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Diamond Hill Announces Lower Fee For Mid Cap Fund

DHIL

PR Newswire

COLUMBUS, Ohio, Jan. 9, 2017 /PRNewswire/ -- Diamond Hill Capital Management, Inc., a subsidiary of Diamond Hill Investment Group, Inc. (NASDAQ: DHIL), announced the reduction of the management fee for the Diamond Hill Mid Cap Fund by five basis points to 60 basis points effective January 1, 2017. With a three-year track record as of December 31, 2016, the Mid Cap Fund also received its first star rating from Morningstar, earning four stars*. 

Diamond Hill Investment Group logo

"Adding value for our clients is always our first priority, and we are mindful that our clients have alternative investment options, both passive and active," said Chris Bingaman, CEO and Portfolio Manager, Diamond Hill. "One of our primary goals is to achieve net of fee returns that exceed passive alternatives over time."

Diamond Hill believes management fees should be reasonable and competitive. With this fee reduction, the Mid Cap Fund's total expense ratio for Class I shares (DHPIX) is in the lowest-cost quintile1. Diamond Hill Funds has also reduced its administration fees across its mutual fund family in nine of the past 12 years.   

"After completing our value-add analysis, we believe this lower fee and the implied net outperformance goal will better align with our goal of top quartile peer group returns over rolling five-year periods," said Chris Welch, Mid Cap Fund Portfolio Manager and Co-Chief Investment Officer, Diamond Hill. For more information about our fee philosophy, please see our 2011 investment letter titled "Active Management Fees & Alignment of Interests" on our website, www.diamond-hill.com.   

1 Source: Morningstar Direct as of January 5, 2017. Total Expense Ratio or "Prospectus Net Expense Ratio" is relative to all share classes in the Morningstar Mid Cap Value category.

About Diamond Hill:
We are an independent investment management firm with significant employee ownership and $19.4 billion in assets under management as of December 31, 2016. We provide investment management services to institutions and individuals through mutual funds, institutional separate accounts, exchange traded funds, and private investment funds. Our entire investment team shares the same intrinsic value investment philosophy, and our interests are firmly aligned with our clients through significant investment in our strategies. For more information, visit www.diamond-hill.com

An investor should consider the Fund's investment objectives, risks, and charges and expenses carefully before investing or sending any money. This and other information about the Fund can be found in the Fund's prospectus or summary prospectus which can be obtained at www.diamond-hill.com or by calling 888-226-5595. Please read the prospectus or summary prospectus carefully before investing. The Diamond Hill Funds are distributed by BHIL Distributors, LLC (Member FINRA/SIPC). Diamond Hill Capital Management, Inc., a registered investment adviser, serves as Investment Adviser to the Diamond Hill Funds and is paid a fee for its services. Diamond Hill Funds are not FDIC insured, may lose value, and have no bank guarantee.

*The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. The Overall Morningstar RatingTM for the Mid Cap Fund is based on 337 mid-cap value funds as of 12/31/16. The Fund's Class I rating was 4 stars among 337 mid-cap value funds for the 3-year period ended 12/31/16.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/diamond-hill-announces-lower-fee-for-mid-cap-fund-300388054.html

SOURCE Diamond Hill Investment Group, Inc.