill Small Cap Fund (the "Fund" or the "Small Cap Fund") is to provide long-term capital appreciation.

**Fees and Expenses of the Fund** 

This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

---

| |
|:---|
| **SHAREHOLDER FEES (fees paid directly from your investment)** |
| **None** |

---

---

| | | | |
|:---|:---|:---|:---|
| **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** |
| | **Investor** | **Class I** | **Class Y** |
| **Management fees** | 0.80% | 0.80% | 0.80% |
| **Distribution (12b-1) fees** | 0.25% |  |  |
| **Other expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp;**Administration fees<sup>1</sup>** | 0.22% | 0.18% | 0.05% |
| &nbsp;&nbsp;&nbsp;**Other expenses** | 0.02% | 0.02% | 0.02% |
| **Total Other expenses** | 0.24% | 0.20% | 0.07% |
| **Total annual fund operating expenses** | **1.29%** | **1.00%** | **0.87%** |

---

<sup>1</sup> Administration fees for Investor and Class I shares have been restated to reflect current expenses.

**EXPENSE EXAMPLE** 

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **1 Year** | **3 Years** | **5 Years** | **10 Years** |
| **Investor** | $131 | $409 | $708 | $1556 |
| **Class I** | 102 | 318 | 552 | 1225 |
| **Class Y** | 89 | 278 | 482 | 1073 |

---

**PORTFOLIO TURNOVER** 

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 57% of the average value of its portfolio.

**Principal Investment Strategy** 

The Fund, under normal market conditions, invests at least 80% of its net assets in U.S. equity securities with small market capitalizations that Diamond Hill Capital Management, Inc. (the "Adviser") believes are undervalued. Equity securities consist of common and preferred stocks. Small cap companies are defined as companies with market capitalizations at the time of purchase below $3 billion or in the range of those market capitalizations of companies included in the Russell 2000<sup>®</sup> Index at the time of purchase. The capitalization range of the Russell 2000<sup>®</sup> Index is between $12.1 million and $35.8 billion as of January 31, 2026. The size of the companies included in the Russell 2000<sup>®</sup> Index will change with market conditions.

The Adviser focuses on estimating a company's value independent of its current stock price. To estimate a company's value, the Adviser focuses on the fundamental economic drivers of the business. The primary focus is on "bottom-up" analysis, which takes into consideration earnings, revenue growth, operating margins and other economic factors. The Adviser also considers the level of industry competition, the regulatory environment, the threat of technological obsolescence, and a variety of other industry factors. If the Adviser's estimate of a company's value differs sufficiently from the current market price, the company may be an attractive investment opportunity. In constructing a portfolio of securities, the Adviser is not constrained by the sector or industry weights in the benchmark. The Adviser relies on individual stock selection and discipline in the investment process to add value. The highest portfolio security weights are assigned to companies where the Adviser has the highest level of conviction.

Once a holding is selected, the Adviser continues to monitor the company's strategies, financial performance and competitive environment. The Adviser may sell a security as it reaches the Adviser's estimate of the company's value if it believes that the company's earnings, revenue growth, operating margin or other economic factors are deteriorating or if it identifies a stock that it believes offers a better investment opportunity.

**Main Risks** 

All investments carry a certain amount of risk, and the Fund cannot guarantee that it will achieve its investment objective. An investment in the Fund is not a deposit or obligation of any bank, is not endorsed or guaranteed by any bank, and is not insured by the Federal Deposit Insurance Corporation or any

**DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM**<sub>1</sub>

---

| | |
|:---|:---|
| **Diamond Hill Small Cap Fund Summary** | As of February 28, 2026 |

---

other government agency. You may lose money by investing in the Fund. Below are the main risks of investing in the Fund. All of the risks listed below are significant to the Fund, regardless of the order in which they appear.

**Current Market Environment Risk** Various sectors of the financial markets may experience an extended period of adverse conditions. Market uncertainty can increase dramatically, and these conditions may result in disruptions of the equity markets, periods of reduced liquidity, greater general volatility, and a contraction of availability of credit and lack of price transparency.

**Management Risk** The Adviser's judgments about the attractiveness, value, and potential appreciation of a particular asset class or individual security in which the Fund invests may prove to be incorrect, and there is no guarantee that individual companies will perform as anticipated. The value of an individual company can be more volatile than the market as a whole, and the Adviser's intrinsic value-oriented approach may fail to produce the intended results.

**Market Risk** The value of the Fund's investments may decrease, sometimes rapidly or unexpectedly, due to factors affecting an issuer held by the Fund, particular industries or overall securities markets. When the value of the Fund's investments goes down, your investment in the Fund decreases in value. A variety of factors including interest rate levels, recessions, inflation, U.S. economic growth, war or acts of terrorism, natural disasters, political events, supply chain disruptions, trade barriers, staff shortages and widespread public health issues affect the securities markets. These events may cause volatility, severe market dislocations and liquidity constraints in many markets, including markets for the securities the Fund holds, and may adversely affect the Fund's investments and operations. In addition, governmental responses to these events may negatively impact the capabilities of the Fund's service providers, disrupt the Fund's operations, result in substantial market volatility and adversely impact the prices and liquidity of the Fund's investments.

**Small Cap Company Risk** Investments in small cap companies may be riskier than investments in larger, more established companies. The securities of smaller companies may trade less frequently and in smaller volumes than securities of larger companies. In addition, smaller companies may be more vulnerable to economic, market and industry changes. As a result, share price changes may be more sudden or erratic than the prices of other equity securities, especially over the short-term. Because smaller companies may have limited product lines, markets or financial resources or may depend on a few key employees, they may be more susceptible to particular economic events or competitive factors than large capitalization companies.

**Performance** 

The following bar chart and table show two aspects of the Fund: volatility and performance. The bar chart shows the volatility — or variability — of the Fund's annual total returns over time, and shows that Fund performance can change

from year to year. The table shows the Fund's average annual total returns for certain time periods compared to the returns of a broad-based securities market index and a supplemental index. The bar chart and table provide some indication of the risks of investing in the Fund. Of course, the Fund's past performance (before and after taxes) is not necessarily an indication of its future performance. *Updated performance information is available by visiting www.diamond-hill.com or by calling 888-226-5595.*

**CLASS I ANNUAL TOTAL RETURN-YEARS ENDED 12/31** 

---

| | | |
|:---|:---|:---|
| **Best Quarter:** | 4Q 2020,  | +26.68% |
| **Worst Quarter:** | 1Q 2020,  | -36.17% |

---

**AVERAGE ANNUAL TOTAL RETURNS AS OF 12/31/25** 

After-tax returns are calculated using the highest historical individual federal marginal income tax rate and do not reflect the impact of state and local taxes. Actual after-tax returns depend on a shareholder's tax situation and may differ from those shown. After-tax returns are not relevant for shareholders who hold Fund shares in tax-deferred accounts or to shares held by non-taxable entities. After-tax returns are shown for Class I shares only and will vary from the after-tax returns for the other share classes.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Inception <br> Date of <br> Class** | **One Year** | **Five Year** | **Ten Year** |
| **Class I** Before Taxes | 4/29/05 | 11.84% | 12.05% | 8.77% |
| &nbsp;&nbsp;&nbsp;After Taxes on Distributions |  | 10.40 | 7.96 | 6.10 |
| &nbsp;&nbsp;&nbsp;After Taxes on Distributions and Sale of Fund Shares |  | 8.05 | 8.79 | 6.51 |
| **Investor** Before Taxes | 12/29/00 | 11.48 | 11.73 | 8.46 |
| **Class Y** Before Taxes | 12/30/11 | 11.96 | 12.20 | 8.90 |
| Russell 3000<sup>®</sup> Index |  | 17.15 | 13.15 | 14.29 |
| Russell 2000<sup>®</sup> Index |  | 12.81 | 6.09 | 9.62 |

---

The Fund's broad-based securities market index is the Russell 3000<sup>®</sup> Index, which measures the performance of roughly 3,000 of the largest U.S. companies based on total market capitalization.

---

| | |
|:---|:---|
| **2** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

---

---

| | |
|:---|:---|
| **Diamond Hill Small Cap Fund Summary** | As of February 28, 2026 |

---

The Russell 2000<sup>®</sup> Index represents an index of securities that reflect the market sectors in which the Fund invests and is utilized by the Adviser for measuring performance. The Russell 2000<sup>®</sup> Index measures the performance of roughly 2,000 U.S. small-cap companies.

The indexes are unmanaged, market capitalization weighted, include net reinvested dividends, do not reflect fees or expenses (which would lower the return), and are not available for direct investment.

**Portfolio Management** 

**Investment Adviser** Diamond Hill Capital Management, Inc.

**Portfolio Manager** Aaron Monroe

Portfolio Manager

since 2/2017

**Buying and Selling Fund Shares** 

**Minimum Initial Investment** Investor and Class I: $2,500

Class Y: $500,000

---

| | |
|:---|:---|
| **To Place Orders** | **Regular Mail:** <br> Diamond Hill Small Cap Fund <br>P.O. Box 46707 <br>Cincinnati, OH 45246 <br>Phone: 888-226-5595 |
|  | **Overnight Delivery:** <br>Diamond Hill Small Cap Fund <br>225 Pictoria Drive, Suite 450 <br>Cincinnati, OH 45246 <br>Phone: 888-226-5595 |

---

**Transaction Policies** 

In general, you can buy or sell (redeem) shares of the Fund by mail or phone on any business day. You can generally pay for shares by check or wire. You may be charged wire fees or other transaction fees; ask your financial professional. When selling shares, you will receive a check, unless you request a wire. You may also buy and sell shares through a financial professional.

**Dividends, Capital Gains and Taxes** 

The Fund's distributions may be taxable as ordinary income or capital gains, except when your investment is in an IRA, 401(k) or other tax-advantaged investment plan. However, you may be subject to tax when you withdraw monies from a tax-advantaged plan.

**Payments to Broker-Dealers and Other Financial Intermediaries** 

If you purchase shares (other than Class Y shares) through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary's web site for more information.

**DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM**<sub>3</sub>

![](diamondhill_05.jpg)

---

| | | | |
|:---|:---|:---|:---|
| **Class** | **Investor** | **I** | **Y** |
| Ticker | DHMAX | DHMIX | DHMYX |

---

**Investment Objective** 

The investment objective of the Diamond Hill Small-Mid Cap Fund (the "Fund" or the "Small-Mid Cap") is to provide long-term capital appreciation.

**Fees and Expenses of the Fund** 

This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

---

| |
|:---|
| **SHAREHOLDER FEES (fees paid directly from your investment)** |
| **None** |

---

---

| | | | |
|:---|:---|:---|:---|
| **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** |
| | **Investor** | **Class I** | **Class Y** |
| **Management fees** | 0.75% | 0.75% | 0.75% |
| **Distribution (12b-1) fees** | 0.25% |  |  |
| **Other expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp;**Administration fees<sup>1</sup>** | 0.22% | 0.18% | 0.05% |
| &nbsp;&nbsp;&nbsp;**Other expenses** | 0.01% | 0.01% | 0.01% |
| **Total Other expenses** | 0.23% | 0.19% | 0.06% |
| **Total annual fund operating expenses**  | **1.23%** | **0.94%** | **0.81%** |

---

<sup>1</sup> Administration fees for Investor and Class I shares have been restated to reflect current expenses.

**EXPENSE EXAMPLE** 

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 Year** | **3 Years** | **5 Years** | **10 Years** |
| **Investor** | $125 | $390 | $676 | $1489 |
| **Class I** | 96 | 300 | 520 | 1155 |
| **Class Y** | 83 | 259 | 450 | 1002 |

---

**PORTFOLIO TURNOVER** 

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 44% of the average value of its portfolio.

**Principal Investment Strategy** 

The Fund, under normal market conditions, invests at least 80% of its net assets in U.S. equity securities with small and medium market capitalizations that Diamond Hill Capital Management, Inc. (the "Adviser") believes are undervalued. Equity securities consist of common and preferred stocks. Small and mid cap companies are defined as companies with market capitalizations at the time of purchase between $500 million and $10 billion or in the range of those market capitalizations of companies included in the Russell 2500<sup>®</sup> Index at the time of purchase. The capitalization range of the Russell 2500<sup>®</sup> Index is between $12.1 million and $84.5 billion as of January 31, 2026. The size of the companies included in the Russell 2500<sup>®</sup> Index will change with market conditions.

The Adviser focuses on estimating a company's value independent of its current stock price. To estimate a company's value, the Adviser focuses on the fundamental economic drivers of the business. The primary focus is on "bottom-up" analysis, which takes into consideration earnings, revenue growth, operating margins and other economic factors. The Adviser also considers the level of industry competition, the regulatory environment, the threat of technological obsolescence, and a variety of other industry factors. If the Adviser's estimate of a company's value differs sufficiently from the current market price, the company may be an attractive investment opportunity. In constructing a portfolio of securities, the Adviser is not constrained by the sector or industry weights in the benchmark. The Adviser relies on individual stock selection and discipline in the investment process to add value. The highest portfolio security weights are assigned to companies where the Adviser has the highest level of conviction.

Once a holding is selected, the Adviser continues to monitor the company's strategies, financial performance and competitive environment. The Adviser may sell a security as it reaches the Adviser's estimate of the company's value if it believes that the company's earnings, revenue growth, operating margin or other economic factors are deteriorating; or, if it identifies a stock that it believes offers a better investment opportunity.

---

| | |
|:---|:---|
| **4** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

---

---

| | |
|:---|:---|
| **Diamond Hill Small-Mid Cap Fund Summary** | As of February 28, 2026 |

---

**Main Risks** 

All investments carry a certain amount of risk, and the Fund cannot guarantee that it will achieve its investment objective. An investment in the Fund is not a deposit or obligation of any bank, is not endorsed or guaranteed by any bank, and is not insured by the Federal Deposit Insurance Corporation or any other government agency. You may lose money by investing in the Fund. Below are the main risks of investing in the Fund. All of the risks listed below are significant to the Fund, regardless of the order in which they appear.

**Current Market Environment Risk** Various sectors of the financial markets may experience an extended period of adverse conditions. Market uncertainty can increase dramatically, and these conditions may result in disruptions of the equity markets, periods of reduced liquidity, greater general volatility, and a contraction of availability of credit and lack of price transparency.

**Management Risk** The Adviser's judgments about the attractiveness, value, and potential appreciation of a particular asset class or individual security in which the Fund invests may prove to be incorrect, and there is no guarantee that individual companies will perform as anticipated. The value of an individual company can be more volatile than the market as a whole, and the Adviser's intrinsic value-oriented approach may fail to produce the intended results.

**Market Risk** The value of the Fund's investments may decrease, sometimes rapidly or unexpectedly, due to factors affecting an issuer held by the Fund, particular industries or overall securities markets. When the value of the Fund's investments goes down, your investment in the Fund decreases in value. A variety of factors including interest rate levels, recessions, inflation, U.S. economic growth, war or acts of terrorism, natural disasters, political events, supply chain disruptions, trade barriers, staff shortages and widespread public health issues affect the securities markets. These events may cause volatility, severe market dislocations and liquidity constraints in many markets, including markets for the securities the Fund holds, and may adversely affect the Fund's investments and operations. In addition, governmental responses to these events may negatively impact the capabilities of the Fund's service providers, disrupt the Fund's operations, result in substantial market volatility and adversely impact the prices and liquidity of the Fund's investments.

**Small Cap and Mid Cap Company Risk** Investments in small and mid cap companies may be riskier than investments in larger, more established companies. The securities of these companies may trade less frequently and in smaller volumes than securities of larger companies. In addition, small and mid cap companies may be more vulnerable to economic, market and industry changes. As a result, share price changes may be more sudden or erratic than the prices of other equity securities, especially over the short-term. Because smaller companies may have limited product lines, markets or financial resources or may depend on a few key employees, they may be more susceptible to particular economic events or competitive factors than large capitalization companies.

**Performance** 

The following bar chart and table show two aspects of the Fund: volatility and performance. The bar chart shows the volatility — or variability — of the Fund's annual total returns over time, and shows that Fund performance can change from year to year. The table shows the Fund's average annual total returns for certain time periods compared to the returns of a broad-based securities market index and a supplemental index. The bar chart and table provide some indication of the risks of investing in the Fund. Of course, the Fund's past performance (before and after taxes) is not necessarily an indication of its future performance. *Updated performance information is available by visiting www.diamond-hill.com or by calling 888-226-5595.* 

**CLASS I ANNUAL TOTAL RETURN-YEARS ENDED 12/31** 

---

| | |
|:---|:---|
| **Best Quarter:** | 4Q 2020, +23.26% |
| **Worst Quarter:** | 1Q 2020, -35.83% |

---

**AVERAGE ANNUAL TOTAL RETURNS AS OF 12/31/25** 

After-tax returns are calculated using the highest historical individual federal marginal income tax rate and do not reflect the impact of state and local taxes. Actual after-tax returns depend on a shareholder's tax situation and may differ from those shown. After-tax returns are not relevant for shareholders who hold Fund shares in tax-deferred accounts or to shares held by non-taxable entities. After-tax returns are shown for Class I shares only and will vary from the after-tax returns for the other share classes.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Inception <br> Date of <br> Class** | **One Year** | **Five Year** | **Ten Year** |
| **Class I** Before Taxes | 12/30/05 | 8.63% | 8.20% | 7.98% |
| &nbsp;&nbsp;&nbsp;After Taxes on Distributions |  | 7.16 | 6.89 | 6.92 |
| &nbsp;&nbsp;&nbsp;After Taxes on Distributions and Sale of Fund Shares |  | 6.18 | 6.36 | 6.32 |
| **Investor** Before Taxes | 12/30/05 | 8.33 | 7.89 | 7.66 |
| **Class Y** Before Taxes | 12/30/11 | 8.76 | 8.32 | 8.11 |
| Russell 3000<sup>®</sup> Index |  | 17.15 | 13.15 | 14.29 |
| Russell 2500<sup>®</sup> Index |  | 11.91 | 7.26 | 10.40 |

---

**DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM**<sub>5</sub>

---

| | |
|:---|:---|
| **Diamond Hill Small-Mid Cap Fund Summary** | As of February 28, 2026 |

---

The Fund's broad-based securities market index is the Russell 3000<sup>®</sup> Index, which measures the performance of roughly 3,000 of the largest U.S. companies based on total market capitalization.

The Russell 2500<sup>®</sup> Index represents an index of securities that reflect the market sectors in which the Fund invests and is utilized by the Adviser for measuring performance. The Russell 2500<sup>®</sup> Index measures the performance of roughly 2,500 U.S. small to mid-cap companies.

The indexes are unmanaged, market capitalization weighted, include net reinvested dividends, do not reflect fees or expenses (which would lower the return), and are not available for direct investment.

**Portfolio Management** 

**Investment Adviser** Diamond Hill Capital Management, Inc.

**Portfolio Managers** Christopher Welch

Portfolio Manager

since 12/2005

Anthony Philipp

Portfolio Manager

Since 12/2025

**Buying and Selling Fund Shares** 

**Minimum Initial Investment** Investor and Class I: $2,500

Class Y: $500,000

---

| | |
|:---|:---|
| **To Place Orders** | **Regular Mail:** <br> Diamond Hill Small-Mid Cap Fund <br>P.O. Box 46707 <br>Cincinnati, OH 45246 <br>Phone: 888-226-5595 |
|  | **Overnight Delivery:** <br>Diamond Hill Small-Mid Cap Fund <br>225 Pictoria Drive, Suite 450 <br>Cincinnati, OH 45246 <br>Phone: 888-226-5595 |

---

**Transaction Policies** 

In general, you can buy or sell (redeem) shares of the Fund by mail or phone on any business day. You can generally pay for shares by check or wire. You may be charged wire fees or other transaction fees; ask your financial professional. When selling shares, you will receive a check, unless you request a wire. You may also buy and sell shares through a financial professional.

**Dividends, Capital Gains and Taxes** 

The Fund's distributions may be taxable as ordinary income or capital gains, except when your investment is in an IRA, 401(k) or other tax-advantaged investment plan. However, you may be subject to tax when you withdraw monies from a tax-advantaged plan.

**Payments to Broker-Dealers and Other Financial Intermediaries** 

If you purchase shares (other than Class Y shares) through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary's web site for more information.

---

| | |
|:---|:---|
| **6** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

---

![](diamondhill_07.jpg)

---

| | | | |
|:---|:---|:---|:---|
| **Class** | **Investor** | **I** | **Y** |
| Ticker | DHPAX | DHPIX | DHPYX |

---

**Investment Objective** 

The investment objective of the Diamond Hill Mid Cap Fund (the "Fund" or the "Mid Cap Fund") is to provide long-term capital appreciation.

**Fees and Expenses of the Fund** 

This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

---

| |
|:---|
| **SHAREHOLDER FEES (fees paid directly from your investment)** |
| **None** |

---

---

| | | | |
|:---|:---|:---|:---|
| **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** |
| | **Investor** | **Class I** | **Class Y** |
| **Management fees** | 0.60%  | 0.60% | 0.60%  |
| **Distribution (12b-1) fees** | 0.25%  |  |  |
| **Other expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp;**Administration fees<sup>1</sup>** | 0.22% | 0.18% | 0.05% |
| &nbsp;&nbsp;&nbsp;**Other expenses** | 0.02% | 0.02% | 0.02% |
| **Total Other expenses** | 0.24%  | 0.20%  | 0.07%  |
| **Total annual fund operating expenses** | **1.09%**  | **0.80%** | **0.67%**  |

---

<sup>1</sup> Administration fees for Investor and Class I shares have been restated to reflect current expenses.

**EXPENSE EXAMPLE** 

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 Year** | **3 Years** | **5 Years** | **10 Years** |
| **Investor** | $111 | $347 | $601 | $1329 |
| **Class I** | 82 | 255 | 444 | 990 |
| **Class Y** | 68 | 214 | 373 | 835 |

---

**PORTFOLIO TURNOVER** 

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 33% of the average value of its portfolio.

**Principal Investment Strategy** 

The Fund, under normal market conditions, invests at least 80% of its net assets in U.S. equity securities with medium market capitalizations that Diamond Hill Capital Management, Inc. (the "Adviser") believes are undervalued. Equity securities consist of common and preferred stocks. Mid cap companies are defined as companies with market capitalizations at the time of purchase between $1.5 billion and $20 billion or in the range of those market capitalizations of companies included in the Russell Midcap<sup>®</sup> Index at the time of purchase. The capitalization range of the Russell Midcap<sup>®</sup> Index is between $1.2 billion and $89.5 billion as of January 31, 2026. The size of the companies included in the Russell Midcap<sup>®</sup> Index will change with market conditions.

The Adviser focuses on estimating a company's value independent of its current stock price. To estimate a company's value, the Adviser focuses on the fundamental economic drivers of the business. The primary focus is on "bottom-up" analysis, which takes into consideration earnings, revenue growth, operating margins and other economic factors. The Adviser also considers the level of industry competition, the regulatory environment, the threat of technological obsolescence, and a variety of other industry factors. If the Adviser's estimate of a company's value differs sufficiently from the current market price, the company may be an attractive investment opportunity. In constructing a portfolio of securities, the Adviser is not constrained by the sector or industry weights in the benchmark. The Adviser relies on individual stock selection and discipline in the investment process to add value. The highest portfolio security weights are assigned to companies where the Adviser has the highest level of conviction.

Once a holding is selected, the Adviser continues to monitor the company's strategies, financial performance and competitive environment. The Adviser may sell a security as it reaches the Adviser's estimate of the company's value if it believes that the company's earnings, revenue growth, operating margin or other economic factors are deteriorating or if it identifies a stock that it believes offers a better investment opportunity.

**DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM**<sub>7</sub>

---

| | |
|:---|:---|
| **Diamond Hill Mid Cap Fund Summary** | As of February 28, 2026 |

---

**Main Risks** 

All investments carry a certain amount of risk, and the Fund cannot guarantee that it will achieve its investment objective. An investment in the Fund is not a deposit or obligation of any bank, is not endorsed or guaranteed by any bank, and is not insured by the Federal Deposit Insurance Corporation or any other government agency. You may lose money by investing in the Fund. Below are the main risks of investing in the Fund. All of the risks listed below are significant to the Fund, regardless of the order in which they appear.

**Current Market Environment Risk** Various sectors of the financial markets may experience an extended period of adverse conditions. Market uncertainty can increase dramatically, and these conditions may result in disruptions of the equity markets, periods of reduced liquidity, greater general volatility, and a contraction of availability of credit and lack of price transparency.

**Management Risk** The Adviser's judgments about the attractiveness, value, and potential appreciation of a particular asset class or individual security in which the Fund invests may prove to be incorrect, and there is no guarantee that individual companies will perform as anticipated. The value of an individual company can be more volatile than the market as a whole, and the Adviser's intrinsic value-oriented approach may fail to produce the intended results.

**Market Risk** The value of the Fund's investments may decrease, sometimes rapidly or unexpectedly, due to factors affecting an issuer held by the Fund, particular industries or overall securities markets. When the value of the Fund's investments goes down, your investment in the Fund decreases in value. A variety of factors including interest rate levels, recessions, inflation, U.S. economic growth, war or acts of terrorism, natural disasters, political events, supply chain disruptions, trade barriers, staff shortages and widespread public health issues affect the securities markets. These events may cause volatility, severe market dislocations and liquidity constraints in many markets, including markets for the securities the Fund holds, and may adversely affect the Fund's investments and operations. In addition, governmental responses to these events may negatively impact the capabilities of the Fund's service providers, disrupt the Fund's operations, result in substantial market volatility and adversely impact the prices and liquidity of the Fund's investments.

**Mid Cap Company Risk** Investments in mid cap companies may be riskier than investments in larger, more established companies. The securities of these companies may trade less frequently and in smaller volumes than securities of larger companies. In addition, mid cap companies may be more vulnerable to economic, market and industry changes. As a result, share price changes may be more sudden or erratic than the prices of other equity securities, especially over the short-term. Because smaller companies may have limited product lines, markets or financial resources or may depend on a few key employees, they may be more susceptible to particular economic events or competitive factors than large capitalization companies.

**Performance** 

The following bar chart and table show two aspects of the Fund: volatility and performance. The bar chart shows the volatility — or variability — of the Fund's annual total returns over time, and shows that Fund performance can change from year to year. The table shows the Fund's average annual total returns for certain time periods compared to the returns of a broad-based securities market index and a supplemental index. The bar chart and table provide some indication of the risks of investing in the Fund. Of course, the Fund's past performance (before and after taxes) is not necessarily an indication of its future performance. *Updated performance information is available by visiting www.diamond-hill.com or by calling 888-226-5595.* 

**CLASS I ANNUAL TOTAL RETURN-YEARS ENDED 12/31** 

---

| | |
|:---|:---|
| **Best Quarter:** | 4Q 2020, +22.19% |
| **Worst Quarter:** | 1Q 2020, -36.76% |

---

**AVERAGE ANNUAL TOTAL RETURNS AS OF 12/31/25** 

After-tax returns are calculated using the highest historical individual federal marginal income tax rate and do not reflect the impact of state and local taxes. Actual after-tax returns depend on a shareholder's tax situation and may differ from those shown. After-tax returns are not relevant for shareholders who hold Fund shares in tax-deferred accounts or to shares held by non-taxable entities. After-tax returns are shown for Class I shares only and will vary from the after-tax returns for the other share classes.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Inception <br> Date of <br> Class** | **One Year** | **Five Year** | **Ten Year** |
| **Class I** Before Taxes | 12/31/13 | 13.37% | 9.35% | 8.54% |
| &nbsp;&nbsp;&nbsp;After Taxes on Distributions |  | 9.16 | 7.66 | 7.48 |
| &nbsp;&nbsp;&nbsp;After Taxes on Distributions and Sale of Fund Shares |  | 10.95 | 7.30 | 6.86 |
| **Investor** Before Taxes | 12/31/13 | 13.10 | 9.04 | 8.23 |
| **Class Y** Before Taxes | 12/31/13 | 13.63 | 9.50 | 8.68 |
| Russell 3000<sup>®</sup> Index |  | 17.15 | 13.15 | 14.29 |
| Russell Midcap<sup>®</sup> Index |  | 10.60 | 8.67 | 11.01 |

---

---

| | |
|:---|:---|
| **8** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

---

---

| | |
|:---|:---|
| **Diamond Hill Mid Cap Fund Summary** | As of February 28, 2026 |

---

The Fund's broad-based securities market index is the Russell 3000<sup>®</sup> Index, which measures the performance of roughly 3,000 of the largest U.S. companies based on total market capitalization.

The Russell Midcap<sup>®</sup> Index represents an index of securities that reflect the market sectors in which the Fund invests and is utilized by the Adviser for measuring performance. The Russell Midcap<sup>®</sup> Index measures the performance of roughly 800 U.S. mid-cap companies.

The indexes are unmanaged, market capitalization weighted, include net reinvested dividends, do not reflect fees or expenses (which would lower the return), and are not available for direct investment.

**Portfolio Management** 

**Investment Adviser** Diamond Hill Capital Management, Inc.

**Portfolio Managers** Christopher Welch

Portfolio Manager

Since 12/2013

Anthony Philipp

Portfolio Manager

Since 12/2025

**Buying and Selling Fund Shares** 

**Minimum Initial Investment** Investor and Class I: $2,500

Class Y: $500,000

---

| | |
|:---|:---|
| **To Place Orders** | **Regular Mail:** <br> Diamond Hill Mid Cap Fund <br>P.O. Box 46707 <br>Cincinnati, OH 45246 <br>Phone: 888-226-5595 |
|  | **Overnight Delivery:** <br>Diamond Hill Mid Cap Fund <br>225 Pictoria Drive, Suite 450 <br>Cincinnati, OH 45246 <br>Phone: 888-226-5595 |

---

**Transaction Policies** 

In general, you can buy or sell (redeem) shares of the Fund by mail or phone on any business day. You can generally pay for shares by check or wire. You may be charged wire fees or other transaction fees; ask your financial professional. When selling shares, you will receive a check, unless you request a wire. You may also buy and sell shares through a financial professional.

**Dividends, Capital Gains and Taxes** 

The Fund's distributions may be taxable as ordinary income or capital gains, except when your investment is in an IRA, 401(k) or other tax-advantaged investment plan. However, you may be subject to tax when you withdraw monies from a tax-advantaged plan.

**Payments to Broker-Dealers and Other Financial Intermediaries** 

If you purchase shares (other than Class Y shares) through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary's web site for more information.

**DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM**<sub>9</sub>

![](diamondhill_09.jpg)

---

| | | | |
|:---|:---|:---|:---|
| **Class** | **Investor** | **I** | **Y** |
| Ticker | DHLAX | DHLRX | DHLYX |

---

**Investment Objective** 

The investment objective of the Diamond Hill Large Cap Fund (the "Fund" or the "Large Cap Fund") is to provide long-term capital appreciation.

**Fees and Expenses of the Fund** 

This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

---

| |
|:---|
| **SHAREHOLDER FEES (fees paid directly from your investment)** |
| **None** |

---

---

| | | | |
|:---|:---|:---|:---|
| **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** |
| | **Investor** | **Class I** | **Class Y** |
| **Management fees** | 0.50% | 0.50% | 0.50% |
| **Distribution (12b-1) fees** | 0.25% |  |  |
| **Other expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp;**Administration fees<sup>1</sup>** | 0.22% | 0.18% | 0.05% |
| &nbsp;&nbsp;&nbsp;**Other expenses** | 0.01% | 0.01% | 0.01% |
| **Total Other expenses** | 0.23% | 0.19% | 0.06% |
| **Total annual fund operating expenses** | **0.98%** | **0.69%** | **0.56%** |

---

<sup>1</sup> Administration fees for Investor and Class I shares have been restated to reflect current expenses.

**EXPENSE EXAMPLE** 

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 Year** | **3 Years** | **5 Years** | **10 Years** |
| **Investor** | $100 | $312 | $542 | $1201 |
| **Class I** | 70 | 221 | 384 | 859 |
| **Class Y** | 57 | 179 | 313 | 701 |

---

**PORTFOLIO TURNOVER** 

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 45% of the average value of its portfolio.

**Principal Investment Strategy** 

The Fund, under normal market conditions, invests at least 80% of its net assets in U.S. equity securities with large market capitalizations ("large cap") that Diamond Hill Capital Management, Inc. (the "Adviser") believes are undervalued. Equity securities consist of common and preferred stocks. Large cap companies are defined as companies with market capitalizations at the time of purchase of $5 billion or greater.

The Adviser focuses on estimating a company's value independent of its current stock price. To estimate a company's value, the Adviser focuses on the fundamental economic drivers of the business. The primary focus is on "bottom-up" analysis, which takes into consideration earnings, revenue growth, operating margins and other economic factors. The Adviser also considers the level of industry competition, the regulatory environment, the threat of technological obsolescence, and a variety of other industry factors. If the Adviser's estimate of a company's value differs sufficiently from the current market price, the company may be an attractive investment opportunity. In constructing a portfolio of securities, the Adviser is not constrained by the sector or industry weights in the benchmark. The Adviser relies on individual stock selection and discipline in the investment process to add value. The highest portfolio security weights are assigned to companies where the Adviser has the highest level of conviction.

Once a holding is selected, the Adviser continues to monitor the company's strategies, financial performance and competitive environment. The Adviser may sell a security as it reaches the Adviser's estimate of the company's value if it believes that the company's earnings, revenue growth, operating margin or other economic factors are deteriorating or if it identifies a stock that it believes offers a better investment opportunity.

**Main Risks** 

All investments carry a certain amount of risk, and the Fund cannot guarantee that it will achieve its investment objective. An investment in the Fund is not a deposit or obligation of any bank, is not endorsed or guaranteed by any bank, and is not insured by the Federal Deposit Insurance Corporation or any

---

| | |
|:---|:---|
| **10** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

---

---

| | |
|:---|:---|
| **Diamond Hill Large Cap Fund Summary** | As of February 28, 2026 |

---

other government agency. You may lose money by investing in the Fund. Below are the main risks of investing in the Fund. All of the risks listed below are significant to the Fund, regardless of the order in which they appear.

**Current Market Environment Risk** Various sectors of the financial markets may experience an extended period of adverse conditions. Market uncertainty can increase dramatically, and these conditions may result in disruptions of the equity markets, periods of reduced liquidity, greater general volatility, and a contraction of availability of credit and lack of price transparency.

**Management Risk** The Adviser's judgments about the attractiveness, value, and potential appreciation of a particular asset class or individual security in which the Fund invests may prove to be incorrect, and there is no guarantee that individual companies will perform as anticipated. The value of an individual company can be more volatile than the market as a whole, and the Adviser's intrinsic value-oriented approach may fail to produce the intended results.

**Market Risk** The value of the Fund's investments may decrease, sometimes rapidly or unexpectedly, due to factors affecting an issuer held by the Fund, particular industries or overall securities markets. When the value of the Fund's investments goes down, your investment in the Fund decreases in value. A variety of factors including interest rate levels, recessions, inflation, U.S. economic growth, war or acts of terrorism, natural disasters, political events, supply chain disruptions, trade barriers, staff shortages and widespread public health issues affect the securities markets. These events may cause volatility, severe market dislocations and liquidity constraints in many markets, including markets for the securities the Fund holds, and may adversely affect the Fund's investments and operations. In addition, governmental responses to these events may negatively impact the capabilities of the Fund's service providers, disrupt the Fund's operations, result in substantial market volatility and adversely impact the prices and liquidity of the Fund's investments.

**Performance** 

The following bar chart and table show two aspects of the Fund: volatility and performance. The bar chart shows the volatility — or variability — of the Fund's annual total returns over time, and shows that Fund performance can change from year to year. The table shows the Fund's average annual total returns for certain time periods compared to the returns of a broad-based securities market index and two supplemental indexes. The bar chart and table provide some indication of the risks of investing in the Fund. Of course, the Fund's past performance (before and after taxes) is not necessarily an indication of its future performance. *Updated performance information is available by visiting www.diamond-hill.com or by calling 888-226-5595.* 

**CLASS I ANNUAL TOTAL RETURN-YEARS ENDED 12/31** 

---

| | |
|:---|:---|
| **Best Quarter:** | 2Q 2020, +18.06% |
| **Worst Quarter:** | 1Q 2020, -26.82% |

---

**AVERAGE ANNUAL TOTAL RETURNS AS OF 12/31/25** 

After-tax returns are calculated using the highest historical individual federal marginal income tax rate and do not reflect the impact of state and local taxes. Actual after-tax returns depend on a shareholder's tax situation and may differ from those shown. After-tax returns are not relevant for shareholders who hold Fund shares in tax-deferred accounts or to shares held by non-taxable entities. After-tax returns are shown for Class I shares only and will vary from the after-tax returns for the other share classes.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Inception <br> Date of <br> Class** | **One Year** | **Five Year** | **Ten Year** |
| **Class I** Before Taxes | 1/31/05 | 5.65% | 7.96% | 10.16% |
| &nbsp;&nbsp;&nbsp;After Taxes on Distributions |  | 4.15 | 6.29 | 8.70 |
| &nbsp;&nbsp;&nbsp;After Taxes on Distributions and Sale of Fund Shares |  | 4.42 | 6.13 | 8.09 |
| **Investor** Before Taxes | 6/29/01 | 5.33 | 7.64 | 9.84 |
| **Class Y** Before Taxes | 12/30/11 | 5.74 | 8.08 | 10.28 |
| Russell 3000<sup>®</sup> Index |  | 17.15 | 13.15 | 14.29 |
| Russell 1000<sup>®</sup> Value Index |  | 15.91 | 11.33 | 10.53 |
| Russell 1000<sup>®</sup> Index |  | 17.37 | 13.59 | 14.59 |

---

The Fund's broad-based securities market index is the Russell 3000<sup>®</sup> Index, which measures the performance of roughly 3,000 of the largest U.S. companies based on total market capitalization.

The Russell 1000<sup>®</sup> Value Index represents the index of securities that is utilized by the Adviser for measuring performance. The Russell 1000<sup>®</sup> Value Index and the Russell 1000<sup>®</sup> Index represent indexes of securities that reflect the market sectors in which the Fund may invest.

The Russell 1000<sup>®</sup> Value Index measures the performance of U.S. large- cap companies with lower price/book ratios and forecasted growth values. The Russell 1000<sup>®</sup> Index measures the performance of roughly 1,000 U.S. large-cap companies.

**DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM**<sub>11</sub>

---

| | |
|:---|:---|
| **Diamond Hill Large Cap Fund Summary** | As of February 28, 2026 |

---

The indexes are unmanaged, market capitalization weighted, include net reinvested dividends, do not reflect fees or expenses (which would lower the return), and are not available for direct investment.

**Portfolio Management** 

**Investment Adviser** Diamond Hill Capital Management, Inc.

**Portfolio Manager** Austin Hawley

Portfolio Manager

since 2/2015

**Buying and Selling Fund Shares** 

**Minimum Initial Investment** Investor and Class I: $2,500

Class Y: $500,000

---

| | |
|:---|:---|
| **To Place Orders** | **Regular Mail:** <br> Diamond Hill Large Cap Fund <br>P.O. Box 46707 <br>Cincinnati, OH 45246 <br>Phone: 888-226-5595 |
|  | **Overnight Delivery:** <br>Diamond Hill Large Cap Fund <br>225 Pictoria Drive, Suite 450 <br>Cincinnati, OH 45246 <br>Phone: 888-226-5595 |

---

**Transaction Policies** 

In general, you can buy or sell (redeem) shares of the Fund by mail or phone on any business day. You can generally pay for shares by check or wire. You may be charged wire fees or other transaction fees; ask your financial professional. When selling shares, you will receive a check, unless you request a wire. You may also buy and sell shares through a financial professional.

**Dividends, Capital Gains and Taxes** 

The Fund's distributions may be taxable as ordinary income or capital gains, except when your investment is in an IRA, 401(k) or other tax-advantaged investment plan. However, you may be subject to tax when you withdraw monies from a tax-advantaged plan.

**Payments to Broker-Dealers and Other Financial Intermediaries** 

If you purchase shares (other than Class Y shares) through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary's web site for more information.

---

| | |
|:---|:---|
| **12** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

---

![](diamondhill_11.jpg)

---

| | | | |
|:---|:---|:---|:---|
| **Class** | **Investor** | **I** | **Y** |
| Ticker | DHTAX | DHLTX | DHTYX |

---

**Investment Objective** 

The investment objective of the Diamond Hill Select Fund (the "Fund" or the "Select Fund") is to provide long-term capital appreciation.

**Fees and Expenses of the Fund** 

This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

---

| |
|:---|
| **SHAREHOLDER FEES (fees paid directly from your investment)** |
| **None** |

---

---

| | | | |
|:---|:---|:---|:---|
| **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** |
| | **Investor** | **Class I** | **Class Y** |
| **Management fees** | 0.70% | 0.70% | 0.70% |
| **Distribution (12b-1) fees** | 0.25% |  |  |
| **Other expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp;**Administration fees<sup>1</sup>** | 0.22% | 0.18% | 0.05% |
| &nbsp;&nbsp;&nbsp;**Other expenses** | 0.01% | 0.01% | 0.01% |
| **Total Other expenses** | 0.23% | 0.19% | 0.06% |
| **Total annual fund operating expenses** | **1.18%** | **0.89%** | **0.76%** |

---

<sup>1</sup> Administration fees for Investor and Class I shares have been restated to reflect current expenses.

**EXPENSE EXAMPLE** 

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 Year** | **3 Years** | **5 Years** | **10 Years** |
| **Investor** | $120 | $375 | $649 | $1432 |
| **Class I** | 91 | 284 | 493 | 1096 |
| **Class Y** | 78 | 243 | 422 | 942 |

---

**PORTFOLIO TURNOVER** 

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 50% of the average value of its portfolio.

**Principal Investment Strategy** 

The Fund, under normal market conditions, invests its assets in U.S. equity securities of any size capitalization that Diamond Hill Capital Management, Inc. (the "Adviser") believes are undervalued. Equity securities consist of common and preferred stocks. The Fund is non-diversified and intends to focus its investments in a limited number of securities.

The Adviser focuses on estimating a company's value independent of its current stock price. To estimate a company's value, the Adviser focuses on the fundamental economic drivers of the business. The primary focus is on "bottom-up" analysis, which takes into consideration earnings, revenue growth, operating margins and other economic factors. The Adviser also considers the level of industry competition, the regulatory environment, the threat of technological obsolescence, and a variety of other industry factors. If the Adviser's estimate of a company's value differs sufficiently from the current market price, the company may be an attractive investment opportunity. In constructing a portfolio of securities, the Adviser is not constrained by the sector or industry weights in the benchmark. The Adviser relies on individual stock selection and discipline in the investment process to add value. The highest portfolio security weights are assigned to companies where the Adviser has the highest level of conviction.

Once a holding is selected, the Adviser continues to monitor the company's strategies, financial performance and competitive environment. The Adviser may sell a security as it reaches the Adviser's estimate of the company's value if it believes that the company's earnings, revenue growth, operating margin or other economic factors are deteriorating or if it identifies a stock that it believes offers a better investment opportunity.

**Main Risks** 

All investments carry a certain amount of risk, and the Fund cannot guarantee that it will achieve its investment objective. An investment in the Fund is not a deposit or obligation of any bank, is not endorsed or guaranteed by any bank, and is not insured by the Federal Deposit Insurance Corporation or any other government agency. You may lose money by investing in

**DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM**<sub>13</sub>

---

| | |
|:---|:---|
| **Diamond Hill Select Fund Summary** | As of February 28, 2026 |

---

the Fund. Below are the main risks of investing in the Fund. All of the risks listed below are significant to the Fund, regardless of the order in which they appear.

**Current Market Environment Risk** Various sectors of the financial markets may experience an extended period of adverse conditions. Market uncertainty can increase dramatically, and these conditions may result in disruptions of the equity markets, periods of reduced liquidity, greater general volatility, and a contraction of availability of credit and lack of price transparency.

**Focused Portfolio Risk** The Fund may have more volatility and is considered to have more risk than a Fund that invests in securities of a greater number of issuers because changes in the value of a single issuer's security may have a more significant effect, either positive or negative, on the Fund's net asset value.

**Management Risk** The Adviser's judgments about the attractiveness, value, and potential appreciation of a particular asset class or individual security in which the Fund invests may prove to be incorrect, and there is no guarantee that individual companies will perform as anticipated. The value of an individual company can be more volatile than the market as a whole, and the Adviser's intrinsic value-oriented approach may fail to produce the intended results.

**Market Risk** The value of the Fund's investments may decrease, sometimes rapidly or unexpectedly, due to factors affecting an issuer held by the Fund, particular industries or overall securities markets. When the value of the Fund's investments goes down, your investment in the Fund decreases in value. A variety of factors including interest rate levels, recessions, inflation, U.S. economic growth, war or acts of terrorism, natural disasters, political events, supply chain disruptions, trade barriers, staff shortages and widespread public health issues affect the securities markets. These events may cause volatility, severe market dislocations and liquidity constraints in many markets, including markets for the securities the Fund holds, and may adversely affect the Fund's investments and operations. In addition, governmental responses to these events may negatively impact the capabilities of the Fund's service providers, disrupt the Fund's operations, result in substantial market volatility and adversely impact the prices and liquidity of the Fund's investments.

**Sector Emphasis Risk** The Fund, from time to time, may invest 25% or more of its assets in one or more sectors, subjecting the Fund to sector emphasis risk. This risk is that the Fund is subject to a greater risk of loss due to adverse economic, business or other developments affecting a specific sector in which the Fund has a focused position, than if its investments were diversified across a greater number of industry sectors. Some sectors possess particular risks that may not affect other sectors.

**Small Cap and Mid Cap Company Risk** Investments in small and mid cap companies may be riskier than investments in larger, more established companies. The securities of these companies may trade less frequently and in smaller volumes than securities of larger companies. In addition, small and mid cap companies may be more vulnerable to economic,

market and industry changes. As a result, share price changes may be more sudden or erratic than the prices of other equity securities, especially over the short-term. Because smaller companies may have limited product lines, markets or financial resources or may depend on a few key employees, they may be more susceptible to particular economic events or competitive factors than large capitalization companies.

**Performance** 

The following bar chart and table show two aspects of the Fund: volatility and performance. The bar chart shows the volatility — or variability — of the Fund's annual total returns over time, and shows that Fund performance can change from year to year. The table shows the Fund's average annual total returns for certain time periods compared to the returns of a broad-based securities market index. The bar chart and table provide some indication of the risks of investing in the Fund. Of course, the Fund's past performance (before and after taxes) is not necessarily an indication of its future performance. *Updated performance information is available by visiting www.diamond-hill.com or by calling 888-226-5595.* 

**CLASS I ANNUAL TOTAL RETURN-YEARS ENDED 12/31** 

---

| | |
|:---|:---|
| **Best Quarter:** | 4Q 2020, +24.65% |
| **Worst Quarter:** | 1Q 2020, -34.01% |

---

---

| | |
|:---|:---|
| **14** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

---

---

| | |
|:---|:---|
| **Diamond Hill Select Fund Summary** | As of February 28, 2026 |

---

**AVERAGE ANNUAL TOTAL RETURNS AS OF 12/31/25** 

After-tax returns are calculated using the highest historical individual federal marginal income tax rate and do not reflect the impact of state and local taxes. Actual after-tax returns depend on a shareholder's tax situation and may differ from those shown. After-tax returns are not relevant for shareholders who hold Fund shares in tax-deferred accounts or to shares held by non-taxable entities. After-tax returns are shown for Class I shares only and will vary from the after-tax returns for the other share classes.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Inception <br> Date of <br> Class** | **One Year** | **Five Year** | **Ten Year** |
| **Class I** Before Taxes | 12/30/05 | 13.58% | 13.13% | 12.41% |
| &nbsp;&nbsp;&nbsp;After Taxes on Distributions |  | 11.51 | 11.37 | 11.14 |
| &nbsp;&nbsp;&nbsp;After Taxes on Distributions and Sale of Fund Shares |  | 9.55 | 10.18 | 10.01 |
| **Investor** Before Taxes | 12/30/05 | 13.29 | 12.79 | 12.08 |
| **Class Y** Before Taxes | 12/30/11 | 13.72 | 13.26 | 12.54 |
| Russell 3000<sup>®</sup> Index |  | 17.15 | 13.15 | 14.29 |

---

The Fund's broad-based securities market index is the Russell 3000<sup>®</sup> Index, which measures the performance of roughly 3,000 of the largest U.S. companies based on total market capitalization. The Russell 3000<sup>®</sup> Index also represents an index of securities that reflect the market sectors in which the Fund invests and is utilized by the Adviser for measuring performance.

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.

**Portfolio Management** 

**Investment Adviser** Diamond Hill Capital Management, Inc.

**Portfolio Managers** Austin Hawley

Portfolio Manager

since 1/2013

Richard Snowdon

Portfolio Manager

since 1/2013

**Buying and Selling Fund Shares** 

**Minimum Initial Investment** Investor and Class I: $2,500

Class Y: $500,000

---

| | |
|:---|:---|
| **To Place Orders** | **Regular Mail:** <br> Diamond Hill Select Fund <br>P.O. Box 46707 <br>Cincinnati, OH 45246 <br>Phone: 888-226-5595 |
|  | **Overnight Delivery:** <br>Diamond Hill Select Fund <br>225 Pictoria Drive, Suite 450 <br>Cincinnati, OH 45246 <br>Phone: 888-226-5595 |

---

**Transaction Policies** 

In general, you can buy or sell (redeem) shares of the Fund by mail or phone on any business day. You can generally pay for shares by check or wire. You may be charged wire fees or other transaction fees; ask your financial professional. When selling shares, you will receive a check, unless you request a wire. You may also buy and sell shares through a financial professional.

**Dividends, Capital Gains and Taxes** 

The Fund's distributions may be taxable as ordinary income or capital gains, except when your investment is in an IRA, 401(k) or other tax-advantaged investment plan. However, you may be subject to tax when you withdraw monies from a tax-advantaged plan.

**Payments to Broker-Dealers and Other Financial Intermediaries** 

If you purchase shares (other than Class Y shares) through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary's web site for more information.

---

| | |
|:---|:---|
| **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** | **15** |

---

![](diamondhill_13.jpg)

---

| | | | |
|:---|:---|:---|:---|
| **Class** | **Investor** | **I** | **Y** |
| Ticker | DIAMX | DHLSX | DIAYX |

---

**Investment Objective** 

The investment objective of the Diamond Hill Long-Short Fund (the "Fund" or the "Long-Short Fund") is to provide long-term capital appreciation.

**Fees and Expenses of the Fund** 

This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

---

| |
|:---|
| **SHAREHOLDER FEES (fees paid directly from your investment)** |
| **None** |

---

---

| | | | |
|:---|:---|:---|:---|
| **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** |
| | **Investor** | **Class I** | **Class Y** |
| **Management fees** | 0.90% | 0.90% | 0.90% |
| **Distribution (12b-1) fees** | 0.25% |  |  |
| **Other expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp;**Administration fees<sup>1</sup>** | 0.22% | 0.18% | 0.05% |
| &nbsp;&nbsp;&nbsp;**Dividend expenses and fees on short sales** | 0.32% | 0.32% | 0.32% |
| **Total other expenses** | 0.54% | 0.50% | 0.37% |
| **Acquired fund fees and expenses<sup>2</sup>** | 0.01% | 0.01% | 0.01% |
| **Total annual fund operating expenses**  | **1.70%** | **1.41%** | **1.28%** |

---

<sup>1</sup> Administration fees for Investor and Class I shares have been restated to reflect current expenses.

<sup>2</sup> Total annual operating expenses shown in the table above do not correlate to the ratio of operating expenses to average net assets in the "Financial Highlights" section of this prospectus which reflect the operating expenses of the Fund and does not include acquired fund fees and expenses. 

**EXPENSE EXAMPLE** 

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and

that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 Year** | **3 Years** | **5 Years** | **10 Years** |
| **Investor** | $173 | $536 | $923 | $2009 |
| **Class I** | 144 | 446 | 771 | 1691 |
| **Class Y** | 130 | 406 | 702 | 1545 |

---

**PORTFOLIO TURNOVER** 

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 67% of the average value of its portfolio.

**Principal Investment Strategy** 

The Fund, under normal market conditions, invests its assets in U.S. equity securities of any size capitalization that Diamond Hill Capital Management, Inc. (the "Adviser") believes are undervalued and selling short U.S. equity securities of any size capitalization the Adviser believes are overvalued. Equity securities consist of common and preferred stocks.

The Adviser focuses on estimating a company's value independent of its current stock price. To estimate a company's value, the Adviser focuses on the fundamental economic drivers of the business. The primary focus is on "bottom-up" analysis, which takes into consideration earnings, revenue growth, operating margins and other economic factors. The Adviser also considers the level of industry competition, the regulatory environment, the threat of technological obsolescence, and a variety of other industry factors. If the Adviser's estimate of a company's value differs sufficiently from the current market price, the company may be an attractive investment opportunity. In constructing a portfolio of securities, the Adviser is not constrained by the sector or industry weights in the benchmark. The Adviser relies on individual stock selection and discipline in the investment process to add value. The highest portfolio security weights are assigned to companies where the Adviser has the highest level of conviction.

The Fund also will sell securities short. Short sales are effected when it is believed that the price of a particular security will decline, and involves the sale of a security which the Fund does not own in hopes of purchasing the same security at a later date at a lower price. To make delivery to the buyer, the 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. The frequency of

---

| | |
|:---|:---|
| **16** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

---

---

| | |
|:---|:---|
| **Diamond Hill Long-Short Fund Summary** | As of February 28, 2026 |

---

short sales will vary substantially in different periods, and it is not intended that any specified portion of the Fund's assets will as a matter of practice be invested in short sales. The Fund will not make a short sale if, immediately before the transaction, the market value of all securities sold short exceeds 40% of the value of the Fund's net assets.

Once a stock is purchased or sold short, the Adviser continues to monitor the company's strategies, financial performance and competitive environment. The Adviser may sell a security (or repurchase a security sold short) as it reaches the Adviser's estimate of the company's value if it believes that the company's earnings, revenue growth, operating margin or other economic factors are deteriorating (or improving in the case of a short sale); or, if it identifies a stock that it believes offers a better investment opportunity.

**Main Risks** 

All investments carry a certain amount of risk, and the Fund cannot guarantee that it will achieve its investment objective. An investment in the Fund is not a deposit or obligation of any bank, is not endorsed or guaranteed by any bank, and is not insured by the Federal Deposit Insurance Corporation or any other government agency. You may lose money by investing in the Fund. Below are the main risks of investing in the Fund. All of the risks listed below are significant to the Fund, regardless of the order in which they appear.

**Current Market Environment Risk** Various sectors of the financial markets may experience an extended period of adverse conditions. Market uncertainty can increase dramatically, and these conditions may result in disruptions of the equity markets, periods of reduced liquidity, greater general volatility, and a contraction of availability of credit and lack of price transparency.

**Management Risk** The Adviser's judgments about the attractiveness, value, and potential appreciation of a particular asset class or individual security in which the Fund invests may prove to be incorrect, and there is no guarantee that individual companies will perform as anticipated. The value of an individual company can be more volatile than the market as a whole, and the Adviser's intrinsic value-oriented approach may fail to produce the intended results. In addition, there is no guarantee that the use of long and short positions will succeed in limiting the Fund's exposure to stock market movements, sector-swings or other risk factors. The strategy used by the Fund involves complex securities transactions that involve risks different than direct equity investments.

**Market Risk** The value of the Fund's investments may decrease, sometimes rapidly or unexpectedly, due to factors affecting an issuer held by the Fund, particular industries or overall securities markets. When the value of the Fund's investments goes down, your investment in the Fund decreases in value. A variety of factors including interest rate levels, recessions, inflation, U.S. economic growth, war or acts of terrorism, natural disasters, political events, supply chain disruptions, trade barriers, staff shortages and widespread public health issues affect the securities markets. These events may cause volatility, severe market dislocations and

liquidity constraints in many markets, including markets for the securities the Fund holds, and may adversely affect the Fund's investments and operations. In addition, governmental responses to these events may negatively impact the capabilities of the Fund's service providers, disrupt the Fund's operations, result in substantial market volatility and adversely impact the prices and liquidity of the Fund's investments.

**Short Sale Risk** The Fund will incur a loss as a result of a short sale if the price of the security sold short increases in value between the date of the short sale and the date on which the Fund purchases the security to replace the borrowed security. In addition, a lender may request, or market conditions may dictate, that securities sold short be returned to the lender on short notice, and the Fund may have to buy the securities sold short at an unfavorable price. If this occurs, any anticipated gain to the Fund may be reduced or eliminated or the short sale may result in a loss. The Fund's losses are potentially unlimited in a short sale transaction. Short sales are speculative transactions and involve special risks, including greater reliance on the Adviser's ability to accurately anticipate the future value of a security.

**Small Cap and Mid Cap Company Risk** Investments in small and mid cap companies may be riskier than investments in larger, more established companies. The securities of these companies may trade less frequently and in smaller volumes than securities of larger companies. In addition, small and mid cap companies may be more vulnerable to economic, market and industry changes. As a result, share price changes may be more sudden or erratic than the prices of other equity securities, especially over the short-term. Because smaller companies may have limited product lines, markets or financial resources or may depend on a few key employees, they may be more susceptible to particular economic events or competitive factors than large capitalization companies.

**Performance** 

The following bar chart and table show two aspects of the Fund: volatility and performance. The bar chart shows the volatility — or variability — of the Fund's annual total returns over time, and shows that Fund performance can change from year to year. The table shows the Fund's average annual total returns for certain time periods compared to the returns of a broad-based securities market index and two supplemental indexes. The bar chart and table provide some indication of the risks of investing in the Fund. Of course, the Fund's past performance (before and after taxes) is not necessarily an indication of its future performance. *Updated performance information is available by visiting www.diamond-hill.com or by calling 888-226-5595.*

---

| | |
|:---|:---|
| **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** | **17** |

---

---

| | |
|:---|:---|
| **Diamond Hill Long-Short Fund Summary** | As of February 28, 2026 |

---

**CLASS I ANNUAL TOTAL RETURN-YEARS ENDED 12/31** 

---

| | |
|:---|:---|
| **Best Quarter:** | 4Q 2020, +13.78% |
| **Worst Quarter:** | 1Q 2020, -23.39% |

---

**AVERAGE ANNUAL TOTAL RETURNS AS OF 12/31/25** 

After-tax returns are calculated using the highest historical individual federal marginal income tax rate and do not reflect the impact of state and local taxes. Actual after-tax returns depend on a shareholder's tax situation and may differ from those shown. After-tax returns are not relevant for shareholders who hold Fund shares in tax-deferred accounts or to shares held by non-taxable entities. After-tax returns are shown for Class I shares only and will vary from the after-tax returns for the other share classes.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Inception <br> Date of <br> Class** | **One Year** | **Five Year** | **Ten Year** |
| **Class I** Before Taxes | 1/31/05 | 19.10% | 10.04% | 7.99% |
| &nbsp;&nbsp;&nbsp;After Taxes on Distributions |  | 18.56 | 8.44 | 6.76 |
| &nbsp;&nbsp;&nbsp;After Taxes on Distributions and Sale of Fund Shares |  | 11.54 | 7.61 | 6.18 |
| **Investor** Before Taxes | 6/30/00 | 18.76 | 9.72 | 7.68 |
| **Class Y** Before Taxes | 12/30/11 | 19.24 | 10.17 | 8.11 |
| Russell 3000<sup>®</sup> Index |  | 17.15 | 13.15 | 14.29 |
| Russell 1000<sup>®</sup> Index |  | 17.37 | 13.59 | 14.59 |
| 60% Russell 1000<sup>®</sup> Index/40% Bloomberg US T-Bills 1-3 Month Index |  | 12.12 | 9.64 | 9.78 |

---

The Fund's broad-based securities market index is the Russell 3000<sup>®</sup> Index, which measures the performance of roughly 3,000 of the largest U.S. companies based on total market capitalization.

The Russell 1000<sup>®</sup> Index represents an index of securities that reflect the market sectors in which the Fund invests. The Russell 1000<sup>®</sup> Index measures the performance of roughly 1,000 U.S. large-cap companies.

The blended benchmark represents a 60/40 weighted blend of the Russell 1000<sup>®</sup> 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 blended benchmark is utilized by the Adviser for measuring performance.

The indexes are unmanaged, market capitalization weighted, include net reinvested dividends, do not reflect fees or expenses (which would lower the return), and are not available for direct investment.

**Portfolio Management** 

**Investment Adviser** Diamond Hill Capital Management, Inc.

**Portfolio Managers** Christopher Bingaman

Portfolio Manager

since 4/2007

Nathan Palmer

Portfolio Manager

since 6/2018

**Buying and Selling Fund Shares** 

**Minimum Initial Investment** Investor and Class I: $2,500

Class Y: $500,000

---

| | |
|:---|:---|
| **To Place Orders** | **Regular Mail:** <br> Diamond Hill Long-Short Fund <br>P.O. Box 46707 <br>Cincinnati, OH 45246 <br>Phone: 888-226-5595 |
|  | **Overnight Delivery:** <br>Diamond Hill Long-Short Fund <br>225 Pictoria Drive, Suite 450 <br>Cincinnati, OH 45246 <br>Phone: 888-226-5595 |

---

**Transaction Policies** 

In general, you can buy or sell (redeem) shares of the Fund by mail or phone on any business day. You can generally pay for shares by check or wire. You may be charged wire fees or other transaction fees; ask your financial professional. When selling shares, you will receive a check, unless you request a wire. You may also buy and sell shares through a financial professional.

**Dividends, Capital Gains and Taxes** 

The Fund's distributions may be taxable as ordinary income or capital gains, except when your investment is in an IRA, 401(k) or other tax-advantaged investment plan. However, you may be subject to tax when you withdraw monies from a tax-advantaged plan.

---

| | |
|:---|:---|
| **18** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

---

---

| | |
|:---|:---|
| **Diamond Hill Long-Short Fund Summary** | As of February 28, 2026 |

---

**Payments to Broker-Dealers and Other Financial Intermediaries** 

If you purchase shares (other than Class Y shares) through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary's web site for more information.

---

| | |
|:---|:---|
| **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** | **19** |

---

![](diamondhill_15.jpg)

---

| | | | |
|:---|:---|:---|:---|
| **Class** | **Investor** | **I** | **Y** |
| Ticker | DHIAX | DHIIX | DHIYX |

---

**Investment Objective** 

The investment objective of the Diamond Hill International Fund (the "Fund" or the "International Fund") is to provide long-term capital appreciation.

**Fees and Expenses of the Fund** 

This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

---

| |
|:---|
| **SHAREHOLDER FEES (fees paid directly from your investment)** |
| **None** |

---

---

| | | | |
|:---|:---|:---|:---|
| **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** |
| | **Investor** | **Class I** | **Class Y** |
| **Management fees** | 0.65% | 0.65% | 0.65% |
| **Distribution (12b-1) fees** | 0.25% |  |  |
| **Other expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp;**Administration fees<sup>1</sup>** | 0.22% | 0.18% | 0.05% |
| &nbsp;&nbsp;&nbsp;**Other expenses** | 0.04% | 0.04% | 0.04% |
| **Total Other expenses<sup>1</sup>** | 0.26% | 0.22% | 0.09% |
| **Total annual fund operating expenses** | **1.16%** | **0.87%** | **0.74%** |

---

<sup>1</sup> Administration fees for Investor and Class I shares have been restated to reflect current expenses.

**EXPENSE EXAMPLE** 

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 Year** | **3 Years** | **5 Years** | **10 Years** |
| **Investor** | $118 | $368 | $638 | $1409 |
| **Class I** | 89 | 278 | 482 | 1073 |
| **Class Y** | 76 | 237 | 411 | 918 |

---

**PORTFOLIO TURNOVER** 

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 51% of the average value of its portfolio.

**Principal Investment Strategy** 

The Fund, under normal market conditions, invests its assets primarily in non-U.S. equity securities of companies of any size that Diamond Hill Capital Management, Inc. (the "Adviser") believes are undervalued. Equity securities consist of common and preferred stocks. Under normal market conditions, the Fund will invest at least 80% of its net assets in securities issued by companies (i) that are headquartered or have their principal place of business outside the U.S., (ii) whose primary trading markets are outside the U.S. or (iii) that have at least 50% of their assets in, or expect to derive at least 50% of their total revenues or profits from, goods or services produced in or sales made in countries outside the U.S. The Fund intends to diversify its investments across different countries and regions, including emerging markets. Emerging market countries include those generally recognized to be an emerging market country by the international financial community; classified by the United Nations as a developing country; or classified as an emerging market country by MSCI or other index or data provider.

The Adviser focuses on estimating a company's value independent of its current stock price. To estimate a company's value, the Adviser focuses on the fundamental economic drivers of the business. The primary focus is on "bottom-up" analysis, which takes into consideration earnings, revenue growth, operating margins and other economic factors. The Adviser also considers the level of industry competition, the regulatory environment, the threat of technological obsolescence, and a variety of other industry factors. If the Adviser's estimate of a company's value differs sufficiently from the current market price, the company may be an attractive investment opportunity. In constructing a portfolio of securities, the Adviser is not constrained by the sector or industry weights in the benchmark. The Adviser relies on individual stock selection and discipline in the investment process to add value. The highest portfolio security weights are assigned to companies where the Adviser has the highest level of confidence.

Once a holding is selected, the Adviser continues to monitor the company's strategies, financial performance and competitive environment. The Adviser may sell a security as it reaches the Adviser's estimate of the company's value if it believes that the company's earnings, revenue growth, operating margin or other economic factors are deteriorating, or if it identifies a stock that it believes offers a better investment opportunity.

---

| | |
|:---|:---|
| **20** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

---

---

| | |
|:---|:---|
| **Diamond Hill International Fund Summary** | As of February 28, 2026 |

---

**Main Risks** 

All investments carry a certain amount of risk, and the Fund cannot guarantee that it will achieve its investment objective. An investment in the Fund is not a deposit or obligation of any bank, is not endorsed or guaranteed by any bank, and is not insured by the Federal Deposit Insurance Corporation or any other government agency. You may lose money by investing in the Fund. Below are the main risks of investing in the Fund. All of the risks listed below are significant to the Fund, regardless of the order in which they appear.

**Current Market Environment Risk** Various sectors of the financial markets may experience an extended period of adverse conditions. Market uncertainty can increase dramatically, and these conditions may result in disruptions of the equity markets, periods of reduced liquidity, greater general volatility, and a contraction of availability of credit and lack of price transparency.

**Management Risk** The Adviser's judgments about the attractiveness, value, and potential appreciation of a particular asset class or individual security in which the Fund invests may prove to be incorrect, and there is no guarantee that individual companies will perform as anticipated. The value of an individual company can be more volatile than the market as a whole, and the Adviser's intrinsic value-oriented approach may fail to produce the intended results.

**Market Risk** The value of the Fund's investments may decrease, sometimes rapidly or unexpectedly, due to factors affecting an issuer held by the Fund, particular industries or overall securities markets. When the value of the Fund's investments goes down, your investment in the Fund decreases in value. A variety of factors including interest rate levels, recessions, inflation, U.S. economic growth, war or acts of terrorism, natural disasters, political events, supply chain disruptions, trade barriers, staff shortages and widespread public health issues affect the securities markets. These events may cause volatility, severe market dislocations and liquidity constraints in many markets, including markets for the securities the Fund holds, and may adversely affect the Fund's investments and operations. In addition, governmental responses to these events may negatively impact the capabilities of the Fund's service providers, disrupt the Fund's operations, result in substantial market volatility and adversely impact the prices and liquidity of the Fund's investments.

**Non-U.S. and Emerging Markets Risk** The Fund may invest in non-U.S. securities and U.S. securities of companies domiciled in non-U.S. countries. As a result, the Fund may experience more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies. These companies may be subject to additional risks, including political and economic risks, civil conflicts and war, greater volatility, expropriation and nationalization risks, currency fluctuations, higher transaction costs, delayed settlement, possible non-U.S. controls on investments, and less stringent investor protection and disclosure standards. Trade tensions and sanctions on individuals and companies can contribute to market volatility, which may affect the Fund's performance. These risks are magnified in emerging markets as events and evolving conditions in certain economies or markets may

alter the risks associated with investments tied to countries or regions that historically were perceived as comparatively stable becoming riskier and more volatile. The market for the securities of issuers in emerging markets is typically small and low, and nonexistent trading volumes in those securities may result in a lack of liquidity and price volatility.

**Sector Emphasis Risk** The Fund, from time to time, may invest 25% or more of its assets in one or more sectors, subjecting the Fund to sector emphasis risk. This risk is that the Fund is subject to a greater risk of loss due to adverse economic, business or other developments affecting a specific sector in which the Fund has a focused position, than if its investments were diversified across a greater number of industry sectors. Some sectors possess particular risks that may not affect other sectors.

**Small Cap and Mid Cap Company Risk** Investments in small and mid cap companies may be riskier than investments in larger, more established companies. The securities of these companies may trade less frequently and in smaller volumes than securities of larger companies. In addition, small and mid cap companies may be more vulnerable to economic, market and industry changes. As a result, share price changes may be more sudden or erratic than the prices of other equity securities, especially over the short-term. Because smaller companies may have limited product lines, markets or financial resources or may depend on a few key employees, they may be more susceptible to particular economic events or competitive factors than large capitalization companies.

**Performance** 

The following bar chart and table show two aspects of the Fund: volatility and performance. The bar chart shows the volatility - or variability - of the Fund's annual total returns over time, and shows that Fund performance can change from year to year.

Prior to calendar year 2019, the bar chart and table reflect the past performance of Diamond Hill International Equity Fund, LP (the "International Partnership"), a private fund managed with full investment authority by the Adviser, and provide some indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year over the periods indicated and by showing how the Fund's average annual total returns for the periods indicated compared to a broad-based securities market index. The Fund is managed in all material respects in a manner equivalent to the management of the International Partnership. The Fund's objectives, policies, guidelines and restrictions are in all material respects equivalent to the International Partnership, and the Fund was created for reasons entirely unrelated to the establishment of a performance record. The assets of the International Partnership were converted, based on their value on June 28, 2019, into assets of the Fund prior to commencement of operations of the 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 operations. The International Partnership was not registered under the Investment Company Act of 1940, as amended (the "Company Act"), and therefore, was not subject to certain investment restrictions imposed by the Company

---

| | |
|:---|:---|
| **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** | **21** |

---

---

| | |
|:---|:---|
| **Diamond Hill International Fund Summary** | As of February 28, 2026 |

---

Act. If the International Partnership had been registered under the Company Act, its performance may have been adversely affected. Performance of the Fund prior to calendar year 2019 is measured from December 30, 2016, the inception of the International Partnership, and is not the performance of the Fund. The Fund's and the International Partnership's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future either before or after taxes. *Updated performance information is available by visiting www.diamond-hill.com or by calling 888-226-5595.* 

**CLASS I ANNUAL TOTAL RETURN-YEARS ENDED 12/31** 

---

| | |
|:---|:---|
| **Best Quarter:** | 4Q 2020, +22.69% |
| **Worst Quarter:** | 1Q 2020, -26.28% |

---

**AVERAGE ANNUAL TOTAL RETURNS AS OF 12/31/25** 

After-tax returns are calculated using the highest historical individual federal marginal income tax rate and do not reflect the impact of state and local taxes. Actual after-tax returns depend on a shareholder's tax situation and may differ from those shown. After-tax returns are not relevant for shareholders who hold Fund shares in tax-deferred accounts or to shares held by non-taxable entities. After-tax returns are shown for Class I shares only and will vary from the after-tax returns for the other share classes. After-tax returns prior to five years are not provided because the International Partnership's tax treatment was different than that of a registered investment company.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Inception <br> Date of <br> Class** | **One Year** | **Five <br> Years** | **Since<br> Inception** <br>**(12/30/16)** |
| **Class I** Before Taxes | 06/28/19 | 28.27% | 8.95% | 10.03% |
| &nbsp;&nbsp;&nbsp;After Taxes on Distributions |  | 26.49 | 8.21 | N/A |
| &nbsp;&nbsp;&nbsp;After Taxes on Distributions and Sale of Fund Shares |  | 17.35 | 6.90 | N/A |
| **Investor** Before Taxes | 06/28/19 | 27.87 | 8.62 | 9.71 |
| **Class Y** Before Taxes | 06/28/19 | 28.44 | 9.09 | 10.16 |
| MSCI ACWI ex USA Index |  | 32.39 | 7.91 | 8.86 |

---

The Fund's broad-based securities market index is the MSCI ACWI ex USA Index, which measures the performance of large- and mid-cap stocks in developed (excluding the U.S.) and emerging markets. The MSCI ACWI ex USA Index also represents an index of non-U.S. securities that reflect the market sectors in which the Fund invests and is utilized by the Adviser for measuring performance.

The index is unmanaged, market capitalization weighted, includes net reinvested dividends, does not reflect fees or expenses (which would lower return), and is not available for direct investment.

**Portfolio Management** 

**Investment Adviser** Diamond Hill Capital Management, Inc.

**Portfolio Manager** Krishna Mohanraj

Portfolio Manager

since 12/2018

**Buying and Selling Fund Shares** 

**Minimum Initial Investment** Investor and Class I: $2,500

Class Y: $500,000

---

| | |
|:---|:---|
| **To Place Orders** | **Regular Mail:** <br> Diamond Hill International Fund <br>P.O. Box 46707 <br>Cincinnati, OH 45246 <br>Phone: 888-226-5595 |
|  | **Overnight Delivery:** <br>Diamond Hill International Fund <br>225 Pictoria Drive, Suite 450 <br>Cincinnati, OH 45246 <br>Phone: 888-226-5595 |

---

**Transaction Policies** 

In general, you can buy or sell (redeem) shares of the Fund by mail or phone on any business day. You can generally pay for shares by check or wire. You may be charged wire fees or other transaction fees; ask your financial professional. When selling shares, you will receive a check, unless you request a wire. You may also buy and sell shares through a financial professional.

**Dividends, Capital Gains and Taxes** 

The Fund's distributions may be taxable as ordinary income or capital gains, except when your investment is in an IRA, 401(k) or other tax-advantaged investment plan. However, you may be subject to tax when you withdraw monies from a tax-advantaged plan.

**Payments to Broker-Dealers and Other Financial Intermediaries** 

If you purchase shares (other than Class Y shares) through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary's web site for more information.

---

| | |
|:---|:---|
| **22** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

---

![](diamondhill_17.jpg)

---

| | | | |
|:---|:---|:---|:---|
| **Class** | **Investor** | **I** | **Y** |
| Ticker | DHEAX | DHEIX | DHEYX |

---

**Investment Objective** 

The investment objective of the Diamond Hill Short Duration Securitized Bond Fund (the "Fund" or the "Short Duration Securitized Bond Fund") is to maximize total return consistent with the preservation of capital.

**Fees and Expenses of the Fund** 

This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

---

| |
|:---|
| **SHAREHOLDER FEES (fees paid directly from your investment)** |
| **None** |

---

---

| | | | |
|:---|:---|:---|:---|
| **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** |
| | **Investor** | **Class I** | **Class Y** |
| **Management fees** | 0.35% | 0.35% | 0.35% |
| **Distribution (12b-1) fees** | 0.25% |  |  |
| **Other expenses<sup>1</sup>** | 0.22% | 0.18% | 0.05% |
| **Total annual fund operating expenses** | **0.82%** | **0.53%** | **0.40%** |

---

<sup>1</sup> Other expenses, which includes Administration fees, for Investor and Class I shares have been restated to reflect current expenses.

**EXPENSE EXAMPLE** 

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 Year** | **3 Years** | **5 Years** | **10 Years** |
| **Investor** | $84 | $262 | $455 | $1014 |
| **Class I** | 54 | 170 | 296 | 665 |
| **Class Y** | 41 | 128 | 224 | 505 |

---

**PORTFOLIO TURNOVER** 

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 37% of the average value of its portfolio.

**Principal Investment Strategy** 

The Fund, under normal market conditions, invests at least 80% of its net assets at the time of purchase in securitized bond investments. Securitized bond investments are also referred to as "structured product securities" or "structured products." Securitized bond investments include interests in pools of secured loans backed by commercial real estate, residential real estate, commercial or consumer loans, and securitizations such as agency and non-agency mortgage-backed securities ("MBS") (including commercial mortgage-backed securities ("CMBS"), residential mortgage-backed securities ("RMBS"), and collateralized mortgage obligations ("CMOs")), asset-backed securities ("ABS"), and other similar securities and related instruments.

Agency MBS are issued or guaranteed by the U.S. government, its agencies or instrumentalities, which include mortgage pass-through securities representing interests in pools of mortgage loans issued or guaranteed by the Government National Mortgage Association ("GNMA" or "Ginnie Mae"), the Federal National Mortgage Association ("FNMA" or "Fannie Mae"), the Student Loan Marketing Association ("SLMA" or "Sallie Mae") or the Federal Home Loan Mortgage Corporation ("FHLMC" or "Freddie Mac"). The Fund may also invest in other fixed income instruments, which include bonds, debt or credit securities and other similar instruments issued by various U.S. and non-U.S. public or private sector entities at the discretion of the Diamond Hill Capital Management, Inc. (the "Adviser").

Under normal circumstances, the Fund will maintain an average portfolio duration of less than three, although under certain market conditions, such as periods of significant volatility in interest rates and spreads, the Fund's average duration may be longer than three. Duration is an approximate measure of a bond's price sensitivity to changes in interest rates. For instance, a duration of "three" means that a security's or portfolio's price would be expected to decrease by approximately 3% with a 1% increase in interest rates (assuming a parallel shift in yield curve). The Fund may invest

---

| | |
|:---|:---|
| **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** | **23** |

---

---

| | |
|:---|:---|
| **Diamond Hill Short Duration Securitized Bond Fund Summary** | As of February 28, 2026 |

---

in individual fixed income securities with effective durations in excess of three, provided, however, such investments are made within the constraints above.

The Fund may invest up to 15% of its assets in below investment grade securities, including those referred to as "junk bonds" (or the unrated equivalent) at the time of purchase.

When selecting securities for the Fund, the Adviser performs a risk/reward analysis that includes an evaluation of credit risk, interest rate risk, prepayment risk, and the legal and technical structure of the security. The Adviser will attempt to take advantage of inefficiencies that it believes exist in the fixed income markets, such as the diversity of participants working with different objectives and repeated temporary supply-demand imbalances. The Adviser seeks to invest in securities that the Adviser expects to offer attractive prospects for income and/or capital appreciation in relation to the risk borne.

**Main Risks** 

All investments carry a certain amount of risk, and the Fund cannot guarantee that it will achieve its investment objective. An investment in the Fund is not a deposit or obligation of any bank, is not endorsed or guaranteed by any bank, and is not insured by the Federal Deposit Insurance Corporation or any other government agency. You may lose money by investing in the Fund. Below are the main risks of investing in the Fund. All of the risks listed below are significant to the Fund, regardless of the order in which they appear.

**Asset-Backed, Mortgage-Related and Mortgage-Backed Securities Risk** Asset-backed, mortgage-related and mortgage-backed securities, including so-called "sub-prime" mortgages, are subject to certain risks including prepayment and call risks. When mortgages and other obligations are prepaid and when securities are called, the Fund may have to reinvest in securities with a lower yield or may fail to recover additional amounts (i.e., premiums) paid for securities with higher interest rates, resulting in an unexpected capital loss and/or a decrease in the amount of dividends and yield. In periods of rising interest rates, the Fund may be subject to extension risk, and may receive principal later than expected. As a result, in periods of rising interest rates, the Fund may exhibit additional volatility. During periods of difficult or frozen credit markets, changes in interest rates, or deteriorating economic conditions, such securities may decline in value, face valuation difficulties, become more volatile and/or become illiquid.

CMOs and stripped mortgage-backed securities, including those structured as interest only ("IOs") and principal only ("POs"), are more volatile and may be more sensitive to the rate of prepayments than other mortgage-related securities. CMOs are issued in multiple classes, and a class with an earlier final payment date may have certain preferences in receiving principal payments or earning interest. As a result, the value of some classes in which the Fund invests may be more volatile and may be subject to higher risk of

non-payment. The risk of default for "sub-prime" mortgages is generally higher than other types of mortgage-backed securities.

The values of IO and PO mortgage-backed securities are more volatile than other types of mortgage-related securities. They are very sensitive not only to changes in interest rates, but also to the rate of prepayments. In addition, because there may be a drop in trading volume, an inability to find a ready buyer, or the imposition of legal restrictions on the resale of securities, these instruments may be illiquid. The Fund will be exposed to additional risk to the extent that it uses inverse floaters and inverse IOs. These securities are more volatile and more sensitive to interest rate changes than other types of debt securities. If interest rates move in a manner not anticipated by the Adviser, the Fund could lose all or substantially all of its investment in inverse IOs.

**Consumer Loans Risk** Investments in consumer loans expose the Fund to additional risks beyond those normally associated with more traditional debt instruments. The Fund's ability to receive payments in connection with the loan depends primarily on the financial condition of the borrower and whether or not a loan is secured by collateral, although there is no assurance that the collateral securing a loan will be sufficient to satisfy the loan obligation. In addition, bank loans often have contractual restrictions on resale, which can delay the sale and adversely impact the sale price. Transactions involving bank loans may have significantly longer settlement periods than more traditional investments (settlement can take longer than 7 days) and often involve borrowers whose financial condition is troubled or highly leveraged, which increases the risk that the Fund may not receive its proceeds in a timely manner or that the Fund may incur losses in order to pay redemption proceeds to its shareholders. In addition, loans are not registered under the federal securities laws like stocks and bonds, so investors in loans have less protection against improper practices than investors in registered securities.

**Credit Risk** There is a risk that issuers and counterparties will not make payments on securities and repurchase agreements held by a fund. Such default could result in losses to the Fund. In addition, the credit quality of securities held by the Fund may be lowered if an issuer's financial condition changes. Lower credit quality may lead to greater volatility in the price of a security and in shares of the Fund. Lower credit quality also may affect liquidity and make it difficult for the Fund to sell the security.

**Current Market Environment Risk** Various sectors of the financial markets may experience an extended period of adverse conditions. Market uncertainty can increase dramatically, and these conditions may result in disruptions of the equity markets, periods of reduced liquidity, greater general volatility, and a contraction of availability of credit and lack of price transparency. In particular, certain types of securitized bond investments may come under stress due to economic factors and trends, such as higher than expected interest rates, property vacancies and consumer stress.

---

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|:---|:---|
| **24** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

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| | |
|:---|:---|
| **Diamond Hill Short Duration Securitized Bond Fund Summary** | As of February 28, 2026 |

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**Government Securities Risk** The Fund may invest in securities issued or guaranteed by the U.S. government or its agencies and instrumentalities. These securities may be backed by the credit of the government as a whole or only by the issuing agency. U.S. Treasury bonds, notes, and bills and some agency securities, such as those issued by the Federal Housing Administration and Ginnie Mae, are backed by the full faith and credit of the U.S. government as to payment of principal and interest and are the highest quality government securities. Other securities issued by U.S. government agencies or instrumentalities, such as securities issued by the Federal Home Loan Banks and Freddie Mac, are supported only by the credit of the agency that issued them, and not by the U.S. government. Other securities issued by U.S. government agencies or instrumentalities are supported by the agency's right to borrow money from the U.S. Treasury under certain circumstances, but are not backed by the full faith and credit of the U.S. government. No assurance can be given that the U.S. government would provide financial support to its agencies and instrumentalities if not required to do so by law.

**High Yield Securities Risk** The Fund will purchase fixed income securities rated below the investment grade category. Securities in this rating category are speculative. Changes in economic conditions or other circumstances may have a greater effect on the ability of issuers of these securities to make principal and interest payments than they do on issuers of higher grade securities.

**Inflation Risk** Because inflation reduces the purchasing power of income produced by existing fixed income securities, the prices at which fixed income securities trade will be reduced to compensate for the fact that the income they produce is worth less. This potential decrease in market value would be the measure of the inflation risk incurred by the Fund.

**Interest Rate Risk** The Fund invests in fixed income securities. These securities will increase or decrease in value based on changes in interest rates. If rates increase, the value of the Fund's fixed income securities generally declines. On the other hand, if rates fall, the value of the fixed income securities generally increases. Your investment will decline in value if the value of the Fund's investments decreases.

**Liquidity Risk** The Fund may not be able to purchase or sell a security in a timely manner or at desired prices or achieve its desired weighting in a security. Liquidity risk may result from the lack of an active market or a reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified during times of market stress. The Fund may not be able to meet the requests to redeem Fund shares without significant dilution of remaining investors' interest in the Fund.

**Management Risk** The Adviser's judgments about the attractiveness, value, and potential appreciation of a particular asset class or individual security in which the Fund invests may prove to be incorrect, and there is no guarantee that individual investments will perform as anticipated.

**Market Risk** The value of the Fund's investments may decrease, sometimes rapidly or unexpectedly, due to factors affecting an issuer held by the Fund, particular industries or overall securities markets. When the value of the Fund's investments goes down, your investment in the Fund decreases in value. A variety of factors including interest rate levels, recessions, inflation, U.S. economic growth, war or acts of terrorism, natural disasters, political events, supply chain disruptions, trade barriers, staff shortages and widespread public health issues affect the securities markets. These events may cause volatility, severe market dislocations and liquidity constraints in many markets, including markets for the securities the Fund holds, and may adversely affect the Fund's investments and operations. In addition, governmental responses to these events may negatively impact the capabilities of the Fund's service providers, disrupt the Fund's operations, result in substantial market volatility and adversely impact the prices and liquidity of the Fund's investments.

**Non-U.S. and Emerging Markets Risk** The Fund may invest in non-U.S. securities and U.S. securities of companies domiciled in non-U.S. countries. As a result, the Fund may experience more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies. These companies may be subject to additional risks, including political and economic risks, civil conflicts and war, greater volatility, expropriation and nationalization risks, currency fluctuations, higher transaction costs, delayed settlement, possible non-U.S. controls on investments, and less stringent investor protection and disclosure standards. Trade tensions and sanctions on individuals and companies can contribute to market volatility, which may affect the Fund's performance. These risks are magnified in emerging markets as events and evolving conditions in certain economies or markets may alter the risks associated with investments tied to countries or regions that historically were perceived as comparatively stable becoming riskier and more volatile. The market for the securities of issuers in emerging markets is typically small and low, and nonexistent trading volumes in those securities may result in a lack of liquidity and price volatility.

**Prepayment and Call Risk** The issuer of certain securities may repay principal in advance, especially when yields fall. Changes in the rate at which prepayments occur can affect the return on investment of these securities. When debt obligations are prepaid or when securities are called, the Fund may have to reinvest in securities with a lower yield. The Fund also may fail to recover additional amounts (i.e., premiums) paid for securities with higher coupons, resulting in an unexpected capital loss.

**Performance** 

The following bar chart and table show two aspects of the Fund: volatility and performance. The bar chart shows the volatility — or variability — of the Fund's annual total returns over time, and shows that Fund performance can change from year to year. The table shows the Fund's average annual total returns for certain time periods compared to the returns of a broad-based securities market index and a supplemental index. The bar chart and table provide some indication of the risks of investing in the Fund. Of course, the Fund's past

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| | |
|:---|:---|
| **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** | **25** |

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| | |
|:---|:---|
| **Diamond Hill Short Duration Securitized Bond Fund Summary** | As of February 28, 2026 |

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performance (before and after taxes) is not necessarily an indication of its future performance. *Updated performance information is available by visiting www.diamond-hill.com or by calling 888-226-5595.* 

**CLASS I ANNUAL TOTAL RETURN-YEARS ENDED 12/31** 

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| | |
|:---|:---|
| **Best Quarter:** | 2Q 2020, +5.26% |
| **Worst Quarter:** | 1Q 2020, -7.64% |

---

**AVERAGE ANNUAL TOTAL RETURNS AS OF 12/31/25** 

After-tax returns are calculated using the highest historical individual federal marginal income tax rate and do not reflect the impact of state and local taxes. Actual after-tax returns depend on a shareholder's tax situation and may differ from those shown. After-tax returns are not relevant for shareholders who hold fund shares in tax-deferred accounts or to shares held by non-taxable entities. After-tax returns are shown for Class I shares only and will vary from the after-tax returns for the other share classes.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Inception <br> Date of <br> Class** | **One Year** | **Five <br> Years** | **Since<br> Inception** |
| **Class I** Before Taxes | 07/05/16 | 6.60% | 4.73% | 4.25% |
| &nbsp;&nbsp;&nbsp;After Taxes on Distributions |  | 4.03 | 2.69 | 2.48 |
| &nbsp;&nbsp;&nbsp;After Taxes on Distributions and Sale of Fund Shares |  | 3.87 | 2.72 | 2.48 |
| **Investor** Before Taxes | 07/05/16 | 6.22 | 4.41 | 3.94 |
| **Class Y** Before Taxes | 07/05/16 | 6.62 | 4.85 | 4.37 |
| Bloomberg US Aggregate Bond Index |  | 7.30 | (0.36) | 1.49 |
| Bloomberg 1-3 Year US Government/Credit Index |  | 5.35 | 1.97 | 2.02 |

---

The Fund's broad-based securities market index is the Bloomberg US Aggregate Bond Index, which 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 Bloomberg 1-3 Year US Government/Credit Index represents the index utilized by the Adviser for measuring performance. The Bloomberg 1-3 Year US Government/Credit Index measures the performance of investment grade government and corporate bonds with maturities of one to three years.

The indexes are unmanaged, include net reinvested dividends, do not reflect fees or expenses (which would lower the return), and are not available for direct investment.

**Portfolio Management** 

**Investment Adviser** Diamond Hill Capital Management, Inc.

**Portfolio Managers** Henry Song

Portfolio Manager

since 7/2016

Mark Jackson

Portfolio Manager

since 7/2016

**Buying and Selling Fund Shares** 

**Minimum Initial Investment** Investor and Class I: $2,500

Class Y: $500,000

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| | |
|:---|:---|
| **To Place Orders** | **Regular Mail:** <br> Diamond Hill Short Duration Securitized Bond Fund <br>P.O. Box 46707 <br>Cincinnati, OH 45246 <br>Phone: 888-226-5595 |
|  | **Overnight Delivery:** <br>Diamond Hill Short Duration Securitized Bond Fund <br>225 Pictoria Drive, Suite 450 <br>Cincinnati, OH 45246 <br>Phone: 888-226-5595 |

---

**Transaction Policies** 

In general, you can buy or sell (redeem) shares of the Fund by mail or phone on any business day. You can generally pay for shares by check or wire. You may be charged wire fees or other transaction fees; ask your financial professional. When selling shares, you will receive a check, unless you request a wire. You may also buy and sell shares through a financial professional.

**Dividends, Capital Gains and Taxes** 

The Fund's distributions may be taxable as ordinary income or capital gains, except when your investment is in an IRA, 401(k) or other tax-advantaged investment plan. However, you may be subject to tax when you withdraw monies from a tax-advantaged plan.

**Payments to Broker-Dealers and Other Financial Intermediaries** 

If you purchase shares (other than Class Y shares) through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary's web site for more information.

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|:---|:---|
| **26** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

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![](diamondhill_19.jpg)

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| | | | |
|:---|:---|:---|:---|
| **Class** | **Investor** | **I** | **Y** |
| Ticker | DHWAX | DHWIX | DHWYX |

---

**Investment Objective** 

The investment objective of the Diamond Hill Securitized Total Return Fund (the "Fund" or the "Securitized Total Return Fund") is to maximize total return consistent with the preservation of capital.

**Fees and Expenses of the Fund** 

This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

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| |
|:---|
| **SHAREHOLDER FEES (fees paid directly from your investment)** |
| **None** |

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---

| | | | |
|:---|:---|:---|:---|
| **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** |
| | **Investor** | **Class I** | **Class Y** |
| **Management fees** | 0.70% | 0.70% | 0.70% |
| **Distribution (12b-1) fees** | 0.25% |  |  |
| **Other expenses<sup>1</sup>** | 0.22% | 0.18% | 0.05% |
| **Total annual fund operating expenses** | **1.17%** | **0.88%** | **0.75%** |

---

<sup>1</sup> Other expenses, which includes Administration fees, for Investor and Class I shares have been restated to reflect current expenses.

**EXPENSE EXAMPLE** 

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1 Year** | **3 Years** | **5 Years** | **10 Years** |
| **Investor** | $119 | $372 | $644 | $1420 |
| **Class I** | 90 | 281 | 488 | 1084 |
| **Class Y** | 77 | 240 | 417 | 930 |

---

**PORTFOLIO TURNOVER** 

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are

held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the period from the Fund's commencement of operations on July 1, 2025, through the end of its most recent fiscal year, the Fund's portfolio turnover rate was 12% of the average value of its portfolio.

**Principal Investment Strategy** 

The Fund, under normal market conditions, invests at least 80% of its net assets at the time of purchase (plus any amount borrowed for investment purposes) in securitized bond investments. Securitized bond investments are also referred to as "structured product securities" or "structured products." Securitized bond investments include interests in pools of secured loans backed by commercial real estate, residential real estate, commercial or consumer loans, and securitizations such as agency and non-agency mortgage-backed securities ("MBS") (including commercial mortgage-backed securities ("CMBS"), residential mortgage-backed securities ("RMBS"), and collateralized mortgage obligations ("CMOs")), asset-backed securities ("ABS"), and other similar securities and related instruments.

Agency MBS are issued or guaranteed by the U.S. government, its agencies or instrumentalities, which include mortgage pass-through securities representing interests in pools of mortgage loans issued or guaranteed by the Government National Mortgage Association ("GNMA" or "Ginnie Mae"), the Federal National Mortgage Association ("FNMA" or "Fannie Mae"), the Student Loan Marketing Association ("SLMA" or "Sallie Mae") or the Federal Home Loan Mortgage Corporation ("FHLMC" or "Freddie Mac").

Under normal circumstances, the Fund will maintain an average portfolio duration of plus or minus two of the duration of the Bloomberg US Securitized MBS, ABS, CMBS Index. The Bloomberg US Securitized MBS, ABS, CMBS Index measures the performance of all USD-denominated, investment grade, securitized issues within the Bloomberg US Aggregate Bond Index. Duration of the Bloomberg US Securitized MBS, ABS, CMBS Index was 5.46 as of its last reconstitution date of January 31, 2026. Duration is an approximate measure of a bond's price sensitivity to changes in interest rates. For instance, a duration of "six" means that a security's or portfolio's price would be expected to decrease by approximately 6% with a 1% increase in interest rates (assuming a parallel shift in yield curve).

The Fund may also invest in other fixed income instruments, which include bonds, debt or credit securities and other similar instruments issued by various U.S. and non-U.S. public or private sector entities at the discretion of the Diamond Hill Capital Management, Inc. (the "Adviser").

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|:---|:---|
| **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** | **27** |

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| | |
|:---|:---|
| **Diamond Hill Securitized Total Return Fund** | As of February 28, 2026 |

---

The Fund may invest up to 15% of its assets in below investment grade securities, including those referred to as "junk bonds" (or the unrated equivalent) at the time of purchase.

When selecting securities for the Fund, the Adviser performs a risk/reward analysis that includes an evaluation of credit risk, interest rate risk, prepayment risk, and the legal and technical structure of the security. The Adviser will attempt to take advantage of inefficiencies that it believes exist in the fixed income markets, such as the diversity of participants working with different objectives and repeated temporary supply-demand imbalances. The Adviser seeks to invest in securities that the Adviser expects to offer attractive prospects for income and/or capital appreciation in relation to the risk borne.

**Main Risks** 

All investments carry a certain amount of risk, and the Fund cannot guarantee that it will achieve its investment objective. An investment in the Fund is not a deposit or obligation of any bank, is not endorsed or guaranteed by any bank, and is not insured by the Federal Deposit Insurance Corporation or any other government agency. You may lose money by investing in the Fund. Below are the main risks of investing in the Fund. All of the risks listed below are significant to the Fund, regardless of the order in which they appear.

**Adjustable Rate Mortgage Loans ("ARMs") Risk** ARMs may be subject to a greater rate of principal prepayments in a declining interest rate environment because the availability of fixed rate mortgage loans at competitive interest rates may encourage mortgagors to refinance their ARMs to "lock-in" a lower fixed interest rate. Conversely, if prevailing interest rates rise significantly, ARMs may prepay at lower rates than if prevailing rates remain at or below those in effect at the time such ARMs were originated. In addition, there can be no certainty as to whether increases in the principal balances of the ARMs due to the addition of deferred interest may result in a default rate higher than that on ARMs that do not provide for negative amortization.

**Asset-Backed, Mortgage-Related and Mortgage-Backed Securities Risk** Asset-backed, mortgage-related and mortgage-backed securities, including so-called "sub-prime" mortgages, are subject to certain risks including prepayment and call risks. When mortgages and other obligations are prepaid and when securities are called, the Fund may have to reinvest in securities with a lower yield or may fail to recover additional amounts (i.e., premiums) paid for securities with higher interest rates, resulting in an unexpected capital loss and/or a decrease in the amount of dividends and yield. In periods of rising interest rates, the Fund may be subject to extension risk and may receive principal later than expected. As a result, in periods of rising interest rates, the Fund may exhibit additional volatility. During periods of difficult or frozen credit markets, changes in interest rates, or deteriorating economic conditions, such securities may decline in value, face valuation difficulties, become more volatile and/or become illiquid.

CMOs and stripped mortgage-backed securities, including those structured as interest only ("IOs") and principal only ("POs"), are more volatile and may be more sensitive to the rate of prepayments than other mortgage-related securities. CMOs are issued in multiple classes, and a class with an earlier final payment date may have certain preferences in receiving principal payments or earning interest. As a result, the value of some classes in which the Fund invests may be more volatile and may be subject to higher risk of non-payment. The risk of default for "sub-prime" mortgages is generally higher than other types of mortgage-backed securities.

The values of IO and PO mortgage-backed securities are more volatile than other types of mortgage-related securities. They are very sensitive not only to changes in interest rates, but also to the rate of prepayments. In addition, because there may be a drop in trading volume, an inability to find a ready buyer, or the imposition of legal restrictions on the resale of securities, these instruments may be illiquid. The Fund will be exposed to additional risk to the extent that it uses inverse floaters and inverse IOs. These securities are more volatile and more sensitive to interest rate changes than other types of debt securities. If interest rates move in a manner not anticipated by the Adviser, the Fund could lose all or substantially all of its investment in inverse IOs.

**Collateralized Loan Obligations ("CLOs") Risk** CLOs are subject to credit, interest rate, valuation, prepayment and call, and extension risks. These securities also are subject to risk of default on the underlying asset, particularly during periods of economic downturn. The market value of CLOs may be affected by a variety of factors impacting the underlying assets held by the CLO.

**Consumer Loans Risk** Investments in consumer loans expose the Fund to additional risks beyond those normally associated with more traditional debt instruments. The Fund's ability to receive payments in connection with the loan depends primarily on the financial condition of the borrower and whether or not a loan is secured by collateral, although there is no assurance that the collateral securing a loan will be sufficient to satisfy the loan obligation. In addition, bank loans often have contractual restrictions on resale, which can delay the sale and adversely impact the sale price. Transactions involving bank loans may have significantly longer settlement periods than more traditional investments (settlement can take longer than seven days) and often involve borrowers whose financial condition is troubled or highly leveraged, which increases the risk that the Fund may not receive its proceeds in a timely manner or that the Fund may incur losses in order to pay redemption proceeds to its shareholders. In addition, loans are not registered under the federal securities laws like stocks and bonds, so investors in loans have less protection against improper practices than investors in registered securities.

**Credit Risk** There is a risk that issuers and counterparties will not make payments on securities and repurchase agreements held by a fund. Such default could result in losses to the Fund. In addition, the credit quality of securities held by the Fund may be lowered if an issuer's financial condition changes. Lower credit quality may lead to greater volatility in the price of

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|:---|:---|
| **28** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

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| | |
|:---|:---|
| **Diamond Hill Securitized Total Return Fund** | As of February 28, 2026 |

---

a security and in shares of the Fund. Lower credit quality also may affect liquidity and make it difficult for the Fund to sell the security.

**Current Market Environment Risk** Various sectors of the financial markets may experience an extended period of adverse conditions. Market uncertainty can increase dramatically, and these conditions may result in disruptions of the equity markets, periods of reduced liquidity, greater general volatility, and a contraction of availability of credit and lack of price transparency. In particular, certain types of securitized bond investments may come under stress due to economic factors and trends, such as higher than expected interest rates, property vacancies and consumer stress.

**Extension Risk** If interest rates rise, repayments of principal on certain debt securities, including, but not limited to, floating rate loans and mortgage-related securities, may occur at a slower rate than expected and the expected maturity of those securities could lengthen as a result. This may drive the prices of these securities down.

**Government Securities Risk** The Fund may invest in securities issued or guaranteed by the U.S. government or its agencies and instrumentalities. These securities may be backed by the credit of the government as a whole or only by the issuing agency. U.S. Treasury bonds, notes, and bills and some agency securities, such as those issued by the Federal Housing Administration and Ginnie Mae, are backed by the full faith and credit of the U.S. government as to payment of principal and interest and are the highest quality government securities. Other securities issued by U.S. government agencies or instrumentalities, such as securities issued by the Federal Home Loan Banks and Freddie Mac, are supported only by the credit of the agency that issued them, and not by the U.S. government. Other securities issued by U.S. government agencies or instrumentalities are supported only by the agency's right to borrow money from the U.S. Treasury under certain circumstances, but are not backed by the full faith and credit of the U.S. government. No assurance can be given that the U.S. government would provide financial support to its agencies and instrumentalities if not required to do so by law.

**High Yield Securities Risk** The Fund will purchase fixed income securities rated below the investment grade category. Securities in this rating category are speculative. Changes in economic conditions or other circumstances may have a greater effect on the ability of issuers of these securities to make principal and interest payments than they do on issuers of higher grade securities.

**Inflation Risk** Because inflation reduces the purchasing power of income produced by existing fixed income securities, the prices at which fixed income securities trade will be reduced to compensate for the fact that the income they produce is worth less. This potential decrease in market value would be the measure of the inflation risk incurred by the Fund.

**Interest Rate Risk** The Fund invests in fixed income securities. These securities will increase or decrease in value based on changes in interest rates. If rates increase, the value of the Fund's fixed income securities generally declines. On the

other hand, if rates fall, the value of the fixed income securities generally increases. Your investment will decline in value if the value of the Fund's investments decreases.

**Liquidity Risk** The Fund may not be able to purchase or sell a security in a timely manner or at desired prices or achieve its desired weighting in a security. Liquidity risk may result from the lack of an active market or a reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified during times of market stress. The Fund may not be able to meet the requests to redeem Fund shares without significant dilution of remaining investors' interest in the Fund.

**Management Risk** The Adviser's judgments about the attractiveness, value, and potential appreciation of a particular asset class or individual security in which the Fund invests may prove to be incorrect, and there is no guarantee that individual investments will perform as anticipated.

**Market Risk** The value of the Fund's investments may decrease, sometimes rapidly or unexpectedly, due to factors affecting an issuer held by the Fund, particular industries or overall securities markets. When the value of the Fund's investments goes down, your investment in the Fund decreases in value. A variety of factors including interest rate levels, recessions, inflation, U.S. economic growth, war or acts of terrorism, natural disasters, political events, supply chain disruptions, trade barriers, staff shortages and widespread public health issues affect the securities markets. These events may cause volatility, severe market dislocations and liquidity constraints in many markets, including markets for the securities the Fund holds, and may adversely affect the Fund's investments and operations. In addition, governmental responses to these events may negatively impact the capabilities of the Fund's service providers, disrupt the Fund's operations, result in substantial market volatility and adversely impact the prices and liquidity of the Fund's investments.

**Non-U.S. and Emerging Markets Risk** The Fund may invest in non-U.S. securities and U.S. securities of companies domiciled in non-U.S. countries. As a result, the Fund may experience more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies. These companies may be subject to additional risks, including political and economic risks, civil conflicts and war, greater volatility, expropriation and nationalization risks, currency fluctuations, higher transaction costs, delayed settlement, possible non-U.S. controls on investments, and less stringent investor protection and disclosure standards. Trade tensions and sanctions on individuals and companies can contribute to market volatility, which may affect the Fund's performance. These risks are magnified in emerging markets as events and evolving conditions in certain economies or markets may alter the risks associated with investments tied to countries or regions that historically were perceived as comparatively stable becoming riskier and more volatile. The market for the securities of issuers in emerging markets is typically small and low, and nonexistent trading volumes in those securities may result in a lack of liquidity and price volatility.

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|:---|:---|
| **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** | **29** |

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| | |
|:---|:---|
| **Diamond Hill Securitized Total Return Fund** | As of February 28, 2026 |

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**Prepayment and Call Risk** The issuer of certain securities may repay principal in advance, especially when yields fall. Changes in the rate at which prepayments occur can affect the return on investment of these securities. When debt obligations are prepaid or when securities are called, the Fund may have to reinvest in securities with a lower yield. The Fund also may fail to recover additional amounts (i.e., premiums) paid for securities with higher coupons, resulting in an unexpected capital loss.

**Sovereign Debt Risk** Sovereign debt securities are issued or guaranteed by foreign governmental entities. These investments are subject to the risk that a governmental entity may delay or refuse to pay interest or repay principal on its sovereign debt. There is no legal process for collecting sovereign debts that a government does not pay nor are there bankruptcy proceedings through which all or part of the sovereign debt that a governmental entity has not repaid may be collected.

**Performance** 

No performance information is presented for the Fund at this time, as the Fund has been in operation for less than a full calendar year. In the future, performance information will be presented in this section of the prospectus. This information will give some indication of the risks of investing in the Fund by comparing the Fund's investment returns with a broad-based securities index and a supplemental index. Of course, the Fund's past performance is not necessarily an indication of its future performance. Updated performance information is available at no cost by visiting www.diamond-hill.com or by calling 888-226-5595.

The Fund's broad-based securities market index is the Bloomberg US Aggregate Bond Index. The Bloomberg US Aggregate Bond Index measures the performance of the 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 Bloomberg US Securitized: MBS, ABS and CMBS Index represents the index utilized by the Adviser for measuring performance. The Bloomberg US Securitized: MBS, ABS and CMBS Index measures the performance of all USD-denominated, investment grade, securitized issues within the Bloomberg US Aggregate Bond Index. MBS must have a weighted average maturity of at least one year. CMBS and ABS must have a remaining average life of at least one year.

The indexes are unmanaged, includes net reinvested dividends, do not reflect fees or expenses (which would lower the return), and are not available for direct investment.

**Portfolio Management** 

**Investment Adviser** Diamond Hill Capital Management, Inc.

**Portfolio Manager** Henry Song

Portfolio Manager

since 6/2025

**Buying and Selling Fund Shares** 

**Minimum Initial Investment** Investor and Class I: $2,500

Class Y: $500,000

---

| | |
|:---|:---|
| **To Place Orders** | **Regular Mail:** <br>Diamond Hill Securitized Total Return Fund <br>P.O. Box 46707 <br>Cincinnati, OH 45246 <br>Phone: 888-226-5595 |
|  | **Overnight Delivery:** <br>Diamond Hill Securitized Total Return Fund <br>225 Pictoria Drive, Suite 450 <br>Cincinnati, OH 45246 <br>Phone: 888-226-5595 |

---

**Transaction Policies** 

In general, you can buy or sell (redeem) shares of the Fund by mail or phone on any business day. You can generally pay for shares by check or wire. You may be charged wire fees or other transaction fees; ask your financial professional. When selling shares, you will receive a check, unless you request a wire. You may also buy and sell shares through a financial professional.

**Dividends, Capital Gains and Taxes** 

The Fund's distributions may be taxable as ordinary income or capital gains, except when your investment is in an IRA, 401(k) or other tax-advantaged investment plan. However, you may be subject to tax when you withdraw monies from a tax-advantaged plan.

**Payments to Broker-Dealers and Other Financial Intermediaries** 

If you purchase shares (other than Class Y shares) through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary's web site for more information.

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| | |
|:---|:---|
| **30** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

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![](diamondhill_20.jpg)

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| | | | |
|:---|:---|:---|:---|
| **Class** | **Investor** | **I** | **Y** |
| Ticker | DHRAX | DHRIX | DHRYX |

---

**Investment Objective** 

The investment objective of the Diamond Hill Core Bond Fund (the "Fund" or the "Core Bond Fund") is to maximize total return consistent with the preservation of capital.

**Fees and Expenses of the Fund** 

This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

---

| |
|:---|
| **SHAREHOLDER FEES (fees paid directly from your investment)** |
| **None** |

---

---

| | | | |
|:---|:---|:---|:---|
| **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** |
| | **Investor** | **Class I** | **Class Y** |
| **Management fees** | 0.30% | 0.30% | 0.30% |
| **Distribution (12b-1) fees** | 0.25% |  |  |
| **Other expenses<sup>1</sup>** | 0.22% | 0.18% | 0.05% |
| **Total annual fund operating expenses** | **0.77%** | **0.48%** | **0.35%** |

---

<sup>1</sup> Other expenses, which includes Administration fees, for Investor and Class I shares have been restated to reflect current expenses.

**EXPENSE EXAMPLE** 

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 Year** | **3 Years** | **5 Years** | **10 Years** |
| **Investor** | $79 | $246 | $428 | $954 |
| **Class I** | 49 | 154 | 269 | 604 |
| **Class Y** | 36 | 113 | 197 | 443 |

---

**PORTFOLIO TURNOVER** 

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected

in the Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 18% of the average value of its portfolio.

**Principal Investment Strategy** 

The Fund, under normal market conditions, intends to provide total return by investing at least 80% of its net assets at the time of purchase (plus any amounts borrowed for investment purposes) in a diversified portfolio of investment grade, fixed income securities, including bonds, debt securities and other similar U.S. dollar-denominated instruments issued by various U.S. public- or private-sector entities, by non-U.S. corporations or U.S. affiliates of non-U.S. corporations, including those in emerging markets. The Fund may invest a significant portion or all of its assets in interests in pools of mortgage-related and mortgage-backed securities at the discretion of Diamond Hill Capital Management, Inc. (the "Adviser").

Under normal circumstances, the Fund will maintain an average portfolio duration of plus or minus 20% of the duration of the Bloomberg US Aggregate Bond Index. The Bloomberg US Aggregate Bond Index is a broad-based index that represents the investment grade, U.S. dollar-denominated fixed-rate taxable bond market. Duration of the Bloomberg US Aggregate Bond Index was 5.95 as of its last reconstitution date of January 31, 2026. Duration is an approximate measure of a bond's price sensitivity to changes in interest rates. For instance, a duration of "three" means that a security's or portfolio's price would be expected to decrease by approximately 3% with a 1% increase in interest rates (assuming a parallel shift in yield curve).

When selecting securities for the Fund, the Adviser performs a bottom-up, research-based approach in seeking to identify opportunities. In buying and selling securities for the Fund, the Adviser performs a risk/reward analysis that includes an evaluation of credit risk, interest rate risk, prepayment risk, and the legal and technical structure of the security. The Adviser will attempt to take advantage of inefficiencies that it believes exist in the fixed-income markets, such as the diversity of participants working with different objectives and repeated temporary supply-demand imbalances. The Adviser seeks to invest in securities that the Adviser expects to offer attractive prospects for current income and/or capital appreciation in relation to the risk borne.

**Main Risks** 

All investments carry a certain amount of risk, and the Fund cannot guarantee that it will achieve its investment objective. An investment in the Fund is not a deposit or obligation of any bank, is not endorsed or guaranteed by any bank, and is not insured by the Federal Deposit Insurance Corporation or any other government agency. You may lose money by investing in

---

| | |
|:---|:---|
| **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** | **31** |

---

---

| | |
|:---|:---|
| **Diamond Hill Core Bond Fund Summary** | As of February 28, 2026 |

---

the Fund. Below are the main risks of investing in the Fund. All of the risks listed below are significant to the Fund, regardless of the order in which they appear.

**Asset-Backed, Mortgage-Related and Mortgage-Backed Securities Risk** Asset-backed, mortgage-related and mortgage-backed securities, including so-called "sub-prime" mortgages, are subject to certain risks including prepayment and call risks. When mortgages and other obligations are prepaid and when securities are called, the Fund may have to reinvest in securities with a lower yield or may fail to recover additional amounts (i.e., premiums) paid for securities with higher interest rates, resulting in an unexpected capital loss and/or a decrease in the amount of dividends and yield. In periods of rising interest rates, the Fund may be subject to extension risk, and may receive principal later than expected. As a result, in periods of rising interest rates, the Fund may exhibit additional volatility. During periods of difficult or frozen credit markets, changes in interest rates, or deteriorating economic conditions, such securities may decline in value, face valuation difficulties, become more volatile and/or become illiquid.

Collateralized mortgage obligations ("CMOs") and stripped mortgage-backed securities, including those structured as interest only ("IOs") and principal only ("POs"), are more volatile and may be more sensitive to the rate of prepayments than other mortgage-related securities. CMOs are issued in multiple classes, and a class with an earlier final payment date may have certain preferences in receiving principal payments or earning interest. As a result, the value of some classes in which the Fund invests may be more volatile and may be subject to higher risk of non-payment. The risk of default for "sub-prime" mortgages is generally higher than other types of mortgage-backed securities.

The values of IO and PO mortgage-backed securities are more volatile than other types of mortgage-related securities. They are very sensitive not only to changes in interest rates, but also to the rate of prepayments. In addition, because there may be a drop in trading volume, an inability to find a ready buyer, or the imposition of legal restrictions on the resale of securities, these instruments may be illiquid. The Fund will be exposed to additional risk to the extent that it uses inverse floaters and inverse IOs. These securities are more volatile and more sensitive to interest rate changes than other types of debt securities. If interest rates move in a manner not anticipated by the Adviser, the Fund could lose all or substantially all of its investment in inverse IOs.

**Consumer Loans Risk** Investments in consumer loans expose the Fund to additional risks beyond those normally associated with more traditional debt instruments. The Fund's ability to receive payments in connection with the loan depends primarily on the financial condition of the borrower and whether or not a loan is secured by collateral, although there is no assurance that the collateral securing a loan will be sufficient to satisfy the loan obligation. In addition, bank loans often have contractual restrictions on resale, which can delay the sale and adversely impact the sale price. Transactions involving bank loans may have significantly longer settlement periods than more traditional investments (settlement can take longer than 7

days) and often involve borrowers whose financial condition is troubled or highly leveraged, which increases the risk that the Fund may not receive its proceeds in a timely manner or that the Fund may incur losses in order to pay redemption proceeds to its shareholders. In addition, loans are not registered under the federal securities laws like stocks and bonds, so investors in loans have less protection against improper practices than investors in registered securities.

**Credit Risk** There is a risk that issuers and counterparties will not make payments on securities and repurchase agreements held by a fund. Such default could result in losses to the Fund. In addition, the credit quality of securities held by the Fund may be lowered if an issuer's financial condition changes. Lower credit quality may lead to greater volatility in the price of a security and in shares of the Fund. Lower credit quality also may affect liquidity and make it difficult for the Fund to sell the security.

**Current Market Environment Risk** Various sectors of the financial markets may experience an extended period of adverse conditions. Market uncertainty can increase dramatically, and these conditions may result in disruptions of the equity markets, periods of reduced liquidity, greater general volatility, and a contraction of availability of credit and lack of price transparency. In particular, certain types of securitized bond investments may come under stress due to economic factors and trends, such as higher than expected interest rates, property vacancies and consumer stress.

**Government Securities Risk** The Fund may invest in securities issued or guaranteed by the U.S. government or its agencies and instrumentalities. These securities may be backed by the credit of the government as a whole or only by the issuing agency. U.S. Treasury bonds, notes, and bills and some agency securities, such as those issued by the Federal Housing Administration and the Government National Mortgage Association, are backed by the full faith and credit of the U.S. government as to payment of principal and interest and are the highest quality government securities. Other securities issued by U.S. government agencies or instrumentalities, such as securities issued by the Federal Home Loan Banks and the Federal Home Loan Mortgage Corporation, are supported only by the credit of the agency that issued them, and not by the U.S. government. Other securities issued by U.S. government agencies or instrumentalities are supported only by the agency's right to borrow money from the U.S. Treasury under certain circumstances, but are not backed by the full faith and credit of the U.S. government. No assurance can be given that the U.S. government would provide financial support to its agencies and instrumentalities if not required to do so by law.

**Inflation Risk** Because inflation reduces the purchasing power of income produced by existing fixed income securities, the prices at which fixed income securities trade will be reduced to compensate for the fact that the income they produce is worth less. This potential decrease in market value would be the measure of the inflation risk incurred by the Fund.

---

| | |
|:---|:---|
| **32** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

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---

| | |
|:---|:---|
| **Diamond Hill Core Bond Fund Summary** | As of February 28, 2026 |

---

**Interest Rate Risk** The Fund invests in fixed income securities. These securities will increase or decrease in value based on changes in interest rates. If rates increase, the value of the Fund's fixed income securities generally declines. On the other hand, if rates fall, the value of the fixed income securities generally increases. Your investment will decline in value if the value of the Fund's investments decreases.

**Liquidity Risk** The Fund may not be able to purchase or sell a security in a timely manner or at desired prices or achieve its desired weighting in a security. Liquidity risk may result from the lack of an active market or a reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified during times of market stress. The Fund may not be able to meet the requests to redeem Fund shares without significant dilution of remaining investors' interest in the Fund.

**Management Risk** The Adviser's judgments about the attractiveness, value, and potential appreciation of a particular asset class or individual security in which the Fund invests may prove to be incorrect, and there is no guarantee that individual investments will perform as anticipated.

**Market Risk** The value of the Fund's investments may decrease, sometimes rapidly or unexpectedly, due to factors affecting an issuer held by the Fund, particular industries or overall securities markets. When the value of the Fund's investments goes down, your investment in the Fund decreases in value. A variety of factors including interest rate levels, recessions, inflation, U.S. economic growth, war or acts of terrorism, natural disasters, political events, supply chain disruptions, trade barriers, staff shortages and widespread public health issues affect the securities markets. These events may cause volatility, severe market dislocations and liquidity constraints in many markets, including markets for the securities the Fund holds, and may adversely affect the Fund's investments and operations. In addition, governmental responses to these events may negatively impact the capabilities of the Fund's service providers, disrupt the Fund's operations, result in substantial market volatility and adversely impact the prices and liquidity of the Fund's investments.

**Non-U.S. and Emerging Markets Risk** The Fund may invest in non-U.S. securities and U.S. securities of companies domiciled in non-U.S. countries. As a result, the Fund may experience more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies. These companies may be subject to additional risks, including political and economic risks, civil conflicts and war, greater volatility, expropriation and nationalization risks, currency fluctuations, higher transaction costs, delayed settlement, possible non-U.S. controls on investments, and less stringent investor protection and disclosure standards. Trade tensions and sanctions on individuals and companies can contribute to market volatility, which may affect the fund's performance. These risks are magnified in emerging markets as events and evolving conditions in certain economies or markets may alter the risks associated with investments tied to countries or regions that historically were perceived as comparatively stable becoming riskier and more volatile. The market for the

securities of issuers in emerging markets is typically small and low, and nonexistent trading volumes in those securities may result in a lack of liquidity and price volatility.

**Prepayment and Call Risk** The issuer of certain securities may repay principal in advance, especially when yields fall. Changes in the rate at which prepayments occur can affect the return on investment of these securities. When debt obligations are prepaid or when securities are called, the Fund may have to reinvest in securities with a lower yield. The Fund also may fail to recover additional amounts (i.e., premiums) paid for securities with higher coupons, resulting in an unexpected capital loss.

**Performance** 

The following bar chart and table show two aspects of the Fund: volatility and performance. The bar chart shows the volatility — or variability — of the Fund's annual total returns over time, and shows that Fund performance can change from year to year. The table shows the Fund's average annual total returns for certain time periods compared to the returns of a broad-based securities market index. The bar chart and table provide some indication of the risks of investing in the Fund. Of course, the Fund's past performance (before and after taxes) is not necessarily an indication of its future performance. *Updated performance information is available by visiting www.diamond-hill.com or by calling 888-226-5595.* 

**CLASS I ANNUAL TOTAL RETURN-YEARS ENDED 12/31** 

---

| | |
|:---|:---|
| **Best Quarter:** | 4Q 2023, +6.41% |
| **Worst Quarter:** | 1Q 2022, -4.99% |

---

**AVERAGE ANNUAL TOTAL RETURNS AS OF 12/31/25** 

After-tax returns are calculated using the highest historical individual federal marginal income tax rate and do not reflect the impact of state and local taxes. Actual after-tax returns depend on a shareholder's tax situation and may differ from those shown. After-tax returns are not relevant for shareholders who hold Fund shares in tax-deferred accounts or to shares held by non-taxable entities. After-tax returns are shown for Class I shares only and will vary from the after-tax returns for the other share classes.

---

| | |
|:---|:---|
| **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** | **33** |

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---

| | |
|:---|:---|
| **Diamond Hill Core Bond Fund Summary** | As of February 28, 2026 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Inception <br> Date of <br> Class** | **One Year** | **Five <br> Years** | **Since<br> Inception** |
| **Class I** Before Taxes | 07/05/16 | 7.16% | 0.61% | 2.33% |
| &nbsp;&nbsp;&nbsp;After Taxes on Distributions |  | 5.08 | (0.97) | 0.96 |
| &nbsp;&nbsp;&nbsp;After Taxes on Distributions and Sale of Fund Shares |  | 4.21 | (0.23) | 1.18 |
| **Investor** Before Taxes | 07/05/16 | 6.95 | 0.35 | 2.04 |
| **Class Y** Before Taxes | 07/05/16 | 7.39 | 0.74 | 2.45 |
| Bloomberg US Aggregate Bond Index |  | 7.30 | (0.36) | 1.49 |

---

The Fund's broad-based securities market index is the Bloomberg US Aggregate Bond Index, which 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 Bloomberg US Aggregate Bond Index also represents the index utilized by the Adviser for measuring performance.

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.

**Portfolio Management** 

**Investment Adviser** Diamond Hill Capital Management, Inc.

**Portfolio Managers** Henry Song

Portfolio Manager

since 7/2016

Mark Jackson

Portfolio Manager

since 7/2016

**Buying and Selling Fund Shares** 

**Minimum Initial Investment** Investor and Class I: $2,500

Class Y: $500,000

---

| | |
|:---|:---|
| **To Place Orders** | **Regular Mail:** <br> Diamond Hill Core Bond Fund <br>P.O. Box 46707 <br>Cincinnati, OH 45246 <br>Phone: 888-226-5595 |
|  | **Overnight Delivery:** <br>Diamond Hill Core Bond Fund <br>225 Pictoria Drive, Suite 450 <br>Cincinnati, OH 45246 <br>Phone: 888-226-5595 |

---

**Transaction Policies** 

In general, you can buy or sell (redeem) shares of the Fund by mail or phone on any business day. You can generally pay for shares by check or wire. You may be charged wire fees or other transaction fees; ask your financial professional. When selling shares, you will receive a check, unless you request a wire. You may also buy and sell shares through a financial professional.

**Dividends, Capital Gains and Taxes** 

The Fund's distributions may be taxable as ordinary income or capital gains, except when your investment is in an IRA, 401(k) or other tax-advantaged investment plan. However, you may be subject to tax when you withdraw monies from a tax-advantaged plan.

**Payments to Broker-Dealers and Other Financial Intermediaries** 

If you purchase shares (other than Class Y shares) through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary's web site for more information.

---

| | |
|:---|:---|
| **34** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

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![](diamondhill_22.jpg)

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| | | | |
|:---|:---|:---|:---|
| **Class** | **Investor** | **I** | **Y** |
| Ticker | DHNAX | DHNIX | DHNYX |

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**Investment Objective** 

The investment objective of the Diamond Hill Core Plus Bond Fund (the "Fund" or the "Core Plus Bond Fund") is to maximize total return consistent with the preservation of capital.

**Fees and Expenses of the Fund** 

This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

---

| |
|:---|
| **SHAREHOLDER FEES (fees paid directly from your investment)** |
| **None** |

---

---

| | | | |
|:---|:---|:---|:---|
| **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** |
| | **Investor** | **Class I** | **Class Y** |
| **Management fees** | 0.40% | 0.40% | 0.40% |
| **Distribution (12b-1) fees** | 0.25% |  |  |
| **Other expenses<sup>1</sup>** | 0.22% | 0.18% | 0.05% |
| **Total annual fund operating expenses** | **0.87%** | **0.58%** | **0.45%** |

---

<sup>1</sup> Other expenses, which includes Administration fees, for Investor and Class I shares have been restated to reflect current expenses.

**EXPENSE EXAMPLE** 

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1 Year** | **3 Years** | **5 Years** | **10 Years** |
| **Investor** | $89 | $278 | $482 | $1073 |
| **Class I** | 59 | 186 | 324 | 726 |
| **Class Y** | 46 | 144 | 252 | 567 |

---

**PORTFOLIO TURNOVER** 

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected

in the Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 50% of the average value of its portfolio.

**Principal Investment Strategy** 

The Fund, under normal market conditions, intends to provide total return by investing at least 80% of its net assets at the time of purchase (plus any amounts borrowed for investment purposes) in a diversified portfolio of fixed income securities, including bonds, debt securities, bank loans and other similar U.S. dollar-denominated instruments issued by various U.S. public- or private-sector entities, or by non-U.S. corporations or U.S. affiliates of non-U.S. corporations, including those in emerging markets. The Fund may invest a significant portion or all of its assets in securitized bond investments also referred to as "structured product securities" or "structured products." Securitized bond investments include interests in pools of secured loans backed by commercial real estate, residential real estate, commercial or consumer loans, and securitizations such as collateralized debt obligations, collateralized loan obligations ("CLOs"), agency and non-agency mortgage-backed securities ("MBS") (including commercial mortgage-backed securities ("CMBS"), residential mortgage-backed securities ("RMBS"), and collateralized mortgage obligations ("CMOs")), asset-backed securities ("ABS"), and other similar securities and related instruments at the discretion of Diamond Hill Capital Management, Inc. (the "Adviser"). The Fund may invest up to 35% of its net assets in below-investment grade securities, including those referred to as "junk bonds" (or the unrated equivalent) at the time of purchase.

Under normal circumstances, the Fund will maintain an average portfolio duration of plus or minus 20% of the duration of the Bloomberg US Aggregate Bond Index. The Bloomberg US Aggregate Bond Index is a broad-based index that represents the investment grade, U.S. dollar-denominated fixed-rate taxable bond market. Duration of the Bloomberg US Aggregate Bond Index was 5.95 years as of its last reconstitution date of January 31, 2026. Duration is an approximate measure of a bond's price sensitivity to changes in interest rates. For instance, a duration of "three" means that a security's or portfolio's price would be expected to decrease by approximately 3% with a 1% increase in interest rates (assuming a parallel shift in the yield curve).

When selecting securities for investment, the Adviser employs a bottom-up, research-based approach in seeking to identify opportunities. In buying and selling securities for the Fund, the Adviser performs a risk/reward analysis that includes an evaluation of credit risk, interest rate risk, prepayment risk, and the legal and technical structure of the security. The Adviser will attempt to take advantage of inefficiencies that it believes exist in the fixed-income markets, such as the diversity of participants working with different objectives and repeated

---

| | |
|:---|:---|
| **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** | **35** |

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| | |
|:---|:---|
| **Diamond Hill Core Bond Plus Fund Summary** | As of February 28, 2026 |

---

temporary supply-demand imbalances. The Adviser seeks to invest in securities that the Adviser expects to offer attractive prospects for current income and/or capital appreciation in relation to the risk borne.

**Main Risks** 

All investments carry a certain amount of risk, and the Fund cannot guarantee that it will achieve its investment objective. An investment in the Fund is not a deposit or obligation of any bank, is not endorsed or guaranteed by any bank, and is not insured by the Federal Deposit Insurance Corporation or any other government agency. You may lose money by investing in the Fund. Below are the main risks of investing in the Fund. All of the risks listed below are significant to the Fund, regardless of the order in which they appear.

**Adjustable Rate Mortgage Loans ("ARMs") Risk** As with fixed rate mortgages, there can be no certainty as to the rate of prepayments on the ARMs in either stable or changing interest rate environments. In addition, there can be no certainty as to whether increases in the principal balances of the ARMs due to the addition of deferred interest may result in a default rate higher than that on ARMs that do not provide for negative amortization. Other factors affecting prepayment of ARMs include changes in mortgagors' housing needs, job transfers, unemployment, mortgagors' net equity in the mortgage properties and servicing decisions.

**Asset-Backed, Mortgage-Related and Mortgage-Backed Securities Risk** Asset-backed, mortgage-related and mortgage-backed securities, including so-called "sub-prime" mortgages, are subject to certain other risks including prepayment and call risks. When mortgages and other obligations are prepaid and when securities are called, the Fund may have to reinvest in securities with a lower yield or may fail to recover additional amounts (i.e., premiums) paid for securities with higher interest rates, resulting in an unexpected capital loss and/or a decrease in the amount of dividends and yield. In periods of rising interest rates, the Fund may be subject to extension risk, and may receive principal later than expected. As a result, in periods of rising interest rates, the Fund may exhibit additional volatility. During periods of difficult or frozen credit markets, changes in interest rates, or deteriorating economic conditions, such securities may decline in value, face valuation difficulties, become more volatile and/or become illiquid.

CMOs and stripped mortgage-backed securities, including those structured as interest only ("IOs") and principal only ("POs"), are more volatile and may be more sensitive to the rate of prepayments than other mortgage-related securities. CMOs are issued in multiple classes, and a class with an earlier final payment date may have certain preferences in receiving principal payments or earning interest. As a result, the value of some classes in which the Fund invests may be more volatile and may be subject to higher risk of non-payment. The risk of default for "sub-prime" mortgages is generally higher than other types of mortgage-backed securities.

The values of IO and PO mortgage-backed securities are more volatile than other types of mortgage-related securities. They are very sensitive not only to changes in interest rates, but also to the rate of prepayments. In addition, because there may be a drop in trading volume, an inability to find a ready buyer, or the imposition of legal restrictions on the resale of securities, these instruments may be illiquid. The Fund will be exposed to additional risk to the extent that it uses inverse floaters and inverse IOs. These securities are more volatile and more sensitive to interest rate changes than other types of debt securities. In response to changes in market interest rates or other market conditions, the value of an inverse floater may increase or decrease at a multiple of the increase or decrease in the value of the underlying securities. If interest rates move in a manner not anticipated by the Adviser, the Fund could lose all or substantially all of its investment in inverse IOs.

**CLOs Risk** CLOs are subject to credit, interest rate, valuation, and prepayment and call, and extension risks. These securities also are subject to risk of default on the underlying asset, particularly during periods of economic downturn. The market value of CLOs may be affected by, changes in the market value of the underlying assets held by the CLO.

**Credit Risk** There is a risk that issuers and counterparties will not make payments on securities and repurchase agreements held by the Fund. Such default could result in losses to the Fund. In addition, the credit quality of securities held by the Fund may be lowered if an issuer's financial condition changes. Lower credit quality may lead to greater volatility in the price of a security and in shares of the Fund. Lower credit quality also may affect liquidity and make it difficult for the Fund to sell the security.

**Current Market Environment Risk** Various sectors of the financial markets may experience an extended period of adverse conditions. Market uncertainty can increase dramatically, and these conditions may result in disruptions of the equity markets, periods of reduced liquidity, greater general volatility, and a contraction of availability of credit and lack of price transparency. In particular, certain types of securitized bond investments may come under stress due to economic factors and trends, such as higher than expected interest rates, property vacancies and consumer stress.

**Extension Risk** If interest rates rise, repayments of principal on certain debt securities, including, but not limited to, floating rate loans and mortgage-related securities, may occur at a slower rate than expected and the expected maturity of those securities could lengthen as a result. This may drive the prices of these securities down because their interest rates are lower than the current interest rate and they remain outstanding longer. In periods of rising rates, the Fund may exhibit additional volatility.

**Government Securities Risk** The Fund may invest in securities issued or guaranteed by the U.S. government or its agencies and instrumentalities. These securities may be backed by the credit of the government as a whole or only by the issuing agency. U.S. Treasury bonds, notes, and bills and some agency securities, such as those issued by the Federal Housing Administration and the Government

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|:---|:---|
| **36** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

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| | |
|:---|:---|
| **Diamond Hill Core Bond Plus Fund Summary** | As of February 28, 2026 |

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National Mortgage Association, are backed by the full faith and credit of the U.S. government as to payment of principal and interest and are the highest quality government securities. Other securities issued by U.S. government agencies or instrumentalities, such as securities issued by the Federal Home Loan Banks and the Federal Home Loan Mortgage Corporation, are supported only by the credit of the agency that issued them, and not by the U.S. government. Other securities issued U.S. government agencies or instrumentalities are supported only by the agency's right to borrow money from the U.S. Treasury under certain circumstances, but are not backed by the full faith and credit of the U.S. government. No assurance can be given that the U.S. government would provide financial support to its agencies and instrumentalities if not required to do so by law.

**High Yield Securities Risk** The Fund will purchase fixed income securities rated below the investment grade category. Securities in this rating category are speculative. Changes in economic conditions or other circumstances may have a greater effect on the ability of issuers of these securities to make principal and interest payments than they do on issuers of higher grade securities.

**Illiquid Securities Risk** The Fund may invest up to 15% of the value of its net assets in securities that are illiquid. An illiquid investment is any investment that cannot be disposed of in current market conditions within seven days in the normal course of business at approximately the amount at which it is valued by the Fund and without significantly changing the value of the investment. The price the Fund pays for illiquid securities or receives upon resale may be lower than the price paid or received for similar securities with a more liquid market. In addition, there may be no market or a limited market in which to sell illiquid securities.

**Inflation Risk** Because inflation reduces the purchasing power of income produced by existing fixed income securities, the prices at which fixed income securities trade will be reduced to compensate for the fact that the income they produce is worth less. This potential decrease in market value would be the measure of the inflation risk incurred by the Fund.

**Interest Rate Risk** The Fund invests in fixed income securities. These securities will increase or decrease in value based on changes in interest rates. If rates increase, the value of the Fund's fixed income securities generally declines. On the other hand, if rates fall, the value of the fixed income securities generally increases. Your investment will decline in value if the value of the Fund's investments decreases.

**Liquidity Risk** The Fund may not be able to purchase or sell a security in a timely manner or at desired prices or achieve its desired weighting in a security. Liquidity risk may result from the lack of an active market or a reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified during times of market stress. The Fund may not be able to meet the requests to redeem Fund shares without significant dilution of remaining investors' interest in the Fund.

**Loan Risk** Investments in loans expose the Fund to additional risks beyond those normally associated with more traditional debt instruments. The Fund's ability to receive payments in connection with the loan depends primarily on the financial condition of the borrower and whether or not a loan is secured by collateral, although there is no assurance that the collateral securing a loan will be sufficient to satisfy the loan obligation.

The Fund may also invest in loan assignments and participations ("Loans") and commitments to purchase loan assignments (Unfunded Commitments) including below investment grade Loans and Unfunded Commitments. Loans will typically consist of senior floating rate loans (Senior Loans), but may also include secured and unsecured loans, second lien loans or more junior loans (Junior Loans) and bridge loans. Loans may be issued by obligors in the U.S. or in foreign or emerging markets. When the Fund acquires a loan participation, the Fund typically enters into a contractual relationship with the lender or third party selling such participations, but not the borrower. As a result, the Fund assumes the credit risk not only of the borrower, but also of the seller of the loan participation and any other parties interpositioned between the Fund and the borrower. The Fund may not benefit directly from the collateral supporting the loan in which it has purchased the loan participations or assignments.

In recent years, there has been a broad trend of weaker or less restrictive covenant protections in the loan market, which may allow borrowers to exercise more flexibility with respect to certain activities than borrowers who are subject to stronger or more protective covenants, which might negatively impact the loans held by the Fund. Loans are also vulnerable to market sentiment such that economic conditions or other events may reduce the demand for loans and cause their value to decline rapidly and unpredictably. No active trading market may exist for some of the loans and certain loans may be subject to restrictions on resale. The inability to dispose of loans in a timely fashion could result in losses to the Fund. In addition, bank loans often have contractual restrictions on resale, which can delay the sale and adversely impact the sale price. Transactions involving bank loans may have significantly longer settlement periods than more traditional investments (settlement can take longer than 7 days) and often involve borrowers whose financial condition is troubled or highly leveraged, which increases the risk that the Fund may not receive its proceeds in a timely manner or that the Fund may incur losses in order to pay redemption proceeds to its shareholders. In addition, loans are not registered under the federal securities laws like stocks and bonds, so investors in loans may have less protection against improper practices than investors in registered securities.

**Management Risk** The Adviser's judgments about the attractiveness, value, and potential appreciation of a particular asset class or individual security in which the Fund invests may prove to be incorrect, and there is no guarantee that individual investments will perform as anticipated.

**Market Risk** The value of the Fund's investments may decrease, sometimes rapidly or unexpectedly, due to factors affecting an issuer held by the Fund, particular industries

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| **Diamond Hill Core Bond Plus Fund Summary** | As of February 28, 2026 |

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or overall securities markets. When the value of the Fund's investments goes down, your investment in the Fund decreases in value. A variety of factors including interest rate levels, recessions, inflation, U.S. economic growth, war or acts of terrorism, natural disasters, political events, supply chain disruptions, trade barriers, staff shortages and widespread public health issues affect the securities markets. These events may cause volatility, severe market dislocations and liquidity constraints in many markets, including markets for the securities the Fund holds, and may adversely affect the Fund's investments and operations. In addition, governmental responses to these events may negatively impact the capabilities of the Fund's service providers, disrupt the Fund's operations, result in substantial market volatility and adversely impact the prices and liquidity of the Fund's investments.

**Non-U.S. and Emerging Markets Risk** The Fund may invest in non-U.S. securities and U.S. securities of companies domiciled in non-U.S. countries. As a result, the Fund may experience more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies. These companies may be subject to additional risks, including political and economic risks, civil conflicts and war, greater volatility, expropriation and nationalization risks, higher transaction costs, delayed settlement, possible non-U.S. controls on investments, and less stringent investor protection and disclosure standards. Trade tensions and sanctions on individuals and companies can contribute to market volatility, which may affect the fund's performance. These risks are magnified in emerging markets as events and evolving conditions in certain economies or markets may alter the risks associated with investments tied to countries or regions that historically were perceived as comparatively stable becoming riskier and more volatile. The market for the securities of issuers in emerging markets is typically small and low, and nonexistent trading volumes in those securities may result in a lack of liquidity and price volatility.

**Prepayment and Call Risk** The issuer of certain securities may repay principal in advance, especially when yields fall. Changes in the rate at which prepayments occur can affect the return on investment of these securities. When debt obligations are prepaid or when securities are called, the Fund may have to reinvest in securities with a lower yield. The Fund also may fail to recover additional amounts (i.e., premiums) paid for securities with higher coupons, resulting in an unexpected capital loss.

**Real Estate Risk** Real estate related investments may decline in value as a result of factors affecting the real estate industry, such as the supply of real property in certain markets, changes in zoning laws, delays in completion of construction, changes in real estate values, changes in property taxes, levels of occupancy, and local and regional market conditions.

**Performance** 

The following bar chart and table show two aspects of the Fund: volatility and performance. The bar chart shows the volatility — or variability — of the Fund's annual total returns over time, and shows that Fund performance can change from year to year. The table shows the Fund's average annual total

returns for certain time periods compared to the returns of a broad-based securities market index. The bar chart and table provide some indication of the risks of investing in the Fund. Of course, the Fund's past performance (before and after taxes) is not necessarily an indication of its future performance.*Updated performance information is available by visiting www.diamond-hill.com or by calling 888-226-5595.* 

**CLASS I ANNUAL TOTAL RETURN-YEARS ENDED 12/31** 

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|:---|:---|
| **Best Quarter:** | 1Q 2025, 2.99% |
| **Worst Quarter:** | 4Q 2025, 1.11% |

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**AVERAGE ANNUAL TOTAL RETURNS AS OF 12/31/25** 

After-tax returns are calculated using the highest historical individual federal marginal income tax rate and do not reflect the impact of state and local taxes. Actual after-tax returns depend on a shareholder's tax situation and may differ from those shown. After-tax returns are not relevant for shareholders who hold Fund shares in tax-deferred accounts or to shares held by non-taxable entities. After-tax returns are shown for Class I shares only and will vary from the after-tax returns for the other share classes.

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|:---|:---|:---|:---|
| | **Inception** <br>**Date of <br> Class** | **One Year** | **Since <br> Inception** |
| **Class I** Before Taxes | 10/15/24 | 8.03% | 6.04% |
| &nbsp;&nbsp;&nbsp;After Taxes on Distributions |  | 6.01 | 4.09 |
| &nbsp;&nbsp;&nbsp;After Taxes on Distributions and Sale of Fund Shares |  | 4.72 | 3.76 |
| **Investor** Before Taxes | 10/15/24 | 7.77 | 5.76 |
| **Class Y** Before Taxes | 10/15/24 | 8.25 | 6.22 |
| Bloomberg US Aggregate Bond Index |  | 7.30 | 4.29 |

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The Fund's broad-based securities market index is the Bloomberg US Aggregate Bond Index. The Bloomberg US Aggregate Bond 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 Bloomberg US Aggregate Bond Index also represents the index utilized by the Adviser for measuring performance.

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| **38** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

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| **Diamond Hill Core Bond Plus Fund Summary** | As of February 28, 2026 |

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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.

**Portfolio Management** 

**Investment Adviser** Diamond Hill Capital Management, Inc.

**Portfolio Managers** Henry Song

Portfolio Manager

since 10/2024

Mark Jackson

Portfolio Manager

since 10/2024

Arthur Cheng

Portfolio Manager

since 10/2024

**Buying and Selling Fund Shares** 

**Minimum Initial Investment** Investor and Class I: $2,500

Class Y: $500,000

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| **To Place Orders** | **Regular Mail:** <br> Diamond Hill Core Plus Bond Fund <br>P.O. Box 46707 <br>Cincinnati, OH 45246 <br>Phone: 888-226-5595 |
|  | **Overnight Delivery:** <br>Diamond Hill Core Plus Bond Fund <br>225 Pictoria Drive, Suite 450 <br>Cincinnati, OH 45246 <br>Phone: 888-226-5595 |

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**Transaction Policies** 

In general, you can buy or sell (redeem) shares of the Fund by mail or phone on any business day. You can generally pay for shares by check or wire. You may be charged wire fees or other transaction fees; ask your financial professional. When selling shares, you will receive a check, unless you request a wire. You may also buy and sell shares through a financial professional.

**Dividends, Capital Gains and Taxes** 

The Fund's distributions may be taxable as ordinary income or capital gains, except when your investment is in an IRA, 401(k) or other tax-advantaged investment plan. However, you may be subject to tax when you withdraw monies from a tax-advantaged plan.

**Payments to Broker-Dealers and Other Financial Intermediaries** 

If you purchase shares (other than Class Y shares) through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary's web site for more information.

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| **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** | **39** |

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**Fund Details**<br>

**Additional Information About Investment Strategies and Related Risks** 

**Securities Lending** 

To generate additional income, each Fund may lend its portfolio securities to financial institutions, meaning that a significant portion of the Fund could be on loan at any given time. Cash collateral from borrowers is invested in a registered investment company managed by State Street Investment Management (the "State Street Fund") that was established solely to hold securities lending collateral. The Funds and certain other funds managed by the Adviser are the only investors in the State Street Fund and own all its shares. While this practice will not impact a Fund's principal investment strategy, it does subject the Fund to the securities lending risk described in the Investment Risks section below. Any expenses associated with securities lending are not reflected in the fee table for the Funds.

**Investments in Other Diamond Hill Funds** 

Each Fund may invest in shares of another investment company, including another Diamond Hill Fund. While this practice will not impact a Fund's principal investment strategy, it does subject the Fund to the investment company risk described in the Investment Risks section below. To the extent a Fund invests in an underlying Diamond Hill Fund, the Adviser has contractually agreed to permanently waive a portion of the Fund's management fee in the pro rata amount of the management fee charged by the underlying Diamond Hill Funds. This agreement can only be terminated by the Board of Trustees ("Board") of the Diamond Hill Funds (the "Trust"). "Acquired Fund Fees and Expenses" and the amount of the contractual waiver, as shown on the expense table in the Fund Summary for each Fund, will vary with changes in the expenses of the underlying Diamond Hill Fund, as well as the allocation of the Fund's assets.

**Equity Securities** 

Except for the Short Duration Securitized Bond Fund, Securitized Total Return Fund, Core Bond Fund and Core Plus Bond Fund, each Fund will invest primarily in equity securities. Although not a principal strategy, a Fund's investment in equity securities may also include, in addition to common and preferred stock, rights and warrants, S&P Depositary Receipts and American Depositary Receipts.

**DIAMOND HILL SMALL CAP FUND** 

The Fund, under normal market conditions, invests at least 80% of its net assets in U.S. equity securities with small market capitalizations that the Adviser believes are undervalued. This is a non-fundamental investment policy that can be changed by the Board upon 60 days' prior notice to shareholders.

**DIAMOND HILL SMALL-MID CAP FUND** 

The Fund, under normal market conditions, invests at least 80% of its net assets in U.S. equity securities with small and medium market capitalizations that the Adviser believes are undervalued. This is a non-fundamental investment policy that can be changed by the Board upon 60 days' prior notice to shareholders.

**DIAMOND HILL MID CAP FUND** 

The Fund, under normal market conditions, invests at least 80% of its net assets in U.S. equity securities with medium market capitalizations that the Adviser believes are undervalued. This is a non-fundamental investment policy that can be changed by the Board upon 60 days' prior notice to shareholders.

**DIAMOND HILL LARGE CAP FUND** 

The Fund, under normal market conditions, invests at least 80% of its net assets in U.S. equity securities with large market capitalizations that the Adviser believes are undervalued. This is a non-fundamental investment policy that can be changed by the Board upon 60 days' prior notice to shareholders.

**DIAMOND HILL SELECT FUND** 

The Fund, under normal market conditions, invests its assets in U.S. equity securities of any size capitalization that the Adviser believes are undervalued. The Fund is non-diversified and intends to focus its investments in a limited number of securities. This is a non-fundamental investment policy that can be changed by the Board upon 60 days' prior notice to shareholders.

**DIAMOND HILL LONG-SHORT FUND** 

The Fund, under normal market conditions, invests its assets in U.S. equity securities of any size capitalization that the Adviser believes are undervalued and selling short equity securities of any size capitalization the Adviser believes are overvalued. This is a non-fundamental investment policy that can be changed by the Board upon 60 days' prior notice to shareholders.

**DIAMOND HILL INTERNATIONAL FUND** 

The Fund, under normal market conditions, invests its assets primarily in non-U.S. equity securities of companies of any size that the Adviser believes are undervalued. This is a non-fundamental investment policy that can be changed by the Board upon 60 days' prior notice to shareholders.

**DIAMOND HILL SHORT DURATION SECURITIZED BOND FUND** 

Under normal market conditions, the Fund invests at least 80% of its net assets at the time of purchase in securitized bond investments. Securitized bond investments are also referred to as "structured product securities" or "structured products." Securitized bond investments include interests in pools of secured loans backed by commercial real estate, residential real estate, commercial or consumer loans, and securitizations such as agency and non- MBS (including CMBS, RMBS, and CMOs), ABS, and other similar securities and related instruments.

Agency MBS are issued or guaranteed by the U.S. government, its agencies or instrumentalities, which include mortgage pass-through securities representing interests in pools of mortgage loans issued or guaranteed by Ginnie Mae, Fannie Mae, Sallie Mae or Freddie Mac. The Fund may also invest in other fixed income instruments, which include bonds,

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| **40** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

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**Fund Details**<br>

debt or credit securities and other similar instruments issued by various U.S. and non-U.S. public or private sector entities at the discretion of the Adviser.

Under normal circumstances, the Fund will maintain an average portfolio duration of less than three, although under certain market conditions, such as periods of significant volatility in interest rates and spreads, the Fund's average duration may be longer than three. Duration is an approximate measure of a bond's price sensitivity to changes in interest rates. For instance, a duration of "three" means that a security's or portfolio's price would be expected to decrease by approximately 3% with a 1% increase in interest rates (assuming a parallel shift in yield curve). The Fund may invest in individual fixed income securities with effective durations in excess of three, provided, however, such investments are made within the constraints above.

The Fund may invest up to 15% of its assets in below investment grade securities, including those referred to as "junk bonds" (or the unrated equivalent) at the time of purchase.

This is a non-fundamental investment policy that can be changed by the Board upon 60 days' prior notice to shareholders.

**DIAMOND HILL SECURITIZED TOTAL RETURN FUND** 

Under normal market conditions, the Fund invests at least 80% of its net assets at the time of purchase in securitized bond investments. Securitized bond investments are also referred to as "structured product securities" or "structured products." Securitized bond investments include interests in pools of secured loans backed by commercial real estate, residential real estate, commercial or consumer loans, and securitizations such as agency and non-agency MBS (including CMBS, RMBS, and CMOs), ABS, and other similar securities and related instruments.

Agency MBS are issued or guaranteed by the U.S. government, its agencies or instrumentalities, which include mortgage pass-through securities representing interests in pools of mortgage loans issued or guaranteed by Ginnie Mae, Fannie Mae, Sallie Mae or Freddie Mac.

Under normal circumstances, the Fund will maintain an average portfolio duration of plus or minus two of the duration of the Bloomberg US Securitized MBS, ABS, CMBS Index. The Bloomberg US Securitized MBS, ABS, CMBS Index measures the performance of all USD-denominated, investment grade, securitized issues within the Bloomberg US Aggregate Bond Index. Duration of the Bloomberg US Securitized MBS, ABS, CMBS Index was 5.88 as of its last reconstitution date of April 30, 2025. Duration is an approximate measure of a bond's price sensitivity to changes in interest rates. For instance, a duration of "six" means that a security's or portfolio's price would be expected to decrease by approximately 6% with a 1% increase in interest rates (assuming a parallel shift in yield curve).

The Fund may also invest in other fixed income instruments, which include bonds, debt or credit securities and other similar instruments issued by various U.S. and non-U.S. public or private sector entities at the discretion of the Adviser.

The Fund may invest up to 15% of its assets in below investment grade securities, including those referred to as "junk bonds" (or the unrated equivalent) at the time of purchase.

This is a non-fundamental investment policy that can be changed by the Board upon 60 days' prior notice to shareholders.

**DIAMOND HILL CORE BOND FUND** 

Under normal market conditions, the Fund intends to provide total return by investing at least 80% of its net assets at the time of purchase (plus any amounts borrowed for investment purposes) in a diversified portfolio of investment grade, fixed income securities, including bonds, debt securities and other similar U.S. dollar-denominated instruments issued by various U.S. public- or private-sector entities, by non-U.S. corporations or a U.S. affiliates of non-U.S. corporations, including those in emerging markets. This is a non-fundamental investment policy that can be changed by the Board upon 60 days' prior notice to shareholders.

Emerging market countries include those generally recognized to be an emerging market country by the international financial community; classified by the United Nations as a developing country; or classified as an emerging market country by Morningstar, Inc., or other index or data provider. The Fund may invest a significant portion or all of its assets in interests of pools of mortgage-related and mortgage-backed securities at the Adviser's discretion. Mortgage-backed securities include CMOs, IOs and POs. CMOs are a type of mortgage-backed security that contains a pool of mortgages bundled together and sold as an investment. Organized by maturity and level of risk, CMOs receive cash flows as borrowers repay the mortgages that act as collateral on these securities. CMOs distribute principal and interest payments to their investors based on predetermined rules and agreements. POs and IOs are mortgage-backed securities that receive only principal or interest payments, respectively, generated by the underlying collateral. Consequently, an investor in an IO is entitled to receive only regular cash flows that are derived from incoming interest payments received by the CMO, while the investor in a PO is entitled to receive only regular cash flows that are derived from incoming principal repayments on the loan pool underlying the CMO. Under normal circumstances, the Fund will maintain an average portfolio duration plus or minus 20% of the duration of the Bloomberg US Aggregate Bond Index. The Bloomberg US Aggregate Bond Index is a broad-based index that represents the investment grade, U.S. dollar-denominated fixed-rate taxable bond market. Duration is an approximate measure of a bond's price sensitivity to changes in interest rates. For instance, a duration of "three" means that a security's or portfolio's price would be expected to decrease by approximately 3% with a 1% increase in interest rates (assuming a parallel shift in yield curve).

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| **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** | **41** |

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**Fund Details**<br>

**DIAMOND HILL CORE PLUS BOND FUND** 

Under normal market conditions, the Fund intends to provide total return by investing at least 80% of its net assets at the time of purchase (plus any amounts borrowed for investment purposes) in a diversified portfolio of fixed income securities, including bonds, debt securities, bank loans and other similar U.S. dollar-denominated instruments issued by various U.S. public- or private-sector entities, or by non-U.S. corporations or a U.S. affiliates of non-U.S. corporations, including those in emerging markets. This is a non-fundamental investment policy that can be changed by the Board upon 60 days' prior notice to shareholders.

Emerging market countries include those generally recognized to be an emerging market country by the international financial community; classified by the United Nations as a developing country; or classified as an emerging market country by Morningstar, Inc., or other index or data provider.

The Fund may invest up to 35% of its net assets in below-investment grade securities, including those referred to as "junk bonds Fund (or the unrated equivalent) at the time of purchase.

The Fund may invest a significant portion or all of its assets in securitized bond investments also referred to as "structured product securities" or "structured products." Securitized bond investments include interests in pools of secured loans backed by commercial real estate, residential real estate, commercial or consumer loans, and securitizations such as collateralized debt obligations, CLOs, MBS (including CMBS, RMBS, IOs, POs, and CMOs), ABS and other similar securities and related instruments.

As noted above, MBS include CMOs, IOs and POs. CMOs are a type of mortgage-backed security that contains a pool of mortgages bundled together and sold as an investment. Organized by maturity and level of risk, CMOs receive cash flows as borrowers repay the mortgages that act as collateral on these securities. CMOs distribute principal and interest payments to their investors based on predetermined rules and agreements. IOs and POs are mortgage -backed securities that receive only principal or interest payments, respectively, generated by the underlying collateral. Consequently, an investor in an IO is entitled to receive only regular cash flows that are derived from incoming interest payments received by the CMO, while the investor in a PO is entitled to receive only regular cash flows that are derived from incoming principal repayments on the loan pool underlying the CMO.

Under normal circumstances, the Fund will maintain an average portfolio duration plus or minus 20% of the duration of the Bloomberg US Aggregate Bond Index. The Bloomberg US Aggregate Bond Index is a broad-based index that represents the investment grade, U.S. dollar-denominated fixed-rate taxable bond market. Duration is an approximate measure of a bond's price sensitivity to changes in interest rates. For instance, a duration of "three" means that a security's or portfolio's price would be expected to decrease by approximately 3% with a 1% increase in interest rates (assuming a parallel shift in the yield curve).

**Investment Risks** 

The main risks associated with investing in the Funds are described below and in the Fund Summaries at the front of this prospectus. All of the risks listed below are significant to the Funds, regardless of the order in which they appear.

**Main Risks** 

**ARMs Risk** (applicable to Securitized Total Return Fund and Core Plus Bond Fund) ARMs may be subject to a greater rate of principal prepayments in a declining interest rate environment. For example, if prevailing interest rates fall significantly, ARMs could be subject to higher prepayment rates than if prevailing interest rates remain constant because the availability of fixed rate mortgage loans at competitive interest rates may encourage mortgagors to refinance their ARMs to "lock-in" a lower fixed interest rate. Conversely, if prevailing interest rates rise significantly, ARMs may prepay at lower rates than if prevailing rates remain at or below those in effect at the time such ARMs were originated. As with fixed rate mortgages, there can be no certainty as to the rate of prepayments on the ARMs in either stable or changing interest rate environments. In addition, there can be no certainty as to whether increases in the principal balances of the ARMs due to the addition of deferred interest may result in a default rate higher than that on ARMs that do not provide for negative amortization. Other factors affecting prepayment of ARMs include changes in mortgagors' housing needs, job transfers, unemployment, mortgagors' net equity in the mortgage properties and servicing decisions.

**Asset-Backed, Mortgage-Related and Mortgage-Backed Securities Risk** (applicable to Short Duration Securitized Bond Fund, Securitized Total Return Fund, Core Bond Fund and Core Plus Bond Fund) The Funds may invest in ABS, MBS, and other mortgage-related and mortgage-backed securities, including so-called "sub-prime" mortgages that are subject to certain risks including prepayment and call risks. When mortgages and other obligations are prepaid and when securities are called, the Funds may have to reinvest in securities with a lower yield or fail to recover additional amounts (i.e., premiums) paid for securities with higher interest rates, resulting in an unexpected capital loss and/or a decrease in the amount of dividends and yield. In periods of rising interest rates, the Funds may be subject to extension risk, and may receive principal later than expected. As a result, in periods of rising interest rates, the Funds may exhibit additional volatility. During periods of difficult or frozen credit markets, significant changes in interest rates, or deteriorating economic conditions, such securities may decline in value, face valuation difficulties, become more volatile and/or become illiquid.

CMOs and stripped mortgage-backed securities, including those structured as IOs and POs, are more volatile and may be more sensitive to the rate of prepayments than other mortgage-related securities. CMOs are issued in multiple classes, and each class may have its own interest rate and/or final payment date. A class with an earlier final payment date may have certain preferences in receiving principal payments or earning interest. As a result, the value of some classes in which the Funds invest may be more volatile and may be subject to

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| **42** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

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**Fund Details**<br>

higher risk of non-payment. The risk of default, as described under "Credit Risk", for "sub-prime" mortgages is generally higher than other types of mortgage-backed securities. The structure of some of these securities may be complex and there may be less available information than other types of debt securities.

The values of IO and PO mortgage-backed securities are more volatile than other types of mortgage-related securities. They are very sensitive not only to changes in interest rates, but also to the rate of prepayments. A rapid or unexpected increase in prepayments can significantly depress the price of interest-only securities, while a rapid or unexpected decrease could have the same effect on principal-only securities. In addition, because there may be a drop in trading volume, an inability to find a ready buyer, or the imposition of legal restrictions on the resale of securities, these instruments may be illiquid. The fund will be exposed to additional risk to the extent that they use inverse floaters and inverse IOs, which are debt securities with interest rates that reset in the opposite direction from the market rate to which the security is indexed. These securities are more volatile and more sensitive to interest rate changes than other types of debt securities. In response to changes in market interest rates or other market conditions, the value of an inverse floater may increase or decrease at a multiple of the increase or decrease in the value of the underlying securities. If interest rates move in a manner not anticipated by the Adviser, the funds could lose all or substantially all of their investments in inverse Ios.

**CLOs Risk** (applicable to Securitized Total Return Fund and Core Plus Bond Fund) CLOs are subject to credit, interest rate, valuation, and prepayment and call, and extension risks. These securities also are subject to risk of default on the underlying asset, particularly during periods of economic downturn. The market value of CLOs may be affected by, among other things, changes in the market value of the underlying assets held by the CLO, changes in the distributions on the underlying assets, defaults and recoveries on the underlying assets, capital gains and losses on the underlying assets, prepayments on underlying assets and the availability, prices and interest rate of underlying assets.

**Consumer Loans Risk** (applicable to Short Duration Securitized Bond Fund, Securitized Total Return Fund, Core Bond Fund and Core Plus Bond Fund) Investments in consumer loans expose the Funds to additional risks beyond those normally associated with more traditional debt instruments. A Fund's ability to receive payments in connection with the loan depends primarily on the financial condition of the borrower and whether or not a loan is secured by collateral, although there is no assurance that the collateral securing a loan will be sufficient to satisfy the loan obligation. In addition, bank loans often have contractual restrictions on resale, which can delay the sale and adversely impact the sale price. Transactions involving bank loans may have significantly longer settlement periods than more traditional investments (settlement can take longer than seven days) and often involve borrowers whose financial condition is troubled or highly leveraged, which increases the risk that a Fund may not receive its proceeds in a timely manner or that a Fund may incur losses in order to pay redemption proceeds to its

shareholders. In addition, loans are not registered under the federal securities laws like stocks and bonds, so investors in loans have less protection against improper practices than investors in registered securities.

**Credit Risk** (applicable to Short Duration Securitized Bond Fund, Securitized Total Return Fund, Core Bond Fund and Core Plus Bond Fund) There is a risk that issuers and counterparties will not make payments on securities and repurchase agreements held by the Funds. Such default could result in losses to the Funds. In addition, the credit quality of securities held by the Funds may be lowered if an issuer's financial condition changes. Lower credit quality may lead to greater volatility in the price of a security and in shares of the Funds. Lower credit quality also may affect liquidity and make it difficult for the Funds to sell the security.

**Current Market Environment Risk** Various sectors of the financial markets may experience an extended period of adverse conditions. Market uncertainty can increase dramatically, and these conditions may result in disruptions of the equity markets, periods of reduced liquidity, greater general volatility, and a contraction of availability of credit and lack of price transparency. In particular, certain types of securitized bond investments may come under stress due to economic factors and trends, such as higher than expected interest rates, property vacancies and consumer stress.

**Extension Risk** (applicable to Securitized Total Return Fund and Core Plus Bond Fund) If interest rates rise, repayments of principal on certain debt securities, including, but not limited to, floating rate loans and mortgage-related securities, may occur at a slower rate than expected and the expected maturity of those securities could lengthen as a result. This may drive the prices of these securities down because their interest rates are lower than the current interest rate and they remain outstanding longer. In periods of rising rates, a Fund may exhibit additional volatility.

**Focused Portfolio Risk** (applicable to Select Fund) The Fund may have more volatility and is considered to have more risk than funds that invest in securities of a greater number of issuers because changes in the value of a single issuer's security may have a more significant effect, either positive or negative, on the Fund's net asset value ("NAV").

**Government Securities Risk** (applicable to Short Duration Securitized Bond Fund, Securitized Total Return Fund, Core Bond Fund and Core Plus Bond Fund) The Funds may invest in securities issued or guaranteed by the U.S. government or its agencies and instrumentalities. These securities may be backed by the credit of the government as a whole or only by the issuing agency. U.S. Treasury bonds, notes, and bills and some agency securities, such as those issued by the Federal Housing Administration and Ginnie Mae, are backed by the full faith and credit of the U.S. government as to payment of principal and interest and are the highest quality government securities. Other securities issued by U.S. government agencies or instrumentalities, such as securities issued by the Federal Home Loan Banks and Freddie Mac, are supported only by the credit of the agency that issued them, and not by the U.S. government. Securities issued by the Federal Farm

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**Fund Details**<br>

Credit System, the Federal Land Banks, and Fannie Mae are supported by the agency's right to borrow money from the U.S. Treasury under certain circumstances, but are not backed by the full faith and credit of the U.S. government. No assurance can be given that the U.S. government would provide financial support to its agencies and instrumentalities if not required to do so by law. However, in 2008, the U.S. Treasury Department and the Federal Housing Finance Authority (the "FHFA") placed Fannie Mae and Freddie Mac into conservatorship to stabilize the institutions and return them to normal business operations. The U.S. Treasury Department and the FHFA at the same time established a secured lending facility and a Preferred Stock Purchase Agreement with both Fannie Mae and Freddie Mac to ensure that each entity had the ability to fulfill its financial obligations. Neither the U.S. government nor its agencies guarantee the market value of their securities, and interest rate changes, prepayments and other factors may affect the value of government securities.

**High Yield Securities Risk** (applicable to Short Duration Securitized Bond Fund, Securitized Total Return Fund, Core Bond Fund and Core Plus Bond Fund) This is a main risk for the Short Duration Securitized Bond Fund, Securitized Total Return Fund and Core Plus Bond Fund, and an additional risk for the Core Bond Fund as it relates to a non-principal investment strategy. The Funds invest in below investment grade bonds, also known as high yield securities or junk bonds. High yield securities provide greater income and opportunity for gain, but entail greater risk of loss of principal. High yield securities are predominantly speculative with respect to the issuer's capacity to pay interest and repay principal in accordance with the terms of the obligation. These investments may be issued by companies which are highly leveraged, less creditworthy or financially distressed. Although these investments generally provide a higher yield than higher-rated debt securities, the high degree of risk involved in these investments can result in substantial or total losses. The market for high yield securities is generally less active than the market for higher quality securities and the market price of these securities can change suddenly and unexpectedly. Based on measures such as dealer inventories and average trade size, the high yield market has become less liquid at the same time as it has grown markedly and become more concentrated under the control of the largest investors. During future periods of market stress, liquidity conditions in the high yield market may be even worse than prior periods of market stress.

**Illiquid Securities Risk** The Funds may invest up to 15% of the value of net assets in securities that are illiquid. An illiquid investment is any investment that cannot be disposed of in current market conditions within seven calendar days in the normal course of business at approximately the amount at which it is valued by a Fund and without significantly changing the value of the investment. The price a Fund pays for illiquid securities or receives upon resale may be lower than the price paid or received for similar securities with a more liquid market. In addition, there may be no market or a limited market in which to sell illiquid securities.

**Inflation Risk** (applicable to Short Duration Securitized Bond Fund, Securitized Total Return Fund, Core Bond Fund and Core Plus Bond Fund) Because inflation reduces the purchasing power of income produced by existing fixed income securities, the prices at which fixed income securities trade will be reduced to compensate for the fact that the income they produce is worth less. This potential decrease in market value would be the measure of the inflation risk incurred by the Funds.

**Interest Rate Risk** (applicable to Short Duration Securitized Bond Fund, Securitized Total Return Fund, Core Bond Fund and Core Plus Bond Fund) The Funds invests in fixed income securities. These securities will increase or decrease in value based on changes in interest rates. If rates increase, the value of a Fund's fixed income securities generally declines. On the other hand, if rates fall, the value of the fixed income securities generally increases. Your investment will decline in value if the value of a Fund's investments decreases. The Securitized Total Return Fund may invest in variable and floating rate securities. Although these instruments are generally less sensitive to interest rate changes than fixed rate instruments, the value of variable and floating rate securities may decline if their interest rates do not rise as quickly, or as much, as general interest rates. Fixed income securities with greater interest rate sensitivity and longer maturities tend to produce higher yields but are subject to greater fluctuations in value. Usually, changes in the value of fixed income securities will not affect cash income generated but will affect the value of your investment.

**Liquidity Risk** (applicable to the Short Duration Securitized Bond Fund, Securitized Total Return Fund, Core Bond Fund and Core Plus Bond Fund) The Funds may not be able to purchase or sell a security in a timely manner or at desired prices or achieve its desired weighting in a security. Liquidity risk may result from the lack of an active market or a reduced number and capacity of traditional market participants to make a market in fixed income securities, and may be magnified during times of market stress. The Funds may not be able to meet the requests to redeem Fund shares without significant dilution of remaining investors' interest in the Fund.

**Loan Risk** (applicable to Core Plus Bond Fund) Investments in loans expose the Fund to additional risks beyond those normally associated with more traditional debt instruments. The Fund's ability to receive payments in connection with the loan depends primarily on the financial condition of the borrower and whether a loan is secured by collateral, although there is no assurance that the collateral securing a loan will be sufficient to satisfy the loan obligation.

The Fund may also invest in loan assignments and participations ("Loans") and commitments to purchase loan assignments ("Unfunded Commitments") including below investment grade Loans and Unfunded Commitments. Loans will typically consist of senior floating rate loans ("Senior Loans"), but may also include secured and unsecured loans, second lien loans or more junior loans ("Junior Loans") and bridge loans. Loans may be issued by obligors in the U.S. or in foreign or emerging markets. When the Fund acquires a loan participation, the Fund typically enters into a

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**Fund Details**<br>

contractual relationship with the lender or third party selling such participations, but not the borrower. As a result, the Fund assumes the credit risk not only of the borrower, but also of the seller of the loan participation and any other parties interpositioned between the fund and the borrower. The fund may not benefit directly from the collateral supporting the loan in which it has purchased the loan participations or assignments.

In recent years, there has been a broad trend of weaker or less restrictive covenant protections in the loan market, which may allow borrowers to exercise more flexibility with respect to certain activities than borrowers who are subject to stronger or more protective covenants. For example, borrowers might be able to incur more debt, including secured debt, return more capital to shareholders, remove or reduce assets that are designated as collateral securing loans, increase the claims against assets that are permitted against collateral securing loans or otherwise manage their business in ways that could impact creditors negatively. In addition, certain privately held borrowers might be permitted to file less frequent, less detailed or less timely financial reporting or other information, which could negatively impact the value of the loans issued by such borrowers. Each of these might negatively impact the loans held by the Fund. Loans are also vulnerable to market sentiment such that economic conditions or other events may reduce the demand for loans and cause their value to decline rapidly and unpredictably. No active trading market may exist for some of the loans and certain loans may be subject to restrictions on resale. The inability to dispose of loans in a timely fashion could result in losses to the Fund. In addition, bank loans often have contractual restrictions on resale, which can delay the sale and adversely impact the sale price. Transactions involving bank loans may have significantly longer settlement periods than more traditional investments (settlement can take longer than 7 days) and often involve borrowers whose financial condition is troubled or highly leveraged, which increases the risk that the Fund may not receive its proceeds in a timely manner or that the Fund may incur losses in order to pay redemption proceeds to its shareholders. In addition, loans are not registered under the federal securities laws like stocks and bonds, so investors in loans may have less protection against improper practices than investors in registered securities.

**Management Risk** The Adviser's judgments about the attractiveness, value, and potential appreciation of a particular asset class or individual security in which a Fund invests may prove to be incorrect and there is no guarantee that individual investments will perform as anticipated. The value of an individual company can be more volatile than the market as a whole, and the Adviser's intrinsic value-oriented approach may fail to produce the intended results. In addition, there is no guarantee that the use of long and short positions will succeed in limiting the Long-Short Fund's exposure to stock market movements, sector-swings or other risk factors. The strategy used by the Long-Short Fund involves complex securities transactions that involve risks different than direct equity investments.

**Market Risk** The value of a Fund's investments may decrease, sometimes rapidly or unexpectedly, due to factors affecting an issuer held by the Fund, particular industries or overall securities markets. When the value of a Fund's investments goes down, your investment in the Fund decreases in value. A variety of factors, including interest rate levels, recessions, inflation, U.S. economic growth, war or acts of terrorism, natural disasters, political events and tensions that disrupt international relations, supply chain disruptions, trade barriers, staff shortages, and widespread public health issues affect the securities markets. Pandemics, such as the coronavirus disease, may result in significant disruptions to economies and markets, adversely impacting individual companies, sectors, industries, currencies, interest and inflation rates, credit ratings and investor sentiment, adversely impacting the prices and liquidity of a Fund's investments.

**Non-U.S. and Emerging Markets Risk** (applicable to International Fund, Short Duration Securitized Bond Fund, Securitized Total Return Fund, Core Bond Fund and Core Plus Bond Fund) Investing in non-U.S. securities (including depository receipts) involves special risks in addition to those of U.S. investments. These risks include political and economic risks, civil conflicts and war, greater market volatility, expropriation and nationalization risks, currency fluctuations, higher transaction costs, delayed settlement, possible non-U.S. controls on investments, and less stringent investor protection and disclosure standards of non-U.S. markets. The securities markets of many non-U.S. countries are relatively small, with a limited number of companies representing a small number of industries. If non-U.S. securities are denominated and traded in a non-U.S. currency, the value of a Fund's non-U.S. holdings can be affected by currency exchange rates and exchange control regulations. In certain markets where securities and other instruments are not traded "delivery versus payment," a Fund may not receive timely payment for securities or other instruments it has delivered and may be subject to increased risk that the counterparty will fail to make payments when due or default completely. Events and evolving conditions in certain economies or markets may alter the risks associated with investments tied to countries or regions that historically were perceived as comparatively stable becoming riskier and more volatile. Trade tensions and sanctions on individuals and companies can contribute to market volatility, which may affect the Funds. This may adversely impact Fund performance. The risks associated with non-U.S. securities are magnified in countries in "emerging markets" compared to more mature markets. Emerging market countries also may have relatively unstable governments, weaker economies, and less-developed legal systems with fewer security holder rights. Investments in emerging markets countries may be affected by government policies that restrict foreign investment in certain issuers or industries. Emerging market economies may be based on only a few industries. As a result, security issuers, including governments, may be more susceptible to economic weakness and more likely to default. Emerging markets may face greater social, economic, regulatory and political uncertainties. Emerging market countries may have different regulatory, accounting, auditing and financial reporting and record keeping standards and may have material limitations on PCAOB inspections, investigations, and enforcement. Therefore, the

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**Fund Details**<br>

availability and reliability of information, particularly financial information material to an investment decision in emerging market companies, may be limited in scope and reliability as compared to information provided by U.S. companies. These risks make emerging market securities more volatile and less liquid than securities issued in more developed countries and you may sustain sudden and sometimes substantial fluctuations in the value of your investments. A Fund's investments in non-U.S. and emerging market securities may also be subject to non-U.S. withholding and/or other taxes, which would decrease the Fund's yield on those securities.

**Prepayment and Call Risk** (applicable to Short Duration Securitized Bond Fund, Securitized Total Return Fund, Core Bond Fund and Core Plus Bond Fund) The issuer of certain securities, such as mortgage-backed and asset-backed securities, may repay principal in advance, especially when interest rates fall. Changes in the rate at which prepayments occur can affect the return on investment of these securities. When debt obligations are prepaid or when securities are called, a Fund may have to reinvest in securities with a lower yield. A Fund also may fail to recover additional amounts (i.e., premiums) paid for securities with higher interest rates, resulting in an unexpected capital loss. Furthermore, some asset-backed securities may have additional risk because they may receive little or no collateral protection from the underlying assets, and are also subject to the risk of default described under "Credit Risk."

**Real Estate Risk** (applicable to Core Plus Bond Fund) Real estate related investments may decline in value as a result of factors affecting the real estate industry, such as the supply of real property in certain markets, changes in zoning laws, delays in completion of construction, changes in real estate values, changes in property taxes, levels of occupancy, and local and regional market conditions.

**Sector Emphasis Risk** (applicable to Select Fund and International Fund) Each Fund, from time to time, may invest 25% or more of its assets in one or more sectors, subjecting the Fund to sector emphasis risk. This is the risk that a Fund is subject to a greater risk of loss as a result of adverse economic, business or other developments affecting a specific sector in which the Fund has a focused position, than if its investments were diversified across a greater number of industry sectors. Some sectors possess particular risks that may not affect other sectors.

**Short Sale Risk** (applicable to Long-Short Fund and International Fund) This is a main risk for the Long-Short Fund, and an additional risk for the International Fund as it relates to a non-principal investment strategy. When the Adviser believes that a security is overvalued, it may sell the security short and borrow the same security from a broker or other institution to complete the sale. If the price of the security decreases in value, the Funds may make a profit and, conversely, if the security increases in value, the Funds will incur a loss because they will have to replace the borrowed security by purchasing it at a higher price. There can be no assurance that the Funds will be able to close out the short position at any particular time or at an acceptable price. Although a Fund's gain is limited to the amount at which it sold a security short, its potential

loss is not limited. A lender may request that the borrowed securities be returned on short notice; if that occurs at a time when other short sellers of the subject security are receiving similar requests, a "short squeeze" can occur. This means that the Funds might be compelled, at the most disadvantageous time, to replace borrowed securities previously sold short, with purchases on the open market at prices significantly greater than those at which the securities were sold short.

At any time that a Fund has an open short sale position, the Fund is required to segregate with its custodian (and to maintain such amount until the Fund replaces the borrowed security) an amount of cash or U.S. Government securities or other liquid securities equal to at least the difference between (i) the current market value of the securities sold short and (ii) any cash or U.S. Government securities required to be deposited with the broker in connection with the short sale (not including the proceeds from the short sale). As a result of these requirements, a Fund will not gain any leverage merely by selling short, except to the extent that it earns interest on the immobilized cash or government securities while also being subject to the possibility of gain or loss from the securities sold short. However, depending on arrangements made with the broker or custodian, the Fund may not receive any payments (including interest) on the deposits made with the broker or custodian. These deposits do not have the effect of limiting the amount of money a Fund may lose on a short sale — the Fund's possible losses may exceed the total amount of deposits. The Long-Short Fund will not make a short sale if, immediately before the transaction, the market value of all securities sold short exceeds 40% of the value of the Long- Short Fund's net assets. The International Fund will not make a short sale if, immediately before the transaction, the market value of all securities sold short exceeds 20% of the value of the International Fund's net assets.

The amount of any gain will be decreased and the amount of any loss increased by any premium or interest a Fund may be required to pay in connection with a short sale. It should be noted that possible losses from short sales differ from those that could arise from a cash investment in a security in that the former may be limitless while the latter can only equal the total amount of a Fund's investment in the security. For example, if a Fund purchases a $10 security, the most that can be lost is $10. However, if a Fund sells a $10 security short, it may have to purchase the security for return to the lender when the market value is $50, thereby incurring a loss of $40.

As the Adviser adjusts the composition of the portfolio to deal with the risk discussed above, a Fund may have a high portfolio turnover rate. Increased portfolio turnover may result in higher costs for brokerage commissions, dealer mark-ups and other transaction costs and may also result in taxable capital gains. Higher costs associated with increased portfolio turnover may offset gains in a Fund's performance. In addition, because of the asset segregation requirement, a Fund may be required to liquidate other portfolio securities that it otherwise might not have sold in order to meet its obligations, such as paying for redemptions of Fund shares.

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**Fund Details**<br>

**Small and Mid Cap Company Risk** This is a main risk for all Funds except the Large Cap Fund, Securitized Total Return Fund, Short Duration Securitized Bond Fund, Core Bond Fund and Core Plus Bond Fund. Investments in small and mid cap companies may be riskier than investments in larger, more established companies. The securities of these companies may trade less frequently and in smaller volumes than securities of larger companies. In addition, small and mid cap companies may be more vulnerable to economic, market and industry changes. As a result, share price changes may be more sudden or erratic than the prices of other equity securities, especially over the short-term. Because smaller companies may have limited product lines, markets or financial resources or may depend on a few key employees, they may be more susceptible to particular economic events or competitive factors than large capitalization companies.

**Sovereign Debt Risk** (applicable to Securitized Total Return Fund) Sovereign debt securities are issued or guaranteed by foreign governmental entities. These investments are subject to the risk that a governmental entity may delay or refuse to pay interest or repay principal on its sovereign debt, due, for example, to cash flow problems, insufficient foreign currency reserves, political considerations, the relative size of the governmental entity's debt position in relation to the economy or the failure to put in place economic reforms required by the International Monetary Fund or other multilateral agencies. If a governmental entity defaults, it may ask for more time in which to pay or for further loans. There is no legal process for collecting sovereign debts that a government does not pay nor are there bankruptcy proceedings through which all or part of the sovereign debt that a governmental entity has not repaid may be collected. Securities issued by certain governmental entities may be lower rated securities. These securities are considered predominately speculative with respect to the issuer's continuing ability to make principal and interest payments. An economic downturn or period of rising interest rates could adversely affect the market for these securities and lead to liquidity risk.

**Additional Risks** 

**General Risks** All mutual funds carry a certain amount of risk. You may lose money on your investment in a Fund. A Fund is subject to management risk because it is an actively managed fund. A Fund may not achieve its objective if the Adviser's expectations regarding particular securities or markets are not met.

**Convertible Securities Risk** The market value of convertible securities and other debt securities tends to fall when prevailing interest rates rise. The value of convertible securities also tends to change whenever the market value of the underlying common or preferred stock fluctuates.

**Cybersecurity Risk** The computer systems, networks and devices used by each Fund and its service providers to carry out routine business operations employ a variety of protections designed to prevent damage or interruption from computer viruses, network failures, computer and telecommunication failures, infiltration by unauthorized persons and security breaches. Despite the various protections utilized by each

Fund and its service providers, systems, networks, or devices potentially can be breached due to both intentional and unintentional events. A Fund and its shareholders could be negatively impacted as a result of a cybersecurity breach.

Similar adverse consequences could result from cybersecurity breaches affecting issuers of securities in which a Fund invests; counterparties with which a Fund engages in transactions; governmental and other regulatory authorities; exchange and other financial market operators, banks, brokers, dealers, insurance companies, and other financial institutions (including financial intermediaries and service providers for a Fund's shareholders); and other parties.

Cybersecurity breaches can include unauthorized access to systems, networks, or devices; infection from computer viruses or other malicious software code; ransomware; and attacks that shut down, disable, slow, or otherwise disrupt operations, business processes, or website access or functionality. Cybersecurity breaches may cause disruptions and impact a Fund's business operations, potentially resulting in financial losses; may negatively impact the financial condition of an issuer, counterparty or other market participant; interference with a Fund's ability to calculate its NAV; impediments to trading; the inability of a Fund, the Adviser, and other service providers to transact business; violations of applicable privacy and other laws; regulatory fines, penalties, reputational damage, reimbursement or other compensation costs, or additional compliance costs; as well as the inadvertent release of confidential information.

In addition, substantial costs may be incurred by these entities in order to prevent any cybersecurity breaches in the future. Neither a Fund or the Adviser control the cybersecurity systems of issuers or third-party service providers.

**Inflation-Indexed Bonds Risk** (applicable to Short Duration Securitized Bond Fund, Securitized Total Return Fund, Core Bond Fund and Core Plus Bond Fund) Inflation-indexed bonds are fixed income securities whose principal value is periodically adjusted according to the rate of inflation. If the index measuring inflation falls, the principal value of inflation-indexed bonds will be adjusted downward, and consequently the interest payable on these securities (calculated with respect to a smaller principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury inflation-indexed bonds. For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal. The value of inflation-indexed bonds is expected to change in response to changes in real interest rates. Real interest rates are tied to the relationship between nominal interest rates and the rate of inflation. If nominal interest rates increase at a faster rate than inflation, real interest rates may rise, leading to a decrease in value of inflation-indexed bonds. Short-term increases in inflation may lead to a decline in value. Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income, even though investors do not receive their principal until maturity.

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**Fund Details**<br>

Interfund Lending Risk A delay in repayment to the Funds from a borrowing fund could result in lost opportunity costs. Interfund loans are subject to the risk that the borrowing fund could be unable to repay the loan when due. In the case of a default by a borrowing fund and to the extent that the loan is collateralized, a Fund could take possession of collateral that the Fund is not permitted to hold and, therefore, would be required to dispose of such collateral as soon as possible, which could result in a loss to the Fund.

**Investment Company and Exchange-Traded Fund ("ETF") Risk** A Fund may invest in shares of other investment companies or ETFs. Shareholders will indirectly bear fees and expenses charged by the underlying investment companies in which a Fund invests in addition to the Fund's direct fees and expenses. A Fund also will incur brokerage costs when it purchases ETFs and closed-end funds. In addition, a Fund will be subject to the risks associated with the investment company or ETF's investments. The price movement of an ETF may not track the underlying index and may result in a loss. The closed-end investment company or ETF may trade at a price above (premium) or below (discount) their NAV, especially during periods of significant volatility or stress, causing investors to pay significantly more or less than the value of the ETF's underlying portfolio. Furthermore, investments in other funds could affect the timing, amount and character of distributions to shareholders and therefore may increase the amount of taxes payable by investors in a Fund. To the extent a Fund invests in an underlying Diamond Hill Fund, because the Adviser provides services to and receives fees from the underlying fund, a fund's investment in the underlying fund benefits the Adviser. In addition, a Fund may hold a significant percentage of the shares of the underlying fund. As a result, a Fund's investment in an underlying fund may create a conflict of interest.

**Large Shareholder Redemption Risk** Certain individuals accounts, or institutions, including the Adviser and its affiliates, may from time to time own or control a substantial amount of a Fund's shares. There is no requirement that these entities maintain their investment in a Fund. There is a risk that such large shareholders may redeem all or a substantial portion of their investments in a Fund at any time, which could have a significant negative impact on a Fund's NAV, liquidity, and brokerage costs. Large redemptions could also result in tax consequences to shareholders and impact a Fund's ability to implement its investment strategy.

**Maturity Risk** (applicable to Short Duration Securitized Bond Fund, Securitized Total Return Fund, Core Bond Fund and Core Plus Bond Fund) In certain situations a Fund may purchase a bond of a given maturity as an alternative to another bond of a different maturity. Ordinarily, under these circumstances, a Fund will make an adjustment to account for the interest rate risk differential in the two bonds. This adjustment, however, makes an assumption about how the interest rates at different maturities will move. To the extent that the yield movements deviate from this assumption, there is a yield-curve or maturity risk. Another situation where yield-curve risk should be considered is in the analysis of bond

swap transactions where the potential incremental returns are dependent entirely on the parallel shift assumption for the yield curve.

**Securities Lending Risk** To generate additional income, a Fund may lend its portfolio securities to financial institutions under guidelines adopted by the Board, including a requirement that a Fund receives cash or securities issued by the U.S. government or its agencies or instrumentalities as collateral from the borrower equal to no less than 100% of the market value of the securities loaned. A Fund may invest the cash collateral in high quality short-term debt obligations, government obligations, bank guarantees or money market mutual funds. Securities lending involves two primary risks: "investment risk" and "borrower default risk." Investment risk is the risk that a Fund will lose money from the securities received as collateral or the investment of the cash collateral. Borrower default risk is the risk that a Fund will lose money due to the failure of a borrower to return a borrowed security in a timely manner.

**Temporary Strategies** 

From time to time, each Fund may take temporary defensive positions that are inconsistent with the Fund's principal investment strategies, in attempting to respond to adverse market, economic, political, or other conditions. During these times, a Fund may invest up to 100% of its assets in cash and cash equivalents. For example, a Fund may hold all or a portion of its assets in money market instruments (high quality income securities with maturities of less than one year), securities of money market funds or U.S. Government repurchase agreements. A Fund may also invest in such investments at any time to maintain liquidity or pending selection of investments in accordance with its policies. These investments may prevent a Fund from achieving its investment objective. If a Fund acquires securities of money market funds, the shareholders of the Fund will be subject to duplicative management fees and other expenses.

**Portfolio Holdings Disclosure** 

No later than 60 days after the end of each month, each Fund will post on the Funds' web site, www.diamond-hill.com, a complete schedule of its portfolio holdings as of the last day of that month. In addition to this monthly disclosure, each Fund may also make publicly available its portfolio holdings at other dates as may be determined from time to time.

Shareholders may request portfolio holdings schedules at no charge by calling 888-226-5595. A description of the Funds' policies and procedures with respect to the disclosure of the Funds' portfolio holdings is available in the Statement of Additional Information (the "SAI").

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| **48** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

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**Fund Details**<br>

**Management of the Funds** 

Diamond Hill Capital Management, Inc., 325 John H. McConnell Boulevard, Suite 200, Columbus, Ohio 43215, manages the day-to-day investment decisions of the Funds and continuously reviews, supervises and administers the Funds' investment programs. The Adviser has been an investment adviser to individuals, pension and profit sharing plans, trusts, corporations and other institutions since June 2, 1988. As of December 31, 2025, the Adviser managed approximately $29.4 billion in assets.

Pursuant to the amended and restated investment management agreement between the Adviser and the Trust (the "Investment Management Agreement"), the Adviser, subject to the supervision of the Board and in conformity with the stated objective and policies of each Fund, manages both the investment operations of the Funds and the composition of the Funds' portfolios, including the purchase, retention and disposition of securities. In connection therewith, the Adviser is obligated to keep certain books and records of the Funds. The Adviser also administers the corporate affairs of the Funds, and in connection therewith, furnishes the Funds with office facilities, together with those ordinary clerical and bookkeeping services which are not being furnished by the Funds' custodian, and the Funds' sub-administrator, sub-fund accountant and sub-transfer agent. The management services of the Adviser are not exclusive under the terms of the Investment Management Agreement and the Adviser is free to, and does, render management services to others.

Disclosure regarding the basis for the Board's approval of the Investment Management Agreement between the Adviser and the Trust, on behalf of the Funds, is available in the Funds' financial statements filed on Form N-CSR for the fiscal year ended December 31, 2025.

The Funds are authorized to pay the Adviser an annual fee as set forth below:

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| **Fund** | **Percentage of <br> Average Daily <br> Net Assets** |
| **Small Cap Fund** | 0.80% |
| **Small-Mid Cap Fund** | 0.75% |
| **Mid Cap Fund** | 0.60% |
| **Large Cap Fund** | 0.50% |
| **Select Fund** | 0.70% |
| **Long-Short Fund** | 0.90% |
| **International Fund** | 0.65% |
| **Short Duration Securitized Bond Fund** | 0.35% |
| **Securitized Total Return Fund** | 0.70% |
| **Core Bond Fund** | 0.30% |
| **Core Plus Bond Fund** | 0.40% |

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**Portfolio Managers** 

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| | |
|:---|:---|
| **Fund** | **Portfolio Manager** |
| **Small Cap** | **Aaron Monroe**  |
| **Small-Mid Cap** | **Christopher Welch** <br>**Anthony Philipp** |
| **Mid Cap** | **Christopher Welch** <br>**Anthony Philipp** |
| **Large Cap** | **Austin Hawley**  |
| **Select** | **Austin Hawley** <br>**Richard Snowdon**  |
| **Long-Short** | **Christopher Bingaman** <br>**Nathan Palmer** |
| **International** | **Krishna Mohanraj** |
| **Short Duration Securitized Bond** | **Henry Song** <br>**Mark Jackson** |
| **Securitized Total Return** | **Henry Song** |
| **Core Bond** | **Henry Song** <br>**Mark Jackson** |
| **Core Plus Bond** | **Henry Song** <br>**Mark Jackson** <br>**Arthur Cheng** |

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The portfolio managers hold ultimate responsibility and accountability for the investment results of the portfolios and have full authority to make all investment decisions.

**Mr. Bingaman** has a Bachelor of Arts degree in Finance (cum laude) from Hillsdale College, a Masters degree in Business Administration from the University of Notre Dame and holds the Chartered Financial Analyst ("CFA") designation. He has been an investment professional with the Adviser since March 2001. He currently serves as a Portfolio Manager for the Adviser. He was the President of the Adviser from January 2014 through August 2019 and Chief Executive Officer of the Adviser from January 2016 through August 2019. From 1998 to March 2001, Mr. Bingaman was a Senior Equity Analyst for Villanova Capital/Nationwide Insurance. In 1997, Mr. Bingaman was an Equity Analyst for Dillon Capital Management, an investment advisory firm.

**Mr. Cheng** has a Bachelor of Science in Mathematics and Economics degree from the University of California: Los Angeles and holds the CFA designation. He has been an investment professional with the Adviser since July 2024. Mr. Cheng currently serves as a Portfolio Manager for the Adviser. From 2017 to 2024, he was with Post Advisory Group where he was a Managing Director, Research Analyst, investing in high yield bonds and leveraged loans. From 2011 to 2017, he was with J.P. Morgan Investment Management, Inc. where he was Vice President, Research Analyst.

**Mr. Hawley** has a Bachelor of Arts degree in History (cum laude) from Dartmouth College, a Masters degree in Business Administration (with distinction) from Tuck School of Business at Dartmouth College and holds the CFA designation. He has been an investment professional with the Adviser since August 2008. Mr. Hawley currently serves as a Portfolio Manager for the Adviser. From July 1999 to July 2002, Mr. Hawley was

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| **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** | **49** |

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**Fund Details**<br>

an Investment Associate at Putnam Investments. He was an Equity Analyst at Putnam Investments from July 2004 to July 2008.

**Mr. Jackson** has a Bachelor of Science in Finance degree from Miami University and holds the CFA designation. He has been an investment professional with the Adviser since June 2016. Mr. Jackson currently serves as a Portfolio Manager for the Adviser. From 1996 to 2016, he was with J.P. Morgan Investment Management, Inc. where he was Managing Director and portfolio manager for the U.S. Value Driven team and was responsible for managing institutional taxable bond portfolios. Prior to 1996, Mr. Jackson was a portfolio manager for Alexander Hamilton Life Insurance Company and previous to that a portfolio manager with the Public Employees Retirement System of Ohio.

**Mr. Mohanraj** has a Bachelor of Technology from the Indian Institute of Technology, Madras (Chennai, India), a Master of Science from The University of Texas at Austin, a Master of Business Administration from the London Business School (with distinction) and holds the CFA designation. Mr. Mohanraj has been an investment professional with the Adviser since 2012. Mr. Mohanraj currently serves as a Portfolio Manager for the Adviser. From 2011 to 2012, Mr. Mohanraj was a Senior Research Associate at Sanford C. Bernstein. From 2008 to 2009, he was a Quantitative Analyst at Exelon Corporation. From 2005 to 2008, Mr. Mohanraj was a Product Manager with MCA Solutions. From 1999 to 2004, Mr. Mohanraj was a Solution Architect with i2 Technologies.

**Mr. Monroe** has a Bachelor of Science degree in Finance, Accounting and Economics from The Ohio State University (cum laude) and holds the CFA designation. He has been an investment professional with the Adviser since June 2007. Mr. Monroe currently serves as a Portfolio Manager for the Adviser. From 2006 to 2007, Mr. Monroe was a Consulting Group Analyst with Smith Barney. In 2005, Mr. Monroe was an Associate with Duff & Phelps.

**Mr. Palmer** has a Bachelor of Science degree in Accounting and Finance from The Ohio State University (summa cum laude, with honors) and a Masters of Accountancy from The Ohio State University (with distinction). He is a Certified Public Accountant and holds the CFA designation. He has been an investment professional with the Adviser since October 2009. Mr. Palmer currently serves as a Portfolio Manager for the Adviser. From 2008 to 2009, Mr. Palmer was a Tax Consultant with Deloitte & Touche, LLP.

**Mr. Philipp** has a Bachelor of Science in engineering (Eta Kappa Nu Honors) from the University of Illinois and a Masters of Business Administration (Dean's Honors and Distinctions) from Columbia University. He has been an investment professional with the Adviser since March 2024. Mr. Philipp currently serves as a Portfolio Manager for the Adviser. From 2019 to 2024, he was an investment analyst for Hotchkis & Wiley Capital Management. From 2016 to 2019, he was an investment analyst for Ziff Capital Partners. In 2015, he was an MBA analyst for Blue Ridge Capital, and from 2011 to 2014, he was an associate with Flexpoint Ford. From 2008 to 2011, Mr. Philipp was an analyst for Centerview Partners.

**Mr. Snowdon** has a Bachelor of Arts degree in Economics and Organizational Behavior & Management from Brown University, a Masters degree in Business Administration (with distinction) from Northwestern University and holds the CFA designation. He has been an investment professional with the Adviser since August 2007. Mr. Snowdon currently serves as a Portfolio Manager for the Adviser. From 2003 to 2006, Mr. Snowdon served as a Board member and Consultant with Adams Rite Manufacturing. From 1997 to 2002, Mr. Snowdon was an Energy Trader/Vice President, Energy Trading for American Electric Power. From 1996 to 1997, Mr. Snowdon was a Junior Trader with Enron Corporation. From 1989 to 1994, Mr. Snowdon managed a chain of 40 independent World Oil gas stations.

**Mr. Song** has a Bachelor of Business Administration degree from the Ross School of Business at the University of Michigan and holds the CFA designation. He has been an investment professional with the Adviser since June 2016. Mr. Song currently serves as a Portfolio Manager for the Adviser. From 2005 to 2016 he was with J.P. Morgan Investment Management, Inc. where he was a portfolio manager for the U.S. Value Driven team and was responsible for managing institutional taxable bond portfolios and previously supported the Columbus taxable client portfolio managers in reporting as well as client communications.

**Mr. Welch** has a Bachelor of Arts degree in Economics (summa cum laude) from Yale University and holds the CFA designation. He has been an investment professional with the Adviser since November 2005. Mr. Welch currently serves as Portfolio Manager for the Adviser. From 2004 to November 2005, Mr. Welch was a Portfolio Manager for Fiduciary Trust Company International, an investment management firm. From 1995 to 2002, Mr. Welch served as Portfolio Manager and Senior Equity Analyst for Nationwide Insurance and its mutual fund unit, Gartmore Global Investments.

The SAI provides additional information about each portfolio manager's compensation structure, other managed accounts and ownership of securities in their managed Fund(s).

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| **50** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

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**Your Account**<br>

**Pricing Your Shares** 

When you buy and sell shares of a Fund, the price of the shares is based on the Fund's NAV per share next determined after the order is received. The NAV is calculated at the close of trading (normally 4:00 p.m., Eastern time) on each day the New York Stock Exchange ("NYSE") is open for business ("open business day"). Should the NYSE experience an unexpected market closure or restriction on trading during or on what is expected to be an open business day, the Fund will make a determination whether to calculate the NAV at the times as described above (and value the securities as described below in this prospectus and in the SAI) or to suspend the determination of the NAV based on available information at the time of or during the unexpected closure or restriction on trading. Purchase requests received by a Fund or an authorized agent of a Fund after the NYSE closes, or on a day on which the NYSE is not open for trading, will be effective on the next open business day thereafter on which the NYSE is open for trading, and the offering price will be based on the Fund's NAV at the close of trading on that day. A separate NAV is calculated for each share class of a Fund. The NAV for a class is calculated by dividing the value of a Fund's total assets (including interest and dividends accrued but not yet received), allocable to that class, minus liabilities (including accrued expenses) allocable to that class, by the total number of that class' shares outstanding. The market value of a Fund's investments is determined primarily on the basis of readily available market quotations.

If market quotations are not readily available or if available market quotations are determined not to be reliable or if a security's value has been materially affected by events occurring after the close of trading on the exchange or market on which the security is principally traded (for example, a natural disaster affecting an entire country or region, or an event that affects an individual company), but before a Fund's NAV is calculated, that security may be valued at its fair value in accordance with policies and procedures adopted by the Board. Without a fair value price, short-term traders could take advantage of the arbitrage opportunity and dilute the NAV of long term investors. To the extent that a Fund invests in securities that are primarily listed on non-U.S. exchanges or other markets that trade on weekends or other days when a Fund is closed, the value of a Fund's shares may change on days when you will not be able to purchase or redeem your shares. In addition, securities trading on non-U.S. markets present time zone arbitrage opportunities when events affecting portfolio security values occur after the close of the non-U.S. market, but prior to the close of the U.S. market. Fair valuation of a Fund's portfolio securities can serve to reduce arbitrage opportunities available to short-term traders, but there is no assurance that fair value pricing policies will prevent dilution of a Fund's NAV by short-term traders. Fair valuation involves subjective judgments and it is possible that the fair value determined for a security may differ materially from the value that could be realized upon the sale of the security.

If you purchase shares of any of the Funds through a Processing Organization, as discussed below, it is the responsibility of the authorized agent to transmit properly completed purchase orders so that they will be received timely by the Trust. Any change in price due to the failure of the Trust to receive an order timely must be settled between the investor and the authorized agent placing the order.

**How to Purchase Shares** 

Shares of the Funds have not been registered for sale outside of the U.S. and the Funds are generally only available to residents in the U.S. with a valid tax identification number. This prospectus is not intended for distribution to prospective investors outside of the U.S. The Funds generally do not market or sell shares to investors domiciled outside of the U.S., even if the investors are citizens or lawful permanent residents of the U.S. Any non-U.S. shareholders generally would be subject to U.S. tax withholding on distributions by the Funds. This prospectus does not address in detail the tax consequences affecting any shareholder who is a nonresident alien individual or non-U.S. trust or estate, non-U.S. corporation or non-U.S. partnership.

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| **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** | **51** |

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**Your Account**<br>

The following table summarizes different features and eligibility requirements of each Class of the Funds.

**Choosing a Share Class** 

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| | | | |
|:---|:---|:---|:---|
| **Eligibility** | **Investor** | **Class I** | **Class Y** |
| May be purchased by the general public (except for Short Duration Securitized Bond Fund) | ✓ |  |  |
| May be purchased by institutional investors, such as corporations, pension, profit sharing, or defined contribution plans, non-profit organizations, charitable trusts, foundations and endowments | ✓ | ✓ | ✓ |
| May be purchased by individual investors, through financial intermediaries that have entered into agreements with Diamond Hill Funds or its agents | ✓ | ✓ |  |
| May be purchased by financial intermediaries on behalf of individual investors provided such intermediary: <br>&nbsp;&nbsp;&nbsp;&nbsp;1. is acting in an investment advisory capacity, <br>&nbsp;&nbsp;&nbsp;&nbsp;2. enters into an agreement with the applicable Fund or the Adviser to purchase and redeem such shares through an omnibus account, and <br>&nbsp;&nbsp;&nbsp;&nbsp;3. agrees to not charge the applicable Fund, its investment adviser or any other affiliates, any sub-transfer agent fees, service fees, networking fees, distribution fees, marketing fees, or any other fees for the entire life of the investment in Class Y shares. |  |  | ✓ |
| May be purchased by Trustees, Directors, and employees of Diamond Hill Funds or Diamond Hill Investment Group, Inc. and their immediate family members | ✓ | ✓ |  |
| **Initial Investment Minimum** | **$2500** | **$2500** | **$500000** |
| May be waived for corporate sponsored, participant directed group retirement accounts | ✓ | ✓ | ✓ |
| May be waived for investors who purchased shares through financial intermediaries that have entered into agreements with Diamond Hill Funds or its agents  | ✓ | ✓ |  |
| May be waived for individual investors who purchased Class Y shares through financial intermediaries that have entered into an agreement with the applicable Fund or the Adviser as described above. |  |  | ✓ |
| May be waived in other circumstances as deemed appropriate | ✓ | ✓ | ✓ |
| Additional Compensation to Financial Intermediaries Permitted | ✓ | ✓ |  |

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**Financial Intermediaries** 

Financial intermediaries or such other organizations may impose eligibility requirements for each of their clients or customers investing in the Funds, including investment minimum requirements, which may be the same or differ from the requirements for investors purchasing directly from the Funds, and certain financial intermediaries may charge their customers transaction or other fees. Certain share classes may not be available through all financial intermediaries. The Funds or Adviser may pay service and/or distribution fees to these entities for services they provide to Investor and Class I shareholders.

**Investor shares** of all Funds, except the Short Duration Securitized Bond Fund, are available to the general public. Investor shares may also be purchased through financial intermediaries that have entered into agreements with Diamond Hill Funds or its agents. Financial intermediaries may include financial advisors, investment advisors, brokers, financial planners, banks, insurance companies, retirement or 401(k) plan administrations or any other organization authorized to act in a fiduciary, advisory, custodial or agency capacity for its clients or customers.

**Class I** shares of all Funds and Investor shares of the Short Duration Securitized Bond Fund are available for purchase by institutional investors such as corporations, pension and profit sharing or defined contribution plans, non-profit organizations, charitable trusts, foundations and endowments. Class I shares of all Funds and Investor shares of the Short Duration Securitized Bond Fund may also be purchased through financial intermediaries that have entered into agreements with Diamond Hill Funds or its agents. Financial intermediaries may include financial advisors, investment advisors, brokers, financial planners, banks, insurance companies, retirement or 401(k) plan administrations or any other organization authorized to act in a fiduciary, advisory, custodial or agency capacity for its clients or customers.

Class I shares of all Funds may also be purchased by officers, trustees, directors and employees, and their immediate family members (i.e., spouses, children, grandchildren, parents, grandparents and any dependent of the person, as defined in Section 152 of the Internal Revenue Code of 1986, as amended (the "Code")), of Diamond Hill Funds or Diamond Hill Investment Group, Inc. and its subsidiaries and affiliates.

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| **52** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

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**Your Account**<br>

**Class Y shares** are available for purchase by institutional investors such as corporations, pension and profit sharing or defined contribution plans, non-profit organizations, charitable trusts, foundations and endowments.

Class Y shares may also be purchased by individual investors, if purchased through financial intermediaries authorized to act in an investment advisory capacity that have entered into a written agreement with the Adviser or the applicable Fund to offer such shares through an omnibus account held at the Fund.

All Class Y purchases of a Fund, whether purchased by an institutional investor or by a financial intermediary on behalf of an individual investor, will not require the Fund, its investment adviser or any other affiliates, to make any sub-transfer agent, service, networking, distribution-related, marketing, maintenance, revenue sharing, set-up or any other fees or payments to any third party now or for the entire life of the investment in Class Y shares. Class Y shares have no ongoing shareholder service fees.

**Minimum Initial Investment** amount for Investor and Class I shares is $2,500. The minimum initial investment amount for Class Y is $500,000. If a financial intermediary maintains an omnibus account for institutional investors in Class Y shares, each subaccount underlying the Omnibus Account must meet the minimum initial investment in order for the Omnibus Account to be eligible to own Class Y shares.

&nbsp;&nbsp;&nbsp;&nbsp;1. The Funds may waive the investment minimums for corporate participant directed retirement accounts (such as 401(k) accounts).

&nbsp;&nbsp;&nbsp;&nbsp;2. The Funds may waive the initial investment minimums for Investor and Class I shares purchased through financial intermediaries that have entered into a written agreement with the Funds or their agents.

&nbsp;&nbsp;&nbsp;&nbsp;3. The Funds may waive the initial investment minimums for Class Y shares purchased through financial intermediaries authorized to act in an investment advisory capacity that have entered into a written agreement with the Adviser to offer such shares through an omnibus account held at the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;4. The Funds may waive the investment minimums in other circumstances as it may judge appropriate.

All investments and exchanges are subject to approval by a Fund and the Fund reserves the right to reject any purchase or exchange of shares at any time. The Funds request advance notification of investments in excess of 5% of the current net assets of the Fund.

All classes of the Funds may not be available in every state.

**Important Information About Procedures for Opening an Account** 

Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, residential address, date of

birth, government identification number and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents. If we do not receive these required pieces of information, there may be a delay in processing your investment request, which could subject your investment to market risk. If we are unable to immediately verify your identity, the Fund may restrict further investment until your identity is verified. If we are unable to verify your identity, the Fund reserves the right to close your account without notice and return your investment to you at the NAV determined on the day in which your account is closed. If we close your account because we are unable to verify your identity, your investment will be subject to market fluctuation, which could result in a loss of a portion of your principal investment.

**Fund Supermarkets and Clearing Organizations** 

You may purchase shares of a Fund through a fund supermarket or clearing organization, which is a broker-dealer, bank or other financial intermediary that purchases shares for its customers (Processing Organization). The Funds have authorized certain Processing Organizations to receive purchase and sale orders on their behalf. Before investing in the Funds through a Processing Organization, you should read carefully any materials provided by the Processing Organization together with this prospectus.

When shares are purchased this way, there may be various differences. The Processing Organization may:

● Charge a fee for its services.

● Act as the shareholder of record of the shares.

● Set different initial minimum and additional investment requirements.

● Impose other charges and restrictions.

● Designate intermediaries to accept purchase and sale orders on the Fund's behalf.

● Impose an earlier cut-off time for purchase and redemption requests.

The Trust considers a purchase or sale order as received when an authorized Processing Organization, or its authorized designee, receives the order in proper form. These orders will be priced based on the respective Fund's NAV next computed after such order is received in proper form. It is the responsibility of the authorized agent to transmit properly completed purchase orders so that they will be received timely by the Trust.

Shares held through a Processing Organization may be transferred into your name following procedures established by your Processing Organization and the Trust. Certain Processing Organizations may receive compensation from the Trust, the Adviser or their affiliates.

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| **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** | **53** |

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**Your Account**<br>

**Fund Direct Purchase** 

You may also make a direct initial investment by following these steps:

● Complete and sign an investment application form which you can request by calling the Funds at 888-226-5595 between the hours of 8:00 a.m. and 6:00 p.m. Eastern time on days the Funds are open for business. On days when the NYSE closes early, the call center hours will be reduced accordingly.

● Make your check (drawn on a U.S. bank and payable in U.S. dollars) payable to the Fund in which you are investing. We do not accept post-dated checks, third party checks, travelers' checks, cash, money orders, cashier checks greater than $10,000, credit card convenience checks or "starter" checks.

● Mail the application and check to: (Fund Name) P.O. Box 46707, Cincinnati, OH 45246

To purchase shares of a Fund by wire, call the Funds at 888-226-5595 between the hours of 8:00 a.m. and 6:00 p.m. Eastern time on days the Funds are open for business for instructions. On days when the NYSE closes early, the call center hours will be reduced accordingly. A Fund will accept wire orders only on a day on which the Fund, the Custodian and the Transfer Agent are open for business. A wire purchase will be considered made when the wired money is received and the purchase is accepted by the Fund. Any delays that may occur in wiring money, including delays that may occur in processing by the banks, are not the responsibility of the Fund or the Transfer Agent. There is presently no fee for the receipt of wired funds, but the Funds may charge a fee in the future.

**AIP Program** 

When making your initial investment in a Fund, you may choose to participate in the Fund's automatic investment program ("AIP") by completing the AIP section of the application form discussed above. Purchase amounts ($100 minimum) are automatically debited each month from your bank account through ACH (automated clearing house) and are subject to the payment of any applicable sales charge.

**Sales Charges** 

Shares of the Funds are purchased at their NAV.

The Funds' principal underwriter compensates Financial intermediaries (such as broker-dealers), including processing organizations, who sell shares of the Funds. Compensation comes from Rule 12b-1 fees and payments by the principal underwriter or affiliates of the principal underwriter and from its or their own resources.

The Funds' shares may be available at brokerage firms that have agreements with the Funds' distributor. Shareholders may be required to pay a commission and/or other form of compensation to the broker. Shares of the Funds are available in share classes that have different fees and expenses.

**Distribution Plan** 

Each Fund has adopted a plan under Rule 12b-1 that allows its Investor shares to pay distribution fees. Up to 0.25% of the Investor shares' 12b-1 fee can be used as a shareholder servicing fee. Investor shares pay annual 12b-1 expenses of 0.25%. Because these fees are paid out of a Fund's assets on an on-going basis, over time these fees will increase the cost of your investment and may cost you more than paying other types of sales charges.

**Additional Compensation to Financial Intermediaries** 

Diamond Hill Capital Management, Inc., the Adviser and Administrator, may make payments to financial intermediaries that can be categorized as "service-related" or "distribution-related."

Payments made by the Administrator to financial intermediaries to compensate or reimburse them for administrative or other client services provided, such as sub-transfer agency services for shareholders or retirement plan participants, omnibus accounting or sub-accounting, participation in networking arrangements, record keeping and other shareholder services are categorized as "servicing related." Payments made pursuant to such agreements generally are based on either (a) a percentage of the average daily net assets of clients serviced by such financial intermediaries, or (b) the number of accounts serviced by such financial intermediary.

Payments made by the Adviser from its own resources to financial intermediaries that are in addition to, rather than in lieu of, Rule 12b-1 fees for distribution-related expenses, such as marketing or promotional expenses, are often referred to as "distribution-related." Distribution-related payments may be made on the basis of the sales of shares attributable to that intermediary, the average net assets of a Fund and other Diamond Hill Funds attributable to the accounts of that intermediary and its clients, negotiated lump sum payments for distribution services provided, or similar fees. In some circumstances, distribution-related payments may create an incentive for a financial intermediary or its representatives to recommend or offer shares of the Fund or other Diamond Hill Funds to its customers or provide an incentive for a financial intermediary to cooperate with the Distributor's marketing efforts by providing representatives of the Distributor with preferential access to representatives of the intermediary's sales force. Distribution-related payments may also be used to reimburse expenses related to educational seminars and "due diligence" or training meetings (to the extent permitted by applicable laws or the rules of the Financial Industry Regulatory Authority ("FINRA")) designed to increase sales representatives' awareness about Diamond Hill Funds, including travel and lodging expenditures.

**Other Purchase Information** 

The Funds reserve the right to limit the amount of purchases and to refuse to sell to any person. When purchasing shares of the Funds by check, the check must be made out to the applicable Fund, or the Trust, as the payee. If your check or wire does not clear, you will be responsible for any loss incurred by a Fund. If you are already a shareholder of a Fund, we reserve the right to redeem shares from any identically

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| **54** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

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**Your Account**<br>

registered account in the Trust as reimbursement for any loss incurred or money owed to the Trust. You may be prohibited or restricted from making future purchases in the Funds.

**How to Redeem Shares** 

You may redeem all or part of your investment in a Fund on any day that the NYSE is open for trading, subject to certain restrictions described below. Redemption requests received by a Fund or an authorized agent of the Fund before 4:00 p.m.ET (or before if the NYSE closes before 4:00 p.m. ET) will be effective that day. The price you will receive when you redeem your shares will be the NAV (less any applicable sales charges) next determined after the Fund receives your properly completed order to sell. You may receive proceeds of your sale in a check, ACH, or federal wire transfer. The Funds typically expect that it will take one to three days following the receipt of your redemption request to pay out redemption proceeds; however, while not expected, payment of redemption proceeds may take up to seven days. The proceeds may be more or less than the purchase price of your shares, depending on the market value of the Fund's securities at the time of your sale. If you sell shares through your Financial intermediary, contact your financial adviser for their requirements and procedures. A broker may charge a transaction fee to redeem shares. The Fund may charge $9 for wire redemptions. Any charges for wire redemptions will be deducted from your account by redemption of shares. The Funds encourage, to the extent possible, advance notification of large redemptions. Under both normal and stressed market conditions, the Funds generally intend to pay all redemptions in cash. The Funds typically expect to satisfy redemption requests either by using available cash (or cash equivalents) or by selling portfolio securities. The Funds may also satisfy redemption requests by drawing from an available line of credit, using redemptions in-kind, participating in a liquidity program with a service provider, or borrowing from a different Fund pursuant to the Funds' Interfund Lending Program. The Funds reserve the right to redeem in-kind as described under "Additional Information" below .

**By Mail** To redeem any part of your account in a Fund by mail, send a written request, with the following information, to:

(Fund Name)

Diamond Hill Funds

P.O. Box 46707

Cincinnati, OH 45246

● the Fund name;

● your account number;

● the name(s) on your account;

● your address;

● the dollar amount or number of shares you wish to redeem;

● the signature of all registered account owners, signed in the exact name(s) and any special capacity in which they are registered; and

● the federal tax withholding election (for retirement accounts).

● If the shares to be redeemed have a value of $100,000 or more, your signature(s) must be guaranteed by an original Medallion Signature Guarantee by an eligible guarantor institution outlined below.

● You must request the redemption in writing with your signature guaranteed by a Medallion Signature Guarantee, regardless of the value of the shares being redeemed if: the address on your account has been changed within 15 days of your redemption request; the check is not being mailed to the address on your account; the check is not being made payable to the owner(s) of the account; the redemption proceeds are being transferred to another fund account with a different registration or; the redemption proceeds are being wired to bank instructions currently not on your account.

We accept original signature guarantees from U.S. banks, brokers, dealers, credit unions, national securities exchanges, registered securities associations, clearing agencies and savings and loan associations participating in a Medallion program. The three recognized medallion programs are Securities Transfer Agent Medallion Program (STAMP), Stock Exchanges Medallion Program (SEMP) and New York Stock Exchange, Inc. Medallion Signature Program (MSP). SIGNATURE GUARANTEES RECEIVED FROM INSTITUTIONS NOT PARTICIPATING IN THESE PROGRAMS WILL NOT BE ACCEPTED. In certain instances, we may require you to furnish additional legal documents to insure proper authorization.

**By Telephone** If you have completed the Optional Telephone Redemption and Exchange section of your investment application, you may sell any part of your account by calling the Funds at 888-226-5595 between the hours of 8:00 a.m. and 6:00 p.m. Eastern time on days the Funds are open for business. On days when the NYSE closes early, the call center hours will be between reduced accordingly. IRA accounts are not redeemable by telephone.

Neither the Funds nor the Transfer Agent will be liable for complying with telephone instructions they reasonably believe to be genuine or for any loss, damage, cost or expenses in acting on such telephone instructions. The affected shareholders will bear the risk of any such loss. The Funds or the Transfer Agent, or both, will employ reasonable procedures to determine that telephone instructions are genuine. If the Funds and/or the Transfer Agent do not employ such procedures, they may be liable for losses due to unauthorized or fraudulent instructions. Such procedures may include, among others, requiring forms of personal identification before acting upon telephone instructions, providing written confirmation of the transactions, and/or digitally recording telephone instructions.

We may terminate the telephone sale procedures at any time. During periods of extreme market activity it is possible that you may encounter some difficulty in telephoning us, although we have never experienced difficulties in receiving or in a timely fashion responding to telephone requests. If you are unable to reach us by telephone, you may request a sale by mail. An original Medallion Signature Guarantee is required for any telephone redemption request for an amount of at least

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**Your Account**<br>

$100,000 as described above. A telephone redemption request for an amount of at least $100,000 as described above will not be processed until the Medallion Signature Guarantee is received by the Transfer Agent.

**Additional Information** Redemptions will be remitted to the record holder at the address of record or to bank accounts of the shareholder that have been previously designated by the shareholder. If you are not certain of the requirements for a sale, please call the Funds at 888-226-5595 between the hours of 8:00 a.m. and 6:00 p.m. Eastern time on days the Funds are open for business. On days when the NYSE closes early, the call center hours will be reduced accordingly. We cannot accept, and will return, requests specifying a certain date or share price. The Funds may hold proceeds for shares purchased by ACH or check until the purchase amount has been collected, which may be as long as ten business days. Also, when the NYSE is closed (or when trading is restricted) for any reason other than its customary weekend or holiday closing or under any emergency circumstances, as determined by the Securities and Exchange Commission, we may suspend sales or postpone payment dates.

Generally, all redemptions will be for cash. However, if during any 90-day period you redeem shares in an amount greater than the lesser of $250,000 or 1% of a Fund's net assets, the Funds reserve the right to pay part, or all of your redemption proceeds above such threshold in readily marketable securities instead of cash. Redemption-in-kind proceeds are limited to securities that are traded on a public securities market or are limited to securities for which quoted bid and asked prices are available. These securities may be distributed to the redeeming shareholder based on a pro-rata slice of a Fund's portfolio or a non-pro-rata slice of the Fund's portfolio depending upon various circumstances and subject to the Funds' policies and procedures and any applicable laws or regulations. If payment is made in kind with securities, a Fund will value the securities selected in the same manner in which it computes its NAV. This process minimizes the effect of large redemptions on a fund and its remaining shareholders. If you receive securities when redeeming your account, the securities will be subject to market fluctuation, and you may incur tax and transaction costs if the securities are sold.

In some circumstances, to meet Fund liquidity needs, for optimizing a Fund's portfolio, or a combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial institutions that are willing, upon redemption of their investment in a Fund, to receive their redemption in kind rather than in cash. A Fund's ability to pay these redemption proceeds in-kind relieves the Fund of the need to sell the securities that are distributed in kind and incur brokerage and other transaction costs associated with such sale. As with other in kind redemption transactions, a Fund would enter into these transactions only when the Fund determines it to be in the Fund's best interest to do so, and in accordance with the Fund's policies on redemptions in kind. The Funds' procedures adopted to discourage excessive or abusive trading activities do not apply to the transactions described in this paragraph, as the Adviser has determined that these transactions are not

detrimental to the remaining shareholders of a Fund. Financial institutions that participate in the transactions described in this paragraph do not receive a fee from the Fund for doing so.

**Accounts with Low Balances** Maintaining small accounts is costly for the Funds and may have a negative effect on performance. Shareholders are encouraged to keep their accounts above the Funds' minimum.

● The Funds reserve the right to redeem your remaining shares and close your account if a redemption of shares brings the value of your account below $2,500. In such cases, you will be notified and given at least 30 days to purchase additional shares to bring the balance above the minimum before the account is closed.

● The above involuntary redemptions constitute a sale of Fund shares. You should consult your tax adviser concerning the tax consequences of involuntary redemptions.

**Unclaimed Property** An account may be turned over as unclaimed property to the investor's last known state of tax residence if the account is deemed "inactive" or "lost" during the time frame specified within the applicable state's unclaimed property laws. Investors who are residents of the state of Texas may designate a representative to receive legislatively. required unclaimed property due diligence notifications. A Texas Designation of Representative Form is available for making such an election.

**How to Exchange Shares** 

You may exchange any or all of your shares in a Fund for shares in another Diamond Hill Fund or another share class of the same Fund, subject to the following conditions:

Investor shares of a Fund may be exchanged for:

● Investor shares of another Fund

● Another share class of the same Fund provided you meet the eligibility and minimum investment requirements of that class.

Class I shares of a fund may be exchanged for:

● Class I shares of another Fund

● Another share class of the same fund provided you meet the eligibility and minimum investment requirements of that class.

Class Y shares of a Fund may be exchanged for:

● Class Y shares of another Fund

● Another share class of the same Fund provided you meet the eligibility and minimum investment requirements of that class.

You may request the exchange for accounts held directly at the transfer agent by telephoning 888-226-5595 between the hours of 8:00 a.m. and 6:00 p.m. Eastern time on days the Funds are open for business or writing the Funds at Diamond

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| **56** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

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**Your Account**<br>

Hill Funds, P.O. Box 46707, Cincinnati, OH 45246. On days when the NYSE closes early, the call center hours will be reduced accordingly. You may request the exchange for accounts held through a financial intermediary by contacting the financial intermediary directly. Exchanges may be made only if the exchanging Fund is registered in your state of residence. The exchange privilege does not constitute an offering or recommendation of a Fund. Due to operational limitations at your financial intermediary, your ability to exchange your shares to another share class may be limited. It is your responsibility to obtain and read a prospectus of the exchanging Fund before you make an exchange. Not all share classes may be available for each Fund.

● If you exchange shares into or out of a Fund, the exchange is made at the NAV per share of each Fund next determined after the exchange request is received.

In times of extreme economic or market conditions, exchanging Fund shares by telephone may be difficult. To receive a specific day's price, your letter or call must be received before that day's close of the NYSE. Each exchange represents the sale of shares from one Fund and the purchase of shares in another, which may produce a gain or loss for federal income tax purposes.

Exchanges will be accepted only if the registration of the two accounts is identical or the exchange instructions have a Medallion Signature Guarantee. The Funds and the Transfer Agent are not liable for following instructions communicated by telephone that they reasonably believe to be genuine. They will use reasonable procedures to confirm that telephone instructions are genuine. The exchange feature may be modified or discontinued at any time upon notice to you in accordance with federal securities laws.

**Share Class Conversions** The Internal Revenue Service currently takes the position that a conversion/exchange of share classes of the same fund is a nontaxable event. Conversion/exchanges of share classes between different funds is generally taxable.

**How to Request Certain Non-Financial Transactions** 

The Funds will accept the STAMP's Signature Validation Program ("SVP") stamp for certain non-financial transactions. The SVP was introduced in response to requests from financial services institutions that rely upon the effectiveness of a signature guarantee when processing non-financial transactions for which the surety bond attached to a Medallion Signature Guarantee ("MSG") would not apply. The SVP stamp carries its own separate surety bond that would apply to such non-financial transactions. The SVP stamp may be obtained from eligible members, including banks, broker/dealers, credit unions, national securities exchanges, registered securities associations, clearing agencies and savings associations.

This program enables the Funds to accept documents stamped with an SVP stamp in lieu of the MSG for non-financial transactions. The non-financial transactions for which the Funds can accept an SVP are: (1) change name; (2) add or

change banking instructions; (3) add or change beneficiaries; (4) add or change authorized account traders; (5) add a Power of Attorney; (6) add or change Trustee; and (7) change UTMA/UGMA custodian.

In the event that your bank or financial institution does not participate in the SVP Stamp program, you should request that the guarantor use their Medallion Guarantee Stamp.

**Market Timing and Frequent Trading Policy** 

The Funds are not designed to serve as a vehicle for frequent trading. The Funds do not authorize, and use reasonable methods to discourage, short-term or excessive trading, often referred to as "market timing." Market timing is an investment strategy using frequent purchases, redemptions and/or exchanges in an attempt to profit from short-term market movements. Market timing or excessive trading may result in dilution of the value of Fund shares held by long-term shareholders, disrupt portfolio management, and increase Fund expenses for all shareholders. The Funds will take reasonable steps to discourage excessive short-term trading and the Board has adopted the following policies and procedures with respect to market timing. The Funds will monitor selected trades on a daily basis in an effort to detect excessive short-term trading. If a Fund has reason to believe that a shareholder has engaged in excessive short-term trading, the Fund may ask the shareholder to stop such activities or refuse to process purchases or exchanges in the shareholder's accounts. In addition to rejecting purchase orders in connection with suspected market timing activities, a Fund can reject a purchase order for any reason. While the Funds cannot assure the prevention of all excessive trading and market timing, by making these judgments the Funds believe they are acting in a manner that is in the best interests of shareholders.

Market timers may disrupt portfolio management and harm Fund performance. To the extent that the Funds are unable to identify market timers effectively, long-term investors may be adversely affected. Although the Funds use a variety of methods to detect and deter market timing, due to the complexity involved in identifying excessive trading there is no assurance that the Funds' efforts will identify and eliminate all trades or trading practices that may be considered abusive. In accordance with Rule 22c-2 under the Company Act, the Trust has entered into information sharing agreements with certain financial intermediaries. Under these agreements, a financial intermediary is obligated to: (1) adopt and enforce during the term of the agreement, a market-timing policy, the terms of which are acceptable to the Trust; (2) furnish the Trust, upon its request, with information regarding customer trading activities in shares of the Trust; and (3) enforce its market-timing policy with respect to customers identified by the Trust as having engaged in market timing. When information regarding transactions in the Trust's shares is requested by the Trust and such information is in the possession of a person that is itself a financial intermediary to a financial intermediary (an "indirect intermediary"), any financial intermediary with whom the Trust has an information sharing agreement is obligated to obtain transaction information from the indirect intermediary

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| **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** | **57** |

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**Your Account**<br>

or, if directed by the Trust, to restrict or prohibit the indirect intermediary from purchasing shares of the Trust on behalf of other persons.

The Funds apply these policies and procedures to all shareholders believed to be engaged in market timing or excessive trading. The Funds have no arrangements to permit any investor to trade frequently in shares of the Funds, nor will it enter into any such arrangements in the future.

**Distributions and Taxes** 

The following information is provided to help you understand the income and capital gains you may earn while you own Fund shares, as well as the federal income taxes you may have to pay. The amount of any distribution varies and there is no guarantee the Funds will pay either income dividends or capital gain distributions. For tax advice about your personal tax situation, please speak with your tax adviser.

**Income and Capital Gain Distributions** Each Fund intends to qualify each year as a regulated investment company under the Code. As a regulated investment company, a Fund generally pays no federal income tax on the income and gains distributed to shareholders. The Small Cap Fund, Small-Mid Cap Fund, Mid Cap Fund, Large Cap Fund, Select Fund, Long-Short Fund and International Fund expect to declare and distribute their net investment income, if any, to shareholders annually. The Short Duration Securitized Bond Fund, Securitized Total Return Fund, Core Bond Fund and Core Plus Bond Fund expect to declare and distribute their net investment income, if any, to shareholders monthly. Capital gains, if any, may be distributed at least annually. A Fund may distribute income dividends and capital gains more frequently, if necessary, in order to reduce or eliminate federal excise or income taxes on the Fund. All income and capital gain distributions are automatically reinvested in shares of the Fund unless you request cash distributions on your application or through a written request. If you choose to have dividends or capital gain distributions, or both, mailed to you and the distribution check is returned as undeliverable or is not presented for payment within six months, the Trust reserves the right to reinvest the check proceeds and future distributions in shares of a Fund at the Fund's then-current NAV until you give the Trust different instructions.

Tax Considerations If you are a taxable investor, dividends and capital gain distributions you receive from a Fund, whether you reinvest your distributions in additional Fund shares or receive them in cash, are subject to federal income tax, state taxes, and possibly local taxes:

● distributions are taxable to you at either ordinary income or capital gains tax rates;

● distributions of short-term capital gains are paid to you as ordinary income that is taxable at applicable ordinary income tax rates;

● distributions of long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares;

● for individuals, a portion of the income dividends paid may be qualified dividend income eligible for long-term capital gains tax rates, provided that certain holding period requirements are met;

● for corporate shareholders, a portion of income dividends may be eligible for the corporate dividend-received deduction, subject to certain limitations;

● distributions declared in December to shareholders of record in such month, but paid in January, are taxable as if they were paid in December; and

● an additional 3.8% Medicare tax is imposed on distributions you receive from the Funds and gains from selling, redeeming or exchanging your shares.

The amount and type of income dividends and the tax status of any capital gains distributed to you are reported on Form 1099-DIV, which we send to you annually during tax season (unless you hold your shares in a qualified tax-deferred plan or account or are otherwise not subject to federal income tax). The Funds may reclassify income after your tax reporting statement is mailed to you. This can result from the rules in the Code that effectively prevent mutual funds, such as the Funds, from ascertaining with certainty, until after the calendar year end, the final amount and character of distributions a Fund has received on its investments during the prior calendar year. Prior to issuing your statement, the Funds make every effort to search for reclassified income to reduce the number of corrected forms mailed to shareholders. However, when necessary, the Funds will send you a corrected Form 1099-DIV to reflect reclassified information.

Distributions from a Fund (both taxable dividends and capital gains) are normally taxable to you when made, regardless of whether you reinvest these distributions or receive them in cash (unless you hold shares in a qualified tax-deferred plan or account or are otherwise not subject to federal income tax).

If you are a taxable investor and invest in a Fund shortly before it makes an ordinary income or capital gain distribution, some of your investment may be returned to you in the form of a taxable distribution. Fund distributions may reduce the NAV per share. Therefore, if you buy shares after a Fund has realized but not yet distributed ordinary income or capital gains, you may pay the full price for the shares and then effectively receive a portion of the purchase price back as a taxable distribution. This is commonly known as "buying a dividend."

**Selling and Exchanging Shares** Selling your shares may result in a realized capital gain or loss, which is subject to federal income tax. For tax purposes, an exchange from one Diamond Hill Fund to another is the same as a sale. For individuals, any long-term capital gains you realize from selling Fund shares are taxed at your applicable tax rate for long-term capital gains. Short-term capital gains are taxed at ordinary income tax rates. You or your tax adviser should track your purchases, tax basis, sales and any resulting gain or loss. If you redeem Fund shares for a loss, you may be able to use this capital loss to offset any other capital gains you have.

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| **58** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

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**Your Account**<br>

**Other Tax Jurisdictions** Distributions and gains from the sale or exchange of your Fund shares may be subject to state and local taxes, even if not subject to federal income taxes. State and local tax laws vary; please consult your tax adviser. Non-U.S. investors may be subject to U.S. withholding at a 30% or lower treaty tax rate and U.S. estate tax and are subject to special U.S. tax certification requirements to avoid backup withholding and claim any treaty benefits.

**Tax Status for Retirement Plans and Other Tax-Deferred Accounts** When you invest in a Fund through a qualified employee benefit plan, retirement plan or some other tax-deferred account, dividend and capital gain distributions generally are not subject to current federal income taxes. In general, these plans or accounts are governed by complex tax rules. You should ask your tax adviser or plan administrator for more information about your tax situation, including possible state or local taxes.

**Backup Withholding** By law, you may be subject to backup withholding on a portion of your taxable distributions and redemption proceeds unless you provide your correct Social Security or taxpayer identification number and certify that: (1) this number is correct, (2) you are not subject to backup withholding, and (3) you are a U.S. person (including a U.S. resident alien). You may also be subject to withholding if the Internal Revenue Service instructs us to withhold a portion of your distributions and proceeds. When withholding is required, the amount is 24% of any distributions or proceeds paid.

This discussion of "Distributions and Taxes" is not intended or written to be used as tax advice. Because everyone's tax situation is unique, you should consult your tax professional about federal, state, local or non-U.S. tax consequences before making an investment in the Funds.

**Householding** 

To reduce expenses, we mail only one copy of a Fund's prospectus and each annual and semi-annual report to those addresses shared by two or more accounts. If you wish to receive individual copies of these documents, please call the Funds at 888-226-5595 between the hours of 8:00 a.m. and 6:00 p.m. Eastern time on days the Funds are open for business or contact your financial institution. On days when the NYSE closes early, the call center hours will be reduced accordingly. We will begin sending you individual copies thirty days after receiving your request.

**Financial Highlights** 

The financial highlights tables are intended to help you understand the Funds' financial performance for the past five years (or, if shorter, the period of the Funds' operations). Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Funds (assuming reinvestment of all dividends and distributions). The information has been audited by Cohen & Company, Ltd., an independent registered public accounting firm, whose report, along with the Funds' financial statements, is incorporated by reference into the SAI, which is available upon request.

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| **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** | **59** |

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**Financial Highlights**<br>

Selected data for a share outstanding throughout the periods indicated

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| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Small Cap Fund** | Net Asset <br> Value <br> Beginning <br> of Year | Net <br>Investment <br>Income <sup>(A)</sup> | Net <br> Realized <br> and <br> Unrealized <br> Gains <br> (Losses) on <br> Investments | Total from <br> Investment <br> Operations | Dividends <br> from Net <br> Investment <br> Income | Distributions <br> from Net <br> Realized <br> Capital <br> Gains | Total <br> Distributions | Net Asset <br> Value End <br> of Year | Total <br>Return | Net Assets <br> End of <br> Year <br> (000's) | Ratio of <br> Total Net <br> Expenses <br> to Average <br> Net Assets | Ratio of Net <br> Investment <br> Income to <br> Average <br> Net Assets | Portfolio <br>Turnover <br>Rate<sup>(B)</sup> |
| **Investor** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the year ended December 31, 2025** | $23.01 | 0.14 | 2.52 | 2.66 |  | (1.41) | (1.41) | $24.26 | 11.48% | $43472 | 1.28% | 0.61% | 57 %<sup>(C)</sup> |
| **For the year ended December 31, 2024** | 23.55 | 0.09 | 3.07 | 3.16 | (1.18) | (2.52) | (3.70) | 23.01 | 12.88 | 61972 | 1.26 | 0.38 | 43 |
| **For the year ended December 31, 2023** | 25.06 | 0.24 | 5.49 | 5.73 | (0.63) | (6.61) | (7.24) | 23.55 | 22.94 | 62642 | 1.26 | 0.88 | 41 |
| **For the year ended December 31, 2022** | 34.73 | 0.11 | (5.23) | (5.12) | (0.15) | (4.40) | (4.55) | 25.06 | (15.02) | 79634 | 1.26 | 0.34 | 37 <sup>(C)</sup> |
| **For the year ended December 31, 2021** | 30.96 | 0.07 | 9.75 | 9.82 | (0.07) | (5.98) | (6.05) | 34.73 | 32.45 | 123975 | 1.26 | 0.20 | 20 |
| **Class I** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the year ended December 31, 2025** | $23.87 | 0.21 | 2.63 | 2.84 | (0.04) | (1.41) | (1.45) | $25.26 | 11.84% | $151786 | 0.99% | 0.87% | 57 %<sup>(C)</sup> |
| **For the year ended December 31, 2024** | 24.30 | 0.17 | 3.17 | 3.34 | (1.25) | (2.52) | (3.77) | 23.87 | 13.22 | 145953 | 0.97 | 0.67 | 43 |
| **For the year ended December 31, 2023** | 25.67 | 0.33 | 5.61 | 5.94 | (0.70) | (6.61) | (7.31) | 24.30 | 23.22 | 149790 | 0.97 | 1.19 | 41 |
| **For the year ended December 31, 2022** | 35.44 | 0.18 | (5.31) | (5.13) | (0.24) | (4.40) | (4.64) | 25.67 | (14.77) | 187656 | 0.97 | 0.57 | 37 <sup>(C)</sup> |
| **For the year ended December 31, 2021** | 31.49 | 0.19 | 9.92 | 10.11 | (0.18) | (5.98) | (6.16) | 35.44 | 32.83 | 391856 | 0.97 | 0.52 | 20 |
| **Class Y** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the year ended December 31, 2025** | $23.95 | 0.23 | 2.65 | 2.88 | (0.07) | (1.41) | (1.48) | $25.35 | 11.96% | $22633 | 0.87% | 0.94% | 57 %<sup>(C)</sup> |
| **For the year ended December 31, 2024** | 24.38 | 0.20 | 3.17 | 3.37 | (1.28) | (2.52) | (3.80) | 23.95 | 13.31 | 19507 | 0.85 | 0.78 | 43 |
| **For the year ended December 31, 2023** | 25.72 | 0.36 | 5.65 | 6.01 | (0.74) | (6.61) | (7.35) | 24.38 | 23.47 | 18448 | 0.85 | 1.29 | 41 |
| **For the year ended December 31, 2022** | 35.49 | 0.22 | (5.32) | (5.10) | (0.27) | (4.40) | (4.67) | 25.72 | (14.64) | 18592 | 0.85 | 0.69 | 37 <sup>(C)</sup> |
| **For the year ended December 31, 2021** | 31.52 | 0.22 | 9.95 | 10.17 | (0.22) | (5.98) | (6.20) | 35.49 | 32.98 | 52704 | 0.85 | 0.59 | 20 |

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<sup>(A)</sup> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income per share has been calculated using the average daily shares outstanding during the year.

<sup>(B)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

<sup>(C)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Portfolio turnover does not include redemptions in-kind

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| **60** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

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**Financial Highlights**<br>

Selected data for a share outstanding throughout the periods indicated

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|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Small-Mid Cap Fund** | Net Asset <br> Value <br> Beginning <br> of Year | Net <br> Investment <br> Income <sup>(A)</sup> | Net <br> Realized <br> and <br> Unrealized <br> Gains <br> (Losses) on <br> Investments | Total from <br> Investment <br> Operations | Dividends <br> from Net <br> Investment <br> Income | Distributions <br> from Net <br> Realized <br> Capital <br> Gains | Total <br> Distributions | Net Asset <br> Value End <br> of Year | Total <br> Return | Net Assets <br> End of <br> Year <br> (000's) | Ratio of <br> Total Net <br> Expenses <br> to Average <br> Net Assets | Ratio <br> of Total <br> Gross <br> Expenses <br> to Average <br> Net <br> Assets<sup>(B)</sup> | Ratio of Net <br> Investment <br> Income to <br> Average <br> Net Assets | Portfolio <br> Turnover <br> Rate<sup>(C)</sup> |
| **Investor** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the year ended December 31, 2025** | $25.43 | 0.14 | 1.99 | 2.13 |  | (1.59) | (1.59) | $25.97 | 8.33% | $32561 | 1.22% | 1.22% | 0.55% | 44 %<sup>(D)</sup> |
| **For the year ended December 31, 2024** | 25.35 | 0.18 | 1.87 | 2.05 | (0.25) | (1.72) | (1.97) | 25.43 | 7.78 | 36660 | 1.21 | 1.21 | 0.69 | 22 <sup>(D)</sup> |
| **For the year ended December 31, 2023** | 23.04 | 0.15 | 2.42 | 2.57 | (0.07) | (0.19) | (0.26) | 25.35 | 11.12 | 44270 | 1.21 | 1.21 | 0.63 | 16 <sup>(D)</sup> |
| **For the year ended December 31, 2022** | 28.06 | 0.12 | (3.99) | (3.87) | (0.12) | (1.03) | (1.15) | 23.04 | (13.86) | 163974 | 1.21 | 1.21 | 0.45 | 25 <sup>(D)</sup> |
| **For the year ended December 31, 2021** | 22.69 | 0.05 | 6.87 | 6.92 | (0.05) | (1.50) | (1.55) | 28.06 | 30.78 | 208110 | 1.20 | 1.21 | 0.18 | 14 |
| **Class I** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the year ended December 31, 2025** | $25.59 | 0.21 | 2.01 | 2.22 |  | (1.59) | (1.59) | $26.22 | 8.63% | $447534 | 0.93% | 0.93% | 0.84% | 44 %<sup>(D)</sup> |
| **For the year ended December 31, 2024** | 25.48 | 0.26 | 1.89 | 2.15 | (0.32) | (1.72) | (2.04) | 25.59 | 8.11 | 473097 | 0.92 | 0.92 | 0.98 | 22 <sup>(D)</sup> |
| **For the year ended December 31, 2023** | 23.31 | 0.26 | 2.42 | 2.68 | (0.32) | (0.19) | (0.51) | 25.48 | 11.47 | 758160 | 0.92 | 0.92 | 1.07 | 16 <sup>(D)</sup> |
| **For the year ended December 31, 2022** | 28.38 | 0.19 | (4.04) | (3.85) | (0.19) | (1.03) | (1.22) | 23.31 | (13.62) | 813600 | 0.92 | 0.92 | 0.74 | 25 <sup>(D)</sup> |
| **For the year ended December 31, 2021** | 22.93 | 0.12 | 6.96 | 7.08 | (0.13) | (1.50) | (1.63) | 28.38 | 31.14 | 1059287 | 0.91 | 0.92 | 0.45 | 14 |
| **Class Y** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the year ended December 31, 2025** | $25.65 | 0.24 | 2.02 | 2.26 |  | (1.59) | (1.59) | $26.32 | 8.76% | $370775 | 0.81% | 0.81% | 0.93% | 44 %<sup>(D)</sup> |
| **For the year ended December 31, 2024** | 25.55 | 0.30 | 1.88 | 2.18 | (0.36) | (1.72) | (2.08) | 25.65 | 8.23 | 615460 | 0.80 | 0.80 | 1.11 | 22 <sup>(D)</sup> |
| **For the year ended December 31, 2023** | 23.37 | 0.29 | 2.43 | 2.72 | (0.35) | (0.19) | (0.54) | 25.55 | 11.62 | 815252 | 0.80 | 0.80 | 1.21 | 16 <sup>(D)</sup> |
| **For the year ended December 31, 2022** | 28.45 | 0.23 | (4.06) | (3.83) | (0.22) | (1.03) | (1.25) | 23.37 | (13.51) | 924744 | 0.80 | 0.80 | 0.87 | 25 <sup>(D)</sup> |
| **For the year ended December 31, 2021** | 22.99 | 0.16 | 6.96 | 7.12 | (0.16) | (1.50) | (1.66) | 28.45 | 31.24 | 1011010 | 0.79 | 0.80 | 0.59 | 14 |

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<sup>(A)</sup> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income per share has been calculated using the average daily shares outstanding during the year.

<sup>(B)</sup> &nbsp;&nbsp;&nbsp;&nbsp;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, 2024 through 2021. 

<sup>(C)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

<sup>(D)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Portfolio turnover does not include redemptions in-kind.

---

| | |
|:---|:---|
| **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** | **61** |

---

**Financial Highlights**<br>

Selected data for a share outstanding throughout the periods indicated

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Mid Cap Fund** | Net Asset <br> Value <br> Beginning <br> of Year | Net <br> Investment <br> Income<sup>(A)</sup> | Net <br> Realized <br> and <br> Unrealized <br> Gains <br> (Losses) on <br> Investments | Total from <br> Investment <br> Operations | Dividends <br> from Net <br> Investment <br> Income | Distributions <br> from Net <br> Realized <br> Capital <br> Gains | Total <br> Distributions | Net asset <br> Value End <br> of Year | Total <br> Return | Net Assets <br> End of <br> Year <br> (000's) | Ratio <br> of Total <br> Expenses <br> to Average <br> Net Assets | Ratio <br> of Net <br> Investment <br> Income to <br> Average <br> Net Assets | Portfolio <br> Turnover <br> Rate<sup>(B)</sup> |
| **Investor** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the year ended December 31, 2025** | $16.67 | 0.12 | 2.08 | 2.20 | (0.18) | (2.71) | (2.89) | $15.98 | 13.10% | $3453 | 1.08% | 0.67% | 33 %<sup>(C)</sup> |
| **For the year ended December 31, 2024** | 16.37 | 0.14 | 1.63 | 1.77 | (0.15) | (1.32) | (1.47) | 16.67 | 10.50 | 3998 | 1.06 | 0.81 | 19 |
| **For the year ended December 31, 2023** | 15.33 | 0.08 | 1.32 | 1.40 | (0.04) | (0.32) | (0.36) | 16.37 | 9.14 | 4435 | 1.06 | 0.48 | 22 |
| **For the year ended December 31, 2022** | 18.62 | 0.07 | (2.60) | (2.53) | (0.10) | (0.66) | (0.76) | 15.33 | (13.66) | 23932 | 1.06 | 0.46 | 19 <sup>(C)</sup> |
| **For the year ended December 31, 2021** | 14.27 | 0.05 | 4.36 | 4.41 | (0.06) |  | (0.06) | 18.62 | 30.87 | 33006 | 1.06 | 0.30 | 12 |
| **Class I** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the year ended December 31, 2025** | $16.63 | 0.17 | 2.07 | 2.24 | (0.22) | (2.71) | (2.93) | $15.94 | 13.37% | $70105 | 0.79% | 0.98% | 33 %<sup>(C)</sup> |
| **For the year ended December 31, 2024** | 16.33 | 0.19 | 1.63 | 1.82 | (0.20) | (1.32) | (1.52) | 16.63 | 10.83 | 134555 | 0.77 | 1.10 | 19 |
| **For the year ended December 31, 2023** | 15.39 | 0.14 | 1.31 | 1.45 | (0.19) | (0.32) | (0.51) | 16.33 | 9.44 | 149820 | 0.77 | 0.90 | 22 |
| **For the year ended December 31, 2022** | 18.69 | 0.12 | (2.61) | (2.49) | (0.15) | (0.66) | (0.81) | 15.39 | (13.39) | 150772 | 0.77 | 0.75 | 19 <sup>(C)</sup> |
| **For the year ended December 31, 2021** | 14.32 | 0.10 | 4.38 | 4.48 | (0.11) |  | (0.11) | 18.69 | 31.29 | 229696 | 0.77 | 0.60 | 12 |
| **Class Y** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the year ended December 31, 2025** | $16.69 | 0.18 | 2.11 | 2.29 | (0.25) | (2.71) | (2.96) | $16.02 | 13.63% | $3106 | 0.67% | 1.00% | 33 %<sup>(C)</sup> |
| **For the year ended December 31, 2024** | 16.39 | 0.21 | 1.64 | 1.85 | (0.23) | (1.32) | (1.55) | 16.69 | 10.93 | 8134 | 0.65 | 1.21 | 19 |
| **For the year ended December 31, 2023** | 15.43 | 0.16 | 1.33 | 1.49 | (0.21) | (0.32) | (0.53) | 16.39 | 9.65 | 8263 | 0.65 | 0.99 | 22 |
| **For the year ended December 31, 2022** | 18.74 | 0.14 | (2.62) | (2.48) | (0.17) | (0.66) | (0.83) | 15.43 | (13.31) | 12528 | 0.65 | 0.86 | 19 <sup>(C)</sup> |
| **For the year ended December 31, 2021** | 14.36 | 0.11 | 4.40 | 4.51 | (0.13) |  | (0.13) | 18.74 | 31.41 | 23739 | 0.65 | 0.69 | 12 |

---

<sup>(A)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Net investment income per share has been calculated using the average daily shares outstanding during the year.

<sup>(B)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

<sup>(C)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Portfolio turnover does not include redemptions in-kind.

---

| | |
|:---|:---|
| **62** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

---

**Financial Highlights**<br>

Selected data for a share outstanding throughout the periods indicated

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Large Cap Fund** | Net Asset <br> Value <br> Beginning <br> of Year | Net <br> Investment <br> Income<sup>(A)</sup> | Net <br> Realized <br> and <br> Unrealized <br> Gains <br> (Losses) on <br> Investments | Total from <br> Investment <br> Operations | Dividends <br> from Net <br> Investment <br> Income | Distributions <br> from Net <br> Realized <br> Capital <br> Gains | Total <br> Distributions | Net asset <br> Value End <br> of Year | Total <br> Return | Net Assets <br> End of Year <br> (000,000's) | Ratio <br> of Total <br> Expenses <br> to Average <br> Net Assets | Ratio of Net <br> Investment <br> Income to <br> Average <br> Net Assets | Portfolio <br> Turnover <br> Rate<sup>(B)</sup> |
| **Investor** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the year ended December 31, 2025** | $32.23 | 0.33 | 1.39 | 1.72 | (0.06) | (1.87) | (1.93) | $32.02 | 5.33% | $233 | 0.97% | 1.00% | 45 %<sup>(C)</sup> |
| **For the year ended December 31, 2024** | 31.72 | 0.40 | 3.44 | 3.84 | (0.38) | (2.95) | (3.33) | 32.23 | 11.83 | 294 | 0.96 | 1.16 | 36 <sup>(C)</sup> |
| **For the year ended December 31, 2023** | 28.86 | 0.35 | 3.49 | 3.84 | (0.24) | (0.74) | (0.98) | 31.72 | 13.31 | 332 | 0.96 | 1.16 | 22 |
| **For the year ended December 31, 2022** | 35.50 | 0.28 | (5.09) | (4.81) | (0.33) | (1.50) | (1.83) | 28.86 | (13.66) | 777 | 0.96 | 0.87 | 38 <sup>(C)</sup> |
| **For the year ended December 31, 2021** | 30.42 | 0.23 | 7.43 | 7.66 | (0.21) | (2.37) | (2.58) | 35.50 | 25.42 | 987 | 0.96 | 0.68 | 22 <sup>(C)</sup> |
| **Class I** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the year ended December 31, 2025** | $32.30 | 0.42 | 1.41 | 1.83 | (0.16) | (1.87) | (2.03) | $32.10 | 5.65% | $3904 | 0.68% | 1.28% | 45 %<sup>(C)</sup> |
| **For the year ended December 31, 2024** | 31.80 | 0.51 | 3.43 | 3.94 | (0.49) | (2.95) | (3.44) | 32.30 | 12.11 | 5500 | 0.67 | 1.46 | 36 <sup>(C)</sup> |
| **For the year ended December 31, 2023** | 29.04 | 0.44 | 3.52 | 3.96 | (0.46) | (0.74) | (1.20) | 31.80 | 13.66 | 5228 | 0.67 | 1.47 | 22 |
| **For the year ended December 31, 2022** | 35.69 | 0.37 | (5.10) | (4.73) | (0.42) | (1.50) | (1.92) | 29.04 | (13.38) | 5417 | 0.67 | 1.16 | 38 <sup>(C)</sup> |
| **For the year ended December 31, 2021** | 30.57 | 0.34 | 7.46 | 7.80 | (0.31) | (2.37) | (2.68) | 35.69 | 25.75 | 8168 | 0.67 | 0.97 | 22 <sup>(C)</sup> |
| **Class Y** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the year ended December 31, 2025** | $32.33 | 0.46 | 1.40 | 1.86 | (0.21) | (1.87) | (2.08) | $32.11 | 5.74% | $2149 | 0.56% | 1.41% | 45 %<sup>(C)</sup> |
| **For the year ended December 31, 2024** | 31.82 | 0.55 | 3.44 | 3.99 | (0.53) | (2.95) | (3.48) | 32.33 | 12.26 | 2829 | 0.55 | 1.57 | 36 <sup>(C)</sup> |
| **For the year ended December 31, 2023** | 29.06 | 0.48 | 3.52 | 4.00 | (0.50) | (0.74) | (1.24) | 31.82 | 13.78 | 2852 | 0.55 | 1.60 | 22 |
| **For the year ended December 31, 2022** | 35.72 | 0.41 | (5.10) | (4.69) | (0.47) | (1.50) | (1.97) | 29.06 | (13.27) | 2296 | 0.55 | 1.28 | 38 <sup>(C)</sup> |
| **For the year ended December 31, 2021** | 30.59 | 0.38 | 7.47 | 7.85 | (0.35) | (2.37) | (2.72) | 35.72 | 25.89 | 3205 | 0.55 | 1.09 | 22 <sup>(C)</sup> |

---

<sup>(A)</sup> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income per share has been calculated using the average daily shares outstanding during the year.

<sup>(B)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

<sup>(C)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Portfolio turnover does not include redemptions in-kind.

---

| | |
|:---|:---|
| **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** | **63** |

---

**Financial Highlights**<br>

Selected data for a share outstanding throughout the periods indicated

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Select Fund** | Net Asset <br> Value <br> Beginning <br> of Year | Net <br> Investment <br> Income <br> (Loss)<sup>(A)</sup> | Net <br> Realized <br> and <br> Unrealized <br> Gains <br> (Losses) on <br> Investments | Total from <br> Investment <br> Operations | Dividends <br> from Net <br> Investment <br> Income | Distributions <br> from Net <br> Realized <br> Capital <br> Gains | Total <br> Distributions | Net Asset <br> Value End <br> of Year | Total <br> Return | Net Assets <br> End of <br> Year <br> (000's) | Ratio <br> of Total <br> Expenses <br> to Average <br> Net Assets | Ratio of Net <br> Investment <br> Income <br> (Loss) to <br> Average <br> Net Assets | Portfolio <br> Turnover <br> Rate<sup>(B)</sup> |
| **Investor** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the year ended December 31, 2025** | $23.43 | 0.16 | 2.97 | 3.13 | (0.16) | (1.85) | (2.01) | $24.55 | 13.29% | $35749 | 1.17% | 0.65% | 50 %<sup>(C)</sup> |
| **For the year ended December 31, 2024** | 22.11 | 0.14 | 2.74 | 2.88 | (0.14) | (1.42) | (1.56) | 23.43 | 12.79 | 43724 | 1.16 | 0.61 | 44 |
| **For the year ended December 31, 2023** | 17.03 | 0.05 | 5.09 | 5.14 | (0.05) | (0.01) | (0.06) | 22.11 | 30.19 | 31797 | 1.16 | 0.26 | 60 |
| **For the year ended December 31, 2022** | 21.44 | (0.02) | (3.70) | (3.72) |  | (0.69) | (0.69) | 17.03 | (17.44) | 28808 | 1.16 | (0.09) | 78 <sup>(C)</sup> |
| **For the year ended December 31, 2021** | 18.43 | 0.10 | 5.85 | 5.95 | (0.17) | (2.77) | (2.94) | 21.44 | 32.91 | 31064 | 1.16 | 0.44 | 55 |
| **Class I** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the year ended December 31, 2025** | $23.82 | 0.23 | 3.02 | 3.25 | (0.23) | (1.85) | (2.08) | $24.99 | 13.58% | $469376 | 0.88% | 0.95% | 50 %<sup>(C)</sup> |
| **For the year ended December 31, 2024** | 22.44 | 0.22 | 2.78 | 3.00 | (0.20) | (1.42) | (1.62) | 23.82 | 13.13 | 470437 | 0.87 | 0.90 | 44 |
| **For the year ended December 31, 2023** | 17.28 | 0.11 | 5.17 | 5.28 | (0.11) | (0.01) | (0.12) | 22.44 | 30.56 | 389017 | 0.87 | 0.59 | 60 |
| **For the year ended December 31, 2022** | 21.73 | 0.04 | (3.76) | (3.72) | (0.04) | (0.69) | (0.73) | 17.28 | (17.20) | 238051 | 0.87 | 0.21 | 78 <sup>(C)</sup> |
| **For the year ended December 31, 2021** | 18.60 | 0.14 | 5.96 | 6.10 | (0.20) | (2.77) | (2.97) | 21.73 | 33.39 | 232051 | 0.87 | 0.61 | 55 |
| **Class Y** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the year ended December 31, 2025** | $23.95 | 0.26 | 3.04 | 3.30 | (0.26) | (1.85) | (2.11) | $25.14 | 13.72% | $74022 | 0.76% | 1.05% | 50 %<sup>(C)</sup> |
| **For the year ended December 31, 2024** | 22.55 | 0.25 | 2.80 | 3.05 | (0.23) | (1.42) | (1.65) | 23.95 | 13.28 | 66634 | 0.75 | 1.02 | 44 |
| **For the year ended December 31, 2023** | 17.36 | 0.12 | 5.20 | 5.32 | (0.12) | (0.01) | (0.13) | 22.55 | 30.69 | 48858 | 0.75 | 0.66 | 60 |
| **For the year ended December 31, 2022** | 21.82 | 0.05 | (3.76) | (3.71) | (0.06) | (0.69) | (0.75) | 17.36 | (17.10) | 57091 | 0.75 | 0.27 | 78 <sup>(C)</sup> |
| **For the year ended December 31, 2021** | 18.66 | 0.14 | 6.01 | 6.15 | (0.22) | (2.77) | (2.99) | 21.82 | 33.55 | 120283 | 0.75 | 0.64 | 55 |

---

<sup>(A)</sup> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Investment income (loss) per share has been calculated using the average daily shares outstanding during the year.

<sup>(B)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

<sup>(C)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Portfolio turnover does not include redemptions in-kind.

---

| | |
|:---|:---|
| **64** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

---

**Financial Highlights**<br>

Selected data for a share outstanding throughout the periods indicated

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Long-Short Fund** | Net Asset <br> Value <br> Beginning <br> of Year | Net <br> Investment <br> Income <br> (Loss)<sup>(A)</sup> | Net Realized <br> and <br> Unrealized <br> Gains <br> (Losses) on <br> Investments | Total from <br> Investment <br> Operations | Dividends <br> from Net <br> Investment <br> Income | Distributions <br> from Net <br> Realized <br> Capital <br> Gains | Total <br> Distributions | Net Asset <br> Value End <br> of Year | Total <br> Return | Net Assets <br> End of Year <br> (000,000's) | Ratio of <br> Total Net <br> Expenses <br> to Average <br> Net <br> Assets<sup>(B)</sup> | Ratio of <br> Total Gross <br> Expenses <br> to Average <br> Net <br> Assets<sup>(C)</sup> | Ratio of Net <br> Investment <br> Income <br> (Loss) to <br> Average <br> Net Assets | Portfolio <br> Turnover <br> Rate<sup>(D)(E)</sup> |
| **Investor** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the year ended December 31, 2025** | $26.10 | 0.43 | 4.47 | 4.90 | (0.41) | (0.02) | (0.43) | $30.57 | 18.76% | $120 | 1.68% | 1.68% | 1.52% | 67 %<sup>(F)</sup> |
| **For the year ended December 31, 2024** | 25.99 | 0.55 | 2.04 | 2.59 | (0.58) | (1.90) | (2.48) | 26.10 | 9.94 | 116 | 1.75 | 1.75 | 1.96 | 46 |
| **For the year ended December 31, 2023** | 24.12 | 0.47 | 2.44 | 2.91 | (0.53) | (0.51) | (1.04) | 25.99 | 12.12 | 123 | 1.78 | 1.78 | 1.89 | 41 |
| **For the year ended December 31, 2022** | 27.76 | 0.08 | (2.50) | (2.42) | (0.09) | (1.13) | (1.22) | 24.12 | (8.74) | 127 | 1.78 | 1.78 | 0.30 | 61 |
| **For the year ended December 31, 2021** | 25.89 | (0.11) | 4.98 | 4.87 |  | (3.00) | (3.00) | 27.76 | 19.03 | 168 | 1.92 | 1.93 | (0.38) | 33 |
| **Class I** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the year ended December 31, 2025** | $27.14 | 0.53 | 4.66 | 5.19 | (0.50) | (0.02) | (0.52) | $31.81 | 19.10% | $2082 | 1.39% | 1.39% | 1.81% | 67 %<sup>(F)</sup> |
| **For the year ended December 31, 2024** | 26.93 | 0.66 | 2.11 | 2.77 | (0.66) | (1.90) | (2.56) | 27.14 | 10.26 | 1468 | 1.46 | 1.46 | 2.26 | 46 |
| **For the year ended December 31, 2023** | 24.96 | 0.57 | 2.52 | 3.09 | (0.61) | (0.51) | (1.12) | 26.93 | 12.40 | 1544 | 1.49 | 1.49 | 2.18 | 41 |
| **For the year ended December 31, 2022** | 28.68 | 0.17 | (2.59) | (2.42) | (0.17) | (1.13) | (1.30) | 24.96 | (8.45) | 1604 | 1.49 | 1.49 | 0.61 | 61 |
| **For the year ended December 31, 2021** | 26.58 | (0.03) | 5.13 | 5.10 |  | (3.00) | (3.00) | 28.68 | 19.40 | 1792 | 1.63 | 1.64 | (0.08) | 33 |
| **Class Y** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the year ended December 31, 2025** | $27.32 | 0.57 | 4.69 | 5.26 | (0.53) | (0.02) | (0.55) | $32.03 | 19.24% | $142 | 1.27% | 1.27% | 1.93% | 67 %<sup>(F)</sup> |
| **For the year ended December 31, 2024** | 27.10 | 0.69 | 2.13 | 2.82 | (0.70) | (1.90) | (2.60) | 27.32 | 10.38 | 100 | 1.34 | 1.34 | 2.34 | 46 |
| **For the year ended December 31, 2023** | 25.11 | 0.61 | 2.53 | 3.14 | (0.64) | (0.51) | (1.15) | 27.10 | 12.55 | 59 | 1.37 | 1.37 | 2.34 | 41 |
| **For the year ended December 31, 2022** | 28.85 | 0.19 | (2.60) | (2.41) | (0.20) | (1.13) | (1.33) | 25.11 | (8.36) | 22 | 1.37 | 1.37 | 0.68 | 61 |
| **For the year ended December 31, 2021** | 26.69 | 0.02 | 5.14 | 5.16 |  | (3.00) | (3.00) | 28.85 | 19.55 | 37 | 1.51 | 1.52 | 0.08 | 33 |

---

<sup>(A)</sup> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income (loss) per share has been calculated using the average daily shares outstanding during the year.

<sup>(B)</sup> &nbsp;&nbsp;&nbsp;&nbsp;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, 2025. 

<sup>(C)</sup> &nbsp;&nbsp;&nbsp;&nbsp;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 and 2021. 

<sup>(D)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

<sup>(E)</sup> &nbsp;&nbsp;&nbsp;&nbsp;The portfolio turnover rate for 2025, 2024, 2023, 2022 and 2021 would have been 49%<sup>(F),</sup> 34%, 40%, 46% and 30%, respectively, if the absolute value of securities sold short liability was included in the denominator of the calculation. 

<sup>(F)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Portfolio turnover does not include redemptions in-kind.

---

| | |
|:---|:---|
| **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** | **65** |

---

**Financial Highlights**<br>

Selected data for a share outstanding throughout the periods indicated

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **International Fund** | Net Asset <br> Value <br> Beginning <br> of Year | Net <br> Investment <br> Income <sup>(A)</sup> | Net <br> Realized <br> and <br> Unrealized <br> Gains <br> (Losses) on <br> Investments | Total from <br> Investment <br> Operations | Dividends <br> from Net <br> Investment <br> Income | Distributions <br> from Net <br> Realized <br> Capital <br> Gains | Total <br> Distributions | Net Asset <br> Value End <br> of Year | Total <br> Return | Net Assets <br> End of <br> Year <br> (000's) | Ratio <br> of Total <br> Expenses <br> to Average <br> Net Assets | Ratio of Net <br> Investment <br> Income to <br> Average <br> Net Assets | Portfolio <br> Turnover <br> Rate<sup>(B)</sup> |
| **Investor** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the year ended December 31, 2025** | $17.06 | 0.22 | 4.53 | 4.75 | (0.71) | (0.23) | (0.94) | $20.87 | 27.87% | $1214 | 1.15% | 1.15% | 51% |
| **For the year ended December 31, 2024** | 16.68 | 0.22 | 0.37 | 0.59 | (0.21) |  | (0.21) | 17.06 | 3.56 | 1196 | 1.14 | 1.23 | 29 |
| **For the year ended December 31, 2023** | 14.28 | 0.21 | 2.34 | 2.55 | (0.15) |  | (0.15) | 16.68 | 17.88 | 1022 | 1.14 | 1.30 | 21 |
| **For the year ended December 31, 2022** | 16.76 | 0.17 | (2.49) | (2.32) | (0.12) | (0.04) | (0.16) | 14.28 | (13.84) | 267 | 1.15 | 1.13 | 21 |
| **For the year ended December 31, 2021** | 15.48 | 0.38 | 1.52 | 1.90 | (0.15) | (0.47) | (0.62) | 16.76 | 12.43 | 449 | 1.13 | 2.20 | 33 |
| **Class I** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the year ended December 31, 2025** | $17.09 | 0.28 | 4.55 | 4.83 | (0.77) | (0.23) | (1.00) | $20.92 | 28.27% | $108204 | 0.86% | 1.43% | 51% |
| **For the year ended December 31, 2024** | 16.70 | 0.27 | 0.38 | 0.65 | (0.26) |  | (0.26) | 17.09 | 3.92 | 67472 | 0.85 | 1.53 | 29 |
| **For the year ended December 31, 2023** | 14.29 | 0.26 | 2.33 | 2.59 | (0.18) |  | (0.18) | 16.70 | 18.12 | 43664 | 0.85 | 1.64 | 21 |
| **For the year ended December 31, 2022** | 16.79 | 0.20 | (2.46) | (2.26) | (0.20) | (0.04) | (0.24) | 14.29 | (13.51) | 10729 | 0.86 | 1.35 | 21 |
| **For the year ended December 31, 2021** | 15.51 | 0.42 | 1.53 | 1.95 | (0.20) | (0.47) | (0.67) | 16.79 | 12.74 | 9010 | 0.84 | 2.43 | 33 |
| **Class Y** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the year ended December 31, 2025** | $17.12 | 0.33 | 4.53 | 4.86 | (0.78) | (0.23) | (1.01) | $20.97 | 28.44% | $51862 | 0.74% | 1.71% | 51% |
| **For the year ended December 31, 2024** | 16.73 | 0.29 | 0.38 | 0.67 | (0.28) |  | (0.28) | 17.12 | 4.03 | 72744 | 0.73 | 1.64 | 29 |
| **For the year ended December 31, 2023** | 14.30 | 0.29 | 2.33 | 2.62 | (0.19) |  | (0.19) | 16.73 | 18.30 | 64543 | 0.73 | 1.81 | 21 |
| **For the year ended December 31, 2022** | 16.80 | 0.22 | (2.47) | (2.25) | (0.21) | (0.04) | (0.25) | 14.30 | (13.41) | 40603 | 0.74 | 1.48 | 21 |
| **For the year ended December 31, 2021** | 15.51 | 0.47 | 1.51 | 1.98 | (0.22) | (0.47) | (0.69) | 16.80 | 12.88 | 46129 | 0.72 | 2.74 | 33 |

---

<sup>(A)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Net investment income per share has been calculated using the average daily shares outstanding during the period.

<sup>(B)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

---

| | |
|:---|:---|
| **66** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

---

**Financial Highlights**<br>

Selected data for a share outstanding throughout the periods indicated

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Short Duration Securitized Bond Fund** | Net Asset <br> Value <br> Beginning <br> of Year | Net <br> Investment <br> Income<sup>(A)</sup> | Net <br> Realized <br> and <br> Unrealized <br> Gains <br> (Losses) on <br> Investments | Total from <br> Investment <br> Operations | Dividends <br> from Net <br> Investment <br> Income | Distributions <br> from Net <br> Realized <br> Capital <br> Gains | Total <br> Distributions | Net Asset <br> Value End <br> of Year | Total <br> Return | Net Assets <br> End of Year <br> (000,000's) | Ratio <br> of Total <br> Expenses <br> to Average <br> Net Assets | Ratio <br> of Net <br> Investment <br> Income to <br> Average <br> Net Assets | Portfolio <br> Turnover <br> Rate<sup>(B)</sup> |
| **Investor** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the year ended December 31, 2025** | $9.95 | 0.57 | 0.04 | 0.61 | (0.58) |  | (0.58) | $9.98 | 6.22% | $104 | 0.81% | 5.69% | 37% |
| **For the year ended December 31, 2024** | 9.68 | 0.60 | 0.26 | 0.86 | (0.59) |  | (0.59) | 9.95 | 9.14 | 55 | 0.81 | 6.09 | 49 |
| **For the year ended December 31, 2023** | 9.42 | 0.51 | 0.26 | 0.77 | (0.51) |  | (0.51) | 9.68 | 8.38 | 25 | 0.81 | 5.32 | 38 |
| **For the year ended December 31, 2022** | 10.10 | 0.31 | (0.67) | (0.36) | (0.32) |  | (0.32) | 9.42 | (3.57) | 29 | 0.81 | 3.23 | 41 |
| **For the year ended December 31, 2021** | 10.09 | 0.23 | 0.01 | 0.24 | (0.23) | (0.00)<sup>(C)</sup> | (0.23) | 10.10 | 2.42 | 40 | 0.81 | 2.26 | 48 |
| **Class I** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the year ended December 31, 2025** | $9.95 | 0.60 | 0.04 | 0.64 | (0.60) |  | (0.60) | $9.99 | 6.60% | $4511 | 0.52% | 5.98% | 37% |
| **For the year ended December 31, 2024** | 9.69 | 0.63 | 0.25 | 0.88 | (0.62) |  | (0.62) | 9.95 | 9.33 | 3274 | 0.52 | 6.38 | 49 |
| **For the year ended December 31, 2023** | 9.41 | 0.54 | 0.28 | 0.82 | (0.54) |  | (0.54) | 9.69 | 8.91 | 1541 | 0.52 | 5.63 | 38 |
| **For the year ended December 31, 2022** | 10.10 | 0.34 | (0.68) | (0.34) | (0.35) |  | (0.35) | 9.41 | (3.38) | 1054 | 0.52 | 3.55 | 41 |
| **For the year ended December 31, 2021** | 10.09 | 0.25 | 0.02 | 0.27 | (0.26) | (0.00)<sup>(C)</sup> | (0.26) | 10.10 | 2.74 | 1314 | 0.52 | 2.50 | 48 |
| **Class Y** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the year ended December 31, 2025** | $9.97 | 0.62 | 0.02 | 0.64 | (0.61) |  | (0.61) | $10.00 | 6.62% | $251 | 0.40% | 6.08% | 37% |
| **For the year ended December 31, 2024** | 9.70 | 0.64 | 0.26 | 0.90 | (0.63) |  | (0.63) | 9.97 | 9.56 | 113 | 0.40 | 6.50 | 49 |
| **For the year ended December 31, 2023** | 9.42 | 0.55 | 0.28 | 0.83 | (0.55) |  | (0.55) | 9.70 | 9.03 | 48 | 0.40 | 5.68 | 38 |
| **For the year ended December 31, 2022** | 10.11 | 0.34 | (0.67) | (0.33) | (0.36) |  | (0.36) | 9.42 | (3.27) | 65 | 0.40 | 3.54 | 41 |
| **For the year ended December 31, 2021** | 10.10 | 0.27 | 0.01 | 0.28 | (0.27) | (0.00)<sup>(C)</sup> | (0.27) | 10.11 | 2.85 | 145 | 0.40 | 2.68 | 48 |

---

<sup>(A)</sup> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income per share has been calculated using the average daily shares outstanding during the year.

<sup>(B)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

<sup>(C)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Amount is less than $0.005. 

---

| | |
|:---|:---|
| **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** | **67** |

---

**Financial Highlights**<br>

Selected data for a share outstanding throughout the period indicated

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Securitized Total Return Fund<sup>(A)</sup>** | Net Asset <br> Value <br> Beginning <br> of Period | Net <br> Investment <br> Income<sup>(B)</sup> | Net <br> Realized <br> and <br> Unrealized <br> Gains on <br> Investments | Total from <br> Investment <br> Operations | Dividends <br> from Net <br> Investment <br> Income | Distributions <br> from Net <br> Realized <br> Capital <br> Gains | Total <br> Distributions | Net Asset <br> Value End <br> of Period | Total <br> Return | Net Assets <br> at End of <br> Period <br> (000's) | Ratio <br> of Total <br> Expenses <br> to Average <br> Net Assets | Ratio of Net <br> Investment <br> Income to <br> Average <br> Net Assets | Portfolio <br> Turnover <br> Rate<sup>(C)</sup> |
| **Investor** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the period ended December 31, 2025** | $10.00 | 0.21 | 0.27 | 0.48 | (0.20) |  | (0.20) | $10.28 | 4.86 %<sup>(D)</sup> | $16 | 1.16 %<sup>(E)</sup> | 4.14 %<sup>(E)</sup> | 12 %<sup>(D)</sup> |
| **Class I** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the period ended December 31, 2025** | $10.00 | 0.23 | 0.27 | 0.50 | (0.22) |  | (0.22) | $10.28 | 5.03 %<sup>(D)</sup> | $21 | 0.87 %<sup>(E)</sup> | 4.44 %<sup>(E)</sup> | 12 %<sup>(D)</sup> |
| **Class Y** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the period ended December 31, 2025** | $10.00 | 0.23 | 0.28 | 0.51 | (0.23) |  | (0.23) | $10.28 | 5.08 %<sup>(D)</sup> | $31195 | 0.75 %<sup>(E)</sup> | 4.57 %<sup>(E)</sup> | 12 %<sup>(D)</sup> |

---

<sup>(A)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Inception date of the Fund is June 30, 2025. Fund commenced public offering on July 1, 2025.

<sup>(B)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Net investment income per share has been calculated using the average daily shares outstanding during the period.

<sup>(C)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

<sup>(D)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Not annualized.

<sup>(E)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Annualized.

---

| | |
|:---|:---|
| **68** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

---

**Financial Highlights**<br>

Selected data for a share outstanding throughout the periods indicated

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Core Bond Fund** | Net Asset <br> Value <br> Beginning <br> of Year | Net <br> Investment <br> Income<sup>(A)</sup> | Net <br> Realized <br> and <br> Unrealized <br> Gains <br> (Losses) on <br> Investments | Total from <br> Investment <br> Operations | Dividends <br> from Net <br> Investment <br> Income | Distributions <br> from Net <br> Realized <br> Capital <br> Gains | Total <br> Distributions | Net Asset <br> Value End <br> of Year | Total <br> Return | Net Assets <br> at End <br> of Year <br> (000's) | Ratio <br> of Total <br> Expenses <br> to Average <br> Net Assets | Ratio of Net <br> Investment <br> Income to <br> Average <br> Net Assets | Portfolio <br> Turnover <br> Rate<sup>(B)</sup> |
| **Investor** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the year ended December 31, 2025** | $8.95 | 0.42 | 0.19 | 0.61 | (0.40) |  | (0.40) | $9.16 | 6.95% | $5075 | 0.76% | 4.55% | 18% |
| **For the year ended December 31, 2024** | 9.09 | 0.42 | (0.14) | 0.28 | (0.42) |  | (0.42) | 8.95 | 3.17 | 4525 | 0.76 | 4.70 | 24 |
| **For the year ended December 31, 2023** | 8.92 | 0.38 | 0.16 | 0.54 | (0.37) |  | (0.37) | 9.09 | 6.20 | 1910 | 0.76 | 4.25 | 20 |
| **For the year ended December 31, 2022** | 10.40 | 0.22 | (1.46) | (1.24) | (0.24) |  | (0.24) | 8.92 | (12.05) | 3572 | 0.76 | 2.36 | 40 |
| **For the year ended December 31, 2021** | 10.74 | 0.19 | (0.32) | (0.13) | (0.21) |  | (0.21) | 10.40 | (1.24) | 10091 | 0.76 | 1.78 | 37 |
| **Class I** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the year ended December 31, 2025** | $8.92 | 0.44 | 0.19 | 0.63 | (0.44) |  | (0.44) | $9.11 | 7.16% | $2400558 | 0.47% | 4.83% | 18% |
| **For the year ended December 31, 2024** | 9.07 | 0.45 | (0.15) | 0.30 | (0.45) |  | (0.45) | 8.92 | 3.40 | 1727776 | 0.47 | 5.00 | 24 |
| **For the year ended December 31, 2023** | 8.90 | 0.41 | 0.16 | 0.57 | (0.40) |  | (0.40) | 9.07 | 6.62 | 1369268 | 0.47 | 4.64 | 20 |
| **For the year ended December 31, 2022** | 10.39 | 0.27 | (1.49) | (1.22) | (0.27) |  | (0.27) | 8.90 | (11.84) | 526372 | 0.47 | 2.93 | 40 |
| **For the year ended December 31, 2021** | 10.74 | 0.22 | (0.33) | (0.11) | (0.24) |  | (0.24) | 10.39 | (0.99) | 330666 | 0.47 | 2.08 | 37 |
| **Class Y** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the year ended December 31, 2025** | $8.92 | 0.45 | 0.20 | 0.65 | (0.45) |  | (0.45) | $9.12 | 7.39% | $673122 | 0.35% | 4.92% | 18% |
| **For the year ended December 31, 2024** | 9.07 | 0.46 | (0.15) | 0.31 | (0.46) |  | (0.46) | 8.92 | 3.53 | 272146 | 0.35 | 5.12 | 24 |
| **For the year ended December 31, 2023** | 8.91 | 0.42 | 0.15 | 0.57 | (0.41) |  | (0.41) | 9.07 | 6.62 | 147956 | 0.35 | 4.77 | 20 |
| **For the year ended December 31, 2022** | 10.39 | 0.28 | (1.48) | (1.20) | (0.28) |  | (0.28) | 8.91 | (11.63) | 58932 | 0.35 | 2.94 | 40 |
| **For the year ended December 31, 2021** | 10.75 | 0.23 | (0.33) | (0.10) | (0.26) |  | (0.26) | 10.39 | (0.95) | 58668 | 0.35 | 2.21 | 37 |

---

<sup>(A)</sup> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income per share has been calculated using the average daily shares outstanding during the year.

<sup>(B)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

---

| | |
|:---|:---|
| **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** | **69** |

---

**Financial Highlights**<br>

Selected data for a share outstanding throughout the period indicated

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Core Plus Bond Fund<sup>(A)</sup>** | Net Asset <br> Value <br> Beginning <br> of Period | Net <br> Investment <br> Income<sup>(B)</sup> | Net <br> Realized <br> and <br> Unrealized <br> Gains <br> (Losses) on <br> Investments | Total from <br> Investment <br> Operations | Dividends <br> from Net <br> Investment <br> Income | Distributions <br> from Net <br> Realized <br> Capital <br> Gains | Total <br> Distributions | Net Asset <br> Value End <br> of Period | Total <br> Return | Net Assets <br> at End of <br> Period <br> (000's) | Ratio <br> of Total <br> Expenses <br> to Average <br> Net Assets | Ratio of Net <br> Investment <br> Income to <br> Average <br> Net Assets | Portfolio <br> Turnover <br>Rate<sup>(C)</sup> |
| **Investor** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the year ended December 31, 2025** | $9.85 | 0.46 | 0.29 | 0.75 | (0.43) |  | (0.43) | $10.17 | 7.77% | $25 | 0.86% | 4.49% | 50% |
| **For the period ended December 31, 2024** | 10.00 | 0.08 | (0.15) | (0.07) | (0.08) |  | (0.08) | 9.85 | (0.69)<sup>(D)</sup> | 21 | 0.86 <sup>(E)</sup> | 4.05 <sup>(E)</sup> | 13 <sup>(D)</sup> |
| **Class I** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the year ended December 31, 2025** | $9.85 | 0.48 | 0.30 | 0.78 | (0.47) |  | (0.47) | $10.16 | 8.03% | $57416 | 0.57% | 4.71% | 50% |
| **For the period ended December 31, 2024** | 10.00 | 0.09 | (0.15) | (0.06) | (0.09) |  | (0.09) | 9.85 | (0.62)<sup>(D)</sup> | 244 | 0.57 <sup>(E)</sup> | 4.36 <sup>(E)</sup> | 13 <sup>(D)</sup> |
| **Class Y** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **For the year ended December 31, 2025** | $9.85 | 0.50 | 0.30 | 0.80 | (0.48) |  | (0.48) | $10.17 | 8.25% | $39772 | 0.45% | 4.89% | 50% |
| **For the period ended December 31, 2024** | 10.00 | 0.09 | (0.15) | (0.06) | (0.09) |  | (0.09) | 9.85 | (0.61)<sup>(D)</sup> | 35400 | 0.45 <sup>(E)</sup> | 4.50 <sup>(E)</sup> | 13 <sup>(D)</sup> |

---

<sup>(A)</sup> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inception date and public offering date of the Fund is October 15, 2024.

<sup>(B)</sup> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income per share has been calculated using the average daily shares outstanding during the period.

<sup>(C)</sup> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

<sup>(D)</sup> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not annualized.

<sup>(E)</sup> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Annualized.

---

| | |
|:---|:---|
| **70** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

---

![](diamondhill_24.jpg)

---

| | |
|:---|:---|
| **Investment Adviser** <br> Diamond Hill Capital Management, Inc. <br> 325 John H. McConnell Boulevard, Suite 200 <br> Columbus, Ohio 43215 <br>**Custodian** <br> State Street Bank and Trust Company <br> One Congress Street, Suite 1<br> Boston, MA 02114 <br>**Independent Registered Public Accounting Firm** <br> Cohen & Company, Ltd.<br> 1350 Euclid Ave., Suite 800<br> Cleveland, Ohio 44115 <br>**Legal Counsel** <br> Thompson Hine LLP <br> 41 South High Street, Suite 1700 <br> Columbus, Ohio 43215-6101 <br>**Distributor** <br> Foreside Financial Services, LLC <br> 190 Middle Street, Suite 301 <br> Portland, ME 04101 <br>**For Additional Information, call** <br> Diamond Hill Funds <br> Toll Free 888-226-5595  | **To Learn More** <br>Several additional sources of information are available to you. The SAI, incorporated into this prospectus by reference, contains detailed information on the Funds' policies and operations. Additional information about the Funds' investments is available in the Funds' annual and semi-annual reports to shareholders and in Form N-CSR. In the Funds' annual reports, you will find a discussion of investment strategies that significantly affected each Fund's performance during its last fiscal year. In Form N-CSR, you will find the Funds' annual and semi-annual financial statements. <br>Call the Funds at 888-226-5595 between the hours of 8:00 a.m. and 6:00 p.m. Eastern Time on days the Funds are open for business to request free copies of the financial statements, the SAI, the Funds' annual and semi-annual reports, to request other information about the Funds and to make shareholder inquiries. On days when the NYSE closes early, the call center hours will be reduced accordingly. <br>The Funds' financial statements and additional information, the SAI, and the annual and semi-annual reports to shareholders are also available, free of charge, on the Funds' Internet site at www.diamond-hill.com/documents. <br>You may obtain reports and other information about the Funds on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov. <br>Investment Company Act #811-08061 <br>STATPRO 022826 |

---

![](diamondhill_25.jpg)

**Statement of Additional Information**

**February 28, 2026**

**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 International Fund**

**Diamond Hill Short Duration Securitized Bond Fund**

**Diamond Hill Securitized Total Return Fund**

**Diamond Hill Core Bond Fund** 

**Diamond Hill Core Plus Bond Fund**

**(Each a Fund or Series of Diamond Hill Funds)**

This Statement of Additional Information ("SAI") is not a prospectus. It should be read in conjunction with the Prospectus dated February 28, 2026. This SAI incorporates by reference the Funds' financial statements and additional information and the annual reports to shareholders for the fiscal year ended December 31, 2025. A free copy of the Prospectus or the annual reports can be obtained by writing the Transfer Agent at P.O. Box 46707, Cincinnati, OH 45246 or by calling 888-226-5595. You may also obtain a copy of the Prospectus, the financial statements and additional information or annual reports by visiting www.diamond-hill.com/documents.

---

| | | | |
|:---|:---|:---|:---|
|  | **Investor** | **Class I** | **Class Y** |
| **Diamond Hill Small Cap Fund** | **DHSCX** | **DHSIX** | **DHSYX** |
| **Diamond Hill Small-Mid Cap Fund** | **DHMAX** | **DHMIX** | **DHMYX** |
| **Diamond Hill Mid Cap Fund** | **DHPAX** | **DHPIX** | **DHPYX** |
| **Diamond Hill Large Cap Fund** | **DHLAX** | **DHLRX** | **DHLYX** |
| **Diamond Hill Select Fund** | **DHTAX** | **DHLTX** | **DHTYX** |
| **Diamond Hill Long-Short Fund** | **DIAMX** | **DHLSX** | **DIAYX** |
| **Diamond Hill International Fund** | **DHIAX** | **DHIIX** | **DHIYX** |
| **Diamond Hill Short Duration Securitized Bond Fund** | **DHEAX** | **DHEIX** | **DHEYX** |
| **Diamond Hill Securitized Total Return Fund** | **DHWAX** | **DHWIX** | **DHWYX** |
| **Diamond Hill Core Bond Fund** | **DHRAX** | **DHRIX** | **DHRYX** |
| **Diamond Hill Core Plus Bond Fund** | **DHNAX** | **DHNIX** | **DHNYX** |

---

![](fp0095533-8_01.jpg)

**<u>**TABLE OF CONTENTS**</u>**

---

| | |
|:---|:---|
|  | **PAGE** |
| **DESCRIPTION OF THE TRUST** | [**3**](#SAI_1) |
| **ADDITIONAL INFORMATION ABOUT FUND INVESTMENTS AND RISK CONSIDERATIONS** | [**4**](#SAI_2) |
| **INVESTMENT LIMITATIONS** | [**52**](#SAI_3) |
| **SHARES OF THE FUNDS** | [**54**](#SAI_4) |
| **THE INVESTMENT ADVISER** | [**56**](#SAI_5) |
| **TRUSTEES AND OFFICERS** | [**63**](#SAI_6) |
| **OTHER INFORMATION CONCERNING THE BOARD OF TRUSTEES** | [**67**](#SAI_7) |
| **PORTFOLIO TRANSACTIONS AND BROKERAGE** | [**69**](#SAI_8) |
| **DISTRIBUTION PLAN** | [**73**](#SAI_9) |
| **DETERMINATION OF SHARE PRICE** | [**75**](#SAI_10) |
| **TAXES** | [**76**](#SAI_11) |
| **CUSTODIAN** | [**79**](#SAI_12) |
| **SUB-FUND ACCOUNTING AGENT AND SUB-TRANSFER AGENT** | [**79**](#SAI_13) |
| **INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** | [**79**](#SAI_14) |
| **DISTRIBUTOR** | [**79**](#SAI_15) |
| **SECURITIES LENDING AGENT** | [**80**](#SAI_16) |
| **PRINCIPAL HOLDERS OF OUTSTANDING SHARES** | [**81**](#SAI_17) |
| **FINANCIAL STATEMENTS** | [**89**](#SAI_18) |

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**DESCRIPTION OF THE TRUST**

Diamond Hill Funds (the "Trust") currently offers twelve series of shares, 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 ETF, 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 Securitized Bond Fund"), Diamond Hill Securitized Total Return Fund ("Securitized Total Return Fund"), Diamond Hill Core Bond Fund ("Core Bond Fund") and Diamond Hill Core Plus Bond Fund ("Core Plus Bond Fund") (each, a "Diamond Hill Fund," and together, the "Diamond Hill Funds"). The Trust is an open-end investment company of the management type registered under the Investment Company Act of 1940, as amended (the "Company Act"), and was established under the laws of Ohio by a Fourth Amended and Restated Agreement and Declaration of Trust dated May 22, 2025 ("Trust Agreement"), as amended. The Trust Agreement permits the trustees ("Trustees") of the Trust's Board of Trustees ("Board") to issue an unlimited number of shares of beneficial interest of separate series without par value (the "Shares"). This SAI relates only to the Small Cap Fund, Small-Mid Cap Fund, Mid Cap Fund, Large Cap Fund, Select Fund, Long-Short Fund, International Fund, Short Duration Securitized Bond Fund, Securitized Total Return Fund, Core Bond Fund and Core Plus Bond Fund (each, a "Fund" and together, the "Funds"). Each of the Funds is diversified, as defined in the Company Act, with the exception of the Select Fund. The Select Fund is "non-diversified" as defined in the Company Act, which means it can invest a greater percentage of its assets in any one issuer than a diversified fund.

On September 30, 2020, the Diamond Hill Short Duration Total Return Fund changed its name to the Diamond Hill Short Duration Securitized Bond Fund.

On February 28, 2021, the Class A shares changed their name to Investor shares.

On February 28, 2023, the Diamond Hill All Cap Select Fund changed its name to the Diamond Hill Select Fund.

On September 26, 2025, the Diamond Hill Large Cap Concentrated Fund reorganized into the Diamond Hill Large Cap Concentrated ETF, an exchange-traded fund ("ETF").

Each Share of a Diamond Hill Fund represents an equal proportionate interest in the assets and liabilities belonging to that Diamond Hill Fund with each other Share of that Diamond Hill Fund and is entitled to such dividends and distributions out of income belonging to the Diamond Hill Fund as are declared by the Trustees. The Shares do not have cumulative voting rights or any preemptive or conversion rights, and the Trustees have the authority from time to time to divide or combine the Shares of any Diamond Hill Fund into a greater or lesser number of Shares of that Diamond Hill Fund so long as the proportionate beneficial interest in the assets belonging to that Diamond Hill Fund and the rights of Shares of any other Diamond Hill Fund are in no way affected. In case of any liquidation of a Diamond Hill Fund, the holders of Shares of the Diamond Hill Fund being liquidated will be entitled to receive as a class a distribution out of the assets, net of the liabilities, belonging to that Diamond Hill Fund. Expenses attributable to any Diamond Hill Fund are borne by that Diamond Hill Fund. Any general expenses of the Trust not readily identifiable as belonging to a particular Diamond Hill Fund are allocated by, or under the direction of, the Trustees in such manner as the Trustees determine to be fair and equitable. No shareholder is liable for further calls or assessments by the Trust without their consent.

Any Trustee may be removed by vote of the shareholders holding not less than two-thirds of the outstanding Shares of the Trust. The Trust does not hold an annual meeting of shareholders. When matters are submitted to shareholders for a vote, each shareholder is entitled to one vote for each whole Share they own and fractional votes for fractional Shares they own. All Shares of a Diamond Hill Fund have equal voting rights and liquidation rights. The Trust Agreement can be amended by the Trustees, except that any amendment that adversely affects the rights of shareholders must be approved by the shareholders affected. Each Share of a Diamond Hill Fund is subject to redemption at any time if the Board determines in its sole discretion that failure to so redeem may have materially adverse consequences to all or any of a Diamond Hill Fund's shareholders.

The other expenses applicable to the different classes of a Diamond Hill Fund's Shares may affect the performance of those classes. Broker/dealers and others entitled to receive compensation for selling or servicing a Diamond Hill Fund's Shares may receive more with respect to one class than another. The Board does not anticipate that there will be any conflicts among the interests of the holders of the different classes of a Diamond Hill Fund's Shares. On an ongoing basis, the Board will consider whether any such conflict exists and, if so, take appropriate action.

**ADDITIONAL INFORMATION ABOUT FUND INVESTMENTS AND RISK CONSIDERATIONS**

Investment Practices

This section contains additional information regarding some of the investments the Funds can make and some of the techniques they may use, as well as related risks.

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| | |
|:---|:---|
| **Fund Name** | **Fund Code** |
| Diamond Hill Small Cap Fund | SC |
| Diamond Hill Small-Mid Cap Fund | SMID |
| Diamond Hill Mid Cap Fund | MC |
| Diamond Hill Large Cap Fund | LC |
| Diamond Hill Select Fund | SL |
| Diamond Hill Long-Short Fund | LS |
| Diamond Hill International Fund | IN |
| Diamond Hill Short Duration Securitized Bond Fund | SDSB |
| Diamond Hill Securitized Total Return Fund | STR |
| Diamond Hill Core Bond Fund | CB |
| Diamond Hill Core Plus Bond Fund | CPB |

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| | | |
|:---|:---|:---|
| **Instrument** | **Funds** | **Section** |
| *Adjustable Rate Mortgage Loans ("ARMs"):* Loans in a mortgage pool which provide for a fixed initial mortgage interest rate for a specified period of time, after which the rate may be subject to periodic adjustments. Risk Type: Credit, Interest Rate, Liquidity, Market, Political, Prepayment, Valuation | SDSB, STR, CB, CPB | Mortgage-Related Securities |
| *Asset-Backed Securities ("ABS"):* Securities secured by company receivables, home equity loans, truck and auto loans, leases and credit card receivables or other securities backed by other types of receivables or other assets. Risk Type: Consumer Loans, Credit, Interest Rate, Liquidity, Market, Political, Prepayment, Valuation | SDSB, STR, CB, CPB | Asset-Backed Securities |
| *Auction Rate Securities:* Auction rate municipal securities ("Municipal Securities") and auction rate preferred securities issued by closed-end investment companies. Risk Type: Credit, Interest Rate, Liquidity, Market | SDSB, STR, CB, CPB | Auction Rate Securities |
| *Bank Obligations:* Bankers' acceptances, certificates of deposit and time deposits. Bankers' acceptances are bills of exchange or time drafts drawn on and accepted by a commercial bank. Maturities are generally six months or less. Certificates of deposit are negotiable certificates issued by a bank for a specified period of time and earning a specified return. Time deposits are non-negotiable receipts issued by a bank in exchange for the deposit of funds. Risk Type: Credit, Currency, Interest Rate, Liquidity, Market, Political | SDSB, STR, CB, CPB | Bank Obligations |

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| | | |
|:---|:---|:---|
| **Instrument** | **Funds** | **Section** |
| *Borrowings:* A Fund may borrow for temporary purposes and/or for investment purposes. Such a practice will result in leveraging of the Fund's assets and may cause a Fund to liquidate portfolio positions when it would not be advantageous to do so. A Fund must maintain continuous asset coverage of 300% of the amount borrowed, with the exception for borrowings not in excess of 5% of a Fund's total assets made for temporary administrative purposes. Risk Type: Credit, Interest Rate, Market | All Funds | Borrowings |
| *Brady Bonds:* Securities created through the exchange of existing commercial bank loans to public and private entities in certain emerging markets for new bonds in connection with debt restructurings. Risk Type: Credit, Interest Rate, Non-U.S. Investment, Market, Political | SDSB, STR, CB, CPB | Non-U.S. Investments |
| *Call and Put Options:* A call option gives the buyer the right to buy, and obligates the seller of the option to sell a security at a specified price at a future date. A put option gives the buyer the right to sell, and obligates the seller of the option to buy a security at a specified price at a future date. A Fund will sell only covered call and secured put options. Risk Type: Credit, Leverage, Liquidity, Management, Market | All Funds | Options and Futures Transactions |
| *Commercial Paper:* Secured and unsecured short-term promissory notes issued by corporations and other entities. Maturities generally vary from a few days to nine months. Risk Type: Credit, Interest Rate, Liquidity, Market, Political, Valuation | SDSB, STR, CB, CPB | Commercial Paper |
| *Convertible Securities:* Bonds or preferred stock that can convert to common stock including contingent convertible securities. Risk Type: Credit, Convertible, Currency, Interest Rate, Liquidity, Market, Political, Valuation | SDSB, STR, CB, CPB | Fixed Income Securities |
| *Corporate Debt Securities:* Bonds and other debt securities of U.S. and non-U.S. issuers, including obligations of industrial, utility, banking and other corporate issuers. Risk Type: Credit, Currency, Interest Rate, Liquidity, Market, Political, Prepayment, Valuation | All Funds | Fixed Income Securities |
| *Credit Default Swaps ("CDS")*: A swap agreement between two parties pursuant to which one party pays the other a fixed periodic coupon for the specified life of the agreement. The other party makes no payment unless a credit event, relating to a predetermined reference asset, occurs. If such an event occurs, the party will then make a payment to the first party, and the swap will terminate. Risk Type: Credit, Currency, Interest Rate, Leverage, Liquidity, Management, Market, Political, Valuation | SDSB, STR, CB, CPB | Swaps and Related Swap Products |

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| | | |
|:---|:---|:---|
| **Instrument** | **Funds** | **Section** |
| *Custodial Receipts:* A receipt or other document typically from a custodian that evidences ownership of future interest payments, principal payments or both on certain U.S. Department of the Treasury ("U.S. Treasury") notes or bonds in connection with programs sponsored by banks and brokerage firms. These securities are not considered to be U.S. government securities. These notes and bonds are held in custody by a bank on behalf of the owners of the receipts. Risk Type: Credit, Liquidity, Market | SDSB, STR, CB, CPB | Custodial Receipts |
| *Demand Features:* Securities that are subject to puts and standby commitments to purchase the securities at a fixed price (usually with accrued interest) within a fixed period of time following demand by a Fund. Risk Type: Liquidity, Management, Market | SDSB, STR, CB, CPB | Demand Features |
| *Emerging Market Securities:* Securities issued by issuers or governments in countries with emerging economies or securities markets which may be undergoing significant evolution and rapid developments. Risk Type: Non-U.S. Investment, Currency | IN, SDSB, STR, CB, CPB | Non-U.S. Investments |
| *Exchange-Traded Funds ("ETFs"):* Ownership interest in unit investment trusts, depositary receipts, and other pooled investment vehicles that hold a portfolio of securities or stocks designed to track the price performance and dividend yield of a particular broad-based, sector or international index. ETFs include a wide range of investments such as iShares, S&P Depositary Receipts ("SPDRs") and NASDAQ 100s. Risk Type: Investment Company, Market | All Funds | Investment Company Securities |
| *High Yield/High Risk Securities/Junk Bonds:* Securities that are generally rated below investment grade by the primary rating agencies or are unrated but are deemed by Diamond Hill Capital Management, Inc. (the "Adviser") to be of comparable quality. High yield, high risk securities (also known as junk bonds) which are considered to be speculative. Risk Type: Credit, Interest Rate, High Yield Securities, Liquidity, Market, Political, Portfolio Quality, Valuation | SDSB, STR, CB, CPB | Fixed Income Securities |
| *Illiquid Securities:* An investment that cannot be disposed of within seven days in the normal course of business at approximately the amount at which it is valued by a Fund. Securities may be illiquid due to contractual or legal restrictions on resale or lack of a ready market. Risk Type: Liquidity, Market | All Funds | Private Placements, Restricted Securities and Other Unregistered Securities |
| *Inflation-Linked Debt Securities:* Includes fixed and floating rate debt securities of varying maturities issued by the U.S. government as well as securities issued by other entities such as corporations, non-U.S. governments and non-U.S. issuers. Risk Type: Credit, Currency, Interest Rate, Political | SDSB, STR, CB, CPB | Fixed Income Securities |

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| | | |
|:---|:---|:---|
| **Instrument** | **Funds** | **Section** |
| *Inverse Floating Rate Instruments:* Leveraged variable debt instruments with interest rates that reset in the opposite direction from the market rate of interest to which the inverse floater is indexed. Risk Type: Credit, Leverage, Market | SDSB, STR, CB, CPB | Inverse Floaters and Interest Rate Caps |
| *Investment Company Securities:* Shares of other investment companies. The Adviser may waive certain fees to the extent required by law. Risk Type: Investment Company, Market | All Funds | Investment Company Securities |
| *Loans:* Fixed and floating rate instruments, including senior floating rate loans ("Senior Loans") and secured and unsecured loans, second lien or more junior loans ("Junior Loans"), and bridge loans or bridge facilities ("Bridge Loans"). Risk Type: Credit, Extension, Interest Rate, Non-U.S. Investment, Liquidity, Market, Political, Prepayment | SDSB, STR, CB, CPB | Loans |
| *Loan Assignments ("Assignments") and Loan Participations ("Participations"):* Assignments of, or Participations in, all or a portion of loans to corporations or to governments, including governments of less developed countries. Risk Type: Credit, Extension, Interest Rate, Non-U.S. Investment, Liquidity, Market, Political, Prepayment | SDSB, STR, CB, CPB | Loans |
| *Master Limited Partnerships ("MLPs"):* Passive investment vehicles in which 80% to 90% of operating profits and losses are usually passed through the ownership structure to the limited partners. Risk Type: Interest Rate, Tax | All Funds | Master Limited Partnerships |
| *Mortgages (Directly Held):* Debt instruments secured by real property. Risk Type: Credit, Environmental, Extension, Interest Rate, Liquidity, Market, Natural Event, Political, Prepayment, Valuation | SDSB, STR, CB, CPB | Mortgage-Related Securities |
| *Mortgage-Backed Securities ("MBS"):* Debt obligations secured by real estate loans and pools of loans such as collateralized mortgage obligations ("CMOs"), commercial MBS ("CMBS") and other asset-backed structures. Risk Type: Credit, Extension, Interest Rate, Leverage, Liquidity, Market, Political, Prepayment, Tax, Valuation | SDSB, STR, CB, CPB | Mortgage-Related Securities |
| *Mortgage Dollar Rolls:* A transaction in which a Fund sells securities for delivery in a current month and simultaneously contracts with the same party to repurchase similar but not identical securities on a specified future date. Risk Type: Extension, Interest Rate, Leverage, Liquidity, Market, Political, Prepayment | SDSB, STR, CB, CPB | Mortgage-Related Securities |
| *Municipal Securities:* Securities issued by a state or political subdivision to obtain funds for various public purposes. Municipal Securities include, among others, private activity bonds and industrial development bonds, as well as general obligation notes, tax anticipation notes, bond anticipation notes, revenue anticipation notes, other short-term tax-exempt obligations, municipal leases, obligations of municipal housing authorities and single family revenue bonds. Risk Type: Credit, Interest Rate, Market, Natural Event, Political, Prepayment, Tax | SDSB, STR, CB, CPB | Municipal Securities |

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| | | |
|:---|:---|:---|
| **Instrument** | **Funds** | **Section** |
| *New Financial Products:* New investment options and financial products continue to be developed and a Fund may invest in such options and products. Risk Type: Credit, Liquidity, Management, Market | SDSB, STR, CB, CPB | New Financial Products |
| *Non-U.S. Investments:* Equity and debt securities (*e.g.*, bonds and commercial paper) of non-U.S. entities and obligations of non-U.S. branches of U.S. banks and non-U.S. banks. Non-U.S. securities also include American Depositary Receipts ("ADRs"), Global Depositary Receipts, European Depositary Receipts ("EDRs"), and American Depositary Securities. Risk Type: Non-U.S. Investment, Currency, Liquidity, Market, Political, Prepayment | All Funds | Non-U.S. Investments |
| *Obligations of Supranational Agencies:* Obligations of agencies which are chartered to promote economic development and are supported by various governments and governmental agencies. Risk Type: Credit, Non-U.S. Investment, Liquidity, Political, Valuation | SDSB, STR, CB, CPB | Non-U.S. Investments |
| *Options Transactions:* Securities that include exchange traded and over-the-counter ("OTC") put and call options on securities, indexes of securities and interest rate swaps. Risk Type: Credit, Leverage, Liquidity, Management, Market | All Funds | Options and Futures Transactions |
| *Private Placements, Restricted Securities and Other Unregistered Securities:* Securities not registered under the Securities Act of 1933, as amended (the "Securities Act"), such as privately placed commercial paper and Rule 144A securities. Risk Type: Liquidity, Market, Valuation | All Funds | Private Placements, Restricted Securities and Other Unregistered Securities |
| *Real Estate Investment Trusts ("REITs"):* Pooled investment vehicles that invest primarily in income producing real estate or real estate-related loans or interest. Risk Type: Credit, Environmental, Interest Rate, Liquidity, Management, Market, Political, Prepayment, Tax, Valuation | All Funds | Real Estate Investment Trusts |
| *Repurchase Agreements:* Agreements that provide for the purchase of a security and the simultaneous commitment to return the security to the seller at an agreed upon price on an agreed upon date. These are treated as a loan. Risk Type: Credit, Liquidity, Market | All Funds | Repurchase Agreements |
| *Reverse Repurchase Agreements:* Agreements that provide for the sale of a security and the simultaneous commitment to buy the security back at an agreed upon price on an agreed upon date. These are treated as a borrowing by a Fund. Risk Type: Credit, Leverage, Market | SDSB, STR, CB, CPB | Reverse Repurchase Agreements |
| *Securities Issued in Connection with Reorganization and Corporate Restructuring:* Common stock or other securities issued by an issuer to holders of its debt securities in connection with reorganizing or restructuring of that issuer. Risk Type: Market | SDSB, STR, CB, CPB | Securities Issued in Connection with Reorganization and Corporate Restructuring |

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| | | |
|:---|:---|:---|
| **Instrument** | **Funds** | **Section** |
| *Short-Term Funding Agreements:* Agreements issued by banks and highly rated U.S. insurance companies, such as guaranteed investment contracts and bank investment contracts. Risk Type: Credit, Liquidity, Market | SDSB, STR, CB, CPB | Short-Term Funding Agreements |
| *Short Sales:* Transaction that involves the sale of a security that a Fund does not own in hopes of purchasing the same security at a later date at a lower price. Short sales are effected when it is believed that the price of a particular security will decline. Risk Type: Short Sale | LS, IN | Short Sales |
| *Sovereign Obligations:* Investments in debt obligations issued or guaranteed by a non-U.S. sovereign government or its agencies, authorities or political subdivisions. Risk Type: Credit, Non-U.S. Investment, Liquidity, Political, Sovereign, Valuation | IN, SDSB, STR, CB, CPB | Non-U.S. Investments |
| *Stripped Mortgage-Backed Securities ("SMBS"):* Derivative multi-class mortgage securities that are usually structured with two classes of shares that receive different proportions of the interest and principal from a pool of mortgage assets. These include interest-only ("IO") and principal-only ("PO") securities issued outside a real estate mortgage investment conduit ("REMIC") or CMO structure. Risk Type: Credit, Liquidity, Market, Political, Prepayment, Valuation | SDSB, STR, CB, CPB | Mortgage-Related Securities |
| *Structured Investments:* A security having a return tied to an underlying index or other security or asset class. Structured investments generally are individually negotiated agreements and may be traded OTC. Structured investments are organized and operated to restructure the investment characteristics of the underlying security. Risk Type: Credit, Non-U.S. Investment, Liquidity, Management, Market, Valuation | SDSB, STR, CB, CPB | Structured Investments |
| *Swaps and Related Swap Products:* Transactions involving an exchange of obligations by two parties. Caps and floors entitle a purchaser to a principal amount from the seller of the cap or floor to the extent that a specified index exceeds or falls below a predetermined interest rate or amount. A Fund may enter into these transactions to manage its exposure to changing interest rates and other factors. Risk Type: Credit, Currency, Interest Rate, Leverage, Liquidity, Management, Market, Political, Valuation | SDSB, STR, CB, CPB | Swaps and Related Swap Products |
| *Synthetic Variable Rate Instruments:* Instruments that generally involve the deposit of a long-term, tax-exempt bond in a custody or trust arrangement and the creation of a mechanism to adjust the long-term interest rate on the bond to a variable short-term rate and a right (subject to certain conditions) on the part of the purchaser to tender it periodically to a third party at par. Risk Type: Credit, Liquidity, Market | SDSB, STR, CB, CPB | Synthetic Variable Rate Instruments |
| *Temporary Strategies:* To respond to unusual circumstances, a Fund may invest in cash and cash equivalents for temporary defensive purposes. Risk Type: Credit, Interest Rate, Liquidity, Market | All Funds | Temporary Strategies |

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| | | |
|:---|:---|:---|
| **Instrument** | **Funds** | **Section** |
| *Trust Preferreds:* Securities with characteristics of both subordinated debt and preferred stock. Trust preferreds are generally long term securities that make periodic fixed or variable interest payments. Risk Type: Credit, Currency, Interest Rate, Liquidity, Market, Political, Valuation | SDSB, STR, CB, CPB | Trust Preferred Securities |
| *U.S. Equity Securities:* Equity securities trading in the U.S. ODTC market or on a U.S. primary exchange consisting of common and preferred stocks, rights and warrants. Equity securities may also include SPDRs and other similar instruments. Risk Type: Market, Small and Mid Cap Company | SC, SMID, MC, LC, SL, LS, IN | U.S. Equity Securities |
| *U.S. Government Agency Securities:* Securities issued or guaranteed by agencies and instrumentalities of the U.S. government. These include all types of securities issued by the Government National Mortgage Association ("Ginnie Mae"), the Federal National Mortgage Association ("Fannie Mae") and the Federal Home Loan Mortgage Corporation ("Freddie Mac"), including funding notes, subordinated benchmark notes, CMOs and REMICs. It also includes securities of non-mortgage-related agencies such as TVA and SBA. Risk Type: Credit, Interest Rate, Government Securities, Market | SDSB, STR, CB, CPB | Mortgage-Related Securities |
| *U.S. Government Obligations:* Direct obligations of the U.S. Treasury, including U.S. Treasury bills, notes and bonds, all of which are backed as to principal and interest payments by the full faith and credit of the U.S., and separately traded principal and interest component parts of such obligations that are transferable through the Federal book-entry system known as Separate Trading of Registered Interest and Principal of Securities ("STRIPS") and Coupons Under Book Entry Safekeeping ("CUBES"). Risk Type: Interest Rate, Market | All Funds | U.S. Government Obligations |
| *Variable and Floating Rate Instruments:* Obligations with interest rates that are reset daily, weekly, quarterly or some other frequency and that may be payable to a Fund on demand or at the expiration of a specified term. Risk Type: Credit, Liquidity, Market, Valuation | SDSB, STR, CB, CPB | Variable and Floating Rate Instruments |
| *When-Issued Securities and Forward Commitments:* Purchase or contract to purchase securities at a fixed price for delivery at a future date. Risk Type: Credit, Leverage, Liquidity, Market, Valuation | SDSB, STR, CB, CPB | When-Issued and Forward Commitments |
| *Zero-Coupon, Pay-in-Kind and Deferred Payment Securities:* Zero-coupon securities are securities that are sold at a discount to par value and on which interest payments are not made during the life of the security. Pay-in-kind securities are securities that have interest payable by delivery of additional securities. Deferred payment securities are zero-coupon debt securities which convert on a specified date to interest bearing debt securities. Risk Type: Credit, Interest Rate, Liquidity, Market, Political, Valuation, Zero-Coupon Securities | SDSB, STR, CB, CPB | Zero Coupon, Pay-in-Kind and Deferred Payment Securities |

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**Explanation of Risk Types:**

● **Consumer Loans risk:** The risk that financial obligations will not be met by borrowers, that there may be contractual restrictions on resale, that there may be extended settlement periods and that there may be improper practices due to the unregistered nature.

● **Convertible securities risk:** Convertible securities are subject to greater risk of loss and sensitivity to economic changes.

● **Credit risk:** The risk that a financial obligation will not be met by the issuer of a security or the counterparty to a contract, resulting in a loss to the purchaser.

● **Currency risk:** The risk that if a Fund invests in securities that trade in, and receive revenues in, non-U.S. currencies, it will be subject to the risk that those currencies will decline in value relative to the U.S. dollar.

● **Environmental risk:** The risk that an owner or operator of real estate may be liable for the costs associated with hazardous or toxic substances located on the property.

● **Extension risk:** The risk that a rise in interest rates will extend the life of a security to a date later than the anticipated prepayment date, causing the value of the investment to fall.

● **Government securities risk:** U.S. government securities are subject to market risk, fixed income risk and credit risk. Securities, such as those issued or guaranteed by Ginnie Mae or the U.S. Treasury, which are backed by the full faith and credit of the U.S. are guaranteed only as to the timely payment of interest and principal when held to maturity and the market prices for such securities will fluctuate. Circumstances could arise that would prevent the payment of interest or principal. Securities issued or guaranteed by certain U.S. government-related organizations are not backed by the full faith and credit of the U.S. government and no assurance can be given that the U.S. government will provide financial support.

● **High yield securities risk:** High yield, high risk securities (also known as junk bonds) are subject to greater risk of loss, greater sensitivity to economic changes, valuation difficulties and a potential lack of a secondary or public market for securities.

● **Interest rate risk:** The risk that a change in interest rates will adversely affect the value of an investment. The value of fixed income securities generally moves in the opposite direction of interest rates (decreases when interest rates rise and increases when interest rates fall).

● **Investment company risk:** If a Fund invests in shares of another investment company, shareholders would bear not only their proportionate share of the Fund's expenses, but also similar expenses of the investment company. The price movement of an investment company that is an ETF may not track the underlying index and may result in a loss.

● **Leverage risk:** The risk that gains or losses will be disproportionately higher than the amount invested.

● **Liquidity risk:** The risk that the holder may not be able to sell the security at the time or price it desires.

● **Management risk:** The risk that a strategy used by a Fund's management may fail to produce the intended result. This includes the risk that changes in the value of a hedging instrument will not match those of the asset being hedged. Incomplete matching can result in unanticipated risks.

**●** **Market risk:** A variety of factors including interest rate levels, recessions, inflation, U.S. economic growth, war or acts of terrorism, natural disasters, political events and widespread public health issues affect the securities markets. This systemic risk is common to all investments and the mutual funds that purchase them.

● **Natural event risk:** The risk that a natural disaster, such as a hurricane or similar event, will cause severe economic losses and default in payments by the issuer of the security.

● **Non-U.S. investment risk:** The risk associated with higher transaction costs, delayed settlements, adverse economic developments, and exchange rate volatility. These risks are increased in emerging markets.

● **Political risk:** The risk that governmental policies or other political actions will negatively impact the value of the investment.

● **Portfolio quality risk:** The risks associated with below investment grade securities including greater risk of default, greater sensitivity to interest rates and economic changes, potential valuation difficulties, and sudden and unexpected changes in credit quality.

● **Prepayment risk:** The risk that declining interest rates will result in unexpected prepayments, causing the value of the investment to fall.

● **Short sale risk:** A Fund's gain is limited to the amount at which it sold a security short, but its potential loss is not limited.

● **Small and mid cap company risk:** Investments in small and mid cap companies may be riskier than investments in larger, more established companies.

● **Sovereign risk**: A government entity may delay payment, restructure its debt, or refuse to pay interest or repay principal on its sovereign debt. There is no legal process for collecting amounts owed on sovereign debt, such as bankruptcy proceedings, that a government does not pay.

● **Tax risk:** The risk that the issuer of the securities will fail to comply with certain requirements of the Internal Revenue Code of 1986, as amended ("Code"), which could cause adverse tax consequences. Also the risk that the tax treatment of municipal or other securities could be changed by Congress thereby affecting the value of outstanding securities.

**●** **Valuation risk:** The risk that the estimated value of a security does not match the actual amount that can be realized if the security is sold.

**●** **Zero-Coupon securities risk:** The market value of these securities is generally more volatile than the market value of, and is more likely to respond to a greater degree to changes in interest rates than, other fixed income securities with similar maturities and credit quality that pay interest periodically. Actions required by federal income tax law may reduce the assets to which a Fund's expenses could otherwise be allocated and may reduce a Fund's rate of return.

**Asset-Backed Securities** 

ABS consist of securities secured by company receivables, home equity loans, truck and auto loans, leases, or credit card receivables. ABS also include other securities backed by other types of receivables or other assets, including collateralized debt obligations ("CDOs"), which include collateralized bond obligations ("CBOs"), collateralized loan obligations ("CLOs") and other similarly structured securities. Such assets are generally securitized through the use of trusts or special purpose corporations. ABS are backed by a pool of assets representing the obligations often of a number of different parties. Certain of these securities may be illiquid.

ABS are generally subject to the risks of the underlying assets. In addition, ABS, in general, are subject to certain additional risks including depreciation, damage or loss of the collateral backing the security, failure of the collateral to generate the anticipated cash flow or in certain cases more rapid prepayment because of events affecting the collateral, such as accelerated prepayment of loans backing these securities or destruction of equipment subject to equipment trust certificates. In addition, the underlying assets (for example, the underlying credit card debt) may be refinanced or paid off prior to maturity during periods of declining interest rates. Changes in prepayment rates can result in greater price and yield volatility. If ABS are pre-paid, a Fund may have to reinvest the proceeds from the securities at a lower rate. Potential market gains on a security subject to prepayment risk may be more limited than potential market gains on a comparable security that is not subject to prepayment risk. Under certain prepayment rate scenarios, a Fund may fail to recover additional amounts paid (*i.e*., premiums) for securities with higher interest rates, resulting in an unexpected loss.

A CBO is a trust or other special purpose entity ("SPE") which is typically backed by a diversified pool of fixed income securities (which may include high risk, below investment grade securities). A CLO is a trust or other SPE that is typically collateralized by a pool of loans, which may include, among others, U.S. and non-U.S. senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. Although certain CDOs may receive credit enhancement in the form of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be present and may fail to protect a Fund against the risk of loss on default of the collateral. Certain CDOs may use derivatives contracts to create "synthetic" exposure to assets rather than holding such assets directly, which entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and administrative expenses, which are in addition to those of a Fund.

For both CBOs and CLOs, the cash flows from the SPE are split into two or more portions, called tranches, varying in risk and yield. The riskiest portion is the "equity" tranche, which bears the first loss from defaults from the bonds or loans in the SPE and serves to protect the other, more senior tranches from default (though such protection is not complete). Since it is partially protected from defaults, a senior tranche from a CBO or CLO typically has higher ratings and lower yields than its underlying securities and may be rated investment grade. Despite the protection from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades of the underlying collateral by rating agencies, forced liquidation of the collateral pool due to a failure of coverage tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market anticipation of defaults, as well as investor aversion to CBO or CLO securities as a class. Interest on certain tranches of a CDO may be paid in kind or deferred and capitalized (paid in the form of obligations of the same type rather than cash), which involves continued exposure to default risk with respect to such payments.

The risks of an investment in a CDO depend largely on the type of the collateral securities and the class of the CDO in which a Fund invests. Normally, CBOs, CLOs and other CDOs are privately offered and sold, and thus are not registered under the securities laws. As a result, investments in CDOs may be characterized by a Fund as illiquid securities. However, an active dealer market may exist for CDOs, allowing a CDO to qualify for Rule 144A transactions. In addition to the normal risks associated with fixed income securities and ABS generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the risk that the collateral may default or decline in value or be downgraded, if rated by a nationally recognized statistical rating organization ("NRSRO"); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches; (iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors regarding the characterization of proceeds; (v) the investment return achieved by a Fund could be significantly different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs; (vii) risk of forced "fire sale" liquidation due to technical defaults such as coverage test failures; and (viii) the CDO's manager may perform poorly.

**Auction Rate Securities**

Auction rate securities consist of auction rate Municipal Securities and auction rate preferred securities sold through an auction process issued by closed-end investment companies, municipalities and governmental agencies. For more information on risks associated with Municipal Securities, see "Municipal Securities" below.

Provided that the auction mechanism is successful, auction rate securities usually permit the holder to sell the securities in an auction at par value at specified intervals. The dividend is reset by "Dutch" auction in which bids are made by broker-dealers and other institutions for a certain amount of securities at a specified minimum yield. The dividend rate set by the auction is the lowest interest or dividend rate that covers all securities offered for sale. While this process is designed to permit auction rate securities to be traded at par value, there is the risk that an auction will fail due to insufficient demand for the securities. Since February 2008, numerous auctions have failed due to insufficient demand for securities and have continued to fail for an extended period of time. Failed auctions may adversely impact the liquidity of auction rate securities investments. Although some issuers of auction rate securities are redeeming or are considering redeeming such securities, such issuers are not obligated to do so and, therefore, there is no guarantee that a liquid market will exist for a Fund's investments in auction rate securities at a time when the Fund wishes to dispose of such securities.

Dividends on auction rate preferred securities issued by a closed-end fund may be designated as exempt from federal income tax to the extent they are attributable to tax-exempt interest income earned by the closed-end fund on the securities in its portfolio and distributed to holders of the preferred securities. However, such designation may be made only if the closed-end fund treats preferred securities as equity securities for federal income tax purposes and the closed-end fund complies with certain requirements under the Code.

A Fund's investment in auction rate preferred securities of closed-end funds is subject to limitations on investments in other U.S. registered investment companies, which limitations are prescribed under the Company Act. Except as permitted by rule or exemptive order (see "Investment Company Securities" below for more information), a Fund is generally prohibited from acquiring more than 3% of the voting securities of any other such investment company, and investing more than 5% of a Fund's total assets in securities of any one such investment company or more than 10% of its total assets in securities of all such investment companies. A Fund will indirectly bear its proportionate share of any management fees paid by such closed-end funds in addition to the advisory fee payable directly by the Fund.

**Bank Obligations** 

Bank obligations consist of bankers' acceptances, certificates of deposit, and time deposits.

"Bankers' Acceptances" are negotiable drafts or bills of exchange typically drawn by an importer or exporter to pay for specific merchandise, which are "accepted" by a bank, meaning, in effect, that the bank unconditionally agrees to pay the face value of the instrument on maturity. Bankers' acceptances invested in by a Fund will be those guaranteed by U.S. and non-U.S. banks and savings and loan associations having, at the time of investment, total assets in excess of $1 billion (as of the date of their most recently published financial statements).

"Certificates of Deposit" are negotiable certificates issued against funds deposited in a commercial bank or a savings and loan association for a definite period of time and earning a specified return. Certificates of deposit will be those of U.S. and non-U.S. branches of U.S. commercial banks which are members of the Federal Reserve System or the deposits of which are insured by the Federal Deposit Insurance Corporation ("FDIC"), and in certificates of deposit of U.S. savings and loan associations the deposits of which are insured by the FDIC if, at the time of purchase, such institutions have total assets in excess of $1 billion (as of the date of their most recently published financial statements). Certificates of deposit may also include those issued by non-U.S. banks with total assets at the time of purchase in excess of the equivalent of $1 billion.

A Fund may also invest in Eurodollar certificates of deposit, which are U.S. dollar-denominated certificates of deposit issued by branches of non-U.S. and U.S. banks located outside the U.S., and Yankee certificates of deposit, which are certificates of deposit issued by a U.S. branch of a non-U.S. bank denominated in U.S. dollars and held in the U.S. A Fund may also invest in obligations (including banker's acceptances and certificates of deposit) denominated in non-U.S. currencies (see "Non-U.S. Investments" herein).

"Time Deposits" are interest-bearing non-negotiable deposits at a bank or a savings and loan association that have a specific maturity date. A time deposit earns a specific rate of interest over a definite period of time. Time deposits cannot be traded on the secondary market and those exceeding seven days and with a withdrawal penalty are considered to be illiquid. A Fund utilizes demand deposits in connection with its day-to-day operations. Time deposits will be maintained only at banks or savings and loan associations from which a Fund could purchase certificates of deposit.

**Borrowings**

A Fund may borrow for temporary purposes and/or for investment purposes. Such a practice will result in leveraging of a Fund's assets and may cause a Fund to liquidate portfolio positions when it would not be advantageous to do so. This borrowing may be secured or unsecured. If a Fund utilizes borrowings, for investment purposes or otherwise, it may pledge up to 33⅓% of its total assets to secure such borrowings. Provisions of the Company Act require a Fund to maintain continuous asset coverage (that is, total assets including borrowings, less liabilities exclusive of borrowings) of 300% of the amount borrowed, with an exception for borrowings not in excess of 5% of a Fund's total assets made for temporary administrative or emergency purposes. Any borrowings for temporary administrative purposes in excess of 5% of a Fund's total assets must maintain continuous asset coverage. If the 300% asset coverage should decline as a result of market fluctuations or other reasons, a Fund may be required to sell some of its portfolio holdings within three days to reduce the debt and restore the 300% asset coverage, even though it may be disadvantageous from an investment standpoint to sell securities at that time. Borrowing will tend to exaggerate the effect on net asset value ("NAV") of any increase or decrease in the market value of a Fund's portfolio. Money borrowed will be subject to interest costs which may or may not be recovered by appreciation of the securities purchased. A Fund also may be required to maintain minimum average balances in connection with such borrowing or to pay a commitment or other fee to maintain a line of credit; either of these requirements would increase the cost of borrowing over the stated interest rate.

**Commercial Paper** 

Commercial paper is defined as short-term obligations, generally with maturities from 1 to 270 days issued by banks or bank holding companies, corporations and finance companies. Although commercial paper is generally unsecured, a Fund may also purchase secured commercial paper. In the event of a default of an issuer of secured commercial paper, a Fund may hold the securities and other investments that were pledged as collateral even if it does not invest in such securities or investments. In such a case, a Fund would take steps to dispose of such securities or investments in a commercially reasonable manner. Commercial paper includes master demand obligations. See "Variable and Floating Rate Instruments" below.

Certain Funds may also invest in Canadian commercial paper, which is commercial paper issued by a Canadian corporation or a Canadian counterpart of a U.S. corporation, and in Europaper, which is U.S. dollar-denominated commercial paper of a non-U.S. issuer. See "Risk Factors of Non-U.S. Investments" below.

**Custodial Receipts**

A Fund may acquire securities in the form of custodial receipts that evidence ownership of future interest payments, principal payments or both on certain U.S. Treasury notes or bonds in connection with programs sponsored by banks and brokerage firms. These are not considered U.S. government securities and are not backed by the full faith and credit of the U.S. government. These notes and bonds are held in custody by a bank on behalf of the owners of the receipts.

**Demand Features**

A Fund may acquire securities that are subject to puts and standby commitments ("Demand Features") to purchase the securities at their principal amount (usually with accrued interest) within a fixed period (usually seven days) following a demand by the Fund. The Demand Feature may be issued by the issuer of the underlying securities, a dealer in the securities or by another third party and may not be transferred separately from the underlying security. The underlying securities subject to a put may be sold at any time at market rates. Applicable Funds expect that they will acquire puts only where the puts are available without the payment of any direct or indirect consideration. However, if advisable or necessary, a premium may be paid for put features. A premium paid will have the effect of reducing the yield otherwise payable on the underlying security. Demand Features provided by non-U.S. banks involve certain risks associated with non-U.S. investments. See "Non-U.S. Investments" for more information on these risks.

Under a "stand-by commitment," a dealer would agree to purchase, at a Fund's option, specified securities at a specified price. A Fund will acquire these commitments solely to facilitate portfolio liquidity and does not intend to exercise its rights thereunder for trading purposes. Stand-by commitments may also be referred to as put options.

The purpose of engaging in transactions involving puts is to maintain flexibility and liquidity to permit a Fund to meet redemption requests and remain as fully invested as possible.

**Fixed Income Securities**

**Below Investment Grade Securities.** Securities that were rated investment grade at the time of purchase may subsequently be rated below investment grade by NRSROs. Certain Funds that do not invest in below investment grade securities as a main investment strategy may nonetheless continue to hold such securities if the Adviser believes it is advantageous for the Fund to do so. The high degree of risk involved in these investments can result in substantial or total losses. These securities are subject to greater risk of loss, greater sensitivity to interest rate and economic changes, valuation difficulties, and a potential lack of a secondary or public market for securities. The market price of these securities also can change suddenly and unexpectedly.

**Corporate Debt Securities.** Each Fund may invest in debt securities of corporate issuers. In addition to corporate bonds, each Fund may invest in debt securities such as trust preferred securities, convertible securities, preferred convertible securities, contingent convertible securities, preferred stock, equity securities, U.S. Government and Agency securities and MBS or ABS. All debt securities are subject to the risk of an issuer's inability to meet principal and interest payments on the obligation and may also be subject to price volatility due to such factors as market interest rates, market perception of the creditworthiness of the issuer and general market liquidity. For example, higher ranking (senior) debt securities have a higher repayment priority than lower ranking (subordinated) debt securities. Fixed income securities with greater interest rate sensitivity and longer maturities tend to produce higher yields, but are subject to greater fluctuations in value. Usually, changes in the value of fixed income securities will not affect cash income generated, but may affect the value of your investment.

**High Yield/High Risk Securities/Junk Bonds.** High yield, high risk bonds are securities that are generally rated below investment grade by the primary rating agencies (BB+ or lower by S&P Global Ratings ("S&P") and Bal or lower by Moody's Investors Service, Inc. ("Moody's")) or unrated but determined by the Adviser to be of comparable quality. Other terms used to describe such securities include "lower rated bonds," "non-investment grade bonds," "below investment grade bonds," and "junk bonds." These securities are considered to be high-risk investments.

High yield securities are regarded as predominately speculative. There is a greater risk that issuers of lower rated securities will default than issuers of higher rated securities. Issuers of lower rated securities generally are less creditworthy and may be highly indebted, financially distressed, or bankrupt. These issuers are more vulnerable to real or perceived economic changes, political changes or adverse industry developments. In addition, high yield securities are frequently subordinated to the prior payment of senior indebtedness. If an issuer fails to pay principal or interest, a Fund would experience a decrease in income and a decline in the market value of its investments. A Fund may also incur additional expenses in seeking recovery from the issuer.

The income and market value of lower rated securities may fluctuate more than higher rated securities. Non-investment grade securities are more sensitive to short-term corporate, economic and market developments. During periods of economic uncertainty and change, the market price of the investments in lower rated securities may be volatile. The default rate for high yield bonds tends to be cyclical, with defaults rising in periods of economic downturn.

It is often more difficult to value lower rated securities than higher rated securities. If an issuer's financial condition deteriorates, accurate financial and business information may be limited or unavailable. The lower rated investments may be thinly traded and there may be no established secondary market. Because of the lack of market pricing and current information for investments in lower rated securities, valuation of such investments is much more dependent on the judgment of the Adviser than is the case with higher rated securities. In addition, relatively few institutional purchasers may hold a major portion of an issue of lower-rated securities at times. As a result, a Fund that invests in lower rated securities may be required to sell investments at substantial losses or retain them indefinitely even where an issuer's financial condition is deteriorating.

Credit quality of non-investment grade securities can change suddenly and unexpectedly, and even recently issued credit ratings may not fully reflect the actual risks posed by a particular high-yield security.

Future legislation may have a possible negative impact on the market for high yield, high risk bonds. As an example, in the late 1980s, legislation required federally-insured savings and loan associations to divest their investments in high yield, high risk bonds. New legislation, if enacted, could have a material negative effect on a Fund's investments in lower rated securities.

**Inflation-Linked Debt Securities.** Inflation-linked securities include fixed and floating rate debt securities of varying maturities issued by the U.S. government, its agencies and instrumentalities, such as Treasury Inflation Protected Securities ("TIPS"), as well as securities issued by other entities such as corporations, municipalities, non-U.S. governments and non-U.S. issuers, including non-U.S. issuers from emerging markets. See also "Non-U.S. Investments." Typically, such securities are structured as fixed income investments whose principal value is periodically adjusted according to the rate of inflation. The following two structures are common: (i) the U.S. Treasury and some other issuers issue inflation-linked securities that accrue inflation into the principal value of the security and (ii) other issuers may pay out the Consumer Price Index ("CPI") accruals as part of a semi-annual coupon. Other types of inflation-linked securities exist which use an inflation index other than the CPI.

Inflation-linked securities issued by the U.S. Treasury, such as TIPS, have maturities of approximately five, ten or thirty years, although it is possible that securities with other maturities will be issued in the future. Typically, TIPS pay interest on a semi-annual basis equal to a fixed percentage of the inflation-adjusted principal amount. For example, if a Fund purchased an inflation-indexed bond with a par value of $1,000 and a 3% real rate of return coupon (payable 1.5% semi-annually), and the rate of inflation over the first six months was 1%, the mid-year par value of the bond would be $1,010 and the first semi-annual interest payment would be $15.15 ($1,010 times 1.5%). If inflation during the second half of the year resulted in the whole year's inflation of 3%, the end-of-year par value of the bond would be $1,030 and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).

If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be adjusted downward, and consequently the interest payable on these securities (calculated with respect to a smaller principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of TIPS, even during a period of deflation, although the inflation-adjusted principal received could be less than the inflation-adjusted principal that had accrued to the bond at the time of purchase. However, the current market value of the bonds is not guaranteed and will fluctuate. Other inflation-related bonds exist which may or may not provide a similar guarantee. If a guarantee of principal is not provided, the adjusted principal value of the bond repaid at maturity may be less than the original principal.

The value of inflation-linked securities is expected to change in response to changes in real interest rates. Real interest rates in turn are tied to the relationship between nominal interest rates and the rate of inflation. Therefore, if the rate of inflation rises at a faster rate than nominal interest rates, real interest rates might decline, leading to an increase in value of inflation-linked securities.

While inflation-linked securities are expected to be protected from long-term inflationary trends, short-term increases in inflation may lead to a decline in value. If interest rates rise due to reasons other than inflation (for example, due to changes in currency exchange rates), investors in these securities may not be protected to the extent that the increase is not reflected in the bond's inflation measure.

The periodic adjustment of U.S. inflation-linked securities is tied to the CPI for All Urban Consumers ("CPI-U"), which is not seasonally adjusted and which is calculated monthly by the U.S. Bureau of Labor Statistics. The CPI-U is a measurement of changes in the cost of living, made up of components such as housing, food, transportation and energy. Inflation-linked securities issued by a non-U.S. government are generally adjusted to reflect a comparable inflation index calculated by that government. There can be no assurance that the CPI-U or a non-U.S. inflation index will accurately measure the real rate of inflation in the prices of goods and services. Moreover, there can be no assurance that the rate of inflation in a non-U.S. country will be correlated to the rate of inflation in the U.S.

Any increase in the principal amount of an inflation-linked security will be considered taxable ordinary income, even though investors do not receive their principal until maturity.

**Convertible Securities.** Convertible securities include any debt securities or preferred stock which may be converted into common stock or which carry the right to purchase common stock. Generally, convertible securities entitle the holder to exchange the securities for a specified number of shares of common stock, usually of the same company, at specified prices within a certain period of time.

The terms of any convertible security determine its ranking in a company's capital structure. In the case of subordinated convertible debentures, the holders' claims on assets and earnings are subordinated to the claims of other creditors, and are senior to the claims of preferred and common shareholders. In the case of convertible preferred stock, the holders' claims on assets and earnings are subordinated to the claims of all creditors and are senior to the claims of common shareholders.

Convertible securities have characteristics similar to both debt and equity securities. Due to the conversion feature, the market value of convertible securities tends to move together with the market value of the underlying common stock. As a result, selection of convertible securities, to a great extent, is based on the potential for capital appreciation that may exist in the underlying stock. The value of convertible securities is also affected by prevailing interest rates, the credit quality of the issuer, and any call provisions. In some cases, the issuer may cause a convertible security to convert to common stock. In other situations, it may be advantageous for a Fund to cause the conversion of convertible securities to common stock. If a convertible security converts to common stock, a Fund may hold such common stock in its portfolio even if it does not ordinarily invest in common stock.

A Fund may invest in contingent securities structured as contingent convertible securities also known as CoCos. Contingent convertible securities are typically issued by non-U.S. banks and are designed to behave like bonds in times of economic health yet absorb losses when a pre-determined trigger event occurs (the "Trigger Event"). A contingent convertible security is a hybrid debt security either convertible into equity at a predetermined share price or written down in value based on the specific terms of the individual security if a pre-specified Trigger Event occurs. Unlike traditional convertible securities, the conversion of a contingent convertible security from debt to equity is "contingent" and will occur only in the case of a Trigger Event. Trigger Events vary by instrument and are defined by the documents governing the contingent convertible security. Such Trigger Events may include a decline in the issuer's capital below a specified threshold level, increase in the issuer's risk weighted assets, the share price of the issuer falling to a particular level for a certain period of time and certain regulatory events.

Contingent convertible securities are subject to the credit, interest rate, high yield security, non-U.S. security and markets risks associated with bonds and equities, and to the risks specific to convertible securities in general. Contingent convertible securities are also subject to additional risks specific to their structure including conversion risk. Because Trigger Events are not consistently defined among contingent convertible securities, this risk is greater for contingent convertible securities that are issued by banks with capital ratios close to the level specified in the Trigger Event.

In addition, coupon payments on contingent convertible securities are discretionary and may be cancelled by the issuer at any point, for any reason, and for any length of time. The discretionary cancellation of payments is not an event of default and there are no remedies to require re-instatement of coupon payments or payment of any past missed payments. Coupon payments may also be subject to approval by the issuer's regulator and may be suspended in the event there are insufficient distributable reserves. Due to uncertainty surrounding coupon payments, contingent convertible securities may be volatile and their price may decline rapidly in the event that coupon payments are suspended.

Contingent convertible securities typically are structurally subordinated to traditional convertible bonds in the issuer's capital structure. In certain scenarios, investors in contingent convertible securities may suffer a loss of capital ahead of equity holders or when equity holders do not. Contingent convertible securities are also subject to extension risk. Contingent convertible securities are perpetual instruments and may only be callable at pre-determined dates upon approval of the applicable regulatory authority. There is no guarantee that a Fund will receive return of principal on contingent convertible securities.

Convertible contingent securities are a newer form of instrument and the regulatory environment for these instruments continues to evolve. Because the market for contingent convertible securities is evolving, it is uncertain how the larger market for contingent convertible securities would react to a Trigger Event or coupon suspension applicable to a single issuer.

The value of contingent convertible securities is unpredictable and will be influenced by many factors such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the creditworthiness of the issuer and/or fluctuations in such issuer's applicable capital ratios; (ii) supply and demand for contingent convertible securities; (iii) general market conditions and available liquidity; and (iv) economic, financial and political events that affect the issuer, its particular market or the financial markets in general.

**Interfund Borrowing and Lending Program**

Pursuant to an exemptive order issued by the Securities and Exchange Commission (the "SEC") dated October 2, 2019, the Funds may lend money to, and borrow money for temporary purposes from, other funds advised by the Adviser. Generally, the Funds will borrow money through the program only when the costs are equal to or lower than the cost of bank loans. Interfund borrowings can have a maximum duration of seven days. Loans may be called on one day's notice. There is no assurance that a Fund will be able to borrow or lend under the program at any time, and the Fund may have to borrow from a bank at a higher interest rate if an interfund loan is unavailable, called, or not renewed. A delay in repayment to the lending Fund from a borrowing Fund could result in lost opportunity costs. Interfund loans are subject to the risk that the borrowing Fund could be unable to repay the loan when due. In the case of a default by a borrowing fund and to the extent that the loan is collateralized, the lending Fund could take possession of collateral that the Fund is not permitted to hold and, therefore, would be required to dispose of such collateral as soon as possible, which could result in a loss to the Fund.

**Inverse Floaters and Interest Rate Caps**

Inverse floaters are instruments whose interest rates bear an inverse relationship to the interest rate on another security or the value of an index. The market value of an inverse floater will vary inversely with changes in market interest rates and will be more volatile in response to interest rate changes than that of a fixed rate obligation. Interest rate caps are financial instruments under which payments occur if an interest rate index exceeds a certain predetermined interest rate level, known as the cap rate, which is tied to a specific index. These financial products will be more volatile in price than securities which do not include such a structure.

**Investment Company Securities** 

A Fund may invest in securities issued by other investment companies, including another Fund. Such securities will be acquired by a Fund to the extent permitted by the Company Act and consistent with its investment objective and strategies. As a shareholder of another investment company, a Fund would bear, along with other shareholders, its pro rata portion of the other investment company's expenses, including management fees. These expenses would be in addition to the advisory and other expenses that a Fund bears directly in connection with its own operations. Investing in another investment company will also subject a Fund to the risks associated with the other investment company.

To the extent a Fund invests in an underlying fund, because the Adviser provides services to and receives fees from the underlying fund, a Fund's investment in the underlying fund benefits the Adviser. In addition, a Fund may hold a significant percentage of the shares of the underlying fund. As a result, a Fund's investment in an underlying fund may create a conflict of interest. To the extent a Fund invests in an underlying fund, the Adviser has contractually agreed to waive the Fund's fees in the pro rata amount of the management fee charged by the underlying fund.

Each Fund may also invest in various ETFs, open-end and closed-end funds, subject to the Fund's investment objective, policies and strategies. Closed-end investment companies are a type of investment company the shares of which are not redeemable by the issuing investment company. The value of the shares is set by the transactions on the secondary market and may be higher or lower than the value of the portfolio securities that make up the closed-end investment company. A Fund also will incur brokerage costs when it purchases ETFs and closed-end funds. Furthermore, investments in other funds could affect the timing, amount and character of distributions to shareholders and therefore may increase the amount of taxes payable by investors in a Fund.

Closed-end investment companies may trade infrequently, with small volume, which may make it difficult for a Fund to buy and sell shares. Also, the market price of closed-end investment companies tends to rise more in response to buying demand and fall more in response to selling pressure than is the case with larger capitalization companies. Closed-end funds may trade at a premium or discount which means that the price in the secondary market may be higher or lower than the calculated NAV.

Closed-end investment companies may issue senior securities (including preferred stock and debt obligations) for the purpose of leveraging the closed-end fund's common shares in an attempt to enhance the current return to such closed-end fund's common shareholders. A Fund's investment in the common shares of closed-end funds that are financially leveraged may create an opportunity for greater total return on the Fund's investment, but at the same time the closed-end fund may be expected to exhibit more volatility in market price and NAV than an investment in shares of investment companies without a leveraged capital structure.

Closed-end investment companies in which a Fund invests may issue auction preferred shares ("APS"). The dividend rate for the APS normally is set through an auction process. In the auction, holders of APS may indicate the dividend rate at which they would be willing to hold or sell their APS or purchase additional APS. The auction also provides liquidity for the sale of APS. A Fund may not be able to sell its APS at an auction if the auction fails. An auction fails if there are more APS offered for sale than there are buyers. A closed-end fund may not be obligated to purchase APS in an auction or otherwise, nor may the closed-end fund be required to redeem APS in the event of a failed auction. As a result, the Fund's investment in APS may be illiquid. In addition, if a Fund buys APS or elects to retain APS without specifying a dividend rate below which it would not wish to buy or continue to hold those APS, a Fund could receive a lower rate of return on its APS than the market rate.

The price movement of an ETF may not track the underlying index and may result in a loss. Both ETFs and closed-end funds, like stocks, trade on exchanges such as the New York Stock Exchange ("NYSE"). Both are priced continuously and trade throughout the day.

**Loans** 

Loans may include Senior Loans and secured and unsecured loans, second lien or more Junior Loans and Bridge Loans. Loans are typically arranged through private negotiations between borrowers in the U.S. or in non-U.S. or emerging markets which may be corporate issuers or issuers of sovereign debt obligations ("Obligors") and one or more financial institutions and other lenders ("Lenders"). Generally, a Fund invests in Loans by purchasing Assignments of all or a portion of Loans or Participations from third parties.

A Fund has direct rights against the Obligor on the Loan when it purchases an Assignment. Because Assignments are arranged through private negotiations between potential assignees and potential assignors, however, the rights and obligations acquired by a Fund as the purchaser of an Assignment may differ from, and be more limited than, those held by the assigning Lender. With respect to Participations, typically, a Fund will have a contractual relationship only with the Lender and not with the Obligor. The agreement governing Participations may limit the rights of a Fund to vote on certain changes which may be made to the Loan agreement, such as waiving a breach of a covenant. However, the holder of a Participation will generally have the right to vote on certain fundamental issues such as changes in principal amount, payment dates and interest rate. Participations may entail certain risks relating to the creditworthiness of the parties from which the Participations are obtained.

A Loan is typically originated, negotiated and structured by a U.S. or non-U.S. commercial bank, insurance company, finance company or other financial institution (the "Agent") for a group of Loan investors. The Agent typically administers and enforces the Loan on behalf of the other Loan investors in the syndicate. The Agent's duties may include responsibility for the collection of principal and interest payments from the Obligor and the apportionment of these payments to the credit of all Loan investors. The Agent is also typically responsible for monitoring compliance with the covenants contained in the Loan agreement based upon reports prepared by the Obligor. In addition, an institution, typically but not always the Agent, holds any collateral on behalf of the Loan investors. In the event of a default by the Obligor, it is possible, though unlikely, that a Fund could receive a portion of the borrower's collateral. If a Fund receives collateral other than cash, any proceeds received from liquidation of such collateral will be available for investment as part of the Fund's portfolio.

In the process of buying, selling and holding Loans, a Fund may receive and/or pay certain fees. These fees are in addition to interest payments received and may include facility fees, commitment fees, commissions and prepayment penalty fees. When a Fund buys or sells a Loan it may pay a fee. In certain circumstances, a Fund may receive a prepayment penalty fee upon prepayment of a Loan.

*Additional Information concerning Senior Loans.* Senior Loans typically hold the most senior position in the capital structure of the Obligor, are typically secured with specific collateral and have a claim on the assets and/or stock of the Obligor that is senior to that held by subordinated debtholders and shareholders of the Obligor. Collateral for Senior Loans may include (i) working capital assets, such as accounts receivable and inventory;

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) tangible fixed assets, such as real property, buildings and equipment; (iii) intangible assets, such as trademarks and patent rights; and/or (iv) security interests in shares of stock of subsidiaries or affiliates.

*Additional Information concerning Junior Loans.* Junior Loans include secured and unsecured loans including subordinated loans, second lien and more Junior Loans, and Bridge Loans. Second lien and more Junior Loans ("Junior Lien Loans") are generally second or further in line in terms of repayment priority. In addition, Junior Lien Loans may have a claim on the same collateral pool as the first lien or other more senior liens or may be secured by a separate set of assets. Junior Loans generally give investors priority over general unsecured creditors in the event of an asset sale.

 

*Additional Information concerning Bridge Loans.* Bridge Loans are short-term loan arrangements (*e.g.*, 12 to 18 months) typically made by an Obligor in anticipation of intermediate-term or long-term permanent financing. Most Bridge Loans are structured as floating-rate debt with step-up provisions under which the interest rate on the Bridge Loan rises the longer the Loan remains outstanding. In addition, Bridge Loans commonly contain a conversion feature that allows the Bridge Loan investor to convert its Loan interest to senior exchange notes if the Loan has not been prepaid in full on or prior to its maturity date. Bridge Loans typically are structured as Senior Loans but may be structured as Junior Loans.

 

*Additional Information concerning Unfunded Commitments.* Unfunded commitments are contractual obligations pursuant to which a Fund agrees to invest in a Loan at a future date. Typically, a Fund receives a commitment fee for entering into the Unfunded Commitment.

 

*Additional Information concerning Synthetic Letters of Credit.* Loans include synthetic letters of credit. In a synthetic letter of credit transaction, the Lender typically creates an SPE or a credit-linked deposit account for the purpose of funding a letter of credit to the borrower. When a Fund invests in a synthetic letter of credit, the Fund is typically paid a rate based on the Lender's borrowing costs and the terms of the synthetic letter of credit. Synthetic letters of credit are typically structured as Assignments with a Fund acquiring direct rights against the Obligor.

 

*Additional Information concerning Loan Originations.* In addition to investing in Assignments and Participations, the Funds may originate Loans in which a Fund would lend money directly to a borrower by investing in limited liability companies or corporations that make loans directly to borrowers. The terms of the Loans are negotiated with borrowers in private transactions. Such Loans would be collateralized, typically with tangible fixed assets such as real property or interests in real property. Such Loans may also include mezzanine loans. Unlike Loans secured by a mortgage on real property, mezzanine loans are collateralized by an equity interest in a special purpose vehicle that owns the real property.

 

*Limitations on Investments in Loan Assignments and Participations*. If a government entity is a borrower on a Loan, the Funds will consider the government to be the issuer of an Assignment or Participation for purposes of a Fund's fundamental investment policy that it will not invest 25% or more of its total assets in securities of issuers conducting their principal business activities in the same industry (*i.e*., non-U.S. government).

 

*Risk Factors of Loans*. Loans are subject to the risks associated with debt obligations in general including interest rate risk, credit risk and market risk. When a Loan is acquired from a Lender, the risk includes the credit risk associated with the Obligor of the underlying Loan. A Fund may incur additional credit risk when a Fund acquires a Participation in a Loan from another lender because the Fund must assume the risk of insolvency or bankruptcy of the other lender from which the Loan was acquired. To the extent that Loans involve Obligors in non-U.S. or emerging markets, such Loans are subject to the risks associated with non-U.S. investments or investments in emerging markets in general. The following outlines some of the additional risks associated with Loans.

 

*High Yield Securities Risk.* The Loans that a Fund invests in may not be rated by an NRSRO, will not be registered with the SEC or any state securities commission and will not be listed on any national securities exchange. To the extent that such high yield Loans are rated, they typically will be rated below investment grade and are subject to an increased risk of default in the payment of principal and interest as well as the other risks described under *"High Yield/High Risk Securities/Junk Bonds."* Loans are vulnerable to market sentiment such that economic conditions or other events may reduce the demand for Loans and cause their value to decline rapidly and unpredictably.

*Liquidity Risk.* Although the Funds limit their investments in illiquid securities to no more than 15% of a Fund's net assets at the time of purchase, Loans that are deemed to be liquid at the time of purchase may become illiquid or less liquid. No active trading market may exist for certain Loans and certain Loans may be subject to restrictions on resale or have a limited secondary market. Certain Loans may be subject to irregular trading activity, wide bid/ask spreads and extended trade settlement periods. The inability to dispose of certain Loans in a timely fashion or at a favorable price could result in losses to a Fund.

 

*Collateral and Subordination Risk.* With respect to Loans that are secured, a Fund is subject to the risk that collateral securing the Loan will decline in value or have no value or that the Fund's lien is or will become junior in payment to other liens. A decline in value of the collateral, whether as a result of market value declines, bankruptcy proceedings or otherwise, could cause the Loan to be under collateralized or unsecured. In such event, a Fund may have the ability to require that the Obligor pledge additional collateral. A Fund, however, is subject to the risk that the Obligor may not pledge such additional collateral or a sufficient amount of collateral. In some cases, there may be no formal requirement for the Obligor to pledge additional collateral. In addition, collateral may consist of assets that may not be readily liquidated, and there is no assurance that the liquidation of such assets would satisfy an Obligor's obligation on a Loan. If a Fund was unable to obtain sufficient proceeds upon a liquidation of such assets, this could negatively affect Fund performance.

 

If an Obligor becomes involved in bankruptcy proceedings, a court may restrict the ability of a Fund to demand immediate repayment of the Loan by Obligor or otherwise liquidate the collateral. A court may also invalidate the Loan or the Fund's security interest in collateral or subordinate the Fund's rights under a Senior Loan or Junior Loan to the interest of the Obligor's other creditors, including unsecured creditors, or cause interest or principal previously paid to be refunded to the Obligor. If a court required interest or principal to be refunded, it could negatively affect Fund performance. Such action by a court could be based, for example, on a "fraudulent conveyance" claim to the effect that the Obligor did not receive fair consideration for granting the security interest in the Loan collateral to a Fund. For Senior Loans made in connection with a highly leveraged transaction, consideration for granting a security interest may be deemed inadequate if the proceeds of the Loan were not received or retained by the Obligor, but were instead paid to other persons (such as shareholders of the Obligor) in an amount which left the Obligor insolvent or without sufficient working capital. There are also other events, such as the failure to perfect a security interest due to faulty documentation or faulty official filings, which could lead to the invalidation of a Fund's security interest in Loan collateral. If a Fund's security interest in Loan collateral is invalidated or a Senior Loan were subordinated to other debt of an Obligor in bankruptcy or other proceedings, the Fund would have substantially lower recovery, and perhaps no recovery on the full amount of the principal and interest due on the Loan, or the Fund could have to refund interest. Lenders and investors in Loans can be sued by other creditors and shareholders of the Obligors. Losses can be greater than the original Loan amount and occur years after the principal and interest on the Loan have been repaid.

*Agent Risk.* Selling Lenders, Agents and other entities who may be positioned between a Fund and the Obligor will likely conduct their principal business activities in the banking, finance and financial services industries. Investments in Loans may be more impacted by a single economic, political or regulatory occurrence affecting such industries than other types of investments. Entities engaged in such industries may be more susceptible to, among other things, fluctuations in interest rates, changes in the Federal Open Market Committee's monetary policy, government regulations concerning such industries and concerning capital raising activities generally and fluctuations in the financial markets generally. An Agent, Lender or other entity positioned between a Fund and the Obligor may become insolvent or enter FDIC receivership or bankruptcy.

 

A Fund might incur certain costs and delays in realizing payment on a Loan or suffer a loss of principal and/ or interest if assets or interests held by the Agent, Lender or other party positioned between the Fund and the Obligor are determined to be subject to the claims of the Agent's, Lender's or such other party's creditors.

*Regulatory Changes.* To the extent that legislation or state or federal regulators that regulate certain financial institutions impose additional requirements or restrictions with respect to the ability of such institutions to make Loans, particularly in connection with highly leveraged transactions, the availability of Loans for investment may be adversely affected. Furthermore, such legislation or regulation could depress the market value of Loans held by a Fund.

 

*Inventory Risk.* Affiliates of the Adviser may participate in the primary and secondary market for Loans. Because of limitations imposed by applicable law, the presence of the Adviser's affiliates in the Loan market may restrict a Fund's ability to acquire some Loans, affect the timing of such acquisition or affect the price at which the Loan is acquired.

 

*Information Risk*. There is typically less publicly available information concerning Loans than other types of fixed income investments. As a result, a Fund generally will be dependent on reports and other information provided by the Obligor, either directly or through an Agent, to evaluate the Obligor's creditworthiness or to determine the Obligor's compliance with the covenants and other terms of the Loan Agreement. Such reliance may make investments in Loans more susceptible to fraud than other types of investments. In addition, because the Adviser may wish to invest in the publicly traded securities of an Obligor, it may not have access to material non-public information regarding the Obligor to which other Loan investors have access.

 

*Junior Loan Risk.* Junior Loans are subject to the same general risks inherent to any Loan investment. Due to their lower place in the Obligor's capital structure and possible unsecured status, Junior Loans involve a higher degree of overall risk than Senior Loans of the same Obligor. Junior Loans that are Bridge Loans generally carry the expectation that the Obligor will be able to obtain permanent financing in the near future. Any delay in obtaining permanent financing subjects the Bridge Loan investor to increased risk. An Obligor's use of Bridge Loans also involves the risk that the Obligor may be unable to locate permanent financing to replace the Bridge Loan, which may impair the Obligor's perceived creditworthiness.

 

*Mezzanine Loan Risk.* In addition to the risk factors described above, mezzanine loans are subject to additional risks. Unlike conventional mortgage loans, mezzanine loans are not secured by a mortgage on the underlying real property but rather by a pledge of equity interests (such as a partnership or limited liability company membership) in the property owner or another company in the ownership structures that has control over the property. Such companies are typically structured as special purpose entities. Generally, mezzanine loans may be more highly leveraged than other types of Loans and subordinate in the capital structure of the Obligor. While foreclosure of a mezzanine loan generally takes substantially less time than foreclosure of a traditional mortgage, the holders of a mezzanine loan have different remedies available versus the holder of a first lien mortgage loan. In addition, a sale of the underlying real property would not be unencumbered, and thus would be subject to encumbrances by more senior mortgages and liens of other creditors. Upon foreclosure of a mezzanine loan, the holder of the mezzanine loan acquires an equity interest in the Obligor. However, because of the subordinate nature of a mezzanine loan, the real property continues to be subject to the lien of the mortgage and other liens encumbering the real estate. In the event the holder of a mezzanine loan forecloses on its equity collateral, the holder may need to cure the Obligor's existing mortgage defaults or, to the extent permissible under the governing agreements, sell the property to pay off other creditors. To the extent that the amount of mortgages and senior indebtedness and liens exceed the value of the real estate, the collateral underlying the mezzanine loan may have little or no value.

 

*Foreclosure Risk.* There may be additional costs associated with enforcing a Fund's remedies under a Loan including additional legal costs and payment of real property transfer taxes upon foreclosure in certain jurisdictions. As a result of these additional costs, a Fund may determine that pursuing foreclosure on the Loan collateral is not worth the associated costs. In addition, if a Fund incurs costs and the collateral loses value or is not recovered by the Fund in foreclosure, the Fund could lose more than its original investment in the Loan. Foreclosure risk is heightened for Junior Loans, including certain mezzanine loans.

 

*Consumer Loans Risk.* Investments in consumer loans expose the Funds to additional risks beyond those normally associated with more traditional debt instruments. A Fund's ability to receive payments in connection with the loan depends primarily on the financial condition of the borrower and whether or not a loan is secured by collateral, although there is no assurance that the collateral securing a loan will be sufficient to satisfy the loan obligation. In addition, bank loans often have contractual restrictions on resale, which can delay the sale and adversely impact the sale price. Transactions involving bank loans may have significantly longer settlement periods than more traditional investments (settlement can take longer than 7 days) and often involve borrowers whose financial condition is troubled or highly leveraged, which increases the risk that a Fund may not receive its proceeds in a timely manner or that the Fund may incur losses in order to pay redemption proceeds to its shareholders. In addition, loans are not registered under the federal securities laws like stocks and bonds, so investors in loans have less protection against improper practices than investors in registered securities.

**Master Limited Partnerships** 

MLPs are passive investment vehicles, in which 85% to 90% of operating profits and losses are usually passed through the ownership structure to the limited partners. This pass through creates passive income or losses, along with dividend and investment income. MLPs investment returns are enhanced during periods of declining/low interest rates and tend to be negatively influenced when interest rates are rising. As an income vehicle, the unit price can be influenced by general interest rate trends independent of specific underlying fundamentals. In addition, most MLPs are fairly leveraged and typically carry a portion of "floating" rate debt. As such, a significant upward swing in interest rates would also drive interest expense higher. Furthermore, most MLPs grow by acquisitions partly financed by debt, and higher interest rates could make it more difficult to transact accretive acquisitions.

*Limitations on the use of MLPs:* To maintain Internal Revenue Service ("IRS") tax exempt status, investments in MLPs are limited to 25% of net assets.

 

**Mortgage-Related Securities** 

**Mortgages (Directly Held).** Mortgages are debt instruments secured by real property. Unlike MBS, which generally represent an interest in a pool of mortgages, direct investments in mortgages involve prepayment and credit risks of an individual issuer and real property. Consequently, these investments require different investment and credit analysis by the Adviser.

Directly placed mortgages may include residential mortgages, multifamily mortgages, mortgages on cooperative apartment buildings, commercial mortgages, and sale-leasebacks. These investments are backed by assets such as office buildings, shopping centers, retail stores, warehouses, apartment buildings and single-family dwellings. In the event that a Fund forecloses on any non-performing mortgage, and acquires a direct interest in the real property, such Fund will be subject to the risks generally associated with the ownership of real property. There may be fluctuations in the market value of the foreclosed property and its occupancy rates, rent schedules and operating expenses. There may also be adverse changes in local, regional or general economic conditions, deterioration of the real estate market and the financial circumstances of tenants and sellers, unfavorable changes in zoning, building, environmental and other laws, increased real property taxes, rising interest rates, reduced availability and increased cost of mortgage borrowings, the need for unanticipated renovations, unexpected increases in the cost of energy, environmental factors, acts of God and other factors which are beyond the control of a Fund or the Adviser. Hazardous or toxic substances may be present on, at or under the mortgaged property and adversely affect the value of the property. In addition, the owners of property containing such substances may be held responsible, under various laws, for containing, monitoring, removing or cleaning up such substances. The presence of such substances may also provide a basis for other claims by third parties. Costs of clean up or of liabilities to third parties may exceed the value of the property. In addition, these risks may be uninsurable. In light of these and similar risks, it may be impossible to dispose profitably of properties in foreclosure.

**Mortgage-Backed Securities (CMOs and REMICs).** MBS include CMOs and REMICs. A REMIC is a CMO that qualifies for special tax treatment under the Code and invests in certain mortgages principally secured by interests in real property and other permitted investments.

MBS represent pools of mortgage loans assembled for sale to investors by:

● various governmental agencies such as Ginnie Mae;

● organizations such as Fannie Mae and Freddie Mac; and

● non-governmental issuers such as commercial banks, savings and loan institutions, mortgage bankers, and private mortgage insurance companies (non-governmental mortgage securities cannot be treated as U.S. government securities for purposes of investment policies).

There are a number of important differences among the agencies and instrumentalities of the U.S. government that issue mortgage-related securities and among the securities that they issue.

*Ginnie Mae Securities*. Mortgage-related securities issued by Ginnie Mae include Ginnie Mae Mortgage Pass-Through Certificates which are guaranteed as to the timely payment of principal and interest by Ginnie Mae. Ginnie Mae's guarantee is backed by the full faith and credit of the U.S. Ginnie Mae is a wholly-owned U.S. government corporation within the Department of Housing and Urban Development. Ginnie Mae certificates also are supported by the authority of Ginnie Mae to borrow funds from the U.S. Treasury to make payments under its guarantee.

 

*Fannie Mae Securities.* Mortgage-related securities issued by Fannie Mae include Fannie Mae Guaranteed Mortgage Pass-Through Certificates which are solely the obligations of Fannie Mae and are not backed by or entitled to the full faith and credit of the U.S. Fannie Mae is a government-sponsored organization owned entirely by private stockholders. Fannie Mae Certificates are guaranteed as to timely payment of the principal and interest by Fannie Mae.

 

*Freddie Mac Securities.* Mortgage-related securities issued by Freddie Mac include Freddie Mac Mortgage Participation Certificates ("PCs"). Freddie Mac is a corporate instrumentality of the U.S., created pursuant to an Act of Congress, which is owned by private stockholders. Freddie Mac Certificates are not guaranteed by the U.S. or by any Federal Home Loan Bank and do not constitute a debt or obligation of the U.S. or of any Federal Home Loan Bank. Freddie Mac Certificates entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac guarantees either ultimate collection or timely payment of all principal payments on the underlying mortgage loans. When Freddie Mac does not guarantee timely payment of principal, Freddie Mac may remit the amount due on account of its guarantee of ultimate payment of principal at any time after default on an underlying mortgage, but in no event later than one year after it becomes payable.

 

For additional information on recent events impacting Fannie Mae and Freddie Mac securities, see "*Events Regarding Fannie Mae and Freddie Mac Securities"* under the heading "Risk Factors of Mortgage-Related Securities" below.

CMOs and guaranteed REMIC pass-through certificates ("REMIC Certificates") issued by Fannie Mae, Freddie Mac, Ginnie Mae and private issuers are types of multiple class pass-through securities. Investors may purchase beneficial interests in REMICs, which are known as "regular" interests or "residual" interests. The Funds do not currently intend to purchase residual interests in REMICs. The REMIC Certificates represent beneficial ownership interests in a REMIC Trust, generally consisting of mortgage loans or Fannie Mae, Freddie Mac or Ginnie Mae guaranteed mortgage pass-through certificates (the "Mortgage Assets"). The obligations of Fannie Mae, Freddie Mac or Ginnie Mae under their respective guaranty of the REMIC Certificates are obligations solely of Fannie Mae, Freddie Mac or Ginnie Mae, respectively.

*Fannie Mae REMIC Certificates.* Fannie Mae REMIC Certificates are issued and guaranteed as to timely distribution of principal and interest by Fannie Mae. In addition, Fannie Mae will be obligated to distribute the principal balance of each class of REMIC Certificates in full, whether or not sufficient funds are otherwise available.

 

*Freddie Mac REMIC Certificates.* Freddie Mac guarantees the timely payment of interest, and also guarantees the payment of principal as payments are required to be made on the underlying mortgage PCs. PCs represent undivided interests in specified residential mortgages or Participation therein purchased by Freddie Mac and placed in a PC pool. With respect to principal payments on PCs, Freddie Mac generally guarantees ultimate collection of all principal of the related mortgage loans without offset or deduction. Freddie Mac also guarantees timely payment of principal on certain PCs referred to as "Gold PCs."

*Ginnie Mae REMIC Certificates.* Ginnie Mae guarantees the full and timely payment of interest and principal on each class of securities (in accordance with the terms of those classes as specified in the related offering circular supplement). The Ginnie Mae guarantee is backed by the full faith and credit of the U.S.

 

REMIC Certificates issued by Fannie Mae, Freddie Mac and Ginnie Mae are treated as U.S. Government securities for purposes of investment policies.

CMOs and REMIC Certificates provide for the redistribution of cash flow to multiple classes. Each class of CMOs or REMIC Certificates, often referred to as a "tranche," is issued at a specific adjustable or fixed interest rate and must be fully retired no later than its final distribution date. This reallocation of interest and principal results in the redistribution of prepayment risk across different classes. This allows for the creation of bonds with more or less risk than the underlying collateral exhibits. Principal prepayments on the mortgage loans or the Mortgage Assets underlying the CMOs or REMIC Certificates may cause some or all of the classes of CMOs or REMIC Certificates to be retired substantially earlier than their final distribution dates. Generally, interest is paid or accrues on all classes of CMOs or REMIC Certificates on a monthly basis.

The principal of and interest on the Mortgage Assets may be allocated among the several classes of CMOs or REMIC Certificates in various ways. In certain structures (known as "sequential pay" CMOs or REMIC Certificates), payments of principal, including any principal prepayments, on the Mortgage Assets generally are applied to the classes of CMOs or REMIC Certificates in the order of their respective final distribution dates. Thus, no payment of principal will be made on any class of sequential pay CMOs or REMIC Certificates until all other classes having an earlier final distribution date have been paid in full.

Additional structures of CMOs and REMIC Certificates include, among others, principal only structures, interest only structures, inverse floaters and "parallel pay" CMOs and REMIC Certificates. Certain of these structures may be more volatile than other types of CMO and REMIC structures. Parallel pay CMOs or REMIC Certificates are those which are structured to apply principal payments and prepayments of the Mortgage Assets to two or more classes concurrently on a proportionate or disproportionate basis. These simultaneous payments are taken into account in calculating the final distribution date of each class.

A wide variety of REMIC Certificates may be issued in the parallel pay or sequential pay structures. These securities include accrual certificates (also known as "Z-Bonds"), which only accrue interest at a specified rate until all other certificates having an earlier final distribution date have been retired and are converted thereafter to an interest-paying security, and planned amortization class ("PAC") certificates, which are parallel pay REMIC Certificates which generally require that specified amounts of principal be applied on each payment date to one or more classes of REMIC Certificates (the "PAC Certificates"), even though all other principal payments and prepayments of the Mortgage Assets are then required to be applied to one or more other classes of the certificates. The scheduled principal payments for the PAC Certificates generally have the highest priority on each payment date after interest due has been paid to all classes entitled to receive interest currently. Shortfalls, if any, are added to the amount of principal payable on the next payment date. The PAC Certificate payment schedule is taken into account in calculating the final distribution date of each class of PAC. In order to create PAC tranches, one or more tranches generally must be created that absorb most of the volatility in the underlying Mortgage Assets. These tranches tend to have market prices and yields that are much more volatile than the PAC classes. The Z-Bonds in which a Fund may invest may bear the same non-credit-related risks as do other types of Z-Bonds. Z-Bonds in which a Fund may invest will not include residual interest.

Total Annual Fund Operating Expenses set forth in the fee tables and "Financial Highlights" section of the Funds' Prospectus do not include any expenses associated with investments in certain structured or synthetic products that may rely on the exception for the definition of "investment company" provided by section 3(c)(1) or 3(c)(7) of the Company Act.

**Mortgage TBAs.** A Fund may invest in mortgage pass-through securities eligible to be sold in the "to-be-announced" or TBA market ("Mortgage TBAs"). Mortgage TBAs provide for the forward or delayed delivery of the underlying instrument with settlement up to 180 days. The term TBA comes from the fact that the actual MBS that will be delivered to fulfill a TBA trade is not designated at the time the trade is made, but rather is generally announced 48 hours before the settlement date. Mortgage TBAs are subject to the risks described in the "When-Issued Securities, Delayed Delivery Securities and Forward Commitments" section.

**Mortgage Dollar Rolls.** In a mortgage dollar roll transaction, one party sells MBS, principally Mortgage TBAs, for delivery in the current month and simultaneously contracts with the same counterparty to repurchase similar (same type, coupon and maturity) but not identical securities on a specified future date. When a Fund enters into mortgage dollar rolls, the Fund will earmark and reserve until the settlement date Fund assets, in cash or liquid securities, in an amount equal to the forward purchase price. During the period between the sale and repurchase in a mortgage dollar roll transaction, a Fund will not be entitled to receive interest and principal payments on securities sold. Losses may arise due to changes in the value of the securities or if the counterparty does not perform under the terms of the agreement. If the counterparty files for bankruptcy or becomes insolvent, the Fund's right to repurchase or sell securities may be limited. Mortgage dollar rolls may be subject to leverage risks. In addition, mortgage dollar rolls may increase interest rate risk and result in an increased portfolio turnover rate which increases costs and may increase taxable gains. The benefits of mortgage dollar rolls may depend upon the Adviser's ability to predict mortgage prepayments and interest rates. There is no assurance that mortgage dollar rolls can be successfully employed. For purposes of diversification and investment limitations, mortgage dollar rolls are considered to be MBS.

**Stripped Mortgage-Backed Securities.** SMBS are derivative multi- class mortgage securities issued outside the REMIC or CMO structure. SMBS are usually structured with two classes that receive different proportions of the interest and principal distributions from a pool of mortgage assets. A common type of SMBS will have one class receiving all of the interest from the mortgage assets, while the other class will receive all of the principal. Mortgage IOs receive monthly interest payments based upon a notional amount that declines over time as a result of the normal monthly amortization and unscheduled prepayments of principal on the associated mortgage POs.

In addition to the risks applicable to Mortgage-Related Securities in general, SMBS are subject to the following additional risks:

*Prepayment/Interest Rate Sensitivity.* SMBS are extremely sensitive to changes in prepayments and interest rates. Even though these securities have been guaranteed by an agency or instrumentality of the U.S. government, under certain interest rate or prepayment rate scenarios, a Fund may lose money on investments in SMBS.

 

*Interest Only SMBS.* Changes in prepayment rates can cause the return on investment in IOs to be highly volatile. Under extremely high prepayment conditions, IOs can incur significant losses.

 

*Principal Only SMBS.* POs are bought at a discount to the ultimate principal repayment value. The rate of return on a PO will vary with prepayments, rising as prepayments increase and falling as prepayments decrease. Generally, the market value of these securities is unusually volatile in response to changes in interest rates.

 

*Yield Characteristics.* Although SMBS may yield more than other MBS, their cash flow patterns are more volatile and there is a greater risk that any premium paid will not be fully recouped. The Adviser will seek to manage these risks (and potential benefits) by investing in a variety of such securities and by using certain analytical and hedging techniques.

 

**Adjustable Rate Mortgage Loans.** ARMs eligible for inclusion in a mortgage pool will generally provide for a fixed initial mortgage interest rate for a specified period of time. Thereafter, the interest rates (the "Mortgage Interest Rates") may be subject to periodic adjustment based on changes in the applicable index rate (the "Index Rate"). The adjusted rate would be equal to the Index Rate plus a gross margin, which is a fixed percentage spread over the Index Rate established for each ARM at the time of its origination.

Adjustable interest rates can cause payment increases that some borrowers may find difficult to make. However, certain ARMs may provide that the Mortgage Interest Rate may not be adjusted to a rate above an applicable lifetime maximum rate or below an applicable lifetime minimum rate for such ARM. Certain ARMs may also be subject to limitations on the maximum amount by which the Mortgage Interest Rate may adjust for any single adjustment period (the "Maximum Adjustment"). Other ARMs ("Negatively Amortizing ARMs") may provide instead or as well for limitations on changes in the monthly payment on such ARMs. Limitations on monthly payments can result in monthly payments which are greater or less than the amount necessary to amortize a Negatively Amortizing ARM by its maturity at the Mortgage Interest Rate in effect in any particular month. In the event that a monthly payment is not sufficient to pay the interest accruing on a Negatively Amortizing ARM, any such excess interest is added to the principal balance of the loan, causing negative amortization and will be repaid through future monthly payments. It may take borrowers under Negatively Amortizing ARMs longer periods of time to achieve equity and may increase the likelihood of default by such borrowers. In the event that a monthly payment exceeds the sum of the interest accrued at the applicable Mortgage Interest Rate and the principal payment which would have been necessary to amortize the outstanding principal balance over the remaining term of the loan, the excess (or "accelerated amortization") further reduces the principal balance of the ARM. Negatively Amortizing ARMs do not provide for the extension of their original maturity to accommodate changes in their Mortgage Interest Rate. As a result, unless there is a periodic recalculation of the payment amount (which there generally is), the final payment may be substantially larger than the other payments. These limitations on periodic increases in interest rates and on changes in monthly payments protect borrowers from unlimited interest rate and payment increases.

Certain ARMs may provide for periodic adjustments of scheduled payments in order to amortize fully the mortgage loan by its stated maturity. Other ARMs may permit their stated maturity to be extended or shortened in accordance with the portion of each payment that is applied to interest as affected by the periodic interest rate adjustments.

There are two main categories of indices which provide the basis for rate adjustments on ARMs: those based on U.S. Treasury securities and those derived from a calculated measure such as a cost of funds index or a moving average of mortgage rates. Commonly utilized indices include the one-year, three-year and five-year constant maturity Treasury bill rates, the three-month Treasury bill rate, the 180-day Treasury bill rate, rates on longer-term Treasury securities, the 11th District Federal Home Loan Bank Cost of Funds, the National Median Cost of Funds, Secured Overnight Financing Rate, the prime rate of a specific bank, or commercial paper rates. Some indices, such as the one-year constant maturity Treasury rate, closely mirror changes in market interest rate levels. Others, such as the 11th District Federal Home Loan Bank Cost of Funds index, tend to lag behind changes in market rate levels and tend to be somewhat less volatile. The degree of volatility in the market value of a Fund's portfolio, and therefore, in the NAV of a Fund's Shares will be a function of the length of the interest rate reset periods and the degree of volatility in the applicable indices.

In general, changes in both prepayment rates and interest rates will change the yield on MBS. The rate of principal prepayments with respect to ARMs has fluctuated in recent years. As is the case with fixed mortgage loans, ARMs may be subject to a greater rate of principal prepayments in a declining interest rate environment. For example, if prevailing interest rates fall significantly, ARMs could be subject to higher prepayment rates than if prevailing interest rates remain constant because the availability of fixed rate mortgage loans at competitive interest rates may encourage mortgagors to refinance their ARMs to "lock-in" a lower fixed interest rate. Conversely, if prevailing interest rates rise significantly, ARMs may prepay at lower rates than if prevailing rates remain at or below those in effect at the time such ARMs were originated. As with fixed rate mortgages, there can be no certainty as to the rate of prepayments on the ARMs in either stable or changing interest rate environments. In addition, there can be no certainty as to whether increases in the principal balances of the ARMs due to the addition of deferred interest may result in a default rate higher than that on ARMs that do not provide for negative amortization.

Other factors affecting prepayment of ARMs include changes in mortgagors' housing needs, job transfers, unemployment, mortgagors' net equity in the mortgage properties and servicing decisions.

**Risk Factors of Mortgage-Related Securities.** The following is a summary of certain risks associated with Mortgage-Related Securities:

*Guarantor Risk.* There can be no assurance that the U.S. government would provide financial support to Fannie Mae or Freddie Mac if necessary in the future. Although certain mortgage-related securities are guaranteed by a third party or otherwise similarly secured, the market value of the security, which may fluctuate, is not so secured.

 

*Interest Rate Sensitivity.* If a Fund purchases a mortgage-related security at a premium, that portion may be lost if there is a decline in the market value of the security whether resulting from changes in interest rates or prepayments in the underlying mortgage collateral. As with other interest-bearing securities, the prices of such securities are inversely affected by changes in interest rates. Although the value of a mortgage-related security may decline when interest rates rise, the converse is not necessarily true since in periods of declining interest rates the mortgages underlying the securities are prone to prepayment. For this and other reasons, a mortgage-related security's stated maturity may be shortened by unscheduled prepayments on the underlying mortgages and, therefore, it is not possible to predict accurately the security's return to a Fund. In addition, regular payments received in respect of mortgage-related securities include both interest and principal. No assurance can be given as to the return a Fund will receive when these amounts are reinvested.

*Market Value.* The market value of a Fund's adjustable rate MBS may be adversely affected if interest rates increase faster than the rates of interest payable on such securities or by the ARMs underlying such securities. Furthermore, adjustable rate MBS or the mortgage loans underlying such securities may contain provisions limiting the amount by which rates may be adjusted upward and downward and may limit the amount by which monthly payments may be increased or decreased to accommodate upward and downward adjustments in interest rates. When the market value of the properties underlying the MBS suffer broad declines on a regional or national level, the values of the corresponding MBS or MBS as a whole, may be adversely affected as well.

 

*Prepayments.* Adjustable rate MBS have less potential for capital appreciation than fixed rate MBS because their coupon rates will decline in response to market interest rate declines. The market value of fixed rate MBS may be adversely affected as a result of increases in interest rates and, because of the risk of unscheduled principal prepayments, may benefit less than other fixed rate securities of similar maturity from declining interest rates. Finally, to the extent MBS are purchased at a premium, mortgage foreclosures and unscheduled principal prepayments may result in some loss of a Fund's principal investment to the extent of the premium paid. On the other hand, if such securities are purchased at a discount, both a scheduled payment of principal and an unscheduled prepayment of principal will increase current and total returns and will accelerate the recognition of income.

 

*Yield Characteristics.* The yield characteristics of MBS differ from those of traditional fixed income securities. The major differences typically include more frequent interest and principal payments, usually monthly, and the possibility that prepayments of principal may be made at any time. Prepayment rates are influenced by changes in current interest rates and a variety of economic, geographic, social and other factors and cannot be predicted with certainty. As with fixed rate mortgage loans, ARMs may be subject to a greater prepayment rate in a declining interest rate environment. The yields to maturity of the MBS in which a Fund invests will be affected by the actual rate of payment (including prepayments) of principal of the underlying mortgage loans. The mortgage loans underlying such securities generally may be prepaid at any time without penalty. In a fluctuating interest rate environment, a predominant factor affecting the prepayment rate on a pool of mortgage loans is the difference between the interest rates on the mortgage loans and prevailing mortgage loan interest rates taking into account the cost of any refinancing. In general, if mortgage loan interest rates fall sufficiently below the interest rates on fixed rate mortgage loans underlying mortgage pass-through securities, the rate of prepayment would be expected to increase. Conversely, if mortgage loan interest rates rise above the interest rates on the fixed rate mortgage loans underlying the mortgage pass-through securities, the rate of prepayment may be expected to decrease.

 

*Events Regarding Fannie Mae and Freddie Mac Securities*. On September 6, 2008, the Federal Housing Finance Agency ("FHFA") placed Fannie Mae and Freddie Mac into conservatorship. As the conservator, FHFA succeeded to all rights, titles, powers and privileges of Fannie Mae and Freddie Mac and of any stockholder, officer or director of Fannie Mae and Freddie Mac with respect to Fannie Mae and Freddie Mac and the assets of Fannie Mae and Freddie Mac. FHFA selected a new chief executive officer and chairman of the board of directors for each of Fannie Mae and Freddie Mac. In connection with the conservatorship, the U.S. Treasury entered into a Senior Preferred Stock Purchase Agreement with each of Fannie Mae and Freddie Mac pursuant to which the U.S. Treasury will purchase up to an aggregate of $100 billion of each of Fannie Mae and Freddie Mac to maintain a positive net worth in each enterprise. This agreement contains various covenants, discussed below, that severely limit each enterprise's operations. In exchange for entering into these agreements, the U.S. Treasury received $1 billion of each enterprise's senior preferred stock and warrants to purchase 79.9% of each enterprise's common stock. In 2009, the U.S. Treasury announced that it was doubling the size of its commitment to each enterprise under the Senior Preferred Stock Program to $200 billion. The U.S. Treasury's obligations under the Senior Preferred Stock Program are for an indefinite period of time for a maximum amount of $200 billion per enterprise. In 2009, the U.S. Treasury further amended the Senior Preferred Stock Purchase Agreement to allow the cap on the U.S. Treasury's funding commitment to increase as necessary to accommodate any cumulative reduction in Fannie Mae's and Freddie Mac's net worth through the end of 2012. In August 2012, the Senior Preferred Stock Purchase Agreement was further amended to, among other things, accelerate the wind down of the retained portfolio, terminate the requirement that Fannie Mae and Freddie Mac each pay a 10% dividend annually on all amounts received under the funding commitment, and require the submission of an annual risk management plan to the U.S. Treasury.

Fannie Mae and Freddie Mac are continuing to operate as going concerns while in conservatorship and each remain liable for all of its obligations, including its guaranty obligations, associated with its MBS. The Senior Preferred Stock Purchase Agreement is intended to enhance each of Fannie Mae's and Freddie Mac's ability to meet its obligations. The FHFA has indicated that the conservatorship of each enterprise will end when the director of FHFA determines that FHFA's plan to restore the enterprise to a safe and solvent condition has been completed.

Under the Federal Housing Finance Regulatory Reform Act of 2008, as amended, (the "Reform Act"), which was included as part of the Housing and Economic Recovery Act of 2008, as amended, FHFA, as conservator or receiver, has the power to repudiate any contract entered into by Fannie Mae or Freddie Mac prior to FHFA's appointment as conservator or receiver, as applicable, if FHFA determines, in its sole discretion, that performance of the contract is burdensome and that repudiation of the contract promotes the orderly administration of Fannie Mae's or Freddie Mac's affairs. The Reform Act requires FHFA to exercise its right to repudiate any contract within a reasonable period of time after its appointment as conservator or receiver. FHFA, in its capacity as conservator, has indicated that it has no intention to repudiate the guaranty obligations of Fannie Mae or Freddie Mac because FHFA views repudiation as incompatible with the goals of the conservatorship. However, in the event that FHFA, as conservator or if it is later appointed as receiver for Fannie Mae or Freddie Mac, were to repudiate any such guaranty obligation, the conservatorship or receivership estate, as applicable, would be liable for actual direct compensatory damages in accordance with the provisions of the Reform Act. Any such liability could be satisfied only to the extent of Fannie Mae's or Freddie Mac's assets available therefor. In the event of repudiation, the payments of interest to holders of Fannie Mae or Freddie Mac MBS would be reduced if payments on the mortgage loans represented in the mortgage loan groups related to such MBS are not made by the borrowers or advanced by the servicer. Any actual direct compensatory damages for repudiating these guaranty obligations may not be sufficient to offset any shortfalls experienced by such MBS holders. Further, in its capacity as conservator or receiver, FHFA has the right to transfer or sell any asset or liability of Fannie Mae or Freddie Mac without any approval, assignment or consent. Although FHFA has stated that it has no present intention to do so, if FHFA, as conservator or receiver, were to transfer any such guaranty obligation to another party, holders of Fannie Mae or Freddie Mac MBS would have to rely on that party for satisfaction of the guaranty obligation and would be exposed to the credit risk of that party.

In addition, certain rights provided to holders of MBS issued by Fannie Mae and Freddie Mac under the operative documents related to such securities may not be enforced against FHFA, or enforcement of such rights may be delayed, during the conservatorship or any future receivership. The operative documents for Fannie Mae and Freddie Mac MBS may provide (or with respect to securities issued prior to the date of the appointment of the conservator may have provided) that upon the occurrence of an event of default on the part of Fannie Mae or Freddie Mac, in its capacity as guarantor, which includes the appointment of a conservator or receiver, holders of such MBS have the right to replace Fannie Mae or Freddie Mac as trustee if the requisite percentage of MBS holders consent. The Reform Act prevents MBS holders from enforcing such rights if the event of default arises solely because a conservator or receiver has been appointed. The Reform Act also provides that no person may exercise any right or power to terminate, accelerate or declare an event of default under certain contracts to which Fannie Mae or Freddie Mac is a party, or obtain possession of or exercise control over any property of Fannie Mae or Freddie Mac, or affect any contractual rights of Fannie Mae or Freddie Mac, without the approval of FHFA, as conservator or receiver, for a period of 45 or 90 days following the appointment of FHFA as conservator or receiver, respectively.

In addition, in a February 2011 report to Congress from the U.S. Treasury and the Department of Housing and Urban Development, the Obama administration provided a plan to reform America's housing finance market. The plan would reduce the role of and eventually eliminate Fannie Mae and Freddie Mac. Notably, the plan does not propose similar significant changes to Ginnie Mae, which guarantees payments on mortgage-related securities backed by federally insured or guaranteed loans such as those issued by the Federal Housing Association or guaranteed by the Department of Veterans Affairs. The report also identified three proposals for Congress and the administration to consider for the long-term structure of the housing finance markets after the elimination of Fannie Mae and Freddie Mac, including implementing: (i) a privatized system of housing finance that limits government insurance to very limited groups of creditworthy low- and moderate-income borrowers; (ii) a privatized system with a government backstop mechanism that would allow the government to insure a larger share of the housing finance market during a future housing crisis; and (iii) a privatized system where the government would offer reinsurance to holders of certain highly-rated mortgage-related securities insured by private insurers and would pay out under the reinsurance arrangements only if the private mortgage insurers were insolvent.

The conditions attached to the financial contribution made by the U.S. Treasury to Freddie Mac and Fannie Mae and the issuance of senior preferred stock place significant restrictions on the activities of Freddie Mac and Fannie Mae. Freddie Mac and Fannie Mae must obtain the consent of the U.S. Treasury to, among other things: (i) make any payment to purchase or redeem its capital stock or pay any dividend other than in respect of the senior preferred stock, (ii) issue capital stock of any kind, (iii) terminate the conservatorship of the FHFA except in connection with a receivership, or (iv) increase its debt beyond certain specified levels. In addition, significant restrictions are placed on the maximum size of each of Freddie Mac's and Fannie Mae's respective portfolios of mortgages and mortgage- backed securities, and the purchase agreements entered into by Freddie Mac and Fannie Mae provide that the maximum size of their portfolios of these assets must decrease by a specified percentage each year. The future status and role of Freddie Mac and Fannie Mae could be impacted by (among other things) the actions taken and restrictions placed on Freddie Mac and Fannie Mae by the FHFA in is role as conservator, the restrictions placed on Freddie Mac's and Fannie Mae's operations and activities as a result of the senior preferred stock investment made by the U.S. Treasury, market responses to developments at Freddie Mac and Fannie Mac, and future legislative and regulatory action that alters the operations, ownership, structure and/or mission of these institutions, each of which may, in turn, impact the value of, and cash flows on, any MBS guaranteed by Freddie Mac and Fannie Mae, including any such MBS held by a Fund.

**Municipal Securities** 

Municipal Securities are issued to obtain funds for a wide variety of reasons. For example, Municipal Securities may be issued to obtain funding for the construction of a wide range of public facilities such as bridges, highways, roads, schools, waterworks and sewer systems, and other utilities.

Other public purposes for which Municipal Securities may be issued include: (i) refunding outstanding obligations; (ii) obtaining funds for general operating expenses; and (iii) obtaining funds to lend to other public institutions and facilities.

In addition, certain debt obligations known as "Private Activity Bonds" may be issued by or on behalf of municipalities and public authorities to obtain funds to provide:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. water, sewage and solid waste facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. qualified residential rental projects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. certain local electric, gas and other heating or cooling facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. qualified hazardous waste facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. high-speed intercity rail facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. governmentally-owned airports, docks and wharves and mass transportation facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. qualified mortgages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. student loan and redevelopment bonds; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. bonds used for certain organizations exempt from federal income taxation.

Certain debt obligations known as "Industrial Development Bonds" under prior federal tax law may have been issued by or on behalf of public authorities to obtain funds to provide:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. privately operated housing facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. sports facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. industrial parks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. convention or trade show facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. airport, mass transit, port or parking facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. air or water pollution control facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. sewage or solid waste disposal facilities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. facilities for water supply.

Other private activity bonds and industrial development bonds issued to fund the construction, improvement, equipment or repair of privately-operated industrial, distribution, research, or commercial facilities may also be Municipal Securities, however the size of such issues is limited under current and prior federal tax law. The aggregate amount of most private activity bonds and industrial development bonds is limited (except in the case of certain types of facilities) under federal tax law by an annual "volume cap." The volume cap limits the annual aggregate principal amount of such obligations issued by or on behalf of all governmental instrumentalities in the state.

The two principal classifications of Municipal Securities consist of "general obligation" and "limited" (or revenue) issues. General obligation bonds are obligations involving the credit of an issuer possessing taxing power and are payable from the issuer's general unrestricted revenues and not from any particular fund or source. The characteristics and method of enforcement of general obligation bonds vary according to the law applicable to the particular issuer, and payment may be dependent upon appropriation by the issuer's legislative body. Limited obligation bonds are payable only from the revenues derived from a particular facility or class of facilities or, in some cases, from the proceeds of a special excise or other specific revenue source. Private activity bonds and industrial development bonds generally are revenue bonds and thus not payable from the unrestricted revenues of the issuer. The credit and quality of such bonds is generally related to the credit of the bank selected to provide the letter of credit underlying the bond. Payment of principal of and interest on industrial development revenue bonds is the responsibility of the corporate user (and any guarantor).

A Fund may also acquire "moral obligation" issues, which are normally issued by special purpose authorities, and in other tax-exempt investments including pollution control bonds and tax-exempt commercial paper. Each Fund that may purchase municipal bonds may purchase: (1) Short-term tax-exempt General Obligations Notes; (2) Tax Anticipation Notes; (3) Bond Anticipation Notes; (4) Revenue Anticipation Notes; (5) Project Notes; and (6) other forms of short-term tax-exempt loans.

Such notes are issued with a short-term maturity in anticipation of the receipt of tax funds, the proceeds of bond placements, or other revenues. Project Notes are issued by a state or local housing agency and are sold by the Department of Housing and Urban Development. While the issuing agency has the primary obligation with respect to its Project Notes, they are also secured by the full faith and credit of the U.S. through agreements with the issuing authority which provide that, if required, the federal government will lend the issuer an amount equal to the principal of and interest on the Project Notes.

There are, of course, variations in the quality of Municipal Securities, both within a particular classification and between classifications. Also, the yields on Municipal Securities depend upon a variety of factors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. general money market conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. coupon rate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. the financial condition of the issuer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. general conditions of the municipal bond market;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. the size of a particular offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. the maturity of the obligations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. the rating of the issue.

The ratings of Moody's and S&P represent their opinions as to the quality of Municipal Securities. However, ratings are general and are not absolute standards of quality. Municipal Securities with the same maturity, interest rate and rating may have different yields while Municipal Securities of the same maturity and interest rate with different ratings may have the same yield. Subsequent to its purchase by a Fund, an issue of Municipal Securities may cease to be rated or its rating may be reduced below the minimum rating required for purchase by the Fund. The Adviser will consider such an event in determining whether a Fund should continue to hold the obligations.

Municipal Securities may include obligations of municipal housing authorities and single-family mortgage revenue bonds. Weaknesses in federal housing subsidy programs and their administration may result in a decrease of subsidies available for payment of principal and interest on housing authority bonds. Economic developments, including fluctuations in interest rates and increasing construction and operating costs, may also adversely impact revenues of housing authorities. In the case of some housing authorities, inability to obtain additional financing could also reduce revenues available to pay existing obligations.

Single-family mortgage revenue bonds are subject to extraordinary mandatory redemption at par in whole or in part from the proceeds derived from prepayments of underlying mortgage loans and also from the unused proceeds of the issue within a stated period which may be within a year from the date of issue.

Municipal leases are obligations issued by state and local governments or authorities to finance the acquisition of equipment and facilities. Municipal leases may be considered to be illiquid. They may take the form of a lease, an installment purchase contract, a conditional sales contract, or a Participation interest in any of the above. The Board is responsible for determining the credit quality of unrated municipal leases on an ongoing basis, including an assessment of the likelihood that the lease will not be canceled.

*Premium Securities*. During a period of declining interest rates, many Municipal Securities in which a Fund invests likely will bear coupon rates higher than current market rates, regardless of whether the securities were initially purchased at a premium.

 

**Risk Factors in Municipal Securities.** The following is a summary of certain risks associated with Municipal Securities:

*Tax Risk.* The Code imposes certain continuing requirements on issuers of tax-exempt bonds regarding the use, expenditure and investment of bond proceeds and the payment of rebates to the U.S. Failure by the issuer to comply subsequent to the issuance of tax-exempt bonds with certain of these requirements could cause interest on the bonds to become included in gross income retroactive to the date of issuance.

 

*Housing Authority Tax Risk.* The exclusion from gross income for federal income tax purposes for certain housing authority bonds depends on qualification under relevant provisions of the Code and on other provisions of federal law. These provisions of federal law contain requirements relating to the cost and location of the residences financed with the proceeds of the single-family mortgage bonds and the income levels of tenants of the rental projects financed with the proceeds of the multi-family housing bonds. Typically, the issuers of the bonds, and other parties, including the originators and servicers of the single-family mortgages and the owners of the rental projects financed with the multi-family housing bonds, covenant to meet these requirements. However, there is no assurance that the requirements will be met. If such requirements are not met:

 

● the interest on the bonds may become taxable, possibly retroactively from the date of issuance;

● the value of the bonds may be reduced;

● you and other Shareholders may be subject to unanticipated tax liabilities;

● a Fund may be required to sell the bonds at the reduced value;

● it may be an event of default under the applicable mortgage;

● the holder may be permitted to accelerate payment of the bond; and

● the issuer may be required to redeem the bond.

In addition, if the mortgage securing the bonds is insured by the Federal Housing Administration ("FHA"), the consent of the FHA may be required before insurance proceeds would become payable.

*Information Risk.* Information about the financial condition of issuers of Municipal Securities may be less available than that of corporations having a class of securities registered under the SEC.

 

*State and Federal Laws.* An issuer's obligations under its Municipal Securities are subject to the provisions of bankruptcy, insolvency, and other laws affecting the rights and remedies of creditors. These laws may extend the time for payment of principal or interest, or restrict a Fund's ability to collect payments due on Municipal Securities. In addition, recent amendments to some statutes governing security interests (*e.g.*, Revised Article 9 of the Uniform Commercial Code ("UCC")) change the way in which security interests and liens securing Municipal Securities are perfected. These amendments may have an adverse impact on existing Municipal Securities (particularly issues of Municipal Securities that do not have a corporate trustee who is responsible for filing UCC financing statements to continue the security interest or lien).

 

*Litigation and Current Developments.* Litigation or other conditions may materially and adversely affect the power or ability of an issuer to meet its obligations for the payment of interest on and principal of its Municipal Securities. Such litigation or conditions may from time to time have the effect of introducing uncertainties in the market for tax-exempt obligations, or may materially affect the credit risk with respect to particular bonds or notes. Adverse economic, business, legal or political developments might affect all or a substantial portion of a Fund's Municipal Securities in the same manner.

 

*New Legislation.* From time to time, proposals have been introduced before Congress for the purpose of restricting or eliminating the federal income tax exemption for interest on tax exempt bonds, and similar proposals may be introduced in the future. The Supreme Court has held that Congress has the constitutional authority to enact such legislation. It is not possible to determine what effect the adoption of such proposals could have on (i) the availability of Municipal Securities for investment by the Funds, and (ii) the value of the investment portfolios of the Funds.

 

**Limitations on the Use of Municipal Securities.** A Fund may invest in Municipal Securities if the Adviser determines that such Municipal Securities offer attractive yields. A Fund may invest in Municipal Securities either by purchasing them directly or by purchasing certificates of accrual or similar instruments evidencing direct ownership of interest payments or principal payments, or both, on Municipal Securities, provided that, in the opinion of counsel to the initial seller of each such certificate or instrument, any discount accruing on such certificate or instrument that is purchased at a yield not greater than the coupon rate of interest on the related Municipal Securities will to the same extent as interest on such Municipal Securities be exempt from federal income tax and state income tax (where applicable) and not be treated as a preference item for individuals for purposes of the federal alternative minimum tax. A Fund may also invest in Municipal Securities by purchasing from banks Participation interests in all or part of specific holdings of Municipal Securities. Such Participation interests may be backed in whole or in part by an irrevocable letter of credit or guarantee of the selling bank. The selling bank may receive a fee from a Fund in connection with the arrangement.

A Fund will limit its investment in municipal leases to no more than 5% of its total assets.

**New Financial Products**

New options and futures contracts and other financial products, and various combinations thereof, including OTC products, continue to be developed. These various products may be used to adjust the risk and return characteristics of a Fund's investments. These various products may increase or decrease exposure to security prices, interest rates, commodity prices, or other factors that affect security values, regardless of the issuer's credit risk. If market conditions do not perform as expected, the performance of a Fund would be less favorable than it would have been if these products were not used. In addition, losses may occur if counterparties involved in transactions do not perform as promised. These products may expose a Fund to potentially greater return as well as potentially greater risk of loss than more traditional fixed income investments.

**Non-U.S. Investments**

The International Fund, the Short Duration Securitized Bond Fund, the Securitized Total Return Fund, the Core Bond Fund and the Core Plus Bond Fund, may invest directly in certain obligations or securities of non-U.S. issuers and will be subject to risks not typically associated with U.S. securities. Non-U.S. investments, especially those of companies in emerging markets, can be riskier and more volatile than investments in the U.S. Adverse political and economic developments or changes in the value of non-U.S. currency can make it more difficult for the Funds to sell their securities and could reduce the value of your Shares. Differences in tax and accounting standards and difficulties in obtaining information about non-U.S. companies can negatively affect investment decisions.

Other possible non-U.S. investments include U.S. dollar-denominated debt securities (*e.g.*, bonds and commercial paper) of non-U.S. entities, obligations of non-U.S. branches of U.S. banks and of non-U.S. banks, including, without limitation, Eurodollar Certificates of Deposit, Eurodollar Time Deposits, Eurodollar Bankers' Acceptances, Canadian Time Deposits and Yankee Certificates of Deposit, and investments in Canadian Commercial Paper, and Europaper. Securities of non-U.S. issuers may include sponsored and unsponsored ADRs, and EDRs. Sponsored ADRs are listed on the NYSE; unsponsored ADRs are not. Therefore, there may be less information available about the issuers of unsponsored ADRs than the issuers of sponsored ADRs. Unsponsored ADRs are restricted securities. EDRs are not listed on the NYSE. As a result, it may be difficult to obtain information about EDRs.

The Small Cap Fund, the Small-Mid Cap Fund, the Mid Cap Fund, the Large Cap Fund, the Select Fund, and the Long-Short Fund may only invest in the equity securities of non-U.S. companies by purchasing ADRs. To the extent that a Fund does invest in ADRs, such investments may be subject to special risks. For example, there may be less information publicly available about a non-U.S. company than about a U.S. company, and non-U.S. companies are not generally subject to accounting, auditing and financial reporting standards and practices comparable to those in the U.S.

Companies with a primary listing on a U.S. stock exchange or that have their principal place of business or operations in the U.S. are considered to be U.S. companies.

*Limitations on the Use of Non-U.S. Investments*. The International Fund, the Short Duration Securitized Bond Fund, the Securitized Total Return Fund, the Core Bond Fund and the Core Plus Bond Fund are not subject to a limitation.

 

**Risk Factors of Non-U.S. Investments.** The following is a summary of certain risks associated with non-U.S. investments:

*Political and Exchange Risks.* Non-U.S. investments may subject a Fund to investment risks that differ in some respects from those related to investments in obligations of U.S. issuers. Such risks include potential future adverse political and economic developments, sanctions or other measures by the U.S. or other governments, possible imposition of withholding taxes on interest or other income, possible seizure, nationalization or expropriation of non-U.S. deposits, possible establishment of exchange controls or taxation at the source, greater fluctuations in value due to changes in exchange rates, or the adoption of other non-U.S. governmental restrictions which might adversely affect the payment of principal and interest on such obligations.

 

*Higher Transaction Costs.* Non-U.S. investments may entail higher custodial fees and sales commissions than U.S. investments.

 

*Accounting and Regulatory Differences.* Non-U.S. issuers of securities or obligations are often subject to accounting treatment and engage in business practices different from those of U.S. issuers of similar securities or obligations. In addition, non-U.S. issuers are usually not subject to the same degree of regulation as U.S. issuers, and their securities may trade on relatively small markets, causing their securities to experience potentially higher volatility and more limited liquidity than securities of U.S. issuers. Non-U.S. branches of U.S. banks and non-U.S. banks are not regulated by U.S. banking authorities and may be subject to less stringent reserve requirements than those applicable to U.S. branches of U.S. banks. In addition, non-U.S. banks generally are not bound by accounting, auditing, and financial reporting standards comparable to those applicable to U.S. banks. Dividends and interest paid by non-U.S. issuers may be subject to withholding and other non-U.S. taxes which may decrease the net return on non-U.S. investments as compared to dividends and interest paid to a Fund by U.S. companies.

**Brady Bonds.** Brady bonds are securities created through the exchange of existing commercial bank loans to public and private entities in certain emerging markets for new bonds in connection with debt restructurings. Brady bonds have been issued since 1989. In light of the history of defaults of countries issuing Brady bonds on their commercial bank loans, investments in Brady bonds may be viewed as speculative and subject to the same risks as emerging market securities. Brady bonds may be fully or partially collateralized or uncollateralized, are issued in various currencies (but primarily the U.S. dollar) and are actively traded in OTC secondary markets. Incomplete collateralization of interest or principal payment obligations results in increased credit risk. U.S. dollar-denominated collateralized Brady bonds, which may be either fixed-rate or floating rate bonds, are generally collateralized by U.S. Treasury securities.

**Obligations of Supranational Entities.** Obligations of supranational entities include securities designated or supported by governmental entities to promote economic reconstruction or development of international banking institutions and related government agencies. Examples include the International Bank for Reconstruction and Development, the European Coal and Steel Community, the Asian Development Bank and the Inter-American Development Bank. Each supranational entity's lending activities are limited to a percentage of its total capital (including "callable capital" contributed by its governmental members at the entity's call), reserves and net income. There is no assurance that participating governments will be able or willing to honor their commitments to make capital contributions to a supranational entity.

**Emerging Market Securities.** Investing in companies domiciled in emerging market countries may be subject to potentially higher risks than investments in developed countries. These risks include: (i) less social, political, and economic stability; (ii) greater illiquidity and price volatility due to smaller or limited local capital markets for such securities, or low non-existent trading volumes; (iii) less scrutiny and regulation by local authorities of the non-U.S. exchanges and broker-dealers; (iv) the seizure or confiscation by local governments of securities held by non-U.S. investors, and the possible suspension or limiting by local governments of an issuer's ability to make dividend or interest payments; (v) limiting or entirely restricting repatriation of invested capital, profits, and dividends by local governments; (vi) possible local taxation of capital gains, including on a retroactive basis; (vii) the attempt by issuers facing restrictions on dollar or euro payments imposed by local governments to make dividend or interest payments to non-U.S. investors in the local currency; (viii) difficulty in enforcing legal claims related to the securities and/or local judges favoring the interests of the issuer over those of non-U.S. investors; (ix) bankruptcy judgments being paid in the local currency; (x) greater difficulty in determining market valuations of the securities due to limited public information regarding the issuer, and (xi) difficulty of ascertaining the financial health of an issuer due to lax financial reporting on a regular basis, substandard disclosure and differences in accounting standards.

Emerging country securities markets are typically marked by a high concentration of market capitalization and trading volume in a small number of issuers representing a limited number of industries, as well as a high concentration of ownership of such securities by a limited number of investors. Although some emerging markets have become more established and tend to issue securities of higher credit quality, the markets for securities in other emerging countries are in the earliest stages of their development, and these countries issue securities across the credit spectrum. Even the markets for relatively widely traded securities in emerging countries may not be able to absorb, without price disruptions, a significant increase in trading volume or trades of a size customarily undertaken by institutional investors in the securities markets of developed countries. The limited size of many of these securities markets can cause prices to be erratic for reasons apart from factors that affect the soundness and competitiveness of the securities issuers. For example, prices may be unduly influenced by traders who control large positions in these markets. Additionally, market making and arbitrage activities are generally less extensive in such markets, which may contribute to increased volatility and reduced liquidity of such markets. The limited liquidity of emerging country securities may also affect a Fund's ability to accurately value its portfolio securities or to acquire or dispose of securities at the price and time it wishes to do so or in order to meet redemption requests.

Many emerging market countries suffer from uncertainty and corruption in their legal frameworks. Legislation may be difficult to interpret and laws may be too new to provide any precedential value. Laws regarding non-U.S. investment and private property may be weak or non-existent. Sudden changes in governments may result in policies which are less favorable to investors, such as policies designed to expropriate or nationalize "sovereign" assets. Certain emerging market countries in the past have expropriated large amounts of private property, in many cases with little or no compensation, and there can be no assurance that such expropriation will not occur in the future.

Non-U.S. investment in the securities markets of certain emerging countries is restricted or controlled to varying degrees. These restrictions may limit a Fund's investment in certain emerging countries and may increase the expenses of the Fund. Certain emerging countries require governmental approval prior to investments by non-U.S. persons or limit investment by non-U.S. persons to only a specified percentage of an issuer's outstanding securities or to a specific class of securities, which may have less advantageous terms (including price) than securities of the company available for purchase by nationals.

Many developing countries lack the social, political, and economic stability characteristic of the U.S. Political instability among emerging market countries can be common and may be caused by an uneven distribution of wealth, social unrest, labor strikes, civil wars, and religious oppression. Economic instability in emerging market countries may take the form of: (i) high interest rates; (ii) high levels of inflation, including hyperinflation; (iii) high levels of unemployment or underemployment; (iv) changes in government economic and tax policies, including confiscatory taxation; and (v) imposition of trade barriers.

Some emerging market countries have experienced balance of payment deficits and shortages in non-U.S. exchange reserves. Governments have responded by restricting currency conversions. Future restrictive exchange controls could prevent or restrict a company's ability to make dividend or interest payments in the original currency of the obligation (usually U.S. dollars). In addition, even though the currencies of some emerging market countries may be convertible into U.S. dollars, the conversion rates may be artificial to their actual market values.

A Fund's income and, in some cases, capital gains from non-U.S. stocks and securities will be subject to applicable taxation in certain of the countries in which it invests, and treaties between the U.S. and such countries may not be available in some cases to reduce the otherwise applicable tax rates. Non-U.S. markets also have different clearance and settlement procedures, and in certain markets there have been times when settlements have been unable to keep pace with the volume of securities transactions, making it difficult to conduct such transactions. Such delays in settlement could result in temporary periods when a portion of the assets of a Fund remains uninvested and no return is earned on such assets. The inability of a Fund to make intended security purchases or sales due to settlement problems could result either in losses to the Fund due to subsequent declines in value of the portfolio securities, in a Fund deeming those securities to be illiquid, or, if the Fund has entered into a contract to sell the securities, in possible liability to the purchaser.

In the past, governments within the emerging markets have become overly reliant on the international capital markets and other forms of non-U.S. credit to finance large public spending programs which cause huge budget deficits. Often, interest payments have become too overwhelming for a government to meet, representing a large percentage of total gross domestic product. These non-U.S. obligations have become the subject of political debate and have served as fuel for political parties of the opposition, which pressure the government not to make payments to non-U.S. creditors, but instead to use these funds for social programs. Either due to an inability to pay or submission to political pressure, non-U.S. governments have been forced to seek a restructuring of their loan and/or bond obligations, have declared a temporary suspension of interest payments or have defaulted. These events have adversely affected the values of securities issued by non-U.S. governments and corporations domiciled in emerging market countries and have negatively affected not only their cost of borrowing, but their ability to borrow in the future as well.

**Sovereign Obligations.** Sovereign debt includes investments in securities issued or guaranteed by a non-U.S. sovereign government or its agencies, authorities or political subdivisions. An investment in sovereign debt obligations involves special risks not present in corporate debt obligations. The issuer of the sovereign debt or the governmental authorities that control the repayment of the debt may be unable or unwilling to repay principal or interest when due, and a Fund may have limited recourse in the event of a default. During periods of economic uncertainty, the market prices of sovereign debt, and a Fund's NAV, may be more volatile than prices of U.S. debt obligations. In the past, certain emerging markets have encountered difficulties in servicing their debt obligations, withheld payments of principal and interest and declared moratoria on the payment of principal and interest on their sovereign debts.

A sovereign debtor's willingness or ability to repay principal and pay interest in a timely manner may be affected by, among other factors, its cash flow situation, the extent of its non-U.S. currency reserves, the availability of sufficient non-U.S. exchange, the relative size of the debt service burden, the sovereign debtor's policy toward principal international Lenders and local political constraints. Sovereign debtors may also be dependent on expected disbursements from non-U.S. governments, multilateral agencies and other entities to reduce principal and interest arrearages on their debt. The failure of a sovereign debtor to implement economic reforms, achieve specified levels of economic performance or repay principal or interest when due may result in the cancellation of third-party commitments to lend funds to the sovereign debtor, which may further impair such debtor's ability or willingness to service its debts.

**Options and Futures Transactions**

A Fund may purchase and sell exchange traded and OTC put and call options on securities, on indexes of securities and other types of instruments. The Short Duration Securitized Bond Fund, the Securitized Total Return Fund, the Core Bond Fund and the Core Plus Bond Fund may also purchase and sell futures contracts on securities and indexes of securities and other instruments such as interest rate futures and global interest rate futures. Each of these instruments is a derivative instrument as its value derives from the underlying asset or index.

Subject to its investment objective and policies, a Fund may use options for hedging and risk management purposes and to seek to enhance portfolio performance.

Options and futures contracts may be used to manage a Fund's exposure to changing interest rates and/or security prices. Some options and futures strategies, including selling futures contracts and buying puts, tend to hedge a Fund's investments against price fluctuations. Other strategies, including buying futures contracts and buying calls, tend to increase market exposure. Options and futures contracts may be combined with each other or with forward contracts in order to adjust the risk and return characteristics of a Fund's overall strategy in a manner deemed appropriate by the Adviser and consistent with the Fund's objective and policies. Because combined options positions involve multiple trades, they result in higher transaction costs and may be more difficult to open and close out.

The use of options and futures is a highly specialized activity which involves investment strategies and risks different from those associated with ordinary portfolio securities transactions, and there can be no guarantee that their use will increase a Fund's return. While the use of these instruments by a Fund may reduce certain risks associated with owning its portfolio securities, these techniques themselves entail certain other risks. If a Fund's Adviser applies a strategy at an inappropriate time or judges market conditions or trends incorrectly, options and futures strategies may lower a Fund's return. Certain strategies limit a Fund's possibilities to realize gains, as well as its exposure to losses. A Fund could also experience losses if the prices of its options and futures positions were poorly correlated with its other investments, or if it could not close out its positions because of an illiquid secondary market. In addition, a Fund will incur transaction costs, including trading commissions and option premiums, in connection with its futures and options transactions, and these transactions could significantly increase the Fund's turnover rate.

**Private Placements, Restricted Securities and Other Unregistered Securities** 

A Fund may acquire investments that are illiquid or have limited liquidity, such as commercial obligations issued in reliance on the so-called "private placement" exemption from registration afforded by Section 4(a)(2) of the Securities Act, and cannot be offered for public sale in the U.S. without first being registered under the Securities Act. An illiquid investment is any investment that cannot be disposed of within seven days in the normal course of business at approximately the amount at which it is valued by a Fund. The price a Fund pays for illiquid securities or receives upon resale may be lower than the price paid or received for similar securities with a more liquid market. Accordingly the valuation of these securities will reflect any limitations on their liquidity.

A Fund is subject to a risk that should the Fund decide to sell illiquid securities when a ready buyer is not available at a price the Fund deems representative of their value, the value of the Fund's net assets could be adversely affected. Where an illiquid security must be registered under the Securities Act before it may be sold, a Fund may be obligated to pay all or part of the registration expenses, and a considerable period may elapse between the time of the decision to sell and the time the Fund may be permitted to sell a security under an effective registration statement. If, during such a period, adverse market conditions were to develop, a Fund might obtain a less favorable price than prevailed when it decided to sell. The Funds may invest in commercial paper issued in reliance on the exemption from registration afforded by Section 4(a)(2) of the Securities Act and other restricted securities (*i.e*., other securities subject to restrictions on resale). Section 4(a)(2) commercial paper ("4(a)(2) paper") is restricted as to disposition under federal securities law and is generally sold to institutional investors, such as the Funds, that agree that they are purchasing the paper for investment purposes and not with a view to public distribution. Any resale by the purchaser must be in an exempt transaction. 4(a)(2) paper is normally resold to other institutional investors through or with the assistance of the issuer or investment dealers who make a market in 4(a)(2) paper, thus providing liquidity. The Funds believe that 4(a)(2) paper and possibly certain other restricted securities which meet the criteria for liquidity established by the Trustees are quite liquid. The Funds intend, therefore, to treat restricted securities that meet the liquidity criteria established by the Board, including 4(a)(2) paper and Rule 144A Securities, as determined by the Adviser's Valuation & Liquidity Committee, as liquid and not subject to the investment limitation applicable to illiquid securities.

Each of the Funds may invest up to 15% of its respective assets (valued at the purchase date) in illiquid securities.

**Real Estate Investment Trusts** 

REITs are pooled investment vehicles that invest primarily in income producing real estate or real estate related loans or interests. REITs generally are classified as equity REITs, mortgage REITs or hybrid REITs. An equity REIT, which owns properties, generates income from rental and lease properties. Mortgage REITs invest the majority of their assets in real estate mortgages and derive income from the collection of interest payments. Hybrid REITs are designed to strike a balance between equity investments and mortgage-backed investments and derive their income from the collection of rents, the realization of capital gains from the sale of properties and from the collection of interest payments on outstanding mortgages held within the trust.

The value of real estate securities in general and REITs in particular, will depend on the value of the underlying properties or the underlying loans or interests. The value of these securities will rise and fall in response to many factors, including economic conditions, the demand for rental property and interest rates. In particular, the value of these securities may decline when interest rates rise and will also be affected by the real estate market and by the management of the underlying properties. REITs may be more volatile and/or more illiquid than other types of equity securities. A Fund, though not invested directly in real estate, still is subject to the risks associated with investing in real estate, which include:

● possible declines in the value of real estate

● risks related to general and local economic conditions

● possible lack of availability of mortgage funds

● overbuilding

● changes in interest rates

● environmental problems

Investing in REITs involves certain risks in addition to those risks associated with investing in the real estate industry in general, which include:

● dependency upon management skills

● limited diversification

● the risks of financing projects

● heavy cash flow dependency

● default by borrowers

● self-liquidation

● possibility of failing to maintain exemptions from the Company Act

● in many cases, relatively small market capitalization, which may result in less market liquidity and greater price volatility

**Reflow Redemption Service**

Instead of borrowing, the Funds may participate in the ReFlow liquidity program, which is designed to provide an alternative liquidity source for mutual funds experiencing net redemptions of their shares. Pursuant to the program, ReFlow Fund, LLC ("ReFlow") provides participating mutual funds with a source of cash to meet net shareholder redemptions by standing ready each business day to purchase fund shares up to the value of the net shares redeemed by other shareholders that are to settle that business day. A Fund is not guaranteed to receive cash from ReFlow on any given day as allocation of ReFlow's cash is based on the results of ReFlow's automated daily auction process among participating mutual funds. Following purchases of Fund Shares, ReFlow then generally redeems those shares when the Fund experiences net shareholder purchases at the end of a maximum holding period determined by ReFlow, or at other times at ReFlow's discretion. While ReFlow holds Fund Shares, it will have the same rights and privileges with respect to those shares as any other shareholder.

For use of the ReFlow service, a Fund pays a fee to ReFlow each time it purchases Fund Shares, calculated by applying to the purchase amount a fee rate determined through the auction process. The current minimum fee rate (which is subject to change) is 0.14% of the value of the Fund Shares purchased by ReFlow, although the Fund may submit a bid at a higher fee rate if it determines that doing so is in the best interest of Fund shareholders. ReFlow's purchases of Fund Shares through the liquidity program are made on an investment-blind basis without regard to the Fund's objective, policies, or anticipated performance. In accordance with federal securities laws, ReFlow is prohibited from acquiring more than 3% of the outstanding voting securities of a Fund. ReFlow will periodically redeem its entire share position in a Fund and may request that such redemption be met in-kind in accordance with redemption in-kind policies described in the Prospectus. Purchases and redemptions of Fund Shares by ReFlow under the program are not considered excessive short-term trading under the Trust's policy regarding Excessive Trading.

**Repurchase Agreements** 

Under the terms of a repurchase agreement, a Fund would acquire securities from a seller, also known as the repurchase agreement counterparty, subject to the seller's agreement to repurchase such securities at a mutually agreed-upon date and price. The repurchase price would generally equal the price paid by a Fund plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller under a repurchase agreement will be required to maintain the value of collateral held pursuant to the agreement at not less than the repurchase price (including accrued interest).

If the seller were to default on its repurchase obligation or become insolvent, a Fund would suffer a loss to the extent that the proceeds from a sale of the underlying portfolio securities were less than the repurchase price under the agreement, or to the extent that the disposition of such securities by the Fund were delayed pending court action. Additionally, there is no controlling legal precedent under U.S. law and there may be no controlling legal precedents under the laws of certain non-U.S. jurisdictions confirming that a Fund would be entitled, as against a claim by such seller or its receiver or trustee in bankruptcy, to retain the underlying securities, although (with respect to repurchase agreements subject to U.S. law) the Board believes that, under the regular procedures normally in effect for custody of the Fund's securities subject to repurchase agreements and under federal laws, a court of competent jurisdiction would rule in favor of the Trust if presented with the question. Securities subject to repurchase agreements will be held by the Trust's custodian or another qualified custodian or in the Federal Reserve/Treasury book-entry system. Repurchase agreements are considered by the SEC to be loans by a Fund under the Company Act.

Repurchase agreement counterparties include Federal Reserve member banks with assets in excess of $1 billion and registered broker dealers that the Adviser deems creditworthy under guidelines approved by the Board.

**Reverse Repurchase Agreements**

In a reverse repurchase agreement, a Fund sells a security and agrees to repurchase the same security at a mutually agreed upon date and price reflecting the interest rate effective for the term of the agreement. For purposes of the Company Act, a reverse repurchase agreement is considered borrowing by a Fund and, therefore, a form of leverage. Leverage may cause any gains or losses for a Fund to be magnified. Certain Funds will invest the proceeds of borrowings under reverse repurchase agreements. In addition, except for liquidity purposes, a Fund will enter into a reverse repurchase agreement only when the expected return from the investment of the proceeds is greater than the expense of the transaction. A Fund will not invest the proceeds of a reverse repurchase agreement for a period which exceeds the duration of the reverse repurchase agreement. A Fund would be required to pay interest on amounts obtained through reverse repurchase agreements, which are considered borrowings under federal securities laws. The repurchase price is generally equal to the original sales price plus interest. Reverse repurchase agreements are usually for seven days or less and cannot be repaid prior to their expiration dates. Each Fund will earmark and reserve Fund assets, in cash or liquid securities, in an amount at least equal to its purchase obligations under its reverse repurchase agreements. Reverse repurchase agreements involve the risk that the market value of the portfolio securities transferred may decline below the price at which a Fund is obliged to purchase the securities. All forms of borrowing (including reverse repurchase agreements) are limited in the aggregate and may not exceed 33-1/3% of a Fund's total assets, except as permitted by law.

**Securities Issued in Connection with Reorganizations and Corporate Restructuring**

Debt securities may be downgraded and issuers of debt securities including investment grade securities may default in the payment of principal or interest or be subject to bankruptcy proceedings. In connection with reorganizing or restructuring of an issuer, an issuer may issue common stock or other securities to holders of its debt securities. A Fund may hold such common stock and other securities even though it does not ordinarily invest in such securities.

**Short Sales** 

When the Adviser believes that a security is overvalued, it may sell the security short and borrow the same security from a broker or other institution to complete the sale. If the price of the security decreases in value, a Fund may make a profit and, conversely, if the security increases in value, a Fund will incur a loss because it will have to replace the borrowed security by purchasing it at a higher price. There can be no assurance that a Fund will be able to close out the short position at any particular time or at an acceptable price. Although a Fund's gain is limited to the amount at which it sold a security short, its potential loss is not limited. A lender may request that the borrowed securities be returned on short notice; if that occurs at a time when other short sellers of the subject security are receiving similar requests, a "short squeeze" can occur. This means that a Fund might be compelled, at the most disadvantageous time, to replace borrowed securities previously sold short, with purchases on the open market at prices significantly greater than those at which the securities were sold short.

At any time that a Fund has an open short sale position, a Fund is required to segregate with the custodian (and to maintain such amount until the Fund replaces the borrowed security) an amount of cash or U.S. Government securities or other liquid securities equal to at least the difference between (i) the current market value of the securities sold short and (ii) any cash or U.S. Government securities required to be deposited with the broker in connection with the short sale (not including the proceeds from the short sale). As a result of these requirements, a Fund will not gain any leverage merely by selling short, except to the extent that it earns interest on the immobilized cash or government securities while also being subject to the possibility of gain or loss from the securities sold short. However, depending on arrangements made with the broker or Custodian, a Fund may not receive any payments (including interest) on the deposits made with the broker or Custodian. These deposits do not have the effect of limiting the amount of money a Fund may lose on a short sale – a Fund's possible losses may exceed the total amount of deposits. The Long Short Fund will not make a short sale if, immediately before the transaction, the market value of all securities sold short exceeds 40% of the value of the Fund's net assets. The International Fund will not make a short sale if, immediately before the transaction, the market value of all securities sold short exceeds 20% of the value of the Fund's net assets.

The amount of any gain will be decreased and the amount of any loss increased by any premium or interest a Fund may be required to pay in connection with a short sale. It should be noted that possible losses from short sales differ from those that could arise from a cash investment in a security in that the former may be limitless while the latter can only equal the total amount of the Fund's investment in the security. For example, if a Fund purchases a $10 security, the most that can be lost is $10. However, if a Fund sells a $10 security short, it may have to purchase the security for return to the lender when the market value is $50, thereby incurring a loss of $40.

Short selling also may produce higher than normal portfolio turnover and result in increased transaction costs to a Fund. In addition, because of the asset segregation requirement, a Fund may be required to liquidate other portfolio securities that it otherwise might not have sold in order to meet its obligations, such as paying for redemptions of Fund Shares.

**Short-Term Funding Agreements** 

To enhance yield, a Fund may make limited investments in short-term funding agreements issued by banks and highly rated U.S. insurance companies. Short-term funding agreements issued by insurance companies are sometimes referred to as guaranteed investment contracts, while those issued by banks are referred to as bank investment contracts. Pursuant to such agreements, a Fund makes cash contributions to a deposit account at a bank or insurance company. The bank or insurance company then credits to a Fund on a monthly basis guaranteed interest at either a fixed, variable or floating rate. These contracts are general obligations of the issuing bank or insurance company (although they may be the obligations of an insurance company separate account) and are paid from the general assets of the issuing entity.

A Fund will purchase short-term funding agreements only from banks and insurance companies which, at the time of purchase, are rated in one of the three highest rating categories and have assets of $1 billion or more. Generally, there is no active secondary market in short-term funding agreements. Therefore, short-term funding agreements may be considered by a Fund to be illiquid investments. To the extent that a short-term funding agreement is determined to be illiquid, such agreements will be acquired by a Fund only if, at the time of purchase, no more than 15% of the Fund's net assets will be invested in short-term funding agreements and other illiquid securities.

**Structured Instruments** 

A structured investment is a security having a return tied to an underlying index or other security or asset class. Structured investments generally are individually negotiated agreements and may be traded OTC. Structured investments are organized and operated to restructure the investment characteristics of the underlying security. This restructuring involves the deposit with or purchase by an entity, such as a corporation or trust, or specified instruments (such as commercial bank loans) and the issuance by that entity or one or more classes of securities ("structured securities") backed by, or representing interests in, the underlying instruments. The cash flow on the underlying instruments may be apportioned among the newly issued structured securities to create securities with different investment characteristics, such as varying maturities, payment priorities and interest rate provisions, and the extent of such payments made with respect to structured securities is dependent on the extent of the cash flow on the underlying instruments. Because structured securities typically involve no credit enhancement, their credit risk generally will be equivalent to that of the underlying instruments. Investments in structured securities are generally of a class of structured securities that is either subordinated or unsubordinated to the right of payment of another class. Subordinated structured securities typically have higher yields and present greater risks than unsubordinated structured securities. Structured instruments include structured notes. In addition to the risks applicable to investments in structured investments and debt securities in general, structured notes bear the risk that the issuer may not be required to pay interest on the structured note if the index rate rises above or falls below a certain level. Structured securities are typically sold in private placement transactions, and there currently is no active trading market for structured securities. Investments in government and government-related restructured debt instruments are subject to special risks, including the inability or unwillingness to repay principal and interest, requests to reschedule or restructure outstanding debt and requests to extend additional loan amounts. Structured investments include a wide variety of instruments including, without limitation, CDOs, credit linked notes ("CLNs"), and participation notes and participatory notes ("P-notes").

Structured instruments that are registered under the federal securities laws may be treated as liquid. In addition, many structured instruments may not be registered under the federal securities laws. In that event, a Fund's ability to resell such a structured instrument may be more limited than its ability to resell other Fund securities. The Funds will treat such instruments as illiquid and will limit their investments in such instruments to no more than 15% of each Fund's net assets, when combined with all other illiquid investments of each Fund.

Total Annual Fund Operating Expenses set forth in the fee table and "Financial Highlights" section of the Prospectus do not include any expenses associated with investments in certain structured or synthetic products that may rely on the exception for the definition of "investment company" provided by section 3(c)(1) or 3(c)(7) of the Company Act.

**Credit Linked Notes.** CLNs are typically issued by a limited purpose trust or other vehicle (the "CLN trust") that, in turn, invests in a derivative or basket of derivatives instruments, such as CDS, interest rate swaps and/or other securities, in order to provide exposure to certain high yield, sovereign debt, emerging markets, or other fixed income markets. Generally, investments in CLNs represent the right to receive periodic income payments (in the form of distributions) and payment of principal at the end of the term of the CLN. However, these payments are conditioned on the CLN trust's receipt of payments from, and the CLN trust's potential obligations, to the counterparties to the derivative instruments and other securities in which the CLN trust invests. For example, the CLN trust may sell one or more CDS, under which the CLN trust would receive a stream of payments over the term of the swap agreements provided that no event of default has occurred with respect to the referenced debt obligation upon which the swap is based. If a default were to occur, the stream of payments may stop and the CLN trust would be obligated to pay the counterparty the par (or other agreed upon value) of the referenced debt obligation. This, in turn, would reduce the amount of income and principal that a Fund would receive as an investor in the CLN trust.

A Fund may enter into CLNs structured as "First-to-Default" CLNs. In a First-to-Default CLN, the CLN trust enters into a CDS on a portfolio of a specified number of individual securities pursuant to which the CLN trust sells protection to a counterparty. The CLN trust uses the proceeds of issuing investments in the CLN trust to purchase securities, which are selected by the counterparty and the total return of which is paid to the counterparty. Upon the occurrence of a default or credit event involving any one of the individual securities, the CDS terminate and the Fund's investment in the CLN trust is redeemed for an amount equal to "par" minus the amount paid to the counterparty under the CDS.

A Fund may also enter in CLNs to gain access to sovereign debt and securities in emerging market particularly in markets where the Fund is not able to purchase securities directly due to domicile restrictions or tax restrictions or tariffs. In such an instance, the issuer of the CLN may purchase the reference security directly and/or gain exposure through a CDS or other derivative.

A Fund's investments in CLNs are subject to the risks associated with the underlying reference obligations and derivative instruments, including, among others, credit risk, default or similar event risk, counterparty risk, interest rate risk, leverage risk and management risk.

**Participation Notes and Participatory Notes.** A Fund may invest in instruments that have similar economic characteristics to equity securities, such as P-notes or other structured instruments that may be developed from time to time ("structured instruments"). Structured instruments are notes that are issued by banks, broker-dealers or their affiliates and are designed to offer a return linked to a particular underlying equity or market.

If the structured instrument were held to maturity, the issuer would pay to the purchaser the underlying instrument's value at maturity with any necessary adjustments. The holder of a structured instrument that is linked to a particular underlying security or instrument may be entitled to receive dividends paid in connection with that underlying security or instrument, but typically does not receive voting rights as it would if it directly owned the underlying security or instrument. Structured instruments have transaction costs. In addition, there can be no assurance that there will be a trading market for a structured instrument or that the trading price of a structured instrument will equal the underlying value of the security, instrument or market that it seeks to replicate. Unlike a direct investment in equity securities, structured instruments typically involve a term or expiration date, potentially increasing a Fund's turnover rate, transaction costs and tax liability.

Due to transfer restrictions, the secondary markets on which a structured instrument is traded may be less liquid than the market for other securities, or may be completely illiquid, which may expose a Fund to risks of mispricing or improper valuation. Structured instruments typically constitute general unsecured contractual obligations of the banks, broker-dealers or their relevant affiliates that issue them, which subjects a Fund to counterparty risk (and this risk may be amplified if a Fund purchases structured instruments from only a small number of issuers). Structured instruments also have the same risks associated with a direct investment in the underlying securities, instruments or markets that they seek to replicate.

**Swaps and Related Swap Products**

Swap transactions may include, but are not limited to, interest rate swaps, forward rate agreements, contracts for differences, total return swaps, index swaps, basket swaps, specific security swaps, fixed income sectors swaps, commodity swaps, asset-backed swaps, CMBS and indexes of CMBS, CDS, interest rate caps, price lock swaps, floors and collars and swaptions (collectively defined as "swap transactions").

A Fund may enter into swap transactions for any legal purpose consistent with its investment objective and policies, such as for the purpose of attempting to obtain or preserve a particular return or spread at a lower cost than obtaining that return or spread through purchases and/or sales of instruments in cash markets, to protect against any increase in the price of securities a Fund anticipates purchasing at a later date, or to gain exposure to certain markets in the most economical way possible.

Swap agreements are two-party contracts entered into primarily by institutional counterparties for periods ranging from a few weeks to several years. In a standard swap transaction, two parties agree to exchange the returns (or differentials in rates of return) that would be earned or realized on specified notional investments or instruments. The gross returns to be exchanged or "swapped" between the parties are calculated by reference to a "notional amount" (i*.e*., the return on or increase in value of a particular dollar amount invested at a particular interest rate, in a "basket" of securities representing a particular index). The purchaser of an interest rate cap or floor, upon payment of a fee, has the right to receive payments (and the seller of the cap or floor is obligated to make payments) to the extent a specified interest rate exceeds (in the case of a cap) or is less than (in the case of a floor) a specified level over a specified period of time or at specified dates. The purchaser of an interest rate collar, upon payment of a fee, has the right to receive payments (and the seller of the collar is obligated to make payments) to the extent that a specified interest rate falls outside an agreed upon range over a specified period of time or at specified dates. The purchaser of an option on an interest rate swap, also known as a "swaption," upon payment of a fee (either at the time of purchase or in the form of higher payments or lower receipts within an interest rate swap transaction) has the right, but not the obligation, to initiate a new swap transaction of a pre-specified notional amount with pre-specified terms with the seller of the swaption as the counterparty.

The "notional amount" of a swap transaction is the agreed upon basis for calculating the payments that the parties have agreed to exchange. For example, one swap counterparty may agree to pay a floating rate of interest calculated based on a $10 million notional amount on a quarterly basis in exchange for receipt of payments calculated based on the same notional amount and a fixed rate of interest on a semi-annual basis. In the event a Fund is obligated to make payments more frequently than it receives payments from the other party, it will incur incremental credit exposure to that swap counterparty. This risk may be mitigated somewhat by the use of swap agreements which call for a net payment to be made by the party with the larger payment obligation when the obligations of the parties fall due on the same date. Under most swap agreements entered into by a Fund, payments by the parties will be exchanged on a "net basis", and a Fund will receive or pay, as the case may be, only the net amount of the two payments.

The amount of a Fund's potential gain or loss on any swap transaction is not subject to any fixed limit. Nor is there any fixed limit on a Fund's potential loss if it sells a cap or collar. If a Fund buys a cap, floor or collar, however, the Fund's potential loss is limited to the amount of the fee that it has paid. When measured against the initial amount of cash required to initiate the transaction, which is typically zero in the case of most conventional swap transactions, swaps, caps, floors and collars tend to be more volatile than many other types of instruments.

The use of swap transactions, caps, floors and collars involves investment techniques and risks that are different from those associated with portfolio security transactions. If the Adviser is incorrect in its forecasts of market values, interest rates, and other applicable factors, the investment performance of a Fund will be less favorable than if these techniques had not been used. These instruments are typically not traded on exchanges. Accordingly, there is a risk that the other party to certain of these instruments will not perform its obligations to a Fund or that a Fund may be unable to enter into offsetting positions to terminate its exposure or liquidate its position under certain of these instruments when it wishes to do so. Such occurrences could result in losses to a Fund. The Adviser will consider such risks and will enter into swap and other derivatives transactions only when it believes that the risks are not unreasonable.

A Fund will earmark and reserve Fund assets, in cash or liquid securities, in an amount sufficient at all times to cover its current obligations under its swap transactions, caps, floors and collars. If a Fund enters into a swap agreement on a net basis, it will earmark and reserve assets with a daily value at least equal to the excess, if any, of a Fund's accrued obligations under the swap agreement over the accrued amount a Fund is entitled to receive under the agreement. If a Fund enters into a swap agreement on other than a net basis, or sells a cap, floor or collar, it will earmark and reserve assets with a daily value at least equal to the full amount of a Fund's accrued obligations under the agreement. A Fund will not enter into any swap transaction, cap, floor, or collar, unless the counterparty to the transaction is deemed creditworthy by the Adviser. If a counterparty defaults, a Fund may have contractual remedies pursuant to the agreements related to the transaction. The swap markets in which many types of swap transactions are traded have grown substantially in recent years, with a large number of banks and investment banking firms acting both as principals and as agents utilizing standardized swap documentation. As a result, the markets for certain types of swaps (*e.g.*, interest rate swaps) have become relatively liquid. The markets for some types of caps, floors and collars are less liquid.

The liquidity of swap transactions, caps, floors and collars will be as set forth in guidelines established by the Adviser and approved by the Trustees which are based on various factors, including: (i) the availability of dealer quotations and the estimated transaction volume for the instrument, (ii) the number of dealers and end users for the instrument in the marketplace, (iii) the level of market making by dealers in the type of instrument, (iv) the nature of the instrument (including any right of a party to terminate it on demand) and (v) the nature of the marketplace for trades (including the ability to assign or offset a Fund's rights and obligations relating to the instrument). Such determination will govern whether the instrument will be deemed within the applicable liquidity restriction on investments in securities that are not readily marketable.

During the term of a swap, cap, floor or collar, changes in the value of the instrument are recognized as unrealized gains or losses by marking to market to reflect the market value of the instrument. When the instrument is terminated, a Fund will record a realized gain or loss equal to the difference, if any, between the proceeds from (or cost of) the closing transaction and a Fund's basis in the contract.

The federal income tax treatment with respect to swap transactions, caps, floors, and collars may impose limitations on the extent to which a Fund may engage in such transactions.

**Credit Default Swaps.** As described above, swap agreements are two party contracts entered into primarily by institutional investors for periods ranging from a few weeks to more than one year. In the case of a CDS, the contract gives one party (the buyer) the right to recoup the economic value of a decline in the value of debt securities of the reference issuer if the credit event (a downgrade or default) occurs. This value is obtained by delivering a debt security of the reference issuer to the party in return for a previously agreed payment from the other party (frequently, the par value of the debt security). CDS are contracts on individual securities and CDX are contracts on baskets or indices of securities.

CDS require initial premium (discount) payments as well as periodic payments (receipts) related to the interest leg of the swap or to the default of a reference obligation. A Fund will earmark and reserve assets, in cash or liquid securities, to cover any accrued payment obligations when it is the buyer of a CDS. In cases where a Fund is a seller of a CDS contract, the Fund will earmark and reserve assets, in cash or liquid securities, to cover its obligation (for CDS on individual securities, such amount will be the notional amount of the CDS).

If a Fund is a seller of protection under a CDS contract, the Fund would be required to pay the par (or other agreed upon) value of a referenced debt obligation to the counterparty in the event of a default or other credit event by the reference issuer, such as a U.S. or non-U.S. corporate issuer, with respect to such debt obligations. In return, a Fund would receive from the counterparty a periodic stream of payments over the term of the contract provided that no event of default has occurred. If no default occurs, a Fund would keep the stream of payments and would have no payment obligations. As the seller, a Fund would be subject to investment exposure on the notional amount of the swap.

If a Fund is a buyer of protection under a CDS contract, the Fund would have the right to deliver a referenced debt obligation and receive the par (or other agreed-upon) value of such debt obligation from the counterparty in the event of a default or other credit event (such as a downgrade in credit rating) by the reference issuer, such as a U.S. or non-U.S. corporation, with respect to its debt obligations. In return, a Fund would pay the counterparty a periodic stream of payments over the term of the contract provided that no event of default has occurred. If no default occurs, the counterparty would keep the stream of payments and would have no further obligations to the Fund.

The use of CDS, like all swap agreements, is subject to certain risks. If a counterparty's creditworthiness declines, the value of the swap would likely decline. Moreover, there is no guarantee that a Fund could eliminate its exposure under an outstanding swap agreement by entering into an offsetting swap agreement with the same or another party. In addition to general market risks, CDS involve liquidity, credit and counterparty risks. The recent increase in corporate defaults further raises these liquidity and credit risks, increasing the possibility that sellers will not have sufficient funds to make payments. As unregulated instruments, CDS are difficult to value and are therefore susceptible to liquidity and credit risks. Counterparty risks also stem from the lack of regulation of CDS. Collateral posting requirements are individually negotiated between counterparties and there is no regulatory requirement concerning the amount of collateral that a counterparty must post to secure its obligations under a CDS. Because they are unregulated, there is no requirement that parties to a contract be informed in advance when a CDS is sold. As a result, investors may have difficulty identifying the party responsible for payment of their claims.

If a counterparty's credit becomes significantly impaired, multiple requests for collateral posting in a short period of time could increase the risk that a Fund may not receive adequate collateral. There is no readily available market for trading out of CDS contracts. In order to eliminate a position it has taken in a CDS, a Fund must terminate the existing CDS contract or enter into an offsetting trade. A Fund may only exit its obligations under a CDS contract by terminating the contract and paying applicable breakage fees, which could result in additional losses to a Fund. Furthermore, the cost of entering into an offsetting CDS position could cause a Fund to incur losses.

**Synthetic Variable Rate Instruments**

Synthetic variable rate instruments generally involve the deposit of a long-term tax exempt bond in a custody or trust arrangement and the creation of a mechanism to adjust the long-term interest rate on the bond to a variable short-term rate and a right (subject to certain conditions) on the part of the purchaser to tender it periodically to a third party at par. The Adviser reviews the structure of synthetic variable rate instruments to identify credit and liquidity risks (including the conditions under which the right to tender the instrument would no longer be available) and will monitor those risks. In the event that the right to tender the instrument is no longer available, the risk to a Fund will be that of holding the long-term bond. In the case of some types of instruments credit enhancement is not provided, and if certain events occur, which may include (a) default in the payment of principal or interest on the underlying bond, (b) downgrading of the bond below investment grade or (c) a loss of the bond's tax exempt status, then the put will terminate and the risk to a Fund will be that of holding a long-term bond.

Total Annual Fund Operating Expenses set forth in the fee table and "Financial Highlights" section of each Fund's Prospectus do not include any expenses associated with investments in certain structured or synthetic products that may rely on the exception for the definition of "investment company" provided by section 3(c)(1) or 3(c)(7) of the Company Act.

**Temporary Strategies** 

From time to time, a Fund may take temporary defensive positions that are inconsistent with the Fund's principal investment strategies, in attempting to respond to adverse market, economic, political, or other conditions. For example, a Fund may hold all or a portion of its assets in money market instruments (high quality income securities with maturities of less than one year), securities of money market funds or U.S. Government repurchase agreements. A Fund may also invest in such investments at any time to maintain liquidity or pending selection of investments in accordance with its policies. As a result, a Fund may not achieve its investment objective. If a Fund acquires securities of money market funds, the shareholders of the Fund will be subject to duplicative management fees and other expenses.

**Trust Preferred Securities**

Trust preferred securities, also known as "trust preferreds," are preferred stocks issued by a special purpose trust subsidiary backed by subordinated debt of the corporate parent. An issuer creates trust preferred securities by creating a trust and issuing debt to the trust. The trust in turn issues trust preferred securities. Trust preferred securities are hybrid securities with characteristics of both subordinated debt and preferred stock. Such characteristics include long maturities (typically 30 years or more), early redemption by the issuer, periodic fixed or variable interest payments, and maturities at face value. In addition, trust preferred securities issued by a bank holding company may allow deferral of interest payments for up to 5 years. Holders of trust preferred securities have limited voting rights to control the activities of the trust and no voting rights with respect to the parent company.

**U.S. Equity Securities**

U.S. equity securities consist of common and preferred stocks, rights, and warrants trading in the U.S. OTC market or on a U.S. primary exchange. Common stocks, the most familiar type, represent an equity (ownership) interest in a corporation. Preferred stock is a class of ownership in a corporation that has a higher claim on the assets and earnings than common stock. Warrants are options to purchase equity securities at a specified price for a specific time period. Rights are similar to warrants, but normally have a short duration and are distributed by the issuer to its shareholders. Although equity securities have a history of long-term growth in value, their prices fluctuate based on changes in a company's financial condition and on overall market and economic conditions.

Equity securities include SPDRs and other similar instruments. SPDRs are shares of a publicly traded unit investment trust which owns the stock included in the S&P 500<sup>®</sup> Index, and changes in the price of the SPDRs track the movement of the Index relatively closely. Similar instruments may track the movement of other stock indexes.

A Fund may invest in non-U.S. equity securities by purchasing ADRs. ADRs are certificates evidencing ownership of shares of a non-U.S.-based issuer held in trust by a bank or similar financial institution. They are alternatives to the direct purchase of the underlying securities in their national markets and currencies. To the extent that a Fund does invest in ADRs, such investments may be subject to special risks. See "Non-U.S. Investments" section for additional information.

Investments in equity securities are subject to inherent market risks and fluctuations in value due to earnings, economic conditions and other factors beyond the control of the Adviser. As a result, the return and NAV of a Fund will fluctuate. Securities in a Fund's portfolio may decrease in value or not increase as much as the market as a whole. Although profits in some Fund holdings may be realized quickly, it is not expected that most investments will appreciate rapidly.

The value of a Fund's investments may decrease, sometimes rapidly or unexpectedly, due to factors affecting an issuer held by the Fund, particular industries or overall securities markets. When the value of a Fund's investments goes down, your investment in the Fund decreases in value. A variety of factors including interest rate levels, recessions, inflation, U.S. economic growth, war or acts of terrorism, natural disasters, political events, supply chain disruptions, staff shortages and widespread public health issues affect the securities markets. 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 over the long-term cannot be reasonably estimated at this time. 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 the Funds' investments.

At times, a portion of a Fund may be invested in companies with short operating histories ("new issuers") and in initial public offerings ("IPOs"), and such investments could be considered speculative. New issuers are relatively unseasoned and may lack sufficient resources, may be unable to generate internally the funds necessary for growth and may find external financing to be unavailable on favorable terms or even totally unavailable. New issuers will often be involved in the development or marketing of a new product with no established market, which could lead to significant losses. To the extent a Fund invests in smaller capitalization companies, the Fund will also be subject to the risks associated with such companies. Smaller capitalization companies, IPOs and new issuers may experience lower trading volumes than larger capitalization, established companies and may experience higher growth rates and higher failure rates than larger capitalization companies. Smaller capitalization companies, IPOs and new issuers also may have limited product lines, markets or financial resources and may lack management depth.

**U.S. Government Obligations** 

U.S. government obligations may include direct obligations of the U.S. Treasury, including U.S. Treasury bills, notes and bonds, all of which are backed as to principal and interest payments by the full faith and credit of the U.S., and separately traded principal and interest component parts of such obligations that are transferable through the federal book-entry system known as STRIPS and CUBES. U.S. government obligations are subject to market risk, interest rate risk and credit risk.

The principal and interest components of U.S. Treasury bonds with remaining maturities of longer than ten years are eligible to be traded independently under the STRIPS program. Under the STRIPS program, the principal and interest components are separately issued by the U.S. Treasury at the request of depository financial institutions, which then trade the component parts separately. The interest component of STRIPS may be more volatile than that of U.S. Treasury bills with comparable maturities.

Other obligations include those issued or guaranteed by U.S. government agencies or instrumentalities. These obligations may or may not be backed by the "full faith and credit" of the U.S. Securities which are backed by the full faith and credit of the U.S. include obligations of the Government National Mortgage Association, the Farmers Home Administration, and the Export-Import Bank. In the case of securities not backed by the full faith and credit of the U.S., the Funds must look principally to the federal agency issuing or guaranteeing the obligation for ultimate repayment and may not be able to assert a claim against the U.S. itself in the event the agency or instrumentality does not meet its commitments. Securities in which a Fund may invest that are not backed by the full faith and credit of the U.S. include, but are not limited to: (i) obligations of the Tennessee Valley Authority, the Federal Home Loan Banks and the U.S. Postal Service, each of which has the right to borrow from the U.S. Treasury to meet its obligations; (ii) securities issued by Freddie Mac and Fannie Mae, which are supported only by the credit of such securities, but for which the Secretary of the U.S. Treasury has discretionary authority to purchase limited amounts of the agency's obligations; and (iii) obligations of the Federal Farm Credit System and the Student Loan Marketing Association, each of whose obligations may be satisfied only by the individual credits of the issuing agency.

The total public debt of the U.S. and other countries around the globe as a percent of gross domestic product has grown rapidly since the beginning of the 2008 financial downturn. Although high debt levels do not necessarily indicate or cause economic problems, they may create certain systemic risks if sound debt management practices are not implemented. A high national debt level may increase market pressures to meet government funding needs, which may drive debt cost higher and cause a country to sell additional debt, thereby increasing refinancing risk. A high national debt also raises concerns that a government will not be able to make principal or interest payments when they are due. Unsustainable debt levels can cause devaluations of currency, prevent a government from implementing effective counter-cyclical fiscal policy in economic downturns, and contribute to market volatility.

In the past, U.S. sovereign credit has experienced downgrades and there can be no guarantee that it will not experience further downgrades in the future by rating agencies. The market prices and yields of securities supported by the full faith and credit of the U.S. Government may be adversely affected by a rating agency's decision to downgrade the sovereign credit rating of the U.S.

**Variable and Floating Rate Instruments** 

Certain obligations purchased by a Fund may carry variable or floating rates of interest, may involve a conditional or unconditional demand feature and may include variable amount master demand notes. Variable and floating rate instruments are issued by a wide variety of issuers and may be issued for a wide variety of purposes, including as a method of reconstructing cash flows.

Subject to their investment objective policies and restrictions, certain Funds may acquire variable and floating rate instruments. A variable rate instrument is one whose terms provide for the adjustment of its interest rate on set dates and which, upon such adjustment, can reasonably be expected to have a market value that approximates its par value. Certain Funds may purchase extendable commercial notes. Extendable commercial notes are variable rate notes which normally mature within a short period of time (*e.g.*, one month) but which may be extended by the issuer for a maximum maturity of thirteen months.

A floating rate instrument is one whose terms provide for the adjustment of its interest rate whenever a specified interest rate changes and which, at any time, can reasonably be expected to have a market value that approximates its par value. Floating rate instruments are frequently not rated by credit rating agencies; however, unrated variable and floating rate instruments purchased by a Fund will be determined by the Adviser to be of comparable quality at the time of purchase to rated instruments eligible for purchase under the Fund's investment policies. In making such determinations, the Adviser will consider the earning power, cash flow and other liquidity ratios of the issuers of such instruments (such issuers include financial, merchandising, bank holding and other companies) and will continuously monitor their financial condition. There may be no active secondary market with respect to a particular variable or floating rate instrument purchased by a Fund. The absence of such an active secondary market could make it difficult for a Fund to dispose of the variable or floating rate instrument involved in the event the issuer of the instrument defaulted on its payment obligations, and the Fund could, for this or other reasons, suffer a loss to the extent of the default. Variable or floating rate instruments may be secured by bank letters of credit or other assets. A Fund may purchase a variable or floating rate instrument to facilitate portfolio liquidity or to permit investment of the Fund's assets at a favorable rate of return.

As a result of the floating and variable rate nature of these investments, a Fund's yields may decline, and they may forego the opportunity for capital appreciation during periods when interest rates decline; however, during periods when interest rates increase, the Fund's yields may increase, and it may have reduced risk of capital depreciation.

Past periods of high inflation, together with the fiscal measures adopted to attempt to deal with it, have seen wide fluctuations in interest rates, particularly "prime rates" charged by banks. While the value of the underlying floating or variable rate securities may change with changes in interest rates generally, the nature of the underlying floating or variable rate should minimize changes in value of the instruments. Accordingly, as interest rates decrease or increase, the potential for capital appreciation and the risk of potential capital depreciation is less than would be the case with a portfolio of fixed rate securities. A Fund's portfolio may contain floating or variable rate securities on which stated minimum or maximum rates, or maximum rates set by state law limit the degree to which interest on such floating or variable rate securities may fluctuate; to the extent it does, increases or decreases in value may be somewhat greater than would be the case without such limits. Because the adjustment of interest rates on the floating or variable rate securities is made in relation to movements of the applicable banks' "prime rates" or other short-term rate securities adjustment indices, the floating or variable rate securities are not comparable to long-term fixed rate securities. Accordingly, interest rates on the floating or variable rate securities may be higher or lower than current market rates for fixed rate obligations of comparable quality with similar maturities.

*Variable Amount Master Notes.* Variable amount master notes are notes, which may possess a demand feature, that permit the indebtedness to vary and provide for periodic adjustments in the interest rate according to the terms of the instrument. Variable amount master notes may not be secured by collateral. To the extent that variable amount master notes are secured by collateral, they are subject to the risks described under the section "Loans— Collateral and Subordination Risk."

Because master notes are direct lending arrangements between a Fund and the issuer of the notes, they are not normally traded. Although there is no secondary market in the notes, a Fund may demand payment of principal and accrued interest. If a Fund is not repaid such principal and accrued interest, the Fund may not be able to dispose of the notes due to the lack of a secondary market.

While master notes are not typically rated by credit rating agencies, issuers of variable amount master notes (which are normally manufacturing, retail, financial, brokerage, investment banking and other business concerns) must satisfy the same criteria as those set forth with respect to commercial paper. The Adviser will consider the credit risk of the issuers of such notes, including its earning power, cash flow, and other liquidity ratios of such issuers and will continuously monitor their financial status and ability to meet payment on demand. In determining average weighted portfolio maturity, a variable amount master note will be deemed to have a maturity equal to the period of time remaining until the principal amount can be recovered from the issuer.

*Variable Rate Instruments and Money Market Funds*. Variable or floating rate instruments with stated maturities of more than 397 days may, under the SEC's amortized cost rule applicable to money market funds, Rule 2a-7 under the Company Act, be deemed to have shorter maturities (other than in connection with the calculation of dollar-weighted average life to maturity of a portfolio) as follows:

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) *Adjustable Rate Government Securities.* A Government Security which is a variable rate security where
 the variable rate of interest is readjusted no less frequently than every 397 days shall be deemed to have a maturity equal to the period
 remaining until the next readjustment of the interest rate. A Government Security which is a floating rate security shall be deemed to
 have a remaining maturity of one day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) *Short-Term Variable Rate Securities.* A variable rate security, the principal amount of which, in accordance
 with the terms of the security, must unconditionally be paid in 397 calendar days or less shall be deemed to have maturity equal to the
 earlier of the period remaining until the next readjustment of the interest rate or the period remaining until the principal amount can
 be recovered through demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) *Long-Term Variable Rate Securities.* A variable rate security, the principal amount of which is scheduled
 to be paid in more than 397 days, that is subject to a demand feature shall be deemed to have a maturity equal to the longer of the period
 remaining until the next readjustment of the interest rate or the period remaining until the principal amount can be recovered through
 demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) *Short-Term Floating Rate Securities.* A floating rate security, the principal amount of which, in accordance
 with the terms of the security, must unconditionally be paid in 397 calendar days or less shall be deemed to have a maturity of one day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) *Long-Term Floating Rate Securities.* A floating rate security, the principal amount of which is scheduled
 to be paid in more than 397 days, that is subject to a demand feature, shall be deemed to have a maturity equal to the period remaining
 until the principal amount can be recovered through demand.

**When-Issued Securities and Forward Commitments** 

The Funds may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. The delivery of and payment for these securities can take place a month or more after the date of the purchase commitment. The purchase price and the interest rate payable, if any, on the securities are fixed on the purchase commitment date or at the time the settlement date is fixed. The value of such securities is subject to market fluctuation, and for money market instruments and other fixed income securities, no interest accrues to the Funds until settlement takes place. At the time a Fund makes the commitment to purchase securities on a forward commitment or when-issued basis, it will record the transaction, reflect the value each day of such securities in determining its NAV and, if applicable, calculate the maturity for the purposes of average maturity from that date. At the time of settlement, the value may be more or less than the purchase price. The Funds will maintain cash or cash equivalent or other portfolio securities equal in value to commitments for such forward commitment or when-issued transactions.

Securities purchased on a forward commitment or when-issued basis may expose the Funds to risks because they may experience changes in value prior to their settlement date based upon the public's perception of the issuer and changes, real or anticipated, in the level of interest rates. Purchasing securities on a forward commitment or when-issued basis can involve the risk that the yields available in the market when the delivery takes place may actually be higher or lower than those obtained in the transaction itself. Purchasing securities on a forward commitment or when-issued basis can also involve the risk of default by the other party on its obligation, delaying or preventing the Funds from completing the transaction.

To the extent a Fund engages in forward commitment or when-issued transactions, it will do so for the purpose of acquiring securities consistent with its investment objective and policies and not for the purpose of investment leverage.

**Zero-Coupon, Pay-in-Kind and Deferred Payment Securities**

Zero-coupon securities are securities that are sold at a discount to par value and on which interest payments are not made during the life of the security. Upon maturity, the holder is entitled to receive the par value of the security. Pay-in-kind securities are securities that have interest payable by delivery of additional securities. Upon maturity, the holder is entitled to receive the aggregate par value of the securities. A Fund accrues income with respect to zero-coupon and pay-in-kind securities prior to the receipt of cash payments. Deferred payment securities are securities that remain zero-coupon securities until a predetermined date, at which time the stated coupon rate becomes effective and interest becomes payable at regular intervals. While interest payments are not made on such securities, holders of such securities are deemed to have received "phantom income." Because a Fund will distribute "phantom income" to shareholders, to the extent that shareholders elect to receive dividends in cash rather than reinvesting such dividends in additional shares, the applicable Fund will have fewer assets with which to purchase income-producing securities. Zero-coupon, pay-in-kind and deferred payment securities may be subject to greater fluctuation in value and lesser liquidity in the event of adverse market conditions than comparably rated securities paying cash interest at regular interest payment periods.

**Other Risks**

**Securities Lending**

To generate additional income, a Fund may lend up to 33-1/3% of its total assets pursuant to agreements requiring that the loan be continuously secured by collateral equal to at least 100% of the market value plus accrued interest on the securities lent.

Loans are subject to termination by a Fund or the borrower at any time, and therefore, are not considered to be illiquid investments. A Fund does not have the right to vote proxies for securities on loan. However, the Adviser may terminate a loan if the vote is considered material with respect to an investment.

Securities lending involves counterparty risk, including the risk that the loaned securities may not be returned or returned in a timely manner and/or a loss of rights in the collateral if the borrower or the lending agent defaults or fails financially. This risk is increased when a Fund's loans are concentrated with a single or limited number of borrowers. The earnings on the collateral invested may not be sufficient to pay fees incurred in connection with the loan. Also, the principal value of the collateral invested may decline and may not be sufficient to pay back the borrower for the amount of collateral posted. There are no limits on the number of borrowers a Fund may use and a Fund may lend securities to only one or a small group of borrowers.

To the extent that the value or return of a Fund's investments of the cash collateral declines below the amount owed to a borrower, the Fund may incur losses that exceed the amount it earned on lending the security. In situations where the Adviser does not believe that it is prudent to sell the cash collateral investments in the market, a Fund may borrow money to repay the borrower the amount of cash collateral owed to the borrower upon return of the loaned securities. This will result in financial leverage, which may cause a Fund to be more volatile because financial leverage tends to exaggerate the effect of any increase or decrease in the value of the Fund's portfolio securities.

**Operational Risk** 

An investment in a Fund, like any mutual fund, can involve operational risks arising from factors such as processing errors, human errors, inadequate or failed internal or external processes, failures in systems and technology, changes in personnel and errors caused by third-party service providers. The occurrence of any of these failures, errors or breaches could result in a loss of information, regulatory scrutiny, reputational damage or other events, any of which could have a material adverse effect on a Fund. While the Funds seek to minimize such events through controls and oversight, there may still be failures that could cause losses to a Fund.

**Cybersecurity Risk**

The computer systems, networks and devices used by the Funds and their service providers to carry out routine business operations employ a variety of protections designed to prevent damage or interruption from computer viruses, network failures, computer and telecommunication failures, infiltration by unauthorized persons, and security breaches. Despite the various protections utilized by the Funds and their service providers, systems, networks, or devices potentially can be breached due to both intentional and unintentional events. A Fund and its shareholders could be negatively impacted as a result of a cybersecurity breach.

Similar adverse consequences could result from cybersecurity breaches affecting issuers of securities in which a Fund invests; counterparties with which a Fund engages in transactions; governmental and other regulatory authorities; exchange and other financial market operators, banks, brokers, dealers, insurance companies, and other financial institutions (including financial intermediaries and service providers for a Fund's shareholders); and other parties.

Cybersecurity breaches can include unauthorized access to systems, networks, or devices; infection from computer viruses or other malicious software code; ransomware; and attacks that shut down, disable, slow, or otherwise disrupt operations, business processes, or website access or functionality. Cybersecurity breaches may cause disruptions and impact a Fund's business operations, potentially resulting in financial losses; may negatively impact the financial condition of an issuer, counterparty or other market participant; interference with a Fund's ability to calculate their NAVs; impediments to trading; the inability of a Fund, the Adviser, and other service providers to transact business; violations of applicable privacy and other laws; regulatory fines, penalties, reputational damage, reimbursement or other compensation costs, or additional compliance costs; as well as the inadvertent release of confidential information. In addition, substantial costs may be incurred by these entities in order to prevent any cybersecurity breaches in the future. Neither a Fund nor the Adviser control the cybersecurity systems of issuers or third-party service providers.

**INVESTMENT LIMITATIONS** 

<u>Fundamental</u>. The investment limitations described below have been adopted by the Trust with respect to each Fund and are fundamental ("Fundamental") (*i.e*., they may not be changed without the affirmative vote of a majority of the outstanding Shares of a Fund). As used in the Prospectus and this SAI, the term "majority" of the outstanding Shares of a Fund means the lesser of: (1) 67% or more of the outstanding Shares of a Fund present at a meeting, if the holders of more than 50% of the outstanding Shares of the Fund are present or represented at such meeting; or (2) more than 50% of the outstanding Shares of a Fund. Other investment practices that may be changed by the Board without the approval of shareholders to the extent permitted by applicable law, regulation or regulatory policy are considered nonfundamental ("Nonfundamental").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Borrowing Money</u>. A Fund will not borrow money, except (a) from a bank or from another Fund of the Trust, provided that immediately after such borrowing there is an asset coverage of 300% for all borrowings of the Fund; or (b) from a bank or other persons for temporary purposes only, provided that such temporary borrowings are in an amount not exceeding 5% of the Fund's total assets at the time when the borrowing is made. This limitation does not preclude a Fund from entering into reverse repurchase transactions, provided that the Fund has an asset coverage of 300% for all borrowing and repurchase commitments of the Fund pursuant to reverse repurchase transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Senior Securities</u>. A Fund will not issue senior securities. This limitation is not applicable to activities that may be deemed to involve the issuance or sale of a senior security by a Fund, provided that the Fund's engagement in such activities is (a) consistent with or permitted by the Company Act the rules and regulations promulgated thereunder or interpretations of the SEC or its staff and (b) as described in the Prospectus and this SAI.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Underwriting</u>. A Fund will not act as underwriter of securities issued by other persons. This limitation is not applicable to the extent that, in connection with the disposition of portfolio securities (including restricted securities), a Fund may be deemed an underwriter under certain federal securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Real Estate</u>. A Fund will not purchase or sell real estate. This limitation is not applicable to investments in marketable securities that are secured by or represent interests in real estate. This limitation does not preclude a Fund from investing in mortgage-related securities or investing in companies engaged in the real estate business or that have a significant portion of their assets in real estate (including real estate investment trusts).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Commodities</u>. A Fund will not purchase or sell commodities unless acquired as a result of ownership of securities or other investments. This limitation does not preclude a Fund from purchasing or selling options or futures contracts, from investing in securities or other instruments backed by commodities or from investing in companies that are engaged in a commodities business or have a significant portion of their assets in commodities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Loans</u>. A Fund will not lend any security or make any other loan if, as a result, more than 33 1/3% of its total assets would be lent to other parties, but this limitation does not apply to purchases of debt securities or to repurchase agreements, or to acquisitions of loans, loan Participations or other forms of debt instruments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Concentration</u>. A Fund will not invest 25% or more of its respective total assets in any particular industry. This limitation is not applicable to investments in obligations issued or guaranteed by the U.S. government, its agencies and instrumentalities or repurchase agreements with respect thereto.

With respect to the percentages adopted by the Trust as maximum limitations on its investment policies and limitations, an excess above the fixed percentage will not be a violation of the policy or limitation unless the excess results immediately and directly from the acquisition of any security or the action taken. This paragraph does not apply to the borrowing policy set forth in paragraph (1) above.

With respect to paragraph (1) above, if asset coverage on borrowing at any time falls below 300% for a Fund, within three days (or such longer period as the SEC may prescribe by rule or regulation) that Fund will reduce the amount of its borrowings to the extent that asset coverage of such borrowings will be at least 300%.

With respect to the fundamental policy relating to concentration set forth in paragraph 7 above, the Trust applies industry classifications to the receivables underlying MBS and ABS issued by private originators or issuers.

Notwithstanding any of the foregoing limitations, any investment company, whether organized as a trust, association, corporation, or a personal holding company, may be merged or consolidated with or acquired by the Trust, provided that if such merger, consolidation, or acquisition results in an investment in the securities of any issuer prohibited by said paragraphs, the Trust shall, within ninety days after the consummation of such merger, consolidation, or acquisition, dispose of all of the securities of such issuer so acquired or such portion thereof as shall bring the total investment therein within the limitations imposed by said paragraphs above as of the date of consummation.

<u>Nonfundamental</u>. The following limitations have been adopted by the Trust with respect to each Fund and are Nonfundamental (see "Investment Limitations" above).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Pledging</u>. A Fund will not mortgage, pledge, hypothecate, or in any manner transfer, as security for indebtedness, any of its assets except as may be necessary in connection with borrowings described in limitation (1) above. Margin deposits, security interests, liens and collateral arrangements with respect to transactions involving options, futures contracts, short sales and other permitted investments and techniques are not deemed to be a mortgage, pledge or hypothecation of assets for purposes of this limitation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Borrowing</u>. A Fund will not purchase any security while borrowings (including reverse repurchase agreements) representing more than 5% of its total assets are outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Margin Purchases</u>. A Fund will not purchase securities or evidences of interest thereon on "margin." This limitation is not applicable to short term credit obtained by a Fund for the clearance of purchases and sales or redemption of securities, or to arrangements with respect to transactions involving options, futures contracts, short sales and other permitted investments and techniques.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Options</u>. A Fund will not purchase or sell puts, calls, options or straddles, except as described in the Prospectus and this SAI.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Reverse Repurchase Agreements</u>. Other than the Short Duration Securitized Bond Fund, the Securitized Total Return Fund, the Core Bond Fund and the Core Plus Bond Fund, a Fund will not enter into reverse repurchase agreements.

**SHARES OF THE FUNDS** 

Each Fund of the Trust is registered to offer Investor Shares, Class I Shares and Class Y Shares. All classes of Shares represent an interest in the same portfolio of investments of a Fund and have the same rights, except that each class has exclusive voting rights with respect to its Rule 12b-1 distribution plan. The NAV per Share of each of the classes is expected to differ from time to time.

● **Investor Shares** 

Investor Shares (except the Short Duration Securitized Bond Fund) are available to the general public and may also be purchased through financial intermediaries that have entered into agreements with the Funds or their agents.

Investor Shares of the Short Duration Securitized Bond Fund have the same features and restrictions as the Class I Shares described below.

● **Class I Shares** 

Class I Shares are not subject to a sales charge or any 12b-1 fees. Class I Shares are available for purchase by institutional investors such as corporations, pension and profit share or defined contribution plans, non-profit organizations, charitable trusts, foundations, endowments or other entity deemed by the principal underwriter to be a financial institution or institutional buyer or a broker-dealer, whether the purchaser is acting for itself or in some fiduciary capacity. Class I Shares may also be purchased through financial intermediaries that have entered into agreements with the Funds or their agents. Financial intermediaries may include financial advisors, investment advisors, brokers, financial planners, banks, insurance companies, retirement or 401(k) plan administrations or any other organization authorized to act in a fiduciary, advisory, custodial or agency capacity for its clients or customers. Financial intermediaries or such other organizations may impose eligibility requirements for each of their clients or customers investing in the Funds, including investment minimum requirements, which may be the same or differ from the requirements for investors purchasing directly from the Funds, and certain financial intermediaries may charge their customers transaction or other fees. Class I Shares may also be purchased by officers, trustees, directors and employees, and their immediate family members, of Diamond Hill Investment Group, Inc. ("DHIL") and its subsidiaries and affiliates. Class I Shares may be available at brokerage firms that have agreements with the Funds' distributor. Shareholders may be required to pay a commission and/or other form of compensation to the broker. Shares of the Funds are available in other Share classes that have different fees and expenses.

● **Class Y Shares** 

Class Y Shares are not subject to a sales charge or any 12b-1 fees. Class Y Shares are available for purchase by institutional investors such as corporations, pension and profit share or defined contribution plans, non-profit organizations, charitable trusts, foundations and endowments or other entity deemed by the principal underwriter to be a financial institution or institutional buyer. Class Y Shares may also be purchased by individual investors, if purchased through financial intermediaries authorized to act in an investment advisory capacity that have entered into a written agreement with the Adviser or the applicable Fund to offer such Shares through an omnibus account held at the Fund.

All Class Y purchases of a Fund, whether purchased by an institutional investor or by a financial intermediary on behalf of an individual investor, will not require the Fund, its investment adviser or any other affiliates, to make any sub-transfer agent, service, networking, distribution-related, marketing, maintenance, revenue sharing or any other fees or payments to any third party now or for the entire life of the investment in the Class Y Shares. Class Y Shares have no ongoing shareholder service fees.

**Additional Purchase and Redemption Information** 

All investments and exchanges are subject to approval by a Fund, and the Fund reserves the right to reject any purchase or exchange of Shares at any time. The Funds request advance notification of investments in excess of 5% of the current net assets of the respective Fund. The Funds also encourage, to the extent possible, advance notification of large redemptions.

Generally, all purchases must be made in cash. However, the Funds reserve the right to accept payment in readily marketable securities instead of cash in accordance with procedures approved by the Board. If payment is made in securities, the applicable Fund will value the securities in the same manner in which it computes its NAV.

Generally, all redemptions will be for cash. However, if during any 90-day period you redeem Shares in an amount greater than the lesser of $250,000 or 1% of a Fund's net assets, the Funds reserve the right to pay part, or all of your redemption proceeds above such threshold in readily marketable securities instead of cash in accordance with procedures approved by the Board. Redemption-in-kind proceeds are limited to securities that are traded on a public securities market or are limited to securities for which bid and asked prices are available. These securities may be distributed to the redeeming shareholder based on a pro-rata slice of the Fund's portfolio or a non-pro-rata slice of the Fund's portfolio depending upon various circumstances and subject to the Fund's policies and procedures and any applicable laws or regulations. If payment is made in kind with securities, a Fund will value the securities selected in the same manner in which it computes its NAV. This process minimizes the effect of large redemptions on a Fund and its remaining shareholders. If you receive securities when redeeming your account, the securities will be subject to market fluctuation, and you may incur tax and transaction costs if the securities are sold.

In some circumstances, to meet Fund liquidity needs, optimizing a Fund's portfolio, or a combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial institutions that are willing, upon redemption of their investment in a Fund, to receive their redemption in-kind rather than in cash. A Fund's ability to pay these redemption proceeds in-kind relieves the Fund of the need to sell the securities that are distributed in-kind and incur brokerage and other transaction costs associated with such sale. As with other in-kind redemption transactions, a Fund would enter into these transactions only when the Fund determines it to be in the Fund's best interest to do so, and in accordance with the Fund's policies on redemptions in-kind. The Funds' procedures adopted to discourage excessive or abusive trading activities do not apply to the transactions described in this paragraph, as the Adviser has determined that these transactions are not detrimental to the remaining shareholders of a Fund. Financial institutions that participate in the transactions described in this paragraph do not receive a fee from the Fund for doing so. These transactions differ in that respect from the liquidity service transactions described under "Reflow Redemption Service."

The Trust may suspend the right of redemption for such periods as are permitted under the Company Act and under the following unusual circumstances: (i) when the NYSE is closed (other than weekends and holidays) or trading is restricted, (ii) when an emergency exists, making disposal of portfolio securities or the valuation of net assets not reasonably practicable, or (iii) during any period when the SEC has by order permitted a suspension of redemption for the protection of shareholders.

**THE INVESTMENT ADVISER** 

Diamond Hill Capital Management, Inc., 325 John H. McConnell Boulevard, Suite 200, Columbus, Ohio 43215 is the investment adviser for the Funds. The Adviser is a wholly-owned subsidiary of DHIL.

Under the terms of the amended and restated investment management agreement between the Trust and the Adviser (the "Investment Management Agreement"), the Adviser manages the Funds' investments. As compensation for management services, the Funds are obligated to pay the Adviser fees computed and accrued daily and paid monthly at the annual rates set forth below:

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| | |
|:---|:---|
| **Fund** | **Percentage of Average**<br> **Daily Net Assets** |
| &nbsp;&nbsp;&nbsp;Small Cap Fund | 0.80% |
| &nbsp;&nbsp;&nbsp;Small-Mid Cap Fund | 0.75% |
| &nbsp;&nbsp;&nbsp;Mid Cap Fund | 0.60% |
| &nbsp;&nbsp;&nbsp;Large Cap Fund | 0.50% |
| &nbsp;&nbsp;&nbsp;Select Fund | 0.70% |
| &nbsp;&nbsp;&nbsp;Long-Short Fund | 0.90% |
| &nbsp;&nbsp;&nbsp;International Fund | 0.65% |
| &nbsp;&nbsp;&nbsp;Short Duration Securitized Bond Fund | 0.35% |
| &nbsp;&nbsp;&nbsp;Securitized Total Return Fund | 0.70% |
| &nbsp;&nbsp;&nbsp;Core Bond Fund | 0.30% |
| &nbsp;&nbsp;&nbsp;Core Plus Bond Fund | 0.40% |

---

The Funds paid investment management fees to the Adviser for the following fiscal periods:

---

| | | | |
|:---|:---|:---|:---|
|  | **Fiscal Year Ended<br> December 31, 2025** | **Fiscal Year Ended<br> December 31, 2024** | **Fiscal Year Ended<br> December 31, 2023** |
| Small Cap Fund | $1725585 | $1877651 | $2240106 |
| Small-Mid Cap Fund | 7000810 | 10685050 | 13702436 |
| Mid Cap Fund | 636923 | 966993 | 984442 |
| Large Cap Fund | 39757025 | 44181410 | 41318980 |
| Select Fund | 3985655 | 3785994 | 2680708 |
| Long-Short Fund | 17879309 | 16182453 | 15848904 |
| International Fund | 1035467 | 871387 | 434237 |
| Short Duration Securitized Bond Fund | 14665247 | 8406819 | 4848528 |
| Securitized Total Return Fund<sup>(1)</sup> | 101814 |  |  |
| Core Bond Fund | 7748724 | 5287059 | 2950814 |
| Core Plus Bond Fund<sup>(2)</sup> | 264330 | 24583 |  |

---

 

<sup>(1)</sup> The Securitized Total Return Fund commenced operations on July 1, 2025.

<sup>(2)</sup> The Core Plus Bond Fund commenced operations on October 15, 2024.

 

The Adviser has contractually agreed to permanently waive fees in the pro-rata amount of the management fee charged by an underlying Diamond Hill Fund on each Fund's investment in such other Diamond Hill Fund. As of December 31, 2025, there were no underlying Diamond Hill Fund investments in another Diamond Hill Fund. During the fiscal years ended December 31, 2025, December 31, 2024, and December 31, 2023, the Funds reduced investment management fees pursuant to the fee waiver agreement as follows:

 

---

| | | | |
|:---|:---|:---|:---|
|  | **Fiscal Year Ended<br> December 31, 2025** | **Fiscal Year Ended<br> December 31, 2024** | **Fiscal Year Ended<br> December 31, 2023** |
| Small-Mid Cap Fund | $– $| 27768 | $31811 |

---

The Adviser retains the right to use the name "Diamond Hill" in connection with another investment company or business enterprise with which the Adviser is or may become associated. The Trust's right to use the name "Diamond Hill" automatically ceases ninety days after termination of the Investment Management Agreement and may be withdrawn by the Adviser on ninety days written notice.

The Adviser may make payments to banks or other financial institutions that provide shareholder services and administer shareholder accounts. A Fund may from time to time purchase securities issued by banks that provide such services; however, in selecting investments for the Fund, no preference will be shown for such securities.

Under the terms of the Amended and Restated Administrative and Transfer Agency Services Agreement (the "Administration Agreement") between the Trust and Diamond Hill Capital Management, Inc. (the "Administrator"), the Administrator renders all administrative, transfer agency, fund accounting and supervisory services to the Funds. The Administrator oversees the maintenance of all books and records with respect to each Fund's securities transactions and each Fund's book of accounts in accordance with all applicable federal and state laws and regulations. The Administrator also arranges for the preservation of journals, ledgers, corporate documents, brokerage account records and other records that are required pursuant to Rule 31a-1 promulgated under the Company Act. The Administrator is also responsible for the equipment, staff, office space and facilities necessary to perform its obligations. The Administrator may delegate any or all of its responsibilities under the Administration Agreement to one or more third-party service providers.

Under the Administration Agreement, the Administrator assumes and pays all operating expenses of the Funds not specifically assumed by the Funds. The Funds pay all brokerage fees and commissions, custodian fees, taxes, borrowing costs (such as interest and dividend expenses on securities sold short), expenses related to conducting shareholders' meetings and proxy solicitations, fees and extraordinary or non-recurring expenses. The Funds also pay expenses that they are authorized to pay pursuant to Rule 12b-1 under the Company Act.

Pursuant to the Administration Agreement, effective February 28, 2026, the Administrator receives a fee, which is paid monthly at an annual rate of 0.22% of each Fund's average daily net assets of Investor Shares, 0.18% of each Fund's average daily net assets of Class I Shares, and 0.05% of each Fund's average daily net assets of Class Y Shares. Previously, effective March 1, 2018, the Administrator received a fee at an annual rate of 0.21% of each Fund's average daily net assets of Investor Shares, 0.17% of each Fund's average daily net assets of Class I Shares, and 0.05% of each Fund's average daily net assets of Class Y Shares.

The Funds paid the following total administrative services fees to the Administrator for the following fiscal periods:

---

| | | | |
|:---|:---|:---|:---|
|  | **Fiscal Year Ended<br> December 31, 2025** | **Fiscal Year Ended<br> December 31, 2024** | **Fiscal Year Ended<br> December 31, 2023** |
| Small Cap Fund | $361140 | $401325 | $484071 |
| Small-Mid Cap Fund | 1063336 | 1577273 | 2045019 |
| Mid Cap Fund | 177464 | 265514 | 271703 |
| Large Cap Fund | 10527502 | 11604660 | 11332575 |
| Select Fund | 902181 | 868401 | 594160 |
| Long-Short Fund | 3295192 | 3023520 | 2980131 |
| International Fund | 191744 | 143984 | 58979 |
| Short Duration Securitized Bond Fund | 6945566 | 4034328 | 2292751 |
| Securitized Total Return Fund<sup>(1)</sup> | 7296 |  |  |
| Core Bond Fund | 3842009 | 2755905 | 1550144 |
| Core Plus Bond Fund<sup>(2)</sup> | 67465 | 3087 |  |

---

 

<sup>(1)</sup> The Securitized Total Return Fund commenced operations on July 1, 2025.

<sup>(2)</sup> The Core Plus Bond Fund commenced operations on October 15, 2024.

 

Source: MSCI. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI's express written consent.

 

The Adviser has entered into an agreement with the London Stock Exchange Group plc and its group undertakings (collectively, the "LSE Group"). <sup>©</sup> LSE Group 2020. FTSE Russell is a trading name of certain of the LSE Group companies. Russell<sup>®</sup> and The Yield Book<sup>®</sup> are a trademarks of the relevant LSE Group companies and are used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company's express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.

 

BLOOMBERG, BLOOMBERG INDICES and Bloomberg Fixed Income Indices (the "Indices") are trademarks or service marks of Bloomberg Finance L.P. Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited, the administrator of the Indices (collectively, "Bloomberg") or Bloomberg's licensors own all proprietary rights in the Indices. Bloomberg does not guarantee the timeliness, accuracy or completeness of any data or information relating to the Indices. Bloomberg makes no warranty, express or implied, as to the Indices or any data or values relating thereto or results to be obtained therefrom, and expressly disclaims all warranties of merchantability and fitness for a particular purpose with respect thereto. To the maximum extent allowed by law, Bloomberg, its licensors, and its and their respective employees, contractors, agents, suppliers and vendors shall have no liability or responsibility whatsoever for any injury or damages - whether direct, indirect, consequential, incidental, punitive or otherwise - arising in connection with the Indices or any data or values relating thereto - whether arising from their negligence or otherwise.

**Portfolio Manager Compensation** 

**** 

All of the portfolio managers of the Adviser ("Portfolio Managers" or "PMs") are paid a competitive base salary based on experience, external market comparisons to similar positions, and other business factors. To align their interests with those of shareholders, all Portfolio Managers also participate in an annual cash and equity incentive compensation program that is based on:

 

● The long-term pre-tax investment performance of the Fund(s) that they manage and the related investment composite(s) of the Adviser;

 

● The Adviser's assessment of the investment contribution they make to Funds they do not manage;

 

● The Adviser's assessment of each Portfolio Manager's overall contribution to the development of the investment team through ongoing discussion, interaction, feedback, and collaboration; and

 

● The Adviser's assessment of each Portfolio Manager's contribution to client service, marketing to prospective clients and investment communication activities.

 

Long-term performance is defined as the trailing five years (performance of less than five years is judged on a subjective basis).

 

Incentive compensation is paid annually from an incentive pool that is determined based on several factors, including investment results in client portfolios, revenues, employee performance, and industry operating margins. Portfolio Manager compensation is not directly tied to product asset growth or revenue. However, both of these factors influence the size of the incentive pool, and therefore indirectly contribute to Portfolio Manager compensation. Incentive compensation is subject to review and oversight by the compensation committee of DHIL's board of directors. Only independent DHIL directors are members of the compensation committee. The Portfolio Managers are also eligible to participate in the DHIL 401(k) plan ("401K Plan") and related company match. DHIL also has a deferred compensation plan, whereby each Portfolio Manager is eligible to participate and may voluntarily elect to defer a portion of their incentive compensation. Portfolio Managers are encouraged to invest any deferral of incentive compensation in a Diamond Hill Fund for the entire duration of the deferral.

**Portfolio Manager Holdings** 

**** 

Portfolio Managers are encouraged to own Shares of the Funds they manage. The following table indicates for each Fund the dollar range of Shares beneficially owned by each Fund's Portfolio Manager as of December 31, 2025. This table includes Shares beneficially owned by such Portfolio Manager through the 401K Plan and the DHIL deferred compensation plans.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | |  | **Dollar Range of Shares in the Fund** | **Dollar Range of Shares in the Fund** | **Dollar Range of Shares in the Fund** | **Dollar Range of Shares in the Fund** | **Dollar Range of Shares in the Fund** | **Dollar Range of Shares in the Fund** | **Dollar Range of Shares in the Fund** |
| <br>**Fund** | <br>**Portfolio Manager** | | **None** | **$1 –**<br> **$10000** | **$10001 –**<br> **$50000** | **$50001 –**<br> **$100000** | **$100001 –**<br> **$500000** | **$500001 –**<br> **$1000000** | **Over**<br> **$1,000,000** |
| Small Cap Fund | Aaron Monroe | PM |  |  |  |  |  |  | X |
| Small-Mid Cap Fund | Christopher Welch | PM |  |  |  |  |  |  | X |
|  | Anthony Philipp | PM |  |  |  |  | X |  |  |
| Mid Cap Fund | Christopher Welch | PM |  |  |  |  |  |  | X |
|  | Anthony Philipp | PM |  |  |  |  | X |  |  |
| Large Cap Fund | Austin Hawley | PM |  |  |  |  |  |  | X |
| Select Fund | Austin Hawley | PM |  |  |  |  |  |  | X |
|  | Richard Snowdon | PM |  |  |  |  |  |  | X |
| Long-Short Fund | Christopher Bingaman | PM |  |  |  |  |  |  | X |
|  | Nathan Palmer | PM |  |  |  |  |  |  | X |
| International Fund | Krishna Mohanraj | PM |  |  |  |  |  |  | X |
| Short Duration Securitized Bond Fund | Henry Song | PM |  |  |  |  |  |  | X |
|  | Mark Jackson | PM |  |  |  |  |  |  | X |
| Securitized Total Return Fund | Henry Song | PM | X |  |  |  |  |  |  |
| Core Bond Fund | Henry Song | PM |  |  |  |  |  |  | X |
|  | Mark Jackson | PM |  |  |  |  |  | X |  |
| Core Plus Bond Fund | Henry Song | PM |  |  |  |  | X |  |  |
|  | Mark Jackson | PM |  |  |  |  | X |  |  |
|  | Arthur Cheng | PM |  |  |  |  | X |  |  |

---

 

**Other Portfolio Manager Information** 

 

Some Portfolio Managers are also responsible for managing certain Diamond Hill Funds and other account portfolios in addition to the respective Funds in which they manage. Management of certain Diamond Hill Funds and other accounts in addition to a Fund can present certain conflicts of interest, including those associated with different fee structures, various trading practices, and the amount of time the Portfolio Manager may spend on Diamond Hill Funds and other accounts versus the respective Funds they manage. The Adviser has implemented specific policies and procedures to address any potential conflicts. The Adviser's Form ADV Part 2A contains a complete description of its policies and procedures to address conflicts of interest. Below are material conflicts of interest that have been identified and mitigated when managing Diamond Hill Funds and other account portfolios as well as a Fund.

 

*Performance Based Fees* 

** 

The Adviser manages certain accounts for which part of its fee is based on the performance of the account/fund ("Performance Fee Accounts"). As a result of the performance-based fee component, the Adviser may receive additional revenue related to the Performance Fee Accounts. None of the Portfolio Managers receive any direct incentive compensation related to their management of the Performance Fee Accounts; however, revenues from Performance Fee Accounts management will impact the resources available to compensate Portfolio Managers and all staff.

 

*Trade Allocation* 

** 

The Adviser manages certain Diamond Hill Funds and numerous other accounts in addition to the Funds. When a Fund and another of the Adviser's clients seek to purchase or sell the same security at or about the same time, the Adviser may execute the transactions with the same broker on a combined or "blocked" basis. Blocked transactions can produce better execution for a Fund because of increased volume of the transaction. However, when another of the Adviser's clients specifies that trades be executed with a specific broker ("Directed Brokerage Accounts"), a potential conflict of interest exists related to the order in which those trades are executed and allocated. As a result, the Adviser has adopted a trade allocation policy in which all trade orders occurring simultaneously among any of the Funds and one or more Diamond Hill Funds and other accounts where the Adviser has the discretion to choose the execution broker are blocked and executed first. After the blocked trades have been completed, the remaining trades for the Directed Brokerage Accounts are then executed in random order, through the Adviser's portfolio management software. When a trade is partially filled, the number of filled Shares is generally allocated on a pro-rata basis to the appropriate client accounts. Trades are not segmented by investment product. Diamond Hill participates in Model Delivery Programs where the Adviser does not have investment discretion or trade execution authority. For certain investment strategies, model portfolio updates may be provided contemporaneously with the Adviser's execution of transactions in the Diamond Hill Funds.

*Code of Ethics and Personal Security Trading*

 

The Adviser and the Trust have adopted a Code of Ethics designed to: (i) demonstrate the Adviser's duty at all times to place the interest of clients and Fund shareholders first; (ii) align the interests of the Portfolio Managers with clients and Fund shareholders, and (iii) mitigate inherent conflicts of interest associated with personal securities transactions. The Code of Ethics prohibits all employees of the Adviser from purchasing any individual equity and most fixed income securities that are eligible to be purchased by the Diamond Hill Funds. The Code of Ethics also prohibits the purchase of third party mutual funds in the primary Morningstar categories with which the Adviser competes. As a result, each Portfolio Manager is a significant owner in the Diamond Hill Funds.

*Best Execution and Research Services*

 

The Adviser has controls in place for monitoring trade execution in client accounts, including reviewing trades for best execution. The primary consideration in placing a portfolio transaction with a particular broker is obtaining the most favorable prices for each client under the circumstances of each particular transaction. More specifically, the Adviser will consider the full range and quality of the services offered by a broker. The determination to place a trade with a particular broker will be based on certain considerations, including but not limited to: price competitiveness, execution capability, brokerage and research products, trading expertise in relevant financial instruments, liquidity provision, execution accuracy, commission rates, reputation, integrity, dispute resolution fairness, financial responsibility, and responsiveness in settling trades. Certain broker-dealers that the Adviser uses to execute client trades are also clients of the Adviser and/or refer clients to the Adviser creating a conflict of interest. To mitigate this conflict, the Adviser adopted a policy that prohibits it from considering any factor other than best execution when a client trade is placed with a broker-dealer.

 

The Adviser may consider the receipt of research services in selecting brokers to execute portfolio transactions for the Funds. Since the Adviser uses client brokerage commissions to obtain research, it receives a benefit because it does not have to produce or pay for the research, products, or services itself. Consequently, the Adviser has an incentive to select or recommend a broker based on its desire to receive research, products, or services rather than a desire to obtain the most favorable execution. Additionally, the research services and other information furnished by brokers through whom the Funds effect securities transactions may be used by the Adviser in servicing all of its accounts. Similarly, research and information provided by brokers or dealers serving other clients may be useful to the Adviser in connection with its services to the Funds. There may be a conflict of interest if soft dollars are not spread in the same proportion across all accounts. The Adviser attempts to mitigate these potential conflicts through oversight of the use of commissions by its Best Execution Committee.

*Other Accounts Managed by the Portfolio Managers* 

 

The following tables indicate the number of other accounts managed by each Portfolio Manager and the other assets under management for each type of account as of December 31, 2025.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name of Portfolio Manager** | **Account Category** | **Number of<br> Accounts** | **Total Assets in<br> Accounts** | **Number of<br> Accounts Where<br> Advisory Fee is<br> Based on<br> Account<br> Performance** | **Total Assets in<br> Accounts Where<br> Advisory Fee is<br> Based on<br> Account<br> Performance** |
| Christopher Bingaman | Registered Investment Company |  | $— |  | $— |
| Portfolio Manager, Long-Short Fund | Other Pooled Investment Vehicles |  | $— |  | $— |
|  | Other Accounts |  | $— |  | $— |
| Arthur Cheng | Registered Investment Company |  | $— |  | $— |
| Portfolio Manager, Core Plus Bond Fund | Other Pooled Investment Vehicles |  | $— |  | $— |
|  | Other Accounts |  | $— |  | $— |
| Austin Hawley | Registered Investment Company | 2 | $1868242422 |  | $— |
| Portfolio Manager, Select Fund and Large Cap Fund | Other Pooled Investment Vehicles | 5 | $2180885986 |  | $— |
|  | Other Accounts | 75 | $4389936489 |  | $— |
| Mark Jackson | Registered Investment Company |  | $— |  | $— |
| Portfolio Manager, Short Duration Securitized Bond Fund, Core Bond Fund and Core Plus Bond Fund | Other Pooled Investment Vehicles | 1 | $216022017 |  | $— |
|  | Other Accounts | 5 | $521756403 |  | $— |
| Krishna Mohanraj | Registered Investment Company |  | $— |  | $— |
| Portfolio Manager, International Fund | Other Pooled Investment Vehicles |  | $— |  | $— |
|  | Other Accounts |  | $— |  | $— |
| Aaron Monroe | Registered Investment Company | 2 | $21626740 |  | $— |
| Portfolio Manager, Small Cap Fund | Other Pooled Investment Vehicles | 2 | $56714453 | 1 | $30376664 |
|  | Other Accounts | 1 | $13887854 |  | $— |
| Nathan Palmer | Registered Investment Company |  | $— |  | $— |
| Portfolio Manager, Long-Short Fund | Other Pooled Investment Vehicles |  | $— |  | $— |
|  | Other Accounts |  | $— |  | $— |
| Athony Phillip | Registered Investment Company | 2 | $1028510421 |  | $— |
| Portfolio Manager, Small-Mid Cap Fund and Mid Cap Fund | Other Pooled Investment Vehicles | 3 | $227513929 |  | $— |
|  | Other Accounts | 7 | $72245522 |  | $— |
| Richard Snowdon | Registered Investment Company | 0 | $0 |  | $— |
| Portfolio Manager, Select Fund | Other Pooled Investment Vehicles | 1 | $24719639 |  | $— |
|  | Other Accounts | 7 | $174016150 |  | $— |
| Henry Song | Registered Investment Company | 1 | $132810060 |  | $— |
| Portfolio Manager, Short Duration Securitized Bond Fund, Securitized Total Return Fund, Core Bond Fund and Core Plus Bond Fund | Other Pooled Investment Vehicles | 1 | $216022017 |  | $— |
|  | Other Accounts | 5 | $521756403 |  | $— |
| Christopher Welch | Registered Investment Company | 2 | $1028510421 |  | $— |
| Portfolio Manager, Small-Mid Cap Fund and Mid Cap Fund | Other Pooled Investment Vehicles | 3 | $227513929 |  | $— |
|  | Other Accounts | 7 | $72245522 |  | $— |

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**TRUSTEES AND OFFICERS** 

The names of the Trustees and officers of the Trust ("Officers") are shown below. Each Trustee is an independent and non-interested Trustee as defined in the Company Act.

**<u>Trustees</u>**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position**<br> **Held** | **Year First<br> Elected a<br> Trustee of the<br> Trust<sup>1</sup>** | **Principal Occupation(s)**<br> **During Past Five Years** | **Number of**<br> **Portfolios<br> in Fund<br> Complex**<br> **Overseen by**<br> **Trustee<sup>2</sup>** | **Other<br> Directorships<br> Held by<br> Trustee <sup>3</sup>** |
| Tamara L. Fagely<br> Year of Birth: 1958 | Trustee, Board Chair | 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 | 13 | Diamond Hill Securitized Credit Fund, August 2024 to present; 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<br> Year of Birth: 1969 | Trustee | Since February 2022 | Chief Executive Officer, Symphony Consulting, 2010 to present | 13 | Diamond Hill Securitized Credit Fund, August 2024 to present; Voya Funds, September 2025 to present; Hussman Investment Trust, June 2016 to July 2025; Forum CRE Income Fund, April 2021 to January 2022 |
| Anthony J. Ghoston<br> Year of Birth: 1959 | Trustee | Since May 2022 | Retired, 2025 to present; Chief Executive Officer and President, Informational Resource Consulting, 2020 to 2025; President, Chief Operating Officer and Chief Compliance Officer, Dividend Assets Capital, LLC, 2010 to 2020 | 12 |  |
| John T. Kelly-Jones<br> Year of Birth: 1960 | Trustee | Since May 2019 | Retired, December 2017 to present; Partner, COO and CCO, Independent Franchise Partners, LLP, June 2009 to November 2017 | 13 | Diamond Hill Securitized Credit Fund, August 2024 to present; |
| Nancy M. Morris<br> Year of Birth: 1952 | Trustee | Since May 2019 | Retired, August 2018 to present; Chief Compliance Officer, Wellington Management Company LLP, April 2012 to July 2018 | 12 | The Arbitrage Funds, December 2018 to present; AltShares Trust, January 2020 to present |

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**<u>Officers</u>**<sup>4</sup>

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| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position**<br> **Held** | **Year First<br> Elected to Current<br> Officer Position of the<br> Trust<sup>1</sup>** | **Principal Occupation(s)**<br> **During Past Five Years** |
| Thomas E. Line<br> 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<br> Year of Birth: 1966 | Vice President<br> Secretary | Since November 2011<br> Since November 2014 | Director-Fund Administration & Sales Support, Diamond Hill Capital Management, Inc., June 2009 to present<br>|
| Alyssa A. Bentz<br> Year of Birth: 1981 | Chief Compliance Officer Anti-Money Laundering Officer | Since May 2024<br> Since May 2024 | Chief Compliance Officer of Diamond Hill Capital Management, Inc., May 2024 to present; Chief Compliance Officer, U.S. Bancorp Asset Management, Inc., July 2021 to March 2024; Compliance Manager, U.S. Bancorp Asset Management, Inc., December 2015 to July 2021 |
| Julie A. Roach<br> Year of Birth: 1971 | Treasurer | Since October 2017 | Director-Fund Administration, Diamond Hill Capital Management, Inc., September 2017 to present |

---

<sup>1</sup> Each Trustee is elected to serve in accordance with the Trust Agreement 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.

<sup>2</sup> The "Fund Complex" includes the Diamond Hill Funds and the Diamond Hill Securitized Credit Fund, a closed-end management investment company that is operated as an interval fund and managed by the Adviser.

<sup>3</sup> 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.

<sup>4</sup> All Officers, excluding Thomas E. Line, also serve as officers to the Diamond Hill Securitized Credit Fund.

**Fund Shares Owned by Trustees as of December 31, 2025**

**** 

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name of Trustee** | **Small-Mid Cap Fund** | **Large Cap Fund** | **Select Fund** | **Long- Short Fund** | **Short Duration Securitized Bond Fund** | **Securitized Total Return Fund** | **Core Bond Fund** | **Aggregate Dollar Range of Shares Owned in All Funds Within the Complex Overseen by Trustee<sup>1</sup>** |
| Tamara L. Fagely |  |  |  |  | Over $100,000 |  | Over $100,000 | Over $100,000 |
| Jody T. Foster | $10001- $50000 | Over $100,000 | $10001- $50000 | $50001- $100000 | Over $100,000 | $1 - $10000 | Over $100,000 | Over $100,000 |
| Anthony J. Ghoston |  | Over $100,000 | $10001- $50000 | $50001- $100000 | Over $100,000 |  | Over $100,000 | Over $100,000 |
| John T. Kelly-Jones |  |  | $10001- $50000 | $50001- $100000 |  |  |  | Over $100,000 |
| Nancy M. Morris | $10001- $50000 | Over $100,000 |  |  | Over $100,000 |  |  | Over $100,000 |

---

 

<sup>1</sup> Ownership disclosure is made using the following ranges: None; $1 - $10,000; $10,001 - $50,000; $50,001 - $100,000 and over $100,000.

<sup>2</sup> None of the Trustees owned Shares of the Small Cap Fund, Mid Cap Fund, International Fund or Core Plus Bond Fund.

The compensation paid to the Trustees for the fiscal year ended December 31, 2025 is set forth in the following table:

 

**COMPENSATION TABLE**

**** 

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Position** | **Aggregate**<br> **Compensation\*** | **Pension or**<br> **Retirement**<br> **Benefits Accrued**<br> **as Part of Fund**<br> **Expense** | **Estimated**<br> **Annual Benefits**<br> **Upon**<br> **Retirement** | **Total**<br> **Compensation<br> Paid to<br> Trustee\*\*** |
| &nbsp;&nbsp;&nbsp;Tamara L. Fagely, Chairperson, Trustee | $165000 |  |  | $165000 |
| &nbsp;&nbsp;&nbsp;Jody T. Foster, Trustee | 150000 |  |  | 150000 |
| &nbsp;&nbsp;&nbsp;Anthony J. Ghoston, Trustee | 130000 |  |  | 130000 |
| &nbsp;&nbsp;&nbsp;John T. Kelly-Jones, Trustee | 147000 |  |  | 147000 |
| &nbsp;&nbsp;&nbsp;Nancy M. Morris, Trustee | 130000 |  |  | 130000 |

---

\* The Trustees are compensated for their services by the Administrator as part of the Administration Agreement for the Funds, as part of the Administrative Services Agreement for the Diamond Hill Large Cap Concentrated ETF and as part of the Administrative and Transfer Agency Services Agreement for the Diamond Hill Securitized Credit Fund.

\*\* The Fund Complex consists of the Diamond Hill Funds and Diamond Hill Securitized Credit Fund.

The Board believes that Trustees should have a significant personal investment in the Diamond Hill Funds. Trustee compensation, except for that required to meet any tax liability resulting from the receipt of such compensation, must be invested in the Diamond Hill Funds, until a $250,000 minimum investment is met. Once the Trustee has $250,000 invested, a minimum of 30 percent of ongoing Trustee compensation must be invested in the Diamond Hill Funds and, along with the initial $250,000, must remain invested for the entire term of their trusteeship.

The Board has two standing committees: an Audit Committee and a Nominating and Governance Committee. All Trustees are members of the Audit Committee and the Nominating and Governance Committee.

The Audit Committee's function is to oversee the Trust's accounting and financial reporting policies and practices, its internal controls and, as appropriate, the internal controls of certain service providers; to oversee the quality and objectivity of the Trust's financial statements and the independent audit thereof; and to act as a liaison between the Trust's independent registered public accounting firm and the full Board. The Audit Committee held two regularly scheduled meetings during the fiscal year ended December 31, 2025. The Board has determined that Tamara L. Fagely and Jody T. Foster, each a member of the Audit Committee, are each an "audit committee financial expert" as defined by the SEC. Ms. Foster serves as the Chair of the Audit Committee.

The Nominating and Governance Committee's ("Committee") function is to nominate candidates for election to the Board, make nominations for membership on all committees and review committee assignments at least annually. The Committee also reviews as necessary the responsibilities of any committees of the Board, whether there is a continuing need for each committee, whether there is a need for additional committees of the Board, and whether committees should be combined or reorganized. The Committee makes recommendations for any such action to the full Board. The Committee also considers candidates for Trustees nominated by shareholders. Shareholders may recommend candidates for Board positions by forwarding their correspondence to the Secretary of the Trust at the Trust's address and the shareholder communication will be forwarded to the Committee Chair for evaluation. The Committee held two regularly scheduled meetings during the fiscal year ended December 31, 2025. Mr. Kelly-Jones serves as the Chair of the Committee.

As of January 31, 2026, the Trustees and Officers as a group owned less than 1% of all of the classes of all of the Funds.

The Trust and the Adviser have each adopted a Code of Ethics (together, the "Code of Ethics") under Rule 17j-1 under the Company Act. The personnel subject to the Code of Ethics are prohibited from investing in individual equity securities and certain fixed income securities that are eligible to be purchased by the Diamond Hill Funds. The Code of Ethics is available at diamond-hill.com/about/policies-and-disclosures. You may also obtain a copy of the Code of Ethics from the SEC EDGAR web site or by calling the Diamond Hill Funds at 888-226-5595.

**Proxy Voting Policies and Procedures**

*General Policy*

 

The Trust has delegated proxy voting responsibilities of the Funds to the Adviser, subject to the general oversight of the Board. The Adviser has adopted written proxy voting policies and procedures ("Proxy Policy") as required by Rule 206(4)-6 under the Investment Advisers Act of 1940, as amended, consistent with its fiduciary obligations and the Proxy Policy has been approved by the Trustees as the policies and procedures that the Adviser will use when voting proxies on behalf of each Fund. The Proxy Policy is designed and implemented in a manner reasonably expected to ensure that voting and consent rights are exercised prudently and solely in the best economic interests of a Fund and its shareholders considering all relevant factors and without undue influence from individuals or groups who may have an economic interest in the outcome of a proxy vote. Any conflict between the interests of a Fund's shareholders, on one hand, and those of the Adviser or principal underwriter on the other will be reported to the Board and the Board will provide direction to the Adviser on how to vote the proxy.

The Proxy Policy sets forth the Adviser's voting guidelines. The guidelines contain information about the key objectives in voting proxies, various client and Adviser decision methods, conflicts of interest, general voting principles, and detailed explanations on how the Adviser will typically vote on certain matters that are typically up for shareholder vote. Each vote is ultimately determined on a case-by-case basis, taking into consideration all relevant facts and circumstances at the time of the vote.

*How to Obtain More Information* 

 

Investors may obtain a copy of the Proxy Policy by writing to the Trust at 325 John H. McConnell Boulevard, Suite 200, Columbus, OH 43215 or by calling the Trust at 888-226-5595. Information about how the Funds voted proxies relating to portfolio securities for the 12 month period ended June 30<sup>th</sup> is available without charge, upon request, by calling the Trust at 888-226-5595, via a link on the Funds' website, diamond-hill.com/documents, and on the SEC's website at sec.gov.

**OTHER INFORMATION CONCERNING THE BOARD OF TRUSTEES** 

**Leadership Structure and Board of Trustees** 

The primary responsibility of the Board is to represent the interests of the shareholders of the Trust and to provide oversight of the management of the Trust. All of the Trustees are independent of and not affiliated with the Adviser or its affiliates. The same Trustees serve all twelve Diamond Hill Funds and have delegated day-to-day operation to various service providers whose activities they oversee. The Trustees have also engaged legal counsel (who is also legal counsel to the Trust) that is independent of the Adviser or its affiliates to advise them on matters relating to their responsibilities in connection with the Trust. The Trustees meet separately in an executive session on a quarterly basis and meet separately in executive session with the Trust's Chief Compliance Officer ("CCO") on a quarterly basis. On an annual basis, the Board conducts a self-assessment and evaluates its structure. Consistent with the Adviser's governing principles, each of the Trustees is a significant owner of the Diamond Hill Funds with other shareholders (see table set forth above), which is designed to align their interests with those of shareholders. The Board has determined that the leadership and committee structure is appropriate for the Trust and allows the Board to effectively and efficiently evaluate issues that impact the Trust as a whole as well as issues that are unique to each Diamond Hill Fund.

**Board Oversight of Risk** 

The Diamond Hill Funds are subject to a number of risks, including investment, compliance, operational and financial risks, among others. Risk oversight forms part of the Board's general oversight of the Diamond Hill Funds and is addressed as part of various Board and committee activities. Day-to-day risk management with respect to the Diamond Hill Funds resides with the Adviser or other service providers, subject to supervision by the Adviser. The Board oversees efforts by management and service providers to manage the risk to which the Diamond Hill Funds may be exposed. For example, the Board meets with Portfolio Managers and receives regular reports regarding investment risk. The Board meets with the CCO and receives regular reports regarding compliance and regulatory risks. In addition, the Board meets with the CCO in executive session on a quarterly basis. The Audit Committee meets with the Trust's Treasurer and receives regular reports regarding fund operations and risks related to the valuation, liquidity, and overall financial reporting of the Diamond Hill Funds. From its review of these reports and discussions with management, the Board learns about the material risks to which the Diamond Hill Funds are exposed, enabling a dialogue about how management and service providers manage and mitigate those risks.

Not all risks that may affect a Fund can be identified nor can controls be developed to eliminate or mitigate their occurrence or effects. It may not be practical or cost effective to eliminate or mitigate certain risks, the processes and controls employed to address certain risks may be limited in their effectiveness, and some risks are simply beyond the reasonable control of the Funds or the Adviser, its affiliates, or other service providers. Moreover, it is necessary to bear certain risks (such as investment-related risks) to achieve a Fund's goals. As a result of the foregoing and other factors, a Fund's ability to manage risk is subject to substantial limitations. The Trustees believe that their current oversight approach is an appropriate way to manage risks facing the Funds, whether investment, compliance, financial, or otherwise. The Trustees may, at any time in their discretion, change the manner in which they conduct risk oversight of the Funds.

**Trustee Attributes** 

The Board believes each of the Trustees has demonstrated leadership abilities and possesses experience, qualifications, and skills valuable to the Diamond Hill Funds. Each of the Trustees has substantial business and professional backgrounds that indicate they have the ability to critically review, evaluate and access information provided to them.

Below is additional information concerning each particular Trustee and his/her attributes. The information provided below, and in the chart above, is not all-inclusive. Many Trustee attributes involve intangible elements, such as intelligence, work ethic, the ability to work together and the ability to communicate effectively, exercise judgment, ask incisive questions, manage people and problems or develop solutions.

**Tamara L. Fagely** was a business executive for a large mutual fund complex for over 20 years leading back office operations that included administration, fund accounting, financial reporting, transfer agent, and technology. Her experience included roles as Treasurer, Chief Financial Officer, and Chief Operations Officer. In addition, Ms. Fagely has management experience in broker/dealer operations and as an audit manager conducting audits of financial service organizations and mutual funds. Ms. Fagely currently serves on the boards of other registered investment companies. Ms. Fagely brings a detailed knowledge of the mutual fund industry and financial expertise to the Board.

**Jody T. Foster** is the founder and has been the Chief Executive Officer of Symphony Consulting since 2010. She has overseen the development and launch of a variety of investment product offerings. Her experience includes roles as Research Analyst, International Research Manager, Director and Chief Operating Officer. In addition, Ms. Foster has management experience in finance, risk management and accounting. Ms. Foster currently serves on the boards of other registered investment companies. Ms. Foster brings a detailed knowledge of investment management, mutual fund industry and financial expertise to the Board.

**Anthony J. Ghoston** has more than 30 years' experience in the investment management industry. His experience includes roles as CEO, President, Director, Chief Compliance Officer and Chief Operating Officer with a registered investment adviser and a fund administration service provider. In addition, Mr. Ghoston has management experience in investment operations, risk management, and compliance. Mr. Ghoston brings knowledge and experience of mutual fund operations, controls and oversight to the Board.

**John T. Kelly-Jones** has more than 20 years' experience in the investment management industry. Mr. Kelly-Jones was a founding partner, Chief Operations Officer and Chief Compliance Officer of Independent Franchise Partners, LLP ("IFP"), a registered investment adviser, overseeing all operational functions and establishing four funds of different structures. Mr. Kelly-Jones also previously served on the board of one of IFP's Irish variable capital funds and of one U.S. private investment fund. In addition, he served in various roles and capacities at Morgan Stanley Asset Management, London from September 2002 through June 2009. His experience included working with mutual fund firms and investment advisers. Mr. Kelly-Jones exhibits excellent communication skills, as well as an ability to work effectively with others. Finally, Mr. Kelly-Jones brings a diversity of viewpoint, background and experience to the Board.

**Nancy M. Morris** has more than 30 years' experience and leadership within the investment management industry, most recently as Chief Compliance Officer of a large asset manager. During the course of her career, Ms. Morris served as Secretary of the SEC and as Deputy Chief Counsel in the Division of Investment Management. Her experience includes addressing investment company regulatory and compliance matters affecting mutual fund firms and investment advisers. Ms. Morris currently serves on the boards of other registered investment companies. Ms. Morris exhibits excellent communication skills, possesses the ability to work collaboratively, and provides diversity of viewpoint and background.

The diversity statistics of the Trustees are below:

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| | | | |
|:---|:---|:---|:---|
| **Board Diversity Matrix** | **Board Diversity Matrix** | **Board Diversity Matrix** | **Board Diversity Matrix** |
| | **Female** | **Male** | **Non-Binary** |
| **Part I: Gender Identity** | | | |
| Trustees | 3 | 2 |  |
| **Part II: Demographic Background** |  |  |  |
| African American or Black |  | 1 |  |
| Alaskan Native or Native American |  |  |  |
| Asian |  |  |  |
| Hispanic or Latinx |  |  |  |
| Native Hawaiian or Pacific Islander |  |  |  |
| White | 3 | 1 |  |
| Two or More Races or Ethnicities |  |  |  |
| LGBTQ+ |  |  |  |

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**PORTFOLIO TRANSACTIONS AND BROKERAGE**

Subject to policies established by the Board, the Adviser is responsible for each Fund's portfolio decisions and the placing of each Fund's portfolio transactions. In placing portfolio transactions, the Adviser seeks the best qualitative execution for a Fund, taking into account such factors as price (including the applicable brokerage commission or dealer spread), the execution capability, financial responsibility and responsiveness of the broker or dealer, and the brokerage and research services provided by the broker or dealer. The Adviser generally seeks favorable prices and commission rates that are reasonable in relation to the benefits received. All shareholders bear the costs when executing portfolio transactions in a Fund.

The Adviser is specifically authorized to select brokers or dealers who also provide brokerage and research services to each Fund and/or the other accounts over which the Adviser exercises investment discretion and to pay such brokers or dealers a commission in excess of the commission another broker or dealer would charge if the Adviser determines in good faith that the commission is reasonable in relation to the value of the brokerage and research services provided. The determination may be viewed in terms of a particular transaction or the Adviser's overall responsibilities with respect to the Trust and to other accounts over which it exercises investment discretion.

Research services include supplemental research, securities and economic analyses, statistical services and information with respect to the availability of securities or purchasers or sellers of securities, and analyses of reports concerning performance of accounts. The research services and other information furnished by brokers through whom a Fund effects securities transactions may also be used by the Adviser in servicing all of its accounts. Similarly, research and information provided by brokers or dealers serving other clients may be useful to the Adviser in connection with its services to the Funds. It is the opinion of the Board and the Adviser that the review and study of the research and other information will not reduce the overall cost to the Adviser of performing its duties to the Funds under the Investment Management Agreement.

While the Funds do not deem it practicable and in their best interests to solicit competitive bids for commission rates on each transaction, consideration is regularly given to posted commission rates as well as other information concerning the level of commissions charged on comparable transactions by qualified brokers. A Fund has no obligation to deal with any broker or dealer in the execution of its transactions.

OTC transactions will be placed either directly with principal market makers or with broker-dealers, if the same or a better price, including commissions and executions, is available. Fixed income securities are normally purchased directly from the issuer, an underwriter or a market maker. Purchases include a concession paid by the issuer to the underwriter and the purchase price paid to a market maker may include the spread between the bid and asked prices.

The Adviser has entered into Client Commission Agreements with broker/dealers that are involved from time to time in executing, clearing, or settling securities transactions on behalf of the Funds ("CCA Brokers") that provide for the CCA Brokers to pay a portion of the commissions paid by a Fund for securities transactions ("CCA Commissions") to providers of research services.

Because these research service providers may play no role in executing client securities transactions, any research prepared by that research service provider may constitute third party research. Adviser may use brokerage commissions, including CCA Commissions, from a Fund's portfolio transactions to acquire research, subject to the procedures and limitations provided in this section.

From time to time, the Adviser prepares a list of providers of research services that have been deemed by the Adviser to provide valuable research ("Research Firms") as determined by Adviser's investment staff. CCA Brokers are eligible to be included in the list of Research Firms. All trades with Research Firms will be effected in accordance with Adviser's obligation to seek best execution for its client accounts. The Adviser uses a vote by its investment staff as a guide for allocating CCA Commissions. Compensation for research may also be made pursuant to commissions paid on trades executed by a Research Firm who is registered as a broker/dealer ("Research Broker"). Under normal circumstances, CCA Brokers are compensated for research solely through trade commissions. To the extent that payments for research to a Research Broker other than a CCA Broker are made pursuant to trade commissions, the Adviser will reduce the amount of CCA Commissions to be paid to that Research Broker for its research. However, the Adviser will reduce the amount of CCA Commissions to be paid to that Research Broker by less than the full amount of trade commissions paid to that Research Broker. Neither the Adviser nor the Funds have an obligation to any Research Firm if the amount of trade commissions and CCA Commissions paid to the Research Firm is less than the applicable non-binding target. The Adviser reserves the right to pay cash to a Research Firm from its own resources in an amount the Adviser determines in its discretion.

The products and services acquired by the Adviser in connection with such arrangements are intended to comply with Section 28(e) of the Securities Act of 1934, as amended, and the SEC's related interpretive guidance. The Adviser will not cause a Fund or its clients to use trade commissions or CCA Commissions for purposes other than for eligible research and brokerage services or products.

When a Fund and another of the Adviser's clients seek to purchase or sell the same security at or about the same time, the Adviser may execute the transaction on a combined ("blocked") basis, through one or more broker-dealers, provided that the block is done in a fair and equitable manner and is determined to be timely and in the best interest of each client. Blocked transactions can produce better execution for a Fund and other accounts managed by the Adviser because of the increased volume of each such transaction. If the entire blocked order is not filled, a Fund may not be able to acquire as large a position in such security as it desires, or it may have to pay a higher price for the security. Similarly, a Fund may not be able to obtain as large an execution of an order to sell, or as high a price for any particular portfolio security, if the Adviser is selling the same portfolio security for its other client accounts at the same time. In the event that the entire blocked order is not filled, the shares are generally allocated on a pro-rata basis to the appropriate client accounts. All blocked orders are allocated to the participating accounts at average cost.

In certain circumstances, such as a buy in for failure to deliver, the Adviser is not able to select the broker/dealer who will transact to cover the failure. For example, if a Fund sells a security short and is unable to deliver the securities sold short the broker/dealer through whom the Fund sold short must deliver securities purchased for cash (*i.e.*, effect a buy-in, unless it knows that the Fund either is in the process of forwarding the securities to the broker/dealer or will do so as soon as possible without undue inconvenience or expense). Similarly, there can also be a failure to deliver in a long transaction and a resulting buy-in by the broker/dealer through whom the securities were sold. If the broker/dealer effects a buy-in, the Adviser will be unable to control the trading techniques, methods, venues or any other aspect of the trade used by the broker/dealer.

The Adviser may not give consideration to sales of Shares of the Funds as a factor in selecting brokers and dealers to execute portfolio transactions. However, the Adviser may place portfolio transactions with brokers or dealers that promote or sell Fund shares so long as such placements are made pursuant to policies approved by the Board that are designed to ensure that the selection is based on the quality of the broker's execution and not on its sales efforts.

The Funds paid the following brokerage commissions for the following fiscal periods:

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| | | | |
|:---|:---|:---|:---|
|  | **Fiscal Year Ended<br> December 31, 2025** | **Fiscal Year Ended<br> December 31, 2024** | **Fiscal Year Ended<br> December 31, 2023** |
| Small Cap Fund | $206396 | $187079 | $223935 |
| Small-Mid Cap Fund | 397973 | 401860 | 404863 |
| Mid Cap Fund | 32592 | 21672 | 42892 |
| Large Cap Fund | 1852574 | 1671864 | 1243902 |
| Select Fund | 162190 | 211691 | 214325 |
| Long-Short Fund | 648326 | 529169 | 498116 |
| International Fund | 223265 | 126585 | 88305 |

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During the last fiscal year, the Adviser, through agreements or understandings with brokers, or otherwise through an internal allocation procedure, directed the brokerage transactions of certain funds to brokers because of research services provided. The following table indicates the funds that entered into these transactions, the amount of these transactions and related commission paid during the period.

 

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| | | |
|:---|:---|:---|
| **Fund** | **Amount of Transactions to<br> Brokers Providing Research** | **Related Commissions** |
| Small Cap Fund | $207755026 | $159530 |
| Small-Mid Cap Fund | 664408048 | 306351 |
| Mid Cap Fund | 111564120 | 28825 |
| Large Cap Fund | 6667641757 | 1685274 |
| Select Fund | 447468319 | 133501 |
| Long-Short Fund | 1912584881 | 530185 |
| International Fund | 147657793 | 216076 |
| **Total** | $**10159079944** | $**3059742** |

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**Securities of Regular Broker-Dealers** 

The table below presents information regarding the securities of the Funds' regular broker-dealers (or the parent of the regular broker-dealer) that were held by the Funds as of December 31, 2025.

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| | | |
|:---|:---|:---|
| **Fund** | **Regular Broker Dealer** | **Holdings ($000s)** |
| Small Cap Fund |  |  |
| Small Mid-Cap Fund |  |  |
| Mid Cap Fund |  |  |
| Large Cap Fund | Bank of America Corp. | 154736 |
|  | Equitable Holdings, Inc. | 75932 |
| Select Fund |  |  |
| Long-Short Fund | Bank of America Corp. | 30076 |
|  | Citigroup, Inc. | 88230 |
|  | Morgan Stanley & Co. | 17827 |
| International Fund |  |  |
| Short Duration Securitized Bond Fund | Bank of America Corp. | 10452 |
|  | Citigroup, Inc. | 1765 |
|  | Goldman Sachs & Co. | 93215 |
|  | J.P. Morgan Securities | 46123 |
|  | Morgan Stanley & Co. | 7757 |
| Securitized Total Return Fund | J.P. Morgan Securities | 137 |
| Core Bond Fund | Bank of America Corp. | 19013 |
|  | Citigroup, Inc. | 17165 |
|  | Goldman Sachs & Co. | 15719 |
|  | J.P. Morgan Securities | 23606 |
|  | Morgan Stanley & Co. | 19471 |
| Core Plus Bond Fund | Bank of America Corp. | 596 |
|  | Citigroup, Inc. | 492 |
|  | Goldman Sachs & Co. | 536 |
|  | J.P. Morgan Securities | 1053 |
|  | Morgan Stanley & Co. | 554 |

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**Portfolio Holdings Disclosure**

The Funds disclose portfolio holdings as described in the Prospectus. After such information is released to the public as described in the Prospectus, it may be included in marketing materials, advertisements and presentations. In addition to the policies described in the Prospectus, the Funds may release or authorize the release of portfolio holdings that are not publicly available for legitimate business purposes, provided that such disclosure is approved by the President and Treasurer of the Trust. Each Fund also may disclose non-public portfolio holdings to its affiliates, third-party service providers, or counterparties in connection with services being provided or transactions being entered into, such as, among other things, custodial, brokerage, research, analytics, securities lending, alternative liquidity source programs, accounting and legal. In addition, the Funds may disclose non-public portfolio holdings to any shareholder receiving a redemption in kind, subject to the requirements of the Funds' In-Kind Redemption Policy. The Funds currently have ongoing arrangements to disclose portfolio holdings information to third-party service providers of the Funds or the Adviser and to rating or reporting agencies, or data or portfolio analysis firms, which include:

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| | |
|:---|:---|
| **Firm Name** | **Firm Name** |
| ACA Group, the distributor | FIS Global |
| Cohen & Company, Ltd., the independent registered public accounting firm | FundGuard, Inc. |
| Financial printers | Global Trading Analytics |
| State Street Bank and Trust Company ("State Street"), the custodian | ICE Data Services |
| Thompson Hine LLP, legal counsel | Institutional Shareholder Services |
| Ultimus Fund Solutions, LLC ("Ultimus"), the sub-fund accountant | Microsoft Corporation |
| Bloomberg L.P. | Snowflake, Inc. |
| Broadridge | SS&C Software |
| Confluence Technologies, Inc. | Synthesis Technology LLC |
| Factset Research Systems, Inc. | SySys Corporation |
| FilePoint | The Yield Book, Inc. |

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Disclosure of the Funds' daily portfolio holdings as an exception to the Funds' normal business practice may be made, provided that the disclosure is deemed to be in the best interests of shareholders and the party receiving the portfolio holdings signs a confidentiality agreement or the policies of the recipient are determined to be adequate to protect the integrity and confidentiality of the information. In no event shall portfolio holdings information be disclosed for compensation. In order to avoid conflicts of interest between the Funds' shareholders and the Adviser, any exceptions must be approved in writing by the Funds' President and Treasurer and any such exceptions granted will be presented to the Board on a quarterly basis for their review.

In addition, separate account, model delivery programs and unregistered products clients ("Other Accounts") of the Adviser have same day access to their portfolio holdings, and their advisors have access to representative portfolio holdings and may grant same day access to these portfolio holdings to their clients, their investors, and/or to one or more affiliated and unaffiliated service providers. In addition, information about non-public portfolio holdings information attributable to Other Accounts managed or advised by the Adviser may be available to one or more affiliated or unaffiliated service providers to those accounts. Some of the Other Accounts have substantially similar, or in some cases nearly identical, portfolio holdings to certain Funds. These Other Accounts are not subject to the portfolio holdings disclosure policies of the Funds to which they are similar and may disclose their similar or nearly identical portfolio holdings information in different forms and at different times than the Funds.

Portfolio holdings of each Fund will be disclosed on a quarterly basis on forms required to be filed with the SEC as follows: (i) portfolio holdings as of the end of each fiscal year ending December 31 will be filed as part of the annual report filed on Form N-CSR; (ii) portfolio holdings as of the end of each month will be filed on Form N-PORT; and (iii) portfolio holdings as of the end of the six-month period ending June 30 will be filed as part of the semi-annual report filed on Form N-CSR. The Trust's Form N-CSR and Form N-PORT (at quarter-end) will be available on the SEC's website at www.sec.gov. No later than 60 days after the end of each month, each Fund will make available a complete uncertified schedule of its portfolio holdings as of the last day of that month. In addition to this monthly disclosure, each Fund may also make publicly available its portfolio holdings at other dates as determined from time to time.

**DISTRIBUTION PLAN**

The Trust has adopted a plan pursuant to Rule 12b-1 under the Company Act (the "Plan"), applicable to its Investor Shares, which permits its Funds to pay for certain distribution and promotion activities related to marketing their Shares. Pursuant to the Plan, each Fund will pay its principal underwriter a fee for the principal underwriter's services in connection with the sales and promotion of the Fund, including its expenses in connection therewith, at an annual rate of 0.25% of the average daily net assets of the Investor Shares. Payments received by the principal underwriter pursuant to the Plan may be greater or less than distribution expenses incurred by the principal underwriter with respect to the applicable class and are in addition to fees paid by each Fund pursuant to the Investment Management Agreement and the Administration Agreement. The principal underwriter may in turn pay others for distribution as described below.

Under the Plan, the Trust may engage in any activities related to the distribution of Fund Shares, including without limitation the following: (i) payments, including incentive compensation, to securities dealers or other financial intermediaries, financial institutions, investment advisors and others that are engaged in the sale of Fund Shares, or that may be advising shareholders of the Trust regarding the purchase, sale or retention of Fund Shares, or that hold Fund Shares for shareholders in omnibus accounts or as shareholders of record or provide shareholder support or administrative services to a Fund and its shareholders; (ii) payments made to securities dealers or other financial intermediaries, financial institutions, investment advisors and others that render shareholder support services not otherwise provided by the Trust's transfer agent, including, but not limited to, expenses related to processing new account applications, transmitting customer transaction information to the Fund's transfer agent, answering routine shareholder inquiries, providing office space, equipment and telephone facilities, and providing such other shareholder services as the Trust may reasonably request; (iii) expenses of maintaining personnel (including personnel of organizations with which the Trust has entered into agreements related to this Plan) who engage in or support distribution of Fund Shares; (iv) costs of preparing, printing and distributing prospectuses and statements of additional information and reports of the Fund for recipients other than existing shareholders of the Fund; (v) costs of formulating and implementing marketing and promotional activities, including, but not limited to, sales seminars, direct mail promotions and television, radio, newspaper, magazine and other mass media advertising; (vi) costs of preparing, printing and distributing sales literature; (vii) costs of obtaining such information, analyses and reports with respect to marketing and promotional activities as the Trust may, from time to time, deem advisable; and (viii) costs of implementing and operating the Plan. The Funds do not participate in any joint distribution activities with other mutual funds outside of the Trust other than the Diamond Hill Securitized Credit Fund. Fees paid by a Fund under the Plan may not be directly or indirectly used to finance the distribution of the shares of the Diamond Hill Securitized Credit Fund.

The Trustees expect that the Plan will encourage distribution of the Funds' Investor shares. It is also anticipated that an increase in the size of a Fund will facilitate more efficient portfolio management and assist a Fund in seeking to achieve its investment objective.

The Plan has been approved by the Board, including a majority of the Trustees who are not "interested persons" of the Funds and who have no direct or indirect financial interest in the Plan or any related agreement, by a vote cast in person. Continuation of the Plan and the related agreements must be approved by the Trustees annually, in the same manner, and a Plan or any related agreement may be terminated at any time without penalty by a majority of such independent Trustees or by a majority of the outstanding Shares of the applicable class. Any amendment increasing the maximum percentage payable under a Plan or other material change must be approved by a majority of the outstanding Shares of the applicable class, and all other material amendments to a Plan or any related agreement must be approved by a majority of the independent Trustees. The Adviser and its employees may benefit indirectly from payments received under certain of the Plan.

The tables below state the amounts paid under the Trust's distribution plan for Investor Shares for the identified goods and services during the fiscal year ended December 31, 2025.

**DISTRIBUTION PLAN EXPENSES**

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| | | | |
|:---|:---|:---|:---|
|  | **Trails paid to<br> Non-affiliated<br> broker dealers** | **Reimbursement<br> to DHCM for<br> distribution<br> related<br> expenses** | **Total** |
| **Investor** |  |  |  |
| Small Cap Fund | $73812 | $51203 | $125015 |
| Small-Mid Cap Fund | 55458 | 29272 | 84730 |
| Mid Cap Fund | 4019 | 5085 | 9104 |
| Large Cap Fund | 326196 | 344715 | 670911 |
| Select Fund | 44126 | 47323 | 91449 |
| Long-Short Fund | 193619 | 92608 | 286227 |
| International Fund | 829 | 1874 | 2703 |
| Short Duration Securitized Bond Fund | 124844 | 82211 | 207055 |
| Securitized Total Return Fund |  | 20 | 20 |
| Core Bond Fund | 5647 | 7067 | 12714 |
| Core Plus Bond Fund |  | 59 | 59 |

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**Financial Intermediaries**

The Funds have authorized certain financial intermediaries to accept purchase and redemption orders on their behalf. A Fund will be deemed to have received a purchase or redemption order when a financial intermediary or its designee accepts the order. These orders will be priced at the NAV next calculated after the order is accepted.

The Adviser does not consider a financial intermediary's sale of shares of the Funds when selecting brokers or dealers to effect portfolio transactions for the Funds.

**Payment of Additional Cash Compensation** 

On occasion, the Adviser may make payments out of its resources and legitimate profits, which may include profits the Adviser derives from investment advisory fees paid by the Funds, to financial intermediaries as incentives to market the Funds, to cooperate with the Adviser's promotional efforts, or in recognition of the provision of administrative services and marketing and/or processing support. These payments are often referred to as "additional cash compensation" or "revenue sharing" and are in addition to the sales charges and Rule 12b-1 fees. The payments are made pursuant to agreements between financial intermediaries and the Adviser and do not affect the price investors pay to invest in Shares of a Fund, the amount a Fund will receive as proceeds from such sales, or the amount of Rule 12b-1 fees and other expenses paid by a Fund.

Additional cash compensation payments may be used to pay financial intermediaries for: (i) transaction support, including any one-time charges for establishing access to Fund Shares on particular trading systems (known as "platform access fees"); (ii) program support, such as expenses related to including the Funds in retirement programs, fee-based advisory or wrap fee programs, fund supermarkets, bank or trust company products, and/or insurance programs (*e.g.*, individual or group annuity contracts); (iii) placement by a financial intermediary on its offered, preferred, or recommended fund list; (iv) marketing support, such as providing representatives of the Adviser access to sales meetings, sales representatives and management representatives; (v) firm support, such as business planning assistance, advertising, and assistance with educating sales personnel about the Funds and shareholder financial planning needs; and (vi) providing other distribution-related or asset retention services. Additional cash compensation payments generally are structured as basis point payments on assets, gross or net sales or, in the case of platform access fees, fixed dollar amounts.

For the year ended December 31, 2025, the following broker-dealers offering Shares of the Funds, and/or their respective affiliates, received or will receive in the future additional cash compensation or similar distribution related payments from the Adviser for providing marketing and program support, administrative services, and/or other services as described above:

**Ameriprise Financial Services, Inc.** 

**Charles Schwab & Co., Inc.**

**Edward D. Jones & Co., L.P.**

**Fidelity Investments Institutional Operations Company, Inc.** 

**John Hancock Life Insurance Company of New York** 

**John Hancock Life Insurance Company (U.S.A.)** 

**LPL Financial LLC**

**Morgan Stanley Smith Barney LLC** 

**National Financial Services LLC**

**Nationwide Financial Services, Inc.** 

**Pershing LLC** 

**PNC Investments LLC**

**Principal Life Insurance Company**

**Steward Partners Global Advisory**

**Transamerica**

**UBS Financial Services, Inc.** 

**Wells Fargo Advisors, LLC** 

Any additions, modifications, or deletions to this list that may have occurred since December 31, 2025 are not reflected. In addition to member firms of the Financial Industry Regulatory Authority, the Adviser also reserves the ability to make payments, as described above, to other financial intermediaries that sell or provide services to the Funds and shareholders, such as banks, insurance companies, and plan administrators. These firms are not included in this list and may include affiliates of the Adviser. You should ask your financial intermediary whether it receives additional cash compensation payments, as described above, from the Adviser.

The Adviser may also pay non-cash compensation to financial intermediaries and their representatives in the form of (i) occasional gifts; (ii) occasional meals, tickets or other entertainment; and/or (iii) sponsorship support of regional or national conferences or seminars. Such non-cash compensation will be made subject to applicable law.

**DETERMINATION OF SHARE PRICE**

The price of the Shares of a Fund is based on a Fund's NAV per Share next determined after the order is received. The NAV is calculated at the close of trading (normally 4:00 p.m., Eastern Time ("ET")) on each day the NYSE is open for business ("open business day"). Should the NYSE experience an unexpected market closure or restriction on trading during or on what is expected to be an open business day, a Fund will make a determination whether to calculate the NAV at the times as described above (and value the securities as described below in this SAI and in the Prospectus) or to suspend the determination of the NAV based on available information at the time of or during the unexpected closure or restriction on trading. Purchase requests received by a Fund or an authorized agent of a Fund after the NYSE closes, or on a day on which the NYSE is not open for trading, will be effective on the next open business day thereafter on which the NYSE is open for trading, and the offering price will be based on the Fund's NAV at the close of trading on that day.

A separate NAV is calculated for each Share class of a Fund. The NAV for a class is calculated by dividing the value of the Fund's total assets (including interest and dividends accrued but not yet received), allocable to that class minus liabilities (including accrued expenses) allocable to that class, by the total number of that class's Shares outstanding.

**U.S. Equity Securities**

U.S. equity securities (including options, rights, warrants, futures, and options on futures) traded in the OTC market or on a primary exchange shall be valued at the closing price as determined by the primary exchange, typically at 4:00 p.m. ET. If no sale occurred on the valuation date, the securities will be valued at the latest bid quotations for a long position or at the last quoted ask price for a short position as of the closing of the primary exchange, typically at 4:00 p.m. ET. Securities for which quotations are either: (i) not readily available, or (ii) determined by the Adviser's Valuation & Liquidity Committee to not accurately reflect their value are valued at their fair value using procedures approved by the Board. Significant bid-ask spreads, or infrequent trading may indicate a lack of readily available market quotations. Securities traded on more than one exchange will first be valued at the last sale price on the principal exchange, and then the secondary exchange. The NASDAQ National Market System is considered an exchange. Mutual fund investments will be valued at the most recently calculated (current day) NAV.

**Non-U.S. and U.S. Fixed Income Securities**

Fixed income securities shall be valued at an evaluated price, generally as of 4:00 p.m. ET, provided by an independent pricing service approved by the Board. To value debt securities, pricing services may use various pricing techniques which take into account appropriate factors such as trading activity, readily available market quotations (including broker quotes), yield, quality, coupon rate, maturity, type of issue, trading characteristics, call features, credit ratings and other data.

These securities are generally considered to be fair valued; however, because the prices are provided by an independent approved pricing service, the fair value procedures approved by the Board need not be applied. Securities with less than 61 days to maturity may be valued at amortized cost. Amortized cost shall not be used if the use of amortized cost would be inappropriate due to credit or other impairments of the issuer.

Securities for which quotations are either (1) not readily available, (2) not provided by an approved pricing service or broker, or (3) determined by the Adviser's Valuation & Liquidity Committee to not accurately reflect their value, are valued at their fair value using procedures approved by the Board.

**Non-U.S. Equity Securities**

To the fullest extent possible, equity securities that are traded on a non-U.S. securities exchange shall be valued at the last sale price on the exchange on which they are primarily traded on the day of valuation. If no sale occurred on the valuation date, the securities will be valued at the latest bid quotations for a long position or at the last quoted ask price for a short position as of the closing of the primary exchange. Securities for which quotations are either (1) not readily available or (2) determined by the Adviser's Valuation & Liquidity Committee to not accurately reflect their value are valued at their fair value using procedures approved by the Board. Non-U.S. securities, currencies and other assets and liabilities denominated in non-U.S. currencies are translated into U.S. dollars at the exchange rate of such currencies against the U.S. Dollar, as of valuation time, as provided by an independent pricing service approved by the Board.

Generally, trading of non-U.S. equity securities on most foreign markets (*i.e.*, non-Western hemisphere) is completed before the close of trading in U.S. markets. The values of all non-U.S. equity securities typically are adjusted by applying a fair value factor developed by an independent pricing service in order to reflect the price impacts of events occurring after such non-U.S. exchanges close and the time the Funds' NAVs are calculated.

**TAXES** 

The following discussion of certain U.S. federal income tax consequences is general in nature and should not be regarded as an exhaustive presentation of all possible tax ramifications. Each shareholder should consult a qualified tax advisor regarding the tax consequences of an investment in a Fund. The tax considerations relevant to a specific shareholder depend upon the shareholder's specific circumstances, and the following general summary does not attempt to discuss all potential tax considerations that could be relevant to a prospective shareholder with respect to the Trust or its investments. This general summary is based on the Code, the U.S. federal income tax regulations promulgated thereunder, and administrative and judicial interpretations thereof as of the date hereof, all of which are subject to change (potentially on a retroactive basis).

Each Fund intends to qualify as a regulated investment company under Subchapter M of the Code, which requires compliance with certain requirements concerning the sources of its income, diversification of its assets, and the amount and timing of its distributions to shareholders. Such qualification does not involve supervision of management or investment practices or policies by any government agency or bureau. By so qualifying, each Fund should not be subject to federal income or excise tax on its net investment income or net capital gain, to the extent such amounts are distributed to shareholders in accordance with the applicable timing requirements.

Each Fund intends to distribute substantially all of its net investment income (including any excess of net short-term capital gains over net long-term capital losses) and net capital gain (that is, any excess of net long-term capital gains over net short-term capital losses) in accordance with the timing requirements imposed by the Code and therefore should not be required to pay any federal income or excise taxes. Net capital gain for a fiscal year is computed by taking into account any capital loss carry forward of the Fund.

To be treated as a regulated investment company under Subchapter M of the Code, each Fund must also (a) derive at least 90% of its gross income from dividends, interest, payments with respect to securities loans, net income from certain publicly traded partnerships and gains from the sale or other disposition of securities or non-U.S. currencies, or other income (including, but not limited to, gains from options, futures or forward contracts) derived with respect to the business of investing in such securities or currencies, and (b) diversify its holding so that, at the end of each fiscal quarter, (i) at least 50% of the market value of the Fund's assets is represented by cash, U.S. government securities and securities of other regulated investment companies, and other securities (for purposes of this calculation, generally limited in respect of any one issuer, to an amount not greater than 5% of the market value of the Fund's assets and 10% of the outstanding voting securities of such issuer) and (ii) not more than 25% of the value of its assets is invested in the securities (other than U.S. government securities or the securities of other regulated investment companies) of any one issuer, two or more issuers which the Fund controls and which are determined to be engaged in the same or similar trades or businesses, or the securities of certain publicly traded partnerships.

If a Fund fails to qualify as a regulated investment company under Subchapter M in any fiscal year, it may be treated as a corporation for federal income tax purposes. As such, a Fund would be required to pay income taxes on its net investment income and net realized capital gains, if any, at the rates generally applicable to corporations. Shareholders of a Fund generally would not be liable for income tax on the Fund's net investment income or net realized capital gains in their individual capacities. However, distributions to shareholders, whether from the Fund's net investment income or net realized capital gains, would be treated as taxable dividends to the extent of current or accumulated earnings and profits of the Fund.

As a regulated investment company, the Trust is subject to a 4% nondeductible excise tax on certain undistributed amounts of ordinary income and capital gain under a prescribed formula contained in Section 4982 of the Code. The formula requires payment to shareholders during a calendar year of distributions representing at least 98% of a Fund's ordinary income for the calendar year and at least 98.2% of its capital gain net income (*i.e.*, the excess of its capital gains over capital losses) realized during the one-year period ending October 31 during such year plus 100% of any income that was neither distributed nor taxed to the Fund during the preceding calendar year. While each Fund intends to distribute its ordinary income and capital gains in a manner so as to avoid imposition of the federal excise and income taxes, there can be no assurance that a Fund indeed will make sufficient distributions to avoid entirely the imposition of federal excise or income taxes on the Fund.

The following discussion of U.S. federal income tax consequences is for the general information of shareholders that are U.S. persons subject to tax. Shareholders that are IRAs or other qualified retirement plans generally are exempt from income taxation under the Code. Shareholders that are non-U.S. persons, IRAs or other qualified retirement plans should consult their own tax advisors regarding the tax consequences of an investment in a Fund.

Distributions of taxable net investment income (including the excess of net short-term capital gain over net long-term capital loss) generally are taxable to shareholders as ordinary income. However, distributions by a Fund to a non-corporate shareholder may be subject to income tax at the shareholder's applicable tax rate for long-term capital gain, to the extent that the Fund receives qualified dividend income on the securities it holds, the Fund properly designates the distribution as qualified dividend income, and the Fund and the non-corporate shareholder receiving the distribution meet certain holding period and other requirements. Distributions of taxable net investment income (including qualified dividend income) may be subject to an additional 3.8% Medicare tax as discussed below.

Distributions of net realized capital gain ("capital gain dividends") generally are taxable to shareholders as long-term capital gain, regardless of the length of time the Shares of a Fund have been held by such shareholders. Under current law, capital gain dividends recognized by a non-corporate shareholder generally will be taxed at a maximum rate of 20%. Capital gains of corporate shareholders are taxed at the same rate as ordinary income.

Distributions of taxable net investment income and net capital gain will be taxable as described above, whether received in additional cash or Shares. All distributions of taxable net investment income and net realized capital gain, whether received in Shares or in cash, must be reported by each taxable shareholder on their federal income tax return. Dividends or distributions declared in October, November or December as of a record date in such a month, if any, will be deemed to have been received by shareholders on December 31, if paid during January of the following year. Redemptions of Shares may result in tax consequences (gain or loss) to the shareholder and are also subject to these reporting requirements.

Redemption of Fund Shares by a shareholder will result in the recognition of taxable gain or loss in an amount equal to the difference between the amount realized and the shareholder's tax basis in the shareholder's Fund Shares. Such gain or loss is treated as a capital gain or loss if the Shares are held as capital assets. However, any loss realized upon the redemption of Shares within six months from the date of their purchase will be treated as a long-term capital loss to the extent of any amounts treated as capital gain dividends during such six-month period. All or a portion of any loss realized upon the redemption of Shares may be disallowed to the extent Shares are purchased (including Shares acquired by means of reinvested dividends) within 30 days before or after such redemption.

Under the Code, the Funds will be required to report to the IRS all distributions of taxable income and net realized capital gains as well as gross proceeds from the redemption or exchange of Fund Shares, except in the case of certain exempt shareholders. Under the backup withholding provisions of Section 3406 of the Code, distributions of taxable net investment income and net realized capital gain and proceeds from the redemption or exchange of the Shares of a regulated investment company may be subject to withholding of federal income tax (currently, at a rate of 24%) in the case of non-exempt shareholders who fail to furnish the investment company with their taxpayer identification numbers and with required certifications regarding their status under the federal income tax law, or if the Trust is notified by the IRS or a broker that withholding is required due to an incorrect TIN or a previous failure to report taxable interest or dividends. If the withholding provisions are applicable, any such distributions and proceeds, whether taken in cash or reinvested in additional shares, will be reduced by the amounts required to be withheld.

An additional 3.8% Medicare tax generally will be imposed on certain net investment income (including ordinary dividends, qualified dividend income and capital gain distributions received from a Fund and net gains from redemptions or other taxable dispositions of Fund Shares) of U.S. individuals, estates and trusts to the extent that any such person's "modified and adjusted gross income" (in the case of an individual) or "adjusted gross income" (in the case of an estate or trust) exceeds certain threshold amounts.

Payments to a shareholder that is either a non-U.S. financial institution ("FFI") or a non-financial non-U.S. entity ("NFFE") within the meaning of the Foreign Account Tax Compliance Act ("FATCA") may be subject to a generally nonrefundable 30% withholding tax on: (i) income dividends paid by a Fund after June 30, 2014, and (ii) certain capital gain distributions and the proceeds arising from the sale of Fund Shares paid by a Fund after December 31, 2018. FATCA withholding tax generally can be avoided: (i) by an FFI, subject to any applicable intergovernmental agreement or other exemption, if it enters into a valid agreement with the IRS to, among other requirements, report required information about certain direct and indirect ownership of non-U.S. financial accounts held by U.S. persons with the FFI and (ii) by an NFFE, if it: (a) certifies that it has no substantial U.S. persons as owners or (b) if it does have such owners, reports information relating to them. A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or other parties as necessary to comply with FATCA. Withholding also may be required if a non-U.S. entity that is a shareholder of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.

Shareholders should consult their tax advisors about the application of federal, state, local and non-U.S. tax law in light of their particular situation.

As of the end of tax year ended December 31, 2025, the Funds may have capital loss carry forwards ("CLCFs"). Under the provisions of the Regulated Investment Company Modernization Act of 2010, CLCFs that originate in tax years beginning after December 22, 2010 (post-effective CLCFs), are applied consistent with the character in which they originated as a new loss on the first day of the immediately succeeding tax year. Post-effective CLCFs can be carried forward indefinitely.

As of December 31, 2025, the following funds have CLCFs not subject to expiration.

---

| | | | |
|:---|:---|:---|:---|
|  | **Short Duration Securitized Bond Fund** | **Core Bond Fund** | **Core Plus Bond Fund** |
| Short-Term | $10605874 | $2732666 | $30257 |
| Long-Term | 10098101 | 14176862 | 3387 |
|  | $20703975 | $16909528 | $33644 |

---

**CUSTODIAN**

State Street, One Congress Street, Suite 1, Boston, MA 02114 is the Custodian for each Fund's investments. The Custodian acts as each Fund's depository, safe keeps its portfolio securities, collects all income and other payments with respect thereto, disburses funds at each Fund's request and maintains records in connection with its duties.

**SUB-FUND ACCOUNTING AGENT AND SUB-TRANSFER AGENT**

Pursuant to a Master Services Agreement entered into between Ultimus and the Adviser, Ultimus acts as the Funds' sub-fund accounting agent and, in such capacity, maintains the books and records of the Funds, calculates the NAV per Share of each class, calculates investment performance and prepares all financial statements and regulatory filings. Pursuant to the Master Services Agreement, Ultimus also acts as the Funds' sub-transfer agent and, in such capacity, maintains the records of each shareholder's account, answers shareholders' inquiries concerning their accounts, processes purchases and redemptions of Fund Shares, acts as dividend and distribution disbursing agent and performs other accounting and shareholder service functions. Fees of Ultimus under the Master Services Agreement are paid by the Adviser pursuant to the Administration Agreement.

**INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

The firm of Cohen & Company, Ltd., 1350 Euclid Ave., Suite 800, Cleveland, Ohio 44115, has been selected as independent registered public accounting firm for the Trust for the fiscal year ending December 31, 2026. Cohen & Company, Ltd. performs an annual audit of the Funds' financial statements and advises the Funds as to certain accounting matters.

**DISTRIBUTOR** 

Foreside Financial Services, LLC, a wholly owned subsidiary of Foreside Financial Group, LLC (dba ACA Group) located at 190 Middle Street, Suite 301, Portland, ME 04101 (the "Distributor"), is the Trust's principal underwriter and exclusive agent for distribution of the Funds' Shares. The Distributor continually distributes Shares of the Funds on a best efforts basis. The Distributor has no obligation to sell any specific quantity of Fund Shares. The Distributor and its officers have no role in determining the investment policies or which securities are to be purchased or sold by the Trust. The Distributor does not receive compensation from the Funds for its Distribution services. The Adviser pays the Distributor a fee for certain distribution-related services.

**SECURITIES LENDING AGENT**

State Street serves as the securities lending agent to the Funds. As the securities lending agent, State Street is responsible for the implementation and administration of the securities lending program pursuant to a Securities Lending Authorization Agreement ("Securities Lending Agreement"). State Street acts as agent to the Funds to lend available securities with any person on its list of approved borrowers, including State Street and certain of its affiliates. State Street determines whether a loan shall be made and negotiates and establishes the terms and conditions of the loan with the borrower. State Street ensures that all substitute interest, dividends, and other distributions paid with respect to loan securities is credited to a Fund's relevant account on the date such amounts are delivered by the borrower to State Street. State Street receives and holds, on the Fund's behalf, collateral from borrowers to secure obligations of borrowers with respect to any loan of available securities. State Street marks loaned securities and collateral to their market value each business day based upon the market value of the collateral and loaned securities at the close of business employing the most recently available pricing information and receives and delivers collateral in order to maintain the value of the collateral at no less than 100% of the market value of the loaned securities. At the termination of the loan, State Street returns the collateral to the borrower upon the return of the loaned securities to State Street. State Street, on behalf of each Fund, invests cash collateral into a registered investment company sponsored and managed by State Street Investment Management (the "Acquired Fund"). The Acquired Fund is available only through a private placement, is owned exclusively by the Funds, and is not available to the general public. Since the Funds own all of the shares of the Acquired Fund and its sole purpose is to benefit the shareholders of the Funds, it may be considered to be an investment company that is related to the Funds for purposes of investment and investor services. State Street maintains such records as are reasonably necessary to account for loans that are made and the income derived therefrom and makes available to the Funds a monthly statement describing the loans made, and the income derived from the loans, during the period. State Street performs compliance monitoring and testing of the securities lending program and provides quarterly report to the Board.

The Funds earned income and paid fees and compensation to service providers related to their securities lending activities during the most recent fiscal year shown below.

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Fees and/or compensation for securities lending activities and related services:** | **Fees and/or compensation for securities lending activities and related services:** | **Fees and/or compensation for securities lending activities and related services:** | **Fees and/or compensation for securities lending activities and related services:** | **Fees and/or compensation for securities lending activities and related services:** | **Fees and/or compensation for securities lending activities and related services:** | **Fees and/or compensation for securities lending activities and related services:** | **Fees and/or compensation for securities lending activities and related services:** | **Fees and/or compensation for securities lending activities and related services:** | **Fees and/or compensation for securities lending activities and related services:** | **Fees and/or compensation for securities lending activities and related services:** | **Fees and/or compensation for securities lending activities and related services:** | **Fees and/or compensation for securities lending activities and related services:** |
|  | **Gross income from securities lending activities** | Fees paid to securities lending agent from revenue split | Fees paid to securities lending agent from revenue split | Fees paid for any cash collateral management services (including fees deducted from a pooled cash collateral reinvestment vehicle) that are not included in the revenue split | Fees paid for any cash collateral management services (including fees deducted from a pooled cash collateral reinvestment vehicle) that are not included in the revenue split | Administrative fees not included in the revenue split | Indemnification fees not included in the revenue split | Rebates (paid to borrowers) | Rebates (paid to borrowers) | Other fees not included in revenue split | **Aggregate fees for securities lending activities** | **Aggregate fees for securities lending activities** | **Net income from securities lending activities** |
| Small Cap Fund | $1528470 | ($| 27909) | ($| 13808) | $— | $— | ($| 1371861) | $— | ($| 1413578) | $114892 |
| Small-Mid Cap Fund | 2005898 |  | (42735) |  | (17739) |  |  |  | (1764930) |  |  | (1825404) | 180494 |
| Mid Cap Fund | 98402 |  | (1977) |  | (882) |  |  |  | (87577) |  |  | (90436) | 7966 |
| Large Cap Fund | 5191575 |  | (74563) |  | (47275) |  |  |  | (4765554) |  |  | (4887392) | 304183 |
| Select Fund | 650647 |  | (10629) |  | (5919) |  |  |  | (587166) |  |  | (603714) | 46933 |
| Long-Short Fund | 16610710 |  | (71376) |  | (153441) |  |  |  | (15962547) |  |  | (16187364) | 423346 |
| International Fund | 326719 |  | (5940) |  | (2904) |  |  |  | (291454) |  |  | (300298) | 26421 |
| Short Duration Securitized Bond Fund | 1386605 |  | (19615) |  | (12575) |  |  |  | (1277017) |  |  | (1309207) | 77398 |
| Core Bond Fund | 1485085 |  | (28388) |  | (13209) |  |  |  | (1324591) |  |  | (1366188) | 118897 |
| Core Plus Bond Fund | 57410 |  | (2485) |  | (492) |  |  |  | (43121) |  |  | (46098) | 11312 |

---

The Securitized Total Return Fund commenced operations on July 1, 2025 and did not receive any securities lending related income during the year-ended December 31, 2025.

**PRINCIPAL HOLDERS OF OUTSTANDING SHARES**

As of January 31, 2026, the following persons owned of record 5% or more of a class of each Fund's outstanding Shares. A person owning of record, for the benefit of others, more than 25% of a class of a Fund's outstanding Shares may be deemed to control the class or Fund. A controlling shareholder can control the outcomes of proposals submitted to shareholders for approval.

---

| | |
|:---|:---|
| **SHAREHOLDER NAME AND ADDRESS** | **% OWNERSHIP** |
| **DIAMOND HILL SMALL CAP FUND - INVESTOR** |  |
| CHARLES SCHWAB & CO., INC.<br> SPECIAL CUSTODY ACCOUNT FOR THE EXCLUSIVE BENEFIT OF CUSTOMERS<br> ATTN: MUTUAL FUNDS OPERATIONS<br> 101 MONTGOMERY ST<br> SAN FRANCISCO, CA 94104 | 29.17% |
| NATIONWIDE TRUST COMPANY FSB<br> C/O IPO PORTFOLIO ACCOUNTING<br> PO BOX 182029<br> COLUMBUS, OH 43218-2029 | 5.86% |
| WELLS FARGO CLEARING SERVICES, LLC/SPECIAL CUSTODY ACCT FOR THE<br> EXCLUSIVE BENEFIT OF CUSTOMER<br> 2801 MARKET STREET<br> SAINT LOUIS, MO 63103 | 5.46% |
| **DIAMOND HILL SMALL CAP FUND - CLASS I** |  |
| CHARLES SCHWAB & CO., INC.<br> SPECIAL CUSTODY ACCOUNT FOR THE EXCLUSIVE BENEFIT OF CUSTOMERS<br> ATTN: MUTUAL FUNDS OPERATIONS<br> 101 MONTGOMERY ST<br> SAN FRANCISCO, CA 94104 | 41.24% |
| RBC CAPITAL MARKETS LLC<br> MUTUAL FUND OMNIBUS PROCESSING OMNIBUS<br> ATTN MUTUAL FUND OPS MANAGER<br> 250 NICOLLET MALL, SUITE 1400<br> MINNEAPOLIS, MN 55401-1931 | 5.84% |
| **DIAMOND HILL SMALL CAP FUND - CLASS Y** |  |
| SEI PRIVATE TRUST COMPANY/C/O PRINCIPAL FINANCIAL<br> ATTN: MUTUAL FUND ADMINISTRATOR<br> ONE FREEDOM VALLEY DRIVE<br> OAKS, PA 19456 | 47.79% |
| EMPOWER TRUST FBO/EMPLOYEE BENEFITS CLIENTS 401K<br> 8515 E ORCHARD RD 2T2<br> GREENWOOD VILLAGE, CO 80111 | 11.10% |
| DCGT AS TTEE AND/OR CUST/FBO PLIC VARIOUS RETIREMENT PLANS<br> OMNIBUS<br> ATTN NPIO TRADE DESK<br> 711 HIGH STREET<br> DES MOINES, IA 50392 | 8.50% |
| SEI PRIVATE TRUST COMPANY<br> ATTN: MUTUAL FUNDS<br> ONE FREEDOM VALLEY DRIVE<br> OAKS, PA 19456 | 8.11% |
| J.P. MORGAN SECURITIES LLC/FOR THE EXCLUSIVE BENEFIT OF CUSTOMERS<br> 4 CHASE METROTECH CENTER<br> 3RD FLOOR MUTUAL FUND DEPT<br> BROOKLYN, NY 11245 | 5.28% |

---

---

| | |
|:---|:---|
| **SHAREHOLDER NAME AND ADDRESS** | **% OWNERSHIP** |
| EMPOWER TRUST FBO/CREDIT UNION OF COLORADO 401K C/O FASCORE LLC<br> 8515 E ORCHARD RD 2T2<br> GREENWOOD VILLAGE, CO 80111 | 5.26% |
| **DIAMOND HILL SMALL-MID CAP FUND - INVESTOR** |  |
| CHARLES SCHWAB & CO., INC.<br> SPECIAL CUSTODY ACCOUNT FOR THE EXCLUSIVE BENEFIT OF CUSTOMERS<br> ATTN: MUTUAL FUNDS OPERATIONS<br> 101 MONTGOMERY ST<br> SAN FRANCISCO, CA 94104 | 27.85% |
| JOHN HANCOCK LIFE INSURANCE COMPANY USA<br> RPS TRADING OPS ST-6<br> 601 CONGRESS ST<br> BOSTON, MA 02110 | 18.67% |
| WELLS FARGO CLEARING SERVICES, LLC<br> SPECIAL CUSTODY ACCT FOR THE<br> EXCLUSIVE BENEFIT OF CUSTOMER<br> 2801 MARKET STREET<br> SAINT LOUIS, MO 63103 | 8.09% |
| CHARLES SCHWAB & CO., INC.<br> SPECIAL CUSTODY ACCT FBO CUSTOMERS<br> ATTN: MUTUAL FUNDS<br> 211 MAIN STREET<br> SAN FRANCISCO, CA 94105 | 6.64% |
| **DIAMOND HILL SMALL-MID CAP FUND - CLASS I** |  |
| CHARLES SCHWAB & CO., INC.<br> SPECIAL CUSTODY ACCOUNT FOR THE EXCLUSIVE BENEFIT OF CUSTOMERS<br> ATTN: MUTUAL FUNDS OPERATIONS<br> 101 MONTGOMERY ST<br> SAN FRANCISCO, CA 94104 | 32.78% |
| MARIL CO FBO SG<br> C O RELIANCE TRUST COMPANY WI ATTN MF<br> 4900 WEST BROWN DEER RD<br> MILWAUKEE, WI 53223 | 25.21% |
| RBC CAPITAL MARKETS LLC<br> MUTUAL FUND OMNIBUS PROCESSING OMNIBUS<br> ATTN MUTUAL FUND OPS MANAGER<br> 250 NICOLLET MALL, SUITE 1400<br> MINNEAPOLIS, MN 55401-1931 | 6.29% |
| CHARLES SCHWAB & CO INC/SPECIAL CUSTODY ACCT FBO CUSTOMERS<br> ATTN MUTUAL FUNDS<br> 211 MAIN STREET<br> SAN FRANCISCO, CA 94105 | 5.03% |
| **DIAMOND HILL SMALL-MID CAP FUND - CLASS Y** |  |
| NATIONAL FINANCIAL SERVICES LLC<br> 499 WASHINGTON BLVD<br> JERSEY CITY, NJ 07310 | 20.08% |
| TIAA TRUST, N.A. AS CUST/TTEE/OF RETIREMENT PLANS<br> RECORDKEPT BY TIAA<br> ATTN: FUND OPERATIONS<br> 8500 ANDREW CARNEGIE BLVD.<br> CHARLOTTE, NC 28262-8500 | 11.71% |
| MATRIX TRUST COMPANY CUST. FBO<br> MEBT - UNITIZED MUTUAL FUND ACCOUNT<br> PO BOX 52129<br> PHOENIX, AZ 85072-2129 | 10.71% |

---

---

| | |
|:---|:---|
| **SHAREHOLDER NAME AND ADDRESS** | **% OWNERSHIP** |
| NATIONAL FINANCIAL SERVICES LLC<br> 499 WASHINGTON BLVD<br> JERSEY CITY, NJ 07310 | 10.65% |
| STATE OF WYOMING TTEE FBO/THE WRS DCP<br> C/O FASCORE LLC<br> 8525 E ORCHARD RD 2T2<br> GREENWOOD VILLAGE, CO 80111 | 10.60% |
| NATIONAL FINANCIAL SERVICES LLC<br> 499 WASHINGTON BLVD<br> JERSEY CITY, NJ 07310 | 5.85% |
| **DIAMOND HILL MID CAP FUND - INVESTOR** |  |
| CHARLES SCHWAB & CO., INC.<br> SPECIAL CUSTODY ACCOUNT FOR THE EXCLUSIVE BENEFIT OF CUSTOMERS<br> ATTN: MUTUAL FUNDS OPERATIONS<br> 101 MONTGOMERY ST<br> SAN FRANCISCO, CA 94104 | 56.23% |
| PERSHING LLC<br> 1 PERSHING PLAZA<br> JERSEY CITY, NJ 07399-0002 | 7.50% |
| **DIAMOND HILL MID CAP FUND - CLASS I** |  |
| RAYMOND JAMES<br> OMNIBUS FOR MUTUAL FUNDS<br> 880 CARILLON PKWY<br> ST PETERSBURG, FL 33716 | 51.34% |
| CHARLES SCHWAB & CO., INC.<br> SPECIAL CUSTODY ACCOUNT FOR THE EXCLUSIVE BENEFIT OF CUSTOMERS<br> ATTN: MUTUAL FUNDS OPERATIONS<br> 101 MONTGOMERY ST<br> SAN FRANCISCO, CA 94104 | 16.36% |
| PERSHING LLC<br> 1 PERSHING PLAZA<br> JERSEY CITY, NJ 07399-0002 | 13.12% |
| **DIAMOND HILL MID CAP FUND - CLASS Y** |  |
| JOHN HANCOCK TRUST COMPANY<br> 200 BERKELEY ST<br> BOSTON, MA 02116 | 51.28% |
| NATIONAL FINANCIAL SERVICES LLC<br> 499 WASHINGTON BLVD<br> JERSEY CITY, NJ 07310 | 15.04% |
| UMB BANK NA CUST /FBO REFLOW FUND LLC<br> 1010 GRAND BLVD<br> KANSAS CITY, MO 64106 | 13.11% |
| ASCENSUS TRUST COMPANY<br> FBO/RAFFIN CONSTRUCTION 401(K) PLAN<br> P.O. BOX 10758<br> FARGO, ND 58106 | 11.69% |
| **DIAMOND HILL LARGE CAP FUND - INVESTOR** |  |
| CHARLES SCHWAB & CO., INC.<br> SPECIAL CUSTODY ACCOUNT FOR THE EXCLUSIVE BENEFIT OF CUSTOMERS<br> ATTN: MUTUAL FUNDS OPERATIONS<br> 101 MONTGOMERY ST<br> SAN FRANCISCO, CA 94104 | 27.46% |
| MERRILL LYNCH PIERCE FENNER & SMITH INC<br> FOR THE SOLE BENEFIT OF ITS CUSTOMERS<br> 4800 DEER LAKE DR EAST<br> JACKSONVILLE, FL 32246 | 16.80% |

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---

| | |
|:---|:---|
| **SHAREHOLDER NAME AND ADDRESS** | **% OWNERSHIP** |
| WELLS FARGO CLEARING SERVICES, LLC<br> SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER<br> 2801 MARKET STREET<br> SAINT LOUIS, MO 63103 | 5.61% |
| NATIONWIDE TRUST COMPANY FSB/C/O IPO PORTFOLIO ACCOUNTING<br> P O BOX 182029<br> COLUMBUS, OH 43218-2029 | 5.48% |
| **DIAMOND HILL LARGE CAP FUND - CLASS I** |  |
| RAYMOND JAMES<br> OMNIBUS FOR MUTUAL FUNDS<br> 880 CARILLON PKWY<br> ST PETERSBURG, FL 33716 | 29.20% |
| WELLS FARGO CLEARING SERVICES, LLC<br> SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER<br> 2801 MARKET STREET<br> SAINT LOUIS, MO 63103 | 13.15% |
| CHARLES SCHWAB & CO., INC.<br> SPECIAL CUSTODY ACCOUNT FOR THE EXCLUSIVE BENEFIT OF CUSTOMERS<br> ATTN: MUTUAL FUNDS OPERATIONS<br> 101 MONTGOMERY ST<br> SAN FRANCISCO, CA 94104 | 12.87% |
| CHARLES SCHWAB & CO., INC.<br> SPECIAL CUSTODY ACCT FBO CUSTOMERS<br> ATTN: MUTUAL FUNDS<br> 211 MAIN STREET<br> SAN FRANCISCO, CA 94105 | 10.56% |
| **DIAMOND HILL LARGE CAP FUND - CLASS Y** |  |
| NATIONAL FINANCIAL SERVICES LLC<br> 499 WASHINGTON BLVD<br> JERSEY CITY, NJ 07310 | 16.64% |
| VANGUARD FIDUCIARY TRUST COMPANY<br> FBO 401 K CLIENTS<br> ATTN INVESTMENT SERVICES<br> PO BOX 2600 VM L23<br> VALLEY FORGE, PA 19482-2600 | 15.01% |
| NATIONAL FINANCIAL SERVICES LLC<br> 499 WASHINGTON BLVD<br> JERSEY CITY, NJ 07310 | 14.46% |
| TIAA TRUST, N.A. AS CUST/TTEE/OF RETIREMENT PLANS RECORDKEPT BY TIAA<br> ATTN: FUND OPERAIONS<br> 8500 ANDREW CARNEGIE BLVD.<br> CHARLOTTE, NC 25262-8500 | 7.62% |
| **DIAMOND HILL SELECT FUND - INVESTOR** |  |
| CHARLES SCHWAB & CO., INC.<br> SPECIAL CUSTODY ACCOUNT FOR THE EXCLUSIVE BENEFIT OF CUSTOMERS<br> ATTN: MUTUAL FUNDS OPERATIONS<br> 101 MONTGOMERY ST<br> SAN FRANCISCO, CA 94104 | 50.79% |
| SAXON & CO<br> P.O. BOX 94597<br> CLEVELAND OH 44101 | 11.41% |
| **DIAMOND HILL SELECT FUND - CLASS I** |  |
| CHARLES SCHWAB & CO., INC.<br> SPECIAL CUSTODY ACCOUNT FOR THE EXCLUSIVE BENEFIT OF CUSTOMERS<br> ATTN: MUTUAL FUNDS OPERATIONS<br> 101 MONTGOMERY ST<br> SAN FRANCISCO, CA 94104 | 41.15% |

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| | |
|:---|:---|
| **SHAREHOLDER NAME AND ADDRESS** | **% OWNERSHIP** |
| WELLS FARGO CLEARING SERVICES, LLC<br> SPECIAL CUSTODY ACCT FOR THE<br> EXCLUSIVE BENEFIT OF CUSTOMER<br> 2801 MARKET STREET<br> SAINT LOUIS, MO 63103 | 10.43% |
| LPL FINANCIAL<br> 4707 EXECUTIVE DRIVE<br> SAN DIEGO, CA 92121-3091 | 8.74% |
| PERSHING LLC<br> 1 PERSHING PLAZA<br> JERSEY CITY, NJ 07399-0002 | 7.28% |
| RAYMOND JAMES<br> OMNIBUS FOR MUTUAL FUNDS<br> 880 CARILLON PKWY<br> ST PETERSBURG, FL 33716 | 6.63% |
| **DIAMOND HILL SELECT FUND - CLASS Y** |  |
| NATIONAL FINANCIAL SERVICES LLC<br> 499 WASHINGTON BLVD<br> JERSEY CITY, NJ 07310 | 15.06% |
| RELIANCE TRUST COMPANY<br> FBO/T ROWE PRICE RETIREMENT PLAN CLIENTS<br> P.O. BOX 78446<br> ATLANTA, GA 30357 | 13.75% |
| BANK OF AMERICA CUST FBO MFO<br> PO BOX 843869<br> DALLAS, TX 75284 | 11.12% |
| BANK OF AMERICA CUST FBO MFO<br> PO BOX 843869<br> DALLAS, TX 75284 | 10.12% |
| CHARLES SCHWAB & CO., INC.<br> SPECIAL CUSTODY ACCOUNT FOR THE EXCLUSIVE BENEFIT OF CUSTOMERS<br> ATTN: MUTUAL FUNDS OPERATIONS<br> 101 MONTGOMERY ST<br> SAN FRANCISCO, CA 94104 | 9.30% |
| SEI PRIVATE TRUST COMPANY/C/O MELLON BANK<br> ONE FREEDOM VALLEY DRIVE<br> OAKS, PA 19456 | 6.48% |
| **DIAMOND HILL LONG-SHORT FUND - INVESTOR** |  |
| MORGAN STANLEY SMITH BARNEY LLC<br> FOR THE EXCLUSIVE BENEFIT OF ITS CUSTOMERS<br> NEW YORK, NY 10004-1901 | 22.81% |
| WELLS FARGO CLEARING SERVICES, LLC<br> SPECIAL CUSTODY ACCT FOR THE<br> EXCLUSIVE BENEFIT OF CUSTOMER<br> 2801 MARKET STREET<br> SAINT LOUIS, MO 63103 | 8.78% |
| CHARLES SCHWAB & CO., INC.<br> SPECIAL CUSTODY ACCT FBO CUSTOMERS<br> ATTN: MUTUAL FUNDS<br> 211 MAIN STREET<br> SAN FRANCISCO, CA 94105 | 8.28% |
| MERRILL LYNCH PIERCE FENNER & SMITH INC<br> FOR THE SOLE BENEFIT OF ITS CUSTOMERS<br> 4800 DEER LAKE DR EAST<br> JACKSONVILLE, FL 32246 | 7.61% |
| RAYMOND JAMES<br> OMNIBUS FOR MUTUAL FUNDS<br> 880 CARILLON PKWY<br> ST PETERSBURG, FL 33716 | 6.44% |
| UBS FINANCIAL SERVICES INC. FBO UBS WM USA<br> ATTN DEPARTMENT MANAGER<br> OMNI ACCOUNT M/F<br> 1000 HARBOR BLVD<br> WEEHAWKEN NJ 07086-6761 | 6.22% |

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---

| | |
|:---|:---|
| **SHAREHOLDER NAME AND ADDRESS** | **% OWNERSHIP** |
| **DIAMOND HILL LONG-SHORT FUND - CLASS I** |  |
| MORGAN STANLEY SMITH BARNEY LLC<br> FOR THE EXCLUSIVE BENEFIT OF ITS CUSTOMERS<br> NEW YORK, NY 10004-1901 | 34.08% |
| PERSHING LLC<br> 1 PERSHING PLAZA<br> JERSEY CITY, NJ 07399-0002 | 24.57% |
| MERRILL LYNCH PIERCE FENNER & SMITH INC<br> FOR THE SOLE BENEFIT OF ITS CUSTOMERS<br> 4800 DEER LAKE DR EAST<br> JACKSONVILLE, FL 32246 | 6.30% |
| UBS FINANCIAL SERVICES INC. FBO UBS WM USA<br> OMNI ACCOUNT M/F<br> ATTN DEPARTMENT MANAGER<br> 1000 HARBOR BLVD<br> WEEHAWKEN NJ 07086-6761 | 5.53% |
| **DIAMOND HILL LONG-SHORT FUND - CLASS Y** |  |
| NATIONAL FINANCIAL SERVICES LLC<br> 499 WASHINGTON BLVD<br> JERSEY CITY, NJ 07310 | 42.60% |
| WELLS FARGO BANK NA FBO/OMNIBUS CASH<br> PO BOX 1533<br> MINNEAPOLIS, MN 55480 | 24.54% |
| NATIONAL FINANCIAL SERVICES LLC<br> 499 WASHINGTON BLVD<br> JERSEY CITY, NJ 07310 | 11.21% |
| NATIONAL FINANCIAL SERVICES LLC<br> 499 WASHINGTON BLVD<br> JERSEY CITY, NJ 07310 | 8.74% |
| **DIAMOND HILL INTERNATIONAL FUND - INVESTOR** |  |
| CHARLES SCHWAB & CO., INC.<br> SPECIAL CUSTODY ACCOUNT FOR THE EXCLUSIVE BENEFIT OF CUSTOMERS<br> ATTN: MUTUAL FUNDS OPERATIONS<br> 101 MONTGOMERY ST<br> SAN FRANCISCO, CA 94104 | 69.72% |
| MORGAN STANLEY SMITH BARNEY LLC<br> FOR THE EXCLUSIVE BENEFIT OF ITS CUSTOMERS<br> NEW YORK, NY 10004-1901 | 22.98% |
| PERSHING LLC<br> 1 PERSHING PLAZA<br> JERSEY CITY, NJ 07399-0002 | 5.33% |
| **DIAMOND HILL INTERNATIONAL FUND - CLASS I** |  |
| RAYMOND JAMES<br> OMNIBUS FOR MUTUAL FUNDS<br> 880 CARILLON PKWY<br> ST PETERSBURG, FL 33716 | 38.50% |
| CHARLES SCHWAB & CO., INC.<br> SPECIAL CUSTODY ACCOUNT FOR THE EXCLUSIVE BENEFIT OF CUSTOMERS<br> ATTN: MUTUAL FUNDS OPERATIONS<br> 101 MONTGOMERY ST<br> SAN FRANCISCO, CA 94104 | 31.65% |
| PERSHING LLC<br> 1 PERSHING PLAZA<br> JERSEY CITY, NJ 07399-0002 | 14.53% |

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---

| | |
|:---|:---|
| **SHAREHOLDER NAME AND ADDRESS** | **% OWNERSHIP** |
| **DIAMOND HILL INTERNATIONAL FUND - CLASS Y** |  |
| DIAMOND HILL CAPITAL MANAGEMENT INC<br> 325 JOHN H MCCONNELL BLVD SUITE 200<br> COLUMBUS, OH 43215 | 66.00% |
| NATIONAL FINANCIAL SERVICES LLC<br> 499 WASHINGTON BLVD<br> JERSEY CITY, NJ 07310 | 24.82% |
| SEI PRIVATE TRUST COMPANY/C/O SECURITY NATIONAL BANK OMAHA<br> ONE FREEDOM VALLEY DRIVE<br> OAKS, PA 19456 | 8.20% |
| **DIAMOND HILL SHORT DURATION SECURITIZED BOND FUND - INVESTOR** |  |
| CHARLES SCHWAB & CO., INC.<br> SPECIAL CUSTODY ACCOUNT FOR THE EXCLUSIVE BENEFIT OF CUSTOMERS<br> ATTN: MUTUAL FUNDS OPERATIONS<br> 101 MONTGOMERY ST<br> SAN FRANCISCO, CA 94104 | 31.78% |
| J.P. MORGAN SECURITIES LLC/FOR THE EXCLUSIVE BENEFIT OF CUSTOMERS<br> 4 CHASE METROTECH CENTER<br> 3RD FLOOR MUTUAL FUND DEPT<br> BROOKLYN, NY 11245 | 20.96% |
| **DIAMOND HILL SHORT DURATION SECURITIZED BOND FUND - CLASS I** |  |
| CHARLES SCHWAB & CO., INC.<br> SPECIAL CUSTODY ACCOUNT FOR THE EXCLUSIVE BENEFIT OF CUSTOMERS<br> ATTN: MUTUAL FUNDS OPERATIONS<br> 101 MONTGOMERY ST<br> SAN FRANCISCO, CA 94104 | 32.49% |
| UBS FINANCIAL SERVICES INC.<br> FBO UBS WM USA OMNI ACCOUNT M/F<br> 1000 HARBOR BLVD<br> WEEHAWKEN NJ 07086-6761 | 11.87% |
| LPL FINANCIAL/A/C 1000-0005<br> 4707 EXECUTIVE DRIVE<br> SAN DIEGO CA 92121-3091 | 6.77% |
| MORGAN STANLEY SMITH BARNEY LLC<br> FOR THE EXCLUSIVE BENEFIT OF ITS CUSTOMERS<br> NEW YORK, NY 10004-1901 | 6.37% |
| **DIAMOND HILL SHORT DURATION SECURITIZED BOND FUND - CLASS Y** |  |
| J.P. MORGAN SECURITIES LLC/FOR THE EXCLUSIVE BENEFIT OF CUSTOMERS<br> 4 CHASE METROTECH CENTER<br> 3RD FLOOR MUTUAL FUND DEPT<br> BROOKLYN, NY 11245 | 13.15% |
| SEI PRIVATE TRUST COMPANY/C/O PRINCIPAL FINANCIAL<br> ONE FREEDOM VALLEY DRIVE<br> OAKS, PA 19456 | 12.24% |
| RELIANCE TRUST CO FBO<br> HUNTINGTON NATIONAL BANK<br> PO BOX 570788<br> ATLANTA, GA 30357 | 11.36% |
| NATIONAL FINANCIAL SERVICES LLC<br> 499 WASHINGTON BLVD<br> JERSEY CITY, NJ 07310 | 9.47% |
| NATIONAL FINANCIAL SERVICES LLC<br> 499 WASHINGTON BLVD<br> JERSEY CITY, NJ 07310 | 8.71% |
| NATIONAL FINANCIAL SERVICES LLC<br> 499 WASHINGTON BLVD<br> JERSEY CITY, NJ 07310 | 7.68% |
| BARCLAYS CAPITAL INC.<br> 745 7TH AVENUE<br> NEW YORK, NY 10019 | 6.21% |
| **DIAMOND HILL SECURITIZED TOTAL RETURN FUND - INVESTOR** |  |
| DIAMOND HILL CAPITAL MANAGEMENT INC<br> 325 JOHN H MCCONNELL BLVD SUITE 200<br> COLUMBUS, OH 43215 | 100% |

---

---

| | |
|:---|:---|
| **SHAREHOLDER NAME AND ADDRESS** | **% OWNERSHIP** |
| **DIAMOND HILL SECURITIZED TOTAL RETURN FUND - CLASS I** |  |
| DIAMOND HILL CAPITAL MANAGEMENT INC<br> 325 JOHN H MCCONNELL BLVD SUITE 200<br> COLUMBUS, OH 43215 | 74.03% |
| JODY FOSTER<br> ATLANTA, GA 30342 | 25.97% |
| **DIAMOND HILL SECURITIZED TOTAL RETURN FUND - CLASS Y** |  |
| DIAMOND HILL CAPITAL MANAGEMENT INC<br> 325 JOHN H MCCONNELL BLVD SUITE 200<br> COLUMBUS, OH 43215 | 100 |
| **DIAMOND HILL CORE BOND FUND - INVESTOR** |  |
| CHARLES SCHWAB & CO., INC.<br> SPECIAL CUSTODY ACCOUNT FOR THE EXCLUSIVE BENEFIT OF CUSTOMERS<br> ATTN: MUTUAL FUNDS OPERATIONS<br> 101 MONTGOMERY ST<br> SAN FRANCISCO, CA 94104 | 42.76% |
| VANGUARD BROKERAGE SERVICES<br> 100 VANGUARD BLVD<br> MALVERN, PA 19355 | 12.38% |
| NATIONAL FINANCIAL SERVICES LLC<br> 499 WASHINGTON BLVD<br> JERSEY CITY, NJ 07310 | 10.62% |
| PERSHING LLC<br> 1 PERSHING PLAZA<br> JERSEY CITY, NJ 07399-0002 | 6.15% |
| MORGAN STANLEY SMITH BARNEY LLC/FOR THE EXCLUSIVE BENEFIT OF ITS CUSTOMERS<br> NEW YORK, NY 10004-1901<br> NEW YORK, NY 10004-1901 | 5.82% |
| **DIAMOND HILL CORE BOND FUND - CLASS I** |  |
| CHARLES SCHWAB & CO., INC.<br> SPECIAL CUSTODY ACCOUNT FOR THE EXCLUSIVE BENEFIT OF CUSTOMERS<br> ATTN: MUTUAL FUNDS OPERATIONS<br> 101 MONTGOMERY ST<br> SAN FRANCISCO, CA 94104 | 52.63% |
| LPL FINANCIAL<br> 4707 EXECUTIVE DRIVE<br> SAN DIEGO, CA 92121-3091 | 7.28% |
| PERSHING LLC<br> 1 PERSHING PLAZA<br> JERSEY CITY, NJ 07399-0002 | 5.07% |
| RAYMOND JAMES/OMNIBUS FOR MUTUAL FUNDS<br> ATTN MUTUAL FUND RECONCILIATION 14G<br> 880 CARILLON PKWY<br> ST PETERSBURG, FL 33716 | 5.02% |
| **DIAMOND HILL CORE BOND FUND - CLASS Y** |  |
| VALLEE & CO FBO FCB<br> C O RELIANCE TRUST COMPANY WI ATTN MF<br> 4900 WEST BROWN DEER RD<br> MILWAUKEE, WI 53223 | 19.67% |
| MITRA & CO FBO FCB<br> C/O RELIANCE TRUST COMPANY WI<br> 4900 WEST BROWN DEER RD<br> MILWAUKEE, WI 53223 | 17.16% |

---

---

| | |
|:---|:---|
| **SHAREHOLDER NAME AND ADDRESS** | **% OWNERSHIP** |
| MARIL & CO FBO 47<br> C/O RELIANCE TRUST COMPANY WI<br> 4900 W BROWN DEER ROAD<br> MILWAUKEE, WI 53223 | 8.40% |
| BANKPLUS WEALTH MANAGEMENT GROUP 1<br> 1200 EASTOVER DRIVE SUITE 300<br> JACKSON, MS 39211 | 6.21% |
| **DIAMOND HILL CORE PLUS BOND FUND - INVESTOR** |  |
| CHARLES SCHWAB & CO., INC.<br> SPECIAL CUSTODY ACCOUNT FOR THE EXCLUSIVE BENEFIT OF CUSTOMERS<br> ATTN: MUTUAL FUNDS OPERATIONS<br> 101 MONTGOMERY ST<br> SAN FRANCISCO, CA 94104 | 56.85% |
| DIAMOND HILL CAPITAL MANAGEMENT INC<br> 325 JOHN H MCCONNELL BLVD SUITE 200<br> COLUMBUS, OH 43215 | 43.15% |
| **DIAMOND HILL CORE PLUS BOND FUND - CLASS I** |  |
| CHARLES SCHWAB & CO., INC.<br> SPECIAL CUSTODY ACCOUNT FOR THE EXCLUSIVE BENEFIT OF CUSTOMERS<br> ATTN: MUTUAL FUNDS OPERATIONS<br> 101 MONTGOMERY ST<br> SAN FRANCISCO, CA 94104 | 57.84% |
| NATIONAL FINANCIAL SERVICES LLC<br> 499 WASHINGTON BLVD<br> JERSEY CITY, NJ 07310 | 40.17% |
| **DIAMOND HILL CORE PLUS BOND FUND - CLASS Y** |  |
| DIAMOND HILL CAPITAL MANAGEMENT INC<br> 325 JOHN H MCCONNELL BLVD SUITE 200<br> COLUMBUS, OH 43215 | 95.98% |

---

**FINANCIAL STATEMENTS**

The financial statements and independent registered public accounting firm's report required to be included in this SAI are incorporated herein by reference to the [Form N-CSR](https://www.sec.gov/ix?doc=/Archives/edgar/data/1032423/000139834426003421/fp0096892-3_ncsrixbrl.htm), which includes the annual financial statements and additional information for the Funds for the fiscal year ended December 31, 2025. The Funds will provide the financial statements and additional information and the annual and semi-annual reports without charge upon written request or request by telephone. The financial statements and additional information and the annual and semi-annual reports to shareholders are also available on the Funds' website at www.diamond-hill.com/documents.

![](image_012.jpg)

**February 28, 2026**

---

| | |
|:---|:---|
| **Diamond Hill Large Cap Concentrated ETF** | **DHLX** |

---

**Shares of the Fund are listed and traded on the NYSE Arca, Inc. (the "Exchange")** 

The Securities and Exchange Commission has not approved or disapproved these shares or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.

![](fp0095533-4_ia.jpg)

**Table of Contents**<br>

---

| | |
|:---|:---|
| **Fund Summary** |  |
| Diamond Hill Large Cap Concentrated ETF (DHLX) | [1](#pro25) |
| **Fund Details** |  |
| Additional Information About Investment Strategies and Related Risks | [5](#pro26) |
| Investment Risks | [5](#pro27) |
| Portfolio Holdings Disclosure | [7](#pro27) |
| Management of the Fund | [7](#pro28) |
| **Shareholder Information** |  |
| Pricing Your Shares | [8](#pro29) |
| How to Buy and Sell Shares | [8](#pro30) |
| Market Timing and Frequent Trading Policy | [9](#pro31) |
| Distributions and Taxes | [9](#pro22) |
| Householding | [10](#pro33) |
| **Financial Highlights** | [11](#pro34) |

---

**For more information, see back cover.**![](fp0095533-4_1.jpg)

![](image_011.jpg)

**Ticker: DHLX**&nbsp;&nbsp;&nbsp;&nbsp;**Stock Exchange: NYSE Arca, Inc.** 

**Investment Objective** 

The investment objective of the Diamond Hill Large Cap Concentrated ETF (formerly known as the Diamond Hill Large Cap Concentrated Fund) is to provide long-term capital appreciation.

**Fees and Expenses of the Fund** 

This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

---

| |
|:---|
| **SHAREHOLDER FEES (fees paid directly from your investment)** |
| **None** |

---

---

| | |
|:---|:---|
| **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** | **ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)** |
| **Management fees** | 0.50% |
| **Other expenses** | 0.05% |
| **Total annual fund operating expenses** | **0.55%** |

---

**EXPENSE EXAMPLE** 

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 

---

| | | | |
|:---|:---|:---|:---|
| **1 Year** | **3 Years** | **5 Years** | **10 Years** |
| $56 | $176 | $307 | $689 |

---

**PORTFOLIO TURNOVER** 

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in the Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 56% of the average value of its portfolio.

**Principal Investment Strategy** 

The Fund, under normal market conditions, invests at least 80% of its net assets in U.S. equity securities with large market capitalizations ("large cap") that Diamond Hill Capital Management, Inc. (the "Adviser") believes are undervalued. Equity securities consist of common and preferred stocks. Large cap companies are defined as companies with market capitalizations of $15 billion or greater at the time of purchase. The Fund is non-diversified and intends to concentrate its investments in approximately 20-30 securities.

The Adviser focuses on estimating a company's value independent of its current stock price. To estimate a company's value, the Adviser focuses on the fundamental economic drivers of the business. The primary focus is on "bottom-up" analysis, which takes into consideration earnings, revenue growth, operating margins, and other economic factors. The Adviser also considers the level of industry competition, the regulatory environment, the threat of technological obsolescence, and a variety of other industry factors. If the Adviser's estimate of a company's value differs sufficiently from the current market price, the company may be an attractive investment opportunity. In constructing a portfolio of securities, the Adviser is not constrained by the sector or industry weights in the benchmark. The Adviser relies on individual stock selection and discipline in the investment process to add value. The highest portfolio security weights are assigned to companies where the Adviser has the highest level of conviction.

Once a holding is selected, the Adviser continues to monitor the company's strategies, financial performance and competitive environment. The Adviser may sell a security as it reaches the Adviser's estimate of the company's value if it believes that the company's earnings, revenue growth, operating margin, or other economic factors are deteriorating, or if it identifies a stock that it believes offers a better investment opportunity.

**Main Risks** 

All investments carry a certain amount of risk and the Fund cannot guarantee that it will achieve its investment objective. An investment in the Fund is not a deposit or obligation of any bank, is not endorsed or guaranteed by any bank, and is not insured by the Federal Deposit Insurance Corporation or any other government agency. You may lose money by investing in the Fund. Below are the main risks of investing in the Fund. All of the risks listed below are significant to the Fund, regardless of the order in which they appear.

**Authorized Participant Risk.** Only an authorized participant ("Authorized Participant") that has entered into a contractual arrangement with the Fund's distributor may engage in creation or redemption transactions directly with the Fund. To the extent that Authorized Participants exit the business or are unable

**DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM**<sub>1</sub>

---

| | |
|:---|:---|
| **Diamond Hill Large Cap Concentrated ETF Summary** | As of February 28, 2026 |

---

or unwilling to proceed with creation or redemption orders with respect to the Fund and no other Authorized Participant is able or willing to step forward to create or redeem large blocks of shares known as "Creation Units," shares may be more likely to trade at a premium or discount to net asset value ("NAV") and possibly face trading halts or delisting. Authorized Participant concentration risk may be heightened for exchange-traded funds ("ETFs") that invest in non-U.S. securities or other securities or instruments that have lower trading volumes.

**Current Market Environment Risk.** Various sectors of the financial markets may experience an extended period of adverse conditions. Market uncertainty can increase dramatically, and these conditions may result in disruptions of the equity markets, periods of reduced liquidity, greater general volatility, and a contraction of availability of credit and lack of price transparency.

**ETF Structure Risk.** The Fund is an ETF, and, as a result of its structure, is exposed to the following risks:

● *Concentration of Primary Market Participants.* The Fund may have a limited number of financial institutions that may act as Authorized Participants. In addition, there may be a limited number of market makers and/or liquidity providers in the marketplace.

● *Costs of Buying or Selling Shares.* Due to the costs of buying or selling shares, including brokerage commissions imposed by brokers and bid-ask spreads, frequent trading of shares may significantly reduce investment results and an investment in shares may not be advisable for investors who anticipate regularly making small investments.

● *Shares May Trade at Prices Other Than NAV.* As with all ETFs, shares may be bought and sold in the secondary market at market prices. As a result, there may be times when the market price of shares is more than the NAV intra-day (premium) or less than the NAV intra-day (discount) due to supply and demand of shares or during periods of market volatility.

● *Secondary Market Trading Risk.* Although shares are listed for trading on the Exchange and may be traded on U.S. exchanges other than the Exchange, there can be no assurance that shares will trade with any volume, or at all, on any stock exchange. Investors buying or selling shares in the secondary market may incur costs attributable to the difference between the highest price a buyer is willing to pay to purchase shares (bid) and the lowest price a seller is willing to accept for shares (ask) when buying or selling shares in the secondary market (the "bid-ask spread"). If a trading halt occurs, a shareholder may temporarily be unable to purchase or sell shares of the Fund.

Shares of the Fund, similar to shares of other issuers listed on a stock exchange, may be sold short; and therefore, are subject to the risk of increased volatility and price decreases associated with being sold short.

Trading activity in derivative products based on the Fund may lead to increased trading volume and volatility in the secondary market for the shares of the Fund.

● *Cash Transaction Risk*. The Fund expects to effect some of its redemptions for cash rather than in-kind securities. Redemptions of creation units that are made with cash, rather than through in-kind delivery of portfolio securities cause the Fund to incur additional costs including brokerage costs and taxable capital gains or losses that the Fund may not have incurred if the Fund had made redemptions in-kind.

**Focused Portfolio Risk.** The Fund may have more volatility and is considered to have more risk than a fund that invests in securities of a greater number of issuers because changes in the value of a single issuer's security may have a more significant effect, either positive or negative, on the Fund's NAV.

**Management Risk.** The Adviser's judgments about the attractiveness, value, and potential appreciation of a particular asset class or individual security in which the Fund invests may prove to be incorrect, and there is no guarantee that individual companies will perform as anticipated. The value of an individual company can be more volatile than the market as a whole, and the Adviser's intrinsic value-oriented approach may fail to produce the intended results.

**Market Risk.** The value of the Fund's investments may decrease, sometimes rapidly or unexpectedly, due to factors affecting an issuer held by the Fund, particular industries or overall securities markets. When the value of the Fund's investments goes down, your investment in the Fund decreases in value. A variety of factors, including interest rate levels, recessions, inflation, U.S. economic growth, war or acts of terrorism, natural disasters, political events, supply chain disruptions, trade barriers, staff shortages, and widespread public health issues affect the securities markets. These events may cause volatility, severe market dislocations and liquidity constraints in many markets, including markets for the securities the Fund holds, and may adversely affect the Fund's investments and operations. In addition, governmental responses to these events may negatively impact the capabilities of the Fund's service providers, disrupt the Fund's operations, result in substantial market volatility, and adversely impact the prices and liquidity of the Fund's investments.

**Sector Emphasis Risk.** The Fund, from time to time, may invest 25% or more of its assets in one or more sectors, subjecting the Fund to sector emphasis risk. The Fund is subject to a greater risk of loss due to adverse economic, business, or other developments affecting a specific sector in which the Fund has a focused position, than if its investments were diversified across a greater number of industry sectors. Some sectors possess particular risks that may not affect other sectors.

---

| | |
|:---|:---|
| **2** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

---

---

| | |
|:---|:---|
| **Diamond Hill Large Cap Concentrated ETF Summary** | As of February 28, 2026 |

---

**Performance** 

On September 26, 2025, the Diamond Hill Large Cap Concentrated Fund (the "Predecessor Fund"), a mutual fund with substantially similar investment objectives, policies, and restrictions to the Fund, was reorganized into the Fund (the "Reorganization"). Prior to the Reorganization, the Fund had not yet commenced operations. The performance provided in the bar chart and table for periods prior to September 26, 2025 is that of the Predecessor Fund's Class Y shares. The bar chart and performance table below show the variability of the Fund's and the Predecessor Fund's returns, which is some indication of the risks of investing in the Fund by comparing the Fund's investment returns with a broad-based securities market index and two supplemental indexes. The bar chart shows performance of the Fund and Predecessor Fund's Class Y shares for each calendar year since the Predecessor Fund's inception. Had the Predecessor Fund been structured as an ETF, its performance may have differed. Of course, the Fund's past performance is not necessarily an indication of the Fund's future performance. *Updated performance information for the Fund will be available at no cost by visiting www.diamond-hill.com or by calling 888-226-5595.*

**CLASS Y ANNUAL TOTAL RETURN-YEARS ENDED 12/31** 

---

| | |
|:---|:---|
| **Best Quarter:** | 4Q 2023, +12.51% |
| **Worst Quarter:** | 2Q 2022, -15.46% |

---

**AVERAGE ANNUAL TOTAL RETURNS AS OF 12/31/25** 

The following table shows the average total returns on an investment in the Fund and/or Class Y shares of the Predecessor Fund compared to the market indices for the one-year and since inception periods ended December 31, 2025. After-tax returns are calculated using the highest historical individual federal marginal income tax rate and do not reflect the impact of state and local taxes. Actual after-tax returns depend on a shareholder's tax situation and may differ from those shown. After-tax returns are not relevant for shareholders who hold Fund shares in tax-deferred accounts or to shares held by non-taxable entities.

---

| | | | |
|:---|:---|:---|:---|
| | **Inception <br> Date of <br> Class** | **One Year** | **Since<br> Inception** |
| **Class Y** Before Taxes | 2/26/21 | 8.97%  | 9.40% |
| &nbsp;&nbsp;&nbsp;After Taxes on Distributions |  | 7.79 | 8.56 |
| &nbsp;&nbsp;&nbsp;After Taxes on Distributions and Sale of Fund Shares |  | 6.13 | 7.35 |
| Russell 3000<sup>®</sup> Index |  | 17.15 | 12.99 |
| Russell 1000<sup>®</sup> Value Index |  | 15.91 | 10.60 |
| Russell 1000<sup>®</sup> Index |  | 17.37 | 13.61 |

---

The Fund's broad-based securities market index is the Russell 3000<sup>®</sup> Index, which measures the performance of roughly 3,000 of the largest U.S. companies based on total market capitalization.

The Russell 1000<sup>®</sup> Value Index represents the index of securities that is utilized by the Adviser for measuring performance. The Russell 1000<sup>®</sup> Value Index and the Russell 1000<sup>®</sup> Index represent indexes of securities that reflect the market sectors in which the Fund may invest.

The Russell 1000<sup>®</sup> Value Index measures the performance of U.S. large-cap companies with lower price/book ratios and forecasted growth values. The Russell 1000<sup>®</sup> Index measures the performance of roughly 1,000 U.S. large-cap companies.

The indexes are unmanaged, market capitalization weighted, include net reinvested dividends, do not reflect fees or expenses (which would lower the return), and are not available for direct investment.

**Portfolio Management** 

**Investment Adviser** Diamond Hill Capital Management, Inc.

**Portfolio Manager** Austin Hawley

Portfolio Manager

since 09/2025 for the Fund and since 02/2021 for the Predecessor Fund

**Buying and Selling Fund Shares** 

Shares are listed on the Exchange and individual shares may be bought and sold only in the secondary market through brokers at market prices, rather than at NAV. Because shares trade at market prices rather than at NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount).

The Fund issues and redeems shares at NAV only in Creation Units, which only Authorized Participants (typically, broker-dealers) may purchase or redeem. The Fund generally issues and redeems Creation Units in exchange for a portfolio of securities and/or a designated amount of U.S. cash. To the extent the Fund's Creation Units are issued or redeemed for cash, the Fund may incur transaction and other costs, and/or capital gains, which may or may not be offset, in whole or in part, by a transaction fee paid by an Authorized Participant.

**DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM**<sub>3</sub>

---

| | |
|:---|:---|
| **Diamond Hill Large Cap Concentrated ETF Summary** | As of February 28, 2026 |

---

Investors may incur costs attributable to the difference between the highest price a buyer is willing to pay to purchase shares (bid) and the lowest price a seller is willing to accept for shares (ask) when buying or selling shares in the secondary market (the bid-ask spread). Information on the Fund's NAV, market price, premiums, discounts and bid-asks spreads is available on the Fund's website at www.diamond-hill.com.

**Dividends, Capital Gains and Taxes** 

The Fund's distributions may be taxable as ordinary income or capital gains, except when your investment is in an individual retirement account ("IRA"), 401(k) or other tax-advantaged investment plan. However, you may be subject to tax when you withdraw monies from a tax-advantaged plan.

**Payments to Broker-Dealers and Other Financial Intermediaries** 

If you purchase shares through a broker-dealer or other financial intermediary (such as a bank), the Adviser and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary's web site for more information.

---

| | |
|:---|:---|
| **4** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

---

**Fund Details**<br>

**Additional Information About Investment Strategies and Related Risks** 

**Securities Lending** 

To generate additional income, the Fund may lend its portfolio securities to financial institutions, meaning that a significant portion of the Fund could be on loan at any given time. Cash collateral from borrowers is invested in a registered investment company managed by State Street Investment Management (the "State Street Fund") that was established solely to hold securities lending collateral. The Fund and certain other funds managed by the Adviser are the only investors in the State Street Fund and own all its shares. While this practice will not impact the Fund's principal investment strategy, it does subject the Fund to the securities lending risk described in the Investment Risks section below. Any expenses associated with securities lending are not reflected in the fee table for the Fund.

**Equity Securities** 

The Fund will invest primarily in equity securities. Although not a principal strategy, the Fund's investment in equity securities may also include, in addition to common and preferred stock, rights and warrants, and American Depositary Receipts.

**Investment Strategy** 

The Fund, under normal market conditions, invests at least 80% of its net assets in U.S. equity securities with large market capitalizations that the Adviser believes are undervalued. This is a non-fundamental investment policy that can be changed by the Diamond Hill Funds (the "Trust") Board of Trustees (the "Board") upon sixty (60) days' prior notice to shareholders.

**Investment Risks** 

The main risks associated with investing in the Fund are described below and in the Fund Summary at the front of this prospectus. All of the risks listed below are significant to the Fund, regardless of the order in which they appear.

**Main Risks** 

**Authorized Participant Risk.** Only an Authorized Participant that has entered into a contractual arrangement with the Fund's distributor may engage in creation or redemption transactions directly with the Fund. The Fund's distributor has entered into contracts with only a limited number of institutions that may act as Authorized Participants on an agency basis (i.e., on behalf of other market participants). To the extent that Authorized Participants exit the business or are unable to proceed with creation or redemption orders with respect to the Fund and no other Authorized Participant is able to step forward to create or redeem Creation Units, shares may be more likely to trade at a premium or discount to NAV and possibly face trading halts or delisting. Authorized Participant concentration risk may be heightened for ETFs that invest in non-U.S. securities or other securities or instruments that have lower trading volumes.

**Current Market Environment Risk.** Various sectors of the financial markets may experience an extended period of adverse conditions. Market uncertainty can increase dramatically, and these conditions may result in disruptions of the equity markets, periods of reduced liquidity, greater general volatility, and a contraction of availability of credit and lack of price transparency.

**ETF Structure Risk.** The Fund is an ETF, and, as a result of its structure, is exposed to the following risks:

● *Concentration of Primary Market Participants.* The Fund may have a limited number of financial institutions that may act as Authorized Participants. In addition, there may be a limited number of market makers and/or liquidity providers in the marketplace. To the extent either of the following events occur, shares may trade at a material discount to NAV and possibly face delisting: (i) Authorized Participants exit the business or otherwise become unable to process creation and/or redemption orders and no other Authorized Participants step forward to perform these services, or (ii) market makers and/or liquidity providers exit the business or significantly reduce their business activities and no other entities step forward to perform their functions.

● *Costs of Buying or Selling Shares.* Due to the costs of buying or selling shares, including brokerage commissions imposed by brokers and bid-ask spreads, frequent trading of shares may significantly reduce investment results and an investment in shares may not be advisable for investors who anticipate regularly making small investments.

● *Shares May Trade at Prices Other Than NAV.* As with all ETFs, shares may be bought and sold in the secondary market at market prices. As a result, there may be times when the market price of shares is more than the NAV intra-day (premium) or less than the NAV intra-day (discount) due to supply and demand of shares or during periods of market volatility. This risk is heightened in times of market volatility, periods of steep market declines, and periods when there is limited trading activity for shares in the secondary market, in which case such premiums or discounts may be significant.

● *Secondary Market Trading Risk.* Although shares are listed for trading on the Exchange and may be traded on U.S. exchanges other than the Exchange, there can be no assurance that shares will trade with any volume, or at all, on any stock exchange. In stressed market conditions, the liquidity of shares may begin to mirror the liquidity of the Fund's underlying portfolio holdings, which can be significantly less liquid than shares, and this could lead to differences between the market price of the shares and the underlying value of those shares.

Investors buying or selling shares in the secondary market may incur costs attributable to the difference between the highest price a buyer is willing to pay to purchase shares (bid) and the lowest price a seller is willing to accept for shares (ask) when buying or selling shares in the secondary market, which is often referred to as the bid-ask spread. If a trading halt occurs, a shareholder may temporarily be unable to purchase or sell shares of the Fund. The bid-ask spread, which varies over time, is generally narrower if the Fund has more trading volume and market liquidity and wider if the Fund has less trading volume and market liquidity. Trading in Fund shares may be halted due to market conditions or for reasons that, in the view of the Exchange, make

**DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM**<sub>5</sub>

**Fund Details**<br>

trading in shares inadvisable. In addition, trading in shares is subject to trading halts caused by extraordinary market volatility pursuant to Exchange "circuit breaker" rules. There can be no assurance that the requirements of the Exchange necessary to maintain the listing of the Fund will continue to be met or will remain unchanged or that the shares will trade with any volume, or at all.

In addition, shares of the Fund, similar to shares of other issuers listed on a stock exchange, may be sold short; and therefore, are subject to the risk of increased volatility and price decreases associated with being sold short. Trading activity in derivative products based on the Fund may lead to increased trading volume and volatility in the secondary market for the shares of the Fund.

● *Cash Transaction Risk.* The Fund expects to effect some of its redemptions for cash rather than in-kind securities. Redemptions of creation units that are made with cash, rather than through in-kind delivery of portfolio securities cause the Fund to incur additional costs including brokerage costs and taxable capital gains or losses that the Fund may not have incurred if the Fund had made redemptions in-kind.

**Focused Portfolio Risk.** The Fund may have more volatility and is considered to have more risk than funds that invest in securities of a greater number of issuers because changes in the value of a single issuer's security may have a more significant effect, either positive or negative, on the Fund's NAV.

**Management Risk.** The Adviser's judgments about the attractiveness, value, and potential appreciation of a particular asset class or individual security in which the Fund invests may prove to be incorrect and there is no guarantee that individual investments will perform as anticipated. The value of an individual company can be more volatile than the market as a whole, and the Adviser's intrinsic value-oriented approach may fail to produce the intended results.

**Market Risk.** The value of the Fund's investments may decrease, sometimes rapidly or unexpectedly, due to factors affecting an issuer held by the Fund, particular industries or overall securities markets. When the value of the Fund's investments goes down, your investment in the Fund decreases in value. A variety of factors, including interest rate levels, recessions, inflation, U.S. economic growth, war or acts of terrorism, natural disasters, political events and tensions that disrupt international relations, supply chain disruptions, trade barriers, staff shortages, and widespread public health issues affect the securities markets. Pandemics may result in significant disruptions to economies and markets, adversely impacting individual companies, sectors, industries, currencies, interest and inflation rates, credit ratings, and investor sentiment, adversely impacting the prices and liquidity of the Fund's investments.

**Sector Emphasis Risk.** The Fund, from time to time, may invest 25% or more of its assets in one or more sectors, subjecting the Fund to sector emphasis risk. This risk is that the Fund is subject to a greater risk of loss as a result of adverse economic, business or other developments affecting a specific sector in which the Fund has a focused position, than

if its investments were diversified across a greater number of financial sectors. Some sectors possess particular risks that may not affect other sectors.

**Additional Risks** 

**General Risks.** All ETFs carry a certain amount of risk. You may lose money on your investment in the Fund. The Fund is subject to management risk because it is an actively managed Fund. The Fund may not achieve its objective if the Adviser's expectations regarding particular securities or markets are not met.

**Cybersecurity Risk.** The computer systems, networks, and devices used by the Fund and its service providers to carry out routine business operations employ a variety of protections designed to prevent damage or interruption from computer viruses, network failures, computer and telecommunication failures, infiltration by unauthorized persons and security breaches. Despite the various protections utilized by the Fund and its service providers, systems, networks, or devices potentially can be breached due to both intentional and unintentional events. The Fund and its shareholders could be negatively impacted as a result of a cybersecurity breach. Similar adverse consequences could result from cybersecurity breaches affecting issuers of securities in which the Fund invests; counterparties with which the Fund engage in transactions; governmental and other regulatory authorities; exchange and other financial market operators, banks, brokers, dealers, insurance companies, and other financial institutions (including financial intermediaries and service providers for the Fund's shareholders); and other parties.

Cybersecurity breaches can include unauthorized access to systems, networks, or devices; infection from computer viruses or other malicious software code; ransomware; and attacks that shut down, disable, slow, or otherwise disrupt operations, business processes, or website access or functionality. Cybersecurity breaches may cause disruptions and impact the Fund's business operations, potentially resulting in financial losses; may negatively impact the financial condition of an issuer, counterparty or other market participant; interference with the Fund's ability to calculate its NAV; impediments to trading; the inability of the Fund, the Adviser, and other service providers to transact business; violations of applicable privacy and other laws; regulatory fines, penalties, reputational damage, reimbursement or other compensation costs, or additional compliance costs; as well as the inadvertent release of confidential information.

In addition, substantial costs may be incurred by these entities in order to prevent any cybersecurity breaches in the future. Neither the Fund or the Adviser control the cybersecurity systems of issuers or third-party service providers.

**Investment Company and ETF Risk.** The Fund may invest in shares of other investment companies or ETFs. Shareholders will indirectly bear fees and expenses charged by the underlying investment companies in which the Fund invests in addition to the Fund's direct fees and expenses. The Fund also will incur brokerage costs when it purchases ETFs and closed-end funds. In addition, the Fund will be subject to the risks associated with the investment company or ETF's investments.

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| **6** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

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**Fund Details**<br>

With respect to ETFs that track an index, the price movement of the ETF's shares may not track the underlying index and may result in a loss. The closed-end investment company or ETF may trade at a price above (premium) or below (discount) their NAV, especially during periods of significant volatility or stress, causing investors to pay significantly more or less than the value of the ETF's underlying portfolio. Furthermore, investments in other funds could affect the timing, amount and character of distributions to shareholders and therefore may increase the amount of taxes payable by investors in the Fund.

**Securities Lending Risk.** To generate additional income, the Fund may lend its portfolio securities to financial institutions under guidelines adopted by the Board, including a requirement that the Fund receives cash or securities issued by the U.S. government or its agencies or instrumentalities as collateral from the borrower equal to no less than 100% of the market value of the securities loaned. The Fund may invest the cash collateral in high quality short-term debt obligations, government obligations, bank guarantees, or money market mutual funds. Securities lending involves two primary risks: "investment risk" and "borrower default risk." Investment risk is the risk that the Fund will lose money from the securities received as collateral or the investment of the cash collateral. Borrower default risk is the risk that the Fund will lose money due to the failure of a borrower to return a borrowed security in a timely manner.

**Temporary Strategies** 

From time to time, the Fund may take temporary defensive positions that are inconsistent with the Fund's principal investment strategies, in attempting to respond to adverse market, economic, political, or other conditions. During these times, the Fund may invest up to 100% of its assets in cash and cash equivalents. For example, the Fund may hold all or a portion of its assets in money market instruments (high quality income securities with maturities of less than one year), securities of money market funds or U.S. Government repurchase agreements. The Fund may also invest in such investments at any time to maintain liquidity or pending selection of investments in accordance with its policies. These investments may prevent the Fund from achieving its investment objective. If the Fund acquires securities of money market funds, the shareholders of the Fund will be subject to duplicative management fees and other expenses.

**Portfolio Holdings Disclosure** 

Information about the Fund's daily portfolio holdings is available at www.diamond-hill.com. A complete description of the Fund's policies and procedures with respect to the disclosure of the Fund's portfolio holdings is available in the Fund's Statement of Additional Information (the "SAI").

**Management of the Fund** 

Diamond Hill Capital Management, Inc., 325 John H. McConnell Boulevard, Suite 200, Columbus, Ohio 43215, manages the day-to-day investment decisions of the Fund and continuously reviews, supervises and administers the Fund's investment programs. The Adviser has been an investment

adviser to individuals, pension and profit sharing plans, trusts, corporations and other institutions since June 2, 1988. As of December 31, 2025, the Adviser managed approximately $29.4 billion in assets.

Pursuant to the investment management agreement between the Adviser and the Trust (the "Investment Management Agreement"), the Adviser, subject to the supervision of the Board and in conformity with the stated objective and policies of the Fund, manages both the investment operations of the Fund and the composition of the Fund's portfolios, including the purchase, retention, and disposition of securities. In connection therewith, the Adviser is obligated to keep certain books and records of the Fund. The Adviser also administers the corporate affairs of the Fund, and in connection therewith, furnishes the Fund with office facilities, together with those ordinary clerical and bookkeeping services which are not being furnished by the Fund's custodian and transfer agent, and the Fund's sub-administrator and sub-fund accountant. The management services of the Adviser are not exclusive under the terms of the Investment Management Agreement, and the Adviser is free to, and does, render management services to others.

Disclosure regarding the basis for the Board's approval of the Investment Management Agreement between the Adviser and the Trust, on behalf of the Fund, is available in the Fund's financial statements filed on Form N-CSR for the fiscal year ended December 31, 2025.

The Fund is authorized to pay the Adviser an annual fee as set forth below:

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| **Fund** | **Percentage of <br> Average Daily <br> Net Assets** |
| Large Cap Concentrated ETF | 0.50% |

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**Portfolio Manager** 

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| | |
|:---|:---|
| **Fund** | **Portfolio Manager** |
| Large Cap Concentrated ETF | Austin Hawley |

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The Portfolio Manager holds ultimate responsibility and accountability for the investment results of the portfolios and have full authority to make all investment decisions.

**Mr. Hawley** has a Bachelor of Arts degree in History (cum laude) from Dartmouth College, a Masters degree in Business Administration (with distinction) from Tuck School of Business at Dartmouth College, and he holds the CFA designation. He has been an investment professional with the Adviser since August 2008. Mr. Hawley currently serves as a Portfolio Manager for the Adviser. From July 1999 to July 2002, Mr. Hawley was an Investment Associate at Putnam Investments. He was an Equity Analyst at Putnam Investments from July 2004 to July 2008.

The SAI provides additional information about the portfolio manager's compensation structure, other managed accounts and ownership of securities in managed Fund(s).

**DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM**<sub>7</sub>

**Shareholder Information**<br>

**Pricing Your Shares** 

All investors, including retail investors and Authorized Participants buy and sell shares in secondary market transactions through brokers at market price.

Only Authorized Participants may buy and redeem shares from the Fund directly and those transactions are effected at the Fund's NAV. The NAV is calculated at the close of trading (normally 4:00 p.m., Eastern time) on each day the New York Stock Exchange ("NYSE") is open for business. The NAV is calculated by dividing the value of the Fund's total assets (including interest and dividends accrued but not yet received), minus liabilities (including accrued expenses), by the total number of shares outstanding. The market value of the Fund's investments is determined primarily on the basis of readily available market quotations.

If market quotations are not readily available or if available market quotations are determined not to be reliable or if a security's value has been materially affected by events occurring after the close of trading on the NYSE or market on which the security is principally traded (for example, a natural disaster affecting an entire country or region, or an event that affects an individual company), but before the Fund's NAV is calculated, that security may be valued at its fair value in accordance with policies and procedures adopted by the Board. Without a fair value price, short term traders could take advantage of the arbitrage opportunity and dilute the NAV of long-term investors. To the extent that the Fund invests in securities that are primarily listed on markets that trade on weekends or other days when the Fund is closed, the value of the Fund's shares may change on days when you will not be able to purchase or sell your shares. Fair valuation involves subjective judgments and it is possible that the fair value determined for a security may differ materially from the value that could be realized upon the sale of the security.

**How to Buy and Sell Shares** 

Most investors will buy and sell shares in secondary market transactions through brokers and, therefore, must have a brokerage account to buy and sell shares. Shares can be bought or sold through your broker throughout the trading day like shares of any publicly traded issuer. When buying or selling shares through a broker, you will incur customary brokerage commissions and charges, and you may pay some or all of the spread between the bid and the offered prices in the secondary market on each leg of a round trip (purchase and sale) transaction. The price at which you buy or sell shares (i.e., the market price) may be more or less than the NAV of the shares. Unless imposed by your broker, there is no minimum dollar amount you must invest in the Fund and no minimum number of shares you must buy.

Shares are listed for trading on the Exchange under the symbol DHLX. The Exchange is open for trading Monday through Friday and closed on weekends and the following holidays, as observed: New Year's Day, Martin Luther King, Jr. Day, Washington's Birthday, Good Friday, Memorial Day, Juneteenth National Independence Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day.

Only Authorized Participants may buy and redeem shares from the Fund directly and those transactions are made at NAV and only in Creation Units.

A creation transaction, which is subject to acceptance by the distributor and the Fund, generally takes place when an Authorized Participant deposits into the Fund a designated portfolio of securities (including any portion of such securities for which cash may be substituted) and a specified amount of cash, together with a purchase transaction fee, in exchange for a specified number of Creation Units. The composition of such portfolio generally corresponds pro rata to the holdings of the Fund, except in certain circumstances. Similarly, shares can be redeemed only in Creation Units, generally for a designated portfolio of securities (including any portion of such securities for which cash may be substituted) held by the Fund and a specified amount of cash, together with a redemption transaction fee. Except when aggregated in Creation Units, shares are generally not redeemable.

The prices at which creations and redemptions occur are based on the next calculation of NAV after a creation or redemption order is received in an acceptable form under the authorized participant agreement.

The Fund collects standard creation and redemption transaction fees from Authorized Participants to offset transfer and other transaction costs with the issuance and redemptions of Creation Units. The standard creation and redemption transaction fees are described in the SAI.

Share prices are reported in dollars and cents per share. Shares can be bought and sold on the secondary market throughout the trading day like other publicly-traded shares and shares typically trade in blocks of less than a Creation Unit. Shares may only be purchased and sold on the secondary market when the Exchange is open for trading.

**Premium/Discount Information** 

Shares trade in secondary market transactions through brokers at market prices. The market price of shares may be greater than, equal to, or less than NAV. Market forces of supply and demand, economic conditions and other factors may affect the trading prices of shares.

**Book Entry** 

Shares are held in book entry form, which means that no stock certificates are issued. The Depository Trust Company ("DTC") or its nominee is the record owner of all outstanding shares and is recognized as the owner of all shares for all purposes.

Investors owning shares are beneficial owners as shown on the records of DTC or its participants. DTC serves as the securities depository for all shares. Participants in DTC include securities brokers and dealers, banks, trust companies, clearing corporations, and other institutions that directly or indirectly maintain a custodial relationship with DTC. As a beneficial owner of shares, you are not entitled to receive physical delivery of stock certificates or to have shares registered in your name, and you are not considered a registered owner of shares. Therefore, to exercise any right as an owner of shares, you must rely upon the procedures of DTC

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| **8** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

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**Shareholder Information** <br>

and its participants. These procedures are the same as those that apply to any other securities that you hold in book entry or "street name" form.

**Distribution** 

The distributor, Foreside Financial Services, LLC, a wholly owned subsidiary of Foreside Financial Group, LLC (d/b/a ACA Group), is a broker-dealer registered with the Securities and Exchange Commission (the "SEC"). The distributor distributes Creation Units for the Fund on an agency basis and does not maintain a secondary market in Shares. The distributor has no role in determining the policies of the Fund or the securities that are purchased or sold by the Fund.

**Additional Compensation to Financial Intermediaries** 

The Adviser may make payments to financial intermediaries that can be categorized as "service-related" or "distribution-related."

Payments made by the Adviser to financial intermediaries to compensate or reimburse them for administrative or other client services provided, such as sub-transfer agency services for shareholders or retirement plan participants, omnibus accounting or sub-accounting, participation in networking arrangements, record keeping and other shareholder services are categorized as "servicing related." Payments made pursuant to such agreements generally are based on either (i) a percentage of the average daily net assets of clients serviced by such financial intermediaries, or (ii) the number of accounts serviced by such financial intermediary.

Distribution-related payments may be made on the basis of the sales of shares attributable to that intermediary, the average net assets of the Fund and other Diamond Hill Funds attributable to the accounts of that intermediary and its clients, negotiated lump sum payments for distribution services provided, or similar fees.

**Market Timing and Frequent Trading Policy** 

The Fund imposes no restrictions on the frequency of purchases and redemptions of shares. In determining not to approve a written, established policy, the Board evaluated the risks of market timing activities by Fund shareholders. Purchases and redemptions by Authorized Participants, who are the only parties that may purchase or redeem shares directly with the Fund, are an essential part of the ETF process and help keep share trading prices in line with NAV. As such, the Fund accommodates frequent purchases and redemptions by Authorized Participants. Individual investors may only trade shares the secondary market. Because the secondary market trades do not directly involve the Fund, it is unlikely those trades would cause the harmful effects of market timing, including dilution, disruption of portfolio management, increases in the Fund's trading costs and the realization of capital gains. The Fund also employs fair value pricing and may impose transaction fees on purchases and redemptions of Creation Units to cover the custodial and other costs incurred by the Fund in effecting trades. In addition, the Fund and the Adviser reserve the right to reject any purchase order at any time and to impose restrictions on disruptive or excessive trading in Creation Units.

**Distributions and Taxes** 

Ordinarily, dividends from net investment income, if any, are declared and paid quarterly by the Fund. The Fund distributes its net realized capital gains, if any, to shareholders annually.

Distributions in cash may be reinvested automatically in additional whole shares only if the broker through whom you purchased shares makes such option available. Your broker is responsible for distributing the income and capital gain distributions to you.

**Tax Considerations.** The following information is provided to help you understand the income and capital gains you may earn while you own Fund shares, as well as the federal income taxes you may have to pay. The amount of any distribution varies and there is no guarantee the Fund will pay either income dividends or capital gain distributions. For tax advice about your personal tax situation, please speak with your tax adviser.

The Fund intends to qualify each year as a regulated investment company under the Internal Revenue Code of 1986, as amended. As a regulated investment company, the Fund generally pays no federal income tax on the income and gains distributed to shareholders. The Fund may distribute income dividends and capital gains more frequently, if necessary, in order to reduce or eliminate federal excise or income taxes on the Fund.

Unless your investment in shares is made through a tax-exempt entity or tax-deferred retirement account, such as an IRA, you need to be aware of the possible tax consequences when:

● The Fund makes distributions,

● You sell your shares listed on the Exchange, and

● You purchase or redeem Creation Units (Authorized Purchasers only).

**Taxes on Distributions.** Distributions from the Fund's net investment income, including net short-term capital gains, if any, are taxable to you as ordinary income, except that the Fund's dividends attributable to its "qualified dividend income" (i.e., dividends received on stock of most domestic and certain foreign corporations with respect to which the Fund satisfies certain holding period and other restrictions), if any, generally are subject to federal income tax for non-corporate shareholders who satisfy those restrictions with respect to their shares at the rate for net capital gain. A part of the Fund's dividends also may be eligible for the dividends-received deduction allowed to corporations -- the eligible portion may not exceed the aggregate dividends the Fund receives from domestic corporations subject to federal income tax (excluding real estate investment trusts) and excludes dividends from foreign corporations -- subject to similar restrictions. However, dividends a corporate shareholder deducts pursuant to that deduction are subject indirectly to the federal alternative minimum tax.

**DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM**<sub>9</sub>

**Shareholder Information** <br>

In general, your distributions are subject to federal income tax when they are paid, whether you take them in cash or reinvest them in the Fund (if that option is available). Distributions of net long-term capital gains, if any, in excess of net short-term capital losses are taxable as long-term capital gains, regardless of how long you have held shares. If you invest in the Fund shortly before it makes a distribution, some of your investment may be returned to you in the form of a taxable distribution. This is commonly known as "buying a dividend".

Distributions in excess of the Fund's current and accumulated earnings and profits are treated as a tax-free return of capital to the extent of your basis in shares and as capital gain thereafter. A distribution will reduce the Fund's NAV per share and may be taxable to you as ordinary income or capital gain (as described above) even though, from an investment standpoint, the distribution may constitute a return of capital.

No dividend reinvestment service is provided by the Trust. Broker-dealers may make the DTC book-entry Dividend Reinvestment Program available to beneficial owners of Fund shares for the reinvestment of distributions. Beneficial owners should contact their broker to determine the availability and costs of the service and the details of participation.

**Taxes on the Sale of Exchange-Listed Shares.** Any capital gain or loss realized upon a sale of shares is generally treated as long-term capital gain or loss if the shares have been held for more than one year and as short-term capital gain or loss if the shares have been held for one year or less. The ability to deduct capital losses from sales of shares may be limited.

**Taxes on Purchase and Redemption of Creation Units.** An Authorized Participant who exchanges securities for Creation Units generally will recognize a gain or a loss equal to the difference between the market value of the Creation Units at the time of the exchange and the sum of the exchanger's aggregate basis in the securities surrendered plus any cash component it pays. An Authorized Participant who exchanges Creation Units for securities will generally recognize a gain or loss equal to the difference between the exchanger's basis in the Creation Units and the sum of the aggregate market value of the securities received plus any cash equal to the difference between the NAV of the shares being redeemed and the value of the securities. The Internal Revenue Service ("IRS"), however, may assert that a loss realized upon an exchange of securities for Creation Units cannot be deducted currently under the rules governing "wash sales" or for other reasons. Persons exchanging securities should consult their own tax advisor with respect to whether wash sale rules apply and when a loss might be deductible.

Any capital gain or loss realized upon redemption of Creation Units is generally treated as long-term capital gain or loss if the shares have been held for more than one year and as short-term capital gain or loss if the shares have been held for one year or less.

If an Authorized Participant purchases or redeems Creation Units, the Authorized Participant will be sent a confirmation statement showing how many shares it purchased or sold and at what price. See "Taxes" in the SAI for a description of the

requirement regarding basis determination methods applicable to share redemptions and the Fund's obligation to report basis information to the IRS.

**Tax Status for Retirement Plans and Other Tax-Deferred Accounts.** When you invest in the Fund through a qualified employee benefit plan, retirement plan or some other tax-deferred account, dividend and capital gain distributions generally are not subject to current federal income taxes. In general, these plans or accounts are governed by complex tax rules. You should ask your tax adviser or plan administrator for more information about your tax situation, including possible state or local taxes.

**Backup Withholding.** By law, you may be subject to backup withholding on a portion of your taxable distributions and redemption proceeds unless you provide your correct Social Security or taxpayer identification number and certify that: (1) this number is correct, (2) you are not subject to backup withholding, and (3) you are a U.S. person (including a U.S. resident alien). You may also be subject to withholding if the IRS instructs us to withhold a portion of your distributions and proceeds. When withholding is required, the amount is 24% of any distributions or proceeds paid.

This discussion of "Distributions and Taxes" is not intended or written to be used as tax advice. Because everyone's tax situation is unique, you should consult your tax professional about federal, state, local or non-U.S. tax consequences before making an investment in the Fund.

**Householding** 

Householding is an option available to certain investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of the Fund's prospectus and each annual and semi-annual report can be delivered to investors who share the same address, even if their accounts are registered under different names. Householding is available through certain broker-dealers. If you wish to receive individual copies of these documents, please contact your broker-dealer. If you are currently enrolled in householding and wish to change your householding status, please contact your broker-dealer.

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| **10** | **DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM** |

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**Financial Highlights**<br>

The financial highlights tables are intended to help you understand the Fund's and Predecessor Fund's (Class Y) financial performance for the periods shown. Certain information reflects financial results for a single Predecessor Fund Class Y share. The total returns in the tables reflect the rates an investment in the Fund would have earned (or lost), assuming reinvestment of all dividends and distributions. The following information for the fiscal years ended December 31 has been derived from the Fund's and Predecessor Fund's financial statements, which have been audited by Cohen & Company, Ltd. ("Cohen"), the Fund's independent registered public accounting firm. Cohen's report, along with the Fund's audited financial statements, is included in the SAI, which is available upon request.

Per Share Data for a Share Outstanding Throughout Each Period:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2025** | **Year Ended <br> December 31, <br> 2024** | **Year Ended <br> December 31, <br> 2023** | **Year Ended <br> December 31, <br> 2022** | **Period Ended <br> December 31, <br> 2021<sup>(A)</sup>** |
| **Net asset value at beginning of period**  | $12.73 | $11.90 | $10.29 | $11.92 | $10.00 |
| **Income (loss) from investment operations:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income <sup>(B)</sup> | 0.16 | 0.21 | 0.17 | 0.14 | 0.09 |
| &nbsp;&nbsp;&nbsp;Net realized and unrealized gains (losses) on investments  | 0.97 | 1.51 | 1.61 | (1.64) | 2.01 |
| **Total from investment operations**  | 1.13 | 1.72 | 1.78 | (1.50) | 2.10 |
| **Variable transaction fees <sup>(B)</sup>** |  |  |  |  |  |
| **Less distributions to shareholders from:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income  | (0.16) | (0.19) | (0.17) | (0.13) | (0.08) |
| &nbsp;&nbsp;&nbsp;Net realized gains  | (0.46) | (0.70) |  |  | (0.10) |
| **Total distributions from shareholders**  | (0.62) | (0.89) | (0.17) | (0.13) | (0.18) |
| **Net asset value at end of period**  | $13.24 | $12.73 | $11.90 | $10.29 | $11.92 |
| **Market price at end of period**  | $13.25 | $12.73 | $11.90 | $10.29 | $11.92 |
| **Total return <sup>(C)</sup>**  | 8.97% | 14.34% | 17.32% | (12.62%) | 20.98 %<sup>(D)</sup> |
| **Total return at market <sup>(E)</sup>**  | 1.22 %<sup>(D)(F)</sup> | N/A | N/A | N/A | N/A |
| **Net assets at end of period (000's)**  | $61936 | $19164 | $16706 | $14017 | $15898 |
| **Ratios/supplementary data:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Ratio of total expenses to average net assets  | 0.57% | 0.55% | 0.56% | 0.56% | 0.55 %<sup>(G)</sup> |
| &nbsp;&nbsp;&nbsp;Ratio of net investment income to average net assets  | 1.22% | 1.60% | 1.57% | 1.32% | 1.00 %<sup>(G)</sup> |
| &nbsp;&nbsp;&nbsp;Portfolio turnover rate <sup>(H)</sup>  | 56% | 40% | 34% | 41% | 18 %<sup>(D)</sup> |

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<sup>(A)</sup> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inception date of the Fund is February 26, 2021. Fund commenced public offering on May 3, 2021.

<sup>(B)</sup> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Per share net investment income and variable transaction fees have been calculated using the average daily shares outstanding during the period.

<sup>(C)</sup> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, if any, and redemption on the last day of the period at net asset value. This percentage is not an indication of the performance of a shareholder's investment in the Fund based on market value due to differences between the market price of the shares and the net asset value per share of the Fund. 

<sup>(D)</sup> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not annualized.

<sup>(E)</sup> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, if any, and redemption on the last day of the period at market value. Market value is determined by the composite closing price. Composite closing security price is defined as the last reported sale price from any primary listing market (e.g., NYSE Arca, Inc.) or participating regional exchanges or markets. The composite closing price is the last reported sale price from any of the eligible sources, regardless of volume and not an average price and may have occurred on a date prior to the close of the reporting period. Market value may be greater or less than net asset value, depending on the Fund's closing price on the listing market.

<sup>(F)</sup> Based on the commencement of the ETF through December 31, 2025.

<sup>(G)</sup> Annualized.

<sup>(H)</sup> Portfolio turnover rate excludes securities received or delivered from in-kind processing of creations or redemptions.

**DIAMOND HILL FUNDS \| PROSPECTUS \| FEBRUARY 28, 2026 \| DIAMOND-HILL.COM**<sub>11</sub>

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|:---|:---|
| **Investment Adviser** <br> Diamond Hill Capital Management, Inc.<br> 325 John H. McConnell Boulevard, Suite 200 <br> Columbus, Ohio 43215 <br>**Custodian and Transfer Agent** <br> State Street Bank and Trust Company <br> One Congress Street<br> Suite 1<br> Boston, MA 02114 <br>**Independent Registered Public Accounting Firm**<br> Cohen & Company, Ltd. <br> 1350 Euclid Ave., Suite 800<br> Cleveland, Ohio 44115 <br>**Legal Counsel**<br> Thompson Hine LLP<br> 41 South High Street, Suite 1700<br> Columbus, Ohio 43215-6101 <br>**Distributor**<br> Foreside Financial Services, LLC <br> 190 Middle Street, Suite 301 <br> Portland, ME 04101 <br>**For Additional Information, call**<br> Diamond Hill Large Cap Concentrated ETF<br> Toll Free 855-255-8955 <br>| **To Learn More** <br>Several additional sources of information are available to you. The SAI, incorporated into this prospectus by reference, contains detailed information on the Fund's policies and operations. Additional information about the Fund's investments is available in the Fund's annual and semi-annual reports to shareholders and in Form N-CSR. In the Fund's annual report, you will find a discussion of investment strategies that significantly affected the Fund's performance during its last fiscal year. In Form N-CSR, you will find the Fund's annual and semi-annual financial statements. <br>Call the Fund at 855-255-8955 between the hours of 8:00 a.m. and 5:00 p.m. Eastern Time on days the Fund is open for business to request free copies of the financial statements, the SAI, the Fund's annual and semi-annual reports, to request other information about the Fund and to make shareholder inquiries. On days when the Exchange closes early, the call center hours will be reduced accordingly. <br>The Fund's financial statements and additional information, the SAI, and the annual and semi-annual reports to shareholders are also available, free of charge, on the Fund's Internet site at www.diamond-hill.com/documents. <br>You may obtain reports and other information about the Fund on the EDGAR Database on the SEC's Internet site at http://www.sec.gov, and copies of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov. <br>Investment Company Act #811-08061 <br>STATPRO LCC ETF 022826 |

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**Statement of Additional Information**

**February 28, 2026**

**Diamond Hill Large Cap Concentrated ETF** 

**DHLX**

**NYSE Arca, Inc. (the "Exchange")**

**(A Fund or Series of Diamond Hill Funds)**

This Statement of Additional Information ("SAI") is not a prospectus. It should be read in conjunction with the Prospectus dated February 28, 2026. The Fund's Prospectus is incorporated by reference into this SAI. A free copy of the Prospectus can be obtained by writing to the Fund's sub-fund accounting agent at P.O. Box 46707, Cincinnati, OH 45246 or by calling 888-226-5595. You may also obtain a copy of the Prospectus, the financial statements and additional information or annual reports by visiting www.diamond-hill.com/documents.

**<u>**TABLE OF CONTENTS**</u>**

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| | |
|:---|:---|
|  | **PAGE** |
| **DESCRIPTION OF THE TRUST** | [**3**](#SAI-LCC_1) |
| **ADDITIONAL INFORMATION ABOUT FUND INVESTMENTS AND RISK CONSIDERATIONS** | [**4**](#SAI-LCC_2) |
| **INVESTMENT LIMITATIONS** | [**10**](#SAI-LCC_3) |
| **THE INVESTMENT ADVISER** | [**11**](#SAI-LCC_4) |
| **TRUSTEES AND OFFICERS** | [**15**](#SAI-LCC_5) |
| **OTHER INFORMATION CONCERNING THE BOARD OF TRUSTEES** | [**19**](#SAI-LCC_6) |
| **CONTINUOUS OFFERING** | [**21**](#SAI-LCC_7) |
| **PORTFOLIO TRANSACTIONS AND BROKERAGE** | [**23**](#SAI-LCC_8) |
| **PAYMENTS TO FINANCIAL INTERMEDIARIES** | [**25**](#SAI-LCC_9) |
| **DETERMINATION OF SHARE PRICE** | [**26**](#SAI-LCC_10) |
| **HOW TO BUY AND SELL SHARES** | [**26**](#SAI-LCC_11) |
| **TAXES** | [**34**](#SAI-LCC_12) |
| **CUSTODIAN AND TRANSFER AGENT** | [**36**](#SAI-LCC_13) |
| **SUB-FUND ACCOUNTING AGENT** | [**36**](#SAI-LCC_14) |
| **INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** | [**37**](#SAI-LCC_15) |
| **DISTRIBUTOR** | [**37**](#SAI-LCC_16) |
| **SECURITIES LENDING AGENT** | [**37**](#SAI-LCC_17) |
| **PRINCIPAL HOLDERS OF OUTSTANDING SHARES** | [**37**](#SAI-LCC_18) |
| **FINANCIAL STATEMENTS** | [**39**](#SAI-LCC_19) |

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**DESCRIPTION OF THE TRUST**

Diamond Hill Funds (the "Trust") currently offers twelve series of shares, Diamond Hill Small Cap Fund, Diamond Hill Small-Mid Cap Fund, Diamond Hill Mid Cap Fund, Diamond Hill Large Cap Fund, Diamond Hill Large Cap Concentrated ETF (the "Fund"), Diamond Hill Select Fund, Diamond Hill Long-Short Fund, Diamond Hill International Fund, Diamond Hill Short Duration Securitized Bond Fund, Diamond Hill Securitized Total Return Fund, Diamond Hill Core Bond Fund, and Diamond Hill Core Plus Bond Fund (each, a "Diamond Hill Fund" and together, the "Diamond Hill Funds"). The Trust is an open-end investment company of the management type registered under the Investment Company Act of 1940, as amended (the "Company Act"), and was established under the laws of Ohio by a Fourth Amended and Restated Agreement and Declaration of Trust dated May 22, 2025 ("Trust Agreement"), as amended. The Trust Agreement permits the trustees ("Trustees") of the Trust's Board of Trustees ("Board") to issue an unlimited number of shares of beneficial interest of separate series without par value (the "Shares"). This SAI relates only to Fund. The Fund is "non-diversified" as defined in the Company Act, which means it can invest a greater percentage of its assets in any one issuer than a diversified fund.

On September 26, 2025, the Diamond Hill Large Cap Concentrated Fund (the "Predecessor Fund") reorganized into the Fund and adopted the prior performance and financial history of the Predecessor Fund, which operated as a mutual fund. The Fund is an exchange-traded fund ("ETF") and not a mutual fund.

Each Share of a Diamond Hill Fund represents an equal proportionate interest in the assets and liabilities belonging to that Diamond Hill Fund with each other Share of that Diamond Hill Fund and is entitled to such dividends and distributions out of income belonging to the Diamond Hill Fund as are declared by the Trustees. The Shares do not have cumulative voting rights or any preemptive or conversion rights, and the Trustees have the authority from time to time to divide or combine the Shares of any Diamond Hill Fund into a greater or lesser number of Shares of that Diamond Hill Fund so long as the proportionate beneficial interest in the assets belonging to that Diamond Hill Fund and the rights of Shares of any other Diamond Hill Fund are in no way affected. In case of any liquidation of a Diamond Hill Fund, the holders of Shares of the Diamond Hill Fund being liquidated will be entitled to receive as a class a distribution out of the assets, net of the liabilities, belonging to that Diamond Hill Fund. Expenses attributable to any Diamond Hill Fund are borne by that Diamond Hill Fund. Any general expenses of the Trust not readily identifiable as belonging to a particular Diamond Hill Fund are allocated by, or under the direction of, the Trustees in such manner as the Trustees determine to be fair and equitable. No shareholder is liable for further calls or assessments by the Trust without their consent.

Any Trustee may be removed by vote of the shareholders holding not less than two-thirds of the outstanding Shares of the Trust. The Trust does not hold an annual meeting of shareholders. When matters are submitted to shareholders for a vote, each shareholder is entitled to one vote for each whole Share they own and fractional votes for fractional Shares they own. All Shares of a Diamond Hill Fund have equal voting rights and liquidation rights. The Trust Agreement can be amended by the Trustees, except that any amendment that adversely affects the rights of shareholders must be approved by the shareholders affected. Each Share of a Diamond Hill Fund is subject to redemption at any time if the Board determines in its sole discretion that failure to so redeem may have materially adverse consequences to all or any of a Diamond Hill Fund's shareholders.

The Fund may issue an unlimited number of Shares of beneficial interest. The Fund issues and redeems Shares at net asset value ("NAV") only in aggregations of Shares (each a "Creation Unit"). The Fund issues and redeems Creation Units principally in exchange for a basket of securities (the "Deposit Securities"), together with the deposit of a specified cash payment (the "Cash Component"), plus a transaction fee. The Cash Component is comprised of a "Balancing Amount" as well as any cash in lieu of securities (as described below). The Balancing Amount is equal to the difference between the NAV of the Shares (per Creation Unit) and the market value of the Deposit Securities. If the Balancing Amount is a positive number (i.e., the NAV attributable to a Creation Unit exceeds the market value of the Deposit Securities), the Balancing Amount will be such positive amount. If the Balancing Amount is a negative number (i.e., the NAV attributable to a Creation Unit is less than the market value of the Deposit Securities), the Balancing Amount will be such negative amount, and the creator will be entitled to receive cash from the Fund in an amount equal to the Balancing Amount. The Balancing Amount serves the function of compensating for any differences between the NAV attributable to a Creation Unit and the market value of the Deposit Securities. Shares are listed, subject to notice of issuance, on the Exchange. Shares trade on the Exchange at market prices that may be below, at, or above NAV. In the event of the liquidation of the Fund, a share split, reverse split or the like, the Trust may revise the number of Shares in a Creation Unit.

**Exchange Listing and Trading**

Shares of the Fund are listed for trading, and trade throughout the day, on the Exchange. There can be no assurance that the requirements of the Exchange necessary to maintain the listing of shares of the Fund will continue to be met. The Exchange will consider the suspension of trading and delisting of the Shares of the Fund if: (i) the Exchange becomes aware that the Fund is no longer eligible to operate in reliance on Rule 6c-11 under the Company Act, (ii) following the initial 12-month period after commencement of trading of Fund Shares, there are fewer than 50 beneficial holders of Shares of the Fund, (iii) any other applicable listing requirements set forth in the Exchange's listing rules are not continuously maintained, or (iv) any other event occurs or condition exists that, in the opinion of the Exchange, makes further dealings on the Exchange inadvisable. The Exchange will also remove shares of the Fund from listing and trading upon termination of the Fund or in the event the Fund does not comply with the continued listing standards of the Exchange.

As in the case of other publicly traded securities, when you buy or sell shares of the Fund through a broker, you may incur a brokerage commission determined by that broker, as well as other charges.

**ADDITIONAL INFORMATION ABOUT FUND INVESTMENTS AND RISK CONSIDERATIONS**

This section contains additional information regarding some of the investments the Fund can make and some of the techniques it may use, as well as related risks.

**Borrowings**

The Fund may borrow for temporary purposes and/or for investment purposes. Such a practice will result in leveraging of the Fund's assets and may cause the Fund to liquidate portfolio positions when it would not be advantageous to do so. This borrowing may be secured or unsecured. If the Fund utilizes borrowings, for investment purposes or otherwise, it may pledge up to 33 ⅓% of its total assets to secure such borrowings. Provisions of the Company Act require the Fund to maintain continuous asset coverage (that is, total assets including borrowings, less liabilities exclusive of borrowings) of 300% of the amount borrowed, with an exception for borrowings not in excess of 5% of the Fund's total assets made for temporary administrative or emergency purposes. Any borrowings for temporary administrative purposes in excess of 5% of the Fund's total assets must maintain continuous asset coverage. If the 300% asset coverage should decline as a result of market fluctuations or other reasons, the Fund may be required to sell some of its portfolio holdings within three days to reduce the debt and restore the 300% asset coverage, even though it may be disadvantageous from an investment standpoint to sell securities at that time. Borrowing will tend to exaggerate the effect on NAV of any increase or decrease in the market value of the Fund's portfolio. Money borrowed will be subject to interest costs which may or may not be recovered by appreciation of the securities purchased. The Fund also may be required to maintain minimum average balances in connection with such borrowing or to pay a commitment or other fee to maintain a line of credit; either of these requirements would increase the cost of borrowing over the stated interest rate.

**Investment Company Securities** 

The Fund may invest in securities issued by other investment companies, including various ETFs and closed-end funds, subject to applicable limitations under Section 12(d)(1) of the Company Act. Pursuant to Section 12(d)(1), the Fund may invest in the securities of another investment company (the "acquired company") provided that the Fund, immediately after such purchase or acquisition, does not own in the aggregate: (i) more than 3% of the total outstanding voting stock of the acquired company; (ii) securities issued by the acquired company having an aggregate value in excess of 5% of the value of the total assets of the Fund; or (iii) securities issued by the acquired company and all other investment companies (other than treasury stock of the Fund) having an aggregate value in excess of 10% of the value of the total assets of the Fund. To the extent allowed by law or regulation, the Fund may invest its assets in securities of investment companies that are money market funds in excess of the limits discussed above. Section 12(d)(1) of the Company Act also restricts investments by other registered investment companies in the Fund. However, Rule 12d1-4 under the Company Act permits registered investment companies to acquire securities of another investment company beyond the limits of Section 12(d)(1), subject to certain terms and conditions, including that the registered investment company enter into an agreement with that Fund regarding the terms of the investment.

Securities of other investment companies will be acquired by the Fund to the extent consistent with its investment objective and strategies. As a shareholder of another investment company, the Fund would bear, along with other shareholders, its pro rata portion of the other investment company's expenses, including management fees. These expenses would be in addition to the advisory and other expenses that the Fund bears directly in connection with its own operations. Investing in another investment company will also subject the Fund to the risks associated with the other investment company.

The value of the ETF and closed-end fund shares is set by the transactions on the secondary market and may be higher or lower than the value of the portfolio securities that make up the ETF or closed-end fund. The Fund also will incur brokerage costs when it purchases ETFs and closed-end funds. Furthermore, investments in other funds could affect the timing, amount and character of distributions to shareholders and therefore may increase the amount of taxes payable by investors in the Fund.

**Non-U.S. Investments**

The Fund may only invest in the equity securities of non-U.S. companies by purchasing American Depositary Receipts ("ADRs"), which typically are issued by local financial institutions and evidence ownership of the underlying securities. Depositary receipts are generally subject to the same risks as the foreign securities that they evidence or into which they may be converted. Depositary receipts may or may not be jointly sponsored by the underlying issuer. To the extent that the Fund does invest in ADRs, such investments may be subject to special risks. For example, there may be less information publicly available about a non-U.S. company than about a U.S. company, and non-U.S. companies are not generally subject to accounting, auditing and financial reporting standards and practices comparable to those in the U.S. Certain depositary receipts are not listed on an exchange and therefore may be considered to be illiquid securities.

Companies with a primary listing on a U.S. stock exchange or that have their principal place of business or operations in the U.S. are considered to be U.S. companies.

**Illiquid Securities** 

The Fund may hold up to 15% of its assets (valued at the purchase date) in securities that have limited liquidity or become illiquid. An illiquid investment is any investment that cannot be disposed of within seven days in the normal course of business at approximately the amount at which it is valued by the Fund. Securities may be illiquid due to contractual or legal restrictions on resale or lack of a ready market. The price the Fund pays for illiquid securities or receives upon resale may be lower than the price paid or received for similar securities with a more liquid market. Accordingly, the valuation of these securities will reflect any limitations on their liquidity. The Fund is subject to a risk that should the Fund decide to sell illiquid securities when a ready buyer is not available at a price the Fund deems representative of their value, the value of the Fund's net assets could be adversely affected.

**Real Estate Investment Trusts** 

REITs are pooled investment vehicles that invest primarily in income producing real estate or real estate related loans or interests. REITs generally are classified as equity REITs, mortgage REITs or hybrid REITs. An equity REIT, which owns properties, generates income from rental and lease properties. Mortgage REITs invest the majority of their assets in real estate mortgages and derive income from the collection of interest payments. Hybrid REITs are designed to strike a balance between equity investments and mortgage-backed investments and derive their income from the collection of rents, the realization of capital gains from the sale of properties and from the collection of interest payments on outstanding mortgages held within the trust.

The value of real estate securities in general and REITs in particular, will depend on the value of the underlying properties or the underlying loans or interests. The value of these securities will rise and fall in response to many factors, including economic conditions, the demand for rental property and interest rates. In particular, the value of these securities may decline when interest rates rise and will also be affected by the real estate market and by the management of the underlying properties. REITs may be more volatile and/or more illiquid than other types of equity securities. The Fund, though not invested directly in real estate, still is subject to the risks associated with investing in real estate, which include:

● possible declines in the value of real estate

● risks related to general and local economic conditions

● possible lack of availability of mortgage funds

● overbuilding

● changes in interest rates

● environmental problems

Investing in REITs involves certain risks in addition to those risks associated with investing in the real estate industry in general, which include:

● dependency upon management skills

● limited diversification

● the risks of financing projects

● heavy cash flow dependency

● default by borrowers

● self-liquidation

● possibility of failing to maintain exemptions from the Company Act

● in many cases, relatively small market capitalization, which may result in less market liquidity and greater price volatility

**Repurchase Agreements** 

Under the terms of a repurchase agreement, the Fund would acquire securities from a seller, also known as the repurchase agreement counterparty, subject to the seller's agreement to repurchase such securities at a mutually agreed-upon date and price. The repurchase price would generally equal the price paid by the Fund plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller under a repurchase agreement will be required to maintain the value of collateral held pursuant to the agreement at not less than the repurchase price (including accrued interest).

If the seller were to default on its repurchase obligation or become insolvent, the Fund would suffer a loss to the extent that the proceeds from a sale of the underlying portfolio securities were less than the repurchase price under the agreement, or to the extent that the disposition of such securities by the Fund were delayed pending court action. Additionally, there is no controlling legal precedent under U.S. law and there may be no controlling legal precedents under the laws of certain non-U.S. jurisdictions confirming that the Fund would be entitled, as against a claim by such seller or its receiver or trustee in bankruptcy, to retain the underlying securities, although (with respect to repurchase agreements subject to U.S. law) the Board believes that, under the regular procedures normally in effect for custody of the Fund's securities subject to repurchase agreements and under federal laws, a court of competent jurisdiction would rule in favor of the Trust if presented with the question. Securities subject to repurchase agreements will be held by the Trust's custodian or another qualified custodian or in the Federal Reserve/Treasury book-entry system. Repurchase agreements are considered by the SEC to be loans by the Fund under the Company Act.

Repurchase agreement counterparties include Federal Reserve member banks with assets in excess of $1 billion and registered broker dealers that the Adviser deems creditworthy under guidelines approved by the Board.

**Temporary Strategies** 

From time to time, the Fund may take temporary defensive positions that are inconsistent with the Fund's principal investment strategies, in attempting to respond to adverse market, economic, political, or other conditions. For example, the Fund may hold all or a portion of its assets in money market instruments (high quality income securities with maturities of less than one year) or securities of money market funds or U.S. Government repurchase agreements. The Fund may also invest in such investments at any time to maintain liquidity or pending selection of investments in accordance with its policies. As a result, the Fund may not achieve its investment objective. If the Fund acquires securities of money market funds, the shareholders of the Fund will be subject to duplicative management fees and other expenses.

**U.S. Equity Securities**

U.S. equity securities consist of common and preferred stocks, rights, and warrants trading in a U.S. OTC market or on a U.S. primary exchange. Common stocks, the most familiar type, represent an equity (ownership) interest in a corporation. Preferred stock is a class of ownership in a corporation that has a higher claim on the assets and earnings than common stock. Warrants are options to purchase equity securities at a specified price for a specific time period. Rights are similar to warrants, but normally have a short duration and are distributed by the issuer to its shareholders. Although equity securities have a history of long-term growth in value, their prices fluctuate based on changes in a company's financial condition and on overall market and economic conditions.

Equity securities include S&P Depositary Receipts ("SPDRs") and other similar instruments. SPDRs are shares of a publicly traded unit investment trust which owns the stock included in the S&P 500<sup>®</sup> Index, and changes in the price of the SPDRs track the movement of the Index relatively closely. Similar instruments may track the movement of other stock indexes.

The Fund may invest in non-U.S. equity securities by purchasing ADRs. ADRs are certificates evidencing ownership of shares of a non-U.S.-based issuer held in trust by a bank or similar financial institution. They are alternatives to the direct purchase of the underlying securities in their national markets and currencies. To the extent that the Fund does invest in ADRs, such investments may be subject to special risks. See "Non-U.S. Investments" section for additional information.

Investments in equity securities are subject to inherent market risks and fluctuations in value due to earnings, economic conditions and other factors beyond the control of the Adviser. As a result, the return and NAV of the Fund will fluctuate. Securities in the Fund's portfolio may decrease in value or not increase as much as the market as a whole. Although profits in some Fund holdings may be realized quickly, it is not expected that most investments will appreciate rapidly.

The value of the Fund's investments may decrease, sometimes rapidly or unexpectedly, due to factors affecting an issuer held by the Fund, particular industries or overall securities markets. When the value of the Fund's investments goes down, your investment in the Fund decreases in value. A variety of factors including interest rate levels, recessions, inflation, U.S. economic growth, war or acts of terrorism, natural disasters, political events, supply chain disruptions, staff shortages and widespread public health issues affect the securities markets. 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 over the long-term cannot be reasonably estimated at this time. Governmental responses to these events may negatively impact the capabilities of the Fund's service providers and disrupt the Fund's operations. These events may result in substantial market volatility and may adversely impact the prices and liquidity of the Fund's investments.

At times, a portion of the Fund may be invested in companies with short operating histories ("new issuers") and in initial public offerings ("IPOs"), and such investments could be considered speculative. New issuers are relatively unseasoned and may lack sufficient resources, may be unable to generate internally the funds necessary for growth and may find external financing to be unavailable on favorable terms or even totally unavailable. New issuers will often be involved in the development or marketing of a new product with no established market, which could lead to significant losses. To the extent the Fund invests in smaller capitalization companies, the Fund will also be subject to the risks associated with such companies. Smaller capitalization companies, IPOs and new issuers may experience lower trading volumes than larger capitalization, established companies and may experience higher growth rates and higher failure rates than larger capitalization companies. Smaller capitalization companies, IPOs and new issuers also may have limited product lines, markets or financial resources and may lack management depth.

**U.S. Government Obligations** 

U.S. government obligations may include direct obligations of the U.S. Treasury, including U.S. Treasury bills, notes and bonds, all of which are backed as to principal and interest payments by the full faith and credit of the U.S., and separately traded principal and interest component parts of such obligations that are transferable through the federal book-entry system known as STRIPS and CUBES. U.S. government obligations are subject to market risk, interest rate risk and credit risk.

The principal and interest components of U.S. Treasury bonds with remaining maturities of longer than ten years are eligible to be traded independently under the STRIPS program. Under the STRIPS program, the principal and interest components are separately issued by the U.S. Treasury at the request of depository financial institutions, which then trade the component parts separately. The interest component of STRIPS may be more volatile than that of U.S. Treasury bills with comparable maturities.

Other obligations include those issued or guaranteed by U.S. government agencies or instrumentalities. These obligations may or may not be backed by the "full faith and credit" of the U.S. Securities which are backed by the full faith and credit of the U.S. include obligations of the Government National Mortgage Association, the Farmers Home Administration, and the Export-Import Bank. In the case of securities not backed by the full faith and credit of the U.S., the Fund must look principally to the federal agency issuing or guaranteeing the obligation for ultimate repayment and may not be able to assert a claim against the U.S. itself in the event the agency or instrumentality does not meet its commitments. Securities in which the Fund may invest that are not backed by the full faith and credit of the U.S. include, but are not limited to: (i) obligations of the Tennessee Valley Authority, the Federal Home Loan Banks and the U.S. Postal Service, each of which has the right to borrow from the U.S. Treasury to meet its obligations; (ii) securities issued by Freddie Mac and Fannie Mae, which are supported only by the credit of such securities, but for which the Secretary of the U.S. Treasury has discretionary authority to purchase limited amounts of the agency's obligations; and (iii) obligations of the Federal Farm Credit System and the Student Loan Marketing Association, each of whose obligations may be satisfied only by the individual credits of the issuing agency.

The total public debt of the U.S. and other countries around the globe as a percent of gross domestic product has grown rapidly since the beginning of the 2008 financial downturn. Although high debt levels do not necessarily indicate or cause economic problems, they may create certain systemic risks if sound debt management practices are not implemented. A high national debt level may increase market pressures to meet government funding needs, which may drive debt cost higher and cause a country to sell additional debt, thereby increasing refinancing risk. A high national debt also raises concerns that a government will not be able to make principal or interest payments when they are due. Unsustainable debt levels can cause devaluations of currency, prevent a government from implementing effective counter-cyclical fiscal policy in economic downturns, and contribute to market volatility.

In the past, U.S. sovereign credit has experienced downgrades and there can be no guarantee that it will not experience further downgrades in the future by rating agencies. The market prices and yields of securities supported by the full faith and credit of the U.S. Government may be adversely affected by a rating agency's decision to downgrade the sovereign credit rating of the U.S.

**Other Risks**

**Securities Lending**

To generate additional income, the Fund may lend up to 33-1/3% of its total assets pursuant to agreements requiring that the loan be continuously secured by collateral equal to at least 100% of the market value plus accrued interest on the securities lent.

Loans are subject to termination by the Fund or the borrower at any time, and therefore, are not considered to be illiquid investments. The Fund does not have the right to vote proxies for securities on loan. However, the Adviser may terminate a loan if the vote is considered material with respect to an investment.

Securities lending involves counterparty risk, including the risk that the loaned securities may not be returned or returned in a timely manner and/or a loss of rights in the collateral if the borrower or the lending agent defaults or fails financially. This risk is increased when the Fund's loans are concentrated with a single or limited number of borrowers. The earnings on the collateral invested may not be sufficient to pay fees incurred in connection with the loan. Also, the principal value of the collateral invested may decline and may not be sufficient to pay back the borrower for the amount of collateral posted. There are no limits on the number of borrowers the Fund may use and the Fund may lend securities to only one or a small group of borrowers.

To the extent that the value or return of the Fund's investments of the cash collateral declines below the amount owed to a borrower, the Fund may incur losses that exceed the amount it earned on lending the security. In situations where the Adviser does not believe that it is prudent to sell the cash collateral investments in the market, the Fund may borrow money to repay the borrower the amount of cash collateral owed to the borrower upon return of the loaned securities. This will result in financial leverage, which may cause the Fund to be more volatile because financial leverage tends to exaggerate the effect of any increase or decrease in the value of the Fund's portfolio securities.

**Operational Risk** 

An investment in the Fund can involve operational risks arising from factors such as processing errors, human errors, inadequate or failed internal or external processes, failures in systems and technology, changes in personnel and errors caused by third-party service providers. The occurrence of any of these failures, errors, or breaches could result in a loss of information, regulatory scrutiny, reputational damage, or other events, any of which could have a material adverse effect on the Fund. While the Fund seeks to minimize such events through controls and oversight, there may still be failures that could cause losses to the Fund.

**Cybersecurity Risk**

The computer systems, networks, and devices used by the Fund and its service providers to carry out routine business operations employ a variety of protections designed to prevent damage or interruption from computer viruses, network failures, computer and telecommunication failures, infiltration by unauthorized persons, and security breaches. Despite the various protections utilized by the Fund and its service providers, systems, networks, or devices potentially can be breached due to both intentional and unintentional events. The Fund and its shareholders could be negatively impacted as a result of a cybersecurity breach.

Similar adverse consequences could result from cybersecurity breaches affecting issuers of securities in which the Fund invests; counterparties with which the Fund engages in transactions; governmental and other regulatory authorities; exchange and other financial market operators, banks, brokers, dealers, insurance companies, and other financial institutions (including financial intermediaries and service providers for the Fund's shareholders); and other parties.

Cybersecurity breaches can include unauthorized access to systems, networks, or devices; infection from computer viruses or other malicious software code; ransomware; and attacks that shut down, disable, slow, or otherwise disrupt operations, business processes, or website access or functionality. Cybersecurity breaches may cause disruptions and impact the Fund's business operations, potentially resulting in financial losses; may negatively impact the financial condition of an issuer, counterparty or other market participant; interference with the Fund's ability to calculate their NAVs; impediments to trading; the inability of the Fund, the Adviser, and other service providers to transact business; violations of applicable privacy and other laws; regulatory fines, penalties, reputational damage, reimbursement or other compensation costs, or additional compliance costs; as well as the inadvertent release of confidential information. In addition, substantial costs may be incurred by these entities in order to prevent any cybersecurity breaches in the future. Neither the Fund nor the Adviser control the cybersecurity systems of issuers or third-party service providers.

**Cash Transactions Risk**

The Fund may effect its creations and redemptions in cash or partially in cash. If the Fund does so, it may be less tax-efficient than an investment in other ETFs, and the Fund may incur taxable gains or losses that it might not have incurred had it made redemptions entirely in-kind. As a result, the Fund may pay out higher annual capital gain distributions than if the in-kind redemption process was used.

**Risk of Having a Transferred Basis in Shares**

An investment in shares may be less tax efficient than an investment in other ETFs because the Fund's initial portfolio was deposited in-kind by seed investors whose cost basis in the securities was lower than the market value of such securities on the date of such deposit. Under the Internal Revenue Code of 1986, as amended (the "Code"), such in-kind contribution resulted in the seed investors' lower basis in those securities being transferred to the Fund. As a result, if any securities with the lower basis are sold by the Fund, the Fund will realize higher amounts of realized gains upon the sale of such portfolio securities than otherwise would be the case had the Fund not received such in-kind deposit, and may be required to distribute capital gains, including long-term capital gains, to all shareholders (inclusive of, but not limited to, the seed investors) upon the sale of such portfolio securities. Please consult your tax advisor about the potential tax consequences. Nonetheless, because the Fund intends to transact with Authorized Participants primarily in kind, it does not currently anticipate significant tax impacts to investors as a result of the in-kind seed investment.

**INVESTMENT LIMITATIONS** 

<u>Fundamental</u>. The investment limitations described below have been adopted by the Trust with respect to the Fund and are fundamental ("Fundamental") (*i.e.*, they may not be changed without the affirmative vote of a majority of the outstanding Shares of the Fund). As used in the Prospectus and this SAI, the term "majority" of the outstanding Shares of the Fund means the lesser of: (1) 67% or more of the outstanding Shares of the Fund present at a meeting, if the holders of more than 50% of the outstanding Shares of the Fund are present or represented at such meeting; or (2) more than 50% of the outstanding Shares of the Fund. Other investment practices that may be changed by the Board without the approval of shareholders to the extent permitted by applicable law, regulation or regulatory policy are considered nonfundamental ("Nonfundamental").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Borrowing Money</u>. The Fund will not borrow money, except: (a) from a bank or from another Fund of the Trust, provided that immediately after such borrowing there is an asset coverage of 300% for all borrowings of the Fund; or (b) from a bank or other persons for temporary purposes only, provided that such temporary borrowings are in an amount not exceeding 5% of the Fund's total assets at the time when the borrowing is made. This limitation does not preclude the Fund from entering into reverse repurchase transactions, provided that the Fund has an asset coverage of 300% for all borrowing and repurchase commitments of the Fund pursuant to reverse repurchase transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Senior Securities</u>. The Fund will not issue senior securities. This limitation is not applicable to activities that may be deemed to involve the issuance or sale of a senior security by the Fund, provided that the Fund's engagement in such activities is (a) consistent with or permitted by the Company Act the rules and regulations promulgated thereunder or interpretations of the SEC or its staff and (b) as described in the Prospectus and this SAI.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Underwriting</u>. The Fund will not act as underwriter of securities issued by other persons. This limitation is not applicable to the extent that, in connection with the disposition of portfolio securities (including restricted securities), the Fund may be deemed an underwriter under certain federal securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Real Estate</u>. The Fund will not purchase or sell real estate. This limitation is not applicable to investments in marketable securities that are secured by or represent interests in real estate. This limitation does not preclude the Fund from investing in mortgage-related securities or investing in companies engaged in the real estate business or that have a significant portion of their assets in real estate (including real estate investment trusts).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Commodities</u>. The Fund will not purchase or sell commodities unless acquired as a result of ownership of securities or other investments. This limitation does not preclude the Fund from purchasing or selling options or futures contracts, from investing in securities or other instruments backed by commodities or from investing in companies that are engaged in a commodities business or have a significant portion of their assets in commodities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Loans</u>. The Fund will not lend any security or make any other loan if, as a result, more than 33 1/3% of its total assets would be lent to other parties, but this limitation does not apply to purchases of debt securities or to repurchase agreements, or to acquisitions of loans, loan participations or other forms of debt instruments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Concentration</u>. The Fund will not invest 25% or more of its respective total assets in any particular industry. This limitation is not applicable to investments in obligations issued or guaranteed by the U.S. government, its agencies and instrumentalities or repurchase agreements with respect thereto.

With respect to the percentages adopted by the Trust as maximum limitations on its investment policies and limitations, an excess above the fixed percentage will not be a violation of the policy or limitation unless the excess results immediately and directly from the acquisition of any security or the action taken. This paragraph does not apply to the borrowing policy set forth in paragraph 1 above.

With respect to paragraph 1 above, if asset coverage on borrowing at any time falls below 300% for the Fund, within three days (or such longer period as the SEC may prescribe by rule or regulation) the Fund will reduce the amount of its borrowings to the extent that asset coverage of such borrowings will be at least 300%.

Notwithstanding any of the foregoing limitations, any investment company, whether organized as a trust, association, corporation, or a personal holding company, may be merged or consolidated with or acquired by the Trust, provided that if such merger, consolidation, or acquisition results in an investment in the securities of any issuer prohibited by said paragraphs, the Trust shall, within ninety days after the consummation of such merger, consolidation, or acquisition, dispose of all of the securities of such issuer so acquired or such portion thereof as shall bring the total investment therein within the limitations imposed by said paragraphs above as of the date of consummation.

<u>Nonfundamental</u>. The following limitations have been adopted by the Trust with respect to the Fund and are Nonfundamental (see "Investment Limitations" above).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Pledging</u>. The Fund will not mortgage, pledge, hypothecate, or in any manner transfer, as security for indebtedness, any of its assets except as may be necessary in connection with borrowings described in limitation (1) above. Margin deposits, security interests, liens and collateral arrangements with respect to transactions involving options, futures contracts, short sales and other permitted investments and techniques are not deemed to be a mortgage, pledge or hypothecation of assets for purposes of this limitation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Borrowing</u>. The Fund will not purchase any security while borrowings (including reverse repurchase agreements) representing more than 5% of its total assets are outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Margin Purchases</u>. The Fund will not purchase securities or evidences of interest thereon on "margin." This limitation is not applicable to short term credit obtained by the Fund for the clearance of purchases and sales or redemption of securities, or to arrangements with respect to transactions involving options, futures contracts, short sales and other permitted investments and techniques.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Options</u>. The Fund will not purchase or sell puts, calls, options or straddles, except as described in the Prospectus and this SAI.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Reverse Repurchase Agreements</u>. The Fund will not enter into reverse repurchase agreements.

**THE INVESTMENT ADVISER** 

Diamond Hill Capital Management, Inc., 325 John H. McConnell Boulevard, Suite 200, Columbus, Ohio 43215 (the "Adviser") is the investment adviser for the Fund. The Adviser is a wholly-owned subsidiary of Diamond Hill Investment Group, Inc. ("DHIL").

Under the terms of the amended and restated investment management agreement between the Trust and the Adviser (the "Management Agreement"), the Adviser manages the Fund's investments. As compensation for management services, the Fund is obligated to pay the Adviser fees computed and accrued daily and paid monthly at the annual rates set forth below:

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| | |
|:---|:---|
| **Fund** | **Percentage of Average**<br> **Daily Net Assets** |
| Large Cap Concentrated ETF | 0.50% |

---

The Fund paid investment management fees to the Adviser for the following fiscal periods:

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| | | | |
|:---|:---|:---|:---|
| **Fund** | **Fiscal Year Ended December 31, 2025** | **Fiscal Year Ended December 31, 2024** | **Fiscal Year Ended December 31, 2023** |
| Large Cap Concentrated ETF<sup>1</sup> | $194518 | $159606 | $126448 |

---

 

<sup>1</sup> Fees were paid by the Predecessor Fund for periods prior to September 26, 2025.

The Adviser retains the right to use the name "Diamond Hill" in connection with another investment company or business enterprise with which the Adviser is or may become associated. The Trust's right to use the name "Diamond Hill" automatically ceases ninety days after termination of the Management Agreement and may be withdrawn by the Adviser on ninety days written notice.

The Adviser may make payments to banks or other financial institutions that provide shareholder services and administer shareholder accounts. The Fund may from time to time purchase securities issued by banks that provide such services; however, in selecting investments for the Fund, no preference will be shown for such securities.

Under the terms of the administrative services agreement (the "Administration Agreement") by and between the Trust and Diamond Hill Capital Management, Inc. (the "Administrator"), the Administrator renders all administrative, fund accounting, and supervisory services to the Fund. The Administrator oversees the maintenance of all books and records with respect to the Fund's securities transactions and the Fund's book of accounts in accordance with all applicable federal and state laws and regulations. The Administrator also arranges for the preservation of journals, ledgers, corporate documents, brokerage account records, and other records that are required pursuant to Rule 31a-1 promulgated under the Company Act. The Administrator is also responsible for the equipment, staff, office space, and facilities necessary to perform its obligations. The Administrator may delegate any or all of its responsibilities under the Administration Agreement to one or more third-party service providers.

Under the Administration Agreement, the Administrator assumes and pays all operating expenses of the Fund not specifically assumed by the Fund. The Fund pays all brokerage fees and commissions, custodian fees, taxes, borrowing costs, expenses related to conducting shareholders' meetings and proxy solicitations, fees and extraordinary or non-recurring expenses.

Pursuant to the Administration Agreement, the Administrator receives a fee, which is paid monthly at an annual rate of 0.05% of the Fund's average daily net assets. Pursuant to the Administration Agreement, the Administrator received a fee, paid monthly at an annual rate of 0.05% of the Fund's average daily net assets. The Fund paid the following total administrative services fees to the Administrator for the following fiscal periods:

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| | | | |
|:---|:---|:---|:---|
| **Fund** | **Fiscal Year Ended<br> December 31, 2025** | **Fiscal Year Ended<br> December 31, 2024** | **Fiscal Year Ended<br> December 31, 2023** |
| Large Cap Concentrated ETF<sup>1</sup> | $33836 | $32499 | $24731 |

---

<sup>1</sup> Fees were paid by the Predecessor Fund for periods prior to September 26, 2025.

**Portfolio Manager Compensation** 

All of the portfolio managers of the Adviser ("Portfolio Managers") are paid a competitive base salary based on experience, external market comparisons to similar positions, and other business factors. To align their interests with those of shareholders, all Portfolio Managers also participate in an annual cash and equity incentive compensation program that is based on:

● The long-term pre-tax investment performance of the fund(s) that they manage and the related investment composite(s) of the Adviser;

● The Adviser's assessment of the investment contribution they make to funds they do not manage;

● The Adviser's assessment of each Portfolio Manager's overall contribution to the development of the investment team through ongoing discussion, interaction, feedback, and collaboration; and

● The Adviser's assessment of each Portfolio Manager's contribution to client service, marketing to prospective clients and investment communication activities.

Long-term performance is defined as the trailing five years (performance of less than five years is judged on a subjective basis).

Incentive compensation is paid annually from an incentive pool that is determined based on several factors, including investment results in client portfolios, revenues, employee performance, and industry operating margins. Portfolio Manager compensation is not directly tied to product asset growth or revenue. However, both of these factors influence the size of the incentive pool, and therefore, indirectly contribute to Portfolio Manager compensation. Incentive compensation is subject to review and oversight by the compensation committee of DHIL's board of directors. Only independent DHIL directors are members of the compensation committee. The Portfolio Managers are also eligible to participate in the DHIL 401(k) plan ("401K Plan") and related company match. DHIL also has a deferred compensation plan, whereby each Portfolio Manager is eligible to participate and may voluntarily elect to defer a portion of their incentive compensation. Portfolio Managers are encouraged to invest any deferral of incentive compensation in a Diamond Hill Fund for the entire duration of the deferral.

**Portfolio Manager Holdings** 

Portfolio managers are encouraged to own Shares of the funds they manage. The following table indicates the dollar range of Shares beneficially owned by the Fund's Portfolio Manager as of December 31, 2025. This table includes Shares beneficially owned by the Portfolio Manager through the 401K Plan and the DHIL deferred compensation plans.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | |  | **Dollar Range of Shares in the Fund** | **Dollar Range of Shares in the Fund** | **Dollar Range of Shares in the Fund** | **Dollar Range of Shares in the Fund** | **Dollar Range of Shares in the Fund** | **Dollar Range of Shares in the Fund** |
| <br>**Fund** | <br>**Portfolio Manager** | | **$1 – <br> $10000** | **$10001 – <br> $50000** | **$50001 – <br> $100000** | **$100001 – <br> $500000** | **$500001 –**<br> **$1000000** | **Over**<br> **$1,000,000** |
| Large Cap Concentrated ETF | Austin Hawley | PM |  |  |  |  |  | X |

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**Other Portfolio Manager Information** 

The Portfolio Manager is also responsible for managing certain Diamond Hill Funds and other account portfolios in addition to the Fund. Management of certain Diamond Hill Funds and other accounts in addition to the Fund can present certain conflicts of interest, including those associated with different fee structures, various trading practices, and the amount of time the Portfolio Manager may spend on Diamond Hill Funds and other accounts versus the Fund. The Adviser has implemented specific policies and procedures to address any potential conflicts. The Adviser's Form ADV Part 2A contains a complete description of its policies and procedures to address conflicts of interest. Below are material conflicts of interest that have been identified and mitigated when managing Diamond Hill Funds and other account portfolios as well as the Fund.

*Performance Based Fees* 

The Adviser manages certain accounts for which part of its fee is based on the performance of the account/fund ("Performance Fee Accounts"). As a result of the performance-based fee component, the Adviser may receive additional revenue related to the Performance Fee Accounts. None of the Portfolio Managers receive any direct incentive compensation related to their management of the Performance Fee Accounts; however, revenues from Performance Fee Accounts management will impact the resources available to compensate Portfolio Managers and all staff.

*Trade Allocation* 

 

The Adviser manages certain Diamond Hill Funds and numerous other accounts in addition to the Fund. When the Fund and another of the Adviser's clients seek to purchase or sell the same security at or about the same time, the Adviser may execute the transactions with the same broker on a combined or "blocked" basis. Blocked transactions can produce better execution for the Fund because of increased volume of the transaction. However, when another of the Adviser's clients specifies that trades be executed with a specific broker ("Directed Brokerage Accounts"), a potential conflict of interest exists related to the order in which those trades are executed and allocated. As a result, the Adviser has adopted a trade allocation policy in which all trade orders occurring simultaneously among the Fund and one or more Diamond Hill Funds and other accounts where the Adviser has the discretion to choose the execution broker are blocked and executed first. After the blocked trades have been completed, the remaining trades for the Directed Brokerage Accounts are then executed in random order, through the Adviser's portfolio management software. When a trade is partially filled, the number of filled Shares is allocated on a pro-rata basis to the appropriate client accounts. Trades are not segmented by investment product. Diamond Hill participates in Model Delivery Programs where the Adviser does not have investment discretion or trade execution authority. For certain investment strategies, model portfolio updates may be provided contemporaneously with the Adviser's execution of transactions in the Diamond Hill Funds.

*Code of Ethics and Personal Security Trading* 

The Adviser and the Trust have adopted a Code of Ethics designed to: (i) demonstrate the Adviser's duty at all times to place the interest of clients and Fund shareholders first; (ii) align the interests of the Portfolio Manager with clients and Fund shareholders, and (iii) mitigate inherent conflicts of interest associated with personal securities transactions. The Code of Ethics prohibits all employees of the Adviser from purchasing any individual equity and most fixed income securities that are eligible to be purchased by the Diamond Hill Funds. The Code of Ethics also prohibits the purchase of third-party mutual funds in the primary Morningstar categories with which the Adviser competes.

*Best Execution and Research Services*

The Adviser has controls in place for monitoring trade execution in client accounts, including reviewing trades for best execution. The primary consideration in placing a portfolio transaction with a particular broker is obtaining the most favorable prices for each client under the circumstances of each particular transaction. More specifically, the Adviser will consider the full range and quality of the services offered by a broker. The determination to place a trade with a particular broker will be based on certain considerations, including but not limited to: price competitiveness, execution capability, brokerage and research products, trading expertise in relevant financial instruments, liquidity provision, execution accuracy, commission rates, reputation, integrity, dispute resolution fairness, financial responsibility, and responsiveness in settling trades. Certain broker-dealers that the Adviser uses to execute client trades are also clients of the Adviser and/or refer clients to the Adviser creating a conflict of interest. To mitigate this conflict, the Adviser adopted a policy that prohibits it from considering any factor other than best execution when a client trade is placed with a broker-dealer.

The Adviser may consider the receipt of research services in selecting brokers to execute portfolio transactions for the Fund. Since the Adviser uses client brokerage commissions to obtain research, it receives a benefit because it does not have to produce or pay for the research, products, or services itself. Consequently, the Adviser has an incentive to select or recommend a broker based on its desire to receive research, products, or services rather than a desire to obtain the most favorable execution. Additionally, the research services and other information furnished by brokers through whom the Fund effects securities transactions may be used by the Adviser in servicing all of its accounts. Similarly, research and information provided by brokers or dealers serving other clients may be useful to the Adviser in connection with its services to the Fund. There may be a conflict of interest if soft dollars are not spread in the same proportion across all accounts. The Adviser attempts to mitigate these potential conflicts through oversight of the use of commissions by its Best Execution Committee.

*Other Accounts Managed by the Portfolio Managers* 

 

The following tables indicate the number of other accounts managed by the Portfolio Manager of the Fund and the other assets under management for each type of account as of December 31, 2025.

 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name of Portfolio Manager** | **Account Category** | **Number of Accounts** | **Total Assets in Accounts** | **Number of Accounts Where Advisory Fee is Based on Account Performance** | **Total Assets in Accounts Where Advisory Fee is Based on Account Performance** |
|  | Registered Investment Company | 2 | $1868242422 |  | $— |
| Austin Hawley, Portfolio Manager | Other Pooled Investment Vehicles | 5 | $2180885986 |  | $— |
|  | Other Accounts | 75 | $4389936489 |  | $— |

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**TRUSTEES AND OFFICERS**

The names of the Trustees and officers of the Trust ("Officers") are shown below. Each Trustee is an independent and non-interested Trustee as defined in the Company Act.

**Trustees**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position**<br> **Held** | **Year First Elected a Trustee of the Trust<sup>1</sup>** | **Principal Occupation(s)**<br> **During Past Five Years** | **Number of**<br> **Portfolios in**<br> **Fund Complex**<br> **Overseen by**<br> **Trustee<sup>2</sup>** | **Other<br> Directorships<br> Held by<br> Trustee<sup>3</sup>** |
| Tamara L. Fagely<br> Year of Birth: 1958 | Trustee, Board Chair | 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 | 13 | Diamond Hill Securitized Credit Fund, August 2024 to present; 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 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position**<br> **Held** | **Year First Elected a Trustee of the Trust<sup>1</sup>** | **Principal Occupation(s)**<br> **During Past Five Years** | **Number of**<br> **Portfolios in**<br> **Fund Complex**<br> **Overseen by**<br> **Trustee<sup>2</sup>** | **Other<br> Directorships<br> Held by<br> Trustee<sup>3</sup>** |
| Jody T. Foster<br> Year of Birth: 1969 | Trustee | Since February 2022 | Chief Executive Officer, Symphony Consulting, 2010 to present | 13 | Diamond Hill Securitized Credit Fund, August 2024 to present; Voya Funds, September 2025 to present; Hussman Investment Trust, June 2016 to July 2025; Forum CRE Income Fund, April 2021 to January 2022 |
| Anthony J. Ghoston<br> Year of Birth: 1959 | Trustee | Since May 2022 | Retired, 2025 to present; Chief Executive Officer and President, Informational Resource Consulting, 2020 to 2025; President, Chief Operating Officer and Chief Compliance Officer, Dividend Assets Capital, LLC, 2010 to 2020 | 12 |  |
| John T. Kelly-Jones<br> Year of Birth: 1960 | Trustee | Since May 2019 | Retired, December 2017 to present; Partner, COO and CCO, Independent Franchise Partners, LLP, June 2009 to November 2017 | 13 | Diamond Hill Securitized Credit Fund, August 2024 to present |
| Nancy M. Morris<br> Year of Birth: 1952 | Trustee | Since May 2019 | Retired, August 2018 to present; Chief Compliance Officer, Wellington Management Company LLP, April 2012 to July 2018 | 12 | The Arbitrage Funds, December 2018 to present; AltShares Trust, January 2020 to present |

---

**<u>Officers</u><sup>4</sup>**

---

| | | | |
|:---|:---|:---|:---|
| **Name and Year of Birth** | **Position**<br> **Held** | **Year First Elected to Current Officer Position of the Trust<sup>1</sup>** | **Principal Occupation(s)**<br> **During Past Five Years** |
| Thomas E. Line<br> 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<br> Year of Birth: 1966 | Vice President<br> Secretary | Since November 2011<br> Since November 2014 | Director-Fund Administration & Sales Support, Diamond Hill Capital Management, Inc., June 2009 to present |
| Alyssa A. Bentz<br> Year of Birth: 1981 | Chief Compliance Officer<br> Anti-Money Laundering Officer | Since May 2024<br> Since May 2024 | Chief Compliance Officer of Diamond Hill Capital Management, Inc., May 2024 to present; Chief Compliance Officer, U.S. Bancorp Asset Management, Inc., July 2021 to March 2024; Compliance Manager, U.S. Bancorp Asset Management, Inc., December 2015 to July 2021 |
| Julie A. Roach<br> Year of Birth: 1971 | Treasurer | Since October 2017 | Director-Fund Administration, Diamond Hill Capital Management, Inc., September 2017 to present |

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<sup>1</sup> Each Trustee is elected to serve in accordance with the Trust Agreement 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.

 

<sup>2</sup> The "Fund Complex" includes the Diamond Hill Funds and the Diamond Hill Securitized Credit Fund, a closed-end management investment company that is operated as an interval fund and managed by the Adviser.

 

<sup>3</sup> 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.

 

<sup>4</sup> All Officers, excluding Thomas E. Line, also serve as Officers to the Diamond Hill Securitized Credit Fund.

 

**Fund Shares Owned By Trustees As Of December 31, 2025**

**** 

---

| | | |
|:---|:---|:---|
| **Name of Trustee** | **Dollar Range of Equity<br> Securities in the Fund<sup>1</sup>** | **Aggregate Dollar Range of<br> Equity Securities Owned in<br> the Fund Complex Overseen<br> by Trustee<sup>1</sup>** |
| Tamara L. Fagely |  | Over $100,000 |
| Jody T. Foster |  | Over $100,000 |
| Anthony J. Ghoston |  | Over $100,000 |
| John T. Kelly-Jones |  | Over $100,000 |
| Nancy M. Morris |  | Over $100,000 |

---

 

<sup>1</sup> Ownership disclosure is made using the following ranges: None; $1 - $10,000; $10,001 - $50,000; $50,001 - $100,000 and over $100,000.

The compensation paid to the Trustees for the fiscal year ended December 31, 2025 is set forth in the following table:

 

**COMPENSATION TABLE**

**** 

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Position** | **Aggregate**<br> **Compensation\*** | **Pension or**<br> **Retirement**<br> **Benefits Accrued**<br> **as Part of Fund**<br> **Expense** | **Estimated**<br> **Annual Benefits**<br> **Upon**<br> **Retirement** | **Total**<br> **Compensation**<br> **Paid to Trustee\*\*** |
| &nbsp;&nbsp;&nbsp;Tamara L. Fagely, Chairperson, Trustee | $165000 |  |  | $165000 |
| &nbsp;&nbsp;&nbsp;Jody T. Foster, Trustee | 150000 |  |  | 150000 |
| &nbsp;&nbsp;&nbsp;Anthony J. Ghoston, Trustee | 130000 |  |  | 130000 |
| &nbsp;&nbsp;&nbsp;John T. Kelly-Jones, Trustee | 147000 |  |  | 147000 |
| &nbsp;&nbsp;&nbsp;Nancy M. Morris, Trustee | 130000 |  |  | 130000 |

---

\* The Trustees are compensated for their services by the Administrator as part of the Administration Agreement for the Fund, as part of the Amended and Restated Administrative and Transfer Agency Services Agreement for certain other Diamond Hill Funds and as part of the Administrative and Transfer Agency Services Agreement for the Diamond Hill Securitized Credit Fund.

\*\* The Fund Complex consists of the Diamond Hill Funds and Diamond Hill Securitized Credit Fund.

The Board believes that Trustees should have a significant personal investment in the Diamond Hill Funds. Trustee compensation, except for that required to meet any tax liability resulting from the receipt of such compensation, must be invested in the Diamond Hill Funds, until a $250,000 minimum investment is met. Once the Trustee has $250,000 invested, a minimum of 30 percent of ongoing Trustee compensation must be invested in the Diamond Hill Funds and, along with the initial $250,000, must remain invested for the entire term of their trusteeship.

The Board has two standing committees: an Audit Committee and a Nominating and Governance Committee. All Trustees are members of the Audit Committee and the Nominating and Governance Committee.

The Audit Committee's function is to oversee the Trust's accounting and financial reporting policies and practices, its internal controls and, as appropriate, the internal controls of certain service providers; to oversee the quality and objectivity of the Trust's financial statements and the independent audit thereof; and to act as a liaison between the Trust's independent registered public accounting firm and the full Board. The Audit Committee held two regularly scheduled meetings during the fiscal year ended December 31, 2025. The Board has determined that Tamara L. Fagely and Jody T. Foster, each a member of the Audit Committee, are each an "audit committee financial expert" as defined by the SEC. Ms. Foster serves as the Chair of the Audit Committee.

The Nominating and Governance Committee's ("Committee") function is to nominate candidates for election to the Board, make nominations for membership on all committees and review committee assignments at least annually. The Committee also reviews as necessary the responsibilities of any committees of the Board, whether there is a continuing need for each committee, whether there is a need for additional committees of the Board, and whether committees should be combined or reorganized. The Committee makes recommendations for any such action to the full Board. The Committee also considers candidates for Trustees nominated by shareholders. Shareholders may recommend candidates for Board positions by forwarding their correspondence to the Secretary of the Trust at the Trust's address and the shareholder communication will be forwarded to the Committee Chair for evaluation. The Committee held two regularly scheduled meetings during the fiscal year ended December 31, 2025. Mr. Kelly-Jones serves as the Chair of the Committee.

As of January 31, 2026 the Trustees and Officers of the Trust as a group owned less than 1% of the Trust.

The Trust and the Adviser have each adopted a Code of Ethics (together, the "Code of Ethics") under Rule 17j-1 under the Company Act. The personnel subject to the Code of Ethics are prohibited from investing in individual equity securities and certain fixed income securities that are eligible to be purchased by the Diamond Hill Funds. The Code of Ethics is available at diamond-hill.com/about/policies-and-disclosures. You may also obtain a copy of the Code of Ethics from the SEC EDGAR web site or by calling the Diamond Hill Funds at 888-226-5595.

**Proxy Voting Policies and Procedures**

*General Policy*

 

The Trust has delegated proxy voting responsibilities of the Fund to the Adviser, subject to the general oversight of the Board. The Adviser has adopted written proxy voting policies and procedures ("Proxy Policy") as required by Rule 206(4)-6 under the Investment Advisers Act of 1940, as amended, consistent with its fiduciary obligations and the Proxy Policy has been approved by the Trustees as the policies and procedures that the Adviser will use when voting proxies on behalf of the Fund. The Proxy Policy is designed and implemented in a manner reasonably expected to ensure that voting and consent rights are exercised prudently and solely in the best economic interests of the Fund and their shareholders considering all relevant factors and without undue influence from individuals or groups who may have an economic interest in the outcome of a proxy vote. Any conflict between the interests of the Fund's shareholders, on one hand, and those of the Adviser or principal underwriter on the other will be reported to the Board and the Board will provide direction to the Adviser on how to vote the proxy.

 

The Proxy Policy sets forth the Adviser's voting guidelines. The guidelines contain information about the key objectives in voting proxies, various client and Adviser decision methods, conflicts of interest, general voting principles, and detailed explanations on how the Adviser will typically vote on certain matters that are typically up for shareholder vote. Each vote is ultimately determined on a case-by-case basis, taking into consideration all relevant facts and circumstances at the time of the vote.

*How to Obtain More Information* 

Investors may obtain a copy of the Proxy Policy by writing to the Trust at 325 John H. McConnell Boulevard, Suite 200, Columbus, OH 43215 or by calling the Trust at 888-226-5595. Information about how the Predecessor Fund voted proxies relating to portfolio securities for the 12 month period ended June 30<sup>th</sup> is available without charge, upon request, by calling the Trust at 888-226-5595, via a link on the Predecessor Fund's website, diamond-hill.com/documents, and on the SEC's website at sec.gov.

**OTHER INFORMATION CONCERNING THE BOARD OF TRUSTEES** 

**Leadership Structure and Board of Trustees** 

The primary responsibility of the Board is to represent the interests of the shareholders of the Trust and to provide oversight of the management of the Trust. All of the Trustees are independent of and not affiliated with the Adviser or its affiliates. The same Trustees serve all twelve Diamond Hill Funds and have delegated day-to-day operation to various service providers whose activities they oversee. The Trustees have also engaged legal counsel (who is also legal counsel to the Trust) that is independent of the Adviser or its affiliates to advise them on matters relating to their responsibilities in connection with the Trust. The Trustees meet separately in an executive session on a quarterly basis and meet separately in executive session with the Trust's Chief Compliance Officer ("CCO") on a quarterly basis. On an annual basis, the Board conducts a self-assessment and evaluates its structure. Consistent with the Adviser's governing principles, each of the Trustees is a significant owner of the Diamond Hill Funds with other shareholders (see table set forth above), which is designed to align their interests with those of shareholders. The Board has determined that the leadership and committee structure is appropriate for the Trust and allows the Board to effectively and efficiently evaluate issues that impact the Trust as a whole as well as issues that are unique to each Diamond Hill Fund.

**Board Oversight of Risk** 

The Diamond Hill Funds are subject to a number of risks, including investment, compliance, operational, and financial risks, among others. Risk oversight forms part of the Board's general oversight of the Diamond Hill Funds and is addressed as part of various Board and committee activities. Day-to-day risk management with respect to the Diamond Hill Funds resides with the Adviser or other service providers, subject to supervision by the Adviser. The Board oversees efforts by management and service providers to manage the risk to which the Diamond Hill Funds may be exposed. For example, the Board meets with Portfolio Managers and receives regular reports regarding investment risk. The Board meets with the CCO and receives regular reports regarding compliance and regulatory risks. In addition, the Board meets with the CCO in executive session on a quarterly basis. The Audit Committee meets with the Trust's Treasurer and receives regular reports regarding fund operations and risks related to the valuation, liquidity, and overall financial reporting of the Diamond Hill Funds. From its review of these reports and discussions with management, the Board learns about the material risks to which the Diamond Hill Funds are exposed, enabling a dialogue about how management and service providers manage and mitigate those risks.

Not all risks that may affect the Fund can be identified nor can controls be developed to eliminate or mitigate their occurrence or effects. It may not be practical or cost effective to eliminate or mitigate certain risks, the processes and controls employed to address certain risks may be limited in their effectiveness, and some risks are simply beyond the reasonable control of the Fund or the Adviser, its affiliates, or other service providers. Moreover, it is necessary to bear certain risks (such as investment-related risks) to achieve the Fund's goals. As a result of the foregoing and other factors, the Fund's ability to manage risk is subject to substantial limitations. The Trustees believe that their current oversight approach is an appropriate way to manage risks facing the Fund, whether investment, compliance, financial, or otherwise. The Trustees may, at any time in their discretion, change the manner in which they conduct risk oversight of the Fund.

**Trustee Attributes** 

The Board believes each of the Trustees has demonstrated leadership abilities and possesses experience, qualifications, and skills valuable to the Diamond Hill Funds. Each of the Trustees has substantial business and professional backgrounds that indicate they have the ability to critically review, evaluate and access information provided to them.

Below is additional information concerning each particular Trustee and his/her attributes. The information provided below, and in the chart above, is not all-inclusive. Many Trustee attributes involve intangible elements, such as intelligence, work ethic, the ability to work together and the ability to communicate effectively, exercise judgment, ask incisive questions, manage people and problems or develop solutions.

**Tamara L. Fagely** was a business executive for a large mutual fund complex for over 20 years leading back office operations that included administration, fund accounting, financial reporting, transfer agent, and technology. Her experience included roles as Treasurer, Chief Financial Officer, and Chief Operations Officer. In addition, Ms. Fagely has management experience in broker/dealer operations and as an audit manager conducting audits of financial service organizations and mutual funds. Ms. Fagely currently serves on the boards of other registered investment companies. Ms. Fagely brings a detailed knowledge of the mutual fund industry and financial expertise to the Board.

**Jody T. Foster** is the founder and has been the Chief Executive Officer of Symphony Consulting since 2010. She has overseen the development and launch of a variety of investment product offerings. Her experience includes roles as Research Analyst, International Research Manager, Director and Chief Operating Officer. In addition, Ms. Foster has management experience in finance, risk management and accounting. Ms. Foster currently serves on the boards of other registered investment companies. Ms. Foster brings a detailed knowledge of investment management, mutual fund industry and financial expertise to the Board.

**Anthony J. Ghoston** has more than 30 years' experience in the investment management industry. His experience includes roles as CEO, President, Director, Chief Compliance Officer and Chief Operating Officer with a registered investment adviser and a fund administration service provider. In addition, Mr. Ghoston has management experience in investment operations, risk management and compliance. Mr. Ghoston brings knowledge and experience of mutual fund operations, controls and oversight to the Board.

**John T. Kelly-Jones** has more than 20 years' experience in the investment management industry. Mr. Kelly-Jones was a founding partner, Chief Operations Officer and Chief Compliance Officer of Independent Franchise Partners, LLP ("IFP"), a registered investment adviser, overseeing all operational functions and establishing four funds of different structures. Mr. Kelly-Jones also previously served on the board of one of IFP's Irish variable capital funds and of one U.S. private investment fund. In addition, he served in various roles and capacities at Morgan Stanley Asset Management, London from September 2002 through June 2009. His experience included working with mutual fund firms and investment advisers. Mr. Kelly-Jones exhibits excellent communication skills, as well as an ability to work effectively with others. Finally, Mr. Kelly-Jones brings a diversity of viewpoint, background and experience to the Board.

**Nancy M. Morris** has more than 30 years' experience and leadership within the investment management industry, most recently as Chief Compliance Officer of a large asset manager. During the course of her career, Ms. Morris served as Secretary of the SEC and as Deputy Chief Counsel in the Division of Investment Management. Her experience includes addressing investment company regulatory and compliance matters affecting mutual fund firms and investment advisers. Ms. Morris currently serves on the boards of other registered investment companies. Ms. Morris exhibits excellent communication skills, possesses the ability to work collaboratively, and provides diversity of viewpoint and background.

The diversity statistics of the Trustees are below:

---

| | | | |
|:---|:---|:---|:---|
| **Board Diversity Matrix** | **Board Diversity Matrix** | **Board Diversity Matrix** | **Board Diversity Matrix** |
| | **Female** | **Male** | **Non-Binary** |
| **Part I: Gender Identity** | | | |
| Trustees | 3 | 2 |  |
| **Part II: Demographic Background** |  |  |  |
| African American or Black |  | 1 |  |
| Alaskan Native or Native American |  |  |  |
| Asian |  |  |  |
| Hispanic or Latinx |  |  |  |
| Native Hawaiian or Pacific Islander |  |  |  |
| White | 3 | 1 |  |
| Two or More Races or Ethnicities |  |  |  |
| LGBTQ+ |  |  |  |

---

**CONTINUOUS OFFERING**

The method by which Creation Units of Shares are created and traded may raise certain issues under applicable securities laws. Because new Creation Units of Shares are issued and sold by the Fund on an ongoing basis, at any point a "distribution," as such term is used in the Securities Act of 1933, as amended (the "Securities Act"), may occur. Broker-dealers and other persons are cautioned that some activities on their part may, depending on the circumstances, result in their being deemed participants in a distribution in a manner which could render them statutory underwriters and subject them to the prospectus delivery requirement and liability provisions of the Securities Act.

For example, a broker-dealer firm or its client may be deemed a statutory underwriter if it takes Creation Units after placing an order with the Distributor, breaks them down into constituent shares, and sells such shares directly to customers, or if it chooses to couple the creation of a supply of new Shares with an active selling effort involving solicitation of secondary market demand for Shares. A determination of whether one is an underwriter for purposes of the Securities Act must take into account all the facts and circumstances pertaining to the activities of the broker-dealer or its client in the particular case, and the examples mentioned above should not be considered a complete description of all the activities that could lead to a categorization as an underwriter. Broker-dealer firms should also note that dealers who are not "underwriters" but are effecting transactions in Shares, whether or not participating in the distribution of Shares, generally are required to deliver a prospectus. This is because the prospectus delivery exemption in Section 4(a)(3) of the Securities Act is not available in respect of such transactions as a result of Section 24(d) of the Company Act. Firms that incur a prospectus delivery obligation with respect to Shares are reminded that, pursuant to Rule 153 under the Securities Act, a prospectus delivery obligation under Section 5(b)(2) of the Securities Act owed to an exchange member in connection with a sale on the Exchange is satisfied by the fact that the prospectus is available at the Exchange upon request. The prospectus delivery mechanism provided in Rule 153 under the Securities Act is only available with respect to transactions on an exchange.

The Adviser and/or its affiliates (each, as applicable, a "Selling Shareholder") may purchase Creation Units through a broker-dealer to "seed" (in whole or in part) the Fund upon launch or thereafter or may purchase Shares from broker-dealers or other investors that have previously provided "seed" for the Fund at its launch or otherwise in secondary market transactions. Because the Selling Shareholder may be deemed an affiliate of the Fund, the Shares will be registered to permit their resale from time to time after purchase. The Fund will not receive any of the proceeds from the resale by the Selling Shareholders of these Shares.

Any such Selling Shareholder may sell all or a portion of the Shares owned by it and offered hereby from time to time directly or through one or more broker-dealers and may also hedge such positions. The Shares may be sold on any national securities exchange on which the Shares are listed or quoted at the time of sale, in the over-the-counter market or in transactions other than on these exchanges or systems at fixed prices, at prevailing market prices at the time of the sale, at varying prices determined at the time of sale, or at negotiated prices. These sales may be effected in transactions, which may involve crosses or block transactions. A Selling Shareholder may use any one or more of the following methods when selling Shares:

● ordinary brokerage transactions through brokers or dealers (who may act as agents or principals) or directly to one or more purchasers;

● privately negotiated transactions;

● through the writing or settlement of options or other hedging transactions, whether such options are listed on an options exchange or otherwise; and

● any other method permitted pursuant to applicable law.

A Selling Shareholder may also loan or pledge shares to broker-dealers that in turn may sell such Shares, to the extent permitted by applicable law. A Selling Shareholder may also enter into options or other transactions with broker-dealers or other financial institutions, or the creation of one or more derivative securities that require the delivery to such broker-dealer or other financial institution of Shares, which Shares such broker-dealer or other financial institution may resell.

A Selling Shareholder and any broker-dealer or agents participating in the distribution of Shares may be deemed to be "underwriters" within the meaning of Section 2(a)(11) of the Securities Act in connection with such sales. In such event, any commissions paid to any such broker-dealer or agent and any profit on the resale of the Shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act.

Any such Selling Shareholder who may be deemed an "underwriter" within the meaning of Section 2(a)(11) of the Securities Act will be subject to the applicable prospectus delivery requirements of the Securities Act. As of the date of this SAI, the Fund is not aware of any Selling Shareholder that has a written or oral agreement or understanding, directly or indirectly, with any person to distribute Shares. Upon the Fund being notified in writing by a Selling Shareholder that any material arrangement has been entered into with a broker-dealer for the sale of Shares through a block trade, special offering, exchange distribution or secondary distribution or a purchase by a broker or dealer, the Fund intends to supplement this SAI, if required, pursuant to Rule 497 under the Securities Act, to disclose: (i) the name of such Selling Shareholder and of the participating broker-dealer(s); (ii) the number of Shares involved; (iii) the price at which such Shares were sold; (iv) the commissions paid or discounts or concessions allowed to such broker-dealer(s), where applicable; (v) that such broker-dealer(s) did not conduct any investigation to verify the information set out or incorporated by reference in the Fund's Prospectus and SAI; and (vi) other facts material to the transaction.

A Selling Shareholder and any other person participating in such distribution will be subject to applicable provisions of the Securities Exchange Act of 1934, as amended ("Exchange Act"), and the rules and regulations thereunder, including, without limitation, to the extent applicable, Regulation M of the Exchange Act, which may limit the timing of purchases and sales of any of the Shares by the Selling Shareholder and any other participating person. To the extent applicable, Regulation M may also restrict the ability of any person engaged in the distribution of Shares to engage in market-making activities with respect to the Shares. All of the foregoing may affect the marketability of the Shares and the ability of any person or entity to engage in market-making activities with respect to the Shares. There is a risk that the Selling Shareholder may redeem its investments in the Fund or otherwise sell its Shares to a third party that may redeem. As with redemptions by other large shareholders, such redemptions could have a significant negative impact on the Fund.

**PORTFOLIO TRANSACTIONS AND BROKERAGE**

Subject to policies established by the Board, the Adviser is responsible for the Fund's portfolio decisions and the placing of the Fund's portfolio transactions. In placing portfolio transactions, the Adviser seeks the best qualitative execution for the Fund, taking into account such factors as price (including the applicable brokerage commission or dealer spread), the execution capability, financial responsibility and responsiveness of the broker or dealer, and the brokerage and research services provided by the broker or dealer. The Adviser generally seeks favorable prices and commission rates that are reasonable in relation to the benefits received.

The Adviser is specifically authorized to select brokers or dealers who also provide brokerage and research services to the Fund and/or the other accounts over which the Adviser exercises investment discretion and to pay such brokers or dealers a commission in excess of the commission another broker or dealer would charge if the Adviser determines in good faith that the commission is reasonable in relation to the value of the brokerage and research services provided. The determination may be viewed in terms of a particular transaction or the Adviser's overall responsibilities with respect to the Trust and to other accounts over which it exercises investment discretion.

Research services include supplemental research, securities and economic analyses, statistical services and information with respect to the availability of securities or purchasers or sellers of securities, and analyses of reports concerning performance of accounts. The research services and other information furnished by brokers through whom the Fund effects securities transactions may also be used by the Adviser in servicing all of its accounts. Similarly, research and information provided by brokers or dealers serving other clients may be useful to the Adviser in connection with its services to the Fund.

The Adviser has entered into Client Commission Agreements with broker/dealers that are involved from time to time in executing, clearing, or settling securities transactions on behalf of the Fund ("CCA Brokers") that provide for the CCA Brokers to pay a portion of the commissions paid by the Fund for securities transactions ("CCA Commissions") to providers of research services. Because these research service providers may play no role in executing client securities transactions, any research prepared by that research service provider may constitute third party research. Adviser may use brokerage commissions, including CCA Commissions, from the Fund's portfolio transactions to acquire research, subject to the procedures and limitations provided in this section.

From time to time, the Adviser prepares a list of providers of research services that have been deemed by the Adviser to provide valuable research ("Research Firms") as determined by Adviser's investment staff. CCA Brokers are eligible to be included in the list of Research Firms. All trades with Research Firms will be effected in accordance with Adviser's obligation to seek best execution for its client accounts. The Adviser uses a vote by its investment staff as a guide for allocating CCA Commissions. Compensation for research may also be made pursuant to commissions paid on trades executed by a Research Firm who is registered as a broker-dealer ("Research Broker"). Under normal circumstances, CCA Brokers are compensated for research solely through trade commissions. To the extent that payments for research to a Research Broker other than a CCA Broker are made pursuant to trade commissions, the Adviser will reduce the amount of CCA Commissions to be paid to that Research Broker for its research. However, the Adviser will reduce the amount of CCA Commissions to be paid to that Research Broker by less than the full amount of trade commissions paid to that Research Broker. Neither the Adviser nor the Fund has an obligation to any Research Firm if the amount of trade commissions and CCA Commissions paid to the Research Firm is less than the applicable non-binding target. The Adviser reserves the right to pay cash to a Research Firm from its own resources in an amount the Adviser determines in its discretion.

The products and services acquired by the Adviser in connection with such arrangements are intended to comply with Section 28(e) of the Securities Act and the SEC's related interpretive guidance. The Adviser will not cause the Fund or its clients to use trade commissions or CCA Commissions for purposes other than for eligible research and brokerage services or products.

When the Fund and another of the Adviser's clients seek to purchase or sell the same security at or about the same time, the Adviser may execute the transaction on a combined ("blocked") basis, through one or more broker-dealers, provided that the block is done in a fair and equitable manner and is determined to be timely and in the best interest of each client. Blocked transactions can produce better execution for the Fund and other accounts managed by the Adviser because of the increased volume of each such transaction. If the entire blocked order is not filled, the Fund may not be able to acquire as large a position in such security as it desires, or it may have to pay a higher price for the security. Similarly, the Fund may not be able to obtain as large an execution of an order to sell, or as high a price for any particular portfolio security, if the Adviser is selling the same portfolio security for its other client accounts at the same time. In the event that the entire blocked order is not filled, the shares are generally allocated on a pro-rata basis to the appropriate client accounts. All blocked orders are allocated to the participating accounts at average cost.

The Fund paid the following brokerage commissions for the following fiscal periods:

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| | | | |
|:---|:---|:---|:---|
| | **Fiscal Year Ended<br> December 31, 2025** | **Fiscal Year Ended<br> December 31, 2024** | **Fiscal Year Ended<br> December 31, 2023** |
| Large Cap Concentrated ETF<sup>1</sup> | $8449 | $4119 | $5273 |

---

 

<sup>1</sup> Brokerage commissions were paid by the Predecessor Fund for periods prior to September 26, 2025.

During the last fiscal year, the Adviser, through agreements or understandings with brokers, or otherwise through an internal allocation procedure, directed the brokerage transactions of the Fund to brokers because of research services provided. The following table indicates the amount of these transactions and related commission paid during the period.

**** 

---

| | | |
|:---|:---|:---|
| | **Amount of Transactions to<br> Brokers Providing Research** | **Related Commissions** |
| Large Cap Concentrated ETF | $34069130 | $6551 |

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**Securities of Regular Broker-Dealers** 

**** 

The table below presents information regarding the securities of the Fund's regular broker-dealers (or the parent of the regular broker-dealer) that were held by the Fund as of December 31, 2025.

**** 

---

| | | |
|:---|:---|:---|
| | **Regular Broker-Dealer** | **Holdings ($000s)** |
| Large Cap Concentrated ETF |  |  |

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**Portfolio Holdings Disclosure**

Each Business Day (as defined below), the Fund's portfolio holdings information will be made available on the Fund's website at www.diamond-hill.com and will generally be provided for dissemination through the facilities of the National Securities Clearing Corporation ("NSCC") and/or other fee-based subscription services to NSCC members and/or subscribers to those other fee-based subscription services, including Authorized Participants (as defined below), and to entities that publish and/or analyze such information in connection with the process of purchasing or redeeming Creation Units or trading shares of the Fund in the secondary market.

Access to information concerning the Fund's portfolio holdings is permitted to be disclosed to personnel of third-party service providers, including the Fund's custodian, transfer agent, auditors, sub-administrator, and counsel, as may be necessary to conduct business in the ordinary course in a manner consistent with such service providers' agreements with the Trust on behalf of the Fund. Such service providers shall not disseminate non-public Fund information.

The Distributor (as defined below) may also make available portfolio holdings information to other institutional market participants and entities that provide information services. This information typically reflects the Fund's anticipated holdings on the following Business Day. Other than portfolio holdings information made available in connection with the creation/redemption process, as discussed above, portfolio holdings information that is not filed with the SEC or posted on the publicly available website online may be provided to third parties only in limited circumstances, as described below.

Exception to the Fund's normal business practice with respect to portfolio holdings disclosure may be made, provided that the disclosure is deemed to be in the best interests of shareholders and the party receiving the portfolio holdings signs a confidentiality agreement or the policies of the recipient are determined to be adequate to protect the integrity and confidentiality of the information. In no event shall portfolio holdings information be disclosed for compensation. In order to avoid conflicts of interest between the Fund's shareholders and the Adviser, any exceptions must be approved in writing by the Fund's President and Treasurer and any such exceptions granted will be presented to the Board on a quarterly basis for their review.

Consistent with applicable law, portfolio holdings of the Fund will also be disclosed on a quarterly basis on forms required to be filed with the SEC as follows: (i) portfolio holdings as of the end of each fiscal year ending December 31 will be filed as part of the annual report filed on Form N-CSR; (ii) portfolio holdings as of the end of each month will be filed on Form N-PORT; and (iii) portfolio holdings as of the end of the six-month period ending June 30 will be filed as part of the semi-annual report filed on Form N-CSR. The Fund's Form N-CSR and Form N-PORT (at quarter-end) will be available on the SEC's website at www.sec.gov.

**PAYMENTS TO FINANCIAL INTERMEDIARIES**

**Payment of Additional Cash Compensation** 

On occasion, the Adviser may make payments out of its resources and legitimate profits, which may include profits the Adviser derives from investment advisory fees paid by the Fund, to financial intermediaries as incentives to market the Fund, to cooperate with the Adviser's promotional efforts, or in recognition of the provision of administrative services and marketing and/or processing support. These payments are often referred to as "additional cash compensation" or "revenue sharing". The payments are made pursuant to agreements between financial intermediaries and the Adviser and do not affect the price investors pay to invest in Shares of the Fund, the amount the Fund will receive as proceeds from such sales, or the amount of other expenses paid by the Fund.

Additional cash compensation payments may be used to pay financial intermediaries for: (i) transaction support, including any one-time charges for establishing access to Fund Shares on particular trading systems (known as "platform access fees"); (ii) program support, such as expenses related to including the Fund in retirement programs, fee-based advisory or wrap fee programs, fund supermarkets, bank or trust company products, and/or insurance programs (*e.g.*, individual or group annuity contracts); (iii) placement by a financial intermediary on its offered, preferred, or recommended fund list; (iv) marketing support, such as providing representatives of the Adviser access to sales meetings, sales representatives and management representatives; (v) firm support, such as business planning assistance, advertising, and assistance with educating sales personnel about the Fund and shareholder financial planning needs; and (vi) providing other distribution-related or asset retention services. Additional cash compensation payments generally are structured as basis point payments on assets, gross or net sales or, in the case of platform access fees, fixed dollar amounts.

Neither the Adviser nor Foreside Financial Services, LLC (the "Distributor") made any payments of additional cash compensation in the last fiscal year. During the year ended December 31, 2025, the following broker-dealers offering shares of the Predecessor Fund, and/or their respective affiliates, received additional cash compensation or similar distribution related payments from the Adviser for providing marketing and program support, administrative services, and/or other services as described above:

**Ameriprise Financial Services, Inc.**

**Charles Schwab & Co., Inc.**

**Edward D. Jones & Co., L.P.**

**Fidelity Investments Institutional Operations Company, Inc.**

**John Hancock Life Insurance Company of New York**

**John Hancock Life Insurance Company (U.S.A.)**

**LPL Financial LLC**

**Morgan Stanley Smith Barney LLC**

**National Financial Services LLC**

**Nationwide Financial Services, Inc.**

**Pershing LLC**

**PNC Investments LLC**

**Principal Life Insurance Company**

**Steward Partners Global Advisory**

**Transamerica**

**UBS Financial Services, Inc.**

**Wells Fargo Advisors, LLC**

In addition to member firms of the Financial Industry Regulatory Authority, Inc., the Adviser also reserves the ability to make payments, as described above, to other financial intermediaries that sell or provide services to the Fund and shareholders, such as banks, insurance companies, and plan administrators. These firms are not included in this list and may include affiliates of the Adviser. You should ask your financial intermediary whether it receives additional cash compensation payments, as described above, from the Adviser.

The Adviser may also pay non-cash compensation to financial intermediaries and their representatives in the form of: (i) occasional gifts; (ii) occasional meals, tickets or other entertainment; and/or (iii) sponsorship support of regional or national conferences or seminars. Such non-cash compensation will be made subject to applicable law.

**DETERMINATION OF SHARE PRICE**

The price of the Shares of the Fund is based on the Fund's NAV per Share next determined after the order is received. The NAV is calculated at the close of trading (normally 4:00 p.m., Eastern Time ("ET")) on each day the Exchange is open for business ("open business day"). Should the Exchange experience an unexpected market closure or restriction on trading during or on what is expected to be an open business day, the Fund will make a determination whether to calculate the NAV at the times as described above (and value the securities as described below in this SAI and in the Prospectus) or to suspend the determination of the NAV based on available information at the time of or during the unexpected closure or restriction on trading. Only Authorized Participants may buy and redeem shares from the Fund at NAV.

**HOW TO BUY AND SELL SHARES**

Most investors will buy and sell shares throughout the day in secondary market transactions through brokers. The price at which an investor buys or sells shares (*i.e.*, the market price) may be more or less than the NAV of the shares. When buying or selling shares through a broker, investors will incur customary brokerage commissions and charges and may pay some or all of the spread between the bid and the offered prices in the secondary market on each leg of a round trip (purchase and sale) transaction.

Only Authorized Participants may buy and redeem shares from the Fund directly and those transactions are made only in Creation Units.

*Creation Units* 

 ****

The Fund sells and redeems Shares in Creation Units on a continuous basis through the Distributor, without a sales load, at the NAV next determined after receipt of an order in proper form on any Business Day. A "Business Day" is any day on which the Exchange is open for business. As of the date of this SAI, the Exchange observes the following holidays: New Year's Day, Martin Luther King, Jr. Day, Presidents' Day, Good Friday, Memorial Day, Juneteenth National Independence Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day.

*Authorized Participants*

 

Only Authorized Participants that have entered into agreements with the Distributor may purchase or redeem Creation Units. In order to be an Authorized Participant, a firm must be either a broker-dealer or other participant ("Participating Party") in the Continuous Net Settlement System ("Clearing Process") of the NSCC or a participant in DTC with access to the DTC system ("DTC Participant"), and the Authorized Participant must execute an agreement ("Participant Agreement") with the Distributor that governs transactions in the Fund's Creation Units. There are expected to be a limited number of Authorized Participants that have entered into Participant Agreements with the Fund at any one time.

Investors who are not Authorized Participants but want to transact in Creation Units may contact the Distributor for the names of Authorized Participants. An Authorized Participant may require investors to enter into a separate agreement to transact through it for Creation Units and may require orders for purchases of shares placed with it to be in a particular form. Investors transacting through a broker that is not itself an Authorized Participant must still transact through an Authorized Participant and may incur additional charges.

Orders must be transmitted by an Authorized Participant by a transmission method acceptable to the Distributor. Market disruptions and telephone or other communication failures may impede the transmission of orders.

*Transaction Fees*

 

A fixed fee payable to State Street Bank and Trust Company ("State Street" or "Custodian") is imposed on each creation and redemption transaction regardless of the number of Creation Units involved in the transaction ("Fixed Fee"). Purchases and redemptions of Creation Units for cash or involving cash-in-lieu (as defined below) are required to pay an additional variable charge to compensate the Fund and its ongoing shareholders for brokerage and market impact expenses relating to Creation Unit transactions ("Variable Charge," and together with the Fixed Fee, the "Transaction Fees"). The Adviser may waive or adjust the Transaction Fees, including the Fixed Fee and/or Variable Charge (shown in the table below), from time to time. In such cases, the Authorized Participant will reimburse the Fund for, among other things, any difference between the market value at which the securities and/or financial instruments were purchased by the Fund and the cash-in-lieu amount, applicable registration fees, brokerage commissions and certain taxes. In addition, purchasers of Creation Units are responsible for the costs of transferring the Deposit Securities to the account of the Fund.

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| | |
|:---|:---|
| **Fee for In-Kind and Cash Purchases and Redemptions** | **Maximum Additional Variable Charge for Cash Purchases\*** |
| $150 In-Kind, $100 Cash | 2% |

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\* As a percentage of the amount invested.

*The Clearing Process*

 

Transactions by an Authorized Participant that is a Participating Party using the NSCC system are referred to as transactions "through the Clearing Process." Transactions by an Authorized Participant that is a DTC Participant using the DTC system are referred to as transactions "outside the Clearing Process." The Clearing Process is an enhanced clearing process that is available only for certain securities and only to DTC participants that are also participants in the Clearing Process of the NSCC. In-kind (portions of) purchase orders not subject to the Clearing Process will go through a manual clearing process run by DTC. Fund Deposits that include cash may be delivered through the Clearing Process or the Federal Reserve Bank wire transfer system.

*Purchasing Creation Units*

 

<u>Portfolio Deposit</u>

The consideration for a Creation Unit generally consists of the Deposit Securities and a Cash Component. Together, the Deposit Securities and the Cash Component constitute the "Portfolio Deposit." The Cash Component is comprised of a "Balancing Amount" as well as any cash in lieu of securities (as described below). The Balancing Amount serves the function of compensating for any differences between the NAV per Creation Unit and the Deposit Securities. Thus, the Balancing Amount is equal to the difference between (x) the NAV per Creation Unit of the Fund and (y) the market value of the Deposit Securities. If (x) is more than (y), the Authorized Participant will pay the Balancing Amount to the Fund. If (x) is less than (y), the Authorized Participant will receive the Balancing Amount from the Fund. Computation of the Cash Component excludes any stamp duty or other similar fees and expenses payable upon transfer of beneficial ownership of the Deposit Securities, if applicable, which shall be the sole responsibility of the Authorized Participant.

On each Business Day, prior to the opening of business on the Exchange (currently 9:30 a.m., ET), the Adviser or its agent through the Custodian makes available through NSCC the name and amount of each Deposit Security in the current Portfolio Deposit (based on information at the end of the previous Business Day) for the Fund and the (estimated) Cash Component, effective through and including the previous Business Day, per Creation Unit. The Deposit Securities announced are applicable to purchases of Creation Units until the next announcement of Deposit Securities.

<u>Cash-in-Lieu</u>

The Fund may, in its sole discretion, permit or require the substitution of an amount of cash ("cash-in-lieu") to be added to the Cash Component to replace any Deposit Security. The Fund may permit or require cash-in-lieu when, for example, a Deposit Security may not be available in sufficient quantity for delivery or may not be eligible for transfer through the systems of DTC or the Clearing Process. Similarly, the Fund may permit or require cash in lieu of Deposit Securities when, for example, the Authorized Participant or its underlying investor is restricted under U.S. or local securities laws or policies from transacting in one or more Deposit Securities. The Fund will comply with the federal securities laws in accepting Deposit Securities including that the Deposit Securities are sold in transactions that would be exempt from registration under the Securities Act. Most orders involving cash-in-lieu, as well as certain other types of orders, are considered to be "Custom Baskets." The Fund may enter into other types of Custom Baskets (as described below).

<u>Custom Baskets</u>

The Fund may utilize Custom Baskets provided that certain conditions are met. A "Custom Basket" is (i) a basket that is composed of a non-representative selection of the Fund's portfolio holdings, (ii) a representative Basket that is different from the initial Basket used in transactions on the same Business Day, or (iii) a Basket that contains bespoke cash and/or security substitutions, including for a single Authorized Participant. The Trust has adopted policies and procedures that govern the construction and acceptance of baskets, including heightened requirements for Custom Baskets. Such policies and procedures provide detailed parameters for the construction and acceptance of Custom Baskets, establish processes for revisions to, or deviations from, such parameters, and specify the titles and roles of the employees of the Adviser who are required to review each Custom Basket for compliance with those parameters. In connection with the construction and acceptance of Custom Baskets, the Adviser may consider various factors, including, but not limited to: (1) how the Custom Basket contributes to the tax efficiency of the Fund; (2) an Authorized Participant's ability to deliver particular securities; (3) whether the Custom Basket assists the Fund in effectuating a rebalance or turnover of the Fund's portfolio; (4) whether the Custom Basket assists the Fund in meeting redemption requests; (5) whether the Custom Basket increases the liquidity of the Fund's portfolio; and (6) other baskets created and redeemed on a particular day. In all instances, in using Custom Baskets, the Adviser will seek to achieve the Fund's investment objective and follow its principal investment strategy. The policies and procedures distinguish among different types of Custom Baskets that may be used and impose different requirements for different types of Custom Baskets in order to seek to mitigate against potential risks of conflicts and/or overreaching by an Authorized Participant.

<u>Purchase Orders</u>

To order a Creation Unit, an Authorized Participant must submit an irrevocable purchase order to the Distributor.

<u>Timing of Submission of Purchase Orders</u>

An Authorized Participant must submit an irrevocable purchase order no later than the earlier of (i) 3:00 p.m. ET or (ii) the closing time of the trading session on the Exchange, on any Business Day in order to receive that Business Day's NAV ("Cut-off Time"). The Cut-off Time for Custom Baskets is generally one hour earlier. The Business Day the order is deemed received by the Distributor is referred to as the "Transmittal Date." An order to create Creation Units is deemed received on a Business Day if (i) such order is received by the Distributor by the Cut-off Time on such day and (ii) all other procedures set forth in the Participant Agreement are properly followed. Persons placing or effectuating Custom Baskets and/or orders involving cash should be mindful of time deadlines imposed by intermediaries, such as DTC and/or the Federal Reserve Bank wire system, which may impact the successful processing of such orders to ensure that cash and securities are transferred by the "Settlement Date," which is generally the Business Day immediately following the Transmittal Date ("T+1").

<u>Orders Using the Clearing Process</u>

If available, (portions of) orders may be settled through the Clearing Process. In connection with such orders, the Distributor transmits, on behalf of the Authorized Participant, such trade instructions as are necessary to effect the creation order. Pursuant to such trade instructions, the Authorized Participant agrees to deliver the requisite Portfolio Deposit to the Fund, together with such additional information as may be required by the Distributor. Cash Components will be delivered using either the Clearing Process or the Federal Reserve System.

<u>Orders Outside the Clearing Process</u>

If the Clearing Process is not available for (portions of) an order, Portfolio Deposits will be made outside the Clearing Process. Orders outside the Clearing Process must state that the DTC Participant is not using the Clearing Process and that the creation of Creation Units will be effected through DTC. The Portfolio Deposit transfer must be ordered by the DTC Participant on the Transmittal Date in a timely fashion so as to ensure the delivery of Deposit Securities (whether standard or custom) through DTC to the Fund account by 3:00 p.m., ET, on T+1. The Cash Component, along with any cash-in-lieu and Transaction Fee, must be transferred directly to the Custodian through the Federal Reserve System in a timely manner so as to be received by the Custodian no later than 12:00 p.m., ET, on T+1. If the Custodian does not receive both the Deposit Securities and the cash by the appointed time, the order may be canceled. A canceled order may be resubmitted the following Business Day but must conform to that Business Day's Portfolio Deposit. Authorized Participants that submit a canceled order will be liable to the Fund for any losses incurred by the Fund in connection therewith.

<u>Acceptance of Purchase Order</u>

All questions as to the number of shares of each security in the Deposit Securities and the validity, form, eligibility and acceptance for deposit of any securities to be delivered shall be determined by the Fund. The Fund's determination shall be final and binding.

The Fund reserves the absolute right to reject or revoke acceptance of a purchase order transmitted to it by the Distributor if (i) the order is not in proper form; (ii) the investor(s), upon obtaining the shares ordered, would own 80% or more of the currently outstanding shares of the Fund; (iii) the Deposit Securities delivered do not conform to the Deposit Securities for the applicable date; (iv) the acceptance of the Portfolio Deposit would, in the opinion of counsel, be unlawful; or (v) in the event that circumstances outside the control of the Trust, the Distributor and the Adviser make it for all practical purposes impossible to process purchase orders. Examples of such circumstances include acts of God; public service or utility problems resulting in telephone, telecopy or computer failures; fires, floods or extreme weather conditions; market conditions or activities causing trading halts; systems failures involving computer or other informational systems affecting the Trust, the Distributor, DTC, NSCC, the Adviser, the Custodian, a sub-custodian or any other participant in the creation process; and similar extraordinary events. The Distributor shall notify an Authorized Participant of its rejection of the order. The Fund, the Custodian, any sub-custodian and the Distributor are under no duty, however, to give notification of any defects or irregularities in the delivery of Portfolio Deposits, and they shall not incur any liability for the failure to give any such notification.

<u>Issuance of a Creation Unit</u>

Once the Fund has accepted an order, upon next determination of the Fund's NAV, the Fund will confirm the issuance of a Creation Unit, against receipt of payment, at such NAV. The Distributor will transmit a confirmation of acceptance to the Authorized Participant that placed the order.

Except as provided below, a Creation Unit will not be issued until the Fund obtains good title to the Deposit Securities and the Cash Component, along with any cash-in-lieu and Transaction Fee. The delivery of Creation Units will generally occur no later than T+1 except with respect to certain foreign securities.

While the Fund generally intends to pay for redemptions of Creation Units on a basis of T+1, the Fund reserves the right to settle redemption transactions on a basis other than T+1, if necessary or appropriate under the circumstances and compliant with applicable law. The Fund may settle Creation Unit transactions on a basis other than T+1 in order to accommodate foreign market holiday schedules, to account for different treatment among foreign and U.S. markets of dividend record dates and ex-dividend dates (that is the last day the holder of a security can sell the security and still receive dividends payable on the security), and in certain other circumstances. In addition to holidays, other unforeseeable closings in a market due to emergencies may also prevent the Fund from delivering securities within the normal settlement period. The securities delivery cycles currently practicable for transferring foreign portfolio securities to redeeming Authorized Participants, coupled with foreign market holiday schedules, may require a delivery process longer than the standard settlement period. Pursuant to SEC rule, the Fund will be required to deliver such foreign portfolio securities in not more than 15 calendar days. The proclamation of new holidays, the treatment by market participants of certain days as "informal holidays" (e.g., days on which no or limited securities transactions occur, as a result of substantially shortened trading hours), the elimination of existing holidays, or changes in securities delivery practices, could affect the information set forth herein at some time in the future and longer (worse) redemption periods are possible.

The Fund may issue a Creation Unit prior to receiving good title to the Deposit Securities, under the following circumstances. Pursuant to the applicable Participant Agreement, the Fund may issue a Creation Unit notwithstanding that (certain) Deposit Securities have not been delivered, in reliance on an undertaking by the relevant Authorized Participant to deliver the missing Deposit Securities as soon as possible, which undertaking is secured by such Authorized Participant's delivery to and maintenance with the Custodian of collateral having a value equal to at least 103% of the value of the missing Deposit Securities ("Collateral"), as adjusted by time to time by the Adviser. Such Collateral will have a value greater than the NAV of the Creation Unit on the date the order is placed. Such Collateral must be delivered no later than 2:00 p.m., ET, on T+1. The only Collateral that is acceptable to the Fund is cash in U.S. Dollars.

While (certain) Deposit Securities remain undelivered, the Collateral shall at all times have a value equal to at least 103% (as adjusted by the Adviser) of the daily marked-to-market value of the missing Deposit Securities. At any time, the Fund may use the Collateral to purchase the missing securities, and the Authorized Participant will be liable to the Fund for any costs incurred thereby or losses resulting therefrom, whether or not they exceed the amount of the Collateral, including any Transaction Fee, any amount by which the purchase price of the missing Deposit Securities exceeds the market value of such securities on the Transmittal Date, brokerage and other transaction costs. The Trust will return any unused Collateral once all of the missing securities have been received by the Fund. More information regarding the Fund's current procedures for collateralization is available from the Distributor.

<u>Cash Purchase Method</u>

When cash purchases of Creation Units are available or specified for the Fund, they will be effected in essentially the same manner as in-kind purchases. In the case of a cash purchase, the investor must pay the cash equivalent of the Portfolio Deposit. In addition, cash purchases will be subject to Transaction Fees, as described above.

*Redeeming a Creation Unit*

 

<u>Redemption Basket</u>

The consideration received in connection with the redemption of a Creation Unit generally consists of an in-kind basket of designated securities ("Redemption Securities") and a Cash Component. Together, the Redemption Securities and the Cash Component constitute the "Redemption Basket." The cash redemptions of Creation Units is described below under "Cash Redemption Method".

There can be no assurance that there will be sufficient liquidity in Shares in the secondary market to permit assembly of a Creation Unit. In addition, investors may incur brokerage and other costs in connection with assembling a Creation Unit.

The Cash Component serves the function of compensating for any differences between the NAV per Creation Unit and the Redemption Securities. Thus, the Cash Component is equal to the difference between (x) the NAV per Creation Unit of the Fund and (y) the market value of the Redemption Securities. If (x) is more than (y), the Authorized Participant will receive the Cash Component from the Fund. If (x) is less than (y), the Authorized Participant will pay the Cash Component to the Fund.

If the Redemption Securities on a Business Day are different from the Deposit Securities, prior to the opening of business on the Exchange (currently 9:30 a.m., ET), the Adviser or an agent through the Custodian makes available through NSCC the name and amount of each Redemption Security in the current Redemption Basket (based on information at the end of the previous Business Day) for the Fund and the (estimated) Cash Component, effective through and including the previous Business Day, per Creation Unit. If the Redemption Securities on a Business Day are different from the Deposit Securities, all redemption requests that day will be processed outside the Clearing Process.

An Authorized Participant's right of redemption may be suspended or the date of payment postponed: (i) for any period during which the NYSE is closed (other than customary weekend and holiday closings); (ii) for any period during which trading on the NYSE is suspended or restricted; (iii) for any period during which an emergency exists as a result of which disposal of the Shares or determination of the ETF's NAV is not reasonably practicable; or (iv) in such other circumstances as permitted by the SEC, including as described below.

<u>Cash-in-Lieu</u>

The Fund may, in its sole discretion, permit or require the substitution of cash-in-lieu to be added to the Cash Component to replace any Redemption Security. The Fund may permit or require cash-in-lieu when, for example, a Redemption Security may not be available in sufficient quantity for delivery or may not be eligible for transfer through the systems of DTC or the Clearing Process. Similarly, the Fund may permit or require cash-in-lieu of Redemption Securities when, for example, the Authorized Participant or its underlying investor is restricted under U.S. or local securities law or policies from transacting in one or more Redemption Securities. The Fund will comply with the federal securities laws in satisfying redemptions with Redemption Securities, including that the Redemption Securities are sold in transactions that would be exempt from registration under the Securities Act. All redemption requests involving cash-in-lieu are considered to be Custom Baskets.

<u>Custom Baskets</u>

The Fund may utilize Custom Baskets provided that certain conditions are met. A "Custom Basket" is (i) a basket that is composed of a non-representative selection of the Fund's portfolio holdings, (ii) a representative Basket that is different from the initial Basket used in transactions on the same Business Day, or (iii) a Basket that contains bespoke cash and/or security substitutions, including for a single Authorized Participant. The Trust has adopted policies and procedures that govern the construction and acceptance of baskets, including heightened requirements for Custom Baskets. Such policies and procedures provide detailed parameters for the construction and acceptance of Custom Baskets, establish processes for revisions to, or deviations from, such parameters, and specify the titles and roles of the employees of the Adviser who are required to review each Custom Basket for compliance with those parameters. In connection with the construction and acceptance of Custom Baskets, the Adviser may consider various factors, including, but not limited to: (1) how the Custom Basket contributes to the tax efficiency of the Fund; (2) an Authorized Participant's ability to deliver particular securities; (3) whether the Custom Basket assists the Fund in effectuating a rebalance or turnover of the Fund's portfolio; (4) whether the Custom Basket assists the Fund in meeting redemption requests; (5) whether the Custom Basket increases the liquidity of the Fund's portfolio; and (6) other baskets created and redeemed on a particular day. In all instances, in using Custom Baskets, the Adviser will seek to achieve the Fund's investment objective and follow its principal investment strategy. The policies and procedures distinguish among different types of Custom Baskets that may be used and impose different requirements for different types of Custom Baskets in order to seek to mitigate against potential risks of conflicts and/or overreaching by an Authorized Participant.

<u>Redemption Requests</u>

To redeem a Creation Unit, an Authorized Participant must submit an irrevocable redemption request to the Distributor.

An Authorized Participant submitting a redemption request is deemed to represent to the Fund that it or, if applicable, the investor on whose behalf it is acting, (i) owns outright or has full legal authority and legal beneficial right to tender for redemption the Creation Unit to be redeemed and can receive the entire proceeds of the redemption, and (ii) all of the Shares that are in the Creation Unit to be redeemed have not been borrowed, loaned or pledged to another party nor are they the subject of a repurchase agreement, securities lending agreement or such other arrangement that would preclude the delivery of such Shares to the Fund. The Fund reserves the absolute right, in its sole discretion, to verify these representations, but will typically require verification in connection with higher levels of redemption activity and/or short interest in the Fund. If the Authorized Participant, upon receipt of a verification request, does not provide sufficient verification of the requested representations, the redemption request will not be considered to be in proper form and may be rejected by the Fund.

<u>Timing of Submission of Redemption Requests</u>

An Authorized Participant must submit an irrevocable redemption order no later than the Cut-off Time. The Cut-off Time for Custom Baskets is generally one hour earlier. The Business Day the order is deemed received by the Distributor is referred to as the "Transmittal Date." A redemption request is deemed received if (i) such order is received by the Distributor by the Cut-off Time on such day and (ii) all other procedures set forth in the Participant Agreement are properly followed. Persons placing or effectuating Custom Redemptions and/or orders involving cash should be mindful of time deadlines imposed by intermediaries, such as DTC and/or the Federal Reserve System, which may impact the successful processing of such orders to ensure that cash and securities are transferred by the Settlement Date, as defined above.

<u>Requests Using the Clearing Process</u>

If available, (portions of) redemption requests may be settled through the Clearing Process. In connection with such orders, the Distributor transmits on behalf of the Authorized Participant, such trade instructions as are necessary to effect the redemption. Pursuant to such trade instructions, the Authorized Participant agrees to deliver the requisite Creation Unit(s) to the Fund, together with such additional information as may be required by the Distributor. Cash Components will be delivered using either the Clearing Process or the Federal Reserve System, as described above.

<u>Requests Outside the Clearing Process</u>

If the Clearing Process is not available for (portions of) an order, Redemption Baskets will be delivered outside the Clearing Process. Orders outside the Clearing Process must state that the DTC Participant is not using the Clearing Process and that the redemption will be effected through DTC. The Authorized Participant must transfer or cause to be transferred the Creation Unit(s) of shares being redeemed through the book-entry system of DTC so as to be delivered through DTC to the Custodian by 3:00 p.m., ET, on received T+1. In addition, the Cash Component must be received by the Custodian by 12:00 p.m., ET, on T+1. If the Custodian does not receive the Creation Unit(s) and Cash Component by the appointed times on T+1, the redemption will be rejected, except in the circumstances described below. A rejected redemption request may be resubmitted the following Business Day.

Orders involving foreign Redemption Securities are expected to be settled outside the Clearing Process. Thus, upon receipt of an irrevocable redemption request, the Distributor will notify the Adviser and the Custodian. The Custodian will then provide information of the redemption to the Fund's local sub-custodian(s). The redeeming Authorized Participant, or the investor on whose behalf is acting, will have established appropriate arrangements with a broker-dealer, bank or other custody provider in each jurisdiction in which the Redemption Securities are customarily traded and to which such Redemption Securities (and any cash-in-lieu) can be delivered from the Fund's accounts at the applicable local sub-custodian(s).

<u>Acceptance of Redemption Requests</u>

All questions as to the number of shares of each security in the Deposit Securities and the validity, form, eligibility and acceptance for deposit of any securities to be delivered shall be determined by the Trust. The Trust's determination shall be final and binding.

<u>Delivery of Redemption Basket</u>

Once the Fund has accepted a redemption request, upon next determination of the Fund's NAV, the Fund will confirm the issuance of a Redemption Basket, against receipt of the Creation Unit(s) at such NAV, any cash-in-lieu and Transaction Fee. A Creation Unit tendered for redemption and the payment of the Cash Component, any cash-in-lieu and Transaction Fee will be effected through DTC. The Authorized Participant, or the investor on whose behalf it is acting, will be recorded on the book-entry system of DTC.

The Redemption Basket will generally be delivered to the redeeming Authorized Participant within T+1. Except under the circumstances described below, however, a Redemption Basket generally will not be issued until the Creation Unit(s) are delivered to the Fund, along with the Cash Component, any cash-in-lieu and Transaction Fee.

In certain cases, Authorized Participants will create and redeem Creation Units on the same trade date. In these instances, the Trust reserves the right to settle these transactions on a net basis.

<u>Cash Redemption Method</u>

When cash redemptions of Creation Units are available or specified for the Fund, they will be effected in essentially the same manner as in-kind redemptions. In the case of a cash redemption, the investor will receive the cash equivalent of the Redemption Basket minus any Transaction Fees, as described above.

*Book-Entry Only System*

 

The DTC acts as Securities Depository for the Shares. Shares are represented by securities registered in the name of DTC or its nominee and deposited with, or on behalf of, DTC, which is a limited-purpose trust company. DTC was created to hold securities of DTC Participants and to facilitate the clearance and settlement of securities transactions among DTC Participants in such securities through electronic book-entry changes in accounts of those DTC Participants, thereby eliminating the need for physical movement of securities' certificates. DTC Participants include securities brokers and dealers, banks, trust companies, clearing corporations and certain other organizations, some of whom (and/or their representatives) own DTC.

More specifically, DTC is a subsidiary of the Depository Trust and Clearing Corporation, which is owned by its member firms, including international broker/dealers, correspondent and clearing banks, mutual fund companies and investment banks. Access to the DTC system is also available to others such as banks, brokers, dealers and trust companies that clear through or maintain a custodial relationship with a DTC Participant, either directly or indirectly ("Indirect Participants"). Beneficial ownership of Shares is limited to DTC Participants, Indirect Participants and persons holding interests through DTC Participants and Indirect Participants. Ownership of beneficial interests in Shares (owners of such beneficial interests are referred to herein as "Beneficial Owners") is shown on, and the transfer of ownership is effected only through, records maintained by DTC (with respect to DTC Participants) and on the records of DTC Participants (with respect to Indirect Participants and Beneficial Owners that are not DTC Participants). Beneficial Owners will receive from or through a DTC Participant a written confirmation relating to their purchase of Shares. The laws of some jurisdictions may require that certain purchasers of securities take physical delivery of such securities in definitive form. Such laws may impair the ability of certain investors to acquire beneficial interests in Shares.

Beneficial Owners of shares are not entitled to have shares registered in their names, will not receive or be entitled to receive physical delivery of certificates in definitive form and are not considered the registered holder thereof. Accordingly, each Beneficial Owner must rely on the procedures of DTC, the DTC Participant and any Indirect Participant through which such Beneficial Owner holds its interests, to exercise any rights of a holder of Shares. The Trust understands that under existing industry practice, in the event the Trust requests any action of holders of Shares, or a Beneficial Owner desires to take any action that DTC, as the record owner of all outstanding Shares, is entitled to take, DTC would authorize the DTC Participants to take such action and that the DTC Participants would authorize the Indirect Participants and Beneficial Owners acting through such DTC Participants to take such action and would otherwise act upon the instructions of Beneficial Owners owning through them. As described above, the Trust recognizes DTC or its nominee as the owner of all Shares for all purposes.

Conveyance of all notices, statements and other communications to Beneficial Owners is effected as follows. Pursuant to the Depositary Agreement between the Trust and DTC, DTC is required to make available to the Trust, upon request and for a fee to be charged to the Trust, a listing of the Share holdings of each DTC Participant. The Trust shall inquire of each such DTC Participant as to the number of Beneficial Owners holding Shares, directly or indirectly, through such DTC Participant. The Trust shall provide each such DTC Participant with copies of such notice, statement or other communication, in such form, number and at such place as such DTC Participant may reasonably request, in order that such notice, statement or communication may be transmitted by such DTC Participant, directly or indirectly, to such Beneficial Owners. In addition, the Trust shall pay to each such DTC Participant a fair and reasonable amount as reimbursement for the expenses attendant to such transmittal, all subject to applicable statutory and regulatory requirements.

Share distributions shall be made to DTC or its nominee, Cede & Co., as the registered holder of all Shares. DTC or its nominee, upon receipt of any such distributions, shall credit immediately the DTC Participants' accounts with payments in amounts proportionate to their respective beneficial interests in Shares as shown on the records of DTC or its nominee. Payments by DTC Participants to Indirect Participants and Beneficial Owners of Shares held through such DTC Participants will be governed by standing instructions and customary practices, as is now the case with securities held for the accounts of customers in bearer form or registered in a "street name," and will be the responsibility of such DTC Participants. The Trust has no responsibility or liability for any aspects of the records relating to or notices to Beneficial Owners, or payments made on account of beneficial ownership interests in such Shares, or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests or for any other aspect of the relationship between DTC and the DTC Participants or the relationship between such DTC Participants and the Indirect Participants and Beneficial Owners owning Shares through such DTC Participants.

DTC may determine to discontinue providing its service with respect to Shares at any time by giving reasonable notice to the Trust and discharging its responsibilities with respect thereto under applicable law. Under such circumstances, the Trust shall take action either to find a replacement for DTC to perform its functions at a comparable cost or, if such a replacement is unavailable, to issue and deliver printed certificates representing ownership of Shares, unless the Trust makes other arrangements with respect thereto satisfactory to the Exchange.

**TAXES** 

The following discussion of certain U.S. federal income tax consequences is general in nature and should not be regarded as an exhaustive presentation of all possible tax ramifications. Each shareholder should consult a qualified tax advisor regarding the tax consequences of an investment in the Fund. The tax considerations relevant to a specific shareholder depend upon the shareholder's specific circumstances, and the following general summary does not attempt to discuss all potential tax considerations that could be relevant to a prospective shareholder with respect to the Trust or its investments. This general summary is based on the Code, the U.S. federal income tax regulations promulgated thereunder, and administrative and judicial interpretations thereof as of the date hereof, all of which are subject to change (potentially on a retroactive basis).

The Fund intends to qualify as a regulated investment company under Subchapter M of the Code, which requires compliance with certain requirements concerning the sources of its income, diversification of its assets, and the amount and timing of its distributions to shareholders. The in-kind creation and redemption process generally allows the Fund to transfer appreciated securities to redeeming authorized participants, thereby eliminating the need to sell securities and realize capital gains that otherwise might need to be distributed to shareholders. Such qualification does not involve supervision of management or investment practices or policies by any government agency or bureau. By so qualifying, the Fund should not be subject to federal income or excise tax on its net investment income or net capital gain, to the extent such amounts are distributed to shareholders in accordance with the applicable timing requirements.

The Fund intends to distribute substantially all of its net investment income (including any excess of net short-term capital gains over net long-term capital losses) and net capital gain (that is, any excess of net long-term capital gains over net short-term capital losses) in accordance with the timing requirements imposed by the Code and therefore should not be required to pay any federal income or excise taxes. Net capital gain for a fiscal year is computed by taking into account any capital loss carry forward of the Fund.

To be treated as a regulated investment company under Subchapter M of the Code, the Fund must also (a) derive at least 90% of its gross income from dividends, interest, payments with respect to securities loans, net income from certain publicly traded partnerships and gains from the sale or other disposition of securities or non-U.S. currencies, or other income (including, but not limited to, gains from options, futures or forward contracts) derived with respect to the business of investing in such securities or currencies, and (b) diversify its holding so that, at the end of each fiscal quarter, (i) at least 50% of the market value of the Fund's assets is represented by cash, U.S. government securities and securities of other regulated investment companies, and other securities (for purposes of this calculation, generally limited in respect of any one issuer, to an amount not greater than 5% of the market value of the Fund's assets and 10% of the outstanding voting securities of such issuer) and (ii) not more than 25% of the value of its assets is invested in the securities (other than U.S. government securities or the securities of other regulated investment companies) of any one issuer, two or more issuers which the Fund controls and which are determined to be engaged in the same or similar trades or businesses, or the securities of certain publicly traded partnerships.

If the Fund fails to qualify as a regulated investment company under Subchapter M in any fiscal year, it may be treated as a corporation for federal income tax purposes. As such, the Fund would be required to pay income taxes on its net investment income and net realized capital gains, if any, at the rates generally applicable to corporations. Shareholders of the Fund generally would not be liable for income tax on the Fund's net investment income or net realized capital gains in their individual capacities. However, distributions to shareholders, whether from the Fund's net investment income or net realized capital gains, would be treated as taxable dividends to the extent of current or accumulated earnings and profits of the Fund.

As a regulated investment company, the Trust is subject to a 4% nondeductible excise tax on certain undistributed amounts of ordinary income and capital gain under a prescribed formula contained in Section 4982 of the Code. The formula requires payment to shareholders during a calendar year of distributions representing at least 98% of the Fund's ordinary income for the calendar year and at least 98.2% of its capital gain net income *(i.e.*, the excess of its capital gains over capital losses) realized during the one-year period ending October 31 during such year plus 100% of any income that was neither distributed nor taxed to the Fund during the preceding calendar year. While the Fund intends to distribute its ordinary income and capital gains in a manner so as to avoid imposition of the federal excise and income taxes, there can be no assurance that the Fund indeed will make sufficient distributions to avoid entirely the imposition of federal excise or income taxes on the Fund.

The following discussion of U.S. federal income tax consequences is for the general information of shareholders that are U.S. persons subject to tax. Shareholders that are IRAs or other qualified retirement plans generally are exempt from income taxation under the Code. Shareholders that are non-U.S. persons, IRAs or other qualified retirement plans should consult their own tax advisors regarding the tax consequences of an investment in the Fund.

Distributions of taxable net investment income (including the excess of net short-term capital gain over net long-term capital loss) generally are taxable to shareholders as ordinary income. However, distributions by the Fund to a non-corporate shareholder may be subject to income tax at the shareholder's applicable tax rate for long-term capital gain, to the extent that the Fund receives qualified dividend income on the securities it holds, the Fund properly designates the distribution as qualified dividend income, and the Fund and the non-corporate shareholder receiving the distribution meet certain holding period and other requirements. Distributions of taxable net investment income (including qualified dividend income) may be subject to an additional 3.8% Medicare tax as discussed below.

Distributions of net realized capital gain ("capital gain dividends") generally are taxable to shareholders as long-term capital gain, regardless of the length of time the shares of the Fund have been held by such shareholders. Under current law, capital gain dividends recognized by a non-corporate shareholder generally will be taxed at a maximum rate of 20%. Capital gains of corporate shareholders are taxed at the same rate as ordinary income.

Distributions of taxable net investment income and net capital gain will be taxable as described above, whether received in additional cash or Shares. All distributions of taxable net investment income and net realized capital gain, whether received in Shares or in cash, must be reported by each taxable shareholder on their federal income tax return. Dividends or distributions declared in October, November or December as of a record date in such a month, if any, will be deemed to have been received by shareholders on December 31, if paid during January of the following year. Redemptions of Shares may result in tax consequences (gain or loss) to the shareholder and are also subject to these reporting requirements.

If shares of the Fund are purchased within 30 days before or after redeeming other shares of the Fund at a loss, all or a portion of that loss will not be deductible and will increase the basis of the newly purchased shares. If shares of the Fund are sold at a loss after being held by a shareholder for six months or less, the loss will be treated as long-term, instead of a short-term, capital loss to the extent of any capital gain distributions received on the shares.

Under the Code, the Fund will be required to report to the Internal Revenue Service ("IRS") all distributions of taxable income and net realized capital gains as well as gross proceeds from the redemption or exchange of Fund shares, except in the case of certain exempt shareholders. Under the backup withholding provisions of Section 3406 of the Code, distributions of taxable net investment income and net realized capital gain and proceeds from the redemption or exchange of the Shares of a regulated investment company may be subject to withholding of federal income tax (currently, at a rate of 24%) in the case of non-exempt shareholders who fail to furnish the investment company with their taxpayer identification numbers and with required certifications regarding their status under the federal income tax law, or if the Trust is notified by the IRS or a broker that withholding is required due to an incorrect TIN or a previous failure to report taxable interest or dividends. If the withholding provisions are applicable, any such distributions and proceeds, whether taken in cash or reinvested in additional shares, will be reduced by the amounts required to be withheld.

An additional 3.8% Medicare tax generally will be imposed on certain net investment income (including ordinary dividends, qualified dividend income and capital gain distributions received from the Fund and net gains from redemptions or other taxable dispositions of Fund Shares) of U.S. individuals, estates and trusts to the extent that any such person's "modified and adjusted gross income" (in the case of an individual) or "adjusted gross income" (in the case of an estate or trust) exceeds certain threshold amounts.

Payments to a shareholder that is either a non-U.S. financial institution ("FFI") or a non-financial non-U.S. entity ("NFFE") within the meaning of the Foreign Account Tax Compliance Act ("FATCA") may be subject to a generally nonrefundable 30% withholding tax on: (i) income dividends paid by the Fund after June 30, 2014, and (ii) certain capital gain distributions and the proceeds arising from the sale of Fund Shares paid by the Fund after December 31, 2018. FATCA withholding tax generally can be avoided: (i) by an FFI, subject to any applicable intergovernmental agreement or other exemption, if it enters into a valid agreement with the IRS to, among other requirements, report required information about certain direct and indirect ownership of non-U.S. financial accounts held by U.S. persons with the FFI and (ii) by an NFFE, if it: (a) certifies that it has no substantial U.S. persons as owners or (b) if it does have such owners, reports information relating to them. The Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or other parties as necessary to comply with FATCA. Withholding also may be required if a non-U.S. entity that is a shareholder of the Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.

Shareholders should consult their tax advisors about the application of federal, state, local and non-U.S. tax law in light of their particular situation.

**CUSTODIAN AND TRANSFER AGENT**

State Street, One Congress Street, Suite 1, Boston, MA 02114 is the Custodian for the Fund's investments. The Custodian acts as the Fund's depository, safe keeps its portfolio securities, collects all income and other payments with respect thereto, disburses funds at the Fund's request and maintains records in connection with its duties.

State Street also acts as transfer, dividend disbursing, and shareholder servicing agent for the Fund pursuant to a written agreement with the Fund (the "Transfer Agent"). Under the agreement, the Transfer Agent is responsible for administering and performing transfer agent functions, dividend distribution, shareholder administration, and maintaining necessary records in accordance with applicable rules and regulations.

**SUB-FUND ACCOUNTING AGENT** 

Pursuant to an ETF Master Services Agreement entered into between Ultimus Fund Solutions, LLC ("Ultimus") and the Adviser, Ultimus acts as the Fund's sub-fund accounting agent and, in such capacity, maintains the books and records of the Fund, calculates the NAV, calculates investment performance and prepares all financial statements and regulatory filings. Fees of Ultimus under the ETF Master Services Agreement are paid by the Adviser.

**INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

The firm of Cohen & Company, Ltd., 1350 Euclid Ave., Suite 800, Cleveland, Ohio 44115, has been selected as independent registered public accounting firm for the Fund for the fiscal year ending December 31, 2026. Cohen & Company, Ltd. performs an annual audit of the Fund's financial statements and advises the Fund as to certain accounting matters.

**DISTRIBUTOR** 

Foreside Financial Services, LLC, a wholly-owned subsidiary of Foreside Financial Group, LLC (dba ACA Group) located at 190 Middle Street, Suite 301, Portland, ME 04101 is the Trust's principal underwriter and exclusive agent for distribution of the Fund's Creation Units. The Distributor continually distributes shares of the Fund on a reasonable efforts basis only against purchase orders for the Shares. The Distributor has no obligation to sell any specific quantity of Fund Shares. The Distributor and its officers have no role in determining the investment policies or which securities are to be purchased or sold by the Trust. The Distributor does not receive compensation from the Fund for its Distribution services. The Adviser pays the Distributor a fee for certain distribution-related services.

**SECURITIES LENDING AGENT**

State Street serves as the securities lending agent to the Fund. As the securities lending agent, State Street is responsible for the implementation and administration of the securities lending program pursuant to a Securities Lending Authorization Agreement ("Securities Lending Agreement"). State Street acts as agent to the Fund to lend available securities with any person on its list of approved borrowers, including State Street and certain of its affiliates. State Street determines whether a loan shall be made and negotiates and establishes the terms and conditions of the loan with the borrower. State Street ensures that all substitute interest, dividends, and other distributions paid with respect to loan securities is credited to the Fund's relevant account on the date such amounts are delivered by the borrower to State Street. State Street receives and holds, on the Fund's behalf, collateral from borrowers to secure obligations of borrowers with respect to any loan of available securities. State Street marks loaned securities and collateral to their market value each Business Day based upon the market value of the collateral and loaned securities at the close of business employing the most recently available pricing information and receives and delivers collateral in order to maintain the value of the collateral at no less than 100% of the market value of the loaned securities. At the termination of the loan, State Street returns the collateral to the borrower upon the return of the loaned securities to State Street. State Street, on behalf of the Fund, invests cash collateral into a registered investment company sponsored and managed by State Street Investment Management (the "Acquired Fund"). The Acquired Fund is available only through a private placement, is owned exclusively by the Fund and certain other funds managed by the Adviser, and is not available to the general public. Since the Fund and certain other funds managed by the Adviser own all of the shares of the Acquired Fund and its sole purpose is to benefit the shareholders of the Fund, it may be considered to be an investment company that is related to the Fund for purposes of investment and investor services. State Street maintains such records as are reasonably necessary to account for loans that are made and the income derived therefrom and makes available to the Fund a monthly statement describing the loans made, and the income derived from the loans, during the period. State Street performs compliance monitoring and testing of the securities lending program and provides quarterly reporting to the Board. The Fund did not earn income or pay fees and compensation to service providers related to securities lending activities during the year ended December 31, 2025.

**PRINCIPAL HOLDERS OF OUTSTANDING SHARES**

As of January 31, 2026, the following persons owned of record 5% or more of the Fund's outstanding Shares. A person owning of record, for the benefit of others, more than 25% of the Fund's outstanding Shares may be deemed to control the Fund. A controlling shareholder can control the outcomes of proposals submitted to shareholders for approval.

---

| | |
|:---|:---|
| **SHAREHOLDER NAME AND ADDRESS** | **% Ownership** |
| **DIAMOND HILL LARGE CAP CONCENTRATED ETF** |  |
| National Financial Services LLC <br> 499 Washington Boulevard <br> Jersey City, NJ 07310 | 45.42% |
| Charles Schwab & Co., Inc. <br> 2423 E Lincoln Drive <br> Phoenix, AZ 85016-1215 | 30.93% |
| State Street Bank and Trust Company<br> 1776 Heritage Drive <br> North Quincy, MA 02169 | 23.54% |

---

**FINANCIAL STATEMENTS**

The financial statements and independent registered public accounting firm's report required to be included in this SAI are incorporated herein by reference to the [Form N-CSR](https://www.sec.gov/ix?doc=/Archives/edgar/data/1032423/000139834426003421/fp0096892-3_ncsrixbrl.htm), which includes the annual financial statements and additional information for the Fund for the fiscal year ended December 31, 2025. The Fund will provide the financial statements and additional information and the annual and semi-annual reports without charge upon written request or request by telephone. The financial statements and additional information and the annual and semi-annual reports to shareholders are also available on the Fund's website at www.diamond-hill.com/documents.

**DIAMOND HILL FUNDS**

**PART C. OTHER INFORMATION**

---

| | |
|:---|:---|
| **ITEM 28.** | **EXHIBITS** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a) Articles of Incorporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) [Copy of Registrant's Fourth Amended and Restated Agreement and Declaration of Trust dated May 22, 2025, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 90, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000103242325000062/dhffourthamendedandrestate.htm)

(ii) [Copy of Amendment No. 1, dated February 12, 2026, to Registrant's Fourth Amended and Restated Agreement and Declaration of Trust, dated May 22, 2025, is filed herewith.](fp0095533-8_ex9928aii.htm)

&nbsp;&nbsp;&nbsp;&nbsp;(b) By-Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) [Copy of Amended and Restated By-Laws, dated as of November 14, 2018, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 69, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000103242319000005/diamondhillby-lawsx111418.htm)

&nbsp;&nbsp;&nbsp;&nbsp;(c) Instruments Defining Rights of Security
Holders.

None other than in Registrant's Fourth Amended and Restated Agreement and Declaration of Trust and Amended and Restate By-Laws.

&nbsp;&nbsp;&nbsp;&nbsp;(d) Investment Advisory Contracts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) [Copy of Registrant's Amended and Restated Investment Management Agreement, dated as of November 17, 2011 with its Adviser, Diamond Hill Capital Management, Inc., which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 36, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000119312512088255/d298249dex99d.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) [Copy of Amended Exhibit A, dated as of August 21, 2025, to the Registrant's Amended and Restated Investment Management Agreement dated as of November 17, 2011, with Diamond Hill Capital Management, Inc., which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 93, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000162828025042125/amendedexainvestmentmanage.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Copy of Amended Exhibit A, dated
as of [ ], 2026, to the Registrant's Investment Management Agreement dated as of [ ], with Diamond Hill Capital Management, Inc.,
will be filed by subsequent amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) [Copy of Registrant's Fee Waiver Agreement dated as of April 6, 2017, with its Adviser, Diamond Hill Capital Management, Inc., which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 60, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000119312517115770/d371883dex9928dxi.htm)

&nbsp;&nbsp;&nbsp;&nbsp;(e) Underwriting Contracts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) [Copy of Underwriting Agreement with BHIL Distributors, LLC, dated as of August 18, 2016, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 54, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000119312516701977/d220582dex99ei.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) [Copy of Underwriting Agreement Novation with BHIL Distributors, LLC which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 62, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000119312517240352/d432623dex9928eii.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) [Form of Dealer's Agreement, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 54, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000119312516701977/d220582dex99eii.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) [Copy of ETF Distribution Agreement dated August 21, 2025 with Foreside Financial Services, LLC, is hereby which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 93, is hereby incorporated by reference](https://www.sec.gov/Archives/edgar/data/1032423/000162828025042125/dhf-ffinetfdaxnonxotx73025.htm) .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Copy of Amended Exhibit A, dated
as of [ ], 2026, to the Distribution Agreement dated August 21, 2025 with Foreside Financial Services, LLC, will be filed by subsequent
amendment.

&nbsp;&nbsp;&nbsp;&nbsp;(f) Bonus or Profit Sharing Contracts.

None.

&nbsp;&nbsp;&nbsp;&nbsp;(g) Custodian Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) [Copy of Registrant's Master Custodian Agreement and Fee Schedule with the Custodian, State Street Bank and Trust Company, dated as of March 1, 2014, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 43, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000119312514072214/d672285dex9928gviii.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) [Copy of Amendment dated October 13, 2015, to Fee Schedule dated as of March 1, 2014, which was filed as an Exhibit to the Registrant's Amendment No. 54, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000119312516626585/d213050dex9928gii.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) [Copy of Amendment dated March 1, 2016, to Fee Schedule dated as of March 1, 2014, which was filed as an Exhibit to the Registrant's Amendment No. 54, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000119312516626585/d213050dex9928giii.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) [Copy of Amended Appendix A, dated February 11, 2021, to Master Custodian Agreement with the Custodian, State Street Bank and Trust Company, dated as of March 1, 2014, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 79, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000103242321000034/a2021210afldhlargecapconce.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) [Copy of Amendment, dated February 21, 2023, to Master Custodian Agreement with the Custodian, State Street Bank and Trust Company, dated as of March 1, 2014, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 82, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000103242323000021/diamondhillfunds-amendment.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) [Copy of Amendment, dated August 21, 2024 to Master Custodian Agreement with the Custodian, State Street Bank and Trust Company, dated as of March 1, 2014, which was filed as an Exhibit to the Registrant's Post Effective Amendment No. 85, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000103242324000067/a20240819afl_amxcustodianx.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) [Copy of Amendment, dated May 22, 2025 to Master Custodian Agreement with the Custodian, State Street Bank and Trust Company, dated as of March 1, 2014, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 93, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000162828025042125/dhf-amendmentmastercustodi.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) [Copy of Amendment, dated August 22, 2025 to Master Custodian Agreement with the Custodian, State Street Bank and Trust Company, dated as of March 1, 2014, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 93, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000162828025042125/amendtomastercustodianagre.htm)

(ix) Copy of Amendment, dated [ ], 2026 to Master Custodian Agreement with the Custodian, State Street Bank and Trust Company, dated as of March 1, 2014, will be filed by subsequent amendment.

&nbsp;&nbsp;&nbsp;&nbsp;(h) Other Material Contracts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) [Copy of Registrant's Amended and Restated Administrative and Transfer Agency Services Agreement dated as of May 31, 2002, as restated and amended November 17, 2011 and May 23, 2013 with Diamond Hill Capital Management, Inc., which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 41, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000119312513478443/d646446dex99hiii.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) [Copy of Amendment dated February 20, 2014 to the Amended and Restated Administrative, Fund Accounting and Transfer Agency Services Agreement dated as of May 31, 2002, as restated and amended November 17, 2011, and May 23, 2013 with Diamond Hill Capital Management, Inc., which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 43, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000119312514072214/d672285dex9928hv.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) [Copy of Amended Schedule B, dated as of February 28, 2018, to the Amended and Restated Administrative, Fund Accounting and Transfer Agency Services Agreement, dated as of May 31, 2002, as restated and amended November 17, 2011 and May 23, 2013, and amended February 20, 2014, with Diamond Hill Capital Management, Inc., which was filed as an Exhibit to Registrant's Post-Effective Amendment No. 65, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000103242318000021/dhf-exhibithxivxschedulebd.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) [Copy of Amended Schedule A, dated as of May 22, 2025, to the Amended and Restated Administrative, Fund Accounting and Transfer Agency Services Agreement, dated as of May 31, 2002, as restated and amended November 17, 2011 and May 23, 2013, and amended February 20, 2014, with Diamond Hill Capital Management, Inc., which was filed as an Exhibit to the Registrant's Post Effective Amendment No. 90, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000103242325000062/amendedscheduleaforadminag.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) [Copy of Amended Schedule B, dated February 28, 2026, to the Amended and Restated Administrative Fund Accounting and Transfer Agency Services Agreement, dated as of May 31, 2002, as amended and restated November 17, 2011 and May 23, 2013, and amended February 20, 2014, with Diamond Hill Capital Management, Inc., is filed herewith.](fp0095533-8_ex9928hv.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) [Copy of Administrative Services Agreement, dated August 21, 2025 with Diamond Hill Capital Management, Inc., which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 93, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000162828025042125/dhlargecapconcentratedetfa.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Copy of Amended Schedule A, dated as of [ ], 2026, to the Administrative Services Agreement, dated August 21, 2025 with Diamond Hill Capital Management, Inc., will be filed by subsequent amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) [Copy of Master Services Agreement between Diamond Hill Capital Management, Inc. and Ultimus Fund Solutions, LLC, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 54, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000119312516626585/d213050dex9928hx.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) [Copy of Amendment, dated December 18, 2017, to the Master Services Agreement between Diamond Hill Capital Management, Inc. and Ultimus Fund Solutions, LLC, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 65, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000103242318000021/dhf-exhibithxviamendmentto.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) [Copy of Amended Schedule A, dated August 22, 2024, to the Master Services Agreement between Diamond Hill Capital Management, Inc. and Ultimus Fund Solutions, LLC, which was filed as an Exhibit to the Registrant's Post Effective Amendment No. 85, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000103242324000067/diamondhill-amendedschedul.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) [Copy of Amended Schedule A, dated May 22, 2025, to the Master Services Agreement between Diamond Hill Capital Management, Inc. and Ultimus Fund Solutions, LLC, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 93, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000162828025042125/diamondhill-amendedschedul.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) [Copy of Amendment No. 3 to the Master Services Agreement between Diamond Hill Capital Management, Inc. and Ultimus Fund Solutions, LLC, dated January 1, 2026, is filed herewith.](fp0095533-8_ex9928hxii.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) [Copy of ETF Master Services Agreement with Diamond Hill Capital Management, Inc. between Ultimus Fund Solutions, LLC, dated August 21, 2025, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 93, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000162828025042125/subetfmasterservicesagreem.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) [Copy of Amendment No. 1 to the ETF Master Services Agreement between Diamond Hill Capital Management, Inc. and Ultimus Fund Solutions, LLC, dated January 1, 2026, is filed herewith.](fp0095533-8_ex9928hxiv.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) Copy of Amended Schedule A, dated [ ], 2026, to the ETF Master Services Agreement between Diamond Hill Capital Management, Inc. and Ultimus Fund Solutions, LLC, will be filed by subsequent amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) [Copy of Registrant's Securities Lending Authorization Agreement with State Street Bank and Trust Company dated as of March 1, 2014, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 43, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000119312514072214/d672285dex9928hxv.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) [Copy of First Amendment, dated November 19, 2015, to Registrant's Securities Lending Authorization Agreement with State Street Bank and Trust Company dated as of March 1, 2014, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 51, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000119312516479699/d114198dex9928hxxii.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) [Copy of Second Amendment, dated February 10, 2016, to Registrant's Securities Lending Authorization Agreement with State Street Bank and Trust Company dated as of March 1, 2014, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 51, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000119312516479699/d114198dex9928hxxiii.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix) [Copy of Third Amendment, dated April 6, 2016, to Registrant's Securities Lending Authorization Agreement with State Street Bank and Trust Company dated as of March 1, 2014, which was filed as an Exhibit to the Registrant's Amendment No. 54, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000119312516626585/d213050dex9928hxiv.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) [Copy of Fourth Amendment, dated July 8, 2016, to Registrant's Securities Lending Authorization Agreement with State Street Bank and Trust Company dated as of March 1, 2014, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 54, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000119312516701977/d220582dex99hxvi.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxi) [Copy of Fifth Amendment, dated July 26, 2016, to Registrant's Securities Lending Authorization Agreement with State Street Bank and Trust Company dated as of March 1, 2014, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 54, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000119312516701977/d220582dex99hxvii.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxii) [Copy of Sixth Amendment, dated October 12, 2016, to Registrant's Securities Lending Authorization Agreement with State Street Bank and Trust Company dated as of March 1, 2014, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 63, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000119312517306822/d470576dex9928hxxi.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiii) [Copy of Seventh Amendment, dated November 14, 2017, to Registrant's Securities Lending Authorization Agreement with State Street Bank and Trust Company dated as of March 1, 2014, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 65, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000103242318000021/dhf-exhibithxxvx7thamendme.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiv) [Copy of Eighth Amendment, dated March 9, 2018, to Registrant's Securities Lending Authorization Agreement with State Street Bank and Trust Company dated as of March 1, 2014, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 70, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000103242319000063/hxxviiidhf8thamendmenttosl.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxv) [Copy of Ninth Amendment, dated February 14, 2019, to Registrant's Securities Lending Authorization Agreement with State Street Bank and Trust Company dated as of March 1, 2014, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 70, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000103242319000063/hxxixdhf9thamendmentdraftt.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxvi) [Copy of Tenth Amendment, dated March 1, 2019, to Registrant's Securities Lending Authorization Agreement with State Street Bank and Trust Company dated as of March 1, 2014, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 71, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000103242319000104/hxxx10thamendmentdrafttosl.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxvii) [Copy of Eleventh Amendment, dated February 11, 2021, to Registrant's Securities Lending Authorization Agreement with State Street Bank and Trust Company dated as of March 1, 2014, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 79, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000103242321000034/dhfeleventhamendmenttoslaa.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxviii) [Copy of Twelfth Amendment, dated August 19, 2021, to Registrant's Securities Lending Authorization Agreement with State Street Bank and Trust Company dated as of March 1, 2014, which was filed as an Exhibit to the Registrant's Post Effective Amendment No. 81, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000103242322000020/dhftwelfthamendmenttoslaaf.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxix) [Copy of Thirteenth Amendment, dated December 21, 2021, to Registrant's Securities Lending Authorization Agreement with State Street Bank and Trust Company dated as of March 1, 2014, which was filed as an Exhibit to the Registrant's Post Effective Amendment No. 81, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000103242322000020/dhfthirteenamendmenttoslaa.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxx) [Copy of Fourteenth Amendment, dated February 28, 2023, to Registrant's Securities Lending Authorization Agreement with State Street Bank and Trust Company dated as of March 1, 2014, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 82, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000103242323000021/dhffourteenthamendmenttosl.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxxi) [Copy of Fifteenth Amendment, dated August 21, 2024, to Registrant's Securities Lending Authorization Agreement with State Street Bank and Trust Company dated as of March 1, 2014, which was filed as an Exhibit to the Registrant's Post Effective Amendment No. 85, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000103242324000067/dhffifteenthamendmentandjo.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxxii) [Copy of Sixteenth Amendment, dated May 22, 2025, to Registrant's Securities Lending Authorization Agreement with State Street Bank and Trust Company dated as of March 1, 2014, which was filed as an Exhibit to the Registrant's P](https://www.sec.gov/Archives/edgar/data/1032423/000103242325000087/a16thamendmenttoslaafunds4.htm) [re-](https://www.sec.gov/Archives/edgar/data/1032423/000103242325000087/a16thamendmenttoslaafunds4.htm) [Effective Amendment No.](https://www.sec.gov/Archives/edgar/data/1032423/000103242325000087/a16thamendmenttoslaafunds4.htm) [1](https://www.sec.gov/Archives/edgar/data/1032423/000103242325000087/a16thamendmenttoslaafunds4.htm) [,](https://www.sec.gov/Archives/edgar/data/1032423/000103242325000087/a16thamendmenttoslaafunds4.htm) [dated July 29, 2025,](https://www.sec.gov/Archives/edgar/data/1032423/000103242325000087/a16thamendmenttoslaafunds4.htm) [is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000103242325000087/a16thamendmenttoslaafunds4.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxxiii) [Copy of Seventeenth Amendment, dated August 21, 2025, to Registrant's Securities Lending Authorization Agreement with State Street Bank and Trust Company dated as of March 1, 2014, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 93, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000162828025042125/dhf17thamendmenttoslaa-etf.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxxiv) Copy of Eighteenth Amendment, dated
[ ], 2026, to Registrant's Securities Lending Authorization Agreement with State Street Bank and Trust Company dated as of March
1, 2014, will be filed by subsequent amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxxv) [Copy of Registrant's Exclusive Lending Agreement with State Street Bank and Trust Company, dated as of May 26, 2015, as amended by First Amendment dated as of June 19, 2015, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 47, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000119312515338122/d46924dex9928hxix.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxxvi) [Copy of Second Amendment dated April 6, 2016, to Registrant's Exclusive Lending Agreement with State Street Bank and Trust Company dated as of May 26, 2015, which was filed as an Exhibit to the Registrant's Amendment No. 54, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000119312516626585/d213050dex9928hxvii.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxxvii) [Copy of Third Amendment dated May 5, 2016, to Registrant's Exclusive Lending Agreement with State Street Bank and Trust Company dated as of May 26, 2015, which was filed as an Exhibit to Registrant's Post-Effective Amendment No. 54, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000119312516701977/d220582dex99hxx.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxxviii) [Copy of Fourth Amendment dated March 9, 2018, to Registrant's Exclusive Lending Agreement with State Street Bank and Trust Company dated as of May 26, 2015, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 79, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000103242321000034/dhf-fourthamendmenttoexclu.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxxix) [Copy](https://www.sec.gov/Archives/edgar/data/1032423/000103242322000020/mffundoffundsinvestmentagr.htm) [of Fund of Funds Investment Agreement dated January 19, 2022, with State Street Bank Navigator Securities Lending Trust, which was filed as an Exhibit to the Registrant's Post Effective Amendment No. 81, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000103242322000020/mffundoffundsinvestmentagr.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxxx) [Copy of Amended and Restated Fund of Funds Investment Agreement dated July 23, 2025 with State Street Bank Navigator Securities Lending Trust, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 93, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000162828025042125/dhfamendedandrestatedfofin.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxxxi) [Copy of Transfer Agency and Service Agreement dated August 21, 2025, with State Street Bank and Trust Company, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 93, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000162828025042125/statestreettransferagencya.htm)

(xxxxii) Copy of Amendment, dated [ ], 2026 to Transfer Agency and Service Agreement dated August 21, 2025, with State Street Bank and Trust Company, will be filed by subsequent amendment.

&nbsp;&nbsp;&nbsp;&nbsp;(i) Legal Opinion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) [Opinion and Consent of Counsel dated September 19, 2025, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 93, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000162828025042125/legalopinionandconsent-dhl.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) [Consent of Counsel is filed herewith.](fp0095533-8_ex9928iii.htm)

&nbsp;&nbsp;&nbsp;&nbsp;(j) Other Opinions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) [Consent of Cohen & Company, Ltd. is filed herewith.](fp0095533-8_ex9928ji.htm)

&nbsp;&nbsp;&nbsp;&nbsp;(k) Omitted Financial Statements. None.

&nbsp;&nbsp;&nbsp;&nbsp;(l) Initial Capital Agreements.

Copy of Letter of Initial Stockholder, which was filed as an Exhibit to Registrant's Pre-Effective Amendment No. 1, is hereby incorporated by reference.

&nbsp;&nbsp;&nbsp;&nbsp;(m) Rule 12b-1 Plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) [Copy of Registrant's Amended and Restated Plan of Distribution Pursuant to Rule 12b-1 dated February 28, 2021, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 79, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000103242321000034/a12b-1planxamendedxfebruar.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) [Copy of Registrant's Amended Exhibit A, dated May 22, 2025, to the Amended and Restated Plan of Distribution Pursuant to Rule 12b-1, dated February 28, 2021, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 90, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000103242325000062/a12b-1planxamendedexaxmay2.htm)

&nbsp;&nbsp;&nbsp;&nbsp;(n) Rule 18f-3 Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) [Copy of Registrant's Amended and Restated Multiple Class Plan Pursuant to Rule 18f-3 as amended February 28, 2021, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 79, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000103242321000034/rule18f-3planfebruary2021r.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) [Copy of Registrant's Amended Schedule A, dated May 22, 2025, to the Amended and Restated Multiple Class Plan Pursuant to Rule 18f-3, dated February 28, 2021, which was filed as an Exhibit to the Registrant's Post-Effective Amendment No. 90, is hereby incorporated by reference.](https://www.sec.gov/Archives/edgar/data/1032423/000103242325000062/rule18f-3planmay2025schedu.htm)

&nbsp;&nbsp;&nbsp;&nbsp;(o) Reserved

&nbsp;&nbsp;&nbsp;&nbsp;(p) Codes of Ethics.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) [Copy of the Revised Code of Ethics of Diamond Hill Funds and Diamond Hill Capital Management, Inc. dated November 1, 2025, is filed herewith.](fp0095533-8_ex9928pi.htm)

**ITEM 29. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE FUND**

None.

**ITEM 30. INDEMNIFICATION**

(a) Article VI of the Registrant's Fourth Amended and Restated Agreement and Declaration of Trust provides for indemnification of officers and Trustees as follows:

SECTION 6.4 INDEMNIFICATION OF TRUSTEES, OFFICERS, ETC. Subject to and except as otherwise provided in the Securities Act of 1933, as amended, and the 1940 Act, the Trust shall indemnify each of its past, present and future Trustees and officers (including persons who serve at the Trust's request as directors, officers or trustees of another organization in which the Trust has any interest as a shareholder, creditor or otherwise (hereinafter referred to as a "Covered Person") against all liabilities, including but not limited to amounts paid in satisfaction of judgments, in compromise or as fines and penalties, and expenses, including reasonable accountants' and counsel fees, incurred by any Covered Person in connection with the defense or disposition of any action, suit or other proceeding, whether civil, criminal, administrative or investigative, and any appeal therefrom, before any court or administrative or legislative body, in which such Covered Person may be or may have been involved as a party or otherwise or with which such person may be or may have been threatened, while in office or thereafter, by reason of being or having been such a Trustee or officer, director or trustee, and except that no Covered Person shall be indemnified against any liability to the Trust or its Shareholders to which such Covered Person would otherwise be subject by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of such Covered Person's office.

SECTION 6.5 ADVANCES OF EXPENSES. The Trust shall advance attorneys' fees or other expenses incurred by a Covered Person in defending a proceeding to the full extent permitted by the Securities Act of 1933, as amended, the 1940 Act, and Ohio Revised Code Chapter 1707, as amended. In the event any of these laws conflict with Ohio Revised Code Section 1701.13(E), as amended, these laws, and not Ohio Revised Code Section 1701.13(E), shall govern.

SECTION 6.6 INDEMNIFICATION NOT EXCLUSIVE, ETC. The right of indemnification provided by this Article VI shall not be exclusive of or affect any other rights to which any such Covered Person may be entitled. As used in this Article VI, "Covered Person" shall include such person's heirs, executors and administrators. Nothing contained in this article shall affect any rights to indemnification to which personnel of the Trust, other than Trustees and officers, and other persons may be entitled by contract or otherwise under law, nor the power of the Trust to purchase and maintain liability insurance on behalf of any such person.

SECTION 6.7 LIABILITY OF THIRD PERSONS DEALING WITH TRUSTEES. No person dealing with the Trustees shall be bound to make any inquiry concerning the validity of any transaction made or to be made by the Trustees or to see to the application of any payments made or property transferred to the Trust or upon its order.

(b) The Registrant may maintain a standard mutual fund and investment advisory professional and directors and officers liability policy. The policy, if maintained, would provide coverage to the Registrant, its Trustees and officers, and could cover its Advisers, among others. Coverage under the policy would include losses by reason of any act, error, omission, misstatement, misleading statement, neglect or breach of duty.

(c) Pursuant to the Underwriting Agreement ("Agreement"), the Underwriter has agreed to indemnify, defend, and hold the Registrant, its affiliates, and each of their respective trustees, officers, employees, representatives, and any person who controls or previously controlled the Registrant within the meaning of Section 15 of the 1933 Act, (collectively, the "Registrant Indemnitees") free and harmless from and against any and all losses, claims, demands, liabilities, damages and expenses (including the costs of investigating or defending any alleged losses, claims, demands, liabilities, damages or expenses and any reasonable counsel fees incurred in connection therewith) (collectively, "Losses") that any Registrant Indemnitee may incur under the 1933 Act, the 1934 Act, the 1940 Act, any other statute (including Blue Sky laws) or any rule or regulation thereunder, or under common law or otherwise arising out of or based upon (i) the Underwriter's breach of any of its obligations, representations, warranties or covenants contained in the Agreement; (ii) the Underwriter's failure to comply with any applicable securities laws or regulations; or (iii) any claim that the Registration Statement, Prospectus, sales literature and advertising materials or other information filed or made public by the Registrant (as from time to time amended) include or included an untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements not misleading, insofar as such statement or omission was made in reliance upon and in conformity with information furnished to the Registrant by the Underwriter in writing. In no event shall anything contained in the Agreement be so construed as to protect the Registrant against any liability to the Underwriter to which the Registrant would otherwise be subject by reason of willful misfeasance, bad faith, or gross negligence in the performance of its duties under the Agreement or by reason of its reckless disregard of its obligations under the Agreement.

(d) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to trustees, officers and controlling persons of the Registrant pursuant to the provisions of Ohio law and the Agreement and Declaration of the Registrant or the By-Laws of the Registrant, or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a trustee, officer or controlling person of the Trust in the successful defense of any action, suit or proceeding) is asserted by such trustee, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

**ITEM 31. BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISER** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Diamond Hill Capital Management, Inc., 325 John H. McConnell Boulevard, Suite 200, Columbus, Ohio 43215 ("DHCM"), adviser to the Diamond Hill Small Cap Fund, Diamond Hill Small-Mid Cap Fund, Diamond Hill Mid Cap Fund, Diamond Hill Select Fund, Diamond Hill Large Cap Fund, Diamond Hill Large Cap Concentrated ETF, Diamond Hill Long-Short Fund, Diamond Hill International Fund, Diamond Hill Short Duration Securitized Bond Fund, Diamond Hill Securitized Total Return Fund, Diamond Hill Core Bond Fund, Diamond Hill Core Plus Bond Fund, Diamond Hill Micro Cap Fund LP and Diamond Hill Securitized Credit Fund, is a registered investment adviser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) DHCM has engaged in no other business during the past two fiscal years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Information with respect to the directors and officers of DHCM is incorporated by reference to Schedule D of Form ADV filed by it under the Investment Advisers Act of 1940, as amended (File No. 801-32176).

**ITEM 32. PRINCIPAL UNDERWRITERS**

&nbsp;&nbsp;&nbsp;&nbsp;(a) Foreside Financial Services, LLC (the "Distributor") serves as principal underwriter for the
following investment companies registered under the Investment Company Act of 1940, as amended:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. 13D Activist Fund, Series of Northern Lights Fund Trust

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. 2nd Vote Funds

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. AAMA Equity Fund, Series of Asset Management Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. AAMA Income Fund, Series of Asset Management Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Adams Street Private Equity Navigator Fund LLC

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Advisers Investment Trust

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. AG Twin Brook Capital Income Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. AltShares Trust

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. American Beacon AHL Trend ETF, Series of American Beacon Select Funds

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. American Beacon GLG Natural Resources ETF, American Beacon Select Funds

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. American Beacon Ionic Inflation Protection ETF, American Beacon Select Funds

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. Aristotle Funds Series Trust

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. Boston Trust Walden Funds (f/k/a The Boston Trust & Walden Funds)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. Bow River Capital Evergreen Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. Connetic Venture Capital Access Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. Constitution Capital Access Fund, LLC

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. Datum One Series Trust

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. Diamond Hill Funds

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. Diamond Hill Securitized Credit Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. Driehaus Mutual Funds

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. EntrepreneurShares Series Trust

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. FMI Funds, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. Impax Funds Series Trust I (f/k/a Pax World Funds Series Trust I)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. Impax Funds Series Trust III (f/k/a Pax World Funds Series Trust III)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. Inspire 100 ETF, Series of Northern Lights Fund Trust IV

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. Inspire 500 ETF, Series of Northern Lights Fund Trust IV

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. Inspire Corporate Bond ETF, Series of Northern Lights Fund Trust IV

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28. Inspire Fidelis Multi Factor ETF, Series of Northern Lights Fund Trust IV

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29. Inspire Global Hope ETF, Series of Northern Lights Fund Trust IV

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30. Inspire International ETF, Series of Northern Lights Fund Trust IV

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31. Inspire Growth ETF, Series of Northern Lights Fund Trust IV

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32. Inspire Small/Mid Cap ETF, Series of Northern Lights Fund Trust IV

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33. Inspire Capital Appreciation ETF, Series of the Northern Lights Fund Trust IV

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34. LifeX 2035 Income Bucket ETF, Series of Stone Ridge Trust

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35. LifeX 2050 Inflation-Protected Longevity Income ETF, Series of Stone Ridge Trust

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36. LifeX 2050 Longevity Income ETF, Series of Stone Ridge Trust

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37. LifeX 2055 Inflation-Protected Longevity Income ETF, Series of Stone Ridge Trust

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38. LifeX 2055 Longevity Income ETF, Series of Stone Ridge Trust

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39. LifeX 2060 Inflation-Protected Longevity Income ETF, Series of Stone Ridge Trust

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40. LifeX 2060 Longevity Income ETF, Series of Stone Ridge Trust

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41. LifeX 2065 Inflation-Protected Longevity Income ETF, Series of Stone Ridge Trust

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42. LifeX 2065 Longevity Income ETF, Series of Stone Ridge Trust

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43. LifeX Durable Income ETF, Series of Stone Ridge Trust

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;44. Nomura Energy Transition ETF, Series of Nomura ETF Trust

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45. Nomura Focused Emerging Markets Equity ETF, Series of Nomura ETF Trust

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46. Nomura Focused International Core ETF, Series of Nomura ETF Trust

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;47. Nomura Focused Large Growth ETF, Series of Nomura ETF Trust

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;48. Nomura Global Listed Infrastructure ETF, Series of Nomura ETF Trust

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;49. Nomura National High-Yield Municipal Bond ETF, Series of Nomura ETF Trust

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50. Nomura Tax-Free USA Short Term ETF, Series of Nomura ETF Trust

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51. Man ETF Series Trust

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;52. Meketa Infrastructure Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;53. Nomura Alternative Income Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;54. Praxis Mutual Funds

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;55. Primark Meketa Private Equity Investments Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;56. SA Funds – Investment Trust

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;57. Sequoia Fund, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58. Simplify Exchange Traded Funds

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;59. Siren ETF Trust

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60. Stone Ridge Alternative Lending Risk Premium Fund, Series of Stone Ridge Trust V

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;61. Stone Ridge Art Risk Premium Fund, Series of Stone Ridge Trust VIII

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;62. Stone Ridge Reinsurance Risk Premium Interval Fund, Series of Stone Ridge Trust II

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;63. Tactical Dividend and Momentum Fund, Series of Two Roads Shared Trust

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;64. TCW ETF Trust

&nbsp;&nbsp;&nbsp;&nbsp;(b) The following are the Officers and Manager of the Distributor, the Registrant's underwriter. The
Distributor's main business address is 190 Middle Street, Suite 301, Portland, Maine 04101.

---

| | | | |
|:---|:---|:---|:---|
| Name | Address | Position with Underwriter | Position with Registrant |
| Teresa Cowan | 190 Middle Street, Suite 301, Portland, ME 04101 | President/Manager |  |
| Chris Lanza | 190 Middle Street, Suite 301, Portland, ME 04101 | Vice President |  |
| Kate Macchia | 190 Middle Street, Suite 301, Portland, ME 04101 | Vice President |  |
| Jennifer A. Brunner | 190 Middle Street, Suite 301, Portland, ME 04101 | Vice President and Chief Compliance Officer |  |
| Gabriel E. Edelman | 190 Middle Street, Suite 301, Portland, ME 04101 | Secretary |  |
| Susan L. LaFond | 190 Middle Street, Suite 301, Portland, ME 04101 | Treasurer |  |
| Weston Sommers | 190 Middle Street, Suite 301, Portland, ME 04101 | Financial and Operations Principal and Chief Financial Officer |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Not applicable.

**ITEM 33. LOCATION OF ACCOUNTS AND RECORDS**

Accounts, books and other documents required to be maintained by Section 31(a) of the Investment Company Act of 1940, as amended, and the rules promulgated thereunder will be maintained by the Registrant at 325 John H. McConnell Boulevard, Suite 200, Columbus, Ohio 43215; and/or by the Registrant's custodian (and transfer agent for the Large Cap Concentrated ETF only), State Street Bank and Trust Company, One Congress Street, Suite 1, Boston, MA 02114; and the Registrant's sub-administration service provider, sub-fund accountant, and sub-transfer agent (except for the Large Cap Concentrated ETF), Ultimus Fund Solutions, LLC, 225 Pictoria Drive, Suite 450, Cincinnati, Ohio 45246.

**ITEM 34. MANAGEMENT SERVICES**

None.

**ITEM 35. UNDERTAKINGS**

None.

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit Number** | **Description** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(a)(ii)](fp0095533-8_ex9928aii.htm) | [Amendment No. 1, dated February 12, 2026, to Registrant's Fourth Amended and Restated Agreement and Declaration of Trust, dated May 22, 2025](fp0095533-8_ex9928aii.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(h)(v)](fp0095533-8_ex9928hv.htm) | [Amended Schedule B, dated February 28, 2026, to the Amended and Restated Administrative Fund Accounting and Transfer Agency Services Agreement, dated as of May 31, 2002, as amended and restated November 17, 2011 and May 23, 2013, and amended February 20, 2014, with Diamond Hill Capital Management, Inc.](fp0095533-8_ex9928hv.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(h)(xii)](fp0095533-8_ex9928hxii.htm) | [Amendment No. 3, dated January 1, 2026, to the Master Services Agreement between Diamond Hill Capital Management, Inc., and Ultimus Fund Solutions, LLC](fp0095533-8_ex9928hxii.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(h)(xiv)](fp0095533-8_ex9928hxiv.htm) | [Amendment No. 1, dated January 1, 2026, to the ETF Master Services Agreement between Diamond Hill Capital Management, Inc., and Ultimus Fund Solutions, LLC](fp0095533-8_ex9928hxiv.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(i)(ii)](fp0095533-8_ex9928iii.htm) | [Consent of Thompson Hine LLP](fp0095533-8_ex9928iii.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(j)(i)](fp0095533-8_ex9928ji.htm) | [Consent of Cohen & Company, Ltd.](fp0095533-8_ex9928ji.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(p)(i)](fp0095533-8_ex9928pi.htm) | [Revised Code of Ethics, dated November 1, 2025, of Diamond Hill Funds and Diamond Hill Capital Management, Inc.](fp0095533-8_ex9928pi.htm) |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933, as amended (the "Securities Act"), and the Investment Company Act of 1940, as amended, the Registrant certifies that it meets all of the requirements for effectiveness of this registration statement under Rule 485(b) under the Securities Act and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Columbus, and the State of Ohio on February 25, 2026.

---

| | |
|:---|:---|
| DIAMOND HILL FUNDS | DIAMOND HILL FUNDS |
| By: | /s/ Thomas E. Line |
|  | Thomas E. Line |

---

Pursuant to the requirements of the Securities Act, this Post-Effective Amendment to the Registration Statement has been signed below by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| /s/ Thomas E. Line | President | February 25, 2026 |
| Thomas E. Line |  |  |
| /s/ Julie A. Roach | Treasurer | February 25, 2026 |
| Julie A. Roach |  |  |
| Anthony J. Ghoston\* | Trustee | February 25, 2026 |
| Anthony J. Ghoston |  |  |
| Tamara L. Fagely\* | Trustee | February 25, 2026 |
| Tamara L. Fagely |  |  |
| Jody T. Foster\* | Trustee | February 25, 2026 |
| Jody T. Foster |  |  |
| Nancy M. Morris\* | Trustee | February 25, 2026 |
| Nancy M. Morris |  |  |
| John T. Kelly-Jones\* | Trustee | February 25, 2026 |
| John T. Kelly-Jones |  |  |

---

---

| | |
|:---|:---|
| \*By: | /s/ Thomas E. Line |
|  | Thomas E. Line |
|  | Executed by Thomas E. Line |
|  | on behalf of those indicated pursuant to Powers of Attorney |

---

## Exhibit 99.28

**Amendment No. 1**

**to the**

**Fourth Amended and Restated Agreement and Declaration of Trust**

**of**

**Diamond Hill Funds**

The undersigned officer of the Diamond Hill Funds, an Ohio business trust (the "Trust"), acting pursuant to Article 7, Section 7.3 of the Fourth Amended and Restated Agreement and Declaration of Trust of the Trust, certifies hereby that the following resolutions were duly adopted by a majority of the Board of Trustees of the Trust on February 12, 2026 and are in full force and effect as of the date hereof:

**RESOLVED**, that the first paragraph of Article 4, Section 4.2 of the Declaration be, and such paragraph hereby is, amended hereby by deleting such first paragraph of Article 4, Section 4.2, in its entirety, and substituting in place thereof the following new first paragraph of Article 4, Section 4.2:

<u>Section 4.2 Establishment and Designation of Series</u>. Without limiting the authority of the Trustees set forth in Section 4.1 to establish and designate any further Series or Classes, the Trustees hereby establish and designate the following Series and Classes of Shares: "Diamond Hill Small Cap Fund," Diamond Hill Small-Mid Cap Fund," "Diamond Hill Mid Cap Fund," "Diamond Hill Large Cap Fund," "Diamond Hill Large Cap Concentrated ETF," "Diamond Hill Select Fund," "Diamond Hill Long-Short Fund," "Diamond Hill International Fund," "Diamond Hill Short Duration Securitized Bond Fund," "Diamond Hill Securitized Total Return Fund," "Diamond Hill Core Bond Fund," "Diamond Hill Core Plus Bond Fund," and "Diamond Hill High Income ETF," and the following classes of Shares: Investor Class, Class I, Class Y and ETF Shares.

---

| | |
|:---|:---|
| Dated: February 12, 2026 | <u>/s/ Karen R. Colvin</u>_______________ |
|  | Karen R. Colvin, Secretary |
|  | Diamond Hill Funds |

---

## Exhibit 99.28

**Amended Schedule B**

**to Amended and Restated Administrative, Fund Accounting and Transfer Agency Services Agreement**

**between**

**Diamond Hill Funds**

**and**

**Diamond Hill Capital Management, Inc.**

**initially dated as of May 31, 2002, as restated and amended November 17, 2011, and May 23, 2013, and amended on February 20, 2014**

Each Fund listed on Schedule A hereto shall pay DHCM a fee at an annual rate as stated in the table below of the average daily net assets of the respective class of each Fund.

---

| | | |
|:---|:---|:---|
| Investor | Class I | Class Y |
| 0.22% | 0.18% | 0.05% |

---

The effective date of this Amended Schedule B is February 28, 2026.

---

| | | | |
|:---|:---|:---|:---|
| **Diamond Hill Funds** | **Diamond Hill Funds** | **Diamond Hill Capital Management, Inc.** | **Diamond Hill Capital Management, Inc.** |
| By: | /s/Thomas E. Line | By: | /s/ Thomas E. Line |
|  | Thomas E. Line |  | Thomas E. Line |
|  | President |  | Chief Financial Officer |

---

## Exhibit 99.28

**AMENDMENT NO. 3 TO MASTER SERVICES AGREEMENT**

THIS Amendment NO. 3 TO MASTER SERVICES AGREEMENT (this "**Amendment**"), effective as of January 1, 2026, by and among Diamond Hill Capital Management Inc., an Ohio corporation (the "**Administrator**"), and Ultimus Fund Solutions, LLC, an Ohio limited liability company ("**Ultimus**") (collectively, the "**Parties**").

WHEREAS, the Parties entered into that certain Master Services Agreement dated May 31, 2016, as amended (the "**Agreement**"); and

WHEREAS, the Parties desire to amend the Agreement as described herein.

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements herein set forth, the Parties agree as follows:

1. <u>Amendments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Sub-Fund Administration Addendum</u> to the Agreement hereby is deleted in its entirety and replaced
with <u>Sub-Fund Administration Addendum</u> attached hereto, as the same may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Amended Sub-Fund Accounting and Sub-Fund Administration Fee Schedule</u> to the Agreement hereby is
deleted in its entirety and replaced with <u>Amended Sub-Fund Accounting and Sub-Fund Administration Fee Schedule</u> attached hereto,
as the same may be amended from time to time.

2. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as amended hereby, the Agreement shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Amendment may be executed in two or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, each party hereto has caused this Amendment to be executed by its duly authorized officer as of the date and year first above written.

---

| | | | |
|:---|:---|:---|:---|
| **DIAMOND HILL CAPITAL MANAGEMENT INC.** | **DIAMOND HILL CAPITAL MANAGEMENT INC.** | **ULTIMUS FUND SOLUTIONS, LLC** | **ULTIMUS FUND SOLUTIONS, LLC** |
| By: | /s/ Thomas E. Line | By: | /s/ Gary Tenkman |
| Name: | Thomas E. Line | Name: | Gary Tenkman |
| Title: | Chief Financial Officer | Title: | Chief Executive Officer |

---

**<u>Sub-Fund Administration Addendum</u>**

**For**

**Diamond Hill Capital Management, Inc.**

This Addendum, dated January 1, 2026, is between Diamond Hill Capital Management, Inc. (the "**Administrator**"), on behalf of the Funds listed on Schedule A to the Master Services Agreement, and **Ultimus Fund Solutions, LLC** ("**Ultimus**")**.**

**<u>Sub-Fund Administration Services</u>**

**1.** **Regulatory Reporting** 

Ultimus shall provide the Trust with regulatory reporting services, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***1.1.*** prepare, in consultation with Trust counsel, and supervise the filing of annual updates to prospectuses
and statements of additional information in the Trust's registration statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***1.2.*** prepare and file with the SEC (i) reports for the Trust on Forms N-CSR, N-Q and N-SAR, (ii)Form N-PX,
and (iii) all required notices pursuant to Rule 24f-2 under the 1940 Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***1.3.*** prepare and file with the SEC the reports for the Trust on Forms N-CEN and N-PORT should those forms become
required during the term of the Master Services Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***1.4.*** prepare such reports, notice filing forms and other documents (including reports regarding the sale and
redemption of shares of the Trust as may be required in order to comply with federal and state securities laws) as may be necessary or
desirable to make notice filings relating to the Trust's shares with state securities authorities, monitor the sale of Trust shares
or compliance with state securities laws, and file with the appropriate state securities authorities compliance filings as may be necessary
or convenient to enable the Trust to make a continuous offering of its shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***1.5.*** cooperate with, and take all reasonable actions in the performance of its duties under this Agreement,
to ensure that the necessary information is made available to the SEC or any other regulatory authority in connection with any regulatory
audit of the Trust or any Fund.

**2.** **Shareholder Communications** 

Ultimus shall develop and prepare, with the assistance of the Trust's investment adviser(s) and other service providers, communications to shareholders, including the annual and semiannual reports to shareholders, coordinate the printing and mailing of prospectuses, notices and other reports to Trust shareholders.

**3.** **Corporate Governance** 

Ultimus shall provide the following services to the Trust and its Funds:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***3.1.*** Provide individuals reasonably acceptable to the Trust's Board of Trustees (the "Board")
to serve as officers of the Trust, who will be responsible for the management of certain of the Trust's affairs as determined and
under the supervision by the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***3.2.*** coordinate the acquisition of and maintain fidelity bonds and directors and officers/errors and omissions
insurance policies for the Trust in accordance with the requirements of the 1940 Act and as such bonds and policies are approved by the
Board; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***3.3.*** coordinate meetings of, prepare materials for, attend, and write minutes of the Board's quarterly
meetings.

**4.** **Other Services** 

Ultimus shall provide all necessary office space, equipment, personnel, and facilities for handling the affairs of the Trust; and shall provide such other services as the Administrator may reasonably request that Ultimus perform consistent with its obligations under the Master Services Agreement and this Fund Administration Addendum:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.1.*** administer contracts on behalf of the Trust with, among others, the Trust's investment adviser(s),
distributor, custodian, transfer agent and fund accountant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.2.*** assist the Trust, each Fund's investment adviser(s) and the Trust's Chief Compliance Officer
in monitoring the Trust and its Funds for compliance with applicable limitations as imposed by the 1940 Act and the rules and regulations
thereunder or set forth in the Trust's or any Fund's then current prospectus or statement of additional information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.3.*** perform all reasonable and customary administrative services and functions of the Trust to the extent
such administrative services and functions are not provided to the Trust by other agents of the Trust;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.4.*** furnish advice and recommendations with respect to other aspects of the business and affairs of the Trust,
as the Administrator and Ultimus shall determine desirable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.5.*** prepare and maintain the Trust's operating budget to determine proper expense accruals to be charged
to each Fund in order to calculate its daily net asset value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.6.*** prepare, or cause to be prepared, expense and financial reports, including Fund budgets, expense reports,
pro-forma financial statements, expense and profit/loss projections and fee waiver/expense reimbursement projections on a periodic basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.7.*** assist the Trust's independent public accountants with the preparation and filing of the Trust's
tax returns, Form W-2P, and Form 5498 to appropriate shareholders, with copies to the Internal Revenue Service. Ultimus will also research
and calculate the qualified dividend rate for income and short term capital gain distributions and produce supplemental tax information
letters for each Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.8.*** advise the Trust and its Board on matters concerning the Trust and its affairs including making recommendations
regarding dividends and distributions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.9.*** respond to surveys from industry publications and ensure consistency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.10.*** prepare monthly/quarterly portfolio statistics for reporting and marketing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.11.*** provide financial materials for Board and management meetings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.12.*** administer all disbursements for a Fund; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.13.*** upon request, assist each Fund in the evaluation and selection of other service providers, such as independent
public accountants, printers, and EDGAR providers.

For special cases, the parties hereto may amend the procedures or services set forth in this Agreement as may be appropriate or practical under the circumstances, and Ultimus may conclusively assume that any special procedure or service which has been approved by the Trust does not conflict with or violate any requirements of its Agreement and Declaration of Trust or then current prospectuses, or any rule, regulation or requirement of any regulatory body.

Sub-Fund Administration Addendum <br> January 1, 2026 Page 2 of 4

**5.** **Board Governance Items** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***5.1.*** Creation of board book/electronic posting of materials received from various sources.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***5.2.*** Coordination of trustee fee payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***5.3.*** Drafting and provision of resolutions outside of the current inventory of Administrator's resolutions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***5.4.*** Coordinate the process for quarterly board material requests and collection.

**6.** **Regulatory Support Items** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.1.*** Draft Form 485(a) and Form 485(b) filings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.2.*** Draft Form 485(b) and Form 486(b) filings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.3.*** Coordinate notice filing/mailing of Form N-2

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.4.*** Draft Form 424(b)(3)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.5.*** Draft 497(c) or (j) filling

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.6.*** Coordinate filing of summary prospectuses

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.7.*** Coordinate mailing of summary prospectuses and prospectus supplements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.8.*** Draft Pre or DEF proxy filings (if needed)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.9.*** Draft information statements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.10.*** Draft Form N-RN

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.11.*** File Form 17g-1 filing as provided by Administrator

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.12.*** 24f-2 Filings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.13.*** Coordinate the print and mailing of annual and semi-annual reports

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.14.*** Coordinate the Quarterly repurchase offer drafting, filing and mailing

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.15.*** Coordinate EdgarNext maintenance with FilePoint

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.16.*** Coordination with FilePoint the posting of regulatory documents on website

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.17.*** Coordination of the update process for 485(b) and 486(b) including data requests, reviews, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.18.*** Coordination of filing SEC correspondence

**7.** **Tax Matters** 

Ultimus does not provide tax advice. Nothing in the Master Services Agreement or this Fund Administration Addendum shall be construed or have the effect of rendering tax advice. It is important that the Trust or a Fund consult a professional tax advisor regarding its individual tax situation.

**8.** **Legal Representation** 

Notwithstanding any provision of the Master Services Agreement or this Fund Administration Addendum to the contrary, Ultimus will not be obligated to provide legal representation to the Trust or any Fund, including by attorneys that are employees of Ultimus. The Administrator acknowledges that in-house Ultimus attorneys exclusively represent Ultimus and rely on outside counsel retained by the Trust to review all services provided by in-house Ultimus attorneys and to provide independent judgment on the Trust's behalf. The Trust acknowledges that because no attorney-client relationship exists between in-house Ultimus attorneys and the Trust, any information provided to Ultimus attorneys may not be privileged and may be subject to compulsory disclosure under certain circumstances. Ultimus represents that it will maintain the confidentiality of information disclosed to its in-house attorneys on a best effort basis.

Sub-Fund Administration Addendum <br> January 1, 2026 Page 3 of 4

**9.** **Review of IT Security** 

Ultimus shall conduct an annual independent review of its IT security and allow the Administrator to review both the results of the annual independent review and the Agreed Upon Procedures ("AUPs") being performed. Ultimus will respond to any findings or recommendations from the independent review and provide that response to the Administrator.

The parties duly executed this Sub-Fund Administration Addendum as of January 1, 2026.

---

| | | | |
|:---|:---|:---|:---|
|  | **Diamond Hill Capital Management, Inc.** |  | **Ultimus Fund Solutions, LLC** |
| By: | /s/ Thomas E. Line | By: | /s/ Gary R. Tenkman |
| Name: | Thomas E. Line | Name: | Gary R. Tenkman |
| Title: | Chief Financial Officer | Title: | Chief Executive Officer |

---

Sub-Fund Administration Addendum <br> January 1, 2026 Page 4 of 4

## Exhibit 99.28

**AMENDMENT NO. 1 TO ETF MASTER SERVICES AGREEMENT**

THIS Amendment NO. 1 TO ETF MASTER SERVICES AGREEMENT (this "**Amendment**"), effective as of January 1, 2026, by and among Diamond Hill Capital Management Inc., an Ohio corporation (the "**Administrator**"), and Ultimus Fund Solutions, LLC, an Ohio limited liability company ("**Ultimus**") (collectively, the "**Parties**").

WHEREAS, the Parties entered into that certain ETF Master Services Agreement dated August 22, 2025 (the "**Agreement**"); and

WHEREAS, the Parties desire to amend the Agreement as described herein.

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements herein set forth, the Parties agree as follows:

1. <u>Amendments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Sub-Fund Administration Addendum</u> to the Agreement hereby is deleted in its entirety and replaced
with <u>Sub-Fund Administration Addendum</u> attached hereto, as the same may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Sub-Fund Administration Fee Letter</u> to the Agreement hereby is deleted in its entirety and replaced
with <u>Sub-Fund Administration Fee Letter</u> attached hereto, as the same may be amended from time to time.

2. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as amended hereby, the Agreement shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Amendment may be executed in two or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, each party hereto has caused this Amendment to be executed by its duly authorized officer as of the date and year first above written.

---

| | | | |
|:---|:---|:---|:---|
| **DIAMOND HILL CAPITAL MANAGEMENT INC.** | **DIAMOND HILL CAPITAL MANAGEMENT INC.** | **ULTIMUS FUND SOLUTIONS, LLC** | **ULTIMUS FUND SOLUTIONS, LLC** |
| By: | /s/ Thomas E. Line | By: | /s/ Gary Tenkman |
| Name: | Thomas E. Line | Name: | Gary Tenkman |
| Title: | Chief Financial Officer | Title: | Chief Executive Officer |

---

**<u>Sub-Fund Administration Addendum</u>**

**for**

**Diamond Hill Capital Management, Inc.**

This Sub-Fund Administration Addendum (this "**Addendum**"), dated January 1, 2026, is between **Diamond Hill Capital Management, Inc.** (the "**Administrator**") for the Funds listed on Schedule A to that certain ETF Master Services Agreement dated August 22, 2025 ("**ETF Master Services Agreement**"), and **Ultimus Fund Solutions, LLC** ("**Ultimus**"). Capitalized terms used but not defined herein shall have the meanings set forth in the ETF Master Services Agreement.

**<u>Sub-Fund Administration Services</u>**

**1.** **Regulatory Reporting** 

Ultimus shall provide the Trust with regulatory reporting services, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***1.1.*** prepare, in consultation with Trust counsel, the annual updates (as well as supplements) to the Trust's
registration statement filed on Form N-1A pursuant to Section 8 of the Investment Company Act, and coordinate through a financial printer
the filing of such annual updates (as well as supplements to such documents) with the Securities and Exchange Commission (the "**SEC** ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***1.2.*** prepare and file with the SEC (i) the reports for the Trust on Forms N-CSR, N-PORT, and N-CEN (as applicable),
(ii) Form N-PX, (iii) annual Fidelity Bond Filing (Rule 17g-1), and (iv) all required notices pursuant to Rule 24f-2 under the Investment
Company Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***1.3.*** prepare such reports, notice filing forms and other documents (including reports regarding the sale of
shares of the Trust as may be required in order to comply with federal and state securities law) as may be necessary or desirable to make
notice filings relating to the Trust's shares with state securities authorities, monitor the sale of Trust shares for compliance
with state securities laws, and file with the appropriate state securities authorities compliance filings as may be necessary or convenient
to enable the Trust to offer its shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***1.4.*** cooperate with, and take all reasonable actions in the performance of its duties under this Agreement,
so that the necessary information is made available to, the SEC or any other regulatory authority or applicable securities exchange in
connection with any regulatory audit of the Trust or any Fund.

**2.** **Shareholder Communications** 

Ultimus shall develop and prepare, with the assistance of the Administrator and other service providers, communications to shareholders, including the annual and semiannual reports to shareholders, coordinate the printing and mailing of prospectuses, notices and other reports to Trust shareholders.

Diamond Hill Capital Management, Inc. <br> Sub-Fund Administration Addendum Page 1 of 6

**3.** **Corporate Governance** 

Ultimus shall provide the following services to the Trust and its Funds:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***3.1.*** provide individuals reasonably acceptable to the Board to serve as officers of the Trust, including, without
limitation, individuals to serve as assistant treasurer, secretary, and assistant secretary, who will be responsible for the management
of certain of the Trust's affairs as determined and under supervision by the Board; depending on the nature and scope of any such
officer appointment, Ultimus may be entitled to an additional fee (as set forth in the Sub-Fund Administration Fee Letter);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***3.2.*** coordinate the acquisition of and maintain fidelity bonds and directors and officers/errors and omissions
insurance policies for the Trust in accordance with the requirements of the Investment Company Act and as such bonds and policies are
approved by the Board; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***3.3.*** in consultation with legal counsel to the Trust, the investment adviser, officers of the Trust and other
relevant parties, collect, prepare and disseminate digital materials for quarterly meetings of the Board, including agendas and selected
financial information as agreed upon by the Trust and Ultimus from time to time; attend and participate in quarterly Board meetings to
the extent requested by the Board; and prepare or cause to be prepared minutes of the quarterly meetings of the Board. As agreed upon
by the Trust and Ultimus from time to time, Ultimus may provide the services described in this paragraph 3.3 in connection with a total
of four (4) Board meetings each year (one Board meeting each quarter), with any such work for additional Board meetings being performed
at Ultimus' then current hourly rate for such Board meeting and preparatory services.

**4.** **Other Services** 

Ultimus shall provide all necessary office space, equipment, personnel, and facilities for handling the affairs of the Trust; and shall provide the following services if reasonably requested by the Trust and if such services are consistent with Ultimus' obligations under the ETF Master Services Agreement and this Sub-Fund Administration Addendum:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.1.*** administer contracts on behalf of the Trust with, among others, the Trust's investment adviser(s),
distributor, custodian, transfer agent, index receipt agent, and fund accountant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.2.*** assist the Trust, the Trust's investment adviser(s) and the Trust's Chief Compliance Officer
in monitoring the Trust and its Funds for compliance with applicable limitations as imposed by the Investment Company Act and the rules
and regulations thereunder or set forth in the Trust's or any Fund's then current prospectus or statement of additional information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.3.*** coordinate with each Fund's service providers to facilitate the setup of the Fund on applicable
securities exchanges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.4.*** arrange for vendors to provide and post each Fund's indicative optimized portfolio value, as applicable,
and other information required by exemptive orders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.5.*** prepare and maintain the Trust's operating budget to determine proper expense accruals to be charged
to each Fund in order to calculate its daily net asset value;

Diamond Hill Capital Management, Inc. <br> Sub-Fund Administration Addendum Page 2 of 6

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.6.*** prepare, or cause to be prepared, expense and financial reports, including Fund budgets, expense reports,
pro-forma financial statements, expense and profit/loss projections and fee waiver/expense reimbursement projections on a periodic basis
as mutually agreed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.7.*** assist each Fund's independent registered public accounting firm with the preparation and filing
of the Fund's tax returns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.8.*** research and calculate the qualified dividend rate for income and short-term capital gain distributions
and assist in the production of supplemental tax information letters for each Fund, if applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.9.*** advise the Trust and its Board on matters concerning the Trust and its affairs including making recommendations
regarding dividends and distributions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.10.*** Monitor each Fund's holdings and operations for  **<u>post-trade compliance</u>** with its Prospectus
and Statement of Additional Information, SEC statutes, rules, regulations and policies and at the direction of the Fund's independent
public accountants and Trust counsel, monitor Fund holdings for compliance with IRS taxation limitations and restrictions and applicable
Federal Accounting Standards Board rules, statements and interpretations; provide periodic compliance reports to each investment adviser
or sub-adviser to the Trust, and assist the Trust, the Administrator and each investment adviser or sub-adviser to the Trust (collectively
referred to as "**Advisers**") in preparation of periodic compliance reports to the Trust, as applicable. Post-trade compliance
testing will be performed in accordance with testing policies and procedures, which in Ultimus' sole determination, are reasonably
designed to comport with industry standard post-trade compliance testing practices. Because such post-trade compliance testing is performed
using fund accounting data and data provided by third-party sources, its accuracy is dependent upon the accuracy of such data, and the
Administrator agrees and acknowledges that Ultimus is not liable for the accuracy or inaccuracy of such data. The Administrator further
agrees and acknowledges that the post-trade compliance testing performed by Ultimus is not intended to relieve the Trust or the Administrator
of their responsibilities with respect to fund portfolio compliance, including on a pre-trade basis. Moreover, and notwithstanding the
foregoing, Ultimus' ability and therefor its obligation to perform post-trade compliance testing shall be wholly-dependent upon
its timely receipt from third-party sources, including as applicable the Administrator, of all data necessary in Ultimus' sole determination
to properly perform such post-trade compliance testing, and, should Ultimus determine it to be necessary, the Administrator shall be required
to arrange for Ultimus to have secure look-through access to private fund holdings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.11.*** administer all disbursements for a Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.12.*** upon request, assist each Fund in the evaluation and selection of other service providers, such as independent
public accountants, printers and EDGAR providers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.13.*** provide the Fund(s), with an end-to-end solution to prepare and transmit annual and semi-annual shareholder
reports designed to be compliant with the SEC's tailored shareholder reporting requirements (the "**Tailored Shareholder Report Services** "). Funds will be provided tailored shareholder report ()"**TSR**") templates to choose from. A
Fund may, upon written notification to Ultimus, opt out of the Tailored Shareholder Report Services, in which event, Ultimus will extract
from Ultimus' systems the data required to prepare a TSR and deliver that data in an electronic format to the Fund or its designee
(the "**Data Extract Only Services** ").

Diamond Hill Capital Management, Inc. <br> Sub-Fund Administration Addendum Page 3 of 6

For special cases, the parties hereto may amend the procedures or services set forth in the ETF Master Services Agreement as may be appropriate or practical under the circumstances, and Ultimus may conclusively assume that any special procedure or service which has been approved by the Trust does not conflict with or violate any requirements of its Agreement and Declaration of Trust or then-current prospectuses, or any rule, regulation or requirement of any regulatory body.

**5.** **Board Governance Items** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***1.1.*** Creation of board book/electronic posting of materials received from various sources.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***1.2.*** Coordination of trustee fee payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***1.3.*** Drafting and provision of resolutions outside of the current inventory of Administrator's resolutions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***1.4.*** Coordinate the process for quarterly board material requests and collection.

**6.** **Regulatory Support Items** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.1.*** Draft Form 485(a) and Form 485(b) filings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.2.*** Draft Form 485(b) and Form 486(b) filings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.3.*** Coordinate notice filing/mailing of Form N-2

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.4.*** Draft Form 424(b)(3)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.5.*** Draft 497(c) or (j) filling

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.6.*** Coordinate filing of summary prospectuses

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.7.*** Coordinate mailing of summary prospectuses and prospectus supplements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.8.*** Draft Pre or DEF proxy filings (if needed)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.9.*** Draft information statements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.10.*** Draft Form N-RN

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.11.*** File Form 17g-1 filing as provided by Administrator

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.12.*** 24f-2 Filings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.13.*** Coordinate the print and mailing of annual and semi-annual reports

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.14.*** Coordinate the Quarterly repurchase offer drafting, filing and mailing

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.15.*** Coordinate EdgarNext maintenance with FilePoint

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.16.*** Coordination with FilePoint the posting of regulatory documents on website

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.17.*** Coordination of the update process for 485(b) and 486(b) including data requests, reviews, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.18.*** Coordination of filing SEC correspondence

**7.** **Additional Regulatory Services** 

Ultimus may provide other regulatory services not specifically listed herein upon such terms and for such fees as the parties hereto agree. Such other regulatory services may include, without limitation, (i) the drafting of initial registration statements and amendments thereto pursuant to Rule 485(a) under the Securities Act of 1933, as amended, (ii) the drafting of proxy statements and related materials in connection with the Trust's shareholder meetings, and (iii) the preparation of materials for, attendance at, and drafting of minutes for organizational and special Board meetings.

Diamond Hill Capital Management, Inc. <br> Sub-Fund Administration Addendum Page 4 of 6

**8.** **Tax Matters** 

Ultimus does not provide tax advice. Nothing in the ETF Master Services Agreement or this Addendum shall be construed or have the effect of rendering tax advice. It is important that the Trust or a Fund consult a professional tax advisor regarding its individual tax situation.

**9.** **Legal Representation** 

Notwithstanding any provision of the ETF Master Services Agreement or this Addendum to the contrary, Ultimus will not provide legal representation to the Trust or any Fund, including through the use of attorneys that are employees of, or contractually engaged by, Ultimus. The Trust acknowledges that in-house Ultimus attorneys exclusively represent Ultimus and will rely on outside counsel retained by the Trust to review all services provided by in-house Ultimus attorneys and to provide independent judgment on the Trust's behalf. The Trust acknowledges that because no attorney-client relationship exists between in-house Ultimus attorneys and the Trust, any information provided to Ultimus attorneys will not be privileged and may be subject to compulsory disclosure under certain circumstances. Ultimus represents that it will maintain the confidentiality of information disclosed to its in-house attorneys on a best efforts basis.

***Signatures are located on the next page.***

Diamond Hill Capital Management, Inc. <br> Sub-Fund Administration Addendum Page 5 of 6

The parties duly executed this Addendum as of January 1, 2026.

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| | | | |
|:---|:---|:---|:---|
|  | **Diamond Hill Capital Management, Inc.** |  | **Ultimus Fund Solutions, LLC** |
| By: | /s/ Thomas E. Line | By: | /s/ Gary Tenkman |
| Name: | Thomas E. Line | Name: | Gary Tenkman |
| Title: | Chief Financial Officer | Title: | Chief Executive Officer |

---

Diamond Hill Capital Management, Inc. <br> Sub-Fund Administration Addendum Page 6 of 6

## Exhibit 99.28

![](fp0095533-8_01.jpg)

February 25, 2026

Diamond Hill Funds<br> 325 John H. McConnell Blvd., Suite 200<br> Columbus, OH 43215

Re: <u>Opinion and Consent</u>

Ladies and Gentlemen:

A legal opinion and consent (the "Opinion and Consent") that we prepared was filed with Post-Effective Amendment No. 93 to the Registration Statement, File Nos. 333-22075 and 811-08061 (the "Registration Statement"), of Diamond Hill Funds. We hereby give you our consent to incorporate by reference the Opinion and Consent into Post-Effective Amendment No. 95 to the Registration Statement (the "Amendment"), and consent to all references to us in the Amendment.

---

| |
|:---|
| Very truly yours, |
| /s/ Thompson Hine LLP |
| Thompson Hine LLP |

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![](fp0095533-8_02.jpg)

## Exhibit 99.28

![](image_001.gif)

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We hereby consent to the incorporation by reference in this Registration Statement on Form N-1A of our report dated February 13, 2026, relating to the financial statements and financial highlights of 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 International Fund, Diamond Hill Short Duration Securitized Bond Fund, Diamond Hill Securitized Total Return Fund, Diamond Hill Core Bond Fund, Diamond Hill Core Plus Bond Fund, and Diamond Hill Large Cap Concentrated ETF, each a series of Diamond Hill Funds, which are included in Form N-CSR for the year or period ended December 31, 2025, and to the references to our firm under the headings "Financial Highlights" in the Prospectuses and "Portfolio Transactions and Brokerage" and "Independent Registered Public Accounting Firm" in the Statements of Additional Information.

---

| |
|:---|
| /s/ COHEN & COMPANY, LTD. |
| COHEN & COMPANY, LTD. |
| Cleveland, Ohio |
| February 23, 2026 |

---

![](image_002.gif)

## Exhibit 99.28

![](fp0095533-8_03.jpg)

**Diamond Hill Capital Management, Inc.**

**Diamond Hill Funds**

**Diamond Hill Securitized Credit Fund**

**Code of Ethics**

**Statement of General Principles** 

This Code of Ethics (the "Code") has been adopted by the Diamond Hill Funds and the Diamond Hill Securitized Credit Fund (collectively, the "Funds"), and Diamond Hill Capital Management, Inc. ("Diamond Hill"), which serves as the investment adviser to the Funds. The adoption of this Code is in accordance with Rule 17j-1 under the Investment Company Act of 1940, as amended (the "Company Act"), and Rule 204A-1 under the Investment Advisers Act of 1940, as amended (the "Advisers Act"). Terms that are capitalized are defined within this document and in the Appendix.

The officers and employees of Diamond Hill owe a fiduciary duty to clients to which Diamond Hill provides investment advisory and related services, which include separate accounts, collective investment trusts ("CITs"), mutual funds, private funds, other pooled vehicles including sub-advised funds, model delivery programs, and their respective shareholders (collectively, "Clients"). In addition, the Funds' officers and trustees also owe a fiduciary duty to the Funds and their shareholders. A fiduciary duty means a duty of loyalty, fairness, good faith, and the obligation to adhere not only to the specific provisions of this Code, but also to the general principles that guide the Code and to other applicable provisions of federal securities laws ("General Principles"). The General Principles are:

● The duty to govern, which is the obligation imposed on trustees to manage the business affairs of the Funds;

● The duty of diligence, which is the standard of care to which Affiliated Persons are expected to adhere when performing the duties of their positions;

● The duty of loyalty to Clients, which requires Affiliated Persons to avoid any conflict of interest or self-dealing, and bars them from taking advantage of a business opportunity that comes to their attention only by virtue of their position(s);

● The requirement that the interests of Clients be placed before the interests of Affiliated Persons at all times;

● The requirement that all personal Securities transactions be conducted in a manner consistent with the Code and in such a manner as to avoid any actual or potential conflict of interest or any abuse of an Affiliated Person's position of trust and responsibility;

● The requirement that all Affiliated Persons comply with applicable federal securities laws and all other applicable laws and governmental rules and regulations; and

● The requirement that all Affiliated Persons fully disclose all potential conflicts of interest.

![](fp0095533-8_04.jpg)

Affiliated Persons must at all times safeguard Client information by maintaining the confidentiality of Client identities, Security holdings, Security transactions, financial circumstances, and other Confidential Information. Affiliated Persons are prohibited both during and following their employment with Diamond Hill from taking, using, disclosing, distributing, or disseminating any Client Confidential Information or the Client's affiliation with the Funds: (i) for their own benefit, or (ii) for the benefit of others, including any new employer or prospective new employer.

Code of Ethics <br> Last Amended: November 1, 2025

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Affiliated Persons must promptly report any violations or suspected violations of this Code to the Chief Compliance Officer ("CCO"). Additionally, Affiliated Persons may report a violation of the federal securities laws to the CCO or to the SEC as defined in Rule 21F-3 of the Securities Exchange Act of 1934. If the suspected infringement violates both the Code and federal securities laws, Affiliated Persons may elect to report this violation to the CCO, SEC or both. Any retaliation for the reporting of a violation under this Code (*i.e.*, "whistleblowing") will constitute a violation of the Code.

**Section 1: Personal Investment Policies** 

At the core of Diamond Hill's business philosophy is the unwavering commitment to ensuring that Clients' interests come first, and Employees' interests are aligned with Clients. The collective investments of Employees across all Diamond Hill strategies serve as the most meaningful reflection of this alignment.

Employees are encouraged to invest in Diamond Hill strategies and adopt a long-term perspective, aligning with Diamond Hill's investment principles and prioritizing the best interests of the Funds and their shareholders. The Funds are not designed to serve as a vehicle for frequent trading, and thus, do not authorize, and use reasonable methods to discourage, short-term or excessive trading. Employees must be familiar with each Fund's Market Timing and Frequent Trading Policy described in the prospectus in which they invest and must not engage in trading activity that may violate the purpose or intent of a particular Fund's Market Timing and Frequent Trading Policy.

Additionally, to further align Employee investment activities with the interests of Clients, Employees are restricted from trading mutual funds classified under specific Morningstar categories in which Diamond Hill competes. By limiting trading in these funds, we reinforce our commitment to ensuring that our personal investments do not conflict with the investment strategies and objectives we implement on behalf of our Clients.

It is imperative that Employees conduct their personal trading activities with the highest regard for the General Principles to avoid any possible conflict of interest, any appearance of a conflict, or engage in activities that could lead to disciplinary action. Employees' personal Securities transactions must also comply with: (i) Diamond Hill's Insider Trading Policy, and (ii) Rule 17j-1 under the Company Act and Rule 204A-1 under the Advisers Act. Under these rules, no Employee may:

● Employ any device, scheme, or artifice to defraud a Client;

● Make a false statement of a material fact to a Client or fail to disclose a material fact, if doing so, considering the circumstances, would mislead the Client;

● Engage in any act, practice, or course of business that operates or would operate as a fraud or deceit upon a Client; or

● Engage in any manipulative practice with respect to a Client.

**Permitted Securities – Reporting Required**

Employees are permitted to transact in the following Securities, which require reporting as outlined in Section 2:

● The Funds;

● Mutual funds for which Diamond Hill serves as the sub-adviser;

● Mutual funds (both open-end and closed-end), exchange-traded funds ("ETFs"), and variable annuities except those classified in the following Morningstar Categories:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Small Value

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Mid-Cap Value

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Large Value

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Long-Short Equity

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Foreign Large Value

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Securitized Bond – Diversified

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Intermediate Core Bond

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Intermediate Core Plus Bond

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Non-Traditional Bond

Code of Ethics <br> Last Amended: November 1, 2025 Page 2

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Exceptions to the Morningstar Category Restriction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o This restriction does not apply to Diamond Hill's or a Family Member's 401(k) plans, 529 Plans,
and Health Savings Accounts (collectively referred to as "Unrestricted Plan Accounts").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Family Members investing in their current employer's mutual funds are also exempt from this restriction.

● Shares of publicly traded equity Securities issued by an Employee's or Family Member's current employer, provided they were:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Obtained through Unrestricted Plan Accounts,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Acquired through an employee stock ownership plan ("ESOP"), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Granted as compensation.

**Permitted Securities - Exempt from all Reporting**

Employees are permitted to transact in the following Securities, which are exempt from all reporting ("Exempt Securities"):

● Direct obligations of the US Government;

● Money market instruments (bankers' acceptances, bank certificates of deposit, commercial paper, repurchase agreements, and other high quality short-term debt instruments);

● Money market mutual funds;

● Unaffiliated mutual funds offered within Unrestricted Plan Accounts;

● Mutual funds managed by a Family Member's current employer;

● Unaffiliated mutual funds offered within unit investment trusts;

● Direct investment in cryptocurrencies (*e.g.*, Bitcoin), that are not classified as "securities" by the SEC<sup>1</sup>.

**Permitted Securities - Exempt from Pre-Clearance**

All transactions conducted by Employees do not require pre-clearance, except for certain legacy Security transactions and private placement Security transactions, which must follow the pre-clearance procedures outlined in their respective sections below.

**Prohibited Securities**

Employees may *<u>not</u>* purchase any of the following Securities ("Prohibited Securities"):

● Initial public offerings, which includes initial coin offerings;

● US and non-US equities (excluding shares of Diamond Hill Investment Group, Inc.), which include American depository receipts, real estate investment trusts, master limited partnerships, and business development corporations;

● Single-stock ETFs;

● US and non-US taxable fixed income Securities, excluding direct obligations of the US Government;

● Puts, calls, futures, or any other derivative on US or non-US equity and taxable fixed income Securities;

● Mutual funds (both open-end and closed-end), ETFs, and variable annuities that are in any one of the following Morningstar Categories<sup>2</sup>:

<sup>1</sup> Indirect investment in Bitcoin or other virtual cryptocurrencies through a publicly tradable security, such as a statutory trust traded in the over-the-counter market, is permitted under this Code but must be disclosed pursuant to the procedures in Section 2 below.

<sup>2</sup> For funds not categorized by Morningstar, Compliance will determine eligibility on a case-by-case basis.

Code of Ethics <br> Last Amended: November 1, 2025 Page 3

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Small Value

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Mid-Cap Value

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Large Value

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Long-Short Equity

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Foreign Large Value

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Securitized Bond - Diversified

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Intermediate Core Bond

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Intermediate Core Plus Bond

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Non-Traditional Bond

Exceptions to the Morningstar Category Restriction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o This restriction does not apply to Diamond Hill's or a Family Member's Unrestricted Plan Accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Family Members investing in their current employer's mutual funds are also exempt from this restriction.

**Legacy Security Transactions**

Employees may sell a Prohibited Security that was owned prior to either commencing employment at Diamond Hill or the adoption of this revised Code if the following criteria are satisfied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Total sale proceeds do not exceed $50,000 per trading day; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Security has a market capitalization in excess of $1 billion.

If an Employee wants to sell a Prohibited Security that does not meet the criteria above, they must consult with the CCO or delegate, who will determine an appropriate time for the Employee to sell the Prohibited Security to ensure that it is not within seven (7) calendar days before or after the same Security or Related Security has been executed on behalf of a Client.

**Private Placement Security Transactions**

Any purchase of a private placement Security must be pre-approved by the CCO. In connection with a private placement acquisition, the CCO will take into account, among other factors, whether: (i) the investment opportunity should be reserved for a Client; (ii) the opportunity is being offered to the Employee by virtue of the Employee's position with the Funds or Diamond Hill; and/or (iii) the investment opportunity is consistent with the overall spirit of the Code. The CCO will retain a record of any such pre-approval. If authorized, Employees must disclose any subsequent investment in the same issuer if and when it occurs. To avoid a conflict of interest, any decision to purchase Securities of the same issuer on behalf of a Client will be independently reviewed by Diamond Hill personnel who have no personal interest in the issuer.

**Disclosure of Newly-Opened Brokerage or Securities Accounts**

Employees are required to disclose any accounts that hold or have the ability to hold non-Exempt Securities. If an account can hold securities beyond Exempt Securities, it must be disclosed. For example, an Unrestricted Plan Account that only allows investments in unaffiliated mutual funds does not need to be disclosed. However, if the account can hold Diamond Hill Funds, individual stocks, or other non-Exempt Securities, it must be disclosed.

Employees must disclose their new brokerage or Securities accounts in the compliance reporting system upon opening the account, but no later than 30 days after the calendar quarter-end in which the account was opened.

Prior to opening an account, Employees should confirm with Compliance if an electronic feed has been established with the broker or custodian. If an electronic feed has not been established, Employees should consider the broker or custodian's ability to electronically send transaction and holding reports to the compliance reporting system as required in Section 2 of the Code. If electronic reporting is not possible, it is the Employee's responsibility to manually input the required disclosures in the compliance reporting system.

Code of Ethics <br> Last Amended: November 1, 2025 Page 4

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**Requests for Code Exceptions**

Employees wishing to request an exception to the provisions outlined in this Code should submit a written request to the CCO setting forth the pertinent facts and justification for the exception. The CCO will only approve such requests when it is clear beyond dispute that Client interests will not be adversely affected or compromised. Written approval from the CCO must be received before the Employee can engage in the particular activity.

**Section 2: Personal Investment Disclosures and Affirmation Procedures**

Disclosures made pursuant to the Code requirements will be maintained securely in the compliance reporting system. Access to such disclosures will be limited to members of the Compliance Team and will be reviewed by Compliance to verify compliance with the Code.

**New Employee Certification and Disclosures**

Within ten (10) days of becoming an Employee, each new Employee must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Certify they have received, read, and understand this Code and acknowledge they are subject to it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Disclose Security holdings in Employee Accounts, other than Exempt Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. With respect to ownership in an account where full investment discretion has been granted to a third party
via a contract or agreement between the Employee and the third party (a "Managed Account"), disclose the account and provide
an attestation from an authorized third-party representative stating the third party has not purchased or sold Securities based on direct
or indirect influence or control from the Employee.

**Quarterly Transaction Reports**

Within 30 days after the end of each calendar quarter, each Employee must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Disclose Employee Accounts, which includes all of the following accounts that hold Securities that are
not Exempt Securities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Accounts of the Employee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Accounts of the Employee's Family Members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Accounts for which the Employee acts as trustee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Accounts for which the Employee has a direct or indirect interest; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Any other type of account for which the Employee exercises security trading and selection discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Disclose personal Security transactions conducted in an Employee Account. Employees are not required to
disclose the following Security transactions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. In a Managed Account as long as the third party has full discretion in executing all transactions without
direct or indirect influence or control from the Employee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Pursuant to an Automatic Investment Plan; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. If the report would duplicate information contained in an electronic feed from a broker or custodian that
will be received no later than 30 days after the end of the applicable calendar quarter.

Code of Ethics <br> Last Amended: November 1, 2025 Page 5

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**Annual Certifications and Holdings Reports**

At least once in each 12-month period (generally as of December 31 of each year), each Employee must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Certify that they have read and understand the Code and acknowledge they are subject to it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Disclose Security holdings in Employee Accounts, other than Exempt Securities, within 45 days of each
calendar year end.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. With respect to their ownership in a Managed Account, provide within 45 days of calendar year end an attestation
from an authorized third-party representative stating the third party has full discretion in executing all transactions with no direct
or indirect influence or control from the Employee and the third party has not requested approval or direction from the Employee when
executing transactions.

**Exceptions to Reporting**

Transactions and holdings in charitable giving accounts are excluded from the above reporting requirements so long as the Employee or Family Member does not have investment discretion over the assets in the account.

**Roommate Disclosure**

Employees must disclose if they live in the same household with anyone who is not their spouse or their child and is 18 years of age or older ("Roommate"). New Employees must complete this disclosure within ten (10) days of becoming an Employee, and existing Employees have a continuous ongoing obligation to promptly disclose any new arrangement of living in the same household with a Roommate. Employees living with a Roommate must also affirm annually the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. They have not and will not disclose information to their Roommate about any Security transactions executed
or under consideration for execution on behalf of Clients;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. They are not aware of any inadvertent disclosure to their Roommate of Security transactions described
above; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. If they are aware of any Security transactions executed by their Roommate as a result of intentional or
inadvertent disclosure of Security transactions described above, they will immediately report it to the CCO.

**Reporting by Independent Trustees**

Independent Trustees must report a Security transaction to the CCO only if such trustee, at the time of that transaction, knew or, in the ordinary course of fulfilling their official duties as a trustee, should have known that, during the 15-day period immediately before or after the date of the transaction by the trustee, such Security was purchased or sold by the Funds or was being considered by the Funds or Diamond Hill for purchase or sale by the Funds.

**Compliance Monitoring and Reporting Procedures**

Compliance will review Employee trade confirmations or transactions no less frequently than quarterly, to determine whether any violations of this Code occurred and to identify any trading patterns that may be inconsistent with this Code. If any issues or concerns arise during the review of the CCO's trade confirmations or transactions, they will be escalated to the CCO's direct manager.

At least annually, the CCO will report to the Funds' board of trustees a written report describing any issues that have arisen under the Code since the last report and certifying that the adopted procedures are reasonably designed to prevent violations of the Code. The CCO will also certify to the Funds' board of trustees that the Funds and Diamond Hill have adopted procedures reasonably necessary to prevent Employees from violating this Code. The report will identify any violations of this Code, any significant remedial action taken during the past year, and any recommended procedural or substantive changes to this Code based on the CCO's experience, evolving industry practices, or legal developments.

Code of Ethics <br> Last Amended: November 1, 2025 Page 6

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Compliance will inform the Employees of their reporting obligations, supply a copy of the Code, and receive from Employees an acknowledgement of their receipt of this Code. Compliance will cause the Funds and Diamond Hill to maintain records in the manner and to the extent set out in Rule 17j-1(f) under the Company Act and Rule 204A-1 under the Advisers Act.

**Section 3: Outside Business Activities and Other Disclosures**

To properly identify, manage, and mitigate potential conflicts of interest, it is necessary for Employees to disclose their Outside Business Activities and relationships to Compliance for review of any potential conflicts of interest.

**Outside Business Activity**

Employees may not engage in outside employment or other outside activity that conflicts or otherwise interferes with their duties and responsibilities at Diamond Hill. Employees are to avoid outside employment or other outside activity that competes with Diamond Hill or conflicts with the interests of Diamond Hill or its Clients.

Certain types of Outside Business Activities may create a conflict of interest or the appearance of a conflict of interest. For the purposes of this Code, an "Outside Business Activity" includes any role in which an Employee receives or expects to receive income, wages, or other compensation for services performed or provided. Additionally, OBAs also encompass unpaid roles where the Employee serves in a board position (including an advisory board) or on a committee, or a management capacity at an academic institution, charitable organization, or other non-profit. These roles may involve governance responsibilities, such as hiring vendors, selecting money managers, or overseeing financial or investment accounts, either directly or indirectly.

Routine volunteer activities, where the Employee does not hold a governance or decision-making role, are not considered Outside Business Activities under this policy.

**Family Member Relationships**

Employees must disclose relationships when a Family Member or other close relative's employment, board membership, political position, or other activity could create a potential conflict or the appearance of a conflict with Diamond Hill or its Clients. The following are examples of relationships that must be disclosed:

● An Employee's spouse is employed at a firm that Diamond Hill or the Funds do business with;

● An Employee's aunt or uncle works in the C-suite or other senior position of a publicly-traded company (where they may frequently be in possession of material non-public information);

● An Employee's parent or in-law works on the sell-side trade desk at broker or dealer with which Diamond Hill executes transactions or otherwise does business;

● An Employee's child is a research analyst at an institutional consultant with which Diamond Hill does business;

● An Employee's close cousin is a trustee for a city retirement plan; or

● An Employee's sibling is directly involved in (or has oversight of) manager selection at their employer or at a charitable organization they serve.

**Policy**

Employees must disclose Outside Business Activities or family member relationships, such as those described above, that may present a potential conflict, an actual conflict, or the appearance of a conflict of interest with Diamond Hill or its Clients. To mitigate potential conflicts of interest, Diamond Hill may impose specific conditions or limitations on an Employee's Outside Business Activity or where circumstances warrant, prohibit the activity outright.

Code of Ethics <br> Last Amended: November 1, 2025 Page 7

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**Disclosure Procedure**

Within ten (10) days of becoming an Employee, each new Employee must disclose any Outside Business Activities or family member relationships in the compliance reporting system.

Employees have a continuous ongoing obligation to promptly disclose any new Outside Business Activity or family member relationship. An Outside Business Activity must be approved by the Employee's manager and Compliance prior to commencement. In addition, Employees will be required to review and confirm their disclosed Outside Business Activities and family member relationships on an annual basis.

Employees are prohibited from serving on the boards of directors of: (1) publicly-traded companies unaffiliated with Diamond Hill, and (2) not-for-profit organizations where the Employee acts in any investment-related capacity (*i.e.,* any direct or indirect role relating to providing investment advice or choosing investment advisers) without prior approval from the Employee's manager and the CCO.

The CCO or the CCO's delegate will monitor and evaluate all Employee disclosures to determine if the disclosed activity or relationship could create a conflict of interest with Diamond Hill or Clients. The CCO will also evaluate the materiality of any conflicts to determine if it requires:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Additional policies and procedures to mitigate or manage the conflict; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Disclosure to Clients.

**Section 4: Sanctions**

Strict compliance with the provisions of the Code is a condition of employment. Any violation of this Code by an Employee may result in disciplinary action, which may include, but is not limited to, unwinding of trades, warnings, monetary fines or censures, suspension of personal trading privileges, and suspension or termination of employment. In addition, Employees must disgorge and donate to a selected charity of their choice all profits realized on transactions prohibited by this Code, including transactions in Prohibited Securities that are required to be unwound, except for de minimis profits of less than $20. Repeated offenses will likely subject an Employee to additional sanctions of increasing severity.

**Section 5: Training**

On an annual basis, Compliance will conduct Employee training to inform Employees about, and help ensure compliance with, the requirements of this Code.

Code of Ethics <br> Last Amended: November 1, 2025 Page 8

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**Appendix - Definitions**

<u>Affiliated Persons</u>: An employee, officer, or trustee of the Funds or an employee or officer of Diamond Hill Capital Management, Inc.

<u>Beneficial Interest</u>: Ownership or any benefits of ownership, including the opportunity to directly or indirectly profit or otherwise obtain financial benefits from any interest in a Security.

<u>Broker</u>: Any person or organization engaged in the business of effecting transactions in Securities for the account of others.

<u>CCO</u>: The Chief Compliance Officer of Diamond Hill and the Funds, including any such designee(s) of the CCO.

<u>Compliance:</u> The compliance team for Diamond Hill.

<u>Confidential Information</u>: Includes but is not limited to: (1) any Client information that is not already public information, (2) any Employee personal, financial, or employment data, (3) any non-public investment research information obtained or derived (data or written), and (4) any other corporate information not already disclosed on the Diamond Hill's web site or in other public filings.

<u>Cryptocurrency</u>: Any virtual or digital representation of value, token or other asset in which encryption techniques are used to regulate the generation of such assets and to verify the transfer of assets, which is not a Security or otherwise characterized as a security under federal securities laws.

<u>Independent Trustees</u>: Trustees who are not interested persons of the Funds, as defined in the Company Act and whose affiliation with the Funds is solely by reason of being a trustee of the Funds.

<u>Employees</u>: The officers of the Funds and the employees and officers of Diamond Hill Capital Management, Inc. All Employees are considered to have access to non-public information regarding a Fund's purchase or sale of securities and its portfolio holdings and are, therefore, considered ("Access Persons"), as that term is defined in Rule 17j-1 under the Company Act.

<u>Employee Account</u>: Each account in which an Employee or Family Member has any direct or indirect Beneficial Interest or over which such person exercises control or discretion, including but not limited to any joint account, partnership, corporation, trust, or estate. Employee Accounts do not include accounts in which an Employee's Family Member exercises investment discretion in a fiduciary capacity for the benefit of others who are not considered Family Members as defined in this paragraph.

<u>Family Member</u>: Includes immediate family members living in the same household and any other relative of the Employee (including in-laws) to whose support an Employee directly or indirectly contributes or who the Employee exercises discretion on securities transactions.

<u>Initial Coin Offering</u>: Initial coin offerings, virtual tokens offerings, virtual coin offerings (also called ICOs, virtual coins or token sales) are digital assets used by individuals or entities to raise capital. In return a purchaser receives certain rights, ranging from access to a future service once launched to rights to future profits. Virtual coins or tokens are purchased with either traditional currencies or virtual currencies. After they are issued, virtual coins or tokens may be resold to others in a secondary market.

<u>Managed Account</u>: An account where full investment discretion has been granted to a third party via a contract or agreement between the Employee and the third party.

Code of Ethics <br> Last Amended: November 1, 2025 Page 9

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<u>Security</u>: Any note, stock, treasury stock, security future, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, pre-organization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest in oil, gas or other mineral rights, any put, call, straddle, option, or privilege on any security (including a certificate of deposit) or on any group or index of securities (including any interest therein or based on the value thereof), or any put, call, straddle, option, or privilege entered into on a national securities exchange relating to foreign currency, or, in general, any interest or instrument commonly known as a "security", or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase any of the foregoing.

<u>Related Security</u>: Securities issued by the same issuer or issuer under common control, or when either security gives the holder any contractual rights with respect to the other security, including options, warrants or other convertible securities.

Code of Ethics <br> Last Amended: November 1, 2025 Page 10