Mutual Fund Summary Prospectus (497k)
02 March 2013 - 6:43AM
Edgar (US Regulatory)
Summary Prospectus
February 28, 2013
Diamond Hill Select Fund
Before you invest, you may want to review
the funds Prospectus, which contains information about the fund and its risks. The funds Prospectus and Statement of Additional Information, both dated February 28, 2013, are incorporated by reference into this Summary Prospectus.
For free paper or electronic copies of the funds Prospectus and other information about the fund, go to http://www.diamond-hill.com/cgi-bin/mf/fund-information.pl?tab=smallcap, email a request to info@diamond-hill.com, call 888-226-5595, or
ask any financial advisor, bank, or broker-dealer who offers shares of the fund.
Investment Objective
The
investment objective of the Diamond Hill 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 and hold shares of the fund.
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Annual Fund Operating Expenses
(expenses that you pay each
year as a percentage of the value of your investment)
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Class Y
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Management fees
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0.70%
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Distribution (12b-1) fees
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None
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Other expenses
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0.11%
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Total annual fund operating expenses
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0.81%
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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 $10,000 in the fund for the time periods indicated. It also shows costs if you sold your shares at the end of the period or continued to hold them. The Example also assumes that your investment has a 5% return each
year and that the funds operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
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1 Year
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3 Years
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5 Years
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10 Years
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Class Y
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$
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83
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$259
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$450
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$1,002
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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 annual fund operating expenses or in the Example, affect the
funds performance. During the most recent fiscal year, the funds portfolio turnover rate was 38% of the average value of its portfolio.
Principal Investment Strategy
The fund, under normal market conditions, invests its assets in 30 to 40 select 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, rights and warrants, S&P Depositary Receipts (SPDRs), American Depositary Receipts (ADRs) and other similar instruments.
The Adviser focuses on estimating a companys value independent of its current stock price. To estimate a companys value, the Adviser concentrates 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, regulatory factors, the threat of technological obsolescence, and a variety of other industry factors. If the Advisers estimate of a companys 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
stock is selected, the Adviser continues to monitor the companys strategies, financial performance and competitive environment. The Adviser may sell a security as it reaches the Advisers estimate of the companys value; if it
believes that the companys 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 (FDIC) or any other government agency. You may lose money by investing in the fund. Below are the main
risks of investing in the fund.
Equity Market Risk
Overall stock market risks may affect the value of the fund. Factors such as domestic economic growth and market conditions, interest rate levels, and political events affect the securities markets.
When the value of the funds investments goes down, your investment in the fund decreases in value.
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Summary Prospectus
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February 28, 2013
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Diamond Hill Funds
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1 of 4
Small Cap and Mid Cap Company Risk
Investments in small cap 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 cap 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.
Securities Lending Risk
To generate additional income, the fund may lend its portfolio securities to financial institutions. Loaned securities will be secured by cash collateral that the fund may invest 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 borrow default risk. Investment risk is the risk that the
fund will lose money from 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.
Management Risk
The Advisers
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 Advisers intrinsic value-oriented approach may fail to produce the intended results.
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 funds annual total returns over time, and shows that fund performance can change from year to year. The table
shows the funds average annual total returns for certain time periods compared to the returns of a broad-based securities index. The bar chart and table provide some indication of the risks of investing in the fund. The performance shown for
Class Y shares prior to their inception on December 30, 2011 is based on the performance of Class A shares of the Fund, which invest in the same portfolio of securities, but which are not offered in this prospectus. Prior performance for
Class Y shares has been adjusted to reflect differences in sales charges between Class Y shares and Class A shares. Of course, the funds 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.
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Class Y Annual Total Return
years ended 12/31
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Best Quarter:
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2Q 09, +19.60%
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Worst Quarter:
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4Q 08, -20.73%
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Average Annual Total Returns
as of 12/31/12
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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 shareholders 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.
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Inception
Date of Class
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One Year
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Five Year
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Since
Inception
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Class Y
Return Before Taxes
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12/30/2011
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11.69%
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1.44%
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3.70%
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Class Y
Return after Taxes on Distributions
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11.10%
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1.18%
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3.00%
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Class Y
Return after Taxes on Distributions and Sales of Fund Shares
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8.37%
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1.18%
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2.90%
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Russell 3000 Index
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16.42%
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2.04%
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4.34%
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Historical performance for Class Y shares prior to their inception is based on the performance of Class A shares. The
inception date for Class A is 12/30/2005. Class Y performance has been adjusted to reflect differences in sales charges.
The Russell 3000
Index is a market-capitalization weighted index measuring the performance of the 3,000 largest U.S. companies based on total market capitalization.
You cannot invest directly in an index. Unlike mutual funds, an index does not incur expenses. If expenses were deducted, the actual returns of an index
would be lower.
Portfolio Management
Investment Adviser
Diamond Hill Capital Management, Inc.
Portfolio Managers
William Dierker
Portfolio Manager
since 9/2006
Austin Hawley
Portfolio Manager
since 1/2013
Richard Snowdon
Portfolio Manager
since 1/2013
Buying and Selling Fund Shares
Minimum Initial Investment
$500,000
Minimum Additional Investment
$100
To Place Orders
Mail:
Diamond Hill Select Fund
P.O. Box 183179
Columbus, OH 43218-3179
Phone: 888-226-5595
Transaction Policies
In general, you can buy or sell shares of the fund by mail or phone on any business day. You can generally pay for shares by check or wire. When selling shares, you
will receive a check, unless you request a wire. You also may buy and sell shares through a financial professional.
Dividends, Capital Gains and
Taxes
The funds 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.
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Summary Prospectus
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February 28, 2013
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Diamond Hill Funds
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2 of 4
Potential Conflicts of Interest
If you purchase the fund 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 intermediarys web site for more
information.
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Summary Prospectus
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February 28, 2013
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Diamond Hill Funds
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3 of 4
325 John H. McConnell Blvd, Suite 200
Columbus, OH 43215
SUMY-SL 022813
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