Diamond Hill Large Cap Fund Class Y NCSR Certified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-08061

Diamond Hill Funds

(Exact name of registrant as specified in charter)

325 John H. McConnell Boulevard, Suite 200, Columbus, Ohio 43215

(Address of principal executive offices) (Zip code)

Thomas E. Line

325 John H. McConnell Boulevard, Suite 200, Columbus, Ohio 43215

(Name and address of agent for service)

Registrant’s telephone number, including area code: 614-255-3333

Date of fiscal year end: December 31

Date of reporting period: December 31, 2020

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

Table of Contents

Mission and Guiding Principles	1
Management Discussion of Fund Performance (Unaudited)
Diamond Hill Small Cap Fund	2
Diamond Hill Small-Mid Cap Fund	4
Diamond Hill Mid Cap Fund	6
Diamond Hill Large Cap Fund	8
Diamond Hill All Cap Select Fund	10
Diamond Hill Long-Short Fund	12
Diamond Hill Global Fund	14
Diamond Hill International Fund	16
Diamond Hill Short Duration Securitized Bond Fund	18
Diamond Hill Core Bond Fund	20
Diamond Hill Corporate Credit Fund	22
Diamond Hill High Yield Fund	24
Financial Statements
Schedules of Investments	26
Statements of Assets & Liabilities	90
Statements of Operations	93
Statements of Changes in Net Assets	96
Financial Highlights	114
Notes to Financial Statements	138
Report of Independent Registered Public Accounting Firm	157
Other Items	159
Schedule of Shareholder Expenses	163
Management of the Trust	166

Cautionary Statement: At Diamond Hill, we pledge that, “we will communicate with our clients about our investment performance in a manner that will allow them to properly assess whether we are deserving of their trust.” Our views and opinions regarding the investment prospects of our portfolio holdings and Funds are “forward looking statements” which may or may not be accurate over the long term. While we believe we have a reasonable basis for our opinions, actual results may differ materially from those we anticipate. Information provided in this report should not be considered a recommendation to purchase or sell any particular security.

You can identify forward looking statements by words like “believe,” “expect,” “anticipate,” or similar expressions when discussing prospects for particular portfolio holdings and/or one of the Funds. We cannot assure future results. You should not place undue reliance on forward-looking statements, which speak only as of the date of this report. We disclaim any obligation to update or alter any forward-looking statements, whether as a result of new information, future events, or otherwise.

This material is not authorized for distribution to prospective investors unless preceded or accompanied by a Prospectus. Investors should consider the investment objectives, risks, charges, and expenses of the Diamond Hill Funds carefully before investing. The prospectus or summary prospectus contain this and other important information about the Fund(s) and are available at 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 Foreside Financial Services, LLC (Member FINRA). 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.

Vision

At Diamond Hill, our goal is to be an exceptional active investment boutique that our clients trust to deliver excellent long-term investment outcomes from a team aligned with their success.

The Guiding Principles of Our Investment Philosophy

VALUE

We recognize that market price and investment value are independent in the short term but tend to converge over time.

LONG-TERM

We maintain a long-term focus both in investment analysis and management of our business.

DISCIPLINE

We invest with discipline to increase potential return and protect capital.

ALIGNMENT

We treat every investment as a partial ownership interest in that company and align our interests with our clients through significant personal investment in our strategies.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 1

Management Discussion of Fund Performance (Unaudited)

Diamond Hill Small Cap Fund

Investing Environment

The year 2020 was one for the history books as the coronavirus pandemic swept the globe. Economic activity ground to a halt as countries hardest hit by the pandemic faced closing businesses, spending declines and record unemployment levels. Despite unprecedented economic and market disruption, global equities posted positive returns in excess of 16% in 2020 (as measured by the MSCI All Country World Index) and U.S. stocks returned in excess of 18% (as measured by the S&P 500^® Index), a remarkable advance given the economic backdrop. Technology stocks were clear winners in 2020 as the work from home (WFH) era took hold. Online retailers also did well, benefiting from a shift to online shopping in the wake of the pandemic. Energy stocks struggled as oil demand and prices fell on weak economic and transportation activity. In the back half of the year, central bank liquidity, fiscal stimulus, and optimism of rapid-to-market COVID-19 vaccines provided stocks a welcome tailwind.

Performance Discussion

Top contributors within the portfolio during the period included: homebuilder Green Brick Partners, Inc., mortgage servicing company Mr. Cooper Group, Inc., regional bank Live Oak Bancshares, Inc., ski resort owner and operator Vail Resorts, Inc. and consumer apparel manufacturer Hanesbrands, Inc. Bottom contributors during the period included: shipping and transportation company Kirby Corp., medical liability insurance company ProAssurance Corp., oil and gas exploration and production company WPX Energy, Inc., regional bank Cadence Bancorp (Cl A) and airline operator Alaska Air Group, Inc.

Fund Changes

During the period, we identified new investment opportunities and added positions to the portfolio including consumer apparel manufacturer Hanesbrands, Inc., rental and leasing services company PROG Holdings, Inc., medical device company LivaNova PLC, agriculture and transportation company Seaboard Corp., and electronics components manufacturer Sensata Technologies Holding PLC. Throughout the year, we closed positions in companies that reached our estimate of intrinsic value and to fund purchases of more attractive investment opportunities. Larger sales included: transportation products and services provider Trinity Industries, Inc., oil and gas exploration and production company WPX Energy, Inc., real estate investment trust iStar, Inc., rental and leasing services company Aaron’s Co., Inc., and infrastructure operations services provider Arcosa, Inc.

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Diamond Hill Small Cap Fund

AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2020

	Inception Date	One Year	Three Years	Five Years	Ten Years	Expense Ratio
PERFORMANCE AT NAV WITHOUT SALES CHARGES
Class A	12/29/2000	(0.55)%	0.81%	5.28%	6.66%	1.26%
Class C	2/20/2001	(1.33)	0.04	4.48	5.87	2.01
Class I	4/29/2005	(0.28)	1.10	5.58	6.96	0.97
Class Y	12/30/2011	(0.17)	1.21	5.70	7.05	0.85
BENCHMARK
Russell 2000 Index		19.96	10.25	13.26	11.20	—
PERFORMANCE AT PUBLIC OFFERING PRICE INCLUDING SALES CHARGES*
Class A	12/29/2000	(5.51)	(0.89)	4.20	6.12	1.26
Class C	2/20/2001	(2.32)	0.04	4.48	5.87	2.01
* The maximum sales charge for Class A shares on purchases and for Class C shares on certain redemptions are 5.00% and 1.00%, respectively.

GROWTH OF $10,000

Comparison of the change in value of a $10,000 Investment in the Diamond Hill Small Cap Fund Class I^(A) and the Russell 2000 Index.

^(A)	The growth of $10,000 chart represents the performance of Class I shares only, which will vary from the performance of Class A, Class C and Class Y shares based on the difference in loads and fees paid by shareholders in the different classes.

The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Historical performance for Class Y shares prior to its inception is based on the performance of Class A shares. Class Y performance has been adjusted to reflect differences in sales charges and expenses between classes.

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.diamond-hill.com.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 3

Diamond Hill Small-Mid Cap Fund

Investing Environment

Performance Discussion

Top contributors within the portfolio during the period included: industrial distributor WESCO International, Inc., mortgage servicing company Mr. Cooper Group, Inc., regional bank SVB Financial Group, electronics components manufacturer Sensata Technologies Holding PLC and rental and leasing services company Aaron’s Co., Inc. Bottom contributors during the period included: shipping and transportation company Kirby Corp., oil and gas exploration and production company WPX Energy, Inc., real estate investment trust American Campus Communities, Inc., utility company UGI Corp. and medical liability insurance company ProAssurance Corp.

Fund Changes

During the period, we identified new investment opportunities and added positions to the portfolio including medical device company LivaNova PLC, business process management company WNS Holdings Ltd., property and casualty insurance company Loews Corp., real estate investment trust Douglas Emmett, Inc. and rental and leasing services company PROG Holdings, Inc. Throughout the year, we closed positions in companies that reached our estimate of intrinsic value and to fund purchases of more attractive investment opportunities. Larger sales included: insurance broker Willis Towers Watson PLC, coating products manufacturer Axalta Coating Systems Ltd., aircraft rental and leasing services company Aircastle Ltd., oil and gas exploration and production company WPX Energy, Inc. and specialty chemicals producer RPM International, Inc.

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Diamond Hill Small-Mid Cap Fund

AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2020

	Inception Date	One Year	Three Years	Five Years	Ten Years	Expense Ratio
PERFORMANCE AT NAV WITHOUT SALES CHARGES
Class A	12/30/2005	1.03%	3.90%	7.44%	9.24%	1.20%
Class C	12/30/2005	0.29	3.14	6.65	8.43	1.95
Class I	12/30/2005	1.31	4.21	7.75	9.55	0.91
Class Y	12/30/2011	1.50	4.35	7.89	9.65	0.79
BENCHMARK
Russell 2500 Index		19.99	11.33	13.64	11.97	—
PERFORMANCE AT PUBLIC OFFERING PRICE INCLUDING SALES CHARGES*
Class A	12/30/2005	(4.03)	2.14	6.35	8.68	1.20
Class C	12/30/2005	(0.71)	3.14	6.65	8.43	1.95
* The maximum sales charge for Class A shares on purchases and for Class C shares on certain redemptions are 5.00% and 1.00%, respectively.

GROWTH OF $10,000

Comparison of the change in value of a $10,000 Investment in the Diamond Hill Small-Mid Cap Fund Class I^(A) and the Russell 2500 Index.

^(A)

The growth of $10,000 chart represents the performance of Class I shares only, which will vary from the performance of Class A, Class C and Class Y shares based on the difference in loads and fees paid by shareholders in the different classes.

The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 5

Diamond Hill Mid Cap Fund

Investing Environment

Performance Discussion

Top contributors within the portfolio during the period included: regional bank SVB Financial Group, mortgage servicing company Mr. Cooper Group, Inc., diversified industrial and aerospace manufacturer Parker-Hannifin Corp., property and casualty insurance company American International Group, Inc. and regional bank First Republic Bank. Bottom contributors during the period included: airline operator United Airlines Holdings, Inc., property and casualty insurance company Loews Corp., shipping and transportation company Kirby Corp., regional bank BankUnited, Inc. and oil and gas exploration and production company Noble Energy, Inc.

Fund Changes

During the period, we identified new investment opportunities and added positions to the portfolio including property and casualty insurance company American International Group, Inc., information technology services provider Cognizant Technology Solutions Corp. (Cl A), semiconductor products manufacturer NXP Semiconductors N.V., consumer apparel manufacturer VF Corp. and real estate investment trust Douglas Emmett, Inc. Throughout the year, we closed positions in companies that reached our estimate of intrinsic value and to fund purchases of more attractive investment opportunities. Larger sales included: coating products manufacturer Axalta Coating Systems Ltd., airline operator United Airlines Holdings, Inc., oil and gas exploration and production company Noble Energy, Inc., specialty chemicals producer RPM International, Inc. and oil and gas exploration and production company Devon Energy Corp.

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Diamond Hill Mid Cap Fund

AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2020

	Inception Date	One Year	Three Years	Five Years	Since Inception (12/31/13)	Expense Ratio
PERFORMANCE AT NAV WITHOUT SALES CHARGES
Class A	12/31/2013	(2.01)%	3.19%	7.44%	6.43%	1.06%
Class I	12/31/2013	(1.76)	3.49	7.74	6.74	0.77
Class Y	12/31/2013	(1.66)	3.61	7.86	6.85	0.65
BENCHMARK
Russell Midcap Index		17.10	11.61	13.40	10.96	—
PERFORMANCE AT PUBLIC OFFERING PRICE INCLUDING SALES CHARGES*
Class A	12/31/2013	(6.90)	1.43	6.35	5.64	1.06
* The maximum sales charge for Class A shares on purchases is 5.00%.

GROWTH OF $10,000

Comparison of the change in value of a $10,000 Investment in the Diamond Hill Mid Cap Fund Class I^(A) and the Russell Midcap Index.

^(A)	The growth of $10,000 chart represents the performance of Class I shares only, which will vary from the performance of Class A and Class Y shares based on the difference in loads and fees paid by shareholders in the different classes.

The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

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Diamond Hill Large Cap Fund

Investing Environment

Performance Discussion

Top contributors during the period included: health care products manufacturer Abbott Laboratories, HVAC products and services provider Carrier Global Corp., private equity firm KKR & Co., Inc., social media company Facebook, Inc. (Cl A) and software and information technology services provider Microsoft Corp. Bottom contributors during the period included: banking and financial services company Citigroup, Inc., banking and payment services company Discover Financial Services, aerospace and defense company Raytheon Technologies Corp., airline operator United Airlines Holdings, Inc. and tobacco product manufacturer Philip Morris International, Inc.

Fund Changes

During the period, we identified new investment opportunities and added positions to the portfolio including: consumer food and beverage products manufacturer Mondelez International, Inc. (Cl A), banking and financial services company Bank of America Corp., consumer apparel manufacturer VF Corp., information technology services provider Cognizant Technology Solutions Corp. (Cl A) and regional bank Truist Financial Corp. Throughout the year, we closed positions in companies that reached our estimate of intrinsic value and to fund purchases of more attractive investment opportunities. Larger sales included: banking and financial services company Citigroup, Inc., media and technology company Alphabet, Inc. (Cl A), aerospace and defense company Raytheon Technologies Corp., software and information technology services provider Microsoft Corp. and life sciences tools company Thermo Fisher Scientific, Inc.

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Diamond Hill Large Cap Fund

AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2020

	Inception Date	One Year	Three Years	Five Years	Ten Years	Expense Ratio
PERFORMANCE AT NAV WITHOUT SALES CHARGES
Class A	6/29/2001	8.65%	8.87%	12.08%	11.71%	0.96%
Class C	9/25/2001	7.84	8.06	11.24	10.88	1.71
Class I	1/31/2005	8.97	9.18	12.41	12.02	0.67
Class Y	12/30/2011	9.07	9.30	12.53	12.12	0.55
BENCHMARK
Russell 1000 Index		20.96	14.82	15.60	14.01	—
PERFORMANCE AT PUBLIC OFFERING PRICE INCLUDING SALES CHARGES*
Class A	6/29/2001	3.22	7.03	10.94	11.14	0.96
Class C	9/25/2001	6.84	8.06	11.24	10.88	1.71
* The maximum sales charge for Class A shares on purchases and for Class C shares on certain redemptions are 5.00% and 1.00%, respectively.

GROWTH OF $10,000

Comparison of the change in value of a $10,000 Investment in the Diamond Hill Large Cap Fund Class I^(A) and the Russell 1000 Index.

^(A)	The growth of $10,000 chart represents the performance of Class I shares only, which will vary from the performance of Class A, Class C and Class Y shares based on the difference in loads and fees paid by shareholders in the different classes.

The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

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Diamond Hill All Cap Select Fund

Investing Environment

Performance Discussion

Top contributors within the portfolio during the period included: mortgage servicing company Mr. Cooper Group, Inc., industrial distributor WESCO International, Inc., private equity firm KKR & Co., Inc., consumer apparel manufacturer Hanesbrands, Inc. and payment processing and services provider Visa, Inc. (Cl A). Bottom contributors during the period included: airline operators United Airlines Holdings, Inc. and Copa Holdings, S.A. (Cl A), life insurance company MetLife, Inc., casino operator Red Rock Resorts, Inc. (Cl A) and banking and financial services company Citigroup, Inc.

Fund Changes

During the period, we identified investment opportunities and added positions to the portfolio including industrial distributor WESCO International, Inc., agriculture and transportation company Seaboard Corp., specialty chemicals producer W.R. Grace & Co., custom printing services provider Cimpress PLC and consumer food and beverage products manufacturer Mondelez International, Inc. (Cl A). Throughout the year, we closed positions that reached our estimate of intrinsic value and to fund purchases of more attractive investment opportunities. Larger sales included: life insurance company MetLife, Inc., media and technology company Alphabet, Inc. (Cl A), tobacco products manufacturer Philip Morris International, Inc., ski resort owner and operator Vail Resorts, Inc. and freight transportation management company Hub Group, Inc. (Cl A).

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Diamond Hill All Cap Select Fund

AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2020

	Inception Date	One Year	Three Years	Five Years	Ten Years	Expense Ratio
PERFORMANCE AT NAV WITHOUT SALES CHARGES
Class A	12/30/2005	14.30%	9.34%	11.38%	11.38%	1.16%
Class C	12/30/2005	13.42	8.51	10.55	10.55	1.91
Class I	12/30/2005	14.57	9.64	11.70	11.68	0.87
Class Y	12/30/2011	14.70	9.77	11.82	11.78	0.75
BENCHMARK
Russell 3000 Index		20.89	14.49	15.43	13.79	—
PERFORMANCE AT PUBLIC OFFERING PRICE INCLUDING SALES CHARGES*
Class A	12/30/2005	8.59	7.49	10.25	10.81	1.16
Class C	12/30/2005	12.42	8.51	10.55	10.55	1.91
* The maximum sales charge for Class A shares on purchases and for Class C shares on certain redemptions are 5.00% and 1.00%, respectively.

GROWTH OF $10,000

Comparison of the change in value of a $10,000 Investment in the Diamond Hill All Cap Select Fund Class I^(A) and the Russell 3000 Index.

^(A)	The growth of $10,000 chart represents the performance of Class I shares only, which will vary from the performance of Class A, Class C and Class Y shares based on the difference in loads and fees paid by shareholders in the different classes.

The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

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Diamond Hill Long-Short Fund

Investing Environment

Performance Discussion

Top contributors within the portfolio during the period included: private equity firm KKR & Co., Inc. (long), software and information technology services provider Microsoft Corp. (long), social media company Facebook, Inc. (Cl A) (long), media and technology company Alphabet, Inc. (Cl A) (long) and regional bank SVB Financial Group (long). Bottom contributors during the period included: airline operator United Airlines Holdings, Inc. (long), electric car manufacturer Tesla, Inc. (short), alcoholic beverage manufacturer Boston Beer Company, Inc. (Cl A) (short), banking and financial services company Citigroup, Inc. (long) and shipping and transportation company Kirby Corp. (long).

Fund Changes

During the period, we identified new investment opportunities and added positions to the portfolio including banking and financial services company Bank of America Corp. (long), regional bank Truist Financial Corp. (long), consumer food and beverage products manufacturer Mondelez International, Inc. (Cl A) (long), consumer apparel manufacturer VF Corp. (long) and payment processing and services provider Visa, Inc. (Cl A) (long). Throughout the year, we eliminated positions in companies that reached our estimate of intrinsic value and to fund purchases of more attractive investment opportunities. Larger sales included: airline operator United Airlines Holdings, Inc. (long), specialty pharmaceutical company Allergan PLC (long), property and casualty insurance company Cincinnati Financial Corp. (short), utility company Consolidated Edison, Inc. (short) and aerospace and defense company Raytheon Technologies Corp. (long).

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Diamond Hill Long-Short Fund

AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2020

	Inception Date	One Year	Three Years	Five Years	Ten Years	Expense Ratio
PERFORMANCE AT NAV WITHOUT SALES CHARGES
Class A	6/30/2000	(0.55)%	4.21%	5.68%	6.68%	1.81%
Class C	2/13/2001	(1.32)	3.42	4.88	5.88	2.56
Class I	1/31/2005	(0.27)	4.51	5.99	6.98	1.52
Class Y	12/30/2011	(0.19)	4.62	6.10	7.07	1.40
BENCHMARK
Russell 1000 Index		20.96	14.82	15.60	14.01	—
60% Russell 1000 Index/40% ICE BofA U.S. T-Bill 0-3 Month Index		13.30	9.81	9.92	8.70	—
PERFORMANCE AT PUBLIC OFFERING PRICE INCLUDING SALES CHARGES*
Class A	6/30/2000	(5.51)	2.43	4.60	6.13	1.81
Class C	2/13/2001	(2.29)	3.42	4.88	5.88	2.56
* The maximum sales charge for Class A shares on purchases and for Class C shares on certain redemptions are 5.00% and 1.00%, respectively.

GROWTH OF $10,000

Comparison of the change in value of a $10,000 Investment in the Diamond Hill Long-Short Fund Class I^(A), the Russell 1000 Index and the Blended Index (60% Russell 1000 Index and 40% ICE BofA U.S. T-Bill 0-3 Month Index)

^(A)	The growth of $10,000 chart represents the performance of Class I shares only, which will vary from the performance of Class A, Class C and Class Y shares based on the difference in loads and fees paid by shareholders in the different classes.

The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

The chart above represents a comparison of a hypothetical $10,000 investment and the reinvestment of dividends and capital gains in the indicated share class versus a similar investment in the Russell 1000 Index and the blended index. The Russell 1000 Index is an unmanaged market capitalization weighted index measuring the performance of the largest 1,000 companies by market capitalization in the Russell 3000 Index. The Russell 3000 Index is an unmanaged market capitalization weighted index measuring the performance of the 3,000 largest U.S. companies based on total market capitalization. The Blended Index represents a 60% weighting of the Russell 1000 Index as described above and a 40% weighting of the ICE BofA U.S. T-Bill 0-3 Month Index. The ICE BofA U.S. T-Bill 0-3 Month Index is an unmanaged index measuring the performance of U.S. dollar denominated U.S. Treasury Bills with a term to maturity of less than 3 months. The index data referenced herein is the property of ICE Data Indices, LLC, its affiliates (“ICE Data”) and/or its third party suppliers and has been licensed for use by Diamond Hill Capital Management, Inc. ICE Data and its third party suppliers accept no liability in connection with its use. See diamond-hill.com for a full copy of the disclaimer. These indices do not incur fees and expenses (which would lower returns) and are not available for direct investment. ICE Data was not involved in the creation of the blended index. Both indices do not reflect the deduction of fees associated with a mutual fund such as investment management and accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index although they can invest in the underlying securities.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 13

Diamond Hill Global Fund

Investing Environment

Performance Discussion

Top contributors within the portfolio during the period included: U.S.-based consumer apparel company Hanesbrands, Inc., U.S.-based media and entertainment company Walt Disney Co., Korean consumer electronics manufacturer Samsung Electronics Co. Ltd., French aerospace and defense company Safran S.A., and U.S.-based online travel services provider Booking Holdings, Inc. Bottom contributors within the portfolio during the period included: U.S.-based airline operators Copa Holdings S.A. (Cl A) and United Airlines Holdings, Inc., U.S.-based shipping and transportation company Kirby Corp., U.S.-based casino operator Red Rock Resorts, Inc. (Cl A) and U.S.-based insurance company American International Group, Inc. Portfolio turnover was unusually high in 2020 for two primary reasons. First, COVID created significant business risk and elevated equity volatility throughout 2020. These factors influenced our trading activity during the first three quarters of 2020. Second, Rick Snowdon stepped away as portfolio manager of the Global strategy in October 2020. We subsequently made substantial changes to the strategy’s holdings. We expect portfolio turnover will be significantly lower in 2021.

Fund Changes

During the period, we identified new investment opportunities and added positions to the portfolio including: U.S.-based integrated oil and gas company Chevron Corp., Canadian wireless telecommunications services provider Rogers Communications, Inc. (Cl B), U.K.-based alcoholic beverage manufacturer Diageo PLC, U.K.-based consumer goods company Unilever NV and Japanese telecommunications services provider KDDI Corp. Throughout the year, we closed positions in companies that reached our estimate of intrinsic value and to fund purchases of more attractive investment opportunities. Larger sales included: casino operator Red Rock Resorts, Inc. (Cl A), airline operator Copa Holdings S.A. (Cl A), reinsurance company Scor SE, private banking products and services provider Julius Baer Group AG and life insurance company MetLife, Inc.

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Diamond Hill Global Fund

AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2020

	Inception Date	One Year	Three Years	Five Years*	Since Inception*	Expense Ratio
PERFORMANCE AT NAV WITHOUT SALES CHARGES
Class A	12/29/2017	1.35%	3.88%	9.77%	6.35%	1.13%
Class I	12/29/2017	1.66	4.19	10.11	6.68	0.84
Class Y	12/29/2017	1.77	4.32	10.23	6.79	0.72
BENCHMARK
Morningstar Global Markets Index		16.07	9.73	12.11	8.80	—
PERFORMANCE AT PUBLIC OFFERING PRICE INCLUDING SALES CHARGES**
Class A	12/29/2017	(3.70)	2.11	8.65	5.57	1.13
The maximum sales charge for Class A shares on purchases is 5.00%.**

GROWTH OF $10,000

Comparison of the change in value of a $10,000 Investment in the Diamond Hill Global Fund Class I^(A) and the Morningstar Global Markets Index.

^(A)	The growth of $10,000 chart represents the performance of Class I shares only, which will vary from the performance of Class A and Class Y shares based on the difference in loads and fees paid by shareholders in the different classes.

The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

The chart above represents the comparison of a hypothetical $10,000 investment and the reinvestment of dividends and capital gains in the indicated share class versus a similar investment in the Morningstar Global Markets Index (“Index”). The Index is an unmanaged, float market capitalization weighted index measuring the performance of more than 7,000 securities and is designed to cover 97% of the equity market capitalization of developed and emerging markets. The index (net) returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties. Withholding rates applicable to the fund may be lower. The Index does not reflect the deduction of fees associated with a mutual fund such as investment management and accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index although they can invest in the underlying securities.

The quoted performance of the Fund reflects the past performance of Diamond Hill Global Fund L.P. (the “Global Partnership”), a private fund managed with full investment authority by the Fund’s Adviser. The Fund is managed in all material respects in a manner equivalent to the management of the predecessor unregistered fund. The performance of the Global Partnership has been restated to reflect the net expenses and maximum applicable sales charge of the Fund for its initial years of investment operation. The Global Partnership was not registered under the Investment Company Act of 1940 and therefore was not subject to certain investment restrictions imposed by the 1940 Act. If the Global Partnership had been registered under the 1940 Act, its performance may have been adversely affected. Performance is measured from December 31, 2013, the inception of the Global Partnership and is not the performance of the Fund. The assets of the Global Partnership were converted, based on their value on December 29, 2017, into assets of the Fund. The Global Partnership’s past performance is not necessarily an indication of how the Fund will perform in the future either before or after taxes.

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, maybe worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.diamond-hill.com.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 15

Diamond Hill International Fund

Investing Environment

Performance Discussion

Top contributors within the portfolio during the period included: Korean consumer electronics manufacturer Samsung Electronics Co., Ltd., Hong Kong-based internet and advertising services provider Tencent Holdings, Taiwan-based semiconductor manufacturer Taiwan Semiconductor Manufacturing Co., U.S.-based media and technology company Alphabet, Inc. (Cl A) and U.S.-based social media company Facebook, Inc. (Cl A). Bottom contributors within the portfolio during the period included: U.S.-based airline operator Copa Holdings, U.S.-based global motorsport racing league Formula One Group, Canadian property and casualty insurance company Fairfax Financial Holdings Ltd., French transportation and communications logistics company Bolloré S.A. and U.K.-based telecommunications services provider BT Group PLC.

Fund Changes

During the period, we identified new investment opportunities and added positions to the portfolio including: U.S.-based media and technology company Alphabet, Inc. (Cl A), U.K.-based hospitality company InterContinental Hotels Group, Netherlands-based global consumer internet group Prosus NV, Canadian telecommunications services provider Rogers Communications, Inc. (Cl B) and Mexican beverage and retail company Fomento Economico Mexicano SAB de CV. Throughout the year, we closed positions in companies that reached our estimate of intrinsic value and to fund purchases of more attractive investment opportunities. Larger sales included: asset manager Fairfax India Holdings Corp., Japanese telecommunications services provider KDDI Corp., reinsurance company Scor SE, French transportation and communications logistics company Bolloré S.A. and Swiss financial services company Credit Suisse Group AG.

16 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill International Fund

AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2020

	Inception Date	One Year	Three Years*	Ten Years*	Expense Ratio
PERFORMANCE AT NAV WITHOUT SALES CHARGES
Class A	6/28/2019	6.48%	5.31%	11.08%	1.14%
Class I	6/28/2019	6.74	5.60	11.39	0.85
Class Y	6/28/2019	6.81	5.70	11.51	0.73
BENCHMARK
Morningstar Global Markets ex U.S. Index		11.17	5.07	10.25	—
PERFORMANCE AT PUBLIC OFFERING PRICE INCLUDING SALES CHARGES**
Class A	6/28/2019	1.17	3.53	9.66	1.14
The maximum sales charge for Class A shares on purchases is 5.00%.**

GROWTH OF $10,000

Comparison of the change in value of a $10,000 Investment in the Diamond Hill International Fund Class I^(A) and the Morningstar Global Markets ex U.S. Index.

^(A)	The growth of $10,000 chart represents the performance of Class I shares only, which will vary from the performance of Class A and Class Y shares based on the difference in loads and fees paid by shareholders in the different classes.

The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

The chart above represents the comparison of a hypothetical $10,000 investment and the reinvestment of dividends and capital gains in the indicated share class versus a similar investment in the Morningstar Global Markets ex U.S. Index (“Index”). The Index is an unmanaged, float market capitalization weighted index measuring the performance of more than 6,000 securities and is designed to cover 97% of the equity market capitalization of developed and emerging markets excluding the United States. The index (net) returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties. Withholding rates applicable to the fund may be lower. The Index does not reflect the deduction of fees associated with a mutual fund such as investment management and accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index although they can invest in the underlying securities.

The quoted performance of the Fund reflects the past performance of Diamond Hill International Fund L.P. (the “International Partnership”), a private fund managed with full investment authority by the Fund’s Adviser. The Fund is managed in all material respects in a manner equivalent to the management of the predecessor unregistered 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 operation. The International Partnership was not registered under the Investment Company Act of 1940 and therefore was not subject to certain investment restrictions imposed by the 1940 Act. If the International Partnership had been registered under the 1940 Act, its performance may have been adversely affected. Performance is measured from December 30, 2016, the inception of the International Partnership and is not the performance of the Fund. The assets of the International Partnership were converted, based on their value on June 28, 2019, into assets of the Fund. The International Partnership’s past performance is not necessarily an indication of how the Fund will perform in the future either before or after taxes.

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, maybe worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.diamond-hill.com.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 17

Diamond Hill Short Duration Securitized Bond Fund

Investing Environment

Throughout the year, Federal Reserve and U.S. Treasury intervention played a key role in fixed income markets. In Q1 2020, the Federal Reserve cut rates in response to signs of a slowing economy exacerbated by an oil production glut as OPEC and Russia failed to come to terms on production cuts. Starting mid-March, as it became clear the coronavirus pandemic would result in widescale business shutdowns, central banks globally moved quickly and decidedly to provide liquidity and support while governments directed stimulus support to citizens and businesses facing economic uncertainty. Corporate bond purchasing programs initiated by the U.S. government were barely utilized but served as the impetus for a historic pace of debt issuance in both investment grade and high yield corporate credit markets.

Performance Discussion

During a volatile year, the Short Duration Securitized Bond Fund trailed the Bloomberg Barclays U.S. 1-3 Yr. Gov./Credit Index. Relative performance in 2020 was the result of two materially different market environments. From the start of the year through mid-April, the Fund’s relative performance trailed amid the rapid deterioration of the securitized sector, particularly asset-backed securities (ABS) where the Fund had a sizable overweight, due largely to technical dislocations rather than weakening fundamentals. From mid-April through year-end, the Fund solidly outpaced the index and delivered strong absolute returns—though not enough to offset earlier relative weakness—as the securitized sector rallied on the strength of the underlying loans in the securities and general market stabilization. Relative strength during that period was dampened by the Fund’s underweight position to credit sectors as they surged from mid-April through year-end.

Fund Changes

The most significant change in Fund positioning was a decrease in allocation to ABS and an increase in allocation to commercial mortgage-backed securities (CMBS). This change was not the result of a lack of opportunities in the ABS market. Rather, the growth of the Fund and the more compelling opportunities among CMBS led to the positioning shift. The Fund’s position in short-term Treasury debt shifted to the money market sweep vehicle. As rates on the shorter end of the curve remained anchored with the Federal Reserve’s move to cut rates to zero in March, the attractiveness of the Treasury market diminished, making a comparably yielding sweep vehicle a more compelling option to maintain liquidity.

18 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Short Duration Securitized Bond Fund

AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2020

	Inception Date	One Year	Three Years	Since Inception	Expense Ratio
PERFORMANCE AT NAV WITHOUT SALES CHARGES
Class A	7/5/2016	2.87%	3.39%	3.42%	0.82%
Class I	7/5/2016	3.08	3.70	3.72	0.53
Class Y	7/5/2016	3.29	3.84	3.84	0.41
BENCHMARK
Bloomberg Barclays U.S. 1-3 Yr. Government/Credit Index		3.33	2.98	2.07	—
PERFORMANCE AT PUBLIC OFFERING PRICE INCLUDING SALES CHARGES*
Class A	7/5/2016	0.58	2.62	2.90	0.82
* The maximum sales charge for Class A shares on purchases is 2.25%.

GROWTH OF $10,000

Comparison of the change in value of a $10,000 Investment in the Diamond Hill Short Duration Securitized Bond Fund Class I^(A) and Bloomberg Barclays U.S. 1-3 Yr. Government/Credit Index.

^(A)	The growth of $10,000 chart represents the performance of Class I shares only, which will vary from the performance of Class A and Class Y shares based on the difference in loads and fees paid by shareholders in the different classes.

The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

The chart above represents a comparison of a hypothetical $10,000 investment and the reinvestment of dividends and capital gains in the indicated share class versus a similar investment in the Bloomberg Barclays U.S. 1-3 Yr. Government/Credit Index (“Index”). The Index is an unmanaged index measuring the performance of investment grade government and corporate bonds with maturities of one to three years. The Index does not reflect the deduction of fees associated with a mutual fund such as investment management and accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index although they can invest in the underlying securities.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 19

Diamond Hill Core Bond Fund

Investing Environment

Performance Discussion

During a volatile year, the Core Bond Fund outperformed the Bloomberg Barclays U.S. Aggregate Bond Index. The overweight position to securitized assets was the main driver of relative performance during the calendar year, with the strongest contribution coming from the asset-backed securities (ABS) sector. Within that sector, auto and consumer ABS were the best performers, rebounding strongly through the year from low points in March and April. Security selection within the mortgage-backed securities (MBS) sector was a key contributor as agency collateralized mortgage obligations (CMO) outpaced plain vanilla pass-through MBS. Credit rebounded from the early pains of the year to deliver one of the best returns over the past decade, despite record levels of issuance flooding the market. The Fund’s underweight to the credit sectors detracted from performance despite strong security selection. The Treasury market rallied throughout the year, and the Fund’s underweight detracted from performance.

Fund Changes

Sector changes to the Core Bond Fund are based on an investment philosophy focusing on a bottom-up security selection process. The duration positioning (sensitivity to interest rate fluctuations) relative to the benchmark remained in a range of 93% - 98% due to the uncertain trajectory of rates during a volatile year. The allocation to ABS remained fairly steady, though changes were made within the sector as opportunities presented themselves during periods of market dislocation. As corporate spreads rallied from the end of March through the end of the year, opportunities in other sectors resulted in a slight decrease in the allocation to the corporate credit sector. The most significant change in portfolio positioning was in the MBS space, both residential and commercial, as spread levels in these market areas of the provided opportunities for the Fund.

20 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Core Bond Fund

AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2020

	Inception Date	One Year	Three Years	Since Inception	Expense Ratio
PERFORMANCE AT NAV WITHOUT SALES CHARGES
Class A	7/5/2016	7.60%	5.46%	3.96%	0.76%
Class I	7/5/2016	7.94	5.77	4.27	0.47
Class Y	7/5/2016	8.04	5.92	4.38	0.35
BENCHMARK
Bloomberg Barclays U.S. Aggregate Index		7.51	5.34	3.59	—
PERFORMANCE AT PUBLIC OFFERING PRICE INCLUDING SALES CHARGES*
Class A	7/5/2016	3.83	4.21	3.14	0.76
* The maximum sales charge for Class A shares on purchases is 3.50%.

GROWTH OF $10,000

Comparison of the change in value of a $10,000 Investment in the Diamond Hill Core Bond Fund Class I^(A) and Bloomberg Barclays U.S. Aggregate Index.

^(A)	The growth of $10,000 chart represents the performance of Class I shares only, which will vary from the performance of Class A and Class Y shares based on the difference in loads and fees paid by shareholders in the different classes.

The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

The chart above represents a comparison of a hypothetical $10,000 investment and the reinvestment of dividends and capital gains in the indicated share class versus a similar investment in the Bloomberg Barclays U.S. Aggregate Index (“Index”). The Index is an unmanaged index measuring performance of the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage passthrough, and asset-backed securities. The Index does not reflect the deduction of fees associated with a mutual fund such as investment management and accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index although they can invest in the underlying securities.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 21

Diamond Hill Corporate Credit Fund

Investing Environment

Performance Discussion

The retail sector contributed most to total and relative return in 2020. Within retail, areas such as department stores and discount stores generated significant relative return, with department stores generating strong total returns despite index peers in aggregate being negative on the year. The difference in credit quality distribution between the Fund and the index also contributed to solid relative performance in 2020. The index is dominated by investment grade positions with a small allocation to high yield, while the Fund has much greater exposure to opportunities in the high yield market. That said, the strong rally in the investment grade corporate market did weigh on relative performance.

Fund Changes

The most significant change to Fund positioning occurred amid the market dislocation during March and April as both investment grade and high yield corporate spreads widened and unique opportunities presented themselves. A shift into long-dated, investment grade corporate securities began in late March and early April, soon after the Federal Reserve and Treasury announced plans to purchase not only corporate ETFs but cash bonds as well, with the intention of providing support for corporate bonds. By the end of the second quarter, the allocation to investment grade shifted back almost to where it began the year. This opportunistic and temporary shift was beneficial to relative performance while improving overall credit quality.

22 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Corporate Credit Fund

AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2020

	Inception Date	One Year	Three Years	Five Years	Ten Years	Expense Ratio
PERFORMANCE AT NAV WITHOUT SALES CHARGES
Class A	9/30/2002	9.49%	7.39%	8.32%	6.44%	0.91%
Class C	9/30/2002	8.65	6.60	7.51	5.65	1.66
Class I	1/31/2005	9.74	7.73	8.64	6.74	0.62
Class Y	12/30/2011	9.88	7.86	8.75	6.82	0.50
BENCHMARK
ICE BofA U.S. Corporate & High Yield Index		9.34	6.91	7.07	5.83	—
PERFORMANCE AT PUBLIC OFFERING PRICE INCLUDING SALES CHARGES*
Class A	9/30/2002	5.62	6.13	7.56	6.07	0.91
Class C	9/30/2002	7.65	6.60	7.51	5.65	1.66
* The maximum sales charge for Class A shares on purchases and for Class C shares on certain redemptions are 3.50% and 1.00%, respectively.

GROWTH OF $10,000

Comparison of the change in value of a $10,000 Investment in the Diamond Hill Corporate Credit Fund Class I^(A), ICE BofA U.S. Corporate & High Yield Index, and Consumer Price Index - All Urban Consumers from the Bureau of Labor Statistics plus 3% annual risk premium.

^(A)	The growth of $10,000 chart represents the performance of Class I shares only, which will vary from the performance of Class A, Class C and Class Y shares based on the difference in loads and fees paid by shareholders in the different classes.

The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

The chart above represents a comparison of a hypothetical $10,000 investment and the reinvestment of dividends and capital gains in the indicated share class versus a similar investment in the ICE BofA U.S. Corporate & High Yield Index and the Consumer Price Index — All Urban Consumers from the Bureau of Labor Statistics (CPI) plus 3% annual risk premium. The ICE BofA U.S. Corporate and High Yield Index is an unmanaged index measuring the performance of U.S. dollar denominated investment grade and below investment grade corporate debt publicly issued in the U.S. domestic market. The index data referenced herein is the property of ICE Data Indices, LLC, its affiliates (“ICE Data”) and/or its third party suppliers and has been licensed for use by Diamond Hill Capital Management, Inc. ICE Data and its third party suppliers accept no liability in connection with its use. See diamond-hill.com for a full copy of the disclaimer. The CPI is increased by a 3 percent annual risk premium to correspond with the Fund’s long-term goals of achieving returns above the rate of inflation. The CPI is an economic metric that measures prices for a basket of goods and services sold to urban consumers. The index is considered a more accurate record of prices due to higher population density within the sales area. Both indices do not reflect the deduction of fees associated with a mutual fund such as investment management and accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index although they can invest in the underlying securities.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 23

Diamond Hill High Yield Fund

Investing Environment

Performance Discussion

Nearly every sector contributed to relative returns during 2020, with the energy sector contributing most to both strong total and relative returns. The index’s energy sector was negative for the year, while the Fund’s energy allocation returned double digits. Also additive to Fund performance was security selection in sectors that benefited from economic shut-down orders, including retail and regional banks, which are positioned to benefit from historically low rates. A handful of individual securities were a headwind to relative performance due to company-specific issues, but not enough to offset strong relative performance elsewhere.

Fund Changes

The most significant change to Fund positioning occurred amid the market dislocation during March and April as investment grade and high yield corporate spreads widened and unique opportunities presented themselves. A partial shift into long-dated, investment grade corporate securities began in late March and early April, soon after the Federal Reserve and Treasury announced plans to purchase not only corporate ETFs but cash bonds as well, with the intention of providing support for corporate bonds. By the end of the second quarter, the allocation to investment grade was back almost to where it began the year. This opportunistic and temporary shift was beneficial to relative performance while improving overall credit quality.

24 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill High Yield Fund

AVERAGE ANNUAL TOTAL RETURNS AS OF DECEMBER 31, 2020

	Inception Date	One Year	Three Year	Five Year	Since Inception*	Expense Ratio
PERFORMANCE AT NAV WITHOUT SALES CHARGES
Class A	12/31/2015	13.40%	9.62%	10.61%	8.71%	0.96%
Class I	12/31/2015	13.62	9.89	10.91	9.01	0.67
Class Y	12/31/2015	13.92	10.06	11.06	9.16	0.55
BENCHMARK
ICE BofA U.S. High Yield Index		6.17	5.89	8.43	5.95	—
PERFORMANCE AT PUBLIC OFFERING PRICE INCLUDING SALES CHARGES**
Class A	12/31/2015	9.42	8.33	9.81	8.08	0.96
The maximum sales charge for Class A shares on purchases is 3.50%.**

GROWTH OF $10,000

Comparison of the change in value of a $10,000 Investment in the Diamond Hill High Yield Fund Class I^(A) and ICE BofA U.S. High Yield Index.

^(A)	The growth of $10,000 chart represents the performance of Class I shares only, which will vary from the performance of Class A and Class Y shares based on the difference in loads and fees paid by shareholders in the different classes.

The performance of the above Fund does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

The chart above represents a comparison of a hypothetical $10,000 investment and the reinvestment of dividends and capital gains in the indicated share class versus a similar investment in the ICE BofA U.S. High Yield Index. (“Index”). The Index is an unmanaged index measuring the performance of U.S. dollar denominated below investment grade corporate debt publicly issued in the U.S. domestic market. The index data referenced herein is the property of ICE Data Indices, LLC, its affiliates (“ICE Data”) and/or its third party suppliers and has been licensed for use by Diamond Hill Capital Management, Inc. ICE Data and its third party suppliers accept no liability in connection with its use. See diamond-hill.com for a full copy of the disclaimer. The Index does not reflect the deduction of fees associated with a mutual fund such as investment management and accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index although they can invest in the underlying securities.

The quoted performance for the Fund reflects the past performance of Diamond Hill High Yield Fund L.P. (the “High Yield Partnership”), a private fund managed with full investment authority by the Fund’s Adviser. The Fund is managed in all material respects in a manner equivalent to the management of the predecessor unregistered fund. The performance of the High Yield 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 High Yield Partnership was not registered under the Investment Company Act of 1940 and therefore was not subject to certain investment restrictions imposed by the 1940 Act. If the High Yield Partnership had been registered under the 1940 Act, its performance may have been adversely affected. Performance is measured from December 4, 2014, the inception of the High Yield Partnership and is not the performance of the Fund. The assets of the High Yield Partnership were converted based on their value on December 31, 2015, into assets of the Fund prior to commencement of operations of the Fund. The High Yield Partnership’s past performance is not necessarily an indication of how the Fund will perform in the future either before or after taxes

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 25

Diamond Hill Small Cap Fund
Schedule of Investments
December 31, 2020

	Shares		Fair Value
Common Stocks — 98.8%
Communication Services — 4.2%
Live Nation Entertainment, Inc. ^(a)(b)		303,515	$	22,302,282

Consumer Discretionary — 16.8%
Carter’s, Inc.		60,349		5,677,030
Green Brick Partners, Inc. ^(b)		491,941		11,294,965
Hanesbrands, Inc.		668,137		9,741,437
PROG Holdings, Inc.		136,211		7,337,687
Red Rock Resorts, Inc., Class A		837,610		20,973,754
Vail Resorts, Inc.		108,786		30,346,943
Wolverine World Wide, Inc.		125,654		3,926,688
				89,298,504
Consumer Staples — 8.8%
Cal-Maine Foods, Inc. ^(b)		468,676		17,594,097
Flowers Foods, Inc.		259,159		5,864,768
Lancaster Colony Corp.		11,411		2,096,543
Post Holdings, Inc. ^(b)		142,124		14,355,945
Seaboard Corp.		2,180		6,607,580
				46,518,933
Energy — 1.3%
Bonanza Creek Energy, Inc. ^(b)		118,554		2,291,649
Cimarex Energy Co.		127,531		4,783,688
				7,075,337
Financials — 27.4%
Altabancorp		88,713		2,476,867
Bank OZK		681,787		21,319,479
BankUnited, Inc.		125,000		4,347,500
BOK Financial Corp.		170,157		11,652,351
Brown & Brown, Inc.		119,141		5,648,475
Cadence BanCorp		600,000		9,852,000
Enstar Group Ltd. ^(b)		81,776		16,755,085
First of Long Island Corp. (The)		194,480		3,471,468
Live Oak Bancshares, Inc. ^(a)		178,436		8,468,573
Mr. Cooper Group, Inc. ^(b)		393,324		12,204,844
ProAssurance Corp.		557,652		9,920,629
Reinsurance Group of America, Inc.		53,514		6,202,273
RenaissanceRe Holdings Ltd.		37,707		6,252,575

	Shares		Fair Value
Financials — 27.4% continued
Sterling Bancorp		1,485,441	$	26,708,229
Triumph Bancorp, Inc. ^(b)		6,202		301,107
				145,581,455
Health Care — 3.7%
Integer Holdings Corp. ^(b)		48,983		3,976,930
LivaNova plc ^(b)		107,858		7,141,278
Natus Medical, Inc. ^(b)		424,428		8,505,537
				19,623,745
Industrials — 19.5%
Alaska Air Group, Inc.		111,375		5,791,500
Allegiant Travel Co.		64,720		12,247,613
Colfax Corp. ^(b)		406,206		15,533,317
Douglas Dynamics, Inc.		50,477		2,158,901
Hub Group, Inc., Class A ^(b)		171,756		9,790,092
Hyster-Yale Materials Handling, Inc.		84,858		5,053,294
Kirby Corp. ^(b)		193,912		10,050,459
Sensata Technologies Holding plc ^(b)		59,399		3,132,703
SPX FLOW, Inc. ^(b)		183,675		10,645,803
Stericycle, Inc. ^(b)		119,555		8,288,748
Toro Co. (The)		35,919		3,406,558
TriMas Corp. ^(b)		161,820		5,124,839
WESCO International, Inc. ^(b)		161,228		12,656,398
				103,880,225
Information Technology — 6.3%
Broadridge Financial Solutions, Inc.		74,563		11,423,052
Sanmina Corp. ^(b)		131,435		4,191,462
WNS Holdings Ltd. - ADR ^(b)		248,237		17,885,476
				33,499,990
Materials — 3.5%
Ashland Global Holdings, Inc.		136,214		10,788,149
W.R. Grace & Co.		140,000		7,674,800
				18,462,949
Real Estate — 4.7%
American Campus Communities, Inc. REIT		59,908		2,562,265
CubeSmart REIT		490,707		16,492,662
JBG SMITH Properties		29,762		930,658

26 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Small Cap Fund
Schedule of Investments (Continued)
December 31, 2020

	Shares		Fair Value
Common Stocks — 98.8% continued
Real Estate — 4.7% continued
Jones Lang LaSalle, Inc. ^(b)		14,811	$	2,197,508
Rayonier, Inc.		91,954		2,701,609
				24,884,702
Utilities — 2.6%
South Jersey Industries, Inc.		358,022		7,715,374
UGI Corp.		179,357		6,270,321
				13,985,695

Total Common Stocks
(Cost $308,929,540)			$	525,113,817

Registered Investment Companies — 2.0%
State Street Institutional US Government Money Market Fund, Premier Class, 0.03% ^(c)		10,351,037		10,351,037

Total Registered Investment Companies
(Cost $10,351,037)			$	10,351,037

Total Investment Securities — 100.8%
(Cost $319,280,577)			$	535,464,854

Liabilities in Excess of Other Assets — (0.8)%				(4,091,107	)

Net Assets — 100.0%			$	531,373,747

^(a)	All or a portion of the security is on loan. The total fair value of the securities on loan as of December 31, 2020 was $18,781,723.

^(b)	Non-income producing security.

^(c)	The rate shown is the 7-day effective yield as of December 31, 2020.

ADR — American Depositary Receipt

plc — Public Limited Company

REIT — Real Estate Investment Trust

See accompanying Notes to Financial Statements.

Diamond Hill Small-Mid Cap Fund
Schedule of Investments
December 31, 2020

	Shares		Fair Value
Common Stocks — 94.8%
Communication Services — 1.2%
Liberty Media Corp. - Liberty Formula One - Series C ^(a)		546,551	$	23,283,073

Consumer Discretionary — 16.1%
Advance Auto Parts, Inc.		116,974		18,424,575
BorgWarner, Inc. ^(b)		1,147,123		44,324,833
Carter’s, Inc. ^(b)		182,420		17,160,249
Hanesbrands, Inc. ^(b)		2,528,111		36,859,858
NVR, Inc. ^(a)		11,505		46,938,789
Polaris Industries, Inc.		135,113		12,873,567
PROG Holdings, Inc.		388,174		20,910,933
Red Rock Resorts, Inc., Class A ^(b)		2,281,639		57,132,241
Vail Resorts, Inc.		141,016		39,337,823
Wolverine World Wide, Inc. ^(b)		638,874		19,964,813
				313,927,681
Consumer Staples — 8.4%
Cal-Maine Foods, Inc. ^(a)(b)		1,187,410		44,575,371
Flowers Foods, Inc. ^(b)		1,168,992		26,454,289
Molson Coors Beverage Co., Class B ^(b)		313,303		14,158,163
Post Holdings, Inc. ^(a)		790,110		79,809,011
				164,996,834
Energy — 1.5%
Cimarex Energy Co.		799,028		29,971,540

Financials — 24.7%
Alleghany Corp.		16,513		9,968,733
Bank OZK ^(b)		1,090,436		34,097,934
BankUnited, Inc.		1,206,485		41,961,548
BOK Financial Corp. ^(b)		596,851		40,872,356
Brighthouse Financial, Inc. ^(a)(b)		521,647		18,886,230
Brown & Brown, Inc.		321,009		15,219,037
Cadence BanCorp		918,727		15,085,497
Enstar Group Ltd. ^(a)(b)		90,364		18,514,680
First Republic Bank		248,384		36,495,061
Loews Corp.		594,849		26,780,102
Mr. Cooper Group, Inc. ^(a)(b)		1,236,005		38,353,235
ProAssurance Corp.		1,133,297		20,161,354
Reinsurance Group of America, Inc.		279,550		32,399,845
RenaissanceRe Holdings Ltd.		149,632		24,811,978
Sterling Bancorp		3,575,683		64,290,780

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 27

Diamond Hill Small-Mid Cap Fund
Schedule of Investments (Continued)
December 31, 2020

	Shares		Fair Value
Common Stocks — 94.8% continued
Financials — 24.7% continued
SVB Financial Group ^(a)		118,278	$	45,871,757
				483,770,127
Health Care — 3.0%
Boston Scientific Corp. ^(a)		345,522		12,421,516
Integer Holdings Corp. ^(a)		173,160		14,058,860
LivaNova plc ^(a)		468,964		31,050,106
				57,530,482
Industrials — 20.3%
Alaska Air Group, Inc.		555,961		28,909,972
Allegiant Travel Co.		204,712		38,739,699
Colfax Corp. ^(a)		1,469,666		56,200,028
Hub Group, Inc., Class A ^(a)		483,791		27,576,087
Kirby Corp. ^(a)(b)		953,717		49,431,152
Sensata Technologies Holding plc ^(a)		1,170,126		61,712,445
SPX FLOW, Inc. ^(a)		357,035		20,693,749
Stericycle, Inc. ^(a)		434,196		30,102,809
WESCO International, Inc. ^(a)		1,068,973		83,914,381
				397,280,322
Information Technology — 4.7%
Avnet, Inc.		354,759		12,455,588
Broadridge Financial Solutions, Inc.		72,960		11,177,472
Juniper Networks, Inc.		621,681		13,994,039
Sanmina Corp. ^(a)		724,886		23,116,615
WNS Holdings Ltd. - ADR ^(a)		421,204		30,347,748
				91,091,462
Materials — 3.3%
Ashland Global Holdings, Inc.		487,452		38,606,198
W.R. Grace & Co.		453,878		24,881,592
				63,487,790
Real Estate — 7.8%
American Campus Communities, Inc. REIT ^(b)		223,093		9,541,688
CubeSmart REIT		1,706,207		57,345,617
Douglas Emmett, Inc.		730,522		21,316,632
iStar, Inc. REIT ^(b)		703,428		10,445,906
Jones Lang LaSalle, Inc. ^(a)		91,599		13,590,544
Mid-America Apartment Communities, Inc. REIT		138,759		17,579,378

	Shares		Fair Value
Real Estate — 7.8% continued
Rayonier, Inc.		489,799	$	14,390,295
UDR, Inc.		232,494		8,934,744
				153,144,804
Utilities — 3.8%
South Jersey Industries, Inc. ^(b)		1,335,119		28,771,814
UGI Corp.		1,315,153		45,977,749
				74,749,563

Total Common Stocks
(Cost $1,485,224,979)			$	1,853,233,678

Registered Investment Companies — 6.3%
Diamond Hill Short Duration Securitized Bond Fund, Class Y ^(c)		2,637,952		26,643,319
State Street Institutional US Government Money Market Fund, Premier Class, 0.03% ^(d)		74,520,605		74,520,605
State Street Navigator Securities Lending Portfolio I, 0.17% ^(d)(e)		21,331,083		21,331,083

Total Registered Investment Companies
(Cost $122,365,611)			$	122,495,007

Total Investment Securities — 101.1%
(Cost $1,607,590,590)			$	1,975,728,685

Liabilities in Excess of Other Assets — (1.1)%				(20,448,723	)

Net Assets — 100.0%			$	1,955,279,962

^(a)	Non-income producing security.

^(b)	All or a portion of the security is on loan. The total fair value of the securities on loan as of December 31, 2020 was $29,051,172.

^(c)	Affiliated Fund.

^(d)	The rate shown is the 7-day effective yield as of December 31, 2020.

^(e)	This security was purchased with cash collateral held from securities on loan.

ADR — American Depositary Receipt

plc — Public Limited Company

REIT — Real Estate Investment Trust

See accompanying Notes to Financial Statements.

28 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Mid Cap Fund
Schedule of Investments
December 31, 2020

	Shares		Fair Value
Common Stocks — 93.8%
Communication Services — 1.2%
Liberty Media Corp. - Liberty Formula One - Series C ^(a)		68,630	$	2,923,638

Consumer Discretionary — 15.9%
Advance Auto Parts, Inc.		14,889		2,345,166
BorgWarner, Inc.		146,148		5,647,159
Carter’s, Inc.		20,064		1,887,420
Hanesbrands, Inc.		281,196		4,099,838
NVR, Inc. ^(a)		1,488		6,070,832
Polaris Industries, Inc.		17,178		1,636,720
PROG Holdings, Inc.		40,685		2,191,701
Red Rock Resorts, Inc., Class A		304,350		7,620,924
Vail Resorts, Inc.		17,995		5,019,885
VF Corp.		39,577		3,380,272
				39,899,917
Consumer Staples — 8.2%
Archer-Daniels-Midland Co.		107,404		5,414,236
Flowers Foods, Inc.		94,099		2,129,460
Molson Coors Beverage Co., Class B		69,214		3,127,781
Post Holdings, Inc. ^(a)		97,997		9,898,677
				20,570,154
Energy — 1.2%
Cimarex Energy Co.		77,558		2,909,201

Financials — 27.0%
American International Group, Inc.		144,595		5,474,367
Bank OZK		128,774		4,026,763
BankUnited, Inc.		113,900		3,961,442
BOK Financial Corp.		44,867		3,072,492
Brighthouse Financial, Inc. ^(a)		69,394		2,512,410
Discover Financial Services		30,602		2,770,399
Enstar Group Ltd. ^(a)		9,198		1,884,578
First Republic Bank		50,535		7,425,108
Franklin Resources, Inc.		48,771		1,218,787
Hartford Financial Services Group, Inc. (The)		78,062		3,823,477
Loews Corp.		226,491		10,196,625
Mr. Cooper Group, Inc. ^(a)		109,760		3,405,853

	Shares		Fair Value
Financials — 27.0% continued
Reinsurance Group of America, Inc.		16,360	$	1,896,124
RenaissanceRe Holdings Ltd.		16,884		2,799,705
Sterling Bancorp		335,667		6,035,293
SVB Financial Group ^(a)		15,678		6,080,399
Willis Towers Watson plc		5,761		1,213,727
				67,797,549
Health Care — 1.7%
Boston Scientific Corp. ^(a)		121,036		4,351,244

Industrials — 17.1%
Alaska Air Group, Inc.		94,274		4,902,248
Colfax Corp. ^(a)		173,835		6,647,450
Hub Group, Inc., Class A ^(a)		35,892		2,045,844
Kirby Corp. ^(a)		108,414		5,619,098
Parker-Hannifin Corp.		25,536		6,956,262
Sensata Technologies Holding plc ^(a)		121,638		6,415,188
Stericycle, Inc. ^(a)		57,565		3,990,981
WESCO International, Inc. ^(a)		79,378		6,231,173
				42,808,244
Information Technology — 6.8%
Avnet, Inc.		44,984		1,579,388
Check Point Software Technologies Ltd. ^(a)		43,407		5,769,224
Cognizant Technology Solutions Corp., Class A		55,139		4,518,641
Juniper Networks, Inc.		80,861		1,820,181
NXP Semiconductors NV		21,888		3,480,411
				17,167,845
Materials — 3.4%
Ashland Global Holdings, Inc.		66,036		5,230,051
W.R. Grace & Co.		59,553		3,264,695
				8,494,746
Real Estate — 7.7%
American Campus Communities, Inc. REIT		28,368		1,213,299
CubeSmart REIT		219,675		7,383,277

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 29

Diamond Hill Mid Cap Fund
Schedule of Investments (Continued)
December 31, 2020

	Shares		Fair Value
Common Stocks — 93.8% continued
Real Estate — 7.7% continued
Douglas Emmett, Inc.		96,726	$	2,822,465
Jones Lang LaSalle, Inc. ^(a)		11,682		1,733,258
Mid-America Apartment Communities, Inc. REIT		18,230		2,309,559
UDR, Inc.		29,918		1,149,749
Weyerhaeuser Co.		77,897		2,611,886
				19,223,493
Utilities — 3.6%
South Jersey Industries, Inc.		149,962		3,231,681
UGI Corp.		167,948		5,871,462
				9,103,143

Total Common Stocks
(Cost $184,355,421)			$	235,249,174

Registered Investment Companies — 6.6%
Diamond Hill Short Duration Securitized Bond Fund, Class Y ^(b)		161,057		1,626,675
State Street Institutional US Government Money Market Fund, Premier Class, 0.03% ^(c)		14,803,382		14,803,382

Total Registered Investment Companies
(Cost $16,426,424)			$	16,430,057

Total Investment Securities — 100.4%
(Cost $200,781,845)			$	251,679,231

Liabilities in Excess of Other Assets — (0.4)%				(899,024	)

Net Assets — 100.0%			$	250,780,207

^(a)	Non-income producing security.

^(b)	Affiliated Fund.

^(c)	The rate shown is the 7-day effective yield as of December 31, 2020.

plc — Public Limited Company

REIT — Real Estate Investment Trust

NV — Naamloze Vennootschap

See accompanying Notes to Financial Statements.

Diamond Hill Large Cap Fund
Schedule of Investments
December 31, 2020

	Shares		Fair Value
Common Stocks — 96.4%
Communication Services — 7.8%
Charter Communications, Inc., Class A ^(a)		226,562	$	149,882,091
Comcast Corp., Class A		2,608,773		136,699,705
Facebook, Inc., Class A ^(a)		325,035		88,786,561
Walt Disney Co. (The) ^(a)		1,496,022		271,049,266
				646,417,623
Consumer Discretionary — 14.9%
Booking Holdings, Inc. ^(a)		81,975		182,580,458
BorgWarner, Inc.		3,704,607		143,146,015
General Motors Co.		4,221,224		175,771,767
Hanesbrands, Inc.		6,982,314		101,802,138
NVR, Inc. ^(a)		47,801		195,021,388
O’Reilly Automotive, Inc. ^(a)		213,449		96,600,614
TJX Cos., Inc. (The)		2,429,236		165,892,526
VF Corp.		2,032,499		173,595,740
				1,234,410,646
Consumer Staples — 12.6%
Archer-Daniels-Midland Co.		2,369,913		119,467,314
Kimberly-Clark Corp.		1,154,971		155,724,740
Mondelēz International, Inc., Class A		4,172,733		243,979,699
PepsiCo, Inc.		1,636,748		242,729,728
Philip Morris International, Inc.		532,995		44,126,656
Procter & Gamble Co. (The)		1,736,918		241,674,771
				1,047,702,908
Energy — 2.1%
Chevron Corp.		2,080,312		175,682,348

Financials — 27.0%
American International Group, Inc.		8,936,853		338,349,255
Bank of America Corp.		7,524,833		228,077,688
Berkshire Hathaway, Inc., Class B ^(a)		1,180,618		273,749,896
Charles Schwab Corp. (The)		4,193,082		222,401,069
First Republic Bank		924,108		135,779,188
Hartford Financial Services Group, Inc. (The)		3,178,004		155,658,636
JPMorgan Chase & Co.		903,021		114,746,878
KKR & Co., Inc.		5,736,476		232,269,913

30 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Large Cap Fund
Schedule of Investments (Continued)
December 31, 2020

	Shares		Fair Value
Common Stocks — 96.4% continued
Financials — 27.0% continued
Marsh & McLennan Cos., Inc.		1,094,889	$	128,102,013
MetLife, Inc.		2,693,479		126,458,839
Morgan Stanley		2,119,018		145,216,304
Truist Financial Corp.		2,992,148		143,413,654
				2,244,223,333
Health Care — 11.5%
Abbott Laboratories		3,023,391		331,031,081
Gilead Sciences, Inc.		1,251,798		72,929,752
Humana, Inc.		384,476		157,738,969
Medtronic plc		1,940,916		227,358,900
Pfizer, Inc.		4,514,888		166,193,027
				955,251,729
Industrials — 7.8%
Carrier Global Corp.		2,750,513		103,749,350
Caterpillar, Inc.		581,413		105,828,794
Deere & Co.		178,713		48,082,733
Honeywell International, Inc.		601,646		127,970,104
L3Harris Technologies, Inc.		538,573		101,801,068
Parker-Hannifin Corp.		584,032		159,096,157
				646,528,206
Information Technology — 6.6%
Cognizant Technology Solutions Corp., Class A		1,997,883		163,726,512
Fidelity National Information Services, Inc.		1,073,957		151,921,957
Texas Instruments, Inc.		817,163		134,120,963
Visa, Inc., Class A ^(b)		465,379		101,792,349
				551,561,781
Materials — 2.6%
Linde plc		476,451		125,549,603
Sherwin-Williams Co. (The)		124,587		91,560,232
				217,109,835
Real Estate — 2.5%
Public Storage REIT		407,891		94,194,269
Weyerhaeuser Co.		3,460,362		116,025,938
				210,220,207

	Shares		Fair Value
Utilities — 1.0%
Dominion Energy, Inc.		1,095,183	$	82,357,762

Total Common Stocks
(Cost $5,611,885,913)			$	8,011,466,378

Registered Investment Companies — 3.5%
State Street Institutional US Government Money Market Fund, Premier Class, 0.03% ^(c)		287,882,356		287,882,356

Total Registered Investment Companies
(Cost $287,882,356)			$	287,882,356

Total Investment Securities — 99.9%
(Cost $5,899,768,269)			$	8,299,348,734

Other Assets in Excess of Liabilities — 0.1%				12,417,030

Net Assets — 100.0%			$	8,311,765,764

^(a)	Non-income producing security.

^(b)	All or a portion of the security is on loan. The total fair value of the securities on loan as of December 31, 2020 was $101,354,889.

^(c)	The rate shown is the 7-day effective yield as of December 31, 2020.

plc — Public Limited Company

REIT — Real Estate Investment Trust

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 31

Diamond Hill All Cap Select Fund
Schedule of Investments
December 31, 2020

	Shares		Fair Value
Common Stocks — 97.9%
Communication Services — 1.2%
Walt Disney Co. (The) ^(a)		20,810	$	3,770,356

Consumer Discretionary — 13.9%
Booking Holdings, Inc. ^(a)		2,656		5,915,629
BorgWarner, Inc.		120,614		4,660,525
Hanesbrands, Inc.		1,149,493		16,759,608
Red Rock Resorts, Inc., Class A		462,368		11,577,695
VF Corp.		75,408		6,440,597
				45,354,054
Consumer Staples — 12.3%
Archer-Daniels-Midland Co.		128,966		6,501,176
Cal-Maine Foods, Inc. ^(a)		372,138		13,970,061
Mondelēz International, Inc., Class A		144,717		8,461,603
Seaboard Corp.		3,653		11,072,243
				40,005,083
Financials — 33.0%
Alleghany Corp.		6,591		3,978,921
American International Group, Inc.		483,796		18,316,517
Bank OZK		293,617		9,181,404
Berkshire Hathaway, Inc., Class B ^(a)		70,239		16,286,317
Cadence BanCorp		324,090		5,321,558
Charles Schwab Corp. (The)		204,159		10,828,593
KKR & Co., Inc.		342,803		13,880,093
Mr. Cooper Group, Inc. ^(a)		712,150		22,098,014
Sterling Bancorp		427,384		7,684,364
				107,575,781
Health Care — 4.7%
Boston Scientific Corp. ^(a)		183,710		6,604,374
GlaxoSmithKline plc - ADR ^(b)		107,279		3,947,867
Pfizer, Inc.		133,824		4,926,061
				15,478,302

	Shares		Fair Value
Industrials — 19.8%
Cimpress plc ^(a)(b)		97,040	$	8,514,290
Colfax Corp. ^(a)		237,273		9,073,320
Johnson Controls International plc		177,446		8,267,209
Kirby Corp. ^(a)		209,509		10,858,851
Sensata Technologies Holding plc ^(a)		98,199		5,179,015
WESCO International, Inc. ^(a)		289,663		22,738,545
				64,631,230
Information Technology — 5.7%
Cognizant Technology Solutions Corp., Class A		111,435		9,132,098
Sanmina Corp. ^(a)		145,231		4,631,417
Visa, Inc., Class A		22,596		4,942,423
				18,705,938
Materials — 5.4%
Ashland Global Holdings, Inc.		84,916		6,725,347
W.R. Grace & Co.		197,813		10,844,109
				17,569,456
Utilities — 1.9%
UGI Corp.		173,282		6,057,939

Total Common Stocks
(Cost $226,589,277)			$	319,148,139

32 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill All Cap Select Fund
Schedule of Investments (Continued)
December 31, 2020

	Shares		Fair Value
Registered Investment Companies — 3.3%
State Street Institutional US Government Money Market Fund, Premier Class, 0.03% ^(c)		7,848,305	$	7,848,305
State Street Navigator Securities Lending Portfolio I, 0.17% ^(c)(d)		2,799,197		2,799,197

Total Registered Investment Companies
(Cost $10,647,502)			$	10,647,502

Total Investment Securities — 101.2%
(Cost $237,236,779)			$	329,795,641

Liabilities in Excess of Other Assets — (1.2)%				(3,838,225	)

Net Assets — 100.0%			$	325,957,416

^(a)	Non-income producing security.

^(b)	All or a portion of the security is on loan. The total fair value of the securities on loan as of December 31, 2020 was $8,664,569.

^(c)	The rate shown is the 7-day effective yield as of December 31, 2020.

^(d)	The security was purchased with cash collateral from securities held on loan.

ADR — American Depositary Receipt

plc — Public Limited Company

See accompanying Notes to Financial Statements.

Diamond Hill Long-Short Fund
Schedule of Investments
December 31, 2020

	Shares		Fair Value
Common Stocks — 91.2%
Communication Services — 9.2%
Alphabet, Inc., Class A ^(a)		33,745	$	59,142,837
Comcast Corp., Class A		878,419		46,029,156
Facebook, Inc., Class A ^(a)		129,374		35,339,802
Walt Disney Co. (The) ^(a)(b)		264,539		47,929,176
				188,440,971
Consumer Discretionary — 9.4%
Advance Auto Parts, Inc.		111,417		17,549,292
Booking Holdings, Inc. ^(a)		15,970		35,569,502
BorgWarner, Inc. ^(b)		927,063		35,821,714
Hanesbrands, Inc. ^(b)(c)		1,515,965		22,102,770
TJX Cos., Inc. (The) ^(b)		645,226		44,062,484
VF Corp. ^(b)		445,809		38,076,547
				193,182,309
Consumer Staples — 4.9%
Archer-Daniels-Midland Co. ^(b)(c)		699,013		35,237,245
Constellation Brands, Inc., Class A ^(b)		126,794		27,774,226
Mondelēz International, Inc., Class A ^(b)		657,455		38,441,394
				101,452,865
Energy — 2.8%
Chevron Corp. ^(b)		365,649		30,879,058
Cimarex Energy Co. ^(c)		730,209		27,390,140
				58,269,198
Financials — 29.1%
American International Group, Inc. ^(b)(c)		2,095,155		79,322,568
Bank of America Corp.		1,316,160		39,892,810
Bank OZK ^(b)		971,745		30,386,466
Berkshire Hathaway, Inc., Class B ^(a)		309,479		71,758,896
Charles Schwab Corp. (The) ^(b)		523,314		27,756,575
Citigroup, Inc. ^(b)(c)		1,243,091		76,648,991
First Republic Bank ^(b)(c)		172,640		25,365,995
Hartford Financial Services Group, Inc. (The) ^(c)		909,886		44,566,216
JPMorgan Chase & Co. ^(b)		118,494		15,057,033
KKR & Co., Inc. ^(b)(c)		1,428,210		57,828,223
MetLife, Inc. ^(b)(c)		641,229		30,105,702

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 33

Diamond Hill Long-Short Fund
Schedule of Investments (Continued)
December 31, 2020

	Shares		Fair Value
Common Stocks — 91.2% continued
Financials — 29.1% continued
Morgan Stanley ^(b)(c)		442,207	$	30,304,446
SVB Financial Group ^(a)(b)		78,539		30,459,780
Truist Financial Corp. ^(b)		803,635		38,518,226
				597,971,927
Health Care — 11.3%
Abbott Laboratories ^(b)(c)		341,597		37,401,456
AbbVie, Inc. ^(b)		115,206		12,344,323
CVS Health Corp. ^(b)		340,129		23,230,811
Humana, Inc.		104,470		42,860,907
Medtronic plc ^(b)(c)		433,409		50,769,530
Perrigo Co. plc ^(b)(c)		624,709		27,936,986
Pfizer, Inc. ^(b)		1,043,045		38,394,486
				232,938,499
Industrials — 10.4%
Alaska Air Group, Inc. ^(b)		408,243		21,228,636
Johnson Controls International plc ^(b)		1,238,400		57,697,056
Kirby Corp. ^(a)(b)(c)		769,714		39,894,277
L3Harris Technologies, Inc. ^(b)		164,130		31,023,853
Parker-Hannifin Corp. ^(c)		133,311		36,315,249
Sensata Technologies Holding plc ^(a)(b)		542,568		28,615,036
				214,774,107
Information Technology — 9.4%
Cognizant Technology Solutions Corp., Class A ^(b)		566,775		46,447,211
Fidelity National Information Services, Inc. ^(b)		304,211		43,033,688
Microsoft Corp. ^(c)		184,097		40,946,855
Texas Instruments, Inc. ^(b)		182,531		29,958,813
Visa, Inc., Class A		147,157		32,187,651
				192,574,218
Materials — 3.6%
Ashland Global Holdings, Inc. ^(c)		340,084		26,934,653
Sherwin-Williams Co. (The) ^(b)		22,218		16,328,230
W.R. Grace & Co. ^(b)		553,439		30,339,526
				73,602,409

	Shares		Fair Value
Utilities — 1.1%
Dominion Energy, Inc. ^(b)		293,275	$	22,054,280

Total Common Stocks
(Cost $1,176,178,258)			$	1,875,260,783

Registered Investment Companies — 22.0%
Diamond Hill Short Duration Securitized Bond Fund, Class Y ^(d)		3,449,196		34,836,878
State Street Institutional US Government Money Market Fund, Premier Class, 0.03% ^(e)		123,366,204		123,366,204
State Street Navigator Securities Lending Portfolio I, 0.17% ^(e)(f)		294,518,354		294,518,354

Total Registered Investment Companies
(Cost $452,490,960)			$	452,721,436

Total Investment Securities — 113.2%
(Cost $1,628,669,218)			$	2,327,982,219

Segregated Cash With Custodian — 29.4%				604,194,749

Investments Sold Short — (28.7)%
(Proceeds $506,570,999)				(590,817,468	)

Liabilities in Excess of Other Assets — (13.9)%				(285,585,898	)

Net Assets — 100.0%			$	2,055,773,602

^(a)	Non-income producing security.

^(b)	All or a portion of the security is on loan. The total fair value of the securities on loan as of December 31, 2020 was $289,541,747.

^(c)	All or a portion of the shares have been pledged as collateral for open short positions.

^(d)	Affiliated Fund.

^(e)	The rate shown is the 7-day effective yield as of December 31, 2020.

^(f)	This security was purchased with cash collateral held from securities on loan.

plc — Public Limited Company

See accompanying Notes to Financial Statements.

34 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Long-Short Fund
Schedule of Investments Sold Short
December 31, 2020

	Shares		Fair Value
Common Stocks — 28.7%
Communication Services — 0.7%
Cogent Communications Holdings, Inc.		254,325	$	15,226,438

Consumer Discretionary — 5.9%
Asbury Automotive Group, Inc.		103,986		15,154,920
Best Buy Co., Inc.		170,411		17,005,314
Cheesecake Factory, Inc. (The)		161,458		5,983,634
Dick’s Sporting Goods, Inc.		329,656		18,529,964
Grand Canyon Education, Inc.		195,772		18,228,331
Tesla, Inc.		29,499		20,816,559
Under Armour, Inc., Class A		886,009		15,212,775
Whirlpool Corp.		54,240		9,789,778
				120,721,275
Consumer Staples — 3.8%
Boston Beer Co., Inc. (The), Class A		14,068		13,987,672
Brown-Forman Corp., Class B		472,815		37,555,695
WD-40 Co.		100,875		26,800,470
				78,343,837
Financials — 4.8%
Blackstone Mortgage Trust, Inc., Class A		573,905		15,799,605
Commerce Bancshares, Inc.		563,516		37,023,001
FactSet Research Systems, Inc.		40,702		13,533,415
First Financial Bankshares, Inc.		612,223		22,147,167
Root, Inc.		681,315		10,703,459
				99,206,647
Health Care — 1.8%
Penumbra, Inc.		92,230		16,140,250
Waters Corp.		83,080		20,555,654
				36,695,904
Industrials — 4.5%
Cintas Corp.		27,044		9,558,972
PACCAR, Inc.		259,952		22,428,659
Proto Labs, Inc.		110,920		17,015,128

	Shares		Fair Value
Industrials — 4.5% continued
Robert Half International, Inc.		347,683	$	21,723,234
W.W. Grainger, Inc.		37,545		15,331,125
Wabtec Corp.		92,105		6,742,086
				92,799,204
Information Technology — 5.5%
Akamai Technologies, Inc.		146,720		15,404,133
Badger Meter, Inc.		263,236		24,759,978
Blackbaud, Inc.		318,862		18,353,697
Cisco Systems, Inc.		134,130		6,002,318
j2 Global, Inc.		157,359		15,372,401
Oracle Corp.		463,053		29,954,899
Western Union Co. (The)		147,924		3,245,453
				113,092,879
Materials — 0.1%
Silgan Holdings, Inc.		67,005		2,484,545

Real Estate — 0.4%
VEREIT, Inc.		207,916		7,857,146

Utilities — 1.2%
Ormat Technologies, Inc.		270,155		24,389,593

Total Investments Sold Short — 28.7%
(Proceeds $506,570,999)			$	590,817,468

Percentages disclosed are based on total net assets of the Fund at December 31, 2020.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 35

Diamond Hill Global Fund
Schedule of Investments
December 31, 2020

	Shares		Fair Value
Common Stocks — 99.4%
Canada — 5.2%
Rogers Communications, Inc., Class B ^(a)		17,946	$	836,104

China — 1.0%
Tencent Holdings Ltd.		2,200		158,298

France — 4.9%
EssilorLuxottica SA		2,105		328,017
LVMH Moet Hennessy Louis Vuitton SE		295		184,663
Safran SA ^(b)		2,029		287,566
				800,246
Germany — 1.3%
Beiersdorf AG		1,900		218,414

India — 1.2%
HDFC Bank Ltd. - ADR ^(b)		2,765		199,799

Israel — 3.4%
Check Point Software Technologies Ltd. ^(b)		4,092		543,868

Japan — 6.0%
KDDI Corp.		26,600		788,674
Nintendo Company Ltd. - ADR		2,235		179,962
				968,636
Mexico — 2.4%
Fomento Economico Mexicano SAB de CV		50,965		386,828

South Korea — 2.6%
Samsung Electronics Co. Ltd.		5,685		423,988

Switzerland — 7.1%
Novartis AG - ADR		3,240		305,953
Roche Holdings AG		1,821		634,245
Swatch Group AG (The)		750		203,880
				1,144,078
Taiwan Province Of China — 1.2%
Taiwan Semiconductor Manufacturing Co. Ltd. - ADR		1,730		188,639

	Shares		Fair Value
United Kingdom — 15.8%
Ashmore Group plc		59,642	$	352,190
Diageo plc		20,544		812,913
Howden Joinery Group plc ^(b)		36,717		345,895
Sage Group plc (The)		29,590		234,955
Unilever NV		13,350		808,323
				2,554,276
United States — 47.3%
Abbott Laboratories		2,590		283,579
Alphabet, Inc., Class A ^(b)		190		333,002
Berkshire Hathaway, Inc., Class B ^(b)		3,331		772,359
Booking Holdings, Inc. ^(b)		139		309,591
Charles Schwab Corp. (The)		9,285		492,476
Chevron Corp.		10,075		850,834
Comcast Corp., Class A		9,165		480,246
Constellation Brands, Inc., Class A		1,525		334,051
JPMorgan Chase & Co.		2,945		374,221
Liberty Media Corp. - Liberty Formula One, Series C ^(b)		3,800		161,880
Medtronic plc		2,770		324,478
Microsoft Corp.		1,340		298,043
Mondelēz International, Inc., Class A		4,951		289,485
Morgan Stanley		4,815		329,972
NXP Semiconductors NV		1,095		174,116
PepsiCo, Inc.		3,070		455,281
Procter & Gamble Co. (The)		3,060		425,768
Texas Instruments, Inc.		980		160,847
Visa, Inc., Class A		1,395		305,128
Walt Disney Co. (The) ^(b)		2,658		481,576
				7,636,933

Total Common Stocks
(Cost $13,308,058)			$	16,060,107

36 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Global Fund
Schedule of Investments (Continued)
December 31, 2020

	Par Value		Fair Value
Registered Investment Companies — 1.8%
State Street Institutional US Government Money Market Fund, Premier Class, 0.03% ^(c)		250,418	$	250,418
State Street Navigator Securities Lending Portfolio I, 0.17% ^(c)(d)		38,200		38,200

Total Registered Investment Companies
(Cost $288,618)			$	288,618

Total Investments at Value — 101.2%
(Cost $13,596,676)			$	16,348,725

Liabilities in Excess of Other Assets — (1.2)%				(193,517	)

Net Assets — 100.0%			$	16,155,208

^(a)	All or a portion of the security is on loan. The total fair value of the securities on loan as of December 31, 2020 was $37,272.

^(b)	Non-income producing security.

^(c)	The rate shown is the 7-day effective yield as of December 31, 2020.

^(d)	This security was purchased with cash collateral held from securities on loan.

ADR — American Depositary Receipt

AG — Aktiengesellschaft

NV — Naamloze Vennootschap

plc — Public Limited Company

SA — Societe Anonyme

SAB de CV — Societe Anonima Bursatil de Capital Variable

SE — Societe Europaea

See accompanying Notes to Financial Statements.

Diamond Hill International Fund
Schedule of Investments
December 31, 2020

	Shares		Fair Value
Common Stocks — 97.4%
Belgium — 5.1%
Anheuser-Busch InBev SA/NV		9,549	$	666,174
Shurgard Self Storage SA		4,750		205,731
				871,905
Canada — 4.6%
BlackBerry Ltd. ^(a)(b)		22,910		151,893
Fairfax Financial Holdings Ltd.		868		295,957
Rogers Communications, Inc., Class B ^(a)		7,031		327,574
				775,424
China — 5.7%
Alibaba.com Ltd. ^(b)		8,200		238,492
Baidu, Inc. - ADR ^(b)		1,676		362,418
Tencent Holdings Ltd.		5,100		366,963
				967,873
France — 7.6%
EssilorLuxottica SA		1,928		300,436
LVMH Moet Hennessy Louis Vuitton SE		354		221,595
Safran SA ^(b)		2,428		344,115
Vivendi SA		12,726		410,453
				1,276,599
Germany — 1.3%
Fuchs Petrolub SE		4,705		217,269

India — 3.1%
HDFC Bank Ltd. - ADR ^(b)		7,166		517,815

Israel — 3.1%
Check Point Software Technologies Ltd. ^(b)		3,919		520,874

Japan — 4.6%
Astellas Pharma, Inc.		20,600		318,956
Seven & i Holdings Co. Ltd.		9,900		350,555
Shionogi & Company Ltd.		2,000		109,340
				778,851
Mexico — 3.9%
Fomento Economico Mexicano SAB de CV		40,473		307,193

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 37

Diamond Hill International Fund
Schedule of Investments (Continued)
December 31, 2020

	Shares		Fair Value
Common Stocks — 97.4% continued
Mexico — 3.9% continued
Grupo Aeroportuario del Sureste SAB de CV, Class B ^(b)		20,937	$	347,234
				654,427
Netherlands — 2.0%
Prosus NV ^(b)		3,067		331,157

South Korea — 3.5%
Samsung Electronics Co. Ltd.		7,936		591,868

Spain — 1.6%
Banco Bilbao Vizcaya Argentaria SA		53,339		264,369

Switzerland — 10.8%
Compagnie Financiere Richemont SA, Class A		4,160		375,819
Julius Baer Group Ltd.		9,087		523,510
Novartis AG - ADR		3,831		361,761
Roche Holdings AG		947		329,835
Swatch Group AG (The)		875		237,860
				1,828,785
Taiwan Province Of China — 2.2%
Taiwan Semiconductor Manufacturing Co. Ltd. - ADR		3,414		372,263

Thailand — 2.3%
Kasikornbank pcl - NVDR		102,600		386,385

United Kingdom — 26.1%
Ashmore Group plc		55,585		328,233
B&M European Value Retail SA		20,701		145,732
Beazley plc		71,577		356,887
BT Group plc ^(b)		263,923		475,718
Bunzl plc		5,990		199,997
Compass Group plc		9,715		181,201
Diageo plc		15,462		611,822
GlaxoSmithKline plc		13,019		238,225
Howden Joinery Group plc ^(b)		56,541		532,648
InterContinental Hotels Group plc		5,719		370,683
Sage Group plc (The)		20,825		165,358
Tesco plc		69,889		220,557

	Shares		Fair Value
United Kingdom — 26.1% continued
Unilever NV		9,418	$	570,246
				4,397,307
United States — 9.9%
Alphabet, Inc., Class A ^(b)		260		455,686
Facebook, Inc., Class A ^(b)		1,025		279,989
LivaNova plc ^(b)		4,332		286,822
Walt Disney Co. (The) ^(b)		3,562		645,363
				1,667,860

Total Common Stocks
(Cost $13,720,319)			$	16,421,031

Warrants — 0.0% ^(e)
Compagnie Financiere Richemont SA (Cost $0)		8,320	$	2,161

Registered Investment Companies — 2.5%
State Street Institutional US Government Money Market Fund, Premier Class, 0.03% ^(c)	$	397,932		397,932
State Street Navigator Securities Lending Portfolio I, 0.17% ^(c)(d)		20,301		20,301

Total Registered Investment Companies
(Cost $418,233)			$	418,233

Total Investments at Value — 99.9%
(Cost $14,138,552)			$	16,841,425

Other Assets in Excess of Liabilities — 0.1%				26,361

Net Assets — 100.0%			$	16,867,786

^(a)	All or a portion of the security is on loan. The total fair value of the securities on loan as of December 31, 2020 was $153,943.

^(b)	Non-income producing security.

^(c)	The rate shown is the 7-day effective yield as of December 31, 2020.

^(d)	This security was purchased with cash collateral held from securities on loan.

^(e)	Amount rounds to less than 0.1%.

38 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill International Fund
Schedule of Investments (Continued)
December 31, 2020

ADR — American Depositary Receipt

AG — Aktiengesellschaft

NV — Naamloze Vennootschap

NVDR — Non-Voting Depositary Receipt

pcl— Public Company Limited

plc — Public Limited Company

SA — Societe Anonyme

SAB de CV— Societe Anonima Bursatil de Capital Variable

SE — Societe Europaea

See accompanying Notes to Financial Statements.

Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Corporate Credit — 1.6%
Banking — 0.3%
Goldman Sachs Group, Inc. (3MO LIBOR + 111) ^(a)		1.325	%		04/26/22	$	450,000	$	451,246
JPMorgan Chase & Co. (3MO LIBOR + 100) ^(a)		1.237	%		01/15/23		400,000		403,307
JPMorgan Chase & Co. ^(b)		0.653	%		09/16/24		350,000		351,829
Mizuho Financial Group, Inc.		2.273	%		09/13/21		500,000		506,575
PNC Bank NA ^(b)		1.743	%		02/24/23		420,000		426,479
Toronto-Dominion Bank (The) (3MO LIBOR + 43) ^(a)(b)		0.651	%		06/11/21		1,000,000		1,001,850
Toronto-Dominion Bank (The) (SOFR + 48) ^(a)		0.570	%		01/27/23		375,000		376,404
									3,517,690
Capital Goods — 0.0% ^(c)
Welbilt, Inc. ^(b)		9.500	%		02/15/24		100,000		103,354

Communications — 0.0% ^(c)
Twenty-First Century Fox, Inc.		4.030	%		01/25/24		450,000		495,537

Consumer Cyclical — 0.2%
Daimler Finance LLC ^(b)(d)		1.750	%		03/10/23		1,900,000		1,950,568
Ford Motor Credit Co. LLC ^(b)		5.584	%		03/18/24		250,000		269,662
General Motors Financial Co., Inc.		3.200	%		07/06/21		25,000		25,269
									2,245,499
Electric — 0.1%
DTE Energy Co.		1.050	%		06/01/25		500,000		505,511

Energy — 0.3%
Diamondback Energy, Inc.		5.375	%		05/31/25		767,000		798,444
Energy Transfer Operating LP		4.500	%		04/15/24		925,000		1,011,509
Welltec A/S ^(d)		9.500	%		12/01/22		200,000		186,000
WPX Energy, Inc.		5.250	%		09/15/24		1,000,000		1,089,270
									3,085,223
Insurance — 0.3%
Athene Global Funding ^(d)		2.500	%		01/14/25		1,450,000		1,518,647
Jackson National Life Global Funding (3MO LIBOR + 48) ^(a)(d)		0.701	%		06/11/21		950,000		951,871

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 39

Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Corporate Credit — 1.6% continued
Insurance — 0.3% continued
Jackson National Life Global Funding ^(d)		2.100	%		10/25/21	$	200,000	$	202,862
Met Life Global Funding I ^(d)		1.950	%		01/13/23		450,000		464,258
Principal Life Global Funding II ^(d)		2.375	%		11/21/21		400,000		407,386
									3,545,024
Technology — 0.1%
Dell International LLC ^(d)		4.000	%		07/15/24		500,000		551,227

Transportation — 0.3%
Alaska Airlines, Series 2020-1B, Class A ^(d)		4.800	%		08/15/27		500,000		550,657
American Airlines Pass-Through Trust, Series 2016-2, Class AA		3.200	%		12/15/29		1,619,000		1,578,541
U.S. Airways Pass-Through Trust, Series 2012-2, Class B		6.750	%		12/03/22		125,172		121,692
United Airlines Pass-Through Trust, Series 2013-1, Class B		5.375	%		02/15/23		67,297		67,818
United Airlines Pass-Through Trust, Series 2007-1, Class A		6.636	%		01/02/24		97,745		99,717
United Airlines Pass-Through Trust, Series 2020-1, Class A		5.875	%		10/15/27		1,200,000		1,296,291
									3,714,716

Total Corporate Credit
(Cost $17,120,149)								$	17,763,781

Securitized — 84.8%
ABS-Other — 5.7%
BXG Receivables, Series 2018-A, Class C ^(d)		4.440	%		02/02/34		1,230,038		1,268,183
Diamond Resorts Owner Trust, Series 2019-1, Class B ^(d)		3.530	%		02/20/32		759,670		778,158
FMC GMSR Issuer Trust, Series 2019-GT2, Class A ^(d)		4.230	%		09/25/24		5,000,000		4,904,979

	Coupon			Maturity		Shares / Par Value		Fair Value
ABS-Other — 5.7% continued
FMC GMSR Issuer Trust, Series 2020-GT1, Class A ^(a)(d)		4.450	%		01/25/26	$	3,000,000	$	2,998,428
Gold Key Resorts LLC, Series 2014-A, Class A ^(d)		3.220	%		03/17/31		75,162		75,880
Helios Issuer LLC, Series 2020-4, Class A ^(d)		2.980	%		06/20/47		1,936,645		2,006,864
Hero Funding Trust, Series 2016-1R, Class A1 ^(d)		4.500	%		09/21/42		45,044		45,095
Hero Funding Trust, Series 2016-4B, Class B ^(d)		4.990	%		09/20/47		758,429		774,084
Holiday Inn Timeshare Trust, Series 2020-A, Class C ^(d)		3.420	%		10/09/39		532,723		550,622
Holiday Inn Timeshare Trust, Series 2020-A, Class D ^(d)		5.500	%		10/09/39		926,474		953,432
Holiday Inn Timeshare Trust, Series 2020-A, Class E ^(d)		6.500	%		10/09/39		1,852,948		1,881,470
Loanpal Solar Loan Ltd., Series 2021-1GS, Class A ^(d)		2.290	%		01/20/48		3,800,000		3,822,192
Mosaic Solar Loans LLC, Series 2017-2A, Class D (PO) ^(d)		0.000	%		06/22/43		1,445,963		1,399,198
Mosaic Solar Loans LLC, Series 2017-2, Class B ^(d)		4.770	%		06/22/43		682,794		742,885
Mosaic Solar Loans LLC, Series 2020-1, Class A ^(d)		2.100	%		04/20/46		2,678,229		2,731,395
Mosaic Solar Loans LLC, Series 2020-1A, Class B ^(d)		3.100	%		04/20/46		2,142,583		2,203,962
OCWEN Master Advance Receivables Trust, Series 2020-T1, Class E-T1 ^(d)(e)		5.419	%		08/15/52		2,000,000		2,004,046
PNMAC GMSR Issuer Trust, Series 2018-GT1, Class A (1MO LIBOR + 285) ^(a)(d)		2.998	%		02/25/23		7,000,000		6,881,663

40 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Securitized — 84.8% continued
ABS-Other — 5.7% continued
PNMAC GMSR Issuer Trust, Series 2018-GT2, Class NT (1MO LIBOR + 265) ^(a)(d)		2.798	%		08/25/23	$	8,500,000	$	8,206,747
Renew Financial LLC, Series 2017-1, Class B ^(a)(d)		5.750	%		09/20/52		769,821		789,506
SPS Servicer Advance Receivables, Series 2020-T1, Class DT1 ^(d)		2.370	%		11/15/52		700,000		702,298
SPS Servicer Advance Receivables, Series 2020-T2, Class D ^(d)		3.160	%		11/15/55		3,000,000		3,026,897
TES LLC, Series 2017-1, Class A ^(d)		4.330	%		10/20/47		4,302,817		4,417,938
TES LLC, Series 2017-1, Class B ^(d)		7.740	%		10/20/47		2,000,000		1,901,663
Westgate Resorts, Series 2018-1, Class B ^(d)		3.580	%		12/20/31		859,841		855,621
Westgate Resorts, Series 2018-1, Class C ^(d)		4.100	%		12/20/31		2,051,894		2,031,706
Westgate Resorts, Series 2020-1, Class B ^(d)		3.963	%		03/20/34		1,407,483		1,454,402
Westgate Resorts, Series 2020-1A, Class C ^(d)		6.213	%		03/20/34		5,138,429		5,381,786
									64,791,100
Agency MBS CMO — 1.5%
FHLMC, Series 2979, Class FP (1MO LIBOR + 45) ^(a)		0.609	%		05/15/35		416,816		419,537
FHLMC, Series 3121, Class FM (1MO LIBOR + 40) ^(a)		0.559	%		03/15/36		440,479		442,973
FHLMC, Series 4613, Class AF (1MO LIBOR + 110) ^(a)		1.259	%		11/15/37		783,167		791,491
FHLMC, Series 4085, Class FB (1MO LIBOR+40) ^(a)		0.559	%		01/15/39		263,249		263,721

	Coupon				Maturity		Shares / Par Value		Fair Value
Agency MBS CMO — 1.5% continued
FHLMC, Series 4095, Class FB (1MO LIBOR +40) ^(a)		0.559	%			04/15/39	$	112,025	$	112,233
FHLMC, Series 3925, Class FL (1MO LIBOR + 45) ^(a)		0.609	%			01/15/41		256,932		257,820
FHLMC, Series 3895, Class BF (1MO LIBOR + 50) ^(a)		0.659	%			07/15/41		350,987		354,046
FHLMC, Series 4314, Class PF (1MO LIBOR + 40) ^(a)		0.559	%			07/15/43		243,420		244,060
FHLMC, Series 4972, Class ZC		2.500	%			05/25/50		966,751		964,204
FNMA, Series 2006-56, Class DC (1MO LIBOR + 65) ^(a)		0.798	%			07/25/36		863,411		867,216
FNMA, Series 2006-108, Class FD (1MO LIBOR + 38) ^(a)		0.528	%			11/25/36		351,420		354,686
FNMA, Series 2010-136, Class FA (1MO LIBOR + 50) ^(a)		0.648	%			12/25/40		350,222		353,797
FNMA, Series 2011-86, Class KF (1MO LIBOR +55) ^(a)		0.698	%			09/25/41		534,416		542,758
FNMA, Series 2012-9, Class FC (1MO LIBOR + 40) ^(a)		0.548	%			02/25/42		243,323		244,992
FNMA, Series 2012-33, Class F (1MO LIBOR + 52) ^(a)		0.668	%			04/25/42		208,124		210,027
FNMA, Series 2013-34, Class GP		3.000	%			05/25/42		7,153,116		7,326,066
GNMA, Series 2007-18, Class FD (1MO LIBOR + 30) ^(a)		0.452	%			04/20/37		520,978		520,557
GNMA, Series 2008-16, Class FC (1MO LIBOR + 50) ^(a)		0.652	%	��		02/20/38		424,555		426,644
GNMA, Series 2012-149, Class GF (1MO LIBOR + 30) ^(a)		0.452	%			12/20/42		224,313		224,310

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 41

Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Securitized — 84.8% continued
Agency MBS CMO — 1.5% continued
GNMA, Series 2012-H29, Class SA (1MO LIBOR + 51.5) ^(a)		0.655	%		10/20/62	$	642,067	$	644,046
GNMA, Series 2012-H23, Class SA (1MO LIBOR + 53) ^(a)		0.670	%		10/20/62		582,161		583,830
GNMA, Series 2017-H18, Class FE (1MO LIBOR + 20) ^(a)		0.340	%		06/20/63		7,236		7,234
GNMA, Series 2016-H11, Class FD (12MO LIBOR + 40) ^(a)		1.402	%		05/20/66		116,648		117,236
GNMA, Series 2017-H11, Class FP (1MO LIBOR + 22) ^(a)		0.360	%		04/20/67		369,123		368,784
									16,642,268
Agency MBS CMO Derivatives — 0.5%
FHLMC, Series 3946, Class SB (IO) (-1*1MO LIBOR + 675) ^(a)		6.591	%		10/15/26		202,629		23,079
FHLMC, Series 237, Class S14 (IO) (-1*1MO LIBOR + 660) ^(a)		6.441	%		05/15/36		809,808		164,056
FHLMC, Series 4693, Class EI (IO)		3.500	%		08/15/42		2,455,109		53,095
FNMA, Series 2011-75, Class MI (IO)		3.500	%		08/25/26		389,969		16,798
FNMA, Series 2012-148, Class IA (IO)		4.000	%		01/25/28		3,354,026		275,947
FNMA, Series 301, Class I (PO)		0.000	%		04/25/29		307,457		295,314
FNMA, Series 348, Class II (IO)		6.000	%		01/25/34		752,947		162,973
FNMA, Series 2014-19, Class MS (IO) (-1*1MO LIBOR + 660) ^(a)		6.452	%		11/25/39		9,182,928		191,443
FNMA, Series 2013-120, Class JI (IO)		4.000	%		02/25/40		6,841,457		253,286
FNMA, Series 2010-44, Class CS (IO) (-1*1MO LIBOR + 655) ^(a)		6.402	%		05/25/40		682,515		113,347
FNMA, Series 2011-14, Class PI (IO)		5.000	%		06/25/40		256,675		12,047

	Coupon			Maturity		Shares / Par Value		Fair Value
Agency MBS CMO Derivatives — 0.5% continued
FNMA, Series 3998, Class NS (IO) (-1*1MO LIBOR + 660) ^(a)		6.441	%		09/15/40	$	4,985,510	$	342,925
FNMA, Series 2014-45, Class IO (IO)		4.000	%		08/25/44		762,515		79,021
GNMA, Series 2013-124, Class ST (-1.333*1MO LIBOR + 880) ^(a)		8.598	%		08/20/39		126,855		130,794
GNMA, Series 2011-145, Class QI (IO)		5.000	%		11/16/41		1,190,033		180,522
GNMA, Series 2015-16, Class IL (IO)		4.000	%		03/20/42		5,005,309		307,675
GNMA, Series 2014-141, Class IE (IO)		4.000	%		08/20/43		2,653,893		96,664
GNMA, Series 2010-H01, Class CI (IO) ^(a)		2.014	%		01/20/60		1,037,190		101,486
GNMA, Series 2012-H02, Class AI (IO) ^(a)		1.911	%		01/20/62		1,847,494		76,769
GNMA, Series 2013-H13, Class T1 (IO) ^(a)		0.471	%		05/20/63		32,197,026		483,554
GNMA, Series 2016-H20, Class GI (IO) ^(a)		0.372	%		08/20/66		31,543,035		325,288
GNMA, Series 2017-H11, Class PI (IO) ^(a)		3.861	%		04/20/67		1,996,234		40,060
GNMA, Series 2017-H22, Class ID (IO) ^(a)		3.854	%		11/20/67		391,433		24,173
GNMA, Series 2018-H08, Class NI (IO) ^(a)		0.822	%		05/20/68		17,447,032		430,844
GNMA, Series 2019-H04, Class IO (IO) ^(a)		1.468	%		03/20/69		27,636,335		1,050,206
									5,231,366
Agency MBS Passthrough — 0.2%
FHLMC, Pool #FG G60257		5.500	%		06/01/41		677,852		797,086
FHLMC, Pool #RE-6020		3.500	%		12/01/49		904,994		934,998
									1,732,084

42 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Securitized — 84.8% continued
Auto Loan — 13.0%
ACC Trust, Series 2019-1, Class A ^(d)		3.750	%		05/20/22	$	234,802	$	235,821
ACC Trust, Series 2019-2, Class A ^(d)		2.820	%		02/21/23		1,309,404		1,315,450
American Credit Acceptance Receivables Trust, Series 2018-3, Class F ^(d)		6.440	%		06/12/25		7,690,000		8,047,979
American Credit Acceptance Receivables Trust, Series 2020-3, Class D ^(d)		2.400	%		06/15/26		4,200,000		4,342,140
American Credit Acceptance Receivables Trust, Series 2020-3, Class F ^(d)		5.940	%		06/14/27		6,750,000		7,072,256
American Credit Acceptance Receivables Trust, Series 2020-4, Class F ^(d)		5.220	%		08/13/27		2,800,000		2,850,291
Arivo Acceptance Auto Loan Receivables Trust, Series 2019-1, Class A ^(d)		2.990	%		07/15/24		658,006		666,280
Avid Automobile Receivables Trust, Series 2019-1, Class E ^(d)		6.760	%		05/17/27		2,500,000		2,501,835
Carvana Auto Receivable Trust, Series 2020-P1, Class C		1.320	%		11/09/26		1,450,000		1,453,126
Carvana Auto Receivable Trust, Series 2020-P1, Class D		1.820	%		09/08/27		1,100,000		1,109,333
Chase Credit Linked Notes, Series 2020-1, Class D ^(d)		1.886	%		01/25/28		2,151,250		2,165,337
Chase Credit Linked Notes, Series 2020-1, Class E ^(d)		3.715	%		01/25/28		1,103,352		1,109,514
Chase Credit Linked Notes, Series 2020-2, Class C ^(d)		1.140	%		02/25/28		1,258,000		1,259,737

	Coupon			Maturity		Shares / Par Value		Fair Value
Auto Loan — 13.0% continued
CIG Auto Receivables Trust, Series 2020-1, Class D ^(d)		2.350	%		01/12/26	$	2,400,000	$	2,416,928
CPS Auto Receivables Trust, Series 2018-C, Class D ^(d)		4.400	%		06/17/24		850,000		880,228
CPS Auto Receivables Trust, Series 2020-B, Class D ^(d)		4.750	%		04/15/26		5,000,000		5,401,315
CPS Auto Receivables Trust, Series 2020-C, Class D ^(d)		2.410	%		11/16/26		2,600,000		2,685,463
Credit Acceptance Auto Loan Trust, Series 2020-2, Class C ^(d)		2.730	%		11/15/29		3,000,000		3,078,665
Credit Acceptance Auto Loan Trust, Series 2020-3A, Class C ^(d)		2.280	%		02/15/30		2,500,000		2,538,717
Drive Auto Receivables Trust, Series 2020-1, Class D		2.700	%		05/17/27		4,500,000		4,665,874
Drive Auto Receivables Trust, Series 2020-2, Class D		3.050	%		05/15/28		8,000,000		8,440,217
DT Auto Owner Trust, Series 2020-2, Class E ^(d)		4.730	%		03/16/26		500,000		545,153
DT Auto Owner Trust, Series 2020-2, Class E ^(d)		7.170	%		06/15/27		1,250,000		1,394,441
Exeter Automobile Receivables Trust, Series 2020-2, Class D ^(d)		4.730	%		04/15/26		500,000		543,175
Exeter Automobile Receivables Trust, Series 2020-2, Class E ^(d)		7.190	%		09/15/27		2,000,000		2,230,599
FHF Trust, Series 2020-1, Class A ^(d)		2.590	%		12/15/23		2,788,040		2,806,825
FHF Trust, Series 2020-1, Class B ^(d)		3.100	%		09/15/25		4,500,000		4,624,965
Foursight Capital Automobile Receivables, Series 2018-2, Class E ^(d)		5.500	%		10/15/24		6,000,000		6,350,964

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 43

Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Securitized — 84.8% continued
Auto Loan — 13.0% continued
Foursight Capital Automobile Receivables, Series 2020-1, Class C ^(d)		2.410	%		08/15/25	$	4,400,000	$	4,476,569
Foursight Capital Automobile Receivables, Series 2020-1, Class E ^(d)		3.490	%		04/15/26		1,300,000		1,309,858
GLS Auto Receivables Trust, Series 2020-4A, Class D ^(d)		1.640	%		10/15/26		2,000,000		2,035,518
Hertz Fleet Lease Funding LP, Series 2017-1, Class D ^(d)		3.690	%		04/10/31		1,500,000		1,499,591
Hertz Fleet Lease Funding LP, Series 2017-1, Class E ^(d)		5.800	%		04/10/31		8,000,000		8,052,953
Hertz Fleet Lease Funding LP, Series 2018-1, Class D ^(d)		4.170	%		05/10/32		700,000		704,482
Hertz Fleet Lease Funding LP, Series 2018-1, Class E ^(d)		5.550	%		05/10/32		4,888,000		4,927,052
Hertz Fleet Lease Funding LP, Series 2019-1, Class E ^(d)		4.620	%		01/10/33		3,400,000		3,464,858
Navistar Financial Dealer Note Master Trust, Series 2019-1, Class D (1MO LIBOR + 145) ^(a)(d)		1.598	%		05/28/24		1,200,000		1,200,895
OSCAR US Funding Trust, Series 2019-11, Class A-4 ^(d)		2.680	%		09/10/26		5,270,000		5,525,428
Santander Consumer Auto Receivables, Series 2020-B, Class D ^(d)		2.140	%		12/15/26		2,000,000		2,031,121
Skopos Auto Receivables Trust, Series 2018-1, Class C ^(d)		4.770	%		04/17/23		3,736,355		3,795,854
Skopos Auto Receivables Trust, Series 2019-1, Class B ^(d)		3.430	%		09/15/23		6,000,000		6,071,662
Tesla Auto Lease Trust, Series 2018-B, Class D ^(d)		5.290	%		11/22/21		5,250,000		5,375,439

	Coupon			Maturity		Shares / Par Value		Fair Value
Auto Loan — 13.0% continued
Tesla Auto Lease Trust, Series 2020-A, Class D ^(d)		2.330	%		02/20/24	$	2,500,000	$	2,559,978
Veros Auto Receivables Trust, Series 2020-1, Class A ^(d)		1.670	%		09/15/23		2,233,872		2,240,625
Veros Auto Receivables Trust, Series 2020-1, Class B ^(d)		2.190	%		06/16/25		2,500,000		2,520,907
Westlake Auto Receivables Trust, Series 2019-3, Class D ^(d)		2.720	%		11/15/24		1,750,000		1,797,227
Westlake Auto Receivables Trust, Series 2020-2, Class D ^(d)		2.760	%		01/15/26		5,000,000		5,170,767
									147,493,412
Conduit — 0.0% ^(c)
WF-RBS Commercial Mortgage Trust, Series 2011-C2, Class D ^(a)(d)		5.631	%		02/15/44		175,653		175,168

CRE/CLO — 8.4%
A10 Securitization, Series 2020-C, Class B ^(d)(e)		2.617	%		08/15/40		2,100,000		2,099,626
A10 Securitization, Series 2020-C, Class C ^(d)(e)		3.363	%		08/15/40		2,800,000		2,793,188
A10 Securitization, Series 2020-C, Class D ^(d)(e)		4.129	%		08/15/40		1,950,000		1,946,880
A10 Securitization, Series 2020-C, Class E ^(d)(e)		5.465	%		08/15/40		1,050,000		1,047,278
A10 Securitization, Series 2020-C, Class A ^(d)(e)		2.021	%		09/15/50		1,303,670		1,303,584
Bancorp Commercial Mortgage Trust (The), Series 2017-CRE2, Class C (1MO LIBOR + 235) ^(a)(d)		2.491	%		08/15/32		4,750,000		4,606,923

44 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Securitized — 84.8% continued
CRE/CLO — 8.4% continued
Bancorp Commercial Mortgage Trust (The), Series 2018-CR3, Class D (1MO LIBOR + 270) ^(a)(d)		2.859	%		03/16/35	$	4,500,000	$	4,359,600
Bancorp Commercial Mortgage Trust (The), Series 2019-CRE5, Class A (1MO LIBOR + 100) ^(a)(d)		1.159	%		03/17/36		858,124		853,710
BXMT Ltd, Series 2020-FL2, Class C (1MO LIBOR + 165) ^(a)(d)		1.793	%		02/18/38		1,525,000		1,502,206
BXMT Ltd., Series 2017-FL1, Class C (1MO LIBOR + 195) ^(a)(d)		2.103	%		06/15/35		2,100,000		2,088,108
BXMT Ltd., Series 2017-FL1, Class D (1MO LIBOR + 275) ^(a)		2.852	%		06/15/35		3,300,000		3,291,813
BXMT Ltd., Series 2020-FL2, Class A (1MO LIBOR + 90) ^(a)(d)		1.043	%		02/16/37		7,500,000		7,448,775
BXMT Ltd., Series 2020-FL2, Class D (1MO LIBOR + 195) ^(a)(d)		2.094	%		02/16/37		4,225,000		4,151,308
BXMT Ltd., Series 2020-FL2, Class E (1MO LIBOR + 205) ^(a)(d)		2.194	%		02/16/37		2,500,000		2,400,317
BXMT Ltd., Series 2020-FL2, Class B (1MO LIBOR + 140) ^(a)(d)		1.552	%		02/18/38		3,650,000		3,599,999
Exantas Capital Corp., Series 2020-RS09, Class D (1MO LIBOR + 550) ^(a)(d)(e)		5.653	%		04/17/37		7,284,823		7,338,338
FHLMC, Series 2020-FL3, Class B (1MO LIBOR + 375) ^(a)(d)		3.891	%		07/15/35		1,000,000		1,013,084

	Coupon			Maturity		Shares / Par Value		Fair Value
CRE/CLO — 8.4% continued
FHLMC, Series 2020-FL3, Class C (1MO LIBOR + 450) ^(a)(d)		4.641	%		07/15/35	$	1,000,000	$	1,019,317
FHLMC, Series 2020-FL3, Class A-S (1MO LIBOR + 285) ^(a)(d)		2.991	%		07/16/35		1,500,000		1,515,887
KKR Real Estate Finance Trust, Inc., Series 2018-FL1, Class A (1MO LIBOR + 110) ^(a)(d)		1.253	%		06/15/36		1,925,000		1,921,460
Multi Family Housing Mortgage Loan, Series 2019-FL2, Class A (1MO LIBOR + 113) ^(a)(d)		1.280	%		11/27/34		6,025,000		5,968,769
Multi Family Housing Mortgage Loan, Series 2019-FL2, Class C (1MO LIBOR + 200) ^(a)(d)		2.150	%		12/25/34		4,400,000		4,241,015
Multi Family Housing Mortgage Loan, Series 2020-FL4, Class A (1MO LIBOR +170) ^(a)(d)		1.859	%		11/15/35		4,000,000		4,003,440
PFP Ltd., Series 2019-5, Class B (1MO LIBOR + 165) ^(a)(d)		1.803	%		04/16/36		2,150,000		2,096,480
ReadyCap Commercial Mortgage Trust, Series 2020-FL4, Class A (1MO LIBOR + 215) ^(a)(d)		2.300	%		02/25/35		6,649,930		6,686,398
ReadyCap Commercial Mortgage Trust, Series 2020-FL4, Class B (1MO LIBOR + 385) ^(a)(d)		4.000	%		02/25/35		4,000,000		4,049,028
ReadyCap Commercial Mortgage Trust, Series 2020-FL4, Class C (1MO LIBOR + 475) ^(a)(d)		4.900	%		02/25/35		4,000,000		4,048,658

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 45

Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Securitized — 84.8% continued
CRE/CLO — 8.4% continued
ReadyCap Commercial Mortgage Trust, Series 2018-FL2, Class D (1MO LIBOR + 270) ^(a)(d)(e)		2.848	%		06/25/35	$	6,600,000	$	6,418,038
VMC Finance LLC, Series 2018-FL2, Class A (1MO LIBOR + 92) ^(a)(d)		1.073	%		10/15/35		1,211,036		1,205,323
									95,018,550
Credit Cards — 3.6%
Continental Credit Card LLC, Series 2017-1, Class B ^(d)		6.410	%		01/15/25		3,935,711		4,096,275
Continental Credit Card LLC, Series 2019-1, Class A ^(d)		3.830	%		08/15/26		7,650,000		7,877,626
Continental Credit Card LLC, Series 2019-1, Class B ^(d)		4.950	%		08/15/26		7,450,000		7,720,848
Continental Credit Card LLC, Series 2019-1, Class C ^(d)		6.160	%		08/15/26		3,000,000		3,110,309
Continental Credit Card LLC, Series 2020-A, Class A ^(d)		2.240	%		12/15/28		3,600,000		3,612,067
Continental Credit Card LLC, Series 2020-A, Class B ^(d)		3.660	%		12/15/28		3,100,000		3,112,648
Genesis Private Label Amortization Trust, Series 2020-1, Class C ^(d)		4.190	%		07/20/30		1,680,000		1,690,809
Genesis Private Label Amortization Trust, Series 2020-1, Class E ^(d)		9.760	%		07/20/30		2,625,000		2,650,927
Genesis Sales Finance Master Trust, Series 2019-A, Class A ^(d)		4.680	%		08/20/23		1,200,000		1,205,421
Genesis Sales Finance Master Trust, Series 2019-A, Class C ^(d)		6.880	%		08/20/23		1,700,000		1,709,824
Genesis Sales Finance Master Trust, Series 2019-A, Class D ^(d)		9.540	%		08/20/23		1,000,000		1,007,559

	Coupon			Maturity		Shares / Par Value		Fair Value
Credit Cards — 3.6% continued
Genesis Sales Finance Master Trust, Series 2020-AA, Class B ^(d)		2.240	%		09/22/25	$	2,500,000	$	2,519,772
Genesis Sales Finance Master Trust, Series 2020-AA, Class C ^(d)		2.990	%		09/22/25		1,000,000		998,952
									41,313,037
Equipment — 3.8%
Access Point Financial, Inc., Series 2017-A, Class B ^(d)(e)		3.970	%		04/15/29		439,635		441,786
Access Point Financial, Inc., Series 2017-A, Class C ^(d)(e)		5.820	%		04/15/29		4,750,000		4,721,001
Access Point Financial, Inc., Series 2017-A, Class D ^(d)(e)		6.000	%		04/15/29		5,000,000		4,949,890
Business Jet Securities LLC, Series 2018-2, Class A ^(d)		4.447	%		06/15/33		3,149,806		3,206,578
Business Jet Securities LLC, Series 2018-2, Class B ^(d)		5.437	%		06/15/33		4,367,364		4,440,168
Business Jet Securities LLC, Series 2019-1, Class B ^(d)		5.193	%		07/15/34		2,690,360		2,705,933
Business Jet Securities LLC, Series 2019-1, Class C ^(d)		6.948	%		07/15/34		4,993,380		5,028,197
Business Jet Securities LLC, Series 2020-1, Class B ^(d)		3.967	%		11/15/35		1,319,986		1,326,335
Business Jet Securities LLC, Series 2020-1, Class C ^(d)		7.142	%		11/15/35		2,890,359		2,924,857
CCG Receivables Trust, Series 2018-2, Class C ^(d)		3.870	%		12/15/25		2,395,000		2,466,959
Octane Receivables Trust, Series 2019-1, Class A ^(d)		3.160	%		09/20/23		2,091,955		2,118,183

46 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Securitized — 84.8% continued
Equipment — 3.8% continued
Octane Receivables Trust, Series 2020-1, Class A ^(d)		1.710	%		02/20/25	$	5,760,469	$	5,775,203
Octane Receivables Trust, Series 2020-1, Class C ^(d)		2.890	%		03/20/26		2,600,000		2,631,217
									42,736,307
HECM — 1.4%
Cascade Funding Mortgage Trust, Series 2018-RM1, Class A1 ^(d)		4.580	%		06/25/48		3,407,958		3,418,615
Cascade Funding Mortgage Trust, Series 2018-RM1, Class A2 ^(d)		5.875	%		06/25/48		3,000,000		2,984,264
Finance of America HECM, Series 2020-HB2, Class A ^(d)		1.710	%		07/25/30		5,446,365		5,454,546
Nationstar HECM Loan Trust, Series 2019-1A, Class A ^(d)		2.651	%		06/25/29		458,032		458,739
RMF Buyout Issuance Trust, Series 2020-1, Class M3 ^(d)		2.964	%		02/25/30		1,469,000		1,469,717
RMF Buyout Issuance Trust, Series 2020-2, Class M2 ^(d)		3.091	%		06/25/30		1,500,000		1,506,657
RMF Buyout Issuance Trust, Series 2020-2, Class M3 ^(d)		4.571	%		06/25/30		800,000		803,368
									16,095,906
Hospitality — 4.1%
Ashford Hospitality Trust, Series 2018-KEYS, Class A (1MO LIBOR + 100) ^(a)(d)		1.141	%		06/15/35		5,000,000		4,847,382
BHMS Mortgage Trust, Series 2018-ATLS, Class A (1MO LIBOR + 125) ^(a)(d)		1.391	%		07/16/35		4,400,000		4,278,663
BX Trust, Series 2018-GW, Class A (1MO LIBOR + 80) ^(a)(d)		0.941	%		05/15/35		5,389,000		5,297,753

	Coupon			Maturity		Shares / Par Value		Fair Value
Hospitality — 4.1% continued
BX Trust, Series 2018-GW, Class E (1MO LIBOR + 197) ^(a)(d)		2.111	%		05/15/37	$	500,000	$	474,331
BX Trust, Series 2019-OC11, Class C ^(d)		3.856	%		12/11/41		2,200,000		2,332,183
Champlain Housing Mortgage Trust, Series 2017-COSMO, Class B (1MO LIBOR + 140) ^(a)(d)		1.541	%		11/17/36		3,600,000		3,536,799
Cosmopolitan Hotel Trust, Series 2017-COSMO, Class D (1MO LIBOR + 225) ^(a)(d)		2.391	%		11/15/36		4,900,000		4,740,276
Cosmopolitan Hotel Trust, Series 2017-COSMO, Class A (1MO LIBOR + 93) ^(a)(d)		1.071	%		11/17/36		4,000,000		3,955,035
Goldman Sachs Mortgage Securities Corp. Trust, Series 2018-HULA, Class A (1MO LIBOR + 92) ^(a)(d)		1.079	%		07/16/35		2,823,081		2,766,455
Goldman Sachs Mortgage Securities Corp. Trust, Series 2018-HULA, Class B (1MO LIBOR + 125) ^(a)(d)		1.409	%		07/16/35		7,228,062		7,056,122
Hawaii Hotel Trust, Series 2019-MAUI, Class A (1MO LIBOR +115) ^(a)(d)		1.309	%		05/17/38		2,245,000		2,225,294
Motel 6 Trust, Series 2017-MTL6, Class D (1MO LIBOR + 215) ^(a)(d)		2.291	%		08/15/34		4,975,177		4,919,253
									46,429,546
Industrial — 3.2%
BX Commercial Mortgage Trust, Series 2020-FOX, Class D (1MO LIBOR + 210) ^(a)(d)		2.259	%		11/15/32		3,000,000		3,008,458

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 47

Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Securitized — 84.8% continued
Industrial — 3.2% continued
BX Commercial Mortgage Trust, Series 2018-IND, Class A (1MO LIBOR + 75) ^(a)(d)		0.891	%		11/15/35	$	591,669	$	591,484
BX Commercial Mortgage Trust, Series 2018-IND, Class F (1MO LIBOR + 180) ^(a)(d)		1.941	%		11/15/35		1,778,000		1,771,316
BX Commercial Mortgage Trust, Series 2019-XL, Class B (1MO LIBOR + 108) ^(a)(d)		1.221	%		10/15/36		5,581,871		5,581,869
BX Commercial Mortgage Trust, Series 2020-BXLP, Class D (1MO LIBOR + 125) ^(a)(d)		1.391	%		12/15/36		3,760,558		3,718,316
BX Commercial Mortgage Trust, Series 2020-BXLP, Class E (1MO LIBOR + 160) ^(a)(d)		1.741	%		12/15/36		4,296,068		4,209,913
Cold Storage Trust, Series 2020-ICE5, Class F (1MO LIBOR + 349.25) ^(a)(d)		3.633	%		11/15/37		5,000,000		5,005,971
Cold Storage Trust, Series 2020-ICE5, Class E ^(a)(d)		2.906	%		11/16/37		2,500,000		2,493,730
Credit Suisse First Boston, Series 2020-UNFI, Class A ^(a)(d)		4.168	%		12/06/22		10,400,000		10,400,517
									36,781,574
Laboratory — 0.5%
CGDBB Commercial Mortgage Trust, Series 2017-BIOC, Class B (1MO LIBOR + 97) ^(a)(d)		1.111	%		07/15/32		4,019,591		4,018,374
KNDL Mortgage Trust, Series 2019-KNSQ, Class D (1MO LIBOR + 135) ^(a)(d)		1.509	%		05/15/36		1,250,000		1,246,897
									5,265,271

	Coupon			Maturity		Shares / Par Value		Fair Value
Manufactured Housing — 0.1%
Cascade Funding Mortgage Trust, Series 2019-MH1, Class M ^(d)		5.985	%		11/25/44	$	1,100,000	$	1,146,259

Mixed-Use — 0.4%
20 Times Square Trust, Series 2018-20TS, Class B ^(a)(d)		3.203	%		05/17/35		4,400,000		4,384,201

Multifamily — 4.4%
Freedom Mortgage Trust, Series 2019-KF61, Class B ^(a)(d)		2.353	%		03/25/29		4,594,936		4,491,829
FREMF Mortgage Trust, Series 2018-KF44, Class B (1MO LIBOR +215) ^(a)(d)		2.303	%		02/25/25		3,722,248		3,673,524
FREMF Mortgage Trust, Series 2018-KF43, Class B (1MO LIBOR +215) ^(a)(d)		2.303	%		01/25/28		4,471,083		4,365,236
FREMF Mortgage Trust, Series 2018-KF50, Class B (1MO LIBOR + 190) ^(a)(d)		2.040	%		07/25/28		2,603,279		2,510,544
FREMF Mortgage Trust, Series 2019-KF57, Class B (2MO LIBOR + 225) ^(a)(d)		2.403	%		01/25/29		3,511,820		3,401,399
Multi Family Connecticut Avenue, Series 2019-01, Class M-7 (1MO LIBOR + 170) ^(a)(d)		1.848	%		10/15/49		9,348,409		9,087,141
Multi Family Connecticut Avenue, Series 2019-01, Class B-10 (1MO LIBOR + 550) ^(a)(d)		5.648	%		10/15/49		3,000,000		2,581,819
Multi Family Connecticut Avenue, Series 2020-01, Class M-7 (1MO LIBOR + 195) ^(a)(d)		2.098	%		03/25/50		4,090,324		4,034,149

48 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Securitized — 84.8% continued
Multifamily — 4.4% continued
Multi Family Connecticut Avenue, Series 2020-01, Class M-10 (1MO LIBOR + 375) ^(a)(d)		3.898	%		03/25/50	$	15,000,000	$	14,579,478
Multi Family Connecticut Avenue, Series 2020-01, Class CE (1MO LIBOR + 750) ^(a)(d)		7.648	%		03/25/50		1,500,000		1,320,507
									50,045,626
Non-Performing Loan — 1.0%
Volt LXXX LLC, Series 2019-NP6, Class A-1A ^(a)(d)		3.228	%		10/25/49		1,733,529		1,735,973
Volt LXXXIX LLC, Series 2020-NPL5, Class A-1A ^(a)(d)		2.981	%		03/25/50		9,383,617		9,392,360
									11,128,333
Non-QM — 0.0% ^(c)
Citigroup Mortgage Loan Trust, Inc., Series 2004-UST1, Class A3 ^(a)		2.228	%		08/25/34		6,684		6,689

Residential Transition Loan — 1.4%
Antler Mortgage Trust, Series 2019-RTL1, Class A1 ^(d)		4.458	%		06/27/22		3,587,623		3,585,764
Antler Mortgage Trust, Series 2018-RTL1, Class A2 ^(d)		4.703	%		07/25/22		1,486,140		1,473,133
Antler Mortgage Trust, Series 2019-RTL1, Class A2 ^(d)		4.948	%		08/25/22		1,900,000		1,880,010
Antler Mortgage Trust, Series 2018-RTL1, Class M ^(d)		7.385	%		05/25/23		2,000,000		1,994,894
LHFC Depositor LLC, Series 2019-RLT1, Class A2 ^(d)		4.948	%		10/25/23		4,544,000		4,543,602
LHFC Depositor LLC, Series 2019-RLT1, Class M ^(d)		6.899	%		10/25/23		2,750,000		2,668,754
									16,146,157

	Coupon			Maturity		Shares / Par Value		Fair Value
Retail — 1.7%
BX Trust, Series 2018-EXCL, Class A (1MO LIBOR + 1088) ^(a)(d)		1.229	%		09/15/37	$	5,353,585	$	4,942,198
Citigroup Commercial Mortgage, Series 2017-MDRB, Class D (1MO LIBOR + 325) ^(a)(d)		3.391	%		07/15/30		9,650,000		9,112,746
Citigroup Commercial Mortgage, Series 2017-MDRB, Class A (1MO LIBOR + 110) ^(a)(d)		1.241	%		07/15/30		592,040		569,098
Credit Suisse First Boston, Series 2018-SITE, Class C ^(a)(d)		4.941	%		04/17/36		4,575,000		4,302,478
									18,926,520
Single Family Rental — 3.5%
American Homes 4 Rent, Series 2015-SFR2, Class D ^(d)		5.036	%		10/18/52		1,171,000		1,294,350
AMSR Trust, Series 2020-SFR2, Class G ^(d)		4.000	%		07/17/37		500,000		502,390
Colony American Finance Ltd., Series 2020-1, Class A1 ^(d)		1.832	%		03/17/50		8,852,362		8,980,456
Colony American Finance Ltd., Series 2020-4, Class B ^(d)		1.707	%		12/15/52		4,750,000		4,771,124
Invitation Homes Trust, Series 2017-SFR2, Class D (1MO LIBOR + 180) ^(a)(d)		1.953	%		12/17/36		2,995,604		3,002,756
Invitation Homes Trust, Series 2017-SFR2, Class A (1MO LIBOR + 85) ^(a)(d)		1.003	%		12/19/36		899,561		897,367
Invitation Homes Trust, Series 2018-SFR1, Class B (1MO LIBOR + 95) ^(a)(d)		1.086	%		03/17/37		6,700,000		6,644,546

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 49

Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Securitized — 84.8% continued
Single Family Rental — 3.5% continued
Invitation Homes Trust, Series 2018-SFR3, Class A (1MO LIBOR + 100) ^(a)(d)		1.153	%		07/17/37	$	11,705,697	$	11,705,695
Invitation Homes Trust, Series 2018-SFR3, Class E (1MO LIBOR + 200) ^(a)(d)		2.153	%		07/17/37		2,086,019		2,082,728
									39,881,412
Small Business — 5.6%
Credibly Asset Securitization LLC, Series 2018-1, Class A ^(d)		4.800	%		11/15/23		14,750,000		14,766,460
Kabbage Funding LLC, Series 2019-1, Class C ^(d)		4.611	%		03/15/24		2,058,751		2,058,543
Kabbage Funding LLC, Series 2019-1, Class D ^(d)		5.688	%		03/15/24		3,300,000		3,107,036
Newtek Small Business Loan Trust, Series 2018-1, Class A (1MO LIBOR + 170) ^(a)(d)		1.850	%		02/25/44		1,339,678		1,303,233
Newtek Small Business Loan Trust, Series 2018-1, Class B (1MO LIBOR + 300) ^(a)(d)		3.150	%		02/25/44		2,947,291		2,690,736
Newtek Small Business Loan Trust, Series 2019-01, Class A (1MO LIBOR + 165) ^(a)(d)		2.350	%		12/25/44		3,300,592		3,241,025
SFS Asset Securitization LLC, Series 2019-1, Class A ^(d)		4.238	%		06/10/25		7,400,000		7,397,861
SFS Asset Securitization LLC, Series 2019-1, Class B ^(d)		5.023	%		06/10/25		2,000,000		1,913,365
SFS Asset Securitization LLC, Series 2019-1, Class C ^(d)		6.390	%		06/10/25		746,000		682,389
Small Business Lending Trust, Series 2019-A, Class A ^(d)		2.850	%		07/15/26		1,068,776		1,065,864

	Coupon			Maturity		Shares / Par Value		Fair Value
Small Business — 5.6% continued
Small Business Lending Trust, Series 2019-A, Class B ^(d)		3.420	%		07/15/26	$	1,902,000	$	1,864,073
Small Business Lending Trust, Series 2019-A, Class C ^(d)		4.310	%		07/15/26		4,700,000		4,422,426
Small Business Lending Trust, Series 2019-A, Class D ^(d)		6.300	%		07/15/26		5,000,000		4,514,650
Small Business Lending Trust, Series 2020-A, Class A ^(d)		2.620	%		12/15/26		3,272,863		3,255,161
Small Business Lending Trust, Series 2020-A, Class B ^(d)		3.200	%		12/15/26		2,000,000		1,925,845
Small Business Lending Trust, Series 2020-A, Class C ^(d)		5.010	%		12/15/26		10,800,000		9,477,571
									63,686,238
Specialty — 0.4%
BTH Mortgage-Backed Securities Trust, Series 2018-13, Class A (1MO LIBOR + 250) ^(a)		2.650	%		08/01/21		4,000,000		3,984,295

Student Loan — 1.0%
College Ave Student Loans, Series 2018-A, Class B ^(d)		4.750	%		12/26/47		1,900,000		2,006,825
College Ave Student Loans, Series 2018-A, Class C ^(d)		5.500	%		12/26/47		900,000		947,429
College Ave Student Loans, Series 2019-A, Class C ^(d)		4.460	%		12/28/48		4,000,000		4,169,087
CommonBond Student Loan Trust, Series 2017-BGS, Class C ^(d)		4.440	%		09/25/42		138,595		144,949
Earnest Student Loan Program LLC, Series 2016-C, Class A-2 ^(d)		2.680	%		07/25/35		1,654,341		1,661,387

50 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Securitized — 84.8% continued
Student Loan — 1.0% continued
Earnest Student Loan Program LLC, Series 2016-C, Class A1 (1MO LIBOR + 185) ^(a)(d)		2.000	%		10/27/36	$	481,333	$	482,561
Earnest Student Loan Program LLC, Series 2016-D, Class R ^(d)(e)		0.000	%		01/25/41		5,000		70,000
Laurel Road Prime Student Loan, Series 2019-A, Class BFX ^(d)		3.000	%		10/25/48		1,842,378		1,880,462
									11,362,700
Unsecured Consumer — 19.4%
Avant Loans Funding Trust, Series 2020-REV1, Class A ^(d)		2.170	%		05/15/29		4,800,000		4,819,274
Consumer Lending Receivables Trust, Series 2019-A, Class CTF (PO) ^(d)(e)		0.000	%		04/15/26		150,000		2,147,777
Consumer Lending Receivables Trust, Series 2019-A, Class A ^(d)		3.520	%		04/15/26		275,307		276,468
Consumer Loan Bond Club Trust, Series 2018-P3, Class C ^(d)		5.540	%		01/15/26		3,000,000		3,007,567
Consumer Loan Underlying Bond Credit Trust, Series 2019-P1, Class C ^(d)		4.660	%		07/15/26		10,000,000		9,888,087
Consumer Loan Underlying Bond Credit Trust, Series 2019-P2, Class C ^(d)		4.410	%		10/15/26		5,573,000		5,586,494
Consumer Loan Underlying Bond Credit Trust, Series 2019-HP1, Class B ^(d)		3.480	%		12/15/26		5,000,000		5,066,034
Consumer Loan Underlying Bond Credit Trust, Series 2020-P1, Class C ^(d)		4.610	%		03/15/28		1,225,000		1,197,023

	Coupon			Maturity		Shares / Par Value		Fair Value
Unsecured Consumer — 19.4% continued
Freedom Financial, Series 2018-1, Class B ^(d)		4.560	%		07/18/24	$	4,564,476	$	4,570,750
Freedom Financial, Series 2018-2, Class A ^(d)		3.990	%		10/20/25		244,673		245,187
Freedom Financial, Series 2019-1, Class B ^(d)		3.870	%		06/18/26		2,836,403		2,865,072
Freedom Financial, Series 2019-2, Class C ^(d)		4.860	%		11/18/26		5,500,000		5,577,846
Freedom Financial, Series 2020-FP1, Class B ^(d)		3.060	%		03/18/27		4,000,000		4,062,964
Freedom Financial, Series 2020-FP1, Class C ^(d)		4.370	%		03/18/27		3,250,000		3,235,252
Freedom Financial, Series 2020-2CP, Class A ^(d)		4.520	%		06/18/27		2,201,250		2,225,526
Freedom Financial, Series 2020-3FP, Class A ^(d)		2.400	%		09/20/27		2,216,311		2,226,058
Freedom Financial, Series 2020-3FP, Class B ^(d)		4.180	%		09/20/27		4,000,000		4,095,696
Freedom Financial, Series 2020-3FP, Class C ^(d)		6.960	%		09/20/27		2,500,000		2,641,736
LendingPoint Asset Securitization Trust, Series 2019-1, Class B ^(d)		3.613	%		08/15/25		1,044,280		1,046,773
LendingPoint Asset Securitization Trust, Series 2019-1, Class C ^(d)		4.504	%		08/15/25		2,000,000		2,013,833
LendingPoint Asset Securitization Trust, Series 2019-2, Class A ^(d)		3.071	%		11/10/25		533,698		534,163
LendingPoint Asset Securitization Trust, Series 2019-2, Class B ^(d)		3.725	%		11/10/25		2,000,000		2,013,154
LendingPoint Asset Securitization Trust, Series 2019-2, Class C ^(d)		4.660	%		11/10/25		4,141,000		4,179,537
LendingPoint Asset Securitization Trust, Series 2020-1, Class B ^(d)		3.107	%		02/10/26		3,725,000		3,739,065

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 51

Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Securitized — 84.8% continued
Unsecured Consumer — 19.4% continued
Lendmark Funding Trust, Series 2020-2A, Class C ^(d)		4.690	%		04/21/31	$	1,000,000	$	1,015,531
LL ABS Trust, Series 2020-1, Class A ^(d)		2.330	%		07/15/22		5,912,295		5,984,053
LL ABS Trust, Series 2020-1, Class B ^(d)		3.790	%		03/15/23		1,650,000		1,707,087
LL ABS Trust, Series 2020-1, Class C ^(d)		6.540	%		11/15/23		2,200,000		2,312,356
LL ABS Trust, Series 2019-1, Class A ^(d)		2.870	%		03/15/27		1,782,161		1,790,266
LL ABS Trust, Series 2019-1, Class B ^(d)		3.520	%		03/15/27		5,550,000		5,568,868
LL ABS Trust, Series 2019-1, Class C ^(d)		5.070	%		03/15/27		4,500,000		4,509,009
Mariner Finance Issuance Trust, Series 2020-A, Class D ^(d)		5.750	%		08/21/34		8,000,000		8,046,855
Mariner Finance Issuance Trust, Series 2018-A, Class C ^(d)		5.110	%		11/20/30		2,750,000		2,798,944
Mariner Finance Issuance Trust, Series 2018-A, Class D ^(d)		6.570	%		11/20/30		4,725,000		4,850,623
Mariner Finance Issuance Trust, Series 2019-A, Class C ^(d)		4.010	%		07/20/32		2,120,000		2,145,935
Marlette Funding Trust, Series 2019-4, Class B ^(d)		2.950	%		12/17/29		760,000		773,859
Oportun Funding VIII LLC, Series 2018-A, Class B ^(d)		4.450	%		03/08/24		4,600,000		4,600,000
Oportun Funding VIII LLC, Series 2018-A, Class C ^(d)		5.090	%		03/08/24		1,225,000		1,225,000
Oportun Funding X LLC, Series 2018-C, Class B ^(d)		4.590	%		10/08/24		3,000,000		3,028,882
Oportun Funding X LLC, Series 2018-C, Class D ^(d)		6.790	%		10/08/24		4,472,000		4,527,019
Oportun Funding XII LLC, Series 2018-D, Class B ^(d)		4.830	%		12/09/24		2,900,000		2,952,019
Oportun Funding XII LLC, Series 2018-D, Class D ^(d)		7.170	%		12/09/24		4,000,000		4,075,754

	Coupon			Maturity		Shares / Par Value		Fair Value
Unsecured Consumer — 19.4% continued
Prosper Marketplace Issuance Trust, Series 2019-1A, Class B ^(d)		4.030	%		04/15/25	$	1,096,346	$	1,100,975
Prosper Marketplace Issuance Trust, Series 2019-3A, Class CERT ^(d)(e)		0.000	%		07/15/25		81,061,702		749,983
Prosper Marketplace Issuance Trust, Series 2019-3, Class B ^(d)		3.590	%		07/15/25		7,600,000		7,666,383
Prosper Marketplace Issuance Trust, Series 2019-4, Class B ^(d)		3.200	%		02/17/26		4,500,000		4,535,554
Prosper Marketplace Issuance Trust, Series 2019-4A, Class C ^(d)		4.950	%		02/17/26		7,886,000		7,880,402
Purchasing Power Funding, Series 2018-A, Class D ^(a)(d)		4.660	%		08/15/22		1,734,413		1,727,094
Regional Management Issuance Trust, Series 2019-1, Class C ^(d)		4.110	%		11/15/28		2,000,000		2,051,290
Regional Management Issuance Trust, Series 2020-1, Class A ^(d)		2.340	%		10/15/30		2,000,000		2,017,287
Regional Management Issuance Trust, Series 2020-1, Class B ^(d)		3.230	%		10/15/30		2,500,000		2,558,829
Upgrade Master Pass-Thru Trust, Series 2019-ST1, Class A ^(d)		4.000	%		07/15/25		2,592,596		2,615,202
Upgrade Master Pass-Thru Trust, Series 2019-ST3, Class A ^(d)		3.750	%		11/15/25		1,601,358		1,619,422

52 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Short Duration Securitized Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Securitized — 84.8% continued
Unsecured Consumer — 19.4% continued
Upgrade Receivables Trust, Series 2019-1, Class B ^(d)		4.090	%		03/15/25	$	257,780	$	258,010
Upstart Pass Through Trust, Series 20-ST6, Class A ^(d)		3.000	%		01/20/27		7,809,000		7,834,504
Upstart Pass-Through Trust, Series 2020-ST1, Class A ^(d)		3.750	%		02/20/28		3,153,398		3,199,975
Upstart Pass-Through Trust, Series 2020-ST2, Class A ^(d)		3.500	%		03/20/28		3,013,775		3,062,795
Upstart Pass-Through Trust, Series 2020-ST3, Class A ^(d)		3.350	%		04/20/28		3,697,171		3,762,222
Upstart Securitization Trust, Series 2019-1, Class B ^(d)		4.190	%		04/20/26		793,209		797,394
Upstart Securitization Trust, Series 2021-ST1, Class A ^(d)		2.750	%		02/20/27		3,000,000		3,000,456
Upstart Securitization Trust, Series 2019-2, Class A ^(d)		2.897	%		09/20/29		1,614,489		1,625,023
Upstart Securitization Trust, Series 2019-2, Class B ^(d)		3.734	%		09/20/29		12,325,000		12,584,426
Upstart Securitization Trust, Series 2019-2, Class C ^(d)		4.783	%		09/20/29		5,587,000		5,624,707
Upstart Securitization Trust, Series 2019-3, Class B ^(d)		3.829	%		01/21/30		4,500,000		4,628,658
									220,073,987

Total Securitized
(Cost $945,232,980)								$	960,478,006

	Shares		Fair Value
Registered Investment Companies — 13.7%
State Street Institutional Liquid Reserves Fund, Premier Class, 0.10% ^(f)		152,050,446	$	152,080,857
State Street Navigator Securities Lending Portfolio I, 0.17% ^(f)(g)		2,801,555		2,801,555
Total Registered Investment Companies
(Cost $154,779,238)			$	154,882,412

Total Investment Securities — 100.1%
(Cost $1,117,132,367)			$	1,133,124,199

Liabilities in Excess of Other Assets — (0.1)%				(658,268	)

Net Assets — 100.0%			$	1,132,465,931

^(a)

Variable rate security. The rate shown is the effective interest rate as of December 31, 2020. The benchmark on which the rate is calculated is shown parenthetically, if applicable. Certain variable rate securities are not based on a published rate and spread but are determined by the issuer or agent and may be based on index changes, prepayment of underlying positions and/or other variables. These securities do not indicate a reference rate and spread in their description above.

^(b)	All or a portion of the security is on loan. The total fair value of the securities on loan as of December 31, 2020 was $2,727,520.

^(c)	Percentage rounds to less than 0.1%.

^(d)

Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities have been deemed liquid under procedures approved by the Fund’s Board of Trustees and may normally be sold to qualified institutional buyers in transactions exempt from registration. The total fair value of these securities as of December 31, 2020 was $920,704,417, representing 81.3% of net assets.

^(e)	Illiquid security as determined under procedures approved by the Board of Trustees. The total fair value of these securities as of December 31, 2020 was $38,031,415, representing 3.4% of net assets.

^(f)	The rate shown is the 7-day effective yield as of December 31, 2020.

^(g)	This security was purchased with cash collateral from securities held on loan.

A/S — Aktieselskab

IO — Interest Only

LIBOR — London Interbank Offered Rate

NA — National Association

PO — Principal Only

SOFR — Secured Overnight Financing Rate

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 53

Diamond Hill Core Bond Fund
Schedule of Investments
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Corporate Credit — 15.6%
Banking — 5.4%
Bank of America Corp.		2.881	%		04/24/23	$	100,000	$	103,189
Bank of America Corp.		3.458	%		03/15/25		425,000		462,668
Bank of America Corp.		3.875	%		08/01/25		300,000		341,939
Bank of America Corp.		2.015	%		02/13/26		400,000		419,137
Bank of America Corp.		1.319	%		06/19/26		150,000		153,168
Bank of America Corp.		3.824	%		01/20/28		100,000		114,817
Bank of America Corp.		2.592	%		04/29/31		250,000		267,898
Bank of New York Mellon Corp. (The), Series MTN		1.850	%		01/27/23		200,000		206,233
Bank of New York Mellon Corp. (The)		3.000	%		10/30/28		100,000		113,017
Bank of Nova Scotia		1.950	%		02/01/23		130,000		134,249
Canadian Imperial Bank of Commerce		2.606	%		07/22/23		100,000		103,443
Capital One Financial Corp. ^(b)		2.600	%		05/15/23		200,000		209,650
Capital One Financial Corp.		3.750	%		07/28/26		100,000		113,344
Citigroup, Inc		1.678	%		05/15/24		500,000		515,055
Citigroup, Inc.		3.352	%		04/24/25		200,000		217,435
Citigroup, Inc. ^(b)		3.300	%		04/27/25		100,000		110,875
Citigroup, Inc. (3MO LIBOR + 125) ^(a)		1.475	%		07/01/26		100,000		101,670
Citigroup, Inc.		3.887	%		01/10/28		500,000		574,306
Citigroup, Inc. ^(b)		4.125	%		07/25/28		150,000		175,402
Citigroup, Inc.		2.976	%		11/05/30		180,000		198,133
Citigroup, Inc.		5.316	%		03/26/41		100,000		140,627
Citizens Financial Group		2.850	%		07/27/26		225,000		250,349
Comerica Bank, Series BKNT		2.500	%		07/23/24		250,000		265,821
Cooperative Rabobank UA ^(c)		2.625	%		07/22/24		250,000		267,302
Discover Bank		2.700	%		02/06/30		250,000		265,017
Discover Financial Services		4.100	%		02/09/27		100,000		115,168
Fifth Third Bancorp (1MO LIBOR + 170) ^(a)		2.375	%		01/28/25		275,000		292,606
First Tennessee Bank		5.750	%		05/01/30		250,000		290,937

	Coupon			Maturity		Shares / Par Value		Fair Value
Banking — 5.4% continued
Goldman Sachs Group, Inc. (3MO LIBOR + 111) ^(a)		1.325	%		04/26/22	$	50,000	$	50,138
Goldman Sachs Group, Inc.		3.500	%		01/23/25		205,000		226,211
Goldman Sachs Group, Inc.		3.500	%		04/01/25		250,000		278,005
Goldman Sachs Group, Inc.		3.500	%		11/16/26		350,000		392,915
Goldman Sachs Group, Inc.		1.093	%		12/09/26		250,000		252,510
Goldman Sachs Group, Inc. ^(b)		2.600	%		02/07/30		500,000		537,780
Huntington Bancshares, Inc.		2.625	%		08/06/24		125,000		133,557
JPMorgan Chase & Co. (3MO LIBOR + 100) ^(a)		1.237	%		01/15/23		100,000		100,827
JPMorgan Chase & Co.		0.653	%		09/16/24		150,000		150,784
JPMorgan Chase & Co.		4.023	%		12/05/24		550,000		605,851
JPMorgan Chase & Co.		1.045	%		11/19/26		500,000		505,534
JPMorgan Chase & Co.		3.782	%		02/01/28		100,000		114,957
JPMorgan Chase & Co.		3.509	%		01/23/29		100,000		114,040
JPMorgan Chase & Co.		2.739	%		10/15/30		100,000		108,820
JPMorgan Chase & Co.		2.522	%		04/22/31		750,000		805,700
KeyBank NA		0.423	%		01/03/24		500,000		500,551
KeyCorp ^(b)		2.550	%		10/01/29		385,000		416,769
Morgan Stanley		3.737	%		04/24/24		100,000		107,592
Morgan Stanley		3.700	%		10/23/24		100,000		111,328
Morgan Stanley		3.875	%		01/27/26		500,000		573,408
Morgan Stanley		3.125	%		07/27/26		100,000		111,981
Morgan Stanley		3.625	%		01/20/27		100,000		114,737
Morgan Stanley, Series GMTN		2.699	%		01/22/31		175,000		189,873
Morgan Stanley		1.794	%		02/13/32		500,000		502,788
PNC Bank NA ^(b)		1.743	%		02/24/23		250,000		253,856
PNC Bank NA		2.700	%		10/22/29		250,000		273,203
PNC Financial Services		2.600	%		07/23/26		250,000		274,391
Regions Financial Corp.		2.250	%		05/18/25		275,000		291,574
Royal Bank of Canada, Series GMTN		1.950	%		01/17/23		250,000		258,161
Royal Bank of Canada ^(b)		1.150	%		06/10/25		365,000		372,906
State Street Corp.		2.354	%		11/01/25		175,000		186,746

54 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Corporate Credit — 15.6% continued
Banking — 5.4% continued
Toronto-Dominion Bank (The) (SOFR + 48) ^(a)		0.570	%		01/27/23	$	425,000	$	426,592
Truist Financial Corp. ^(b)		2.150	%		12/06/24		250,000		264,911
US Bancorp		2.400	%		07/30/24		350,000		373,037
Wells Fargo & Co.		3.550	%		09/29/25		925,000		1,038,870
Wells Fargo & Co.		2.188	%		04/30/26		275,000		289,544
Wells Fargo & Co.		2.393	%		06/02/28		250,000		266,045
									18,099,947
Basic Industry — 0.5%
Air Products and Chemicals, Inc.		1.850	%		05/15/27		475,000		502,966
FMC Corp.		3.450	%		10/01/29		300,000		341,361
Nucor Corp.		2.000	%		06/01/25		250,000		264,702
PPG Industries, Inc.		2.400	%		08/15/24		110,000		116,501
PPG Industries, Inc. ^(b)		2.550	%		06/15/30		300,000		322,105
Sherwin-Williams Co.		2.300	%		05/15/30		250,000		260,929
									1,808,564
Brokerage Asset Managers Exchanges — 0.4%
Ameriprise Financial, Inc.		3.000	%		04/02/25		250,000		272,115
CBOE Holdings, Inc.		3.650	%		01/12/27		100,000		113,706
Charles Schwab Corp. (The)		0.900	%		03/11/26		500,000		506,566
Intercontinental Exchange, Inc. ^(b)		0.700	%		06/15/23		275,000		277,208
									1,169,595
Capital Goods — 0.4%
Carrier Global Corp.		2.700	%		02/15/31		250,000		268,450
General Electric Capital Corp.		6.750	%		03/15/32		300,000		420,373
L3 Harris Technologies, Inc.		3.850	%		12/15/26		50,000		57,875
Lennox International, Inc.		3.000	%		11/15/23		100,000		105,393
Republic Services, Inc.		2.500	%		08/15/24		200,000		213,541
Waste Management, Inc.		1.150	%		03/15/28		300,000		300,723
									1,366,355
Communications — 1.3%
American Tower Corp.		2.250	%		01/15/22		50,000		50,959

	Coupon			Maturity		Shares / Par Value		Fair Value
Communications — 1.3% continued
American Tower Corp.		3.800	%		08/15/29	$	100,000	$	116,207
American Tower Corp.		2.100	%		06/15/30		100,000		102,580
AT&T, Inc.		2.300	%		06/01/27		650,000		692,808
AT&T, Inc. ^(c)		2.550	%		12/01/33		114,000		117,224
AT&T, Inc.		4.500	%		05/15/35		100,000		121,257
British Telecommunications plc ^(c)		3.250	%		11/08/29		275,000		303,190
Comcast Corp.		3.950	%		10/15/25		750,000		861,482
Comcast Corp.		2.650	%		02/01/30		100,000		109,236
Comcast Corp.		1.950	%		01/15/31		250,000		257,075
Comcast Corp. ^(b)		3.969	%		11/01/47		144,000		180,050
Deutsche Telekom International Finance ^(c)		4.750	%		06/21/38		100,000		125,930
Twenty-First Century Fox, Inc.		4.030	%		01/25/24		50,000		55,060
Verizon Communications, Inc. (3MO LIBOR + 110) ^(a)(b)		1.321	%		05/15/25		100,000		102,685
Verizon Communications, Inc.		4.125	%		03/16/27		100,000		117,903
Verizon Communications, Inc.		3.000	%		03/22/27		120,000		132,876
Verizon Communications, Inc.		1.750	%		01/20/31		500,000		497,198
Verizon Communications, Inc. ^(b)(c)		2.987	%		10/30/56		143,000		143,643
Walt Disney Co. (The)		1.750	%		08/30/24		175,000		182,473
Walt Disney Co. (The)		3.800	%		03/22/30		100,000		119,119
									4,388,955
Consumer Cyclical — 0.9%
BMW US Capital, LLC ^(b)(c)		3.900	%		04/09/25		300,000		337,744
CVS Health Corp.		3.750	%		04/01/30		500,000		581,586
CVS Health Corp.		5.050	%		03/25/48		250,000		338,294
Daimler Finance LLC ^(b)(c)		1.750	%		03/10/23		275,000		282,319
Ford Motor Co. ^(b)		4.346	%		12/08/26		100,000		106,500
Ford Motor Co.		7.450	%		07/16/31		75,000		96,188
General Motors Financial Co., Inc.		3.200	%		07/06/21		35,000		35,376
General Motors Financial Co., Inc.		4.000	%		10/06/26		100,000		112,560

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 55

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Corporate Credit — 15.6% continued
Consumer Cyclical — 0.9% continued
Home Depot, Inc. (The)		3.500	%		09/15/56	$	100,000	$	124,768
Volkswagen AG ^(c)		2.500	%		09/24/21		200,000		202,979
Volkswagen Group America ^(c)		0.750	%		11/23/22		500,000		501,478
Walgreens Boots Alliance, Inc. ^(b)		3.200	%		04/15/30		250,000		271,434
									2,991,226
Consumer Non-Cyclical — 0.9%
Abbott Laboratories		4.750	%		11/30/36		100,000		137,651
AbbVie, Inc.		2.950	%		11/21/26		335,000		370,568
AbbVie, Inc.		4.550	%		03/15/35		100,000		126,380
Amgen, Inc.		2.650	%		05/11/22		140,000		144,324
Amgen, Inc. ^(b)		1.900	%		02/21/25		310,000		325,780
Anheuser-Busch Cos., LLC		4.700	%		02/01/36		100,000		126,841
Anheuser-Busch InBev SA/NV ^(b)		4.750	%		01/23/29		100,000		123,316
Anheuser-Busch InBev SA/NV ^(b)		3.500	%		06/01/30		600,000		694,650
Kimberly-Clark Corp.		3.950	%		11/01/28		100,000		119,809
Kroger Co. (The) ^(b)		2.650	%		10/15/26		100,000		109,202
Kroger Co. (The)		2.200	%		05/01/30		125,000		131,281
Zoetics, Inc., Series 4006		2.000	%		05/15/30		525,000		543,260
									2,953,062
Electric — 1.2%
Ameren Corp.		2.500	%		09/15/24		130,000		138,524
American Electric Power, Inc. ^(b)		1.000	%		11/01/25		500,000		505,838
Berkshire Hathaway Energy Corp. ^(c)		1.650	%		05/15/31		500,000		499,614
CMS Energy Corp.		2.950	%		02/15/27		100,000		108,596
DTE Energy Co., Series C ^(a)		2.529	%		10/01/24		150,000		159,797
DTE Energy Co., Series E		2.850	%		10/01/26		100,000		109,747
DTE Energy Co., Series H		2.950	%		03/01/30		125,000		136,380
Duke Energy Indiana LLC		2.750	%		04/01/50		370,000		383,996
Georgia Power Co., Series 2020-A		2.100	%		07/30/23		230,000		240,218
MidAmerican Energy Co.		3.650	%		04/15/29		350,000		415,513
Northern States Power Co. of Minnesota		2.900	%		03/01/50		125,000		140,673

	Coupon			Maturity		Shares / Par Value		Fair Value
Electric — 1.2% continued
Oncor Electric Delivery Co. LLC		3.750	%		04/01/45	$	490,000	$	597,539
PECO Energy Co.		3.000	%		09/15/49		200,000		220,192
PPL Electric Utilities		3.000	%		10/01/49		160,000		174,219
Public Service Electric & Gas Co.		2.250	%		09/15/26		100,000		107,983
Southwestern Electric Power		2.750	%		10/01/26		100,000		108,408
									4,047,237
Energy — 0.9%
BP Capital Markets plc		3.194	%		04/06/25		175,000		192,398
Chevron Corp.		1.995	%		05/11/27		500,000		530,030
Cimarex Energy Co.		3.900	%		05/15/27		100,000		110,174
Diamondback Energy, Inc.		3.250	%		12/01/26		200,000		213,484
Energy Transfer Operating LP		4.500	%		04/15/24		75,000		82,014
Exxon Mobil Corp.		2.992	%		03/19/25		240,000		262,632
Phillips 66 Partners LP		3.700	%		04/06/23		250,000		267,729
Phillips 66 Partners LP		2.450	%		12/15/24		100,000		104,867
Phillips 66 Partners LP ^(b)		3.550	%		10/01/26		100,000		109,536
Royal Dutch Shell plc		2.375	%		11/07/29		320,000		344,076
Shell International Finance BV		6.375	%		12/15/38		73,000		113,412
Suncor Energy, Inc.		2.800	%		05/15/23		300,000		315,634
Total Capital International SA ^(b)		2.829	%		01/10/30		120,000		134,399
Valero Energy Corp.		2.700	%		04/15/23		250,000		260,888
Valero Energy Corp.		3.400	%		09/15/26		100,000		109,618
									3,150,891
Insurance — 1.7%
Allstate Corp. ^(b)		0.750	%		12/15/25		1,000,000		1,004,822
Athene Global Funding ^(c)		2.500	%		01/14/25		225,000		235,652
Berkshire Hathaway Financial ^(b)		1.850	%		03/12/30		250,000		263,317
Jackson National Life Global Funding (3MO LIBOR + 48) ^(a)(c)		0.701	%		06/11/21		50,000		50,098
Jackson National Life Global Funding ^(c)		2.100	%		10/25/21		50,000		50,715
Lincoln National Corp.		3.625	%		12/12/26		100,000		115,395
Met Life Global Funding I ^(c)		1.950	%		01/13/23		200,000		206,337

56 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Corporate Credit — 15.6% continued
Insurance — 1.7% continued
Met Life Global Funding I ^(c)		0.900	%		06/08/23	$	250,000	$	253,153
New York Life Global Funding ^(c)		2.900	%		01/17/24		100,000		107,264
New York Life Global Funding ^(c)		2.350	%		07/14/26		50,000		53,376
New York Life Global Funding ^(c)		1.200	%		08/07/30		1,250,000		1,211,534
Pricoa Global Funding ^(b)(c)		3.450	%		09/01/23		160,000		172,638
Principal Life Global Funding II ^(c)		2.375	%		11/21/21		100,000		101,847
Principal Life Global Funding II ^(c)		1.250	%		06/23/25		525,000		535,861
Progressive Corp.		3.200	%		03/26/30		240,000		276,249
Protective Life Global Funding ^(b)(c)		1.737	%		09/21/30		1,100,000		1,104,851
									5,743,109
Natural Gas — 0.1%
Atmos Energy Corp.		2.625	%		09/15/29		310,000		340,409

Other Utility — 0.1%
American Water Capital Corp.		2.800	%		05/01/30		300,000		330,987

REITS — 0.9%
Alexandria Real Estate Equities, Inc.		3.950	%		01/15/28		100,000		116,109
American Campus Communities, Inc.		3.625	%		11/15/27		100,000		110,170
American Homes 4 Rent		4.250	%		02/15/28		100,000		114,936
Boston Properties LP		2.750	%		10/01/26		50,000		54,499
CubeSmart LP		3.125	%		09/01/26		50,000		54,993
CubeSmart LP ^(b)		3.000	%		02/15/30		280,000		306,015
CubeSmart LP		2.000	%		02/15/31		200,000		200,421
ERP Operating LP		2.850	%		11/01/26		100,000		110,597
ERP Operating LP		2.500	%		02/15/30		150,000		161,935
Life Storage LP		3.875	%		12/15/27		100,000		114,208
Realty Income Corp.		3.875	%		04/15/25		100,000		112,624
Realty Income Corp.		0.750	%		03/15/26		625,000		624,052
Realty Income Corp.		3.000	%		01/15/27		100,000		110,609
Simon Property Group LP		2.000	%		09/13/24		320,000		334,363
Spirit Realty LP		4.450	%		09/15/26		100,000		112,904
Spirit Realty LP		4.000	%		07/15/29		60,000		67,522

	Coupon			Maturity		Shares / Par Value		Fair Value
REITS — 0.9% continued
Spirit Realty LP		3.200	%		02/15/31	$	250,000	$	265,514
									2,971,471
Technology — 0.3%
Apple, Inc. ^(b)		3.000	%		06/20/27		100,000		111,977
Apple, Inc.		2.200	%		09/11/29		250,000		269,793
Apple, Inc.		1.650	%		05/11/30		300,000		308,802
Dell International LLC ^(b)(c)		5.300	%		10/01/29		100,000		122,467
Oracle Corp.		2.800	%		04/01/27		300,000		330,734
									1,143,773
Transportation — 0.6%
Alaska Airlines, Series 2020-1B, Class A ^(c)		4.800	%		08/15/27		150,000		165,197
American Airlines Pass-Through Trust, Series 2016-2, Class AA		3.200	%		12/15/29		364,275		355,172
CSX Corp.		4.250	%		11/01/66		100,000		133,548
FedEx Corp.		1.875	%		02/20/34		525,000		540,312
Kirby Corp.		4.200	%		03/01/28		100,000		110,868
Southwest Airlines Co. ^(b)		3.000	%		11/15/26		100,000		106,603
U.S. Airways Pass-Through Trust, Series 2011-1, Class A		7.125	%		04/22/25		32,384		29,734
United Airlines Pass-Through Trust, Series 2013-1, Class B		5.375	%		02/15/23		179,459		180,849
United Airlines Pass-Through Trust, Series 2007-1, Class A		6.636	%		01/02/24		26,658		27,196
United Airlines Pass-Through Trust, Series 2020-1, Class A		5.875	%		10/15/27		300,000		324,073
									1,973,552

Total Corporate Credit
(Cost $49,567,220)								$	52,479,133

Government Related — 0.4%
Government Guaranteed — 0.2%
Tunisian Republic		1.416	%		08/05/21		500,000		503,690

Government Owned, No Guarantee — 0.2%
Tennessee Valley Authority		4.625	%		09/15/60		525,000		826,249

Total Government Related
(Cost $1,273,858)								$	1,329,939

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 57

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Securitized — 63.4%
ABS-Other — 3.8%
BXG Receivables, Series 2018-A, Class C ^(c)		4.440	%		02/02/34	$	400,162	$	412,572
Diamond Resorts Owner Trust, Series 2019-1, Class B ^(c)		3.530	%		02/20/32		182,321		186,758
FMC GMSR Issuer Trust, Series 2019-GT2, Class A ^(c)		4.230	%		09/25/24		400,000		392,398
FMC GMSR Issuer Trust, Series 2020-GT1, Class A ^(a)(c)		4.450	%		01/25/26		1,000,000		999,476
Gold Key Resorts LLC, Series 2014-A, Class A ^(c)		3.220	%		03/17/31		20,043		20,235
GoodGreen Trust, Series 2017-1A, Class A ^(c)		3.740	%		10/15/52		79,464		83,778
GoodGreen Trust, Series 2020-1A, Class A ^(c)		2.630	%		04/15/55		439,549		449,823
Helios Issuer LLC, Series 2019-AA, Class A ^(c)		3.750	%		06/20/46		120,902		127,347
Helios Issuer LLC, Series 2020-4, Class A ^(c)		2.980	%		06/20/47		276,664		286,695
Hero Funding Trust, Series 2016-2A, Class A ^(c)		3.750	%		09/20/41		169,401		176,743
Hero Funding Trust, Series 2016-3A, Class A1 ^(c)		3.080	%		09/20/42		220,958		226,790
Hero Funding Trust, Series 2016-1R, Class A1 ^(c)		4.500	%		09/21/42		2,371		2,373
Hero Funding Trust, Series 2016-4A, Class A1 ^(c)		3.570	%		09/20/47		243,450		255,236
Hero Funding Trust, Series 2016-4B, Class B ^(c)		4.990	%		09/20/47		151,686		154,817
Hero Funding Trust, Series 2017-3A, Class A1 ^(a)(c)		3.190	%		09/20/48		211,106		217,448
Hero Funding Trust, Series 2018-1A, Class A2 ^(c)		4.670	%		09/20/48		83,882		89,810
Hilton Grand Vacations Trust, Series 2020-A, Class B ^(c)		4.220	%		02/25/39		409,564		440,023

	Coupon			Maturity		Shares / Par Value		Fair Value
ABS-Other — 3.8% continued
Holiday Inn Timeshare Trust, Series 2020-A, Class C ^(c)		3.420	%		10/09/39	$	671,694	$	694,262
Loanpal Solar Loan Ltd., Series 2020-3GS, Class B ^(c)		3.450	%		12/20/47		600,000		602,452
Loanpal Solar Loan Ltd., Series 2021-1GS, Class A ^(c)		2.290	%		01/20/48		750,000		754,380
Loanpal Solar Loan Ltd., Series 2021-1GS, Class B ^(c)		2.840	%		01/20/48		1,000,000		999,660
Mill City Solar Loan Ltd., Series 2019-2GS, Class A ^(c)		3.690	%		07/20/43		185,206		195,063
Mosaic Solar Loans LLC, Series 2018-1, Class A ^(c)		4.010	%		06/22/43		114,018		123,066
Mosaic Solar Loans LLC, Series 2017-2, Class B ^(c)		4.770	%		06/22/43		68,279		74,288
Mosaic Solar Loans LLC, Series 2020-1, Class A ^(c)		2.100	%		04/20/46		312,460		318,663
Ocwen Master Advance Receivables, Series 2020-T1, Class A-T1 ^(c)		1.300	%		08/15/52		670,000		671,391
PNMAC GMSR Issuer Trust, Series 2018-GT2, Class NT (1MO LIBOR + 265) ^(a)(c)		2.798	%		08/25/23		400,000		386,200
Renew Financial LLC, Series 2017-1, Class A ^(c)		3.670	%		09/20/52		94,307		97,170
Renew Financial LLC, Series 2017-1, Class B ^(a)(c)		5.750	%		09/20/52		42,887		43,984
Renew Financial LLC, Series 2017-2, Class A ^(c)		3.220	%		09/22/53		53,307		54,840
SPS Servicer Advance Receivables, Series 2020-T1, Class DT1 ^(c)		2.370	%		11/15/52		199,000		199,653
SPS Servicer Advance Receivables, Series 2020-T2, Class D ^(c)		3.160	%		11/15/55		494,000		498,429

58 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Securitized — 63.4% continued
ABS-Other — 3.8% continued
Sunnova Solar Issuer LLC, Series 2020-2A, Class A ^(c)		2.730	%		11/01/55	$	1,100,000	$	1,107,599
TES LLC, Series 2017-1, Class A ^(c)		4.330	%		10/20/47		286,854		294,529
Westgate Resorts, Series 2018-1, Class B ^(c)		3.580	%		12/20/31		97,709		97,230
Westgate Resorts, Series 2018-1, Class C ^(c)		4.100	%		12/20/31		97,709		96,748
Westgate Resorts, Series 2020-1, Class B ^(c)		3.963	%		03/20/34		178,728		184,686
Westgate Resorts, Series 2020-1A, Class C ^(c)		6.213	%		03/20/34		893,640		935,963
									12,952,578
Agency CMBS — 0.6%
FNMA, Series 2019-M21, Class 1A1		1.950	%		04/25/28		555,189		574,882
FNMA, Pool #FN 464107		4.820	%		12/01/29		129,410		150,574
FNMA, Pool #FN AM9491		3.550	%		08/01/30		174,166		202,844
FNMA, Pool #FN 469130 ^(a)		4.870	%		10/01/41		129,676		153,727
FNMA, Pool #FN AM5015 ^(a)		4.940	%		12/01/43		767,003		923,639
									2,005,666
Agency MBS CMO — 24.2%
FHLMA, Series 4847, Class CV		3.500	%		02/15/30		463,717		508,012
FHLMA, Series 4673, Class PH		3.500	%		01/15/45		612,081		641,732
FHLMA, Series 4531, Class PZ		3.500	%		11/15/45		1,306,692		1,437,690
FHLMC, Series 306, Class F3 (PO) (1MO LIBOR + 30) ^(a)		0.459	%		05/15/28		89,993		88,546
FHLMC, Series 2646, Class ZH		5.000	%		07/15/33		119,229		153,742
FHLMC, Series 4265, Class FD (1MO LIBOR + 40) ^(a)		0.559	%		01/15/35		362,461		364,533
FHLMC, Series 2006-71, Class ZH		6.000	%		07/25/36		421,473		500,651

	Coupon			Maturity		Shares / Par Value		Fair Value
Agency MBS CMO — 24.2% continued
FHLMC, Series 4613, Class AF (1MO LIBOR + 110) ^(a)		1.259	%		11/15/37	$	111,881	$	113,070
FHLMC, Series 3605, Class PB		4.500	%		11/15/39		100,000		111,998
FHLMC, Series 3617, Class PC		4.500	%		12/15/39		109,000		122,740
FHLMC, Series 3740, Class FC (1MO LIBOR + 50) ^(a)		0.659	%		10/15/40		157,712		158,906
FHLMC, Series 3759, Class ME		4.000	%		11/15/40		500,000		554,750
FHLMC, Series 3811, Class TA ^(a)		5.000	%		02/15/41		262,142		311,551
FHLMC, Series 3895, Class BF (1MO LIBOR + 50) ^(a)		0.659	%		07/15/41		123,293		124,367
FHLMC, Series 4116, Class UB		2.500	%		05/15/42		1,000,000		1,016,317
FHLMC, Series 4074, Class JY		2.500	%		07/15/42		475,000		500,845
FHLMC, Series 4165, Class ZT		3.000	%		02/15/43		405,553		405,803
FHLMC, Series 4180, Class ZB		3.000	%		03/15/43		666,139		667,875
FHLMC, Series 4210, Class Z		3.000	%		05/15/43		352,177		353,615
FHLMC, Series 4447, Class YZ		4.000	%		08/15/43		1,509,742		1,696,415
FHLMC, Series 4333, Class GL		3.500	%		04/15/44		250,000		289,804
FHLMC, Series 4408, Class BC		3.000	%		11/15/44		1,020,410		1,089,806
FHLMC, Series 4830, Class DA		4.500	%		11/15/44		57,927		58,380
FHLMC, Series 4731, Class EA		3.000	%		10/15/45		316,444		334,114
FHLMC, Series 4738, Class TW		3.000	%		11/15/46		1,385,000		1,512,515
FHLMC, Series 4857, Class H		4.000	%		11/15/46		471,592		499,050
FHLMC, Series 4736, Class CL		3.000	%		12/15/47		441,240		487,963
FHLMC, Series 4753, Class EZ		3.500	%		12/15/47		1,947,714		2,115,399
FHLMC, Series 4750, Class KZ		3.500	%		01/15/48		1,443,703		1,582,373
FHLMC, Series 4801, Class ZN		4.000	%		05/15/48		1,108,670		1,219,501
FHLMC, Series 4941, Class NW		2.500	%		05/25/49		758,520		778,803

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 59

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Securitized — 63.4% continued
Agency MBS CMO — 24.2% continued
FHLMC, Series 4911, Class JM		3.500	%		09/25/49	$	1,000,000	$	1,148,713
FHLMC, Series 5011, Class DB		2.000	%		09/25/50		262,000		244,444
FHLMC, Series 4377, Class KZ ^(a)		3.500	%		02/15/52		777,924		874,992
FNMA, Series 2010-155, Class JH		4.000	%		12/25/28		120,000		134,693
FNMA, Series 2013-35, Class YT		6.500	%		09/25/32		284,751		334,937
FNMA, Series 2012-129, Class HT		2.000	%		12/25/32		142,654		143,110
FNMA, Series 2002-86, Class PG		6.000	%		12/25/32		80,390		95,443
FNMA, Series 2004-56, Class Z		7.500	%		03/25/34		154,488		187,987
FNMA, Series 2004-17, Class BA		6.000	%		04/25/34		204,117		265,330
FNMA, Series 2005-3, Class CG		5.500	%		02/25/35		182,011		208,902
FNMA, Series 2005-62, Class ZL		5.500	%		07/25/35		333,037		382,579
FNMA, Series 2006-56, Class DC (1MO LIBOR + 65) ^(a)		0.798	%		07/25/36		132,832		133,418
FNMA, Series 2009-19, Class TD		5.000	%		08/25/36		111,716		126,952
FNMA, Series 2006-108, Class FD (1MO LIBOR + 38) ^(a)		0.528	%		11/25/36		160,909		162,405
FNMA, Series 2007-39, Class NB		4.250	%		05/25/37		156,395		170,573
FNMA, Series 2008-60, Class JC		5.000	%		07/25/38		242,900		278,118
FNMA, Series 2009-103, Class MB ^(a)		3.062	%		12/25/39		53,098		55,192
FNMA, Series 2010-2, Class LC		5.000	%		02/25/40		200,000		238,782
FNMA, Series 2011-14, Class PB		5.000	%		03/25/41		570,000		674,609
FNMA, Series 2011-57, Class PD		4.000	%		07/25/41		321,407		377,888
FNMA, Series 2011-62, Class UA		4.500	%		07/25/41		1,145,660		1,274,383
FNMA, Series 2012-9, Class FC (1MO LIBOR + 40) ^(a)		0.548	%		02/25/42		159,502		160,596
FNMA, Series 2013-34, Class GP		3.000	%		05/25/42		975,425		999,009
FNMA, Series 2012-56, Class WC		3.500	%		05/25/42		1,565,989		1,747,784

	Coupon			Maturity		Shares / Par Value		Fair Value
Agency MBS CMO — 24.2% continued
FNMA, Series 2012-79, Class QB		2.000	%		07/25/42	$	360,735	$	370,535
FNMA, Series 2012-84, Class JL		2.000	%		08/25/42		210,188		205,904
FNMA, Series 411, Class A3		3.000	%		08/25/42		54,402		57,508
FNMA, Series 2012-99, Class UY ^(a)		2.500	%		09/25/42		329,000		344,779
FNMA, Series 2016-32, Class GO (PO)		0.000	%		01/25/43		289,116		237,562
FNMA, Series 2013-35, Class LP		3.000	%		01/25/43		352,000		385,784
FNMA, Series 2013-6, Class QA		2.500	%		02/25/43		815,575		820,061
FNMA, Series 2013-35, Class CV		3.000	%		02/25/43		350,000		385,654
FNMA, Series 2013-13, Class WH		3.500	%		03/25/43		600,000		625,798
FNMA, Series 2013-31, Class NT		3.000	%		04/25/43		121,749		123,217
FNMA, Series 2013-54, Class HQ		3.000	%		06/25/43		14,385		14,393
FNMA, Series 2013-104, Class CY		5.000	%		10/25/43		250,000		313,320
FNMA, Series 2013-115, Class PB		4.500	%		11/25/43		300,000		372,483
FNMA, Series 2015-11, Class MZ		4.000	%		12/25/43		4,593,555		5,211,264
FNMA, Series 2014-2, Class PB		4.000	%		02/25/44		1,001,928		1,052,175
FNMA, Series 4473, Class Z		3.000	%		05/15/45		378,271		411,499
FNMA, Series 2017-16, Class UW		3.000	%		07/25/45		2,044,494		2,256,268
FNMA, Series 2016-68, Class AL		3.000	%		10/25/46		850,000		932,765
FNMA, Series 2017-04, Class ZC		3.500	%		02/25/47		2,866,737		3,089,905
FNMA, Series 2017-77, Class HZ		3.500	%		10/25/47		1,964,808		2,072,539
FNMA, Series 2017-90, Class ZD		3.500	%		11/25/47		2,234,057		2,378,869
FNMA, Series 2018-08, Class DZ		3.500	%		02/25/48		1,107,311		1,172,536
FNMA, Series 2018-31, Class KQ		3.500	%		05/25/48		847,826		916,851
FNMA, Series 2018-66, Class PZ		4.000	%		09/25/48		526,170		624,655
FNMA, Series 2019-01, Class MH		3.000	%		02/25/49		571,715		602,028
FNMA, Series 2019-8, Class ZD		3.500	%		03/25/49		533,085		619,077

60 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Securitized — 63.4% continued
Agency MBS CMO — 24.2% continued
FNMA, Series 2019-40, Class PL		4.000	%		07/25/49	$	318,000	$	366,913
FNMA, Series 2019-60, Class WZ		2.750	%		10/25/49		542,029		561,546
FNMA, Series 2019-83, Class EB		2.000	%		01/25/50		171,000		161,898
FNMA, Series 2020-15, Class KY		3.000	%		03/25/50		2,077,414		2,245,966
GNMA, Series 2015-161, Class AV		3.000	%		01/20/29		415,484		441,995
GNMA, Series 2018-139, Class DV		3.500	%		01/20/30		501,795		529,472
GNMA, Series 2004-49, Class MZ		6.000	%		06/20/34		383,898		458,525
GNMA, Series 2005-13, Class BG		5.000	%		02/20/35		290,000		326,868
GNMA, Series 2015-123, Class VB		3.500	%		09/20/35		100,000		107,385
GNMA, Series 2006-17, Class JN		6.000	%		04/20/36		245,561		282,894
GNMA, Series 2008-51, Class PH		5.250	%		06/20/38		151,869		169,316
GNMA, Series 2009-2, Class PA		5.000	%		12/20/38		113,527		124,839
GNMA, Series 2010-9, Class FA (1MO LIBOR + 52) ^(a)		0.673	%		01/16/40		157,575		158,599
GNMA, Series 2010-105, Class ZC		4.500	%		08/16/40		477,189		555,859
GNMA, Series 2013-22, Class GA ^(a)		2.500	%		10/20/41		36,847		37,770
GNMA, Series 2012-74, Class LY ^(a)		2.500	%		06/20/42		318,000		329,298
GNMA, Series 2012-134, Class KM		2.000	%		09/20/42		342,000		340,024
GNMA, Series 2012-113, Class NZ ^(a)		4.500	%		09/20/42		263,634		280,874
GNMA, Series 2012-143, Class EG		2.000	%		12/20/42		657,458		662,730
GNMA, Series 2013-6, Class PE		2.000	%		01/20/43		100,000		98,577
GNMA, Series 2013-5, Class GY		3.000	%		01/20/43		437,000		489,320

	Coupon			Maturity		Shares / Par Value		Fair Value
Agency MBS CMO — 24.2% continued
GNMA, Series 2015-179, Class ZB		2.500	%		02/20/45	$	55,851	$	57,569
GNMA, Series 2016-37, Class YA		3.000	%		12/20/45		1,052,893		1,174,249
GNMA, Series 2016-38, Class ZP		3.500	%		03/20/46		70,835		79,228
GNMA, Series 2016-74, Class PL		3.000	%		05/20/46		1,348,000		1,413,232
GNMA, Series 2016-111, Class HA		2.500	%		08/20/46		136,161		136,017
GNMA, Series 2016-118, Class LB		3.000	%		09/20/46		1,000,000		1,076,522
GNMA, Series 2017-080, Class BZ		3.500	%		05/20/47		396,695		446,685
GNMA, Series 2018-006, Class JY		2.750	%		01/20/48		284,000		284,481
GNMA, Series 2018-14, Class MZ		3.000	%		01/20/48		376,506		386,147
GNMA, Series 2018-120, Class PY		3.500	%		09/20/48		689,379		742,427
GNMA, Series 2019-22, Class WD		3.000	%		02/20/49		113,611		114,148
GNMA, Series 2019-20, Class JK		3.500	%		02/20/49		302,687		322,903
GNMA, Series 2019-031, Class AZ		5.000	%		03/20/49		314,649		364,814
GNMA, Series 2019-052, Class HL		4.000	%		04/20/49		490,565		548,055
GNMA, Series 2019-86, Class WL		3.000	%		07/20/49		500,000		559,672
GNMA, Series 2019-99, Class EW		3.000	%		08/20/49		540,446		598,393
GNMA, Series 2019-99, Class GP		3.500	%		08/20/49		517,000		576,320
GNMA, Series 2019-162, Class GB		3.000	%		12/20/49		450,000		473,946
GNMA, Series 2020-011, Class KB		2.500	%		01/20/50		788,000		789,448
GNMA, Series 2020-015, Class HL		2.500	%		02/20/50		1,385,112		1,432,369

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 61

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Securitized — 63.4% continued
Agency MBS CMO — 24.2% continued
GNMA, Series 2020-093, Class AZ		3.000	%		04/20/50	$	786,761	$	842,934
GNMA, Series 2020-078, Class B		2.500	%		06/20/50		350,000		361,628
GNMA, Series 2020-097, Class ML		2.500	%		07/20/50		1,975,000		2,081,792
GNMA, Series 2020-133, Class HZ		3.500	%		09/20/50		889,743		881,659
GNMA, Series 2017-H18, Class EB (12MO LIBOR + 22) ^(a)		4.159	%		06/20/63		380,589		395,705
GNMA, Series 2014-H15, Class FA (1MO LIBOR + 50) ^(a)		0.640	%		07/20/64		462,609		463,931
GNMA, Series 2016-H11, Class FD (12MO LIBOR + 40) ^(a)		1.402	%		05/20/66		265,181		266,516
GNMA, Series 2017-H16, Class DB ^(a)		4.587	%		08/20/67		279,205		290,797
									81,711,389
Agency MBS CMO Derivatives — 3.5%
FHLMC, Series 3919, Class QS (IO) (-1*1MO LIBOR + 670) ^(a)		6.541	%		08/15/30		2,367,111		340,854
FHLMC, Series 4214, Class CI (IO)		3.000	%		06/15/31		1,079,065		37,808
FHLMC, Series 4114, Class IM (IO)		3.500	%		07/15/31		1,746,797		85,373
FHLMC, Series 4169, Class SA (-1.2*1MO LIBOR + 546) ^(a)		5.281	%		02/15/33		1,067,923		1,144,615
FHLMC, Series 226, Class PO (PO)		0.000	%		02/01/34		178,139		166,992
FHLMC, Series 3107, Class DC (IO) (-1*1MO LIBOR + 670) ^(a)		6.541	%		06/15/35		2,870,494		216,788
FHLMC, Series 3102, Class TA (IO)		7.500	%		01/15/36		267,133		308,307

	Coupon			Maturity		Shares / Par Value		Fair Value
Agency MBS CMO Derivatives — 3.5% continued
FHLMC, Series 3607, Class AO (PO)		0.000	%		04/15/36	$	118,973	$	109,433
FHLMC, Series 237, Class S14 (IO) (-1*1MO LIBOR + 660) ^(a)		6.441	%		05/15/36		502,081		101,715
FHLMC, Series 3199, Class OC (PO)		0.000	%		08/15/36		186,756		173,746
FHLMC, Series 379, Class I (PO)		0.000	%		05/25/37		66,299		62,149
FHLMC, Series 3607, Class OP (PO)		0.000	%		07/15/37		394,323		359,465
FHLMC, Series 4006, Class IA (IO)		4.500	%		09/15/41		715,477		77,595
FHLMC, Series 4116, Class LI (IO)		4.500	%		02/15/42		2,436,252		308,583
FHLMC, Series 4074, Class SJ (IO) (-1*1MO LIBOR + 662) ^(a)		6.461	%		07/15/42		1,328,315		308,178
FHLMC, Pool #S0-6050 (PO)		0.000	%		08/15/42		308,777		281,752
FHLMC, Pool#S0-6829 (PO)		0.000	%		09/15/43		481,008		431,084
FNMA, Series 2012-128, Class EI (IO)		3.500	%		11/25/27		565,713		38,104
FNMA, Series 2012-148, Class IA (IO)		4.000	%		01/25/28		301,621		24,815
FNMA, Series 2004-91, Class SP (-2.40*1MO LIBOR + 1680) ^(a)		16.445	%		11/25/31		256,590		360,388
FNMA, Series 2004-61, Class GO (PO)		0.000	%		11/25/32		572,723		544,985
FNMA, Series 2013-89, Class DI (IO)		4.000	%		08/25/33		2,611,446		273,280
FNMA, Series 348, Class II (IO)		6.000	%		01/25/34		107,435		23,254
FNMA, Series 2015-82, Class AI (IO)		3.500	%		06/25/34		1,442,262		119,245
FNMA, Series 2016-28, Class DI (IO)		3.500	%		03/25/35		1,397,274		123,756
FNMA, Series 384, Class 11 (IO)		5.000	%		03/25/35		895,571		148,839
FNMA, Series 2005-52, Class JH (IO) (-1*1MO LIBOR + 660) ^(a)		6.452	%		05/25/35		489,067		79,678

62 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Securitized — 63.4% continued
Agency MBS CMO Derivatives — 3.5% continued
FNMA, Series 378, Class (IO)		5.000	%		06/01/35	$	915,953	$	150,768
FNMA, Series 2016-24, Class KI (IO)		3.500	%		07/25/35		668,063		66,713
FNMA, Series 368, Class (IO)		5.000	%		02/01/36		766,771		103,187
FNMA, Series 2006-96, Class MO (PO)		0.000	%		10/25/36		62,627		60,270
FNMA, Series 398, Class C5 (IO)		5.000	%		05/25/39		1,063,571		180,842
FNMA, Series 2013-120, Class JI (IO)		4.000	%		02/25/40		547,317		20,263
FNMA, Series 2010-44, Class CS (IO) (-1*1MO LIBOR + 655) ^(a)		6.402	%		05/25/40		97,502		16,192
FNMA, Series 2012-63, Class NI (IO)		4.000	%		06/25/40		1,751,763		82,691
FNMA, Series 2011-14, Class PI (IO)		5.000	%		06/25/40		89,577		4,204
FNMA, Series 2012-100, Class MI (IO)		4.500	%		12/25/40		507,641		27,946
FNMA, Series 409, Class C1		4.000	%		04/01/42		1,821,475		266,421
FNMA, Series 2012-128, Class SH (1MO LIBOR + 400) ^(a)		3.852	%		11/25/42		520,870		513,384
FNMA, Series 2016-30, Class IN (IO)		3.500	%		02/25/43		2,976,841		202,246
FNMA, Series 2003-W10, Class 3IO (IO) ^(a)		0.639	%		06/25/43		12,482,766		222,601
FNMA, Series 2013-82, Class SB (-2.67*1MO LIBOR + 1173) ^(a)		11.336	%		08/25/43		350,236		502,938
FNMA, Series 2013-101, Class DO (PO)		0.000	%		10/25/43		168,708		153,021
FNMA, Series 2014-42, Class SN (IO) (-1*1MO LIBOR + 605) ^(a)		5.902	%		07/25/44		700,166		136,131
FNMA, Series 2019-31, Class CI (IO)		4.000	%		02/25/47		2,344,516		160,119
GNMA, Series 2010-47, Class PX (IO) (-1*1MO LIBOR + 670) ^(a)		6.548	%		06/20/37		897,272		190,135
GNMA, Series 2012-146, Class AI (IO)		3.000	%		10/20/37		2,242,706		100,963

	Coupon			Maturity		Shares / Par Value		Fair Value
Agency MBS CMO Derivatives — 3.5% continued
GNMA, Series 2008-38, Class ID (IO)		6.000	%		03/20/38	$	353,059	$	25,876
GNMA, Series 2013-124, Class ES (-1.333 * 1MO LIBOR + 866.7) ^(a)		8.464	%		04/20/39		46,854		49,016
GNMA, Series 2011-21, Class SA (IO) (-1*1MO LIBOR + 600) ^(a)		5.847	%		02/16/41		2,772,455		570,190
GNMA, Series 2011-145, Class QI (IO)		5.000	%		11/16/41		247,233		37,504
GNMA, Series 2013-113, Class QS (IO) (-1*1MO LIBOR + 620) ^(a)		6.048	%		02/20/42		729,961		127,123
GNMA, Series 2014-141, Class IE (IO)		4.000	%		08/20/43		311,783		11,356
GNMA, Series 2017-004, Class WI (IO)		4.000	%		02/20/44		2,017,446		169,601
GNMA, Series 2016-32, Class MS (IO) (-1*1MO LIBOR + 605) ^(a)		5.898	%		03/20/46		2,611,330		493,560
GNMA, Series 2019-98, Class BI (IO)		3.000	%		06/20/49		847,484		282,357
GNMA, Series 2019-120, Class DI (IO)		3.500	%		08/20/49		3,506,280		444,343
GNMA, Series 2012-H02, Class AI (IO) ^(a)		1.911	%		01/20/62		173,127		7,194
GNMA, Series 2013-H13, Class T1 (IO) ^(a)		0.471	%		05/20/63		2,072,683		31,129
GNMA, Series 2016-H20, Class GI (IO) ^(a)		0.372	%		08/20/66		1,875,783		19,344
GNMA, Series 2017-H11, Class PI (IO) ^(a)		3.861	%		04/20/67		90,658		1,819
GNMA, Series 2017-H22, Class ID (IO) ^(a)		3.854	%		11/20/67		47,265		2,919
GNMA, Series 2018-H08, Class NI (IO) ^(a)		0.822	%		05/20/68		1,247,810		30,814
									11,715,961

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 63

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Securitized — 63.4% continued
Agency MBS Passthrough — 2.9%
FHLMC, Pool #FG G14973		4.000	%		12/01/28	$	183,732	$	201,471
FHLMC, Pool #FG U59010		4.000	%		11/01/34		253,730		273,439
FHLMC, Pool #G61909		4.500	%		12/01/37		651,713		719,173
FHLMC, Pool #FG G06085		6.500	%		09/01/38		77,287		88,461
FNMA, Pool #FN 252409		6.500	%		03/01/29		103,326		115,166
FNMA, Pool #FN AL5850		3.500	%		10/01/29		148,475		158,834
FNMA, Pool #FN AS7287		3.500	%		06/01/31		718,094		786,315
FNMA, Pool #FN AL3200		3.500	%		02/01/33		523,081		563,704
FNMA, Pool #FN AT7120		3.500	%		06/01/33		603,540		650,300
FNMA, Pool #FN AL5166		3.000	%		11/01/33		423,178		447,270
FNMA, Pool #FN AL6685		4.000	%		01/01/35		252,082		271,604
FNMA, Pool #FN MA2198		3.500	%		03/01/35		484,019		523,160
FNMA, Pool #FN BM1486		4.000	%		03/01/35		1,548,755		1,693,157
FNMA, Pool #FN MA3050		4.500	%		06/01/37		1,046,667		1,153,862
FNMA, Pool #FN AS4073		4.000	%		12/01/44		249,479		280,851
FNMA, Pool #FN MA2778		3.500	%		10/01/46		274,154		285,839
GNMA, Pool #MA5738M		4.000	%		02/20/34		461,697		489,459
GNMA, Pool #GN 784279		5.500	%		11/15/38		473,403		548,493
GNMA, Pool #711522X		4.500	%		07/15/40		334,260		399,914
GNMA, Pool #GN 78541		4.500	%		06/15/46		204,426		228,868
									9,879,340
ARM — 0.0% ^(d)
Structured Asset Securities Corp., Series 2003-37A, Class 2-A ^(a)		2.501	%		12/25/33		11,071		10,872

Auto Loan — 5.7%
American Credit Acceptance Receivables Trust, Series 2017-1, Class E ^(c)		5.440	%		03/13/24		100,000		100,140

	Coupon			Maturity		Shares / Par Value		Fair Value
Auto Loan — 5.7% continued
American Credit Acceptance Receivables Trust, Series 2018-3, Class D ^(c)		4.140	%		10/15/24	$	480,000	$	491,125
American Credit Acceptance Receivables Trust, Series 2020-3, Class D ^(c)		2.400	%		06/15/26		300,000		310,153
Arivo Acceptance Auto Loan Receivables Trust, Series 2019-1, Class A ^(c)		2.990	%		07/15/24		87,734		88,837
Carvana Auto Receivable Trust, Series 2020-P1, Class C		1.320	%		11/09/26		500,000		501,078
Carvana Auto Receivable Trust, Series 2020-P1, Class D		1.820	%		09/08/27		400,000		403,394
Chase Credit Linked Notes, Series 2020-2, Class C ^(c)		1.140	%		02/25/28		400,000		400,552
CIG Auto Receivables Trust, Series 2020-1, Class D ^(c)		2.350	%		01/12/26		300,000		302,116
CIG Auto Receivables Trust, Series 2020-1, Class C ^(c)		1.750	%		02/12/26		460,000		461,927
CPS Auto Receivables Trust, Series 2020-C, Class D ^(c)		2.410	%		11/16/26		400,000		413,148
CPS Auto Trust, Series 2017-D, Class C ^(c)		3.010	%		10/17/22		17,194		17,227
CPS Auto Trust, Series 2017-D, Class D ^(c)		3.730	%		09/15/23		260,000		264,835
CPS Auto Trust, Series 2019-C, Class C ^(c)		2.840	%		06/16/25		250,000		255,386
Credit Acceptance Auto Loan Trust, Series 2020-3A, Class C ^(c)		2.280	%		02/15/30		550,000		558,518
Credit Acceptance Auto Trust, Series 2019-3, Class C ^(c)		3.060	%		03/15/29		400,000		415,374

64 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Securitized — 63.4% continued
Auto Loan — 5.7% continued
Drive Auto Receivables Trust, Series 2020-2, Class C		2.280	%		08/17/26	$	1,118,000	$	1,154,202
Drive Auto Receivables Trust, Series 2020-1, Class D		2.700	%		05/17/27		500,000		518,430
DT Auto Owner Trust, Series 2019-2, Class D ^(c)		3.480	%		02/18/25		195,000		202,405
DT Auto Owner Trust, Series 2019-3, Class D ^(c)		2.960	%		04/15/25		285,000		294,631
DT Auto Owner Trust, Series 2020-2, Class E ^(c)		4.730	%		03/16/26		300,000		327,092
Exeter Automobile Receivables Trust, Series 2020-2, Class D ^(c)		4.730	%		04/15/26		300,000		325,905
FHF Trust, Series 2020-1, Class A ^(c)		2.590	%		12/15/23		571,906		575,759
Foursight Capital Automobile Receivables, Series 2018-2, Class E ^(c)		5.500	%		10/15/24		750,000		793,871
GLS Auto Receivables Trust, Series 2020-4A, Class D ^(c)		1.640	%		10/15/26		600,000		610,655
Hertz Fleet Lease Funding LP, Series 2017-1, Class C ^(c)		3.140	%		04/10/31		1,565,000		1,565,987
Hertz Fleet Lease Funding LP, Series 2017-1, Class E ^(c)		5.800	%		04/10/31		1,000,000		1,006,619
Hertz Fleet Lease Funding LP, Series 2018-1, Class D ^(c)		4.170	%		05/10/32		300,000		301,921
Hertz Fleet Lease Funding LP, Series 2018-1, Class E ^(c)		5.550	%		05/10/32		600,000		604,794
Hertz Fleet Lease Funding LP, Series 2019-1, Class A1 (1MO LIBOR + 47) ^(a)(c)		0.619	%		01/10/33		273,698		274,391
Hertz Fleet Lease Funding LP, Series 2019-1, Class E ^(c)		4.620	%		01/10/33		100,000		101,908

	Coupon			Maturity		Shares / Par Value		Fair Value
Auto Loan — 5.7% continued
Navistar Financial Dealer Note Master Trust, Series 2019-1, Class D (1MO LIBOR + 145) ^(a)(c)		1.598	%		05/28/24	$	285,000	$	285,213
OneMain Direct Auto Receivables, Series 2018-1, Class B ^(c)		3.710	%		04/14/25		300,000		306,422
OSCAR US Funding Trust, Series 2019-11, Class A-4 ^(c)		2.680	%		09/10/26		145,000		152,028
Santander Consumer Auto Receivables, Series 2020-B, Class D ^(c)		2.140	%		12/15/26		400,000		406,224
Santander Drive Auto Trust, Series 2019-3, Class D		2.680	%		10/15/25		545,000		560,137
Skopos Auto Receivables Trust, Series 2019-1, Class A ^(c)		2.900	%		12/15/22		79,834		80,153
Skopos Auto Receivables Trust, Series 2019-1, Class B ^(c)		3.430	%		09/15/23		600,000		607,166
Tesla Auto Lease Trust, Series 2018-B, Class D ^(c)		5.290	%		11/22/21		250,000		255,973
Tesla Auto Lease Trust, Series 2019-A, Class C ^(c)		2.680	%		01/20/23		700,000		720,004
Tesla Auto Lease Trust, Series 2019-A, Class D ^(c)		3.370	%		01/20/23		350,000		362,850
Tesla Auto Lease Trust, Series 2020-A, Class D ^(c)		2.330	%		02/20/24		250,000		255,998
Westlake Auto Receivables Trust, Series 2019-3, Class D ^(c)		2.720	%		11/15/24		523,000		537,114
Westlake Auto Receivables Trust, Series 2019-2, Class D ^(c)		3.200	%		11/15/24		375,000		388,140
Westlake Auto Receivables Trust, Series 2020-1, Class C ^(c)		2.520	%		04/15/25		300,000		308,186

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 65

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Securitized — 63.4% continued
Auto Loan — 5.7% continued
Westlake Auto Receivables Trust, Series 2020-2, Class D ^(c)		2.760	%		01/15/26	$	280,000	$	289,563
									19,157,551
Conduit — 0.0% ^(d)
WF-RBS Commercial Mortgage Trust, Series 2011-C2, Class D ^(a)(c)		5.631	%		02/15/44		26,414		26,341

CRE/CLO — 4.3%
A10 Securitization, Series 2020-C, Class B ^(c)(e)		2.617	%		08/15/40		300,000		299,947
A10 Securitization, Series 2020-C, Class D ^(c)(e)		4.129	%		08/15/40		250,000		249,600
A10 Securitization, Series 2020-C, Class E ^(c)(e)		5.465	%		08/15/40		250,000		249,352
A10 Securitization, Series 2020-C, Class A ^(c)(e)		2.021	%		09/15/50		279,358		279,340
Bancorp Commercial Mortgage Trust (The), Series 2017-CRE2, Class C (1MO LIBOR + 235) ^(a)(c)		2.491	%		08/15/32		250,000		242,470
Bancorp Commercial Mortgage Trust (The), Series 2018-CR3, Class D (1MO LIBOR + 270) ^(a)(c)		2.859	%		03/16/35		324,000		313,891
Bancorp Commercial Mortgage Trust (The), Series 2019-CRE6, Class A (1MO LIBOR + 105) ^(a)(c)		1.191	%		09/17/36		398,224		397,216
Bancorp Commercial Mortgage Trust (The), Series 2019-CRE5, Class A (1MO LIBOR + 100) ^(a)(c)		1.159	%		03/17/36		333,715		331,998

	Coupon			Maturity		Shares / Par Value		Fair Value
CRE/CLO — 4.3% continued
BSPRT Issuer Ltd., Series 2018-FL3, Class A (1MO LIBOR + 105) ^(a)(c)		1.209	%		03/15/28	$	592,371	$	590,319
BSPRT Issuer Ltd., Series 2018-FL4, Class A (1MO LIBOR + 105) ^(a)(c)		1.209	%		09/17/35		879,646		874,768
BXMT Ltd, Series 2020-FL2, Class C (1MO LIBOR + 165) ^(a)(c)		1.793	%		02/18/38		225,000		221,637
BXMT Ltd., Series 2017-FL1, Class B (1MO LIBOR + 150) ^(a)(c)		1.644	%		06/15/35		275,000		274,492
BXMT Ltd., Series 2017-FL1, Class D (1MO LIBOR + 275) ^(a)		2.852	%		06/15/35		1,000,000		997,519
BXMT Ltd., Series 2020-FL2, Class A (1MO LIBOR + 90) ^(a)(c)		1.043	%		02/16/37		425,000		422,097
BXMT Ltd., Series 2020-FL2, Class D (1MO LIBOR + 195) ^(a)(c)		2.094	%		02/16/37		625,000		614,099
BXMT Ltd., Series 2020-FL2, Class B (1MO LIBOR + 140) ^(a)(c)		1.552	%		02/18/38		1,000,000		986,301
Exantas Capital Corp., Series 2019-RS07, Class A (1MO LIBOR + 100) ^(a)(c)		1.153	%		04/15/22		800,848		790,656
Exantas Capital Corp., Series 2020-RS09, Class D (1MO LIBOR + 550) ^(a)(c)(e)		5.653	%		04/17/37		374,220		376,969
FHLMC, Series 2020-FL3, Class B (1MO LIBOR + 375) ^(a)(c)		3.891	%		07/15/35		300,000		303,925
FHLMC, Series 2020-FL3, Class A-S (1MO LIBOR + 285) ^(a)(c)		2.991	%		07/16/35		800,000		808,473
KKR Real Estate Finance Trust, Inc., Series 2018-FL1, Class A (1MO LIBOR + 110) ^(a)(c)		1.253	%		06/15/36		1,000,000		998,161

66 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Securitized — 63.4% continued
CRE/CLO — 4.3% continued
Multi Family Housing Mortgage Loan, Series 2019-FL2, Class A (1MO LIBOR + 113) ^(a)(c)		1.280	%		11/27/34	$	300,000	$	297,200
Multi Family Housing Mortgage Loan, Series 2019-FL2, Class C (1MO LIBOR + 200) ^(a)(c)		2.150	%		12/25/34		300,000		289,160
Multi Family Housing Mortgage Loan, Series 2020-FL4, Class A (1MO LIBOR +170) ^(a)(c)		1.859	%		11/15/35		600,000		600,516
PFP Ltd., Series 2019-5, Class B (1MO LIBOR + 165) ^(a)(c)		1.803	%		04/16/36		650,000		633,820
ReadyCap Commercial Mortgage Trust, Series 2020-FL4, Class A (1MO LIBOR + 215) ^(a)(c)		2.300	%		02/25/35		999,990		1,005,473
ReadyCap Commercial Mortgage Trust, Series 2018-FL2, Class D (1MO LIBOR + 270) ^(a)(c)(e)		2.848	%		06/25/35		188,000		182,817
TPG Real Estate Finance, Series 2019-FL3, Class A (1MO LIBOR + 115) ^(a)(c)		1.294	%		10/15/34		600,000		591,208
VMC Finance LLC, Series 2018-FL2, Class A (1MO LIBOR + 92) ^(a)(c)		1.073	%		10/15/35		159,347		158,595
									14,382,019
Credit Cards — 1.4%
Continental Credit Card LLC, Series 2017-1, Class B ^(c)		6.410	%		01/15/25		236,143		245,777
Continental Credit Card LLC, Series 2019-1, Class A ^(c)		3.830	%		08/15/26		600,000		617,853

	Coupon			Maturity		Shares / Par Value		Fair Value
Credit Cards — 1.4% continued
Continental Credit Card LLC, Series 2019-1, Class B ^(c)		4.950	%		08/15/26	$	300,000	$	310,907
Continental Credit Card LLC, Series 2020-A, Class A ^(c)		2.240	%		12/15/28		1,350,000		1,354,525
Continental Credit Card LLC, Series 2020-A, Class B ^(c)		3.660	%		12/15/28		900,000		903,672
Genesis Private Label Amortization Trust, Series 2020-1, Class C ^(c)		4.190	%		07/20/30		200,000		201,287
Genesis Sales Finance Master Trust, Series 2019-A, Class A ^(c)		4.680	%		08/20/23		100,000		100,452
Genesis Sales Finance Master Trust, Series 2020-AA, Class B ^(c)		2.240	%		09/22/25		535,000		539,231
Genesis Sales Finance Master Trust, Series 2020-AA, Class C ^(c)		2.990	%		09/22/25		300,000		299,686
									4,573,390
Equipment — 0.9%
Business Jet Securities LLC, Series 2018-2, Class A ^(c)		4.447	%		06/15/33		324,418		330,266
Business Jet Securities LLC, Series 2018-2, Class B ^(c)		5.437	%		06/15/33		656,689		667,636
Business Jet Securities LLC, Series 2019-1, Class B ^(c)		5.193	%		07/15/34		553,898		557,104
Business Jet Securities LLC, Series 2020-1, Class B ^(c)		3.967	%		11/15/35		342,219		343,865
CLI Funding VI LLC, Series 2019-1, Class A ^(c)		3.710	%		05/18/44		94,295		96,160
CLI Funding VI LLC, Series 2020-1, Class B ^(c)		3.620	%		09/18/45		627,250		631,784
Octane Receivables Trust, Series 2019-1, Class A ^(c)		3.160	%		09/20/23		92,976		94,141

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 67

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Securitized — 63.4% continued
Equipment — 0.9% continued
Octane Receivables Trust, Series 2020-1, Class A ^(c)		1.710	%		02/20/25	$	342,885	$	343,762
									3,064,718
HECM — 0.2%
Cascade Funding Mortgage Trust, Series 2018-RM1, Class A1 ^(c)		4.580	%		06/25/48		80,503		80,755
Finance of America HECM, Series 2020-HB2, Class A ^(c)		1.710	%		07/25/30		306,837		307,298
RMF Buyout Issuance Trust, Series 2020-2, Class M2 ^(c)		3.091	%		06/25/30		250,000		251,109
									639,162
Hospitality — 1.9%
BHMS Mortgage Trust, Series 2018-ATLS, Class A (1MO LIBOR + 125) ^(a)(c)		1.391	%		07/16/35		280,000		272,279
BX Commercial Mortgage Trust, Series 2020-VIV4, Class A ^(c)		2.843	%		03/09/44		650,000		678,257
BX Commercial Mortgage Trust, Series 2020-VIV3, Class B ^(c)		3.540	%		03/09/44		650,000		689,219
BX Trust, Series 2018-GW, Class E (1MO LIBOR + 197) ^(a)(c)		2.111	%		05/15/37		150,000		142,299
BX Trust, Series 2019-OC11, Class B ^(c)		3.605	%		12/09/41		435,000		477,409
BX Trust, Series 2019-OC11, Class D ^(a)(c)		4.075	%		12/09/41		225,000		233,979
BX Trust, Series 2019-OC11, Class A ^(c)		3.202	%		12/11/41		577,000		631,526
BX Trust, Series 2019-OC11, Class C ^(c)		3.856	%		12/11/41		270,000		286,222

	Coupon			Maturity		Shares / Par Value		Fair Value
Hospitality — 1.9% continued
Champlain Housing Mortgage Trust, Series 2017-COSMO, Class B (1MO LIBOR + 140) ^(a)(c)		1.541	%		11/17/36	$	100,000	$	98,244
Cosmopolitan Hotel Trust, Series 2017-COSMO, Class D (1MO LIBOR + 225) ^(a)(c)		2.391	%		11/15/36		100,000		96,740
Cosmopolitan Hotel Trust, Series 2017-COSMO, Class A (1MO LIBOR + 93) ^(a)(c)		1.071	%		11/17/36		700,000		692,131
Goldman Sachs Mortgage Securities Corp. Trust, Series 2018-HULA, Class A (1MO LIBOR + 92) ^(a)(c)		1.079	%		07/16/35		778,781		763,160
Goldman Sachs Mortgage Securities Corp. Trust, Series 2018-HULA, Class B (1MO LIBOR + 125) ^(a)(c)		1.409	%		07/16/35		973,476		950,320
Hawaii Hotel Trust, Series 2019-MAUI, Class B (1MO LIBOR + 145) ^(a)(c)		1.591	%		05/17/38		156,000		152,315
Motel 6 Trust, Series 2017-MTL6, Class D (1MO LIBOR + 215) ^(a)(c)		2.291	%		08/15/34		353,077		349,108
									6,513,208
Industrial — 1.8%
BX Commercial Mortgage Trust, Series 2020-FOX, Class D (1MO LIBOR + 210) ^(a)(c)		2.259	%		11/15/32		1,200,000		1,203,383
BX Commercial Mortgage Trust, Series 2018-IND, Class A (1MO LIBOR + 75) ^(a)(c)		0.891	%		11/15/35		631,114		630,917

68 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Securitized — 63.4% continued
Industrial — 1.8% continued
BX Commercial Mortgage Trust, Series 2018-IND, Class F (1MO LIBOR + 180) ^(a)(c)		1.941	%		11/15/35	$	350,000	$	348,684
BX Commercial Mortgage Trust, Series 2019-XL, Class A (1MO LIBOR + 92) ^(a)(c)		1.061	%		10/15/36		545,846		546,864
BX Commercial Mortgage Trust, Series 2019-XL, Class B (1MO LIBOR + 108) ^(a)(c)		1.221	%		10/15/36		650,269		650,269
BX Commercial Mortgage Trust, Series 2020-BXLP, Class B (1MO LIBOR + 100) ^(a)(c)		1.141	%		12/15/36		226,792		226,792
BX Commercial Mortgage Trust, Series 2020-BXLP, Class C (1MO LIBOR + 112) ^(a)(c)		1.261	%		12/15/36		179,835		179,159
BX Commercial Mortgage Trust, Series 2020-BXLP, Class D (1MO LIBOR + 125) ^(a)(c)		1.391	%		12/15/36		499,543		493,931
BX Commercial Mortgage Trust, Series 2020-BXLP, Class E (1MO LIBOR + 160) ^(a)(c)		1.741	%		12/15/36		211,806		207,559
Cold Storage Trust, Series 2020-ICE5, Class E ^(a)(c)		2.906	%		11/16/37		500,000		498,746
Credit Suisse First Boston, Series 2020-UNFI, Class A (1MO LIBOR + 276.56) ^(a)(c)		4.168	%		12/06/22		1,000,000		1,000,050
									5,986,354
Laboratory — 1.3%
CAMB Commercial Mortgage Trust, Series 2019-LIFE, Class A (1MO LIBOR + 107) ^(a)(c)		1.211	%		12/15/37		350,000		350,719

	Coupon			Maturity		Shares / Par Value		Fair Value
Laboratory — 1.3% continued
CGDBB Commercial Mortgage Trust, Series 2017-BIOC, Class B (1MO LIBOR + 97) ^(a)(c)		1.111	%		07/15/32	$	411,095	$	410,970
Commercial Mortgage Trust, Series 2020-CX, Class A ^(c)		2.173	%		11/10/46		2,000,000		2,085,066
DBGS Mortgage Trust, Series 2018-BIOD, Class B (1MO LIBOR + 89) ^(a)(c)		1.029	%		05/15/35		496,554		496,399
KNDL Mortgage Trust, Series 2019-KNSQ, Class D (1MO LIBOR + 135) ^(a)(c)		1.509	%		05/15/36		425,000		423,945
VLS Commercial Mortgage Trust, Series 2020-LAB, Class D ^(c)		2.603	%		10/10/42		600,000		587,818
									4,354,917
Manufactured Housing — 0.0% ^(d)
Cascade Funding Mortgage Trust, Series 2019-MH1, Class M ^(c)		5.985	%		11/25/44		100,000		104,205

Mixed-Use — 0.1%
20 Times Square Trust, Series 2018-20TS, Class B ^(a)(c)		3.203	%		05/17/35		300,000		298,923

Multifamily — 0.7%
FREMF Mortgage Trust, Series 2018-KF44, Class B (1MO LIBOR +215) ^(a)(c)		2.303	%		02/25/25		531,750		524,789
FREMF Mortgage Trust, Series 2018-KF43, Class B (1MO LIBOR +215) ^(a)(c)		2.303	%		01/25/28		491,819		480,176
FREMF Mortgage Trust, Series 2018-KF50, Class B (1MO LIBOR + 190) ^(a)(c)		2.040	%		07/25/28		351,795		339,263

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 69

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Securitized — 63.4% continued
Multifamily — 0.7% continued
Multi Family Connecticut Avenue, Series 2019-01, Class M-7 (1MO LIBOR + 170) ^(a)(c)		1.848	%		10/15/49	$	595,732	$	579,083
Multi Family Connecticut Avenue, Series 2020-01, Class M-7 (1MO LIBOR + 195) ^(a)(c)		2.098	%		03/25/50		325,737		321,263
									2,244,574
Non-Performing Loan — 0.3%
Volt LXXX LLC, Series 2019-NP6, Class A-1A ^(a)(c)		3.228	%		10/25/49		346,706		347,195
Volt LXXXIX LLC, Series 2020-NPL5, Class A-1A ^(a)(c)		2.981	%		03/25/50		816,535		817,295
									1,164,490
Non-QM — 0.0% ^(d)
Arroyo Mortgage Trust, Series 2018-1, Class A1 ^(c)		3.763	%		04/25/48		69,588		70,617

Residential Transition Loan — 0.1%
Antler Mortgage Trust, Series 2019-RTL1, Class A1 ^(c)		4.458	%		06/27/22		99,656		99,605
LHFC Depositor LLC, Series 2019-RLT1, Class A2 ^(c)		4.948	%		10/25/23		100,000		99,991
									199,596
Retail — 0.5%
Aventura Mall Trust, Series 2018-AVM, Class C ^(c)		4.249	%		07/05/40		650,000		600,520
BX Trust, Series 2018-EXCL, Class A (1MO LIBOR + 1088) ^(a)(c)		1.229	%		09/15/37		90,739		83,766
Citigroup Commercial Mortgage, Series 2017-MDRB, Class D (1MO LIBOR + 325) ^(a)(c)		3.391	%		07/15/30		150,000		141,649

	Coupon			Maturity		Shares / Par Value		Fair Value
Retail — 0.5% continued
Citigroup Commercial Mortgage, Series 2017-MDRB, Class A (1MO LIBOR + 110) ^(a)(c)		1.241	%		07/15/30	$	197,347	$	189,699
Credit Suisse First Boston, Series 2018-SITE, Class A ^(c)		4.284	%		04/17/36		127,000		126,497
Credit Suisse First Boston, Series 2018-SITE, Class C ^(a)(c)		4.941	%		04/17/36		435,000		395,996
									1,538,127
Single Family Rental — 2.5%
American Homes 4 Rent, Series 2014-SFR2, Class E ^(c)		6.231	%		10/17/36		300,000		332,883
American Homes 4 Rent, Series 2014-SFR2, Class D ^(c)		3.678	%		12/17/36		334,122		360,813
American Homes 4 Rent, Series 2014-SFR3, Class E ^(c)		6.418	%		12/18/36		300,000		336,181
American Homes 4 Rent, Series 2015-SFR1, Class A ^(c)		3.467	%		04/17/52		115,655		124,146
Colony American Finance Ltd., Series 2016-2, Class B ^(c)		3.141	%		11/15/48		150,000		150,879
Colony American Finance Ltd., Series 2020-1, Class A2 ^(c)		2.296	%		03/15/50		250,000		255,774
Colony American Finance Ltd., Series 2020-1, Class A1 ^(c)		1.832	%		03/17/50		245,899		249,457
Colony American Finance Ltd., Series 2020-4, Class B ^(c)		1.707	%		12/15/52		800,000		803,558
Colony American Finance Ltd., Series 2020-4, Class D ^(c)		2.712	%		12/15/52		800,000		805,020
Colony American Finance Ltd., Series 2020-4, Class E ^(c)		3.379	%		12/15/52		750,000		750,127

70 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Securitized — 63.4% continued
Single Family Rental — 2.5% continued
Home Partners of America Trust, Series 2019-1, Class B ^(c)		3.157	%		09/17/27	$	570,434	$	593,113
Home Partners of America Trust, Series 2019-2, Class B ^(c)		2.922	%		10/19/39		635,778		661,366
Invitation Homes Trust, Series 2017-SFR2, Class A (1MO LIBOR + 85) ^(a)(c)		1.003	%		12/19/36		809,605		807,630
Invitation Homes Trust, Series 2018-SFR1, Class B (1MO LIBOR + 95) ^(a)(c)		1.086	%		03/17/37		750,000		743,792
Invitation Homes Trust, Series 2018-SFR1, Class A (1MO LIBOR+ 70) ^(a)(c)		0.836	%		03/19/37		305,532		302,990
Invitation Homes Trust, Series 2018-SFR3, Class A (1MO LIBOR + 100) ^(a)(c)		1.153	%		07/17/37		1,075,853		1,075,853
									8,353,582
Small Business — 1.4%
Credibly Asset Securitization LLC, Series 2018-1, Class A ^(c)		4.800	%		11/15/23		750,000		750,837
Kabbage Funding LLC, Series 2019-1, Class C ^(c)		4.611	%		03/15/24		169,361		169,344
Newtek Small Business Loan Trust, Series 2018-1, Class A (1MO LIBOR + 170) ^(a)(c)		1.850	%		02/25/44		763,616		742,843
Newtek Small Business Loan Trust, Series 2018-1, Class B (1MO LIBOR + 300) ^(a)(c)		3.150	%		02/25/44		200,952		183,459
Newtek Small Business Loan Trust, Series 2019-01, Class A (1MO LIBOR + 165) ^(a)(c)		2.350	%		12/25/44		778,625		764,573

	Coupon			Maturity		Shares / Par Value		Fair Value
Small Business — 1.4% continued
Newtek Small Business Loan Trust, Series 2019-01, Class B (1MO LIBOR + 250) ^(a)(c)		3.500	%		12/25/44	$	330,916	$	312,206
SFS Asset Securitization LLC, Series 2019-1, Class A ^(c)		4.238	%		06/10/25		800,000		799,769
SFS Asset Securitization LLC, Series 2019-1, Class B ^(c)		5.023	%		06/10/25		150,000		143,502
Small Business Lending Trust, Series 2019-A, Class A ^(c)		2.850	%		07/15/26		222,083		221,478
Small Business Lending Trust, Series 2020-A, Class B ^(c)		3.200	%		12/15/26		646,000		622,048
									4,710,059
Student Loan — 1.4%
College Ave Student Loans, Series 2018-A, Class B ^(a)(c)		4.750	%		12/26/47		140,000		147,871
College Ave Student Loans, Series 2018-A, Class C ^(a)(c)		5.500	%		12/26/47		100,000		105,270
College Ave Student Loans, Series 2019-A, Class A1 (1MO LIBOR + 140) ^(a)(c)		1.550	%		12/28/48		158,449		159,686
College Ave Student Loans, Series 2019-A, Class C ^(c)		4.460	%		12/28/48		250,000		260,568
Earnest Student Loan Program LLC, Series 2016-C, Class A-2 ^(c)		2.680	%		07/25/35		199,961		200,812
Earnest Student Loan Program LLC, Series 2017-A, Class B ^(c)		3.590	%		01/25/41		126,696		128,502
Laurel Road Prime Student Loan, Series 2018-B, Class A2 ^(c)		3.540	%		05/26/43		72,584		74,292

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 71

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Securitized — 63.4% continued
Student Loan — 1.4% continued
Laurel Road Prime Student Loan, Series 2019-A, Class A2FX ^(c)		2.730	%		10/25/48	$	219,094	$	224,198
SMB Private Education Loan Trust, Series 2018-C, Class B ^(c)		4.000	%		11/17/42		200,000		209,255
Social Professional Loan Program, Series 2016-C, Class A-2B ^(a)(c)		2.360	%		12/27/32		104,273		105,608
Social Professional Loan Program, Series 2015-D, Class B ^(a)(c)		3.590	%		10/26/37		98,087		99,358
Social Professional Loan Program, Series 2017-B, Class CFX ^(c)		4.440	%		05/25/40		150,000		157,938
Social Professional Loan Program, Series 2017-E, Class A-2B ^(a)(c)		2.720	%		11/26/40		166,686		169,572
Social Professional Loan Program, Series 2017-E, Class C ^(c)		4.160	%		11/26/40		700,000		737,367
Social Professional Loan Program, Series 2016-E, Class C ^(c)		4.430	%		10/25/41		200,000		209,467
Social Professional Loan Program, Series 2018-A, Class A-1 (1MO LIBOR + 35) ^(a)(c)		0.500	%		02/25/42		72,075		71,566
Social Professional Loan Program, Series 2020-A, Class BFX ^(c)		3.120	%		05/15/46		425,000		439,211
Social Professional Loan Program, Series 2018-D, Class BFX ^(c)		4.140	%		02/25/48		500,000		537,557
Social Professional Loan Program, Series 2019-C, Class BFX ^(c)		3.050	%		11/16/48		730,000		758,089
									4,796,187

	Coupon			Maturity		Shares / Par Value		Fair Value
Unsecured Consumer — 3.9%
Avant Loans Funding Trust, Series 2020-REV1, Class A ^(c)		2.170	%		05/15/29	$	200,000	$	200,803
Freedom Financial, Series 2018-1, Class B ^(c)		4.560	%		07/18/24		380,373		380,896
Freedom Financial, Series 2018-2, Class A ^(c)		3.990	%		10/20/25		135,822		136,108
Freedom Financial, Series 2019-1, Class B ^(c)		3.870	%		06/18/26		597,137		603,173
Freedom Financial, Series 2020-FP1, Class A ^(c)		2.520	%		03/18/27		393,034		395,774
Freedom Financial, Series 2020-FP1, Class B ^(c)		3.060	%		03/18/27		225,000		228,542
Freedom Financial, Series 2020-2CP, Class A ^(c)		4.520	%		06/18/27		307,151		310,539
Freedom Financial, Series 2020-3FP, Class A ^(c)		2.400	%		09/20/27		142,477		143,104
Freedom Financial, Series 2020-3FP, Class B ^(c)		4.180	%		09/20/27		1,000,000		1,023,924
LendingPoint Asset Securitization Trust, Series 2019-1, Class B ^(c)		3.613	%		08/15/25		276,647		277,307
LendingPoint Asset Securitization Trust, Series 2020-1, Class B ^(c)		3.107	%		02/10/26		350,000		351,322
Lendmark Funding Trust, Series 2020-2A, Class C ^(c)		4.690	%		04/21/31		550,000		558,542
LL ABS Trust, Series 2020-1, Class A ^(c)		2.330	%		07/15/22		570,114		577,034
LL ABS Trust, Series 2020-1, Class B ^(c)		3.790	%		03/15/23		250,000		258,649
LL ABS Trust, Series 2019-1, Class A ^(c)		2.870	%		03/15/27		265,994		267,204
LL ABS Trust, Series 2019-1, Class B ^(c)		3.520	%		03/15/27		150,000		150,510
Marlette Funding Trust, Series 2019-4, Class B ^(c)		2.950	%		12/17/29		125,000		127,279
Oportun Funding VII LLC, Series 2018-C, Class A ^(c)		4.100	%		10/08/24		300,000		304,828

72 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Securitized — 63.4% continued
Unsecured Consumer — 3.9% continued
Oportun Funding VIII LLC, Series 2018-A, Class B ^(c)		4.450	%		03/08/24	$	650,000	$	650,000
Oportun Funding XII LLC, Series 2018-D, Class B ^(c)		4.830	%		12/09/24		100,000		101,794
Oportun Funding XIII LLC, Series 2019-13, Class B ^(c)		3.870	%		08/08/25		500,000		507,190
Prosper Marketplace Issuance Trust, Series 2019-3, Class B ^(c)		3.590	%		07/15/25		150,000		151,310
Prosper Marketplace Issuance Trust, Series 2019-4, Class B ^(c)		3.200	%		02/17/26		200,000		201,580
Regional Management Issuance Trust, Series 2018-2, Class A ^(c)		4.560	%		01/18/28		420,000		423,491
Regional Management Issuance Trust, Series 2019-1, Class C ^(c)		4.110	%		11/15/28		200,000		205,129
Regional Management Issuance Trust, Series 2020-1, Class A ^(c)		2.340	%		10/15/30		250,000		252,161
Upgrade Master Pass-Thru Trust, Series 2019-ST1, Class A ^(c)		4.000	%		07/15/25		278,197		280,623
Upgrade Master Pass-Thru Trust, Series 2019-ST3, Class A ^(c)		3.750	%		11/15/25		102,487		103,643
Upgrade Receivables Trust, Series 2019-1, Class B ^(c)		4.090	%		03/15/25		68,190		68,251
Upstart Pass Through Trust, Series 20-ST6, Class A ^(c)		3.000	%		01/20/27		650,000		652,123

	Coupon			Maturity		Shares / Par Value		Fair Value
Unsecured Consumer — 3.9% continued
Upstart Pass-Through Trust, Series 2020-ST1, Class A ^(c)		3.750	%		02/20/28	$	198,214	$	201,141
Upstart Pass-Through Trust, Series 2020-ST2, Class A ^(c)		3.500	%		03/20/28		301,378		306,280
Upstart Pass-Through Trust, Series 2020-ST3, Class A ^(c)		3.350	%		04/20/28		157,326		160,095
Upstart Securitization Trust, Series 2019-1, Class B ^(c)		4.190	%		04/20/26		27,352		27,496
Upstart Securitization Trust, Series 2021-ST1, Class A ^(c)		2.750	%		02/20/27		1,000,000		1,000,152
Upstart Securitization Trust, Series 2019-2, Class A ^(c)		2.897	%		09/20/29		91,386		91,982
Upstart Securitization Trust, Series 2019-2, Class B ^(c)		3.734	%		09/20/29		1,000,000		1,021,049
Upstart Securitization Trust, Series 2019-3, Class B ^(c)		3.829	%		01/21/30		600,000		617,154
									13,318,182

Total Securitized
(Cost $208,982,897)								$	213,772,008

Treasury — 18.8%
U.S. Treasury Notes		0.125	%		04/15/21		217,284		218,028
U.S. Treasury Notes		2.000	%		11/30/22		1,500,000		1,553,672
U.S. Treasury Bonds		1.500	%		03/31/23		1,225,000		1,262,229
U.S. Treasury Notes ^(b)		1.625	%		04/30/23		100,000		103,441
U.S. Treasury Notes		2.500	%		05/15/24		750,000		808,096
U.S. Treasury Notes ^(b)		2.250	%		11/15/24		250,000		269,277
U.S. Treasury STRIPS		0.000	%		02/15/25		300,000		295,662
U.S. Treasury Notes ^(b)		2.000	%		08/15/25		1,000,000		1,076,914
U.S. Treasury Notes ^(b)		2.250	%		11/15/25		2,000,000		2,183,594
U.S. Treasury Notes ^(b)		1.625	%		02/15/26		3,000,000		3,190,078

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 73

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Treasury — 18.8% continued
U.S. Treasury Notes		0.625	%		03/31/27	$	1,000,000	$	1,005,625
U.S. Treasury STRIPS		0.000	%		05/15/28		1,000,000		941,494
U.S. Treasury Notes ^(b)		2.875	%		08/15/28		2,000,000		2,322,109
U.S. Treasury Notes ^(b)		0.625	%		08/15/30		3,313,900		3,228,981
U.S. Treasury Notes ^(b)		0.875	%		11/15/30		8,000,000		7,968,750
U.S. Treasury STRIPS		0.000	%		11/15/31		500,000		440,235
U.S. Treasury STRIPS		0.000	%		02/15/33		800,000		686,108
U.S. Treasury STRIPS		0.000	%		08/15/34		750,000		623,600
U.S. Treasury STRIPS		0.000	%		05/15/35		1,000,000		820,685
U.S. Treasury STRIPS		0.000	%		02/15/37		1,725,000		1,364,461
U.S. Treasury Notes		4.750	%		02/15/37		150,000		228,428
U.S. Treasury Bonds		3.500	%		02/15/39		235,000		318,700
U.S. Treasury Bonds ^(b)		4.250	%		05/15/39		500,000		741,055
U.S. Treasury Bonds		1.125	%		08/15/40		7,200,000		6,805,125
U.S. Treasury Bonds		3.875	%		08/15/40		550,000		787,145
U.S. Treasury Notes		4.250	%		11/15/40		1,050,000		1,574,918
U.S. Treasury Bonds ^(b)		4.750	%		02/15/41		700,000		1,116,664
U.S. Treasury STRIPS		0.000	%		08/15/41		500,000		359,646
U.S. Treasury Bonds		2.750	%		11/15/42		600,000		742,102
U.S. Treasury Bonds		3.750	%		11/15/43		1,500,000		2,155,430
U.S. Treasury Bonds		2.250	%		08/15/46		1,780,000		2,027,809
U.S. Treasury Bonds		3.000	%		02/15/48		1,975,000		2,587,636
U.S. Treasury Bonds ^(b)		2.375	%		11/15/49		1,750,000		2,051,533
U.S. Treasury Bonds ^(b)		2.000	%		02/15/50		2,350,000		2,546,904
U.S. Treasury Bonds ^(b)		1.250	%		05/15/50		10,050,000		9,096,820
Total Treasury
(Cost $61,551,182)								$	63,502,954

	Shares		Fair Value
Registered Investment Companies — 7.5%
State Street Institutional Liquid Reserves Fund, Premier Class, 0.10% ^(f)		7,636,074	$	7,637,601
State Street Navigator Securities Lending Portfolio I, 0.17% ^(f)(g)		17,812,661		17,812,661
Total Registered Investment Companies
(Cost $25,446,893)			$	25,450,262

Total Investment Securities — 105.7%
(Cost $346,822,050)			$	356,534,296

Liabilities in Excess of Other Assets — (5.7)%				(19,289,546	)

Net Assets — 100.0%			$	337,244,750

^(a)

^(b)	All or a portion of the security is on loan. The total fair value of the securities on loan as of December 31, 2020 was $30,526,114.

^(c)

^(d)	Percentage rounds to less than 0.1%.

^(e)	Illiquid security as determined under procedures approved by the Board of Trustees. The total fair value of these securities as of December 31, 2020 was $1,638,025, representing 0.5% of net assets.

^(f)	The rate shown is the 7-day effective yield as of December 31, 2020.

^(g)	This security was purchased with cash collateral from securities on loan.

74 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

AG — Aktiengesellschaft

BV — Besloten Vennootschap

IO — Interest Only

LIBOR — London Interbank Offered Rate

NA — National Association

NV — Naamloze Vennootschap

plc — Public Limited Company

PO — Principal Only

SA — Societe Anonyme

SOFR — Secured Overnight Financing Rate

UA — Uitgesloten Aansprakelijkheid

See accompanying Notes to Financial Statements.

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
December 31, 2020

Diamond Hill Corporate Credit Fund
Schedule of Investments
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Collateralized Debt Obligations — 0.1%
Financials — 0.1%
Alesco Preferred Funding Ltd., Class PNNE *					03/23/35	$	336,608	$	155,202
Alesco Preferred Funding Ltd. VI, Class PNN *					03/23/35		621,631		300,688
Fort Sheridan ABS CDO Ltd., Series 05-1A, Class PPN2 *					11/05/41		611,948		362,654
Taberna Preferred Funding Ltd., Class PPN2 *					07/05/35		1,175,564		567,922
Total Collateralized Debt Obligations
(Cost $2,532,785)								$	1,386,466

Corporate Bonds — 93.5%
Automotive — 1.9%
Ford Motor Co.		8.500	%		04/21/23		3,729,000		4,204,746
Ford Motor Credit Co. LLC		3.200	%		01/15/21		8,388,000		8,392,194
Ford Motor Credit Co. LLC		3.336	%		03/18/21		7,318,000		7,336,295
Ford Motor Credit Co. LLC		4.271	%		01/09/27		2,951,000		3,093,017
Tesla, Inc. ^(a)		5.300	%		08/15/25		9,569,000		9,975,682
Winnebago Industries, Inc. ^(a)		6.250	%		07/15/28		5,635,000		6,057,625
									39,059,559
Banking — 5.0%
BankUnited, Inc.		5.125	%		06/11/30		28,510,000		33,330,131
Cadence Bancorp (3MO LIBOR + 303) ^(b)		4.750	%		06/30/29		4,750,000		4,216,205
First Tennessee Bank		5.750	%		05/01/30		24,525,000		28,540,954
Popular, Inc. ^(c)		6.125	%		09/14/23		21,135,000		22,825,800
Western Alliance Bancorp		5.250	%		06/01/30		11,135,000		11,628,157
									100,541,247
Basic Industry — 5.9%
Ashland Global Holdings, Inc.		6.875	%		05/15/43		12,949,000		17,222,170
Century Communities, Inc.		5.875	%		07/15/25		1,767,000		1,837,680
Century Communities, Inc.		6.750	%		06/01/27		4,495,000		4,799,312
GCP Applied Technologies, Inc. ^(a)		5.500	%		04/15/26		29,703,000		30,594,090

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 75

Diamond Hill Corporate Credit Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Corporate Bonds — 93.5% continued
Basic Industry — 5.9% continued
Mueller Industries, Inc. ^(c)		6.000	%		03/01/27	$	17,520,000	$	17,826,600
Schweitzer-Mauduit International, Inc. ^(a)		6.875	%		10/01/26		21,039,000		22,301,340
W.R. Grace & Co. ^(a)		4.875	%		06/15/27		13,811,000		14,646,842
WESCO Distribution, Inc. ^(a)		7.125	%		06/15/25		9,715,000		10,684,848
									119,912,882
Capital Goods — 0.5%
TransDigm, Inc.		6.500	%		07/15/24		9,923,000		10,098,836

Consumer Goods — 6.8%
C&S Group Enterprises LLC ^(a)		5.000	%		12/15/28		22,870,000		22,811,224
Cooke Omega Investments, Inc. / Alpha VesselCo Holdings, Inc. ^(a)		8.500	%		12/15/22		24,067,000		24,728,842
Hasbro, Inc.		6.350	%		03/15/40		18,281,000		23,547,694
Hasbro, Inc.		5.100	%		05/15/44		3,859,000		4,408,224
Pilgrim’s Pride Corp. ^(a)		5.750	%		03/15/25		19,803,000		20,329,760
Pilgrim’s Pride Corp. ^(a)		5.875	%		09/30/27		1,265,000		1,372,032
Post Holdings, Inc. ^(a)		5.000	%		08/15/26		12,938,000		13,358,485
Post Holdings, Inc. ^(a)		4.625	%		04/15/30		4,135,000		4,349,855
US Foods, Inc. ^(a)		5.875	%		06/15/24		21,241,000		21,533,063
									136,439,179
Energy — 9.5%
Aker BP ASA ^(a)		5.875	%		03/31/25		3,829,000		3,966,449
Apergy Corp.		6.375	%		05/01/26		29,656,000		29,952,559
Double Eagle III ^(a)		7.750	%		12/15/25		11,791,000		12,502,941
Energen Corp. ^(d)		7.125	%		02/15/28		22,389,000		25,537,735
Floatel International Ltd. ^(d)		9.000	%		04/11/24		6,400,000		960,000
Floatel International Ltd. ^(d)(e)		12.750	%		04/11/24		3,400,000		0
Floatel International Ltd. ^(d)		0.000	%		04/11/60		288,000		288,000
Floatel International Ltd. ^(d)		0.000	%		04/11/60		288,000		288,000
Floatel International Ltd. ^(d)(e)		0.000	%		04/11/60		216,750		0
Floatel International Ltd. ^(d)(e)		0.000	%		04/11/60		216,750		0
LBC Tank Terminals Holdings Netherlands BV ^(a)		6.875	%		05/15/23		5,555,000		5,555,000
Leviathan Energy		5.750	%		06/30/23		1,130,000		1,203,450
Leviathan Energy		6.125	%		06/30/25		897,000		984,458
Leviathan Energy		6.500	%		06/30/27		11,306,000		12,690,985

	Coupon			Maturity		Shares / Par Value		Fair Value
Energy — 9.5% continued
Magnolia Oil & Gas Corp. ^(a)		6.000	%		08/01/26	$	36,709,000	$	37,351,408
New Fortress Energy, Inc. ^(a)		6.750	%		09/15/25		20,225,000		21,419,286
Parsley Energy LLC ^(a)		5.375	%		01/15/25		4,803,000		4,939,405
Rattler Midstream LP ^(a)		5.625	%		07/15/25		8,781,000		9,274,931
Welltec A/S ^(a)		9.500	%		12/01/22		27,675,000		25,737,750
									192,652,357
Financial Services — 11.2%
Alliance Data Systems Corp. ^(a)		4.750	%		12/15/24		32,032,000		32,352,319
Alliance Data Systems Corp. ^(a)(c)		7.000	%		01/15/26		15,662,000		16,567,263
Credit Acceptance Corp. ^(a)		5.125	%		12/31/24		21,896,000		22,771,840
Credit Acceptance Corp. ^(c)		6.625	%		03/15/26		18,573,000		19,780,245
FirstCash, Inc. ^(a)		4.625	%		09/01/28		8,218,000		8,474,813
Freedom Mortgage Corp. ^(a)		7.625	%		05/01/26		9,675,000		10,233,248
Freedom Mortgage Corp. ^(a)		8.125	%		11/15/24		24,571,000		25,630,502
FS KKR Capital Corp.		4.125	%		02/01/25		15,150,000		15,772,450
FS KKR Capital Corp.		3.400	%		01/15/26		8,575,000		8,521,807
FS KKR Capital Corp. II ^(a)		4.250	%		02/14/25		16,221,000		16,362,438
Nationstar Mortgage LLC ^(a)		6.000	%		01/15/27		18,568,000		19,705,290
PennyMac Financial Services, Inc. ^(a)		5.375	%		10/15/25		967,000		1,022,603
Quicken Loans LLC ^(a)		5.250	%		01/15/28		7,874,000		8,405,495
Quicken Loans LLC ^(a)		3.625	%		03/01/29		4,880,000		4,977,600
United Shore Financial Services LLC ^(a)		5.500	%		11/15/25		15,014,000		15,839,769
									226,417,682
Health Care — 7.7%
Akumin, Inc. ^(a)		7.000	%		11/01/25		20,527,000		21,553,350
DaVita, Inc. ^(a)		4.625	%		06/01/30		16,629,000		17,626,740
Emergent Biosolutions, Inc. ^(a)		3.875	%		08/15/28		22,293,000		23,084,401
Endo Financial LLC ^(a)		5.875	%		10/15/24		2,701,000		2,734,763
Horizon Pharma USA, Inc. ^(a)		5.500	%		08/01/27		11,100,000		11,919,402

76 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Corporate Credit Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Corporate Bonds — 93.5% continued
Health Care — 7.7% continued
P&L Development LLC ^(a)		7.750	%		11/15/25	$	3,830,000	$	4,117,250
Par Pharmaceutical, Inc. ^(a)		7.500	%		04/01/27		5,798,000		6,290,830
Providence Service Corp. (The) ^(a)		5.875	%		11/15/25		7,730,000		8,174,475
Syneos Health, Inc. ^(a)		3.625	%		01/15/29		22,740,000		22,802,875
Teva Pharmaceuticals Financial Co. BV		2.200	%		07/21/21		5,156,000		5,143,110
Teva Pharmaceuticals Financial Co. BV ^(c)		3.650	%		11/10/21		6,721,000		6,805,013
Teva Pharmaceuticals Financial Co. BV		2.950	%		12/18/22		7,085,000		7,067,288
Teva Pharmaceuticals Financial Co. BV		2.800	%		07/21/23		18,937,000		18,747,630
Teva Pharmaceuticals Financial Co. BV		7.125	%		01/31/25		300,000		331,590
									156,398,717
Insurance — 3.9%
Amwins Group, Inc. ^(a)		7.750	%		07/01/26		15,873,000		17,046,015
AssuredPartners, Inc. ^(a)		7.000	%		08/15/25		12,427,000		12,879,964
MGIC Investment Corp.		5.250	%		08/15/28		4,300,000		4,601,000
National Financial Partners Corp. ^(a)		6.875	%		08/31/28		17,399,000		18,576,564
Radian Group, Inc.		4.500	%		10/01/24		3,738,000		3,943,590
Radian Group, Inc.		4.875	%		03/15/27		19,985,000		21,947,527
									78,994,660
Leisure — 9.0%
Carnival Corp. ^(a)		11.500	%		04/01/23		6,716,000		7,765,845
Carnival Corp. ^(a)(c)		10.500	%		02/01/26		7,560,000		8,807,400
Carnival Corp. ^(a)		9.875	%		08/01/27		2,300,000		2,645,000
Golden Nugget, Inc. ^(a)(c)		6.750	%		10/15/24		10,614,000		10,537,791
Live Nation Entertainment, Inc. ^(a)		4.875	%		11/01/24		17,271,000		17,486,888
Live Nation Entertainment, Inc. ^(a)		5.625	%		03/15/26		16,649,000		17,065,224
Live Nation Entertainment, Inc. ^(a)		6.500	%		05/15/27		3,000,000		3,355,560

	Coupon			Maturity		Shares / Par Value		Fair Value
Leisure — 9.0% continued
Live Nation Entertainment, Inc. ^(a)		3.750	%		01/15/28	$	1,750,000	$	1,768,200
Peninsula Pacific Entertainment LLC ^(a)		8.500	%		11/15/27		5,000,000		5,350,000
Speedway Motorsports LLC ^(a)		4.875	%		11/01/27		14,126,000		13,984,740
Station Casinos LLC ^(a)		5.000	%		10/01/25		21,843,000		22,095,287
Viking Cruises Ltd. ^(a)		6.250	%		05/15/25		14,459,000		14,169,820
Viking Cruises Ltd. ^(a)		13.000	%		05/15/25		7,699,000		9,200,305
VOC Escrow Ltd. ^(a)		5.000	%		02/15/28		3,009,000		2,986,433
Wyndham Destinations, Inc. ^(a)(c)		6.625	%		07/31/26		10,416,000		11,926,320
Wyndham Destinations, Inc. ^(a)		4.625	%		03/01/30		5,187,000		5,485,253
Wynn Las Vegas LLC ^(a)		4.250	%		05/30/23		5,360,000		5,437,988
Wynn Las Vegas LLC ^(a)(c)		5.500	%		03/01/25		6,089,000		6,365,562
XHR LP ^(a)		6.375	%		08/15/25		14,360,000		15,149,800
									181,583,416
Media — 2.3%
Cimpress plc ^(a)(c)		7.000	%		06/15/26		33,068,000		34,762,735
Twitter, Inc. ^(a)		3.875	%		12/15/27		10,701,000		11,396,565
									46,159,300
Real Estate — 4.7%
Forestar Group, Inc. ^(a)		8.000	%		04/15/24		12,330,000		12,977,325
Forestar Group, Inc. ^(a)		5.000	%		03/01/28		8,079,000		8,341,568
iStar, Inc.		5.500	%		02/15/26		15,361,000		15,668,220
Kennedy Wilson, Inc.		5.875	%		04/01/24		19,271,000		19,560,065
New Residential Investment Corp. ^(a)		6.250	%		10/15/25		30,842,000		30,996,209
RHP Hotel Properties LP ^(c)		5.000	%		04/15/23		6,403,000		6,419,008
									93,962,395
Retail — 8.6%
Abercrombie & Fitch Management Co. ^(a)		8.750	%		07/15/25		2,825,000		3,139,281
ANGI Group LLC ^(a)		3.875	%		08/15/28		28,763,000		29,273,256

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 77

Diamond Hill Corporate Credit Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Corporate Bonds — 93.5% continued
Retail — 8.6% continued
Carvana Co. ^(a)		5.625	%		10/01/25	$	6,286,000	$	6,451,007
GrubHub Holdings, Inc. ^(a)		5.500	%		07/01/27		29,856,000		31,311,479
IRB Holding Corp. ^(a)		7.000	%		06/15/25		14,012,000		15,308,110
IRB Holding Corp. ^(a)(c)		6.750	%		02/15/26		1,000,000		1,032,100
Liberty Interactive LLC		8.500	%		07/15/29		9,292,000		10,360,580
Liberty Interactive LLC		8.250	%		02/01/30		1,570,000		1,760,363
Macy’s Retail Holdings, Inc. ^(c)		3.450	%		01/15/21		2,659,000		2,645,705
Macy’s, Inc. ^(a)(c)		8.375	%		06/15/25		815,000		904,780
Nathan’s Famous, Inc. ^(a)		6.625	%		11/01/25		23,628,000		24,248,235
Nordstrom, Inc ^(a)		8.750	%		05/15/25		5,055,000		5,661,505
Nordstrom, Inc. ^(c)		4.000	%		03/15/27		10,696,000		10,597,486
Nordstrom, Inc.		6.950	%		03/15/28		2,197,000		2,498,076
Nordstrom, Inc. ^(c)		4.375	%		04/01/30		3,934,000		3,872,705
QVC, Inc.		5.450	%		08/15/34		22,603,000		23,507,120
Wolverine World Wide, Inc. ^(a)		6.375	%		05/15/25		515,000		548,475
									173,120,263
Services — 5.4%
Graham Holdings Co. ^(a)		5.750	%		06/01/26		3,380,000		3,549,000
IAA Spinco, Inc. ^(a)		5.500	%		06/15/27		7,757,000		8,222,420
KAR Auction Services, Inc. ^(a)(c)		5.125	%		06/01/25		14,316,000		14,731,593
Korn Ferry International ^(a)		4.625	%		12/15/27		16,972,000		17,650,880
MasTec, Inc. ^(a)		4.500	%		08/15/28		13,831,000		14,522,550
Sabre Global, Inc. ^(a)(c)		5.250	%		11/15/23		5,471,000		5,539,388
Sabre Global, Inc. ^(a)(c)		7.375	%		09/01/25		13,804,000		14,977,340
Uber Technologies, Inc. ^(a)		8.000	%		11/01/26		28,033,000		30,520,929
									109,714,100
Technology & Electronics — 4.2%
Arches Buyer, Inc. ^(a)		4.250	%		06/01/28		16,924,000		17,138,935
Itron, Inc. ^(a)		5.000	%		01/15/26		11,531,000		11,776,034
Logan Merger Sub, Inc. ^(a)		5.500	%		09/01/27		21,972,000		23,015,670
NCR Corp. ^(a)		5.000	%		10/01/28		13,055,000		13,773,025
Shift4 Payments LLC ^(a)		4.625	%		11/01/26		8,065,000		8,387,600
TripAdvisor, Inc. ^(a)(c)		7.000	%		07/15/25		7,666,000		8,279,280
WEX, Inc. ^(a)		4.750	%		02/01/23		2,500,000		2,503,125
									84,873,669

	Coupon			Maturity		Shares / Par Value		��	Fair Value
Telecommunications — 4.0%
Cincinnati Bell, Inc. ^(a)		8.000	%		10/15/25	$	14,370,000		$	15,322,012
Frontier Communications Corp. ^(a)(c)		5.875	%		10/15/27		4,926,000			5,326,238
Frontier Communications Corp. ^(a)		5.000	%		05/01/28		874,000			911,145
HTA Group Ltd. ^(a)		7.000	%		12/18/25		13,350,000			14,351,250
LCPR Senior Secured Financing Designated Activity Co. ^(a)		6.750	%		10/15/27		11,474,000			12,348,893
T-Mobile, Inc. ^(a)		3.875	%		04/15/30		3,700,000			4,284,637
Viasat, Inc. ^(a)		5.625	%		09/15/25		18,185,000			18,599,618
Viasat, Inc. ^(a)(c)		5.625	%		04/15/27		9,044,000			9,496,200
										80,639,993
Transportation — 2.9%
Air Canada, Series 2020-2 ^(a)		5.250	%		10/01/30		7,026,000			7,507,276
Alaska Airlines, Series 2020-1B ^(a)		4.800	%		08/15/27		17,126,000			18,861,100
American Airlines Pass-Through Trust, Series 2013-1 ^(a)		5.625	%		01/15/21		2,813,284			2,807,437
Delta Air Lines, Inc.		2.900	%		10/28/24		26,797,000			26,434,194
Skymiles IP Ltd. & Delta Airlines ^(a)		4.500	%		10/20/25		2,000,000			2,137,391
United Airlines Pass-Through Trust, Series 2013-1		5.375	%		02/15/23		189,777			191,247
										57,938,645

Total Corporate Bonds
(Cost $1,816,694,672)									$	1,888,506,900

	Shares		Fair Value
Registered Investment Companies — 8.0%
State Street Institutional US Government Money Market Fund, Premier Class, 0.03% ^(f)		111,996,890	$	111,996,890
State Street Navigator Securities Lending Portfolio I, 0.17% ^(f)(g)		49,171,063		49,171,063
Total Registered Investment Companies
(Cost $161,167,953)			$	161,167,953

78 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Corporate Credit Fund
Schedule of Investments (Continued)
December 31, 2020

	Shares	Fair Value
Total Investment Securities — 101.6%
(Cost $1,980,395,410)		$	2,051,061,319

Liabilities in Excess of Other Assets — (1.6)%			(30,942,366	)

Net Assets — 100.0%		$	2,020,118,953

^(a)

^(b)

^(c)	All or a portion of the security is on loan. The total fair value of the securities on loan as of December 31, 2020 was $47,761,938.

^(d)	Illiquid security as determined under procedures approved by the Board of Trustees. The total fair value of these securities as of December 31, 2020 was $27,073,735, representing 1.3% of net assets.

^(e)	Security fair valued under procedures established by the Board of Trustees. The total value of these securities is $0.

^(f)	Rate shown is the 7-day effective yield as of December 31, 2020.

^(g)	This security was purchased with cash collateral from securities held on loan.

A/S — Aktieselskab

ASA — Allmennaksjeselskap

BV — Besloten Vennootschap

LIBOR — London Interbank Offered Rate.

plc — Public Limited Company

*	Non-income producing security. Restricted and illiquid securities not registered under the securities act of 1933 and valued at fair value by the Valuation & Liquidity Committee based on procedures approved by the Board of Trustees are as follows:

	Acquisition Date		Current Cost		Fair Value		Value as a % of Net Assets
Alesco Preferred Funding Ltd., Class PNNE		March-05	$	336,608	$	155,202		0.01	%
Alesco Preferred Funding Ltd. VI, Class PNN		December-04	$	621,631	$	300,688		0.01	%
Fort Sheridan ABS CDO Ltd., Series 05-1A, Class PPN2		March-05	$	520,413	$	362,654		0.02	%
Taberna Preferred Funding Ltd., Class PPN2		March-05	$	1,054,133	$	567,922		0.03	%
			$	2,532,785	$	1,386,466		0.07	%

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 79

Diamond Hill High Yield Fund
Schedule of Investments
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Corporate Bonds — 95.4%
Automotive — 2.3%
Ford Motor Credit Co. LLC		3.200	%		01/15/21	$	5,900,000	$	5,902,950
Ford Motor Credit Co. LLC ^(a)		3.336	%		03/18/21		3,000,000		3,007,500
Ford Motor Credit Co. LLC ^(a)		3.470	%		04/05/21		1,805,000		1,805,000
Tesla, Inc. ^(b)		5.300	%		08/15/25		5,300,000		5,525,250
									16,240,700
Banking — 1.7%
Cadence Bancorp (3MO LIBOR + 303) ^(c)		4.750	%		06/30/29		6,000,000		5,325,732
First Tennessee Bank		5.750	%		05/01/30		2,000,000		2,327,499
Popular, Inc.		6.125	%		09/14/23		4,100,000		4,428,000
									12,081,231
Basic Industry — 3.8%
GCP Applied Technologies, Inc. ^(b)		5.500	%		04/15/26		9,000,000		9,270,000
Mueller Industries, Inc.		6.000	%		03/01/27		9,500,000		9,666,250
Schweitzer-Mauduit International, Inc. ^(b)		6.875	%		10/01/26		8,125,000		8,612,500
									27,548,750
Capital Goods — 0.5%
TransDigm, Inc.		6.500	%		07/15/24		3,500,000		3,562,020

Consumer Goods — 6.0%
C&S Group Enterprises LLC ^(a)(b)		5.000	%		12/15/28		9,600,000		9,575,328
Cooke Omega Investments, Inc. / Alpha VesselCo Holdings, Inc. ^(b)		8.500	%		12/15/22		10,500,000		10,788,750
Hasbro, Inc.		6.350	%		03/15/40		4,025,000		5,184,589
Pilgrim’s Pride Corp. ^(b)		5.750	%		03/15/25		5,075,000		5,209,995
Pilgrim’s Pride Corp. ^(b)		5.875	%		09/30/27		1,600,000		1,735,376
Post Holdings, Inc. ^(b)		5.000	%		08/15/26		2,550,000		2,632,875
US Foods, Inc. ^(a)(b)		5.875	%		06/15/24		8,250,000		8,363,437
									43,490,350
Energy — 12.4%
Aker BP ASA ^(b)		5.875	%		03/31/25		3,200,000		3,314,870
Apergy Corp.		6.375	%		05/01/26		12,300,000		12,423,000
Barrett Bill Corp. ^(d)		7.000	%		10/15/22		10,248,000		3,996,720

	Coupon			Maturity		Shares / Par Value		Fair Value
Energy — 12.4% continued
Delek Overriding Royalty Leviathan Ltd.		7.494	%		12/30/23	$	7,000,000	$	7,035,000
Double Eagle III ^(b)		7.750	%		12/15/25		5,600,000		5,938,128
Energen Corp.		7.125	%		02/15/28		4,375,000		4,990,289
Floatel International Ltd. ^(d)		9.000	%		04/11/24		600,000		90,000
Floatel International Ltd. ^(d)(e)		12.750	%		04/11/24		600,000		0
Floatel International Ltd. ^(d)(e)		0.000	%		04/11/60		38,250		0
Floatel International Ltd. ^(d)(e)		0.000	%		04/11/60		38,250		0
Floatel International Ltd. ^(d)		0.000	%		04/11/60		27,000		27,000
Floatel International Ltd. ^(d)		0.000	%		04/11/60		27,000		27,000
LBC Tank Terminals Holdings Netherlands BV ^(b)		6.875	%		05/15/23		4,250,000		4,250,000
Leviathan Energy		6.750	%		06/30/30		4,955,000		5,623,925
Magnolia Oil & Gas Corp. ^(b)		6.000	%		08/01/26		15,600,000		15,873,000
New Fortress Energy, Inc. ^(b)		6.750	%		09/15/25		10,400,000		11,014,120
Parsley Energy LLC ^(b)		5.375	%		01/15/25		1,500,000		1,542,600
Talos Production, Inc. ^(b)		12.000	%		01/15/26		1,400,000		1,362,158
Welltec A/S ^(b)		9.500	%		12/01/22		13,384,000		12,447,120
									89,954,930
Financial Services — 11.1%
Alliance Data Systems Corp. ^(a)(b)		7.000	%		01/15/26		17,850,000		18,881,730
Credit Acceptance Corp. ^(b)		5.125	%		12/31/24		4,400,000		4,576,000
Credit Acceptance Corp. ^(a)		6.625	%		03/15/26		10,750,000		11,448,750
FirstCash, Inc. ^(b)		4.625	%		09/01/28		3,300,000		3,403,125
Freedom Mortgage Corp ^(b)		7.625	%		05/01/26		4,450,000		4,706,765
Freedom Mortgage Corp. ^(b)		8.125	%		11/15/24		6,625,000		6,910,670
Freedom Mortgage Corp. ^(b)		8.250	%		04/15/25		2,928,000		3,059,760
FS KKR Capital Corp.		3.400	%		01/15/26		2,500,000		2,484,492
FS KKR Capital Corp. II ^(b)		4.250	%		02/14/25		5,350,000		5,396,649
Nationstar Mortgage LLC ^(b)		6.000	%		01/15/27		9,500,000		10,081,875
PennyMac Financial Services, Inc. ^(b)		5.375	%		10/15/25		2,200,000		2,326,500

80 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill High Yield Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Corporate Bonds — 95.4% continued
Financial Services — 11.1% continued
United Shore Financial Services LLC ^(b)		5.500	%		11/15/25	$	6,500,000	$	6,857,500
									80,133,816
Health Care — 6.6%
Akumin, Inc. ^(b)		7.000	%		11/01/25		8,000,000		8,400,000
DaVita, Inc. ^(b)		4.625	%		06/01/30		1,500,000		1,590,000
DaVita, Inc. ^(a)(b)		3.750	%		02/15/31		4,837,000		4,911,296
Emergent Biosolutions, Inc. ^(a)(b)		3.875	%		08/15/28		5,900,000		6,109,450
P&L Development LLC ^(b)		7.750	%		11/15/25		2,550,000		2,741,250
Providence Service Corp. (The) ^(b)		5.875	%		11/15/25		2,100,000		2,220,750
Syneos Health, Inc. ^(b)		3.625	%		01/15/29		7,300,000		7,320,184
Teva Pharmaceuticals Financial Co. BV		2.200	%		07/21/21		500,000		498,750
Teva Pharmaceuticals Financial Co. BV ^(a)		3.650	%		11/10/21		1,750,000		1,771,875
Teva Pharmaceuticals Financial Co. BV		2.800	%		07/21/23		11,400,000		11,286,000
Teva Pharmaceuticals Financial Co. BV		7.125	%		01/31/25		700,000		773,710
									47,623,265
Insurance — 3.7%
AssuredPartners, Inc. ^(b)		7.000	%		08/15/25		6,500,000		6,736,925
Hub International Ltd. ^(b)		7.000	%		05/01/26		5,418,000		5,666,090
National Financial Partners Corp. ^(b)		6.875	%		08/31/28		6,750,000		7,206,840
Radian Group, Inc.		4.875	%		03/15/27		6,450,000		7,083,390
									26,693,245
Leisure — 13.3%
Affinity Gaming ^(b)		6.875	%		12/15/27		3,750,000		3,923,438
Carnival Corp. ^(b)		9.875	%		08/01/27		4,700,000		5,405,000
CCM Merger, Inc. ^(b)		6.375	%		05/01/26		5,434,000		5,705,700
Golden Nugget, Inc. ^(b)		6.750	%		10/15/24		6,860,000		6,810,745
Live Nation Entertainment, Inc. ^(b)		4.875	%		11/01/24		3,850,000		3,898,125
Live Nation Entertainment, Inc. ^(b)		5.625	%		03/15/26		10,850,000		11,121,250

	Coupon			Maturity		Shares / Par Value		Fair Value
Leisure — 13.3% continued
Peninsula Pacific Entertainment LLC ^(b)		8.500	%		11/15/27	$	4,300,000	$	4,601,000
Speedway Motorsports LLC ^(b)		4.875	%		11/01/27		6,514,000		6,448,860
Station Casinos LLC ^(b)		5.000	%		10/01/25		9,700,000		9,812,035
Vail Resorts, Inc. ^(b)		0.000	%		01/01/26		1,000,000		1,018,226
Viking Cruises Ltd. ^(a)(b)		6.250	%		05/15/25		6,500,000		6,370,000
Viking Cruises Ltd. ^(b)		13.000	%		05/15/25		4,600,000		5,497,000
Wyndham Destinations, Inc. ^(b)		6.625	%		07/31/26		5,350,000		6,125,750
Wyndham Destinations, Inc. ^(a)(b)		4.625	%		03/01/30		1,900,000		2,009,250
Wynn Las Vegas LLC ^(a)(b)		5.500	%		03/01/25		10,100,000		10,558,742
XHR LP ^(b)		6.375	%		08/15/25		6,800,000		7,174,000
									96,479,121
Media — 1.9%
Cimpress plc ^(a)(b)		7.000	%		06/15/26		12,850,000		13,508,563

Real Estate — 6.1%
Forestar Group, Inc. ^(b)		8.000	%		04/15/24		1,750,000		1,841,875
Forestar Group, Inc. ^(b)		5.000	%		03/01/28		4,075,000		4,207,438
iStar, Inc.		4.250	%		08/01/25		2,154,000		2,127,075
iStar, Inc.		5.500	%		02/15/26		7,600,000		7,752,000
Kennedy Wilson, Inc.		5.875	%		04/01/24		9,300,000		9,439,500
New Residential Investment Corp. ^(b)		6.250	%		10/15/25		14,840,000		14,914,200
RHP Hotel Properties LP		5.000	%		04/15/23		4,075,000		4,085,187
									44,367,275
Retail — 10.7%
Abercrombie & Fitch Management Co. ^(b)		8.750	%		07/15/25		3,110,000		3,455,988
ANGI Group LLC ^(b)		3.875	%		08/15/28		8,700,000		8,854,338
Carvana Co. ^(b)		5.625	%		10/01/25		4,650,000		4,772,063
GrubHub Holdings, Inc. ^(b)		5.500	%		07/01/27		11,100,000		11,641,125
IRB Holding Corp. ^(a)(b)		6.750	%		02/15/26		5,625,000		5,805,563

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 81

Diamond Hill High Yield Fund
Schedule of Investments (Continued)
December 31, 2020

	Coupon			Maturity		Shares / Par Value		Fair Value
Corporate Bonds — 95.4% continued
Retail — 10.7% continued
Liberty Interactive LLC ^(a)		8.500	%		07/15/29	$	4,925,000	$	5,491,375
Liberty Interactive LLC ^(a)		8.250	%		02/01/30		1,400,000		1,569,750
Macy’s Retail Holdings, Inc.		3.450	%		01/15/21		1,120,000		1,114,400
Macy’s, Inc. ^(a)(b)		8.375	%		06/15/25		1,624,000		1,802,900
Nathan’s Famous, Inc. ^(b)		6.625	%		11/01/25		8,000,000		8,210,000
Nordstrom, Inc.		6.950	%		03/15/28		4,025,000		4,576,584
Nordstrom, Inc.		4.375	%		04/01/30		9,400,000		9,253,541
QVC, Inc. ^(a)		5.450	%		08/15/34		7,875,000		8,190,000
QVC, Inc.		5.950	%		03/15/43		200,000		210,000
Seg Holdings LLC ^(b)		5.625	%		10/15/28		2,000,000		2,110,000
									77,057,627
Services — 4.6%
KAR Auction Services, Inc. ^(b)		5.125	%		06/01/25		5,100,000		5,248,053
Korn Ferry International ^(b)		4.625	%		12/15/27		4,650,000		4,836,000
MasTec, Inc. ^(b)		4.500	%		08/15/28		4,500,000		4,725,000
Sabre Global, Inc. ^(b)		9.250	%		04/15/25		779,000		927,010
Sabre Global, Inc. ^(a)(b)		7.375	%		09/01/25		4,650,000		5,045,250
Uber Technologies, Inc. ^(b)		8.000	%		11/01/26		11,700,000		12,738,375
									33,519,688
Technology & Electronics — 4.0%
Arches Buyer, Inc. ^(b)		4.250	%		06/01/28		6,150,000		6,228,105
Logan Merger Sub, Inc. ^(b)		5.500	%		09/01/27		9,300,000		9,741,750
MTS Systems Corp. ^(b)		5.750	%		08/15/27		710,000		770,492
NCR Corp. ^(b)		5.000	%		10/01/28		7,000,000		7,385,000
TripAdvisor, Inc. ^(a)(b)		7.000	%		07/15/25		4,675,000		5,049,000
									29,174,347
Telecommunications — 3.1%
Cincinnati Bell, Inc. ^(a)(b)		8.000	%		10/15/25		4,100,000		4,371,625
Frontier Communications Corp. ^(a)(b)		5.875	%		10/15/27		900,000		973,125

	Coupon			Maturity		Shares / Par Value		Fair Value
Telecommunications — 3.1% continued
Frontier Communications Corp. ^(b)		5.000	%		05/01/28	$	900,000	$	938,250
HTA Group Ltd. ^(b)		7.000	%		12/18/25		6,050,000		6,503,750
LCPR Senior Secured Financing Designated Activity Co. ^(b)		6.750	%		10/15/27		4,125,000		4,439,531
Viasat, Inc. ^(b)		5.625	%		09/15/25		5,300,000		5,420,840
									22,647,121
Transportation — 3.6%
Alaska Airlines, Series 2020-1B ^(b)		8.000	%		02/15/27		5,000,000		5,431,256
American Airlines Pass-Through Trust, Series 2013-1 ^(b)		5.625	%		01/15/21		1,379,466		1,376,599
Delta Air Lines, Inc.		2.900	%		10/28/24		12,225,000		12,059,485
Hawaiian Airlines, Inc. ^(b)		11.250	%		09/15/25		5,000,000		5,158,850
Hawaiian Airlines, Inc. ^(b)		7.375	%		09/15/27		1,830,000		1,951,991
U.S. Airways Pass-Through Trust, Series 2012-2		6.750	%		12/03/22		188,384		183,147
									26,161,328

Total Corporate Bonds
(Cost $656,941,646)								$	690,243,377

Securitized — 0.1%
ABS-Other — 0.0% ^(f)
Access Point Financial, Inc., Series 2017-A, Class C ^(b)(d)		5.820	%		04/15/29		250,000		248,474

Consumer — 0.1%
Mariner Finance Issuance Trust, Series 2018-A, Class D ^(b)		6.570	%		11/20/30		275,000		282,311

Total Securitized
(Cost $524,921)								$	530,785

82 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill High Yield Fund
Schedule of Investments (Continued)
December 31, 2020

	Shares		Fair Value
Registered Investment Companies — 5.5%
State Street Institutional US Government Money Market Fund, Premier Class, 0.03% ^(g)		27,245,999	$	27,245,999
State Street Navigator Securities Lending Portfolio I, 0.17% ^(g)(h)		12,446,605		12,446,605
Total Registered Investment Companies
(Cost $39,692,604)			$	39,692,604

Total Investment Securities — 101.0%
(Cost $697,159,171)			$	730,466,766

Liabilities in Excess of Other Assets — (1.0)%				(6,963,818	)

Net Assets — 100.0%			$	723,502,948

^(a)	All or a portion of the security is on loan. The total fair value of the securities on loan as of December 31, 2020 was $12,071,457.

^(b)

^(c)

^(d)	Illiquid security as determined under procedures approved by the Board of Trustees. The total fair value of these securities as of December 31, 2020 was $4,389,194, representing 0.6% of net assets.

^(e)	Security fair valued under procedures established by the Board of Trustees. The total value of these securities is $0.

^(f)	Percentage rounds to less than 0.1%.

^(g)	Rate shown is the 7-day effective yield as of December 31, 2020.

^(h)	This security was purchased with cash collateral from securities held on loan.

A/S — Aktieselskab

ASA — Allmennaksjeselskap

BV — Besloten Vennootschap

LIBOR — London Interbank Offered Rate

plc — Public Limited Company

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 83

Diamond Hill Funds
Tabular Presentation of Schedules of Investments
December 31, 2020 (Unaudited)

Diamond Hill Small Cap Fund
Sector Allocation	% of Net Assets
Financials	27.4%
Industrials	19.5%
Consumer Discretionary	16.8%
Consumer Staples	8.8%
Information Technology	6.3%
Real Estate	4.7%
Communication Services	4.2%
Health Care	3.7%
Materials	3.5%
Utilities	2.6%
Energy	1.3%
Registered Investment Companies	2.0%
Other
Net Other Assets (Liabilities)	-0.8%
	100.0%

Russell 2000 Index Sector Allocation	% of Index
Financials	15.2%
Industrials	15.2%
Consumer Discretionary	13.2%
Consumer Staples	3.2%
Information Technology	14.1%
Real Estate	6.2%
Communication Services	2.3%
Health Care	21.2%
Materials	4.2%
Utilities	3.0%
Energy	2.2%
	100.0%

Diamond Hill Small-Mid Cap Fund
Sector Allocation	% of Net Assets
Financials	24.7%
Industrials	20.3%
Consumer Discretionary	16.1%
Consumer Staples	8.4%
Real Estate	7.8%
Information Technology	4.7%
Utilities	3.8%
Materials	3.3%
Health Care	3.0%
Energy	1.5%
Communication Services	1.2%
Registered Investment Companies	6.3%
Other
Net Other Assets (Liabilities)	-1.1%
	100.0%

Russell 2500 Index Sector Allocation	% of Index
Financials	13.8%
Industrials	15.2%
Consumer Discretionary	12.7%
Consumer Staples	3.1%
Real Estate	7.7%
Information Technology	18.4%
Utilities	2.8%
Materials	5.3%
Health Care	16.0%
Energy	2.1%
Communication Services	2.9%
	100.0%

84 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Funds
Tabular Presentation of Schedules of Investments (Continued)
December 31, 2020 (Unaudited)

Diamond Hill Mid Cap Fund
Sector Allocation	% of Net Assets
Financials	27.0%
Industrials	17.1%
Consumer Discretionary	15.9%
Consumer Staples	8.2%
Real Estate	7.7%
Information Technology	6.8%
Utilities	3.6%
Materials	3.4%
Health Care	1.7%
Communication Services	1.2%
Energy	1.2%
Registered Investment Companies	6.6%
Other
Net Other Assets (Liabilities)	-0.4%
	100.0%

Russell Midcap Index Sector Allocation	% of Index
Financials	11.1%
Industrials	15.1%
Consumer Discretionary	11.6%
Consumer Staples	3.8%
Real Estate	6.9%
Information Technology	20.5%
Utilities	5.1%
Materials	5.4%
Health Care	12.9%
Communication Services	5.0%
Energy	2.6%
	100.0%

Diamond Hill Large Cap Fund
Sector Allocation	% of Net Assets
Financials	27.0%
Consumer Discretionary	14.9%
Consumer Staples	12.6%
Health Care	11.5%
Industrials	7.8%
Communication Services	7.8%
Information Technology	6.6%
Materials	2.6%
Real Estate	2.5%
Energy	2.1%
Utilities	1.0%
Registered Investment Companies	3.5%
Other
Net Other Assets (Liabilities)	0.1%
	100.0%

Russell 1000 Index Sector Allocation	% of Index
Financials	10.4%
Consumer Discretionary	12.9%
Consumer Staples	5.5%
Health Care	13.5%
Industrials	8.8%
Communication Services	10.4%
Information Technology	28.0%
Materials	2.7%
Real Estate	3.0%
Energy	2.2%
Utilities	2.6%
	100.0%

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 85

Diamond Hill Funds
Tabular Presentation of Schedules of Investments (Continued)
December 31, 2020 (Unaudited)

Diamond Hill All Cap Select Fund
Sector Allocation	% of Net Assets
Financials	33.0%
Industrials	19.8%
Consumer Discretionary	13.9%
Consumer Staples	12.3%
Information Technology	5.7%
Materials	5.4%
Health Care	4.7%
Utilities	1.9%
Communication Services	1.2%
Registered Investment Companies	3.3%
Other
Net Other Assets (Liabilities)	-1.2%
	100.0%

Russell 3000 Index Sector Allocation	% of Index
Financials	10.7%
Industrials	9.2%
Consumer Discretionary	13.0%
Consumer Staples	5.3%
Information Technology	27.1%
Materials	2.8%
Health Care	14.0%
Utilities	2.7%
Communication Services	9.9%
Real Estate	3.2%
Energy	2.1%
	100.0%

Diamond Hill Long-Short Fund
Long Portfolio Sector Allocation	% of Net Assets
Financials	29.1%
Health Care	11.3%
Industrials	10.4%
Consumer Discretionary	9.4%
Information Technology	9.4%
Communication Services	9.2%
Consumer Staples	4.9%
Materials	3.6%
Energy	2.8%
Utilities	1.1%
Registered Investment Companies	22.0%

Short Portfolio Sector Allocation	% of Net Assets
Consumer Discretionary	-5.9%
Information Technology	-5.5%
Financials	-4.8%
Industrials	-4.5%
Consumer Staples	-3.8%
Health Care	-1.8%
Utilities	-1.2%
Communication Services	-0.7%
Real Estate	-0.4%
Materials	-0.1%
Other
Segregated Cash With Custodian	29.4%
Net Other Assets (Liabilities)	-13.9%
	100.0%

Russell 1000 Index Sector Allocation	% of Index
Financials	10.4%
Health Care	13.5%
Industrials	8.8%
Consumer Discretionary	12.9%
Information Technology	28.0%
Communication Services	10.4%
Consumer Staples	5.5%
Materials	2.7%
Energy	2.2%
Utilities	2.6%
Real Estate	3.0%
	100.0%

86 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Funds
Tabular Presentation of Schedules of Investments (Continued)
December 31, 2020 (Unaudited)

Diamond Hill Global Fund
Sector Allocation	% of Net Assets
Consumer Staples	23.1%
Communication Services	21.2%
Financials	15.6%
Information Technology	14.4%
Health Care	9.6%
Consumer Discretionary	6.3%
Energy	5.3%
Industrials	3.9%
Registered Investment Companies	1.8%
Other
Net Other Assets (Liabilities)	-1.2%
	100.0%

Morningstar Global Markets Index Sector Allocation	% of Index
Consumer Staples	6.8%
Communication Services	8.5%
Financials	13.6%
Information Technology	20.7%
Health Care	11.7%
Consumer Discretionary	13.3%
Energy	2.9%
Industrials	10.9%
Materials	5.3%
Real Estate	3.3%
Utilities	3.0%
	100.0%

Diamond Hill International Fund
Sector Allocation	% of Net Assets
Communication Services	19.7%
Consumer Staples	16.2%
Financials	15.8%
Consumer Discretionary	14.3%
Information Technology	10.7%
Health Care	9.8%
Industrials	8.4%
Materials	1.3%
Real Estate	1.2%
Registered Investment Companies	2.5%
Other
Net Other Assets (Liabilities)	0.1%
	100.0%

Morningstar Global Markets ex U.S. Index Sector Allocation	% of Index
Communication Services	6.5%
Consumer Staples	8.6%
Financials	17.2%
Consumer Discretionary	13.6%
Information Technology	12.1%
Health Care	9.3%
Industrials	13.2%
Materials	8.5%
Real Estate	3.8%
Energy	3.9%
Utilities	3.3%
	100.0%

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 87

Diamond Hill Funds
Tabular Presentation of Schedules of Investments (Continued)
December 31, 2020 (Unaudited)

Diamond Hill Short Duration Securitized Bond Fund
Sector Allocation	% of Net Assets
Securitized	84.8%
Corporate Credit	1.6%
Registered Investment Companies	13.7%
Other
Net Other Assets (Liabilities)	-0.1%
	100.0%

Bloomberg Barclays U.S. 1-3 Yr. Gov./Credit Index Sector Allocation	% of Index
Treasury	65.6%
Corporate Credit	23.0%
Non-Corporate Credit	7.2%
Agency	4.2%
	100.0%

Diamond Hill Core Bond Fund
Sector Allocation	% of Net Assets
Securitized	63.4%
Treasury	18.8%
Corporate Credit	15.6%
Government Related	0.4%
Registered Investment Companies	7.5%
Other
Net Other Assets (Liabilities)	-5.7%
	100.0%

Bloomberg Barclays U.S. Aggregate Index Sector Allocation	% of Index
Treasury	37.0%
Agency RMBS/CMBS	27.8%
Corporate Credit	27.4%
Non-Corporate Credit	4.6%
Agency	1.7%
Non-Agency RMBS/CMBS	1.2%
Asset-Backed Securities	0.3%
	100.0%

Diamond Hill Corporate Credit Fund
Sector Allocation	% of Net Assets
Financial Services	11.2%
Energy	9.5%
Leisure	9.0%
Retail	8.6%
Health Care	7.7%
Consumer Goods	6.8%
Basic Industry	5.9%
Services	5.4%
Banking	5.0%
Real Estate	4.7%
Technology & Electronics	4.2%
Telecommunications	4.0%
Insurance	3.9%
Transportation	2.9%
Media	2.3%
Automotive	1.9%
Capital Goods	0.5%
Registered Investment Companies	8.0%
Other
Collateralized Debt Obligations	0.1%
Net Other Assets (Liabilities)	-1.6%
	100.0%

ICE BofA U.S. Corporate & High Yield Index Sector Allocation	% of Index
Financial Services	6.7%
Energy	10.3%
Leisure	1.4%
Retail	3.8%
Health Care	9.7%
Consumer Goods	5.8%
Basic Industry	4.8%
Services	1.6%
Banking	14.0%
Real Estate	3.3%
Technology & Electronics	6.9%
Telecommunications	4.6%
Insurance	3.9%
Transportation	2.4%
Media	4.7%
Automotive	2.6%
Capital Goods	5.5%
Utility	8.0%
	100.0%

88 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Funds
Tabular Presentation of Schedules of Investments (Continued)
December 31, 2020 (Unaudited)

Diamond Hill High Yield Fund
Sector Allocation	% of Net Assets
Leisure	13.3%
Energy	12.4%
Financial Services	11.1%
Retail	10.7%
Health Care	6.6%
Real Estate	6.1%
Consumer Goods	6.0%
Services	4.6%
Technology & Electronics	4.0%
Basic Industry	3.8%
Insurance	3.7%
Transportation	3.6%
Telecommunications	3.1%
Automotive	2.3%
Media	1.9%
Banking	1.7%
Capital Goods	0.5%
Securitized	0.1%
Registered Investment Companies	5.5%
Other
Net Other Assets (Liabilities)	-1.0%
	100.0%

ICE BofA U.S. High Yield Index Sector Allocation	% of Index
Leisure	6.2%
Energy	13.4%
Financial Services	4.2%
Retail	4.9%
Health Care	8.9%
Real Estate	4.2%
Consumer Goods	4.9%
Services	4.5%
Technology & Electronics	5.0%
Basic Industry	9.1%
Insurance	1.1%
Transportation	1.5%
Telecommunications	6.8%
Automotive	5.3%
Media	9.0%
Banking	1.3%
Capital Goods	6.5%
Utility	3.2%
	100.0%

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 89

Diamond Hill Funds
Statements of Assets & Liabilities
December 31, 2020

	Small Cap Fund			Small-Mid Cap Fund			Mid Cap Fund
Assets
Investment in unaffiliated securities, at cost	$	319,280,577		$	1,581,076,668		$	199,158,803
Investment in affiliated securities, at cost		—			26,513,922			1,623,042
Investment in unaffiliated securities, at fair value*	$	535,464,854		$	1,949,085,366		$	250,052,556
Investment affiliated securities, at fair value		—			26,643,319			1,626,675
Cash		—			—			—
Cash denominated in foreign currency (Cost $—,$—, $—, $—, $—, $—, $—, $38,699, $—, and $—)		—			—			—
Cash deposits with custodian for securities sold short		—			—			—
Receivable for fund shares issued		260,334			2,538,002			124,784
Receivable for investments sold		—			745,245			99,196
Receivable for dividends and interest		326,327			1,419,559			216,680
Tax reclaims receivable		—			—			—
Prepaid expenses and other assets		—			—			—
Total Assets		536,051,515			1,980,431,491			252,119,891

Liabilities
Investments sold short, at fair value (proceeds $—, $—, $—, $—, $—, $506,570,999, $—, $—, $—, and $—)		—			—			—
Due to custodian		—			—			—
Payable for securities purchased		—			—			—
Payable for fund shares redeemed		4,208,464			2,355,463			1,170,386
Payable for dividend expense on securities sold short		—			—			—
Payable for return of collateral received for securities on loan		—			21,331,083			—
Payable to Investment Adviser		362,145			1,222,579			126,882
Payable to Administrator		75,570			195,211			34,607
Accrued distribution and service fees		31,389			46,843			6,959
Other accrued expenses		200			350			850
Total Liabilities		4,677,768			25,151,529			1,339,684

Net Assets	$	531,373,747		$	1,955,279,962		$	250,780,207

Components of Net Assets
Paid-in capital	$	308,752,921		$	1,595,965,295		$	229,299,780
Distributable earnings		222,620,826			359,314,667			21,480,427
Net Assets	$	531,373,747		$	1,955,279,962		$	250,780,207
Net Assets
Class A Shares	$	117,491,390		$	162,636,598		$	33,177,913
Class C Shares	$	7,090,214		$	15,120,774		$	—
Class I Shares	$	350,374,689		$	889,147,599		$	194,354,401
Class Y Shares	$	56,417,454		$	888,374,991		$	23,247,893
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)
Class A Shares		3,795,368			7,166,974			2,325,569
Class C Shares		272,876			740,195			—
Class I Shares		11,126,855			38,770,092			13,572,561
Class Y Shares		1,789,773			38,647,874			1,618,584
Net Asset Value, offering (except Class A Shares) and redemption price per share:
Class A Shares	$	30.96		$	22.69		$	14.27
Class C Shares ^(A)	$	25.98		$	20.43		$	—
Class I Shares	$	31.49		$	22.93		$	14.32
Class Y Shares	$	31.52		$	22.99		$	14.36
Maximum Offering Price
Maximum sales charge — Class A Shares		5.00	%		5.00	%		5.00	%
(100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent) per share Class A Shares	$	32.59		$	23.88		$	15.02
* Includes value of securities on loan	$	18,781,723		$	29,051,172		$	—

^(A)	Redemption price per share varies based on the holding period.

See accompanying Notes to Financial Statements.

90 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Large Cap Fund			All Cap Select Fund			Long-Short Fund			Global Fund			International Fund			Short Duration Securitized Bond Fund			Core Bond Fund

$	5,899,768,269		$	237,236,779		$	1,594,062,816		$	13,596,676		$	14,138,552		$	1,117,132,367		$	346,822,050
	—			—			34,606,402			—			—			—			—
$	8,299,348,734		$	329,795,641		$	2,293,145,341		$	16,348,725		$	16,841,425		$	1,133,124,199		$	356,534,296
	—			—			34,836,878			—			—			—			—
	—			—			—			—			—			2,467,147			122,721
	—			—			—			—			43,208			—			—
	—			—			604,194,749			—			—			—			—
	20,869,629			72,483			1,325,990			—			—			5,654,839			194,922
	—			—			16,804,716			—			—			148,824			26,017
	7,631,574			218,705			1,053,706			15,424			10,254			1,881,446			1,151,646
	—			—			733			3,716			4,094			—			—
	465			90			—			—			—			—			—
	8,327,850,402			330,086,919			2,951,362,113			16,367,865			16,898,981			1,143,276,455			358,029,602


	—			—			590,817,468			—			—			—			—
	—			—			—			51			—			—			—
	—			991,218			3,573,634			164,275			—			6,799,802			2,749,613
	11,428,105			112,799			3,888,077			—			—			732,221			90,535
	—			—			876,020			—			—			—			—
	—			2,799,197			294,518,354			38,200			20,301			2,801,555			17,812,661
	3,462,520			188,895			1,559,599			8,633			9,027			325,484			85,505
	973,561			32,370			295,530			890			1,122			141,156			42,647
	220,252			4,824			55,479			33			70			10,106			3,591
	200			200			4,350			575			675			200			300
	16,084,638			4,129,503			895,588,511			212,657			31,195			10,810,524			20,784,852

$	8,311,765,764		$	325,957,416		$	2,055,773,602		$	16,155,208		$	16,867,786		$	1,132,465,931		$	337,244,750


$	5,842,406,900		$	236,499,569		$	1,450,703,673		$	15,498,907		$	14,454,612		$	1,123,738,887		$	327,433,988
	2,469,358,864			89,457,847			605,069,929			656,301			2,413,174			8,727,044			9,810,762
$	8,311,765,764		$	325,957,416		$	2,055,773,602		$	16,155,208		$	16,867,786		$	1,132,465,931		$	337,244,750

$	762,677,862		$	10,206,723		$	162,270,817		$	159,663		$	338,289		$	47,059,256		$	17,023,702
$	68,930,188		$	3,243,528		$	24,428,176		$	—		$	—		$	—		$	—
$	5,140,496,523		$	171,262,731		$	1,794,063,227		$	2,218,413		$	3,913,446		$	897,231,818		$	260,364,635
$	2,339,661,191		$	141,244,434		$	75,011,382		$	13,777,132		$	12,616,051		$	188,174,857		$	59,856,413

	25,069,274			553,914			6,268,401			10,530			21,860			4,664,246			1,584,541
	2,410,254			190,869			1,082,133			—			—			—			—
	168,155,471			9,205,969			67,497,107			145,670			252,383			88,916,782			24,241,073
	76,485,603			7,567,693			2,810,085			904,804			813,356			18,629,922			5,568,291

$	30.42		$	18.43		$	25.89		$	15.16		$	15.48		$	10.09		$	10.74
$	28.60		$	16.99		$	22.57		$	—		$	—		$	—		$	—
$	30.57		$	18.60		$	26.58		$	15.23		$	15.51		$	10.09		$	10.74
$	30.59		$	18.66		$	26.69		$	15.23		$	15.51		$	10.10		$	10.75

	5.00	%		5.00	%		5.00	%		5.00	%		5.00	%		2.25	%		3.50	%
$	32.02		$	19.40		$	27.25		$	15.96		$	16.29		$	10.32		$	11.13
$	101,354,889		$	8,664,569		$	289,541,747		$	37,272		$	153,943		$	2,727,520		$	30,526,114

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 91

Diamond Hill Funds
Statements of Assets & Liabilities (Continued)
December 31, 2020

	Corporate Credit Fund			High Yield Fund
Assets
Investment in unaffiliated securities, at cost	$	1,980,395,410		$	697,159,171
Investment in unaffiliated securities, at fair value*	$	2,051,061,319		$	730,466,766
Receivable for fund shares issued		4,465,271			4,476,423
Receivable for investments sold		6,518,032			6,858,326
Receivable for dividends and interest		25,497,093			10,236,615
Prepaid expenses and other assets		371			—
Total Assets		2,087,542,086			752,038,130

Liabilities
Payable for securities purchased		15,993,449			14,353,788
Payable for fund shares redeemed		1,174,701			1,332,588
Payable for return of collateral received for securities on loan		49,171,063			12,446,605
Payable to Investment Adviser		743,344			292,193
Payable to Administrator		277,026			98,009
Accrued distribution and service fees		58,750			8,099
Other accrued expenses		4,800			3,900
Total Liabilities		67,423,133			28,535,182

Net Assets	$	2,020,118,953		$	723,502,948

Components of Net Assets
Paid-in capital	$	1,944,065,432		$	685,698,503
Distributable earnings		76,053,521			37,804,445
Net Assets	$	2,020,118,953		$	723,502,948
Net Assets
Class A Shares	$	161,659,192		$	39,495,892
Class C Shares	$	29,510,273		$	—
Class I Shares	$	1,724,397,164		$	651,836,148
Class Y Shares	$	104,552,324		$	32,170,908
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)
Class A Shares		13,688,524			3,464,984
Class C Shares		2,509,454			—
Class I Shares		146,533,850			57,153,955
Class Y Shares		8,888,640			2,817,698
Net Asset Value, offering (except Class A Shares) and redemption price per share:
Class A Shares	$	11.81		$	11.40
Class C Shares ^(A)	$	11.76		$	—
Class I Shares	$	11.77		$	11.40
Class Y Shares	$	11.76		$	11.42
Maximum Offering Price
Maximum sales charge — Class A Shares		3.50	%		3.50	%
(100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent) per share Class A Shares	$	12.24		$	11.81
* Includes value of securities on loan	$	47,761,938		$	12,071,457

^(A)	Redemption price per share varies based on the holding period.

See accompanying Notes to Financial Statements.

92 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Funds
Statements of Operations
For the year ended December 31, 2020

	Small Cap Fund			Small-Mid Cap Fund			Mid Cap Fund			Large Cap Fund
Investment Income
Dividends	$	6,641,465		$	24,340,838		$	3,229,225		$	132,894,697
Income distributions from affiliated investments		—			956,341			57,541			—
Securities lending income		138,650			283,314			10,334			132,581
Foreign taxes withheld		—			(9,169	)		(3,057	)		(49,509	)
Total Investment Income		6,780,115			25,571,324			3,294,043			132,977,769

Expenses
Investment advisory fees		4,151,660			13,658,120			1,334,804			33,199,352
Administration fees		861,113			2,154,397			362,684			9,867,725
Distribution and service fees — Class A		296,939			359,915			71,269			2,525,244
Distribution and service fees — Class C		80,871			163,269			—			676,573
Other fees		2,544			5,688			7,573			15,991
Total Expenses		5,393,127			16,341,389			1,776,330			46,284,885
Advisory fees waived by Adviser		—			(100,162	)		(6,076	)		—
Net Expenses		5,393,127			16,241,227			1,770,254			46,284,885

Net Investment Income		1,386,988			9,330,097			1,523,789			86,692,884

Realized and Unrealized Gains (Losses) on Investments
Net realized gains (losses) on investment transactions		27,434,258			3,503,669			(28,759,549	)		294,727,927
Net realized losses on sales from affiliated investments		—			(9,028	)		(75,396	)		—
Net realized gains from in-kind redemptions		—			16,852,506			—			—
Net change in unrealized appreciation (depreciation) on unaffiliated investments		(59,087,783	)		(113,851,382	)		23,470,736			365,974,269
Net change in unrealized appreciation (depreciation) on affiliated investments		—			(55,484	)		(870	)		—
Net Realized and Unrealized (Losses) Gains on Investments		(31,653,525	)		(93,559,719	)		(5,365,079	)		660,702,196

Change in Net Assets from Operations	$	(30,266,537	)	$	(84,229,622	)	$	(3,841,290	)	$	747,395,080

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 93

Diamond Hill Funds
Statements of Operations
For the year ended December 31, 2020

	All Cap Select Fund			Long-Short Fund			Global Fund			International Fund
Investment Income
Dividends	$	3,844,741		$	42,294,637		$	287,410		$	233,102
Income distributions from affiliated investments		—			1,679,197			—			—
Rebates on short sales, net of fees		—			1,204,001			—			—
Securities lending income		26,756			1,255,798			1,994			1,572
Foreign taxes withheld		(3,886	)		—			(12,936	)		(23,121	)
Total Investment Income		3,867,611			46,433,633			276,468			211,553

Expenses
Investment advisory fees		1,816,040			21,823,190			108,366			86,195
Administration fees		318,074			4,045,476			13,024			10,125
Distribution and service fees — Class A		21,699			430,590			293			561
Distribution and service fees — Class C		30,629			289,907			—			—
Other fees		2,184			20,212			3,769			4,059
Dividend expense		—			11,155,084			—			—
Total Expenses		2,188,626			37,764,459			125,452			100,940
Advisory fees waived by Adviser		—			(172,953	)		—			—
Net Expenses		2,188,626			37,591,506			125,452			100,940

Net Investment Income		1,678,985			8,842,127			151,016			110,613

Realized and Unrealized Gains (Losses) on Investments
Net realized gains (losses) on investment transactions		2,068,554			63,273,106			(1,595,384	)		(295,613	)
Net realized losses on closed short positions		—			(59,320,359	)		—			—
Net realized losses on sales from affiliated investments		—			(1,126,909	)		—			—
Net realized losses on foreign currency transactions		—			(56	)		(5,796	)		(2,926	)
Net change in unrealized appreciation (depreciation) on unaffiliated investments and foreign currency translations		47,293,692			(261,687,568	)		549,269			1,492,806
Net changes in unrealized appreciation (depreciation) on affiliated investments		—			(148,435	)		—			—
Net Realized and Unrealized (Losses) Gains on Investments		49,362,246			(259,010,221	)		(1,051,911	)		1,194,267

Change in Net Assets from Operations	$	51,041,231		$	(250,168,094	)	$	(900,895	)	$	1,304,880

See accompanying Notes to Financial Statements.

94 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Funds
Statements of Operations
For the year ended December 31, 2020

	Short Duration Securitized Bond Fund			Core Bond Fund		Corporate Credit Fund			High Yield Fund
Investment Income
Dividends	$	360,147		$	33,627	$	593,448		$	42,206
Income distributions from affiliated investments		—			—		592,741			—
Securities lending income		17,502			28,072		123,585			14,861
Interest		31,201,207			5,652,216		75,142,095			25,205,671
Total Investment Income		31,578,856			5,713,915		76,451,869			25,262,738

Expenses
Investment advisory fees		3,186,352			618,211		6,347,119			1,944,083
Administration fees		1,336,808			281,393		2,364,887			651,610
Distribution and service fees — Class A		128,036			30,242		345,439			63,249
Distribution and service fees — Class C		—			—		280,014			—
Borrowing costs		53,171			—		—			—
Other fees		3,156			1,962		20,685			15,948
Total Expenses		4,707,523			931,808		9,358,144			2,674,890
Advisory fees waived by Adviser		—			—		(60,152	)		—
Net Expenses		4,707,523			931,808		9,297,992			2,674,890

Net Investment Income		26,871,333			4,782,107		67,153,877			22,587,848

Realized and Unrealized Gains (Losses) on Investments
Net realized gains (losses) on investment transactions		(7,018,420	)		532,828		36,251,469			31,258,338
Net realized losses on sales from affiliated investments		—			—		(4,046,880	)		—
Net change in unrealized appreciation (depreciation) on unaffiliated investments		14,436,789			8,109,845		57,026,433			31,260,240
Net change in unrealized appreciation (depreciation) on affiliated investments		—			—		(149,053	)		—
Net Realized and Unrealized (Losses) Gains on Investments		7,418,369			8,642,673		89,081,969			62,518,578

Change in Net Assets from Operations	$	34,289,702		$	13,424,780	$	156,235,846		$	85,106,426

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 95

Diamond Hill Funds
Statements of Changes in Net Assets

	Small Cap Fund						Small-Mid Cap Fund
	For the year ended December 31, 2020			For the year ended December 31, 2019			For the year ended December 31, 2020			For the year ended December 31, 2019
From Operations
Net investment income	$	1,386,988		$	3,886,777		$	9,330,097		$	12,086,663
Net realized gains on investment transactions		27,434,258			43,407,684			20,356,175			108,293,002
Net realized gains (losses) on sales from affiliated investments		—			71,515			(9,028	)		—
Net change in unrealized appreciation (depreciation) on investments		(59,087,783	)		134,547,685			(113,906,866	)		427,060,978
Change in Net Assets from Operations		(30,266,537	)		181,913,661			(84,229,622	)		547,440,643

Distributions to Shareholders
Class A		(375,118	)		(11,081,916	)		(794,357	)		(8,510,329	)
Class C		—			(914,244	)		(7,160	)		(1,042,724	)
Class I		(2,149,700	)		(32,495,066	)		(6,470,465	)		(53,022,453	)
Class Y		(400,788	)		(7,210,933	)		(7,445,410	)		(56,784,896	)
Change in Net Assets from Distributions to Shareholders		(2,925,606	)		(51,702,159	)		(14,717,393	)		(119,360,402	)
Change in Net Assets from Capital Transactions		(188,317,587	)		(397,795,555	)		(382,235,477	)		4,058,507

Total Change in Net Assets		(221,509,730	)		(267,584,053	)		(481,182,492	)		432,138,748

Net Assets:
Beginning of year		752,883,477			1,020,467,530			2,436,462,454			2,004,323,706
End of year	$	531,373,747		$	752,883,477		$	1,955,279,962		$	2,436,462,454

See accompanying Notes to Financial Statements.

96 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Funds
Statements of Changes in Net Assets

	Small Cap Fund						Small-Mid Cap Fund
	For the year ended December 31, 2020			For the year ended December 31, 2019			For the year ended December 31, 2020			For the year ended December 31, 2019
Capital Transactions
Class A
Proceeds from shares sold	$	23,733,959		$	40,572,163		$	24,448,991		$	19,071,426
Reinvested distributions		314,746			9,218,750			783,648			8,403,243
Payments for shares redeemed		(63,068,608	)		(127,190,166	)		(44,318,189	)		(41,483,324	)
Change in Net Assets from Class A Share Transactions		(39,019,903	)		(77,399,253	)		(19,085,550	)		(14,008,655	)
Class C
Proceeds from shares sold		611,220			180,767			649,284			1,276,636
Reinvested distributions		—			868,236			6,509			943,392
Payments for shares redeemed		(5,650,487	)		(15,421,215	)		(7,579,456	)		(9,570,431	)
Change in Net Assets from Class C Share Transactions		(5,039,267	)		(14,372,212	)		(6,923,663	)		(7,350,403	)
Class I
Proceeds from shares sold		103,453,931			102,690,833			274,659,187			166,954,890
Reinvested distributions		1,994,067			29,931,706			4,986,493			45,265,874
Payments for shares redeemed		(205,621,642	)		(377,598,787	)		(434,226,524	)		(210,272,651	)
Change in Net Assets from Class I Share Transactions		(100,173,644	)		(244,976,248	)		(154,580,844	)		1,948,113
Class Y
Proceeds from shares sold		13,656,080			21,087,012			132,544,137			132,509,204
Reinvested distributions		400,779			7,178,960			6,965,221			54,789,928
Payments for shares redeemed		(58,141,632	)		(89,313,814	)		(341,154,778	)		(163,829,680	)
Change in Net Assets from Class Y Share Transactions		(44,084,773	)		(61,047,842	)		(201,645,420	)		23,469,452
Change in Net Assets from Capital Transactions	$	(188,317,587	)	$	(397,795,555	)	$	(382,235,477	)	$	4,058,507

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 97

Diamond Hill Funds
Statements of Changes in Net Assets

	Small Cap Fund						Small-Mid Cap Fund
	For the year ended December 31, 2020			For the year ended December 31, 2019			For the year ended December 31, 2020			For the year ended December 31, 2019
Share Transactions:
Class A
Issued		1,036,142			1,333,737			1,410,527			887,064
Reinvested		10,186			296,221			34,702			375,472
Redeemed		(2,544,906	)		(4,136,880	)		(2,426,981	)		(1,937,682	)
Change in Shares Outstanding		(1,498,578	)		(2,506,922	)		(981,752	)		(675,146	)
Class C
Issued		31,339			6,934			38,307			64,646
Reinvested		—			33,444			329			47,005
Redeemed		(271,175	)		(594,042	)		(450,222	)		(489,352	)
Change in Shares Outstanding		(239,836	)		(553,664	)		(411,586	)		(377,701	)
Class I
Issued		4,534,386			3,294,020			15,498,884			7,731,393
Reinvested		63,445			943,203			218,333			1,997,774
Redeemed		(8,234,376	)		(12,106,669	)		(24,395,824	)		(9,684,134	)
Change in Shares Outstanding		(3,636,545	)		(7,869,446	)		(8,678,607	)		45,033
Class Y
Issued		569,955			665,331			7,249,838			6,120,553
Reinvested		12,739			225,846			304,225			2,411,139
Redeemed		(2,096,177	)		(2,849,504	)		(19,138,809	)		(7,506,290	)
Change in Shares Outstanding		(1,513,483	)		(1,958,327	)		(11,584,746	)		1,025,402
Change in Total Shares Outstanding		(6,888,442	)		(12,888,359	)		(21,656,691	)		17,588

See accompanying Notes to Financial Statements.

98 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Funds
Statements of Changes in Net Assets

	Mid Cap Fund						Large Cap Fund
	For the year ended December 31, 2020			For the year ended December 31, 2019			For the year ended December 31, 2020			For the year ended December 31, 2019
From Operations
Net investment income	$	1,523,789		$	1,127,923		$	86,692,884		$	76,750,034
Net realized gains (losses) on investment transactions		(28,759,549	)		4,287,802			294,727,927			153,325,517
Net realized losses on sales from affiliated investments		(75,396	)		—			—			—
Net change in unrealized appreciation (depreciation) on investments		23,469,866			29,195,781			365,974,269			1,396,404,458
Change in Net Assets from Operations		(3,841,290	)		34,611,506			747,395,080			1,626,480,009

Distributions to Shareholders
Class A		(175,191	)		(565,161	)		(22,298,991	)		(54,024,543	)
Class C		—			—			(1,861,129	)		(3,228,719	)
Class I		(1,482,682	)		(3,624,271	)		(174,347,503	)		(179,345,975	)
Class Y		(213,621	)		(428,127	)		(80,994,298	)		(72,817,302	)
Change in Net Assets from Distributions to Shareholders		(1,871,494	)		(4,617,559	)		(279,501,921	)		(309,416,539	)
Change in Net Assets from Capital Transactions		26,506,292			96,102,055			1,071,050,896			369,588,329

Total Change in Net Assets		20,793,508			126,096,002			1,538,944,055			1,686,651,799

Net Assets:
Beginning of year		229,986,699			103,890,697			6,772,821,709			5,086,169,910
End of year	$	250,780,207		$	229,986,699		$	8,311,765,764		$	6,772,821,709

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 99

Diamond Hill Funds
Statements of Changes in Net Assets

	Mid Cap Fund						Large Cap Fund
	For the year ended December 31, 2020			For the year ended December 31, 2019			For the year ended December 31, 2020			For the year ended December 31, 2019
Capital Transactions
Class A
Proceeds from shares sold	$	13,431,553		$	13,900,679		$	149,464,843		$	130,379,141
Reinvested distributions		164,900			524,072			21,250,713			53,321,788
Payments for shares redeemed		(13,070,139	)		(8,830,284	)		(690,852,940	)		(234,420,865	)
Change in Net Assets from Class A Share Transactions		526,314			5,594,467			(520,137,384	)		(50,719,936	)
Class C
Proceeds from shares sold		—			—			6,876,257			13,866,584
Reinvested distributions		—			—			1,704,162			2,984,735
Payments for shares redeemed		—			—			(24,373,041	)		(36,940,608	)
Change in Net Assets from Class C Share Transactions		—			—			(15,792,622	)		(20,089,289	)
Class I
Proceeds from shares sold		150,185,900			144,323,693			2,084,600,703			1,280,093,450
Reinvested distributions		1,419,804			3,394,634			131,982,936			130,477,136
Payments for shares redeemed		(127,460,056	)		(44,342,499	)		(1,275,039,176	)		(1,273,672,485	)
Change in Net Assets from Class I Share Transactions		24,145,648			103,375,828			941,544,463			136,898,101
Class Y
Proceeds from shares sold		10,272,471			6,533,676			975,327,302			419,841,438
Reinvested distributions		177,984			428,127			73,568,411			69,292,612
Payments for shares redeemed		(8,616,125	)		(19,830,043	)		(383,459,274	)		(185,634,597	)
Change in Net Assets from Class Y Share Transactions		1,834,330			(12,868,240	)		665,436,439			303,499,453
Change in Net Assets from Capital Transactions	$	26,506,292		$	96,102,055		$	1,071,050,896		$	369,588,329

See accompanying Notes to Financial Statements.

100 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Funds
Statements of Changes in Net Assets

	Mid Cap Fund						Large Cap Fund
	For the year ended December 31, 2020			For the year ended December 31, 2019			For the year ended December 31, 2020			For the year ended December 31, 2019
Share Transactions:
Class A
Issued		1,216,594			1,011,685			5,690,207			4,792,494
Reinvested		11,690			36,074			711,742			1,847,890
Redeemed		(1,087,987	)		(636,358	)		(24,420,335	)		(8,612,249	)
Change in Shares Outstanding		140,297			411,401			(18,018,386	)		(1,971,865	)
Class C
Issued		—			—			272,394			540,314
Reinvested		—			—			61,118			110,194
Redeemed		—			—			(1,003,488	)		(1,468,691	)
Change in Shares Outstanding		—			—			(669,976	)		(818,183	)
Class I
Issued		12,972,552			10,415,779			79,573,495			47,317,625
Reinvested		99,970			232,262			4,378,428			4,483,819
Redeemed		(11,587,276	)		(3,178,229	)		(49,291,182	)		(47,651,984	)
Change in Shares Outstanding		1,485,246			7,469,812			34,660,741			4,149,460
Class Y
Issued		867,672			469,310			34,446,877			15,230,940
Reinvested		12,497			29,197			2,436,886			2,377,859
Redeemed		(649,898	)		(1,433,038	)		(14,332,012	)		(6,736,458	)
Change in Shares Outstanding		230,271			(934,531	)		22,551,751			10,872,341
Change in Total Shares Outstanding		1,855,814			6,946,682			38,524,130			12,231,753

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 101

Diamond Hill Funds
Statements of Changes in Net Assets

	All Cap Select Fund						Long-Short Fund
	For the year ended December 31, 2020			For the year ended December 31, 2019			For the year ended December 31, 2020			For the year ended December 31, 2019
From Operations
Net investment income	$	1,678,985		$	1,696,753		$	8,842,127		$	29,304,389
Net realized gains (losses) on investment transactions		2,068,554			(5,032,474	)		63,273,106			258,373,667
Net realized losses on closed short positions		—			—			(59,320,359	)		(10,450,631	)
Net realized gains (losses) on sales from affiliated investments		—			—			(1,126,909	)		217,544
Net realized losses on foreign currency transactions		—			—			(56	)		—
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		47,293,692			63,270,956			(261,836,003	)		475,912,701
Change in Net Assets from Operations		51,041,231			59,935,235			(250,168,094	)		753,357,670

Distributions to Shareholders
Class A		(28,543	)		(212,393	)		(1,582,517	)		(14,200,792	)
Class C		—			(96,609	)		(223,421	)		(2,603,566	)
Class I		(889,515	)		(2,860,902	)		(21,897,354	)		(182,341,938	)
Class Y		(872,601	)		(1,564,705	)		(982,487	)		(18,201,675	)
Change in Net Assets from Distributions to Shareholders		(1,790,659	)		(4,734,609	)		(24,685,779	)		(217,347,971	)
Change in Net Assets from Capital Transactions		4,357,128			21,447,359			(1,197,389,878	)		(602,354,115	)

Total Change in Net Assets		53,607,700			76,647,985			(1,472,243,751	)		(66,344,416	)

Net Assets:
Beginning of year		272,349,716			195,701,731			3,528,017,353			3,594,361,769
End of year	$	325,957,416		$	272,349,716		$	2,055,773,602		$	3,528,017,353

See accompanying Notes to Financial Statements.

102 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Funds
Statements of Changes in Net Assets

	All Cap Select Fund						Long-Short Fund
	For the year ended December 31, 2020			For the year ended December 31, 2019			For the year ended December 31, 2020			For the year ended December 31, 2019
Capital Transactions
Class A
Proceeds from shares sold	$	887,231		$	2,713,138		$	25,128,153		$	68,264,153
Reinvested distributions		26,209			202,386			1,385,332			12,806,230
Payments for shares redeemed		(2,697,607	)		(3,246,105	)		(91,047,343	)		(62,919,872	)
Net assets received in conjunction with fund merger		—			—			5,435,645			—
Change in Net Assets from Class A Share Transactions		(1,784,167	)		(330,581	)		(59,098,213	)		18,150,511
Class C
Proceeds from shares sold		110,353			490,191			1,481,104			2,181,254
Reinvested distributions		—			86,185			210,563			2,322,234
Payments for shares redeemed		(1,843,071	)		(4,283,014	)		(16,999,894	)		(54,901,135	)
Net assets received in conjunction with fund merger		—			—			762,183			—
Change in Net Assets from Class C Share Transactions		(1,732,718	)		(3,706,638	)		(14,546,044	)		(50,397,647	)
Class I
Proceeds from shares sold		38,513,095			30,864,663			483,242,457			654,036,936
Reinvested distributions		874,867			2,785,198			17,182,498			132,497,687
Payments for shares redeemed		(46,712,143	)		(28,499,677	)		(1,457,248,575	)		(1,398,453,685	)
Net assets received in conjunction with fund merger		—			—			12,333,406			—
Change in Net Assets from Class I Share Transactions		(7,324,181	)		5,150,184			(944,490,214	)		(611,919,062	)
Class Y
Proceeds from shares sold		30,166,804			30,239,702			12,232,813			372,508,150
Reinvested distributions		832,932			1,537,009			667,666			13,026,467
Payments for shares redeemed		(15,801,542	)		(11,442,317	)		(208,868,989	)		(343,722,534	)
Net assets received in conjunction with fund merger		—			—			16,713,103			—
Change in Net Assets from Class Y Share Transactions		15,198,194			20,334,394			(179,255,407	)		41,812,083
Change in Net Assets from Capital Transactions	$	4,357,128		$	21,447,359		$	(1,197,389,878	)	$	(602,354,115	)

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 103

Diamond Hill Funds
Statements of Changes in Net Assets

	All Cap Select Fund						Long-Short Fund
	For the year ended December 31, 2020			For the year ended December 31, 2019			For the year ended December 31, 2020			For the year ended December 31, 2019
Share Transactions:
Class A
Issued		62,432			182,077			1,072,538			2,587,425
Reinvested		1,429			12,578			54,303			486,718
Redeemed		(193,208	)		(220,262	)		(4,006,508	)		(2,444,510	)
Received in conjunction with fund merger		—			—			226,265			—
Change in Shares Outstanding		(129,347	)		(25,607	)		(2,653,402	)		629,633
Class C
Issued		8,726			35,925			70,563			94,412
Reinvested		—			5,780			9,498			101,142
Redeemed		(134,671	)		(312,776	)		(842,802	)		(2,369,257	)
Received in conjunction with fund merger		—			—			36,363			—
Change in Shares Outstanding		(125,945	)		(271,071	)		(726,378	)		(2,173,703	)
Class I
Issued		3,286,070			2,083,187			20,035,736			24,748,870
Reinvested		47,239			171,608			653,624			4,901,190
Redeemed		(3,477,940	)		(1,911,294	)		(63,402,777	)		(53,316,381	)
Received in conjunction with fund merger		—			—			499,138			—
Change in Shares Outstanding		(144,631	)		343,501			(42,214,279	)		(23,666,321	)
Class Y
Issued		2,233,911			1,917,982			484,890			14,132,854
Reinvested		44,829			94,411			25,279			479,280
Redeemed		(1,062,608	)		(778,981	)		(9,140,669	)		(12,987,277	)
Received in conjunction with fund merger		—			—			672,947			—
Change in Shares Outstanding		1,216,132			1,233,412			(7,957,553	)		1,624,857
Change in Total Shares Outstanding		816,209			1,280,235			(53,551,612	)		(23,585,534	)

See accompanying Notes to Financial Statements.

104 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Funds
Statements of Changes in Net Assets

	Global Fund						International Fund
	For the year ended December 31, 2020			For the year ended December 31, 2019			For the year ended December 31, 2020			For the period ended December 31, 2019^(A)
From Operations
Net investment income	$	151,016		$	238,174		$	110,613		$	41,735
Net realized gains (losses) on investment transactions		(1,595,384	)		(545,811	)		(295,613	)		96,557
Net realized losses on foreign currency transactions		(5,796	)		(2,919	)		(2,926	)		(4,314	)
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		549,269			5,007,625			1,492,806			988,061
Change in Net Assets from Operations		(900,895	)		4,697,069			1,304,880			1,122,039

Distributions to Shareholders
Class A		(983	)		(849	)		(2,988	)		(143	)
Class I		(14,606	)		(63,955	)		(41,683	)		(13,473	)
Class Y		(123,476	)		(175,824	)		(144,229	)		(38,282	)
Change in Net Assets from Distributions to Shareholders		(139,065	)		(240,628	)		(188,900	)		(51,898	)
Change in Net Assets from Capital Transactions		(4,659,826	)		2,679,247			2,261,513			12,420,152

Total Change in Net Assets		(5,699,786	)		7,135,688			3,377,493			13,490,293

Net Assets:
Beginning of period		21,854,994			14,719,306			13,490,293			—
End of period	$	16,155,208		$	21,854,994		$	16,867,786		$	13,490,293

^(A)	Inception date of the Fund is June 28, 2019. Fund commenced operations on July 1, 2019.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 105

Diamond Hill Funds
Statements of Changes in Net Assets

	Global Fund						International Fund
	For the year ended December 31, 2020			For the year ended December 31, 2019			For the year ended December 31, 2020			For the period ended December 31, 2019 ^(A)
Capital Transactions
Class A
Proceeds from shares sold	$	74,461		$	64,243		$	260,824		$	43,301
Reinvested distributions		983			849			2,988			143
Payments for shares redeemed		(36,612	)		(41,469	)		(34,822	)		—
Change in Net Assets from Class A Share Transactions		38,832			23,623			228,990			43,444
Class I
Proceeds from shares sold		583,366			1,307,952			1,739,698			748,412
Reinvested distributions		14,606			63,955			41,683			13,473
Payments for shares redeemed		(3,728,266	)		(966,146	)		(2,038,253	)		(1,223,590	)
Received in conjunction with fund reorganization		—			—			—			3,996,233
Change in Net Assets from Class I Share Transactions		(3,130,294	)		405,761			(256,872	)		3,534,528
Class Y
Proceeds from shares sold		314,490			2,115,001			2,752,361			8,803,963
Reinvested distributions		123,476			175,824			144,229			38,282
Payments for shares redeemed		(2,006,330	)		(40,962	)		(607,195	)		(65	)
Change in Net Assets from Class Y Share Transactions		(1,568,364	)		2,249,863			2,289,395			8,842,180
Change in Net Assets from Capital Transactions	$	(4,659,826	)	$	2,679,247		$	2,261,513		$	12,420,152

^(A)	Inception date of the Fund is June 28, 2019. Fund commenced operations on July 1, 2019.

See accompanying Notes to Financial Statements.

106 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Funds
Statements of Changes in Net Assets

	Global Fund						International Fund
	For the year ended December 31, 2020			For the year ended December 31, 2019			For the year ended December 31, 2020			For the period ended December 31, 2019 ^(A)
Share Transactions:
Class A
Issued		6,083			4,785			20,908			3,086
Reinvested		65			57			196			10
Redeemed		(2,972	)		(3,103	)		(2,340	)		—
Change in Shares Outstanding		3,176			1,739			18,764			3,096
Class I
Issued		38,969			94,181			133,427			54,023
Reinvested		958			4,249			2,713			923
Redeemed		(306,392	)		(66,115	)		(144,348	)		(89,355	)
Received in conjunction with fund reorganization		—			—			—			295,000
Change in Shares Outstanding		(266,465	)		32,315			(8,208	)		260,591
Class Y
Issued		22,743			146,805			197,656			652,121
Reinvested		8,102			11,675			9,375			2,622
Redeemed		(154,682	)		(2,988	)		(48,413	)		(5	)
Change in Shares Outstanding		(123,837	)		155,492			158,618			654,738
Change in Total Shares Outstanding		(387,126	)		189,546			169,174			918,425

^(A)	Inception date of the Fund is June 28, 2019. Fund commenced operations on July 1, 2019.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 107

Diamond Hill Funds
Statements of Changes in Net Assets

	Short Duration Securitized Bond Fund						Core Bond Fund
	For the year ended December 31, 2020			For the year ended December 31, 2019			For the year ended December 31, 2020			For the year ended December 31, 2019
From Operations
Net investment income	$	26,871,333		$	27,371,810		$	4,782,107		$	2,229,170
Net realized gains (losses) on investment transactions		(7,018,420	)		1,015,899			532,828			60,911
Net change in unrealized appreciation (depreciation) on investments		14,436,789			2,725,507			8,109,845			2,528,695
Change in Net Assets from Operations		34,289,702			31,113,216			13,424,780			4,818,776

Distributions to Shareholders
Class A		(1,533,265	)		(1,319,478	)		(247,377	)		(82,564	)
Class I		(22,083,714	)		(16,872,294	)		(3,229,425	)		(967,749	)
Class Y		(6,492,319	)		(9,988,734	)		(1,529,783	)		(1,272,843	)
Change in Net Assets from Distributions to Shareholders		(30,109,298	)		(28,180,506	)		(5,006,585	)		(2,323,156	)
Change in Net Assets from Capital Transactions		319,626,459			226,459,319			206,778,242			64,289,996

Total Change in Net Assets		323,806,863			229,392,029			215,196,437			66,785,616

Net Assets:
Beginning of year		808,659,068			579,267,039			122,048,313			55,262,697
End of year	$	1,132,465,931		$	808,659,068		$	337,244,750		$	122,048,313

See accompanying Notes to Financial Statements.

108 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Funds
Statements of Changes in Net Assets

	Short Duration Securitized Bond Fund						Core Bond Fund
	For the year ended December 31, 2020			For the year ended December 31, 2019			For the year ended December 31, 2020			For the year ended December 31, 2019
Capital Transactions
Class A
Proceeds from shares sold	$	36,648,916		$	48,113,995		$	13,873,310		$	1,354,031
Reinvested distributions		1,526,415			1,313,656			246,004			81,833
Payments for shares redeemed		(45,846,520	)		(12,494,211	)		(1,142,423	)		(963,018	)
Change in Net Assets from Class A Share Transactions		(7,671,189	)		36,933,440			12,976,891			472,846
Class I
Proceeds from shares sold		745,458,041			319,471,858			216,896,893			63,249,959
Reinvested distributions		14,066,984			10,587,671			2,860,509			783,275
Payments for shares redeemed		(394,978,915	)		(113,699,802	)		(30,497,567	)		(12,979,958	)
Change in Net Assets from Class I Share Transactions		364,546,110			216,359,727			189,259,835			51,053,276
Class Y
Proceeds from shares sold		109,069,427			106,606,092			14,157,339			13,676,984
Reinvested distributions		6,307,783			9,667,968			1,358,200			1,272,843
Payments for shares redeemed		(152,625,672	)		(143,107,908	)		(10,974,023	)		(2,185,953	)
Change in Net Assets from Class Y Share Transactions		(37,248,462	)		(26,833,848	)		4,541,516			12,763,874
Change in Net Assets from Capital Transactions	$	319,626,459		$	226,459,319		$	206,778,242		$	64,289,996

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 109

Diamond Hill Funds
Statements of Changes in Net Assets

	Short Duration Securitized Bond Fund						Core Bond Fund
	For the year ended December 31, 2020			For the year ended December 31, 2019			For the year ended December 31, 2020			For the year ended December 31, 2019
Share Transactions:
Class A
Issued		3,680,417			4,744,357			1,315,970			134,674
Reinvested		156,709			129,679			23,010			8,134
Redeemed		(4,683,727	)		(1,233,129	)		(107,686	)		(96,045	)
Change in Shares Outstanding		(846,601	)		3,640,907			1,231,294			46,763
Class I
Issued		76,022,724			31,501,854			20,345,170			6,190,313
Reinvested		1,438,429			1,045,405			268,174			77,203
Redeemed		(40,544,177	)		(11,219,030	)		(2,867,968	)		(1,273,116	)
Change in Shares Outstanding		36,916,976			21,328,229			17,745,376			4,994,400
Class Y
Issued		11,362,853			10,495,911			1,341,553			1,331,980
Reinvested		645,835			954,132			127,759			126,280
Redeemed		(15,797,601	)		(14,100,128	)		(1,028,435	)		(213,723	)
Change in Shares Outstanding		(3,788,913	)		(2,650,085	)		440,877			1,244,537
Change in Total Shares Outstanding		32,281,462			22,319,051			19,417,547			6,285,700

See accompanying Notes to Financial Statements.

110 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Funds
Statements of Changes in Net Assets

	Corporate Credit Fund						High Yield Fund
	For the year ended December 31, 2020			For the year ended December 31, 2019			For the year ended December 31, 2020			For the year ended December 31, 2019
From Operations
Net investment income	$	67,153,877		$	50,736,112		$	22,587,848		$	5,645,663
Net realized gains on investment transactions		36,251,469			17,453,211			31,258,338			2,638,308
Net realized losses on sales from affiliated investments		(4,046,880	)		—			—			—
Net change in unrealized appreciation (depreciation) on investments		56,877,380			42,994,443			31,260,240			3,988,723
Change in Net Assets from Operations		156,235,846			111,183,766			85,106,426			12,272,694

Distributions to Shareholders
Class A		(8,779,645	)		(5,736,383	)		(2,882,219	)		(796,983	)
Class C		(1,541,137	)		(1,361,042	)		—			—
Class I		(82,515,313	)		(48,838,336	)		(44,898,316	)		(4,386,518	)
Class Y		(5,695,767	)		(3,543,594	)		(1,835,089	)		(1,822,190	)
Change in Net Assets from Distributions to Shareholders		(98,531,862	)		(59,479,355	)		(49,615,624	)		(7,005,691	)
Change in Net Assets from Capital Transactions		821,687,269			345,584,960			553,254,683			75,043,471

Total Change in Net Assets		879,391,253			397,289,371			588,745,485			80,310,474

Net Assets:
Beginning of year		1,140,727,700			743,438,329			134,757,463			54,446,989
End of year	$	2,020,118,953		$	1,140,727,700		$	723,502,948		$	134,757,463

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 111

Diamond Hill Funds
Statements of Changes in Net Assets

	Corporate Credit Fund						High Yield Fund
	For the year ended December 31, 2020			For the year ended December 31, 2019			For the year ended December 31, 2020			For the year ended December 31, 2019
Capital Transactions
Class A
Proceeds from shares sold	$	102,525,853		$	84,048,110		$	46,859,794		$	24,132,673
Reinvested distributions		8,158,386			5,426,724			2,840,041			772,176
Payments for shares redeemed		(74,496,708	)		(43,556,800	)		(29,308,482	)		(8,860,856	)
Change in Net Assets from Class A Share Transactions		36,187,531			45,918,034			20,391,353			16,043,993
Class C
Proceeds from shares sold		9,207,524			7,178,621			—			—
Reinvested distributions		1,370,076			1,141,126			—			—
Payments for shares redeemed		(8,764,969	)		(8,252,666	)		—			—
Change in Net Assets from Class C Share Transactions		1,812,631			67,081			—			—
Class I
Proceeds from shares sold		1,171,970,823			390,481,338			714,879,550			80,759,941
Reinvested distributions		67,110,081			39,753,964			33,262,831			4,012,733
Payments for shares redeemed		(477,945,229	)		(184,904,560	)		(227,531,786	)		(14,335,085	)
Change in Net Assets from Class I Share Transactions		761,135,675			245,330,742			520,610,595			70,437,589
Class Y
Proceeds from shares sold		83,053,102			60,211,534			36,139,761			1,794,451
Reinvested distributions		3,988,469			2,650,434			1,835,088			1,822,190
Payments for shares redeemed		(64,490,139	)		(8,592,865	)		(25,722,114	)		(15,054,752	)
Change in Net Assets from Class Y Share Transactions		22,551,432			54,269,103			12,252,735			(11,438,111	)
Change in Net Assets from Capital Transactions	$	821,687,269		$	345,584,960		$	553,254,683		$	75,043,471

See accompanying Notes to Financial Statements.

112 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Funds
Statements of Changes in Net Assets

	Corporate Credit Fund						High Yield Fund
	For the year ended December 31, 2020			For the year ended December 31, 2019			For the year ended December 31, 2020			For the year ended December 31, 2019
Share Transactions:
Class A
Issued		9,138,716			7,393,054			4,280,516			2,209,446
Reinvested		717,323			476,584			253,026			70,396
Redeemed		(6,626,577	)		(3,849,473	)		(2,702,357	)		(809,905	)
Change in Shares Outstanding		3,229,462			4,020,165			1,831,185			1,469,937
Class C
Issued		835,155			635,280			—			—
Reinvested		120,967			100,781			—			—
Redeemed		(780,780	)		(728,062	)		—			—
Change in Shares Outstanding		175,342			7,999			—			—
Class I
Issued		104,536,452			34,538,089			65,986,467			7,403,376
Reinvested		5,895,527			3,507,059			2,945,718			366,633
Redeemed		(43,605,967	)		(16,356,968	)		(20,535,794	)		(1,311,148	)
Change in Shares Outstanding		66,826,012			21,688,180			48,396,391			6,458,861
Class Y
Issued		7,241,453			5,304,606			3,248,053			165,683
Reinvested		349,182			233,877			163,012			167,582
Redeemed		(5,921,372	)		(762,895	)		(2,424,537	)		(1,366,303	)
Change in Shares Outstanding		1,669,263			4,775,588			986,528			(1,033,038	)
Change in Total Shares Outstanding		71,900,079			30,491,932			51,214,104			6,895,760

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 113

Small Cap Fund
Financial Highlights

Selected data for a share outstanding throughout the periods indicated

Small Cap Fund	Net asset value, beginning of year		Net investment income (loss)^(A)			Net realized and unrealized gains (losses) on investments			Total from investment operations			Dividends from net investment income
Class A
For the year ended December 31, 2020	$	31.23		0.01			(0.18	)		(0.17	)		(0.10	)
For the year ended December 31, 2019	$	27.54		0.06			5.80			5.86			(0.34	)
For the year ended December 31, 2018	$	35.62		0.12			(5.37	)		(5.25	)		—
For the year ended December 31, 2017	$	34.39		0.06			3.55			3.61			(0.13	)
For the year ended December 31, 2016	$	30.89		0.00	^(E)		4.36			4.36			—

Class C
For the year ended December 31, 2020	$	26.33		(0.15	)		(0.20	)		(0.35	)		—
For the year ended December 31, 2019	$	23.40		(0.16	)		4.92			4.76			(0.00	)^(E)
For the year ended December 31, 2018	$	30.98		(0.17	)		(4.58	)		(4.75	)		—
For the year ended December 31, 2017	$	30.30		(0.19	)		3.12			2.93			—
For the year ended December 31, 2016	$	27.51		(0.23	)		3.88			3.65			—

Class I
For the year ended December 31, 2020	$	31.77		0.09			(0.18	)		(0.09	)		(0.19	)
For the year ended December 31, 2019	$	27.98		0.16			5.90			6.06			(0.44	)
For the year ended December 31, 2018	$	36.15		0.23			(5.48	)		(5.25	)		(0.09	)
For the year ended December 31, 2017	$	34.87		0.17			3.61			3.78			(0.25	)
For the year ended December 31, 2016	$	31.28		0.10			4.42			4.52			(0.07	)

Class Y
For the year ended December 31, 2020	$	31.80		0.12			(0.17	)		(0.05	)		(0.23	)
For the year ended December 31, 2019	$	28.01		0.19			5.91			6.10			(0.48	)
For the year ended December 31, 2018	$	36.17		0.27			(5.48	)		(5.21	)		(0.12	)
For the year ended December 31, 2017	$	34.89		0.20			3.62			3.82			(0.29	)
For the year ended December 31, 2016	$	31.29		0.13			4.43			4.56			(0.10	)

^(A)	Net investment income (loss) per share has been calculated using the average daily shares outstanding during the period.

^(B)	Total returns shown exclude the effect of applicable sales charges.

^(C)	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.

See accompanying Notes to Financial Statements.

114 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Distributions from net realized capital gains			Total distributions			Net asset value, end of year		Total return^(B)			Net assets, end of year (000’s)		Ratio of total net expenses to average net assets			Ratio of total gross expenses to average net assets^(C)			Ratio of net investment income (loss) to average net assets			Portfolio turnover rate^(D)

	—			(0.10	)	$	30.96		(0.55	)%	$	117,491		1.26	%		1.26	%		0.05	%		34	%
	(1.83	)		(2.17	)	$	31.23		21.36	%	$	165,339		1.27	%		1.27	%		0.23	%		22	%
	(2.83	)		(2.83	)	$	27.54		(15.12	)%	$	214,831		1.25	%		1.26	%		0.31	%		23	%
	(2.25	)		(2.38	)	$	35.62		10.62	%	$	357,512		1.27	%		1.28	%		0.11	%		7	%
	(0.86	)		(0.86	)	$	34.39		14.10	%	$	439,681		1.29	%		1.29	%		0.00	%^(F)		15	%

					��
	—			—		$	25.98		(1.33	)%	$	7,090		2.01	%		2.01	%		(0.70	)%		34	%
	(1.83	)		(1.83	)	$	26.33		20.46	%	$	13,501		2.02	%		2.02	%		(0.59	)%		22	%
	(2.83	)		(2.83	)	$	23.40		(15.77	)%	$	24,951		2.00	%		2.01	%		(0.45	)%		23	%
	(2.25	)		(2.25	)	$	30.98		9.80	%	$	46,868		2.02	%		2.03	%		(0.67	)%		7	%
	(0.86	)		(0.86	)	$	30.30		13.25	%	$	54,664		2.04	%		2.04	%		(0.75	)%		15	%


	—			(0.19	)	$	31.49		(0.28	)%	$	350,375		0.97	%		0.97	%		0.33	%		34	%
	(1.83	)		(2.27	)	$	31.77		21.75	%	$	469,014		0.98	%		0.98	%		0.52	%		22	%
	(2.83	)		(2.92	)	$	27.98		(14.88	)%	$	633,323		0.96	%		0.97	%		0.64	%		23	%
	(2.25	)		(2.50	)	$	36.15		10.95	%	$	877,913		0.97	%		0.98	%		0.41	%		7	%
	(0.86	)		(0.93	)	$	34.87		14.45	%	$	1,073,671		0.99	%		0.99	%		0.32	%		15	%


	—			(0.23	)	$	31.52		(0.17	)%	$	56,417		0.85	%		0.85	%		0.46	%		34	%
	(1.83	)		(2.31	)	$	31.80		21.88	%	$	105,030		0.86	%		0.86	%		0.62	%		22	%
	(2.83	)		(2.95	)	$	28.01		(14.79	)%	$	147,363		0.84	%		0.85	%		0.74	%		23	%
	(2.25	)		(2.54	)	$	36.17		11.06	%	$	207,770		0.87	%		0.88	%		0.53	%		7	%
	(0.86	)		(0.96	)	$	34.89		14.57	%	$	221,827		0.89	%		0.89	%		0.40	%		15	%

^(D)	Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

^(E)	Amount is less than $0.005.

^(F)	Amount is less than 0.005%.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 115

Small-Mid Cap Fund
Financial Highlights

Selected data for a share outstanding throughout the periods indicated

Small-Mid Cap Fund	Net asset value, beginning of year		Net investment income (loss)^(A)			Net realized and unrealized gains (losses) on investments			Total from investment operations			Dividends from net investment income
Class A
For the year ended December 31, 2020	$	22.57		0.03			0.20			0.23			(0.10	)
For the year ended December 31, 2019	$	18.59		0.04			5.02			5.06			(0.14	)
For the year ended December 31, 2018	$	22.24		0.05			(2.86	)		(2.81	)		(0.04	)
For the year ended December 31, 2017	$	21.18		0.03			1.73			1.76			(0.03	)
For the year ended December 31, 2016	$	18.29		0.01			3.25			3.26			(0.01	)

Class C
For the year ended December 31, 2020	$	20.38		(0.10	)		0.16			0.06			—
For the year ended December 31, 2019	$	16.88		(0.12	)		4.56			4.44			—
For the year ended December 31, 2018	$	20.39		(0.10	)		(2.61	)		(2.71	)		—
For the year ended December 31, 2017	$	19.60		(0.13	)		1.59			1.46			—
For the year ended December 31, 2016	$	17.06		(0.12	)		3.02			2.90			—

Class I
For the year ended December 31, 2020	$	22.80		0.09			0.21			0.30			(0.16	)
For the year ended December 31, 2019	$	18.76		0.11			5.08			5.19			(0.21	)
For the year ended December 31, 2018	$	22.45		0.12			(2.91	)		(2.79	)		(0.10	)
For the year ended December 31, 2017	$	21.39		0.10			1.74			1.84			(0.11	)
For the year ended December 31, 2016	$	18.46		0.07			3.29			3.36			(0.07	)

Class Y
For the year ended December 31, 2020	$	22.84		0.12			0.22			0.34			(0.18	)
For the year ended December 31, 2019	$	18.80		0.13			5.08			5.21			(0.23	)
For the year ended December 31, 2018	$	22.49		0.15			(2.91	)		(2.76	)		(0.13	)
For the year ended December 31, 2017	$	21.42		0.12			1.75			1.87			(0.13	)
For the year ended December 31, 2016	$	18.48		0.09			3.29			3.38			(0.08	)

^(A)	Net investment income (loss) per share has been calculated using the average daily shares outstanding during the period.

^(B)	Total returns shown exclude the effect of applicable sales charges.

See accompanying Notes to Financial Statements.

116 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Distributions from net realized capital gains			Total distributions			Net asset value, end of year		Total return^(B)			Net assets, end of year (000’s)		Ratio of total net expenses to average net assets			Ratio of total gross expenses to average net assets^(C)			Ratio of net investment income (loss) to average net assets			Portfolio turnover rate^(D)

	(0.01	)		(0.11	)	$	22.69		1.03	%	$	162,637		1.20	%		1.21	%		0.19	%		31	%^(E)
	(0.94	)		(1.08	)	$	22.57		27.33	%	$	183,914		1.21	%		1.22	%		0.21	%		14	%
	(0.80	)		(0.84	)	$	18.59		(12.80	)%	$	164,037		1.20	%		1.21	%		0.21	%		26	%
	(0.67	)		(0.70	)	$	22.24		8.35	%	$	229,411		1.22	%		1.23	%		0.09	%		15	%
	(0.36	)		(0.37	)	$	21.18		17.81	%	$	288,634		1.24	%		1.24	%		0.12	%		17	%


	(0.01	)		(0.01	)	$	20.43		0.29	%	$	15,121		1.95	%		1.96	%		(0.57	)%		31	%^(E)
	(0.94	)		(0.94	)	$	20.38		26.40	%	$	23,472		1.96	%		1.97	%		(0.58	)%		14	%
	(0.80	)		(0.80	)	$	16.88		(13.46	)%	$	25,821		1.95	%		1.96	%		(0.55	)%		26	%
	(0.67	)		(0.67	)	$	20.39		7.49	%	$	37,472		1.97	%		1.98	%		(0.66	)%		15	%
	(0.36	)		(0.36	)	$	19.60		16.98	%	$	42,875		1.99	%		1.99	%		(0.65	)%		17	%


	(0.01	)		(0.17	)	$	22.93		1.31	%	$	889,148		0.91	%		0.92	%		0.49	%		31	%^(E)
	(0.94	)		(1.15	)	$	22.80		27.74	%	$	1,081,619		0.92	%		0.93	%		0.50	%		14	%
	(0.80	)		(0.90	)	$	18.76		(12.56	)%	$	889,471		0.91	%		0.92	%		0.52	%		26	%
	(0.67	)		(0.78	)	$	22.45		8.63	%	$	1,114,337		0.92	%		0.93	%		0.41	%		15	%
	(0.36	)		(0.43	)	$	21.39		18.18	%	$	1,015,403		0.94	%		0.94	%		0.41	%		17	%


	(0.01	)		(0.19	)	$	22.99		1.50	%	$	888,375		0.79	%		0.80	%		0.61	%		31	%^(E)
	(0.94	)		(1.17	)	$	22.84		27.82	%	$	1,147,458		0.80	%		0.81	%		0.62	%		14	%
	(0.80	)		(0.93	)	$	18.80		(12.42	)%	$	924,995		0.79	%		0.80	%		0.63	%		26	%
	(0.67	)		(0.80	)	$	22.49		8.77	%	$	1,131,583		0.82	%		0.83	%		0.51	%		15	%
	(0.36	)		(0.44	)	$	21.42		18.29	%	$	961,721		0.84	%		0.84	%		0.49	%		17	%

^(C)	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.

^(D)	Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

^(E)	Portfolio turnover does not include redemptions in-kind.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 117

Mid Cap Fund
Financial Highlights

Selected data for a share outstanding throughout the periods indicated

Mid Cap Fund	Net asset value, beginning of year		Net investment income^(A)		Net realized and unrealized gains (losses) on investments			Total from investment operations			Dividends from net investment income
Class A
For the year ended December 31, 2020	$	14.64		0.05		(0.34	)		(0.29	)		(0.06	)
For the year ended December 31, 2019	$	11.89		0.05		2.96			3.01			(0.05	)
For the year ended December 31, 2018	$	13.66		0.06		(1.49	)		(1.43	)		(0.06	)
For the year ended December 31, 2017	$	12.59		0.04		1.23			1.27			(0.03	)
For the year ended December 31, 2016	$	10.71		0.03		1.93			1.96			(0.02	)

Class I
For the year ended December 31, 2020	$	14.69		0.09		(0.35	)		(0.26	)		(0.09	)
For the year ended December 31, 2019	$	11.92		0.10		2.97			3.07			(0.09	)
For the year ended December 31, 2018	$	13.70		0.10		(1.50	)		(1.40	)		(0.10	)
For the year ended December 31, 2017	$	12.62		0.08		1.24			1.32			(0.07	)
For the year ended December 31, 2016	$	10.74		0.07		1.92			1.99			(0.05	)

Class Y
For the year ended December 31, 2020	$	14.73		0.10		(0.35	)		(0.25	)		(0.10	)
For the year ended December 31, 2019	$	11.95		0.11		2.98			3.09			(0.10	)
For the year ended December 31, 2018	$	13.73		0.12		(1.50	)		(1.38	)		(0.12	)
For the year ended December 31, 2017	$	12.65		0.09		1.24			1.33			(0.08	)
For the year ended December 31, 2016	$	10.75		0.08		1.94			2.02			(0.06	)

^(A)	Net investment income per share has been calculated using the average daily shares outstanding during the period.

^(B)	Total returns shown exclude the effect of applicable sales charges.

See accompanying Notes to Financial Statements.

118 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Distributions from net realized capital gains			Total distributions			Net asset value, end of year		Total return^(B)			Net assets, end of year (000’s)		Ratio of total net expenses to average net assets			Ratio of total gross expenses to average net assets^(C)			Ratio of net investment income to average net assets			Portfolio turnover rate^(D)

	(0.02	)		(0.08	)	$	14.27		(2.01	)%	$	33,178		1.06	%		1.06	%		0.41	%		52	%
	(0.21	)		(0.26	)	$	14.64		25.36	%	$	31,997		1.06	%		1.07	%		0.36	%		31	%
	(0.28	)		(0.34	)	$	11.89		(10.56	)%	$	21,085		1.05	%		1.06	%		0.43	%		20	%
	(0.17	)		(0.20	)	$	13.66		10.13	%	$	25,853		1.07	%		1.08	%		0.28	%		11	%
	(0.06	)		(0.08	)	$	12.59		18.29	%	$	7,403		1.14	%		1.14	%		0.31	%		17	%


	(0.02	)		(0.11	)	$	14.32		(1.76	)%	$	194,354		0.77	%		0.77	%		0.71	%		52	%
	(0.21	)		(0.30	)	$	14.69		25.82	%	$	177,536		0.77	%		0.78	%		0.68	%		31	%
	(0.28	)		(0.38	)	$	11.92		(10.31	)%	$	55,045		0.76	%		0.77	%		0.72	%		20	%
	(0.17	)		(0.24	)	$	13.70		10.47	%	$	63,298		0.77	%		0.79	%		0.57	%		11	%
	(0.06	)		(0.11	)	$	12.62		18.56	%	$	28,031		0.85	%		0.85	%		0.67	%		17	%


	(0.02	)		(0.12	)	$	14.36		(1.66	)%	$	23,248		0.65	%		0.65	%		0.82	%		52	%
	(0.21	)		(0.31	)	$	14.73		25.91	%	$	20,454		0.65	%		0.66	%		0.74	%		31	%
	(0.28	)		(0.40	)	$	11.95		(10.17	)%	$	27,761		0.64	%		0.65	%		0.83	%		20	%
	(0.17	)		(0.25	)	$	13.73		10.51	%	$	32,943		0.67	%		0.68	%		0.65	%		11	%
	(0.06	)		(0.12	)	$	12.65		18.76	%	$	23,383		0.75	%		0.75	%		0.71	%		17	%

^(C)	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.

^(D)	Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 119

Large Cap Fund
Financial Highlights

Selected data for a share outstanding throughout the periods indicated

Large Cap Fund	Net asset value, beginning of year		Net investment income^(A)		Net realized and unrealized gains (losses) on investments			Total from investment operations
Class A
For the year ended December 31, 2020	$	28.86		0.28		2.19			2.47
For the year ended December 31, 2019	$	22.89		0.28		6.99			7.27
For the year ended December 31, 2018	$	26.45		0.25		(2.83	)		(2.58	)
For the year ended December 31, 2017	$	23.06		0.24		4.35			4.59
For the year ended December 31, 2016	$	21.44		0.25		2.82			3.07

Class C
For the year ended December 31, 2020	$	27.25		0.08		2.03			2.11
For the year ended December 31, 2019	$	21.67		0.07		6.61			6.68
For the year ended December 31, 2018	$	25.07		0.05		(2.67	)		(2.62	)
For the year ended December 31, 2017	$	21.94		0.05		4.12			4.17
For the year ended December 31, 2016	$	20.49		0.08		2.68			2.76

Class I
For the year ended December 31, 2020	$	29.05		0.36		2.22			2.58
For the year ended December 31, 2019	$	23.03		0.36		7.04			7.40
For the year ended December 31, 2018	$	26.62		0.33		(2.86	)		(2.53	)
For the year ended December 31, 2017	$	23.20		0.32		4.38			4.70
For the year ended December 31, 2016	$	21.55		0.31		2.86			3.17

Class Y
For the year ended December 31, 2020	$	29.07		0.40		2.21			2.61
For the year ended December 31, 2019	$	23.04		0.40		7.05			7.45
For the year ended December 31, 2018	$	26.64		0.36		(2.87	)		(2.51	)
For the year ended December 31, 2017	$	23.21		0.35		4.38			4.73
For the year ended December 31, 2016	$	21.56		0.34		2.85			3.19

^(A)	Net investment income per share has been calculated using the average daily shares outstanding during the period.

^(B)	Total returns shown exclude the effect of applicable sales charges.

See accompanying Notes to Financial Statements.

120 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Dividends from net investment income			Distributions from net realized capital gains			Total distributions			Net asset value, end of year		Total return^(B)			Net assets, end of year (000’s)		Ratio of total net expenses to average net assets			Ratio of net investment income to average net assets			Portfolio turnover rate^(C)

	(0.18	)		(0.73	)		(0.91	)	$	30.42		8.65	%	$	762,678		0.96	%		1.04	%		33	%
	(0.26	)		(1.04	)		(1.30	)	$	28.86		31.80	%	$	1,243,452		0.97	%		1.03	%		22	%^(D)
	(0.26	)		(0.72	)		(0.98	)	$	22.89		(9.88	)%	$	1,031,252		0.96	%		0.95	%		29	%^(E)
	(0.20	)		(1.00	)		(1.20	)	$	26.45		19.95	%	$	1,346,869		0.98	%		0.96	%		18	%
	(0.24	)		(1.21	)		(1.45	)	$	23.06		14.26	%	$	1,158,652		0.99	%		1.12	%		23	%


	(0.03	)		(0.73	)		(0.76	)	$	28.60		7.84	%	$	68,930		1.71	%		0.29	%		33	%
	(0.06	)		(1.04	)		(1.10	)	$	27.25		30.84	%	$	83,936		1.72	%		0.28	%		22	%^(D)
	(0.06	)		(0.72	)		(0.78	)	$	21.67		(10.57	)%	$	84,485		1.71	%		0.20	%		29	%^(E)
	(0.04	)		(1.00	)		(1.04	)	$	25.07		19.04	%	$	115,257		1.73	%		0.21	%		18	%
	(0.10	)		(1.21	)		(1.31	)	$	21.94		13.40	%	$	95,923		1.74	%		0.37	%		23	%


	(0.33	)		(0.73	)		(1.06	)	$	30.57		8.97	%	$	5,140,497		0.67	%		1.33	%		33	%
	(0.34	)		(1.04	)		(1.38	)	$	29.05		32.18	%	$	3,877,616		0.68	%		1.32	%		22	%^(D)
	(0.34	)		(0.72	)		(1.06	)	$	23.03		(9.63	)%	$	2,978,377		0.67	%		1.23	%		29	%^(E)
	(0.28	)		(1.00	)		(1.28	)	$	26.62		20.30	%	$	3,538,859		0.68	%		1.25	%		18	%
	(0.31	)		(1.21	)		(1.52	)	$	23.20		14.63	%	$	2,156,390		0.70	%		1.41	%		23	%


	(0.36	)		(0.73	)		(1.09	)	$	30.59		9.07	%	$	2,339,661		0.55	%		1.45	%		33	%
	(0.38	)		(1.04	)		(1.42	)	$	29.07		32.34	%	$	1,567,818		0.56	%		1.44	%		22	%^(D)
	(0.37	)		(0.72	)		(1.09	)	$	23.04		(9.53	)%	$	992,056		0.55	%		1.35	%		29	%^(E)
	(0.30	)		(1.00	)		(1.30	)	$	26.64		20.42	%	$	845,457		0.58	%		1.36	%		18	%
	(0.33	)		(1.21	)		(1.54	)	$	23.21		14.74	%	$	666,756		0.60	%		1.49	%		23	%

^(C)	Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

^(D)	Portfolio turnover does not include in-kind subscriptions.

^(E)	Portfolio turnover does not include redemptions in-kind.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 121

All Cap Select Fund
Financial Highlights

Selected data for a share outstanding throughout the periods indicated

All Cap Select Fund	Net asset value, beginning of year		Net investment income (loss)^(A)			Net realized and unrealized gains (losses) on investments			Total from investment operations			Dividends from net investment income
Class A
For the year ended December 31, 2020	$	16.17		0.05			2.26			2.31			(0.05	)
For the year ended December 31, 2019	$	12.64		0.06			3.78			3.84			—
For the year ended December 31, 2018	$	16.01		0.05			(1.96	)		(1.91	)		(0.06	)
For the year ended December 31, 2017	$	13.35		0.03			2.63			2.66			—
For the year ended December 31, 2016	$	12.36		(0.01	)		1.17			1.16			—

Class C
For the year ended December 31, 2020	$	14.98		(0.05	)		2.06			2.01			—
For the year ended December 31, 2019	$	11.82		(0.05	)		3.52			3.47			—
For the year ended December 31, 2018	$	15.11		(0.07	)		(1.82	)		(1.89	)		—
For the year ended December 31, 2017	$	12.69		(0.07	)		2.49			2.42			—
For the year ended December 31, 2016	$	11.85		(0.09	)		1.10			1.01			—

Class I
For the year ended December 31, 2020	$	16.32		0.09			2.29			2.38			(0.10	)
For the year ended December 31, 2019	$	12.72		0.11			3.80			3.91			—
For the year ended December 31, 2018	$	16.11		0.10			(1.97	)		(1.87	)		(0.12	)
For the year ended December 31, 2017	$	13.40		0.07			2.65			2.72			(0.01	)
For the year ended December 31, 2016	$	12.39		0.03			1.16			1.19			(0.01	)

Class Y
For the year ended December 31, 2020	$	16.37		0.11			2.30			2.41			(0.12	)
For the year ended December 31, 2019	$	12.74		0.13			3.81			3.94			—
For the year ended December 31, 2018	$	16.14		0.12			(1.99	)		(1.87	)		(0.13	)
For the year ended December 31, 2017	$	13.42		0.09			2.65			2.74			(0.02	)
For the year ended December 31, 2016	$	12.41		0.04			1.17			1.21			(0.03	)

^(A)	Net investment income (loss) per share has been calculated using the average daily shares outstanding during the period.

^(B)	Total returns shown exclude the effect of applicable sales charges.

See accompanying Notes to Financial Statements.

122 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Distributions from net realized capital gains			Total distributions			Net asset value, end of year		Total return^(B)			Net assets, end of year (000’s)		Ratio of total net expenses to average net assets			Ratio of total gross expenses to average net assets^(C)			Ratio of net investment income (loss) to average net assets			Portfolio turnover rate^(D)

	—			(0.05	)	$	18.43		14.30	%	$	10,207		1.16	%		1.16	%		0.33	%		76	%
	(0.31	)		(0.31	)	$	16.17		30.41	%	$	11,049		1.17	%		1.17	%		0.46	%		45	%
	(1.40	)		(1.46	)	$	12.64		(12.31	)%	$	8,963		1.16	%		1.16	%		0.29	%		84	%
	—			—		$	16.01		19.93	%	$	13,480		1.17	%		1.18	%		0.21	%		52	%
	(0.17	)		(0.17	)	$	13.35		9.37	%	$	14,963		1.19	%		1.19	%		(0.09	)%		70	%


	—			—		$	16.99		13.42	%	$	3,244		1.91	%		1.91	%		(0.44	)%		76	%
	(0.31	)		(0.31	)	$	14.98		29.39	%	$	4,747		1.92	%		1.92	%		(0.32	)%		45	%
	(1.40	)		(1.40	)	$	11.82		(12.93	)%	$	6,950		1.91	%		1.91	%		(0.46	)%		84	%
	—			—		$	15.11		19.07	%	$	11,072		1.92	%		1.93	%		(0.54	)%		52	%
	(0.17	)		(0.17	)	$	12.69		8.51	%	$	12,269		1.94	%		1.94	%		(0.81	)%		70	%


	—			(0.10	)	$	18.60		14.57	%	$	171,263		0.87	%		0.87	%		0.62	%		76	%
	(0.31	)		(0.31	)	$	16.32		30.77	%	$	152,591		0.88	%		0.88	%		0.75	%		45	%
	(1.40	)		(1.52	)	$	12.72		(12.02	)%	$	114,571		0.87	%		0.87	%		0.60	%		84	%
	—			(0.01	)	$	16.11		20.33	%	$	136,233		0.87	%		0.88	%		0.52	%		52	%
	(0.17	)		(0.18	)	$	13.40		9.62	%	$	93,192		0.90	%		0.90	%		0.24	%		70	%


	—			(0.12	)	$	18.66		14.70	%	$	141,244		0.75	%		0.75	%		0.74	%		76	%
	(0.31	)		(0.31	)	$	16.37		30.96	%	$	103,963		0.76	%		0.76	%		0.86	%		45	%
	(1.40	)		(1.53	)	$	12.74		(11.95	)%	$	65,218		0.75	%		0.75	%		0.73	%		84	%
	—			(0.02	)	$	16.14		20.45	%	$	21,628		0.77	%		0.78	%		0.61	%		52	%
	(0.17	)		(0.20	)	$	13.42		9.72	%	$	18,456		0.80	%		0.80	%		0.36	%		70	%

^(C)	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.

^(D)	Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 123

Long-Short Fund
Financial Highlights

Selected data for a share outstanding throughout the periods indicated

Long-Short Fund	Net asset value, beginning of year		Net investment income (loss)^(A)			Net realized and unrealized gains (losses) on investments			Total from investment operations			Dividends from net investment income
Class A
For the year ended December 31, 2020	$	26.29		0.02			(0.17	)		(0.15	)		(0.05	)
For the year ended December 31, 2019	$	22.78		0.13			5.04			5.17			(0.17	)
For the year ended December 31, 2018	$	25.76		0.10			(1.96	)		(1.86	)		(0.07	)
For the year ended December 31, 2017	$	24.91		(0.05	)		1.45			1.40			—
For the year ended December 31, 2016	$	23.36		(0.09	)		2.49			2.40			—

Class C
For the year ended December 31, 2020	$	23.08		(0.13	)		(0.18	)		(0.31	)		—
For the year ended December 31, 2019	$	20.18		(0.04	)		4.43			4.39			—
For the year ended December 31, 2018	$	23.04		(0.08	)		(1.73	)		(1.81	)		—
For the year ended December 31, 2017	$	22.51		(0.22	)		1.30			1.08			—
For the year ended December 31, 2016	$	21.34		(0.24	)		2.26			2.02			—

Class I
For the year ended December 31, 2020	$	26.98		0.09			(0.17	)		(0.08	)		(0.12	)
For the year ended December 31, 2019	$	23.32		0.22			5.16			5.38			(0.23	)
For the year ended December 31, 2018	$	26.39		0.18			(2.01	)		(1.83	)		(0.19	)
For the year ended December 31, 2017	$	25.43		0.02			1.50			1.52			(0.01	)
For the year ended December 31, 2016	$	23.77		(0.02	)		2.53			2.51			—

Class Y
For the year ended December 31, 2020	$	27.10		0.14			(0.20	)		(0.06	)		(0.15	)
For the year ended December 31, 2019	$	23.42		0.25			5.18			5.43			(0.26	)
For the year ended December 31, 2018	$	26.49		0.21			(2.01	)		(1.80	)		(0.22	)
For the year ended December 31, 2017	$	25.53		0.05			1.49			1.54			(0.03	)
For the year ended December 31, 2016	$	23.83		0.01			2.54			2.55			—

^(A)	Net investment income (loss) per share has been calculated using the average daily shares outstanding during the period.

^(B)	Total returns shown exclude the effect of applicable sales charges.

^(C)	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 1.35% for Class A, 2.10% for Class C, 1.06% for Class I, and 0.94% for Class Y.

See accompanying Notes to Financial Statements.

124 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Distributions from net realized capital gains			Total distributions			Net asset value, end of year		Total return^(B)			Net assets, end of year (000’s)		Ratio of total net expenses to average net assets^(C)			Ratio of total gross expenses to average net assets^(D)			Ratio of net investment income (loss) to average net assets			Portfolio turnover rate^(E)

	(0.20	)		(0.25	)	$	25.89		(0.55	)%	$	162,271		1.81	%		1.82	%		0.09	%		65	%^(F)
	(1.49	)		(1.66	)	$	26.29		22.74	%	$	234,584		1.85	%		1.86	%		0.51	%		54	%^(F)
	(1.05	)		(1.12	)	$	22.78		(7.30	)%	$	188,932		1.72	%		1.73	%		0.38	%		64	%^(F)
	(0.55	)		(0.55	)	$	25.76		5.65	%	$	358,395		1.95	%		1.96	%		(0.22	)%		43	%^(F)
	(0.85	)		(0.85	)	$	24.91		10.26	%	$	460,104		2.06	%		2.06	%		(0.20	)%		45	%


	(0.20	)		(0.20	)	$	22.57		(1.32	)%	$	24,428		2.56	%		2.57	%		(0.65	)%		65	%^(F)
	(1.49	)		(1.49	)	$	23.08		21.80	%	$	41,747		2.60	%		2.61	%		(0.16	)%		54	%^(F)
	(1.05	)		(1.05	)	$	20.18		(7.96	)%	$	80,351		2.47	%		2.48	%		(0.37	)%		64	%^(F)
	(0.55	)		(0.55	)	$	23.04		4.83	%	$	115,009		2.70	%		2.71	%		(0.97	)%		43	%^(F)
	(0.85	)		(0.85	)	$	22.51		9.45	%	$	145,313		2.81	%		2.81	%		(1.13	)%		45	%


	(0.20	)		(0.32	)	$	26.58		(0.27	)%	$	1,794,063		1.52	%		1.53	%		0.39	%		65	%^(F)
	(1.49	)		(1.72	)	$	26.98		23.11	%	$	2,959,933		1.56	%		1.57	%		0.84	%		54	%^(F)
	(1.05	)		(1.24	)	$	23.32		(7.04	)%	$	3,110,940		1.43	%		1.44	%		0.68	%		64	%^(F)
	(0.55	)		(0.56	)	$	26.39		5.99	%	$	4,032,586		1.65	%		1.66	%		0.09	%		43	%^(F)
	(0.85	)		(0.85	)	$	25.43		10.55	%	$	3,589,749		1.76	%		1.76	%		(0.09	)%		45	%


	(0.20	)		(0.35	)	$	26.69		(0.19	)%	$	75,011		1.40	%		1.41	%		0.57	%		65	%^(F)
	(1.49	)		(1.75	)	$	27.10		23.23	%	$	291,753		1.44	%		1.45	%		0.93	%		54	%^(F)
	(1.05	)		(1.27	)	$	23.42		(6.89	)%	$	214,138		1.31	%		1.32	%		0.80	%		64	%^(F)
	(0.55	)		(0.58	)	$	26.49		6.07	%	$	260,735		1.55	%		1.56	%		0.19	%		43	%^(F)
	(0.85	)		(0.85	)	$	25.53		10.69	%	$	227,680		1.67	%		1.67	%		0.02	%		45	%

^(D)	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.

^(E)	Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

^(F)	The portfolio turnover rate for 2020, 2019, 2018 and 2017 would have been 47%, 42%, 51% and 32%, respectively, if the absolute value of securities sold short liability was included in the denominator of the calculation.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 125

Global Fund
Financial Highlights

Selected data for a share outstanding throughout the periods indicated

Global Fund^(A)	Net asset value, beginning of year		Net investment income^(B)		Net realized and unrealized gains (losses) on investments			Total from investment operations
Class A
For the year ended December 31, 2020	$	15.05		0.08		0.12			0.20
For the year ended December 31, 2019	$	11.67		0.16		3.34			3.50
For the year ended December 31, 2018	$	14.42		0.11		(2.14	)		(2.03	)

Class I
For the year ended December 31, 2020	$	15.08		0.10		0.15			0.25
For the year ended December 31, 2019	$	11.69		0.15		3.40			3.55
For the year ended December 31, 2018	$	14.42		0.15		(2.14	)		(1.99	)

Class Y
For the year ended December 31, 2020	$	15.10		0.12		0.15			0.27
For the year ended December 31, 2019	$	11.70		0.19		3.38			3.57
For the year ended December 31, 2018	$	14.42		0.16		(2.14	)		(1.98	)

^(A)	Inception date of the Fund is December 29, 2017. Fund commenced public offering on January 2, 2018.

^(B)	Net investment income per share has been calculated using the average daily shares outstanding during the period.

See accompanying Notes to Financial Statements.

126 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Dividends from net investment income			Distributions from net realized capital gains			Total distributions			Net asset value, end of year		Total return^(C)			Net assets, end of year (000’s)		Ratio of total net expenses to average net assets			Ratio of net investment income to average net assets			Portfolio turnover rate^(D)

	(0.09	)		—			(0.09	)	$	15.16		1.35	%	$	160		1.13	%		0.59	%		110	%
	(0.12	)		—			(0.12	)	$	15.05		29.96	%	$	111		1.15	%		1.18	%		29	%
	(0.05	)		(0.67	)		(0.72	)	$	11.67		(14.91	)%	$	66		1.18	%		0.86	%		84	%


	(0.10	)		—			(0.10	)	$	15.23		1.66	%	$	2,218		0.84	%		0.78	%		110	%
	(0.16	)		—			(0.16	)	$	15.08		30.34	%	$	6,216		0.86	%		1.10	%		29	%
	(0.07	)		(0.67	)		(0.74	)	$	11.69		(14.66	)%	$	4,440		0.89	%		1.09	%		84	%


	(0.14	)		—			(0.14	)	$	15.23		1.77	%	$	13,777		0.72	%		0.95	%		110	%
	(0.17	)		—			(0.17	)	$	15.10		30.54	%	$	15,528		0.74	%		1.37	%		29	%
	(0.07	)		(0.67	)		(0.74	)	$	11.70		(14.55	)%	$	10,214		0.77	%		1.24	%		84	%

^(C)	Total returns shown exclude the effect of applicable sales charges.

^(D)	Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 127

International Fund
Financial Highlights

Selected data for a share outstanding throughout the periods indicated

International Fund^(A)	Net asset value, beginning of period		Net investment income^(B)		Net realized and unrealized gains on investments		Total from investment operations
Class A
For the year ended December 31, 2020	$	14.67		0.05		0.90		0.95
For the period ended December 31, 2019	$	13.55		0.02		1.15		1.17

Class I
For the year ended December 31, 2020	$	14.69		0.09		0.90		0.99
For the period ended December 31, 2019	$	13.55		0.04		1.15		1.19

Class Y
For the year ended December 31, 2020	$	14.69		0.11		0.89		1.00
For the period ended December 31, 2019	$	13.55		0.05		1.15		1.20

^(A)	Inception date of the Fund is June 28, 2019. The Fund commenced public offering and operations on July 1, 2019.

^(B)	Net investment income per share has been calculated using the average daily shares outstanding during the period.

^(C)	Total returns shown exclude the effect of applicable sales charges.

See accompanying Notes to Financial Statements.

128 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Dividends from net investment income			Distributions from net realized capital gains			Total distributions			Net asset value, end of period		Total return^(C)			Net assets, end of period (000’s)		Ratio of total net expenses to average net assets			Ratio of net investment income to average net assets			Portfolio turnover rate^(D)

	(0.06	)		(0.08	)		(0.14	)	$	15.48		6.48	%	$	338		1.14	%		0.43	%		49	%
	(0.04	)		(0.01	)		(0.05	)	$	14.67		8.64	%^(E)	$	45		1.21	%^(F)		0.25	%^(F)		8	%^(E)


	(0.09	)		(0.08	)		(0.17	)	$	15.51		6.74	%	$	3,913		0.85	%		0.74	%		49	%
	(0.04	)		(0.01	)		(0.05	)	$	14.69		8.80	%^(E)	$	3,828		0.92	%^(F)		0.61	%^(F)		8	%^(E)


	(0.10	)		(0.08	)		(0.18	)	$	15.51		6.81	%	$	12,616		0.73	%		0.87	%		49	%
	(0.05	)		(0.01	)		(0.06	)	$	14.69		8.85	%^(E)	$	9,616		0.80	%^(F)		0.70	%^(F)		8	%^(E)

^(D)	Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

^(E)	Not annualized.

^(F)	Annualized

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 129

Short Duration Securitized Bond Fund
Financial Highlights

Selected data for a share outstanding throughout the periods indicated

Short Duration Securitized Bond Fund^(A)	Net asset value, beginning of period		Net investment income^(B)		Net realized and unrealized gains (losses) on investments			Total from investment operations
Class A
For the year ended December 31, 2020	$	10.11		0.26		0.02			0.28
For the year ended December 31, 2019	$	10.05		0.38		0.06			0.44
For the year ended December 31, 2018	$	10.11		0.33		(0.04	)		0.29
For the year ended December 31, 2017	$	10.04		0.30		0.09			0.39
For the period ended December 31, 2016	$	10.00		0.09		0.03			0.12

Class I
For the year ended December 31, 2020	$	10.12		0.28		0.02			0.30
For the year ended December 31, 2019	$	10.05		0.41		0.07			0.48
For the year ended December 31, 2018	$	10.11		0.36		(0.04	)		0.32
For the year ended December 31, 2017	$	10.03		0.33		0.10			0.43
For the period ended December 31, 2016	$	10.00		0.10		0.03			0.13

Class Y
For the year ended December 31, 2020	$	10.12		0.30		0.02			0.32
For the year ended December 31, 2019	$	10.06		0.42		0.06			0.48
For the year ended December 31, 2018	$	10.11		0.38		(0.04	)		0.34
For the year ended December 31, 2017	$	10.03		0.34		0.10			0.44
For the period ended December 31, 2016	$	10.00		0.11		0.02			0.13

^(A)	Inception date of the Fund is July 5, 2016. The Fund commenced operations on July 5, 2016.

^(B)	Net investment income per share has been calculated using the average daily shares outstanding during the period.

^(C)	Total returns shown exclude the effect of applicable sales charges.

See accompanying Notes to Financial Statements.

130 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Dividends from net investment income		Distributions from net realized capital gains			Total distributions			Net asset value, end of period		Total return^(C)			Net assets, end of period (000’s)		Ratio of total net expenses to average net assets			Ratio of net investment income to average net assets			Portfolio turnover rate^(D)

(0.30	)		—			(0.30	)	$	10.09		2.87	%	$	47,059		0.82	%		2.68	%		72	%
(0.38	)		(0.00	)^(E)		(0.38	)	$	10.11		4.44	%	$	55,727		0.82	%		3.72	%		54	%
(0.34	)		(0.01	)		(0.35	)	$	10.05		2.88	%	$	18,789		0.81	%		3.30	%		67	%
(0.31	)		(0.01	)		(0.32	)	$	10.11		3.97	%	$	20,511		0.83	%		3.03	%		82	%
(0.08	)		—			(0.08	)	$	10.04		1.19	%^(F)	$	222		0.83	%^(G)		1.12	%^(G)		19	%^(F)


(0.33	)		—			(0.33	)	$	10.09		3.08	%	$	897,232		0.53	%		2.93	%		72	%
(0.41	)		(0.00	)^(E)		(0.41	)	$	10.12		4.85	%	$	525,994		0.53	%		4.00	%		54	%
(0.37	)		(0.01	)		(0.38	)	$	10.05		3.18	%	$	308,341		0.52	%		3.62	%		67	%
(0.34	)		(0.01	)		(0.35	)	$	10.11		4.33	%	$	61,136		0.53	%		3.29	%		82	%
(0.10	)		—			(0.10	)	$	10.03		1.26	%^(F)	$	14,707		0.53	%^(G)		1.32	%^(G)		19	%^(F)


(0.34	)		—			(0.34	)	$	10.10		3.29	%	$	188,175		0.41	%		3.09	%		72	%
(0.42	)		(0.00	)^(E)		(0.42	)	$	10.12		4.84	%	$	226,938		0.41	%		4.09	%		54	%
(0.38	)		(0.01	)		(0.39	)	$	10.06		3.38	%	$	252,137		0.40	%		3.72	%		67	%
(0.35	)		(0.01	)		(0.36	)	$	10.11		4.43	%	$	231,290		0.43	%		3.33	%		82	%
(0.10	)		—			(0.10	)	$	10.03		1.29	%^(F)	$	182,527		0.44	%^(G)		1.25	%^(G)		19	%^(F)

^(D)	Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

^(E)	Amount is less than $0.005.

^(F)	Not annualized.

^(G)	Annualized

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 131

Core Bond Fund
Financial Highlights

Selected data for a share outstanding throughout the periods indicated

Core Bond Fund^(A)	Net asset value, beginning of period		Net investment income^(B)		Net realized and unrealized gains (losses) on investments			Total from investment operations
Class A
For the year ended December 31, 2020	$	10.19		0.21		0.56			0.77
For the year ended December 31, 2019	$	9.71		0.24		0.49			0.73
For the year ended December 31, 2018	$	9.85		0.25		(0.13	)		0.12
For the year ended December 31, 2017	$	9.70		0.21		0.16			0.37
For the period ended December 31, 2016	$	10.00		0.07		(0.28	)		(0.21	)

Class I
For the year ended December 31, 2020	$	10.19		0.24		0.56			0.80
For the year ended December 31, 2019	$	9.71		0.26		0.50			0.76
For the year ended December 31, 2018	$	9.85		0.28		(0.13	)		0.15
For the year ended December 31, 2017	$	9.70		0.24		0.16			0.40
For the period ended December 31, 2016	$	10.00		0.09		(0.30	)		(0.21	)

Class Y
For the year ended December 31, 2020	$	10.20		0.26		0.55			0.81
For the year ended December 31, 2019	$	9.71		0.28		0.50			0.78
For the year ended December 31, 2018	$	9.85		0.29		(0.13	)		0.16
For the year ended December 31, 2017	$	9.70		0.25		0.16			0.41
For the period ended December 31, 2016	$	10.00		0.09		(0.30	)		(0.21	)

^(A)	Inception date of the Fund is July 5, 2016. The Fund commenced operations on July 5, 2016.

^(B)	Net investment income per share has been calculated using the average daily shares outstanding during the period.

^(C)	Total returns shown exclude the effect of applicable sales charges.

See accompanying Notes to Financial Statements.

132 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Dividends from net investment income			Distributions from net realized capital gains		Total distributions			Net asset value, end of period		Total return^(C)			Net assets, end of period (000’s)		Ratio of total net expenses to average net assets			Ratio of net investment income to average net assets			Portfolio turnover rate^(D)

	(0.22	)		—		(0.22	)	$	10.74		7.60	%	$	17,024		0.76	%		1.98	%		28	%
	(0.25	)		—		(0.25	)	$	10.19		7.63	%	$	3,599		0.77	%		2.43	%		29	%
	(0.26	)		—		(0.26	)	$	9.71		1.28	%	$	2,976		0.76	%		2.60	%		25	%
	(0.22	)		—		(0.22	)	$	9.85		3.85	%	$	3,480		0.78	%		2.10	%		35	%
	(0.09	)		—		(0.09	)	$	9.70		(2.28	)%^(E)	$	2,183		0.78	%^(F)		0.87	%^(F)		8	%^(E)


	(0.25	)		—		(0.25	)	$	10.74		7.94	%	$	260,365		0.47	%		2.28	%		28	%
	(0.28	)		—		(0.28	)	$	10.19		7.93	%	$	66,174		0.48	%		2.61	%		29	%
	(0.29	)		—		(0.29	)	$	9.71		1.59	%	$	14,574		0.47	%		2.92	%		25	%
	(0.25	)		—		(0.25	)	$	9.85		4.17	%	$	9,604		0.48	%		2.40	%		35	%
	(0.09	)		—		(0.09	)	$	9.70		(2.14	)%^(E)	$	8,033		0.49	%^(F)		1.02	%^(F)		8	%^(E)


	(0.26	)		—		(0.26	)	$	10.75		8.04	%	$	59,856		0.35	%		2.46	%		28	%
	(0.29	)		—		(0.29	)	$	10.20		8.15	%	$	52,275		0.36	%		2.83	%		29	%
	(0.30	)		—		(0.30	)	$	9.71		1.69	%	$	37,713		0.35	%		3.03	%		25	%
	(0.26	)		—		(0.26	)	$	9.85		4.22	%	$	30,740		0.38	%		2.49	%		35	%
	(0.09	)		—		(0.09	)	$	9.70		(2.11	)%^(E)	$	29,468		0.39	%^(F)		1.00	%^(F)		8	%^(E)

^(D)	Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

^(E)	Not annualized.

^(F)	Annualized

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 133

Corporate Credit Fund
Financial Highlights

Selected data for a share outstanding throughout the periods indicated

Corporate Credit Fund	Net asset value, beginning of year		Net investment income^(A)		Net realized and unrealized gains (losses) on investments			Total from investment operations			Dividends from net investment income
Class A
For the year ended December 31, 2020	$	11.47		0.51		0.53			1.04			(0.53	)
For the year ended December 31, 2019	$	10.77		0.58		0.78			1.36			(0.57	)
For the year ended December 31, 2018	$	11.32		0.59		(0.56	)		0.03			(0.58	)
For the year ended December 31, 2017	$	11.13		0.58		0.24			0.82			(0.58	)
For the year ended December 31, 2016	$	10.53		0.63		0.60			1.23			(0.62	)

Class C
For the year ended December 31, 2020	$	11.43		0.42		0.53			0.95			(0.45	)
For the year ended December 31, 2019	$	10.73		0.49		0.79			1.28			(0.49	)
For the year ended December 31, 2018	$	11.28		0.51		(0.56	)		(0.05	)		(0.50	)
For the year ended December 31, 2017	$	11.09		0.49		0.25			0.74			(0.50	)
For the year ended December 31, 2016	$	10.51		0.54		0.60			1.14			(0.55	)

Class I
For the year ended December 31, 2020	$	11.44		0.54		0.52			1.06			(0.56	)
For the year ended December 31, 2019	$	10.74		0.61		0.79			1.40			(0.61	)
For the year ended December 31, 2018	$	11.28		0.62		(0.54	)		0.08			(0.62	)
For the year ended December 31, 2017	$	11.09		0.61		0.24			0.85			(0.61	)
For the year ended December 31, 2016	$	10.50		0.66		0.59			1.25			(0.65	)

Class Y
For the year ended December 31, 2020	$	11.43		0.55		0.53			1.08			(0.58	)
For the year ended December 31, 2019	$	10.73		0.62		0.79			1.41			(0.62	)
For the year ended December 31, 2018	$	11.27		0.64		(0.55	)		0.09			(0.63	)
For the year ended December 31, 2017	$	11.09		0.62		0.24			0.86			(0.63	)
For the year ended December 31, 2016	$	10.50		0.67		0.59			1.26			(0.66	)

^(A)	Net investment income per share has been calculated using the average daily shares outstanding during the period.

^(B)	Total returns shown exclude the effect of applicable sales charges.

See accompanying Notes to Financial Statements.

134 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Distributions from net realized capital gains			Total distributions			Net asset value, end of year		Total return^(B)			Net assets, end of year (000’s)		Ratio of total net expenses to average net assets			Ratio of total gross expenses to average net assets^(C)			Ratio of net investment income to average net assets			Portfolio turnover rate^(D)

	(0.17	)		(0.70	)	$	11.81		9.49	%	$	161,659		0.91	%		0.91	%		4.51	%		173	%
	(0.09	)		(0.66	)	$	11.47		12.85	%	$	120,014		0.90	%		0.92	%		5.05	%		132	%
	—			(0.58	)	$	10.77		0.25	%	$	69,363		0.90	%		0.91	%		5.30	%		112	%
	(0.05	)		(0.63	)	$	11.32		7.56	%	$	64,204		0.92	%		0.93	%		5.07	%		83	%
	(0.01	)		(0.63	)	$	11.13		11.94	%	$	71,075		0.93	%		0.93	%		5.72	%		119	%


	(0.17	)		(0.62	)	$	11.76		8.65	%	$	29,510		1.66	%		1.66	%		3.76	%		173	%
	(0.09	)		(0.58	)	$	11.43		12.06	%	$	26,683		1.65	%		1.67	%		4.34	%		132	%
	—			(0.50	)	$	10.73		(0.51	)%	$	24,968		1.65	%		1.66	%		4.56	%		112	%
	(0.05	)		(0.55	)	$	11.28		6.77	%	$	26,656		1.67	%		1.68	%		4.33	%		83	%
	(0.01	)		(0.56	)	$	11.09		11.06	%	$	29,607		1.68	%		1.68	%		4.98	%		119	%


	(0.17	)		(0.73	)	$	11.77		9.74	%	$	1,724,397		0.62	%		0.62	%		4.79	%		173	%
	(0.09	)		(0.70	)	$	11.44		13.20	%	$	911,514		0.61	%		0.63	%		5.36	%		132	%
	—			(0.62	)	$	10.74		0.64	%	$	622,887		0.61	%		0.62	%		5.59	%		112	%
	(0.05	)		(0.66	)	$	11.28		7.87	%	$	536,203		0.62	%		0.63	%		5.39	%		83	%
	(0.01	)		(0.66	)	$	11.09		12.21	%	$	411,465		0.64	%		0.64	%		6.00	%		119	%


	(0.17	)		(0.75	)	$	11.76		9.88	%	$	104,552		0.50	%		0.50	%		4.91	%		173	%
	(0.09	)		(0.71	)	$	11.43		13.35	%	$	82,516		0.49	%		0.51	%		5.43	%		132	%
	—			(0.63	)	$	10.73		0.75	%	$	26,221		0.49	%		0.50	%		5.71	%		112	%
	(0.05	)		(0.68	)	$	11.27		7.89	%	$	25,309		0.52	%		0.53	%		5.49	%		83	%
	(0.01	)		(0.67	)	$	11.09		12.34	%	$	21,310		0.54	%		0.54	%		6.33	%		119	%

^(C)	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.

^(D)	Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 135

High Yield Fund
Financial Highlights

Selected data for a share outstanding throughout the periods indicated

High Yield Fund^(A)	Net asset value, beginning of year		Net investment income^(B)		Net realized and unrealized gains (losses) on investments			Total from investment operations
Class A
For the year ended December 31, 2020	$	11.02		0.60		0.81			1.41
For the year ended December 31, 2019	$	10.22		0.60		0.91			1.51
For the year ended December 31, 2018	$	10.77		0.62		(0.51	)		0.11
For the year ended December 31, 2017	$	10.65		0.65		0.38			1.03
For the year ended December 31, 2016	$	10.14		0.70		0.71			1.41

Class I
For the year ended December 31, 2020	$	11.03		0.64		0.80			1.44
For the year ended December 31, 2019	$	10.22		0.63		0.91			1.54
For the year ended December 31, 2018	$	10.78		0.65		(0.52	)		0.13
For the year ended December 31, 2017	$	10.65		0.68		0.39			1.07
For the year ended December 31, 2016	$	10.14		0.73		0.71			1.44

Class Y
For the year ended December 31, 2020	$	11.03		0.64		0.83			1.47
For the year ended December 31, 2019	$	10.22		0.65		0.91			1.56
For the year ended December 31, 2018	$	10.78		0.67		(0.53	)		0.14
For the year ended December 31, 2017	$	10.65		0.69		0.40			1.09
For the year ended December 31, 2016	$	10.14		0.74		0.71			1.45

^(A)	Inception date of the Fund is December 31, 2015. The Fund commenced public offering and operations on January 4, 2016.

^(B)	Net investment income per share has been calculated using the average daily shares outstanding during the period.

See accompanying Notes to Financial Statements.

136 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Dividends from net investment income			Distributions from net realized capital gains			Total distributions			Net asset value, end of year		Total return^(C)			Net assets, end of year (000’s)		Ratio of total net expenses to average net assets			Ratio of net investment income to average net assets			Portfolio turnover rate^(D)

	(0.58	)		(0.45	)		(1.03	)	$	11.40		13.40	%	$	39,496		0.96	%		5.46	%		186	%
	(0.60	)		(0.11	)		(0.71	)	$	11.02		15.04	%	$	18,004		0.97	%		5.49	%		164	%
	(0.61	)		(0.05	)		(0.66	)	$	10.22		0.97	%	$	1,674		0.96	%		5.81	%		145	%
	(0.65	)		(0.26	)		(0.91	)	$	10.77		9.96	%	$	296		0.99	%		5.89	%		137	%
	(0.66	)		(0.24	)		(0.90	)	$	10.65		14.29	%	$	185		0.99	%		6.51	%		123	%


	(0.62	)		(0.45	)		(1.07	)	$	11.40		13.62	%	$	651,836		0.67	%		5.81	%		186	%
	(0.62	)		(0.11	)		(0.73	)	$	11.03		15.44	%	$	96,563		0.68	%		5.79	%		164	%
	(0.64	)		(0.05	)		(0.69	)	$	10.22		1.16	%	$	23,499		0.67	%		6.10	%		145	%
	(0.68	)		(0.26	)		(0.94	)	$	10.78		10.36	%	$	14,185		0.69	%		6.23	%		137	%
	(0.69	)		(0.24	)		(0.93	)	$	10.65		14.62	%	$	23,989		0.70	%		6.80	%		123	%

					��
	(0.63	)		(0.45	)		(1.08	)	$	11.42		13.92	%	$	32,171		0.55	%		5.74	%		186	%
	(0.64	)		(0.11	)		(0.75	)	$	11.03		15.56	%	$	20,190		0.56	%		5.99	%		164	%
	(0.65	)		(0.05	)		(0.70	)	$	10.22		1.27	%	$	29,274		0.55	%		6.23	%		145	%
	(0.70	)		(0.26	)		(0.96	)	$	10.78		10.48	%	$	16,623		0.59	%		6.28	%		137	%
	(0.70	)		(0.24	)		(0.94	)	$	10.65		14.73	%	$	7,752		0.60	%		7.07	%		123	%

^(C)	Total returns shown exclude the effect of applicable sales charges.

^(D)	Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 137

Diamond Hill Funds
Notes to Financial Statements
December 31, 2020

Organization

The 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 All Cap Select Fund (“All Cap Select Fund”), Diamond Hill Long-Short Fund (“Long-Short Fund”), Diamond Hill Global Fund (“Global Fund”), Diamond Hill International Fund (“International Fund”), Diamond Hill Short Duration Securitized Bond Fund (formerly Diamond Hill Short Duration Total Return Fund) (“Short Duration Fund”), Diamond Hill Core Bond Fund (“Core Bond Fund”), Diamond Hill Corporate Credit Fund (“Corporate Credit Fund”) and Diamond Hill High Yield Fund (“High Yield Fund”) are each a diversified series, except for the All Cap Select Fund which is non-diversified, of the Diamond Hill Funds (the “Trust”) (each a “Fund” and collectively the “Funds”). The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management company. Each Fund follows accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, “Financial Services – Investment Companies.”

In June 2019, the partners of the Diamond Hill International Fund, L.P. (the “International Partnership”) approved the conversion of the International Partnership into the International Fund effective July 1, 2019. The International Fund is a successor to the International Partnership and has substantially the same investment objectives and strategies as did the International Partnership. The net assets contributed resulting from these tax-free transactions was $3,996,233, including net unrealized appreciation of $227,053. In addition, limited partners of the International Partnership were issued shares in the International Fund based on the July 1, 2019 opening net asset value (“NAV”) per share of the International Fund. A total of 295,000 shares were issued at a NAV per share of $13.55. For financial reporting purposes, assets received and shares issued were recorded at fair value; however, the cost basis of the investments received was carried forward to align ongoing reporting of the International Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

The shareholders of the Diamond Hill Research Opportunities Fund (“Research Opportunities Fund”) approved an Agreement and Plan of Reorganization providing for the transfer of all assets and liabilities of the Research Opportunities Fund to the Long-Short Fund. The tax-free reorganization took place on October 23, 2020.

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Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2020

The following is a summary of shares outstanding, net assets, NAV per share and unrealized appreciation immediately before and after the reorganization.

	Before Reorganization				After Reorganization
	Research Opportunities Fund		Long-Short Fund		Long-Short Fund
Class A
Shares		243,462		6,253,187		6,479,452
Net Assets	$	5,435,645	$	150,222,454	$	155,658,099
Net Asset Value	$	22.33	$	24.02	$	24.02

Class C
Shares		36,823		1,118,057		1,154,420
Net Assets	$	762,183	$	23,434,970	$	24,197,153
Net Asset Value	$	20.70	$	20.96	$	20.96

Class I
Shares		543,462		70,251,484		70,750,622
Net Assets	$	12,333,406	$	1,735,872,171	$	1,748,205,577
Net Asset Value	$	22.69	$	24.71	$	24.71

Class Y
Shares		734,442		2,221,312		2,894,259
Net Assets	$	16,713,103	$	55,167,785	$	71,880,888
Net Asset Value	$	22.76	$	24.84	$	24.84

Fund Total
Shares		1,558,189		79,844,040		81,278,753
Net Assets	$	35,244,337	$	1,964,697,380	$	1,999,941,717
Unrealized Appreciation	$	4,237,914	$	444,804,189	$	449,042,103

Assuming the reorganization had been completed on January 1, 2020, the beginning of the annual reporting period of the Long-Short Fund, the Long-Short Fund’s pro forma results of operations for the year ended December 31, 2020, would have been as follows:

Net Investment Income	Net Realized Gains and Net Change in Unrealized Appreciation (Depreciation) on Investments	Change in Net Assets from Operations
$8,756,035	$(265,355,863)	$(256,599,828)

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 139

Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2020

For financial reporting purposes, assets received and shares issued by the Long-Short Fund were recorded at fair value; however, the cost basis of the investments received from the Research Opportunities Fund was carried forward to align ongoing reporting of the Long-Short Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

With the exception of the Mid Cap Fund, Global Fund, International Fund, Short Duration Fund, Core Bond Fund and High Yield Fund, the Funds offer four classes of shares: Class A, Class C, Class I and Class Y. The Mid Cap Fund, Global Fund, International Fund, Short Duration Fund, Core Bond Fund and High Yield Fund offer three classes of shares: Class A, Class I and Class Y. Each class of shares for each Fund has identical rights and privileges except with respect to distribution (12b-1) and service fees, voting rights on matters affecting a single class of shares, exchange privileges of each class of shares and sales charges. With the exception of the Short Duration Fund, Core Bond Fund, Corporate Credit Fund and High Yield Fund, Class A has a maximum sales charge on purchases of 5.00% as a percentage of the original purchase price. The Short Duration Fund has a maximum sales charge on purchases of 2.25% and the Core Bond Fund, Corporate Credit Fund and High Yield Fund have a maximum sales charge on purchases of 3.50% as a percentage of the original purchase price. Class C has a contingent deferred sales charge of 1.00% for shares redeemed within one year of the purchase date.

New Accounting Pronouncement

In March 2020, the FASB issued Accounting Standards Update No. 2020-04 (“ASU 2020-04”), “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”. ASU 2020-04 provides optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the London Interbank Offered Rate (“LIBOR”) and other interbank -offered based reference rates at the end of 2021. ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. The Funds will consider this optional guidance prospectively, if applicable.

Significant Accounting Policies

The following is a summary of the Funds’ significant accounting policies:

Estimates — The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

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Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2020

Security valuation — The Funds record their investments at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The valuation techniques used by the Funds maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. These inputs are summarized in the three broad levels listed below:

●	Level 1 — quoted prices in active markets for identical securities

●	Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

●	Level 3 — significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments)

Listed securities for which market quotations are readily available are valued at the closing prices as determined by the primary exchange where the securities are traded. Unlisted securities or listed securities for which the latest sales prices are not readily available are valued at the closing bid (long positions) or ask (short positions) price in the principal market where such securities are normally traded. Investments in other open-end investment companies are valued at their reported NAV per share. In each of these situations, valuations are typically categorized as Level 1 in the fair value hierarchy.

Debt securities are valued on the basis of valuations provided by dealers or by an independent pricing service which take into account appropriate factors such as trading activity (i.e., market transactions for normal, institutional-size trading units of similar securities), readily available market quotations (including broker quotes), yield, quality, coupon rate, maturity, type of issue, trading characteristic, call features, credit ratings and other data. Short-term debt investments of sufficient credit quality maturing in less than 61 days may be valued at amortized cost, if amortized cost is determined to approximate fair value. In each of these situations, valuations are typically categorized as Level 2 in the fair value hierarchy.

Securities for which market quotations are not readily available (e.g., an approved pricing service does not provide a price, a price becomes stale, or an event occurs that materially affects the furnished price) are valued by the Valuation & Liquidity Committee. In these cases, the Valuation & Liquidity Committee, established and appointed by the Board of Trustees, determines in good faith, subject to Trust procedures, the fair value of portfolio securities held by a Fund (“good faith fair valuation”). When a good faith fair valuation of a security is required, consideration is generally given to a number of factors, including, but not limited to the following: dealer quotes, published analyses by dealers or analysts of the situation at issue, transactions implicitly valuing the security (such as a merger, tender offer, etc.), the value of other securities or contracts which derive their value from the security at issue, and the implications (whether negative or positive) of the circumstances which have caused trading in the security to halt. Depending on the source and relative significance of the valuation inputs in these instances, the valuations for these securities may be classified as Level 2 or Level 3 in the fair value hierarchy.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 141

Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2020

In accordance with procedures adopted by the Trust’s Board of Trustees, fair value pricing may be used if events materially affecting the value of foreign equity securities occur between the time the exchange on which they are traded closes and the time the Funds’ NAVs are calculated. The Funds use a systematic valuation model, provided daily by an independent third party, to fair value their international equity securities. These valuations are considered as Level 2 in the fair value hierarchy.

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.

The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. For example, short-term debt securities of sufficient credit quality maturing in less than 61 days may be valued using amortized cost in accordance with rules under the 1940 Act. Generally, amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, such securities are reflected as Level 2. The following is a summary of the Funds’ investments and the inputs used to value the investments as of December 31, 2020:

	Level 1 - Quoted Prices		Level 2 - Other Significant Observable Inputs		Level 3 - Significant Unobservable Inputs		Total
Investments in Securities (Assets)
Small Cap Fund
Common Stocks*	$	525,113,817	$	—	$	—	$	525,113,817
Registered Investment Companies		10,351,037		—		—		10,351,037
Total	$	535,464,854	$	—	$	—	$	535,464,854
Small-Mid Cap Fund
Common Stocks*	$	1,853,233,678	$	—	$	—	$	1,853,233,678
Registered Investment Companies		122,495,007		—		—		122,495,007
Total	$	1,975,728,685	$	—	$	—	$	1,975,728,685
Mid Cap Fund
Common Stocks*	$	235,249,174	$	—	$	—	$	235,249,174
Registered Investment Companies		16,430,057		—		—		16,430,057
Total	$	251,679,231	$	—	$	—	$	251,679,231
Large Cap Fund
Common Stocks*	$	8,011,466,378	$	—	$	—	$	8,011,466,378
Registered Investment Companies		287,882,356		—		—		287,882,356
Total	$	8,299,348,734	$	—	$	—	$	8,299,348,734
All Cap Select Fund
Common Stocks*	$	319,148,139	$	—	$	—	$	319,148,139
Registered Investment Companies		10,647,502		—		—		10,647,502
Total	$	329,795,641	$	—	$	—	$	329,795,641

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Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2020

	Level 1 - Quoted Prices			Level 2 - Other Significant Observable Inputs			Level 3 - Significant Unobservable Inputs		Total
Long-Short Fund
Common Stocks*	$	1,875,260,783		$	—		$	—	$	1,875,260,783
Registered Investment Companies		452,721,436			—			—		452,721,436
Total	$	2,327,982,219		$	—		$	—	$	2,327,982,219
Global Fund
Common Stocks	$	11,086,409		$	4,973,698		$	—	$	16,060,107
Registered Investment Companies		288,618			—			—		288,618
Total	$	11,375,027		$	4,973,698		$	—	$	16,348,725
International Fund
Common Stocks	$	5,803,088		$	10,617,943		$	—	$	16,421,031
Warrants		2,161			—			—		2,161
Registered Investment Companies		418,233			—			—		418,233
Total	$	6,223,482		$	10,617,943		$	—	$	16,841,425
Short Duration Fund
Corporate Credit*	$	—		$	17,763,781		$	—	$	17,763,781
Securitized*		—			960,478,006			—		960,478,006
Registered Investment Companies		154,882,412			—			—		154,882,412
Total	$	154,882,412		$	978,241,787		$	—	$	1,133,124,199
Core Bond Fund
Corporate Credit*	$	—		$	52,479,133		$	—	$	52,479,133
Government Related*		—			1,329,939			—		1,329,939
Securitized*		—			213,772,008			—		213,772,008
Treasury		—			63,502,954			—		63,502,954
Registered Investment Companies		25,450,262			—			—		25,450,262
Total	$	25,450,262		$	331,084,034		$	—	$	356,534,296
Corporate Credit Fund
Collateralized Debt Obligations	$	—		$	1,386,466		$	—	$	1,386,466
Corporate Bonds*		—			1,888,506,900	**		—		1,888,506,900
Registered Investment Companies		161,167,953			—			—		161,167,953
Total	$	161,167,953		$	1,889,893,366		$	—	$	2,051,061,319
High Yield Fund
Corporate Bonds*	$	—		$	690,243,377	**	$	—	$	690,243,377
Securitized*		—			530,785			—		530,785
Registered Investment Companies		39,692,604			—			—		39,692,604
Total	$	39,692,604		$	690,774,162		$	—	$	730,466,766
Investments in Securities Sold Short (Liabilities)
Long-Short Fund
Common Stocks*	$	(590,817,468	)	$	—		$	—	$	(590,817,468	)
Total	$	(590,817,468	)	$	—		$	—	$	(590,817,468	)

*	See Schedule of Investments and Schedule of Investments Sold Short for industry classification.

**	Corporate Credit Fund and High Yield Fund hold Corporate Bonds that have been fair valued at $0.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 143

Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2020

There were no transfers into or out of Level 3 for the year ended December 31, 2020.

Short sales — The Long-Short Fund, Global Fund, International Fund, Corporate Credit Fund and High Yield Fund are permitted to make short sales of securities. Short sales are effective when it is believed that the price of a particular security will decline and involves the sale of a security that the Fund does not own in hope of purchasing the same security at a later date at a lower price. To make delivery to the buyer, a 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. Cash received from short sales and other liquid securities are maintained by the custodian and are used as collateral. Cash collateral is shown as “Cash deposits with custodian for securities sold short” on the Statements of Assets & Liabilities and “Segregated Cash With Custodian” on the Schedules of Investments. Liquid securities pledged as collateral are noted on the Schedules of Investments.

A Fund will incur a loss as a result of a short sale if the price of the security increases between the date of the short sale and the date on which the Fund purchases the security to replace the borrowed security. Although a Fund’s gain is limited to the amount at which it sold a security short, its potential loss is not limited. The use of short sales may cause a Fund to have higher expenses (specifically dividend expenses) than those of other equity mutual funds. Short sales are speculative transactions and involve special risks, including greater reliance on the ability of the Funds’ investment adviser, Diamond Hill Capital Management, Inc. (“DHCM”), to accurately anticipate the future value of a security.

A Fund may also incur stock loan fees which represent the cost of borrowing securities used for short sale transactions. A Fund may also earn rebates as an element of the custodian arrangement, which are recorded as an offset to stock loan fees on short sales transactions. The stock loan fees on short sales are recognized on the Statements of Operations. In the event that rebates exceed the stock loan fees on short sales, the net rebates are recognized as a component of investment income on the Statements of Operations.

Securities lending — Under the terms of the securities lending agreement with State Street Bank and Trust Company (“State Street”), State Street is authorized to loan securities on behalf of the Funds to approved borrowers. The contractual maturity of securities lending transactions is on an overnight and continuous basis. In exchange, the Funds receive cash and/or U.S. Treasury and government agency securities as collateral in the amount of at least 100% of the value of the securities loaned. Any collateral shortfalls due to changes in security market prices are adjusted the next business day. The cash collateral is invested in short-term instruments as noted in each Fund’s Schedule of Investments. Although risk is mitigated by the collateral, the Funds could experience a delay in recovering their securities and possible loss of income or value if the borrower fails to return them. The agreement indemnifies the Funds from losses incurred in the event of a borrower’s material default of the terms and conditions of the borrower agreement. The agreement provides that after predetermined rebates to borrowers, the Funds each retain a portion of their respective net securities lending income and pay State Street the remaining portion. The Funds manage credit exposure arising from these lending transactions by, in

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Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2020

appropriate circumstances, entering into a master netting agreement and collateral agreement with State Street that provide the Funds, in the event of default (such as bankruptcy or borrower’s failure to pay or perform), the right to net rights and obligations under such agreements and liquidate and set off collateral against the net amount owed to the Funds.

As of December 31, 2020, the fair value of securities on loan and the collateral held were as follows:

			Fair Value of Collateral
	Fair Value of Securities Loaned		Cash Collateral		Non-Cash Collateral*		Total Collateral
Small Cap Fund	$	18,781,723	$	—	$	19,484,348	$	19,484,348
Small-Mid Cap Fund		29,051,172		21,331,083		8,527,451		29,858,534
Large Cap Fund		101,354,889		—		103,217,672		103,217,672
All Cap Select Fund		8,664,569		2,799,197		5,951,714		8,750,911
Long-Short Fund		289,541,747		294,518,354		—		294,518,354
Global Fund		37,272		38,200		—		38,200
International Fund		153,943		20,301		142,170		162,471
Short Duration Fund		2,727,520		2,801,555		—		2,801,555
Core Bond Fund		30,526,114		17,812,661		13,477,873		31,290,534
Corporate Credit Fund		47,761,938		49,171,063		376,200		49,547,263
High Yield Fund		12,071,457		12,446,605		—		12,446,605

*	These securities are held for the benefit of the Funds at the Funds’ custodian. The Funds cannot repledge or resell this collateral. As such, collateral is excluded from the Statements of Assets and Liabilities.

Security transactions — Throughout the reporting period, investment transactions are generally recorded on trade date but no later than the first business day following trade date. For financial reporting purposes, investments are recorded on trade date. The specific identification method is used for determining realized gains or losses for financial statements and income tax purposes. Dividend income and expense are recognized on the ex-dividend date and interest income is recognized on an accrual basis. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Taxes on foreign dividends and/or capital gains have been recorded for in accordance with the Funds’ understanding of the applicable country’s tax rules and rates. Discounts and premiums on securities purchased are amortized using the daily effective yield method and included in interest income. The Funds record distributions received from investments in real estate investment trusts (also known as “REITs”) and partnerships in excess of income from underlying investments as a reduction of cost of investments and/or realized gain. Such amounts are based on estimates if actual amounts are not available, and actual amounts of income, realized gain and return of capital may differ from the estimated amounts. The Funds adjust the estimated amounts once the issuers provide information about the actual composition of the distributions. Interest only stripped mortgage-backed securities (“IO Strips”) are securities that receive only interest payments from a pool of

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Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2020

mortgage loans. Little to no principal will be received by the Funds upon maturity of an IO Strip. Periodic adjustments are recorded to reduce the cost of the security until maturity, which are included in interest income.

Share valuation — The NAV per share of each class of shares of each Fund is calculated daily by dividing the total value of a Fund’s assets attributable to that class, less liabilities attributable to that class, by the number of shares of that class outstanding.

Income taxes — The Funds may be subject to taxes imposed by countries in which they invest. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and unrealized appreciation as such income and/or gains are earned.

Each Fund has complied and intends to continue to comply with the requirements of the Internal Revenue Code that are applicable to regulated investment companies and to distribute substantially all of its taxable net investment income and any net realized capital gains to its shareholders.

The Funds recognize tax benefits or expenses of uncertain tax positions only when the position is “more likely than not” to be sustained assuming examination by tax authorities. Management of the Funds has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the previous three tax year ends and the interim tax period since then, as applicable), and has concluded that no provision for unrecognized tax benefits or expenses is required in these financial statements and does not expect this to change over the next twelve months. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense on the Statements of Operations. During the year ended December 31, 2020, the Funds did not incur any interest or penalties.

Distributions to shareholders — Dividends from net investment income are declared and paid monthly for the Short Duration Fund, Core Bond Fund, Corporate Credit Fund and High Yield Fund. Dividends from net investment income are declared and paid on an annual basis for the Small Cap Fund, Small-Mid Cap Fund, Mid Cap Fund, Large Cap Fund, All Cap Select Fund, Long-Short Fund, Global Fund and International Fund. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share rates are due to differences in the expenses of each class. Net realized capital gains, if any, are distributed at least annually. Distributions from net investment income and from net capital gains are determined in accordance with U.S. income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatments for paydown gains and losses on mortgage-backed securities and deferrals of certain losses. Permanent book and tax basis differences are reclassified among the components of net assets. Certain Funds may utilize earnings and profits distributed to shareholders on redemption of shares as part of the dividends paid deduction for income tax purposes.

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Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2020

Allocations — Investment income earned, realized capital gains and losses, and unrealized appreciation and depreciation are allocated daily to each class of shares of a Fund based upon its proportionate share of total net assets of the Fund. Class specific expenses are charged directly to the class incurring the expense. Common expenses, which are not attributable to a specific class, are allocated daily to each class of shares based upon its proportionate share of total net assets of the Fund. Expenses not directly billed to a Fund are allocated proportionally among all Funds daily in relation to net assets of each Fund or another reasonable measure.

Foreign securities risk — Investing in non-U.S. securities may entail risk due to foreign economic and political developments; this risk may be higher when investing in emerging markets. Changes in currency exchange rates and differences in accounting and taxation policies outside the U.S. can raise or lower returns.

Foreign currency translation — The books and records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars on the date of valuation. The Funds do not isolate that portion of realized or unrealized gains and losses resulting from changes in the foreign exchange rate from fluctuations arising from changes in the market prices of the securities. These gains and losses are included in net realized and unrealized gains (losses) on investments on the Statements of Operations. Net realized and unrealized gains (losses) on foreign currency transactions represent net foreign exchange gains or losses from foreign currency exchange contracts, disposition of foreign currencies, currency gains or losses realized between trade and settlement dates on securities transactions and the difference between the amount of the investment income and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent amounts actually received or paid.

Investment Transactions

For the year ended December 31, 2020, purchases and sales (including maturities) of investment securities (excluding short-term securities, U.S. government obligations and in-kind transactions) were as follows:

	Purchases		Sales
Small Cap Fund	$	170,458,890	$	345,352,063
Small-Mid Cap Fund		536,884,820		789,491,330
Mid Cap Fund		137,877,619		108,600,965
Large Cap Fund		2,877,544,428		2,118,164,428
All Cap Select Fund		202,476,641		190,937,316
Long-Short Fund		1,356,812,198		2,862,808,386
Global Fund		17,917,763		22,107,311
International Fund		8,394,799		6,402,324
Short Duration Fund		749,278,920		572,117,582
Core Bond Fund		210,684,977		46,662,251
Corporate Credit Fund		3,024,563,990		2,206,311,665
High Yield Fund		1,151,834,073		675,444,348

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Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2020

The Funds pay commissions on the purchase and sale of investment securities. The commissions are treated as transaction costs and, therefore, are included as part of the cost of purchases or net proceeds on the sale of investment securities and are not included in the presentation of Fund expenses on the Statements of Operations. The Funds paid the following commissions during the year ended December 31, 2020:

	Total Commissions		Commissions as a % of Average Net Assets
Small Cap Fund	$	372,691		0.07	%
Small-Mid Cap Fund		752,678		0.04	%
Mid Cap Fund		107,363		0.05	%
Large Cap Fund		1,313,669		0.02	%
All Cap Select Fund		170,044		0.07	%
Long-Short Fund		1,379,369		0.06	%
Global Fund		31,131		0.19	%
International Fund		19,433		0.15	%

Investment Advisory Fees and Other Transactions with Affiliates

As of December 31, 2020, the Small Cap Fund, Small-Mid Cap Fund, Mid Cap Fund, Large Cap Fund, All Cap Select Fund, Long-Short Fund, Global Fund, International Fund, Short Duration Fund, Core Bond Fund, Corporate Credit Fund and High Yield Fund each receive investment management and advisory services from DHCM under management agreements that provide for fees to be paid monthly at an annual rate of 0.80%, 0.75%, 0.60%, 0.50%, 0.70%, 0.90%, 0.65%, 0.65%, 0.35%, 0.30%, 0.45% and 0.50%, respectively, of the Fund’s average daily net assets. The management agreements are subject to annual approval by the Board of Trustees. In addition, each Fund has entered into an administrative services agreement whereby DHCM is paid a fee monthly at an annual rate of 0.21% for Class A Shares and Class C Shares, 0.17% for Class I Shares and 0.05% for Class Y shares of each class’ average daily net assets. These administrative fees are used to pay most of the Funds’ operating expenses except advisory fees, distribution fees, custody fees, brokerage fees, taxes, interest and dividend expense on securities sold short and extraordinary expenses.

Pursuant to Rule 12b-1 under the 1940 Act, the Trust has adopted a distribution plan on behalf of each Fund’s Class A and Class C Shares (the “Plan”). Under the Plan, Class A shares pay a distribution fee monthly at an annual rate of 0.25% of Class A average daily net assets. Class C shares pay distribution and shareholder-servicing fees monthly at an annual rate of 0.75% and 0.25%, respectively, of Class C’s average daily net assets. Class I and Class Y shares are not subject to any distribution or shareholder-servicing fees. The Trust has entered into a Distribution

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Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2020

Agreement on behalf of the Funds with Foreside Financial Services, LLC (“Distributor”). Pursuant to the Distribution Agreement, the Distributor acts as principal underwriter of each Fund’s shares.

During the year ended December 31, 2020, the Distributor retained the following amounts in sales commissions from the sales of Class A shares of the Funds as follows:

Small Cap Fund	$	880
Small-Mid Cap Fund		1,217
Mid Cap Fund		748
Large Cap Fund		26,962
All Cap Select Fund		269
Long-Short Fund		2,602
International Fund		586
Short Duration Fund		577
Corporate Credit Fund		20,778
High Yield Fund		4,207

DHCM, as the financing agent for Class C shares, received contingent deferred sales charges relating to the redemptions of Class C shares of the Funds during the year ended December 31, 2020 as follows:

Small Cap Fund	$	21
Small-Mid Cap Fund		1,811
Large Cap Fund		3,272
All Cap Select Fund		236
Long-Short Fund		131
Corporate Credit Fund		48

The Funds may invest in one or more Diamond Hill Funds. 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 Funds. This fee waiver is accrued daily and settled monthly. During the year ended December 31, 2020, the Funds reduced investment advisory fees as follows:

Small-Mid Cap Fund	$	100,162
Mid Cap Fund		6,076
Long-Short Fund		172,953
Corporate Credit Fund		60,152

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Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2020

The Small-Mid Cap Fund, Mid Cap Fund, Long-Short Fund and Corporate Credit Fund each own or had owned Class Y shares of the Short Duration Fund, thereby making the Short Duration Fund an affiliated company as defined by the 1940 Act.

Information regarding the Funds’ holdings in the Short Duration Fund during the year ended December 31, 2020 is as follows:

Affiliated Fund	Small-Mid Cap Fund			Mid Cap Fund			Long-Short Fund			Corporate Credit Fund
Diamond Hill Short Duration Securitized Bond Fund
Value, December 31, 2019	$	40,751,490		$	2,345,400		$	68,433,025		$	51,021,763
Purchases		956,341			57,541			1,679,197			3,592,741
Sales		(15,000,000	)		(700,000	)		(34,000,000	)		(50,418,571	)
Realized Losses		(9,028	)		(75,396	)		(1,126,909	)		(4,046,880	)
Change in Unrealized Appreciation (Depreciation)		(55,484	)		(870	)		(148,435	)		(149,053	)
Value, December 31, 2020	$	26,643,319		$	1,626,675		$	34,836,878		$	—
Income Distributions	$	956,341		$	57,541		$	1,679,197		$	592,741

During the year ended December 31, 2020, the former Research Opportunities Fund, Corporate Credit Fund and High Yield Fund sold securities to the Short Duration Fund, Corporate Credit Fund and High Yield Fund. These transactions, which were affected at the then current market prices as provided by an independent pricing service used by the Trust, complied with Rule 17a-7 under the 1940 Act. The transactions were as follows:

Selling Fund	Purchasing Fund	Net Proceeds		Net Gain (Loss)
Research Opportunities Fund	Corporate Credit Fund	$	1,021,466	$	50,820
Research Opportunities Fund	High Yield Fund		207,800		14,406
Corporate Credit Fund	High Yield Fund		98,622,366		(12,510,086	)
High Yield Fund	Corporate Credit Fund		80,381,057		5,521,598
High Yield Fund	Short Duration Fund		4,587,622		(352,646	)

The Officers of the Trust are affiliated with DHCM. Such Officers receive no compensation from the Funds for serving in their respective roles.

Trustee Fees

The Independent Trustees are compensated for their services to the Funds by DHCM as part of the administration services agreement. The Independent Trustees were paid $647,875 in fees during the year ended December 31, 2020. In addition, DHCM reimburses Trustees for out-of-pocket expenses incurred in conjunction with attendance of meetings.

Commitments and Contingencies

The Funds indemnify the Trust’s Officers and Trustees for certain liabilities that might arise from their performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties and which

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Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2020

provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

Federal Tax Information

The amount and character of income and capital gain distributions paid by the Funds are determined in accordance with Federal income tax regulations, which may differ from GAAP.

The tax character of distributions paid during the years or period ended December 31, 2020 and 2019 were as follows:

	Small Cap Fund				Small-Mid Cap Fund				Mid Cap Fund
	2020		2019		2020		2019		2020		2019
Distributions paid from:
Ordinary income	$	2,925,606	$	9,777,452	$	13,930,483	$	22,520,202	$	1,495,087	$	1,309,016
Long-term capital gains		—		41,924,707		786,910		96,840,200		376,407		3,308,543
Total distributions	$	2,925,606	$	51,702,159	$	14,717,393	$	119,360,402	$	1,871,494	$	4,617,559

	Large Cap Fund				All Cap Select Fund				Long-Short Fund
	2020		2019		2020		2019		2020			2019
Distributions paid from:
Ordinary income	$	86,692,884	$	76,750,034	$	1,790,659	$	378,966	$	8,842,071		$	29,241,845
Long-term capital gains		192,809,037		232,666,505		—		4,355,643		15,843,708	��		188,106,126
Total distributions	$	279,501,921	$	309,416,539	$	1,790,659	$	4,734,609	$	24,685,779		$	217,347,971

	Global Fund				International Fund				Short Duration Fund
	2020		2019		2020		2019		2020		2019
Distributions paid from:
Ordinary income	$	139,065	$	240,628	$	109,630	$	48,725	$	30,109,298	$	28,180,506
Long-term capital gains		—		—		79,270		3,173		—		—
Total distributions	$	139,065	$	240,628	$	188,900	$	51,898	$	30,109,298	$	28,180,506

	Core Bond Fund				Corporate Credit Fund				High Yield Fund
	2020		2019		2020		2019		2020		2019
Distributions paid from:
Ordinary income	$	5,006,585	$	2,323,156	$	97,728,597	$	57,866,445	$	49,580,749	$	7,005,691
Long-term capital gains		—		—		803,265		1,612,910		34,875		—
Total distributions	$	5,006,585	$	2,323,156	$	98,531,862	$	59,479,355	$	49,615,624	$	7,005,691

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Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2020

The following information is computed on a tax basis for each item as of December 31, 2020:

	Small Cap Fund		Small-Mid Cap Fund			Mid Cap Fund			Large Cap Fund
Net unrealized appreciation on portfolio investments	$	215,708,815	$	362,391,359		$	33,805,619		$	2,380,251,740
Undistributed ordinary income		55,253		278,200			—			—
Undistributed capital gains		6,856,758		—			—			89,107,124
Accumulated capital and other losses		—		(3,354,892	)		(12,325,192	)		—
Distributable earnings	$	222,620,826	$	359,314,667		$	21,480,427		$	2,469,358,864

	All Cap Select Fund			Long-Short Fund		Global Fund			International Fund
Net unrealized appreciation on portfolio investments	$	87,833,932		$	589,800,245	$	2,749,567		$	2,612,062
Undistributed ordinary income		1,678,766			—		48,971			868
Undistributed capital gains		—			15,269,684		—			—
Accumulated capital and other losses		(54,851	)		—		(2,142,237	)		(199,756	)
Distributable earnings	$	89,457,847		$	605,069,929	$	656,301		$	2,413,174

	Short Duration Fund			Core Bond Fund		Corporate Credit Fund		High Yield Fund
Net unrealized appreciation on portfolio investments	$	15,991,832		$	9,708,335	$	60,805,275	$	30,855,658
Undistributed ordinary income		—			102,427		15,248,246		6,667,795
Undistributed capital gains		—			—		—		280,992
Accumulated capital and other losses		(7,264,788	)		—		—		—
Distributable earnings	$	8,727,044		$	9,810,762	$	76,053,521	$	37,804,445

As of December 31, 2020, the Funds’ federal tax cost of portfolio investments and net unrealized appreciation (depreciation) on portfolio investments including short sales, where applicable, were as follows:

	Small Cap Fund			Small-Mid Cap Fund			Mid Cap Fund			Large Cap Fund
Tax cost of portfolio investments	$	319,756,039		$	1,613,337,326		$	217,873,612		$	5,919,096,994
Gross unrealized appreciation		222,077,375			471,787,892			49,950,654			2,524,636,478
Gross unrealized depreciation		(6,368,560	)		(109,396,533	)		(16,145,035	)		(144,384,738	)
Net unrealized appreciation on portfolio investments	$	215,708,815		$	362,391,359		$	33,805,619		$	2,380,251,740

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Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2020

	All Cap Select Fund			Long-Short Fund			Global Fund			International Fund
Tax cost of portfolio investments	$	241,961,709		$	1,147,364,506		$	13,599,158		$	14,229,363
Gross unrealized appreciation		90,855,503			710,966,400			2,768,551			3,259,989
Gross unrealized depreciation		(3,021,571	)		(121,166,155	)		(18,984	)		(647,927	)
Net unrealized appreciation on portfolio investments	$	87,833,932		$	589,800,245		$	2,749,567		$	2,612,062

	Short Duration Fund			Core Bond Fund			Corporate Credit Fund			High Yield Fund
Tax cost of portfolio investments	$	1,117,132,367		$	346,825,961		$	1,990,256,044		$	699,611,108
Gross unrealized appreciation		28,502,923			11,322,654			77,075,289			33,120,889
Gross unrealized depreciation		(12,511,091	)		(1,614,319	)		(16,270,014	)		(2,265,231	)
Net unrealized appreciation on portfolio investments	$	15,991,832		$	9,708,335		$	60,805,275		$	30,855,658

The difference between book basis and tax basis net unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales and unreversed inclusions of Passive Foreign Investment Companies.

For the latest tax year ended December 31, 2020, the following Funds have capital loss carry forwards (“CLCFs”) as summarized below.

CLCFs not subject to expiration:

	Small-Mid Cap Fund		Mid Cap Fund		All Cap Select Fund		Long-Short Fund
No expiration - short-term	$	3,354,892	$	8,184,019	$	54,851	$	117,296
No expiration - long-term		—		4,141,173		—		—
	$	3,354,892	$	12,325,192	$	54,851	$	117,296

	Global Fund		International Fund		Short Duration Fund
No expiration - short-term	$	596,082	$	112,610	$	4,821,867
No expiration - long-term		1,546,155		87,146		2,442,921
	$	2,142,237	$	199,756	$	7,264,788

During the year ended December 31, 2020, All Cap Select Fund utilized $2,023,670 of short-term CLCFs and $2,116,104 of long-term CLCFs to offset current year realized gains and Core Bond Fund utilized $68,818 of short-term CLCFs and $124,361 of long-term CLCFs to offset current year realized gains. As a result of the merger described in Note 1, pre-merger short-term CLCFs of $172,233, which were acquired by Long-Short Fund from Research Opportunities Fund, are subject to annual limitations under Sections 381-384 of the Code. The amount utilized for the year ended December 31, 2020, was $54,937 to offset current year gains.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 153

Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2020

Reclassifications of capital accounts – Reclassifications result primarily from utilization of earnings and profits on shareholder redemptions. The following reclassifications have no impact on the net assets or NAV per share of the Funds and are designed to present each Fund’s capital accounts on a tax basis:

	Paid-In Capital			Distributable Earnings
Small Cap Fund	$	18,043,148		$	(18,043,148	)
Small-Mid Cap Fund		12,345,472			(12,345,472	)
Mid Cap Fund		(3,575	)		3,575
Large Cap Fund		15,431,078			(15,431,078	)
All Cap Select Fund		—			—
Long-Short Fund		8,142,626			(8,142,626	)
Global Fund		—			—
International Fund		—			—
Short Duration Fund		(3,007,853	)		3,007,853
Core Bond Fund		—			—
Corporate Credit Fund		208,197			(208,197	)
High Yield Fund		606,251			(606,251	)

In-Kind Redemption Transactions

During the year ended December 31, 2020, Small-Mid Cap Fund realized $16,852,506 of net capital gains resulting from in-kind redemptions (redemptions in which shareholders who redeemed Fund shares received investment securities held by the Fund rather than cash). The Fund recognizes a gain on in-kind redemptions to the extent that the value of the distributed investment securities on the date of redemption exceeds the cost of those investment securities. Such gains are not taxable to the Fund and are not required to be distributed to shareholders. The Fund has reclassified this amount against paid-in capital on the Statements of Assets and Liabilities. Such reclassification, the result of permanent differences between the financial statement and income tax reporting requirements, had no effect on the Fund’s net assets or NAV per share.

Borrowings

The Small Cap Fund, Small-Mid Cap Fund, Mid Cap Fund, Large Cap Fund, All Cap Select Fund, Long-Short Fund, Global Fund, International Fund, Short Duration Fund, Core Bond Fund, Corporate Credit Fund and High Yield Fund each has an unsecured line of credit up to 20.0%, 20.0%, 20.0%, 33.3%, 25.0%, 15.0%, 20.0%, 20.0%, 20.0%, 20.0%, 15.0% and 15.0%, respectively, of its net assets, with a total maximum of $40,000,000.

Borrowings under the agreement bear interest at the higher of Federal Funds Rate or one month LIBOR plus 1.25%. The line of credit is available until June 2, 2021, unless extended, when any advances are to be repaid. During the year ended December 31, 2020, Short Duration Fund

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Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2020

incurred $53,171 of interest expense related to borrowings. The average debt outstanding and the weighted average interest rate for days with borrowing for the Short Duration Fund during the year ended December 31, 2020 were $40,000,000 and 2.18%, respectively. The largest outstanding borrowing during the year ended December 31, 2020 was $40,000,000. During the year ended December 31, 2020, no other Funds drew from the available lines.

In accordance with an exemptive order (the “Order”) from the U.S. Securities and Exchange Commission (“SEC”), the Funds may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by each Fund’s investment policies and restrictions. A lending fund may lend in aggregate up to 15% of its net assets, but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing fund may not borrow through the Interfund Lending Program or from any other source more than 33 1/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board. During the year ended December 31, 2020, none of the Funds participated in the Interfund Lending Program.

Other Matters

The global spread of novel coronavirus disease (COVID-19) was declared a pandemic by the World Health Organization. This pandemic has resulted in significant disruptions to economies and markets, adversely impacting individual companies, sectors, industries, currencies, interest and inflation rates, credit ratings, and investor sentiment. COVID-19 has caused volatility, severe market dislocations and liquidity constraints in many markets, including markets for the securities the Funds hold, and may adversely affect the Funds’ investments and operations. The duration and extent of COVID-19 over the long-term cannot be reasonably estimated at this time. There have been no comparable recent events that provide guidance as to the effect the spread of COVID-19 as a global pandemic may have on the Funds’ financial performance. In addition, COVID-19 and governmental responses to COVID-19 may negatively impact the capabilities of the Funds’ service providers and disrupt the Funds’ operations. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a Fund’s investments. Management continues to monitor and evaluate this situation.

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Diamond Hill Funds
Notes to Financial Statements (Continued)
December 31, 2020

Subsequent Events

The Funds evaluated events from December 31, 2020 through the date that these financial statements were issued. There were no subsequent events to report that would have a material impact on the Funds’ financial statements except for the following:

On February 3, 2021, DHCM announced that it has entered into a definitive agreement to enable Brandywine Global Investment Management, LLC (“Brandywine Global”), a specialist investment manager and subsidiary of Franklin Resources, Inc., to acquire the business of the Corporate Credit and High Yield Funds. The transaction is expected to close in the second quarter of 2021, subject to customary closing conditions, including Board of Trustees and Fund shareholder approval. Portfolio managers John McClain and Bill Zox will join Brandywine Global as part of the transaction.

On February 11, 2021, the Board of Trustees approved the establishment of the Diamond Hill Large Cap Concentrated Fund. The investment objective of the Diamond Hill Large Cap Concentrated Fund is to provide long-term capital appreciation. The Diamond Hill Large Cap Concentrated Fund is co-managed by Charles Bath and Austin Hawley.

On February 19, 2021, Class C shares will be liquidated and cease operations (the “Conversion Date”). Any shareholders who remain invested in Class C shares on the Conversion Date will have their shares automatically converted to Class A shares of the applicable Fund as of the close of business on the Conversion Date. There are no fees charged in connection with the conversion.

Effective February 28, 2021, the Class A shares of each of the Funds will be renamed Investor shares. In addition, the initial sales charge on Investor shares (previously Class A shares) will be eliminated. Investor shares will no longer be subject to an initial sales charge.

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Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of Diamond Hill Funds

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Diamond Hill Funds comprising the funds listed below (the “Funds”) as of December 31, 2020, the related statements of operations, the statements of changes in net assets, the related notes, and the financial highlights for each of the periods indicated below (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of December 31, 2020, the results of their operations, the changes in net assets, and the financial highlights for each of the periods indicated below in conformity with accounting principles generally accepted in the United States of America.

Fund Name

Statements of
Operations

Statements of
Changes in Net
Assets

Financial
Highlights

Diamond Hill Small Cap Fund,

Diamond Hill Small-Mid Cap Fund,

Diamond Hill Mid Cap Fund,

Diamond Hill Large Cap Fund,

Diamond Hill All Cap Select Fund,

Diamond Hill Long-Short Fund,

Diamond Hill Global Fund,

Diamond Hill Short Duration

Securitized Bond Fund,

Diamond Hill Core Bond Fund,

Diamond Hill Corporate Credit Fund,

and Diamond Hill High Yield Fund

For the year ended
December 31, 2020

For the two years ended
December 31, 2020 and 2019

For the three years ended December 31, 2020, 2019, and 2018

Diamond Hill International Fund

For the year ended
December 31, 2020

For the year ended December 31, 2020 and for the period July 1, 2019 (commencement of operations) through December 31, 2019

The Funds’ financial highlights for the years or periods ended December 31, 2017, and prior, were audited by other auditors whose report dated February 16, 2018, expressed an unqualified opinion on those financial highlights.

Basis for Opinion

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 157

Report of Independent Registered Public Accounting Firm (Continued)

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2020, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers or counterparties were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more funds advised by Diamond Hill Capital Management, Inc. since 2015.

COHEN & COMPANY, LTD.

Cleveland, Ohio
February 16, 2021

158 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Funds
Other Items
December 31, 2020 (Unaudited)

Proxy Voting

The investment adviser is responsible for exercising the voting rights associated with the securities purchased and held by the Funds. A description of the policies and procedures that the adviser uses in fulfilling this responsibility and information regarding how those proxies were voted during the twelve-month period ended June 30 are available without charge upon request by calling toll free number 1-888-226-5595, or through the Funds’ website, or on the Securities and Exchange Commission’s (“Commission”) website at www.sec.gov.

Portfolio Disclosure

The Trust files a complete listing of portfolio holdings for each Fund as of the end of the first and third quarters of each fiscal year on Part F to Form N-PORT. The complete listing is available on the Commission’s website. Monthly portfolio holdings are also available on www.diamond-hill.com.

Results of a Special Meeting of Shareholders of the
Diamond Hill Research Opportunities Fund

A Special Meeting of Shareholders of the Diamond Hill Research Opportunities Fund was held on October 20, 2020 for the purpose of voting on the approval of an Agreement and Plan of Reorganization, which provides for the transfer of all or substantially all of the assets of the Diamond Hill Research Opportunities Fund to Diamond Hill Long-Short Fund in exchange for shares of beneficial interest of Diamond Hill Long-Short Fund and the assumption by Diamond Hill Long-Short Fund of all of the liabilities of Diamond Hill Research Opportunities Fund.

The voting results were as follows:

Proposal

For

Against

Abstain

To Approve an Agreement and Plan of Reorganization

1,051,298

259

2,243

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 159

Diamond Hill Funds
Other Items
December 31, 2020 (Unaudited) (Continued)

Dividends Received Deduction

For corporate shareholders, the following percentages of ordinary dividends paid during the year ended December 31, 2020 qualify for the corporate dividends received deduction:

Small Cap Fund	76.93	%
Small-Mid Cap Fund	87.47	%
Mid Cap Fund	100.00	%
Large Cap Fund	100.00	%
All Cap Select Fund	100.00	%
Long-Short Fund	100.00	%
Global Fund	46.33	%
International Fund	0.39	%
Short Duration Fund	0.00	%
Core Bond Fund	0.00	%
Corporate Credit Fund	0.00	%
High Yield Fund	0.00	%

Qualified Dividend Income

The Funds have designated the maximum amount allowable of their taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003. This amount was reflected on form 1099-DIV for the calendar year 2020.

Capital Gain Distribution

For the year ended December 31, 2020, the following Funds designated long-term capital gain distributions:

Small-Mid Cap Fund	$	786,910
Mid Cap Fund		376,407
Large Cap Fund		192,809,037
Long-Short Fund		15,843,708
International Fund		79,270
Corporate Credit Fund		803,265
High Yield Fund		34,875

Trustee Approval of Investment Advisory Agreement

Renewal of Management Agreement for All Funds

The Board of Trustees of Diamond Hill Funds (the “Trust”) requested and the Adviser provided a broad range of information in connection with its consideration of the continuance of the Amended and Restated Investment Management Agreement (“Management Agreement”)

160 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Funds
Other Items
December 31, 2020 (Unaudited) (Continued)

between the Trust and Diamond Hill Capital Management, Inc. (the “Adviser”), for each series of the Trust (each separately, a “Fund”). The Board reviewed the information at regularly scheduled meetings on July 21, 2020, and August 20, 2020, and by unanimous vote approved continuation of the Management Agreement. In concluding to renew the Management Agreement, the Board discussed the following factors, on a Fund-by-Fund basis:

Nature, Extent and Quality of Services. The Trustees considered the nature, extent and quality of the services provided by the Adviser under the Management Agreement, including a review of the services provided thereunder and the Adviser’s overall reputation, integrity and mission to serve its clients through a disciplined intrinsic-value-based approach to investment that aligns the Adviser’s interests with those of its clients. The Trustees noted the qualifications of the investment staff and other key personnel of the Adviser and that the Adviser continues to invest significant resources in human capital to attract and retain top talent. The Trustees also reviewed the Adviser’s succession plan for key investment and management staff. In addition, the Trustees reviewed information related to the compensation structure for portfolio managers and other key investment personnel. Finally, the Trustees noted that the Adviser provides administrative services to the Trust under an Amended and Restated Administrative, Fund Accounting and Transfer Agency Services Agreement (“Administration Agreement”).

Investment Performance of the Funds. In evaluating the performance of each Fund, the Trustees reviewed each Fund’s absolute performance, performance relative to its passive benchmark, performance relative to a custom peer group, and performance relative to the Fund’s Morningstar category, each as of June 30, 2020.

c)	Reasonableness of Investment Advisory Fees. The Trustees noted that the contractual fee rate for each Fund under the Management Agreement was at or below the average and median rates of the applicable Fund’s custom peer group.

Reasonableness of Total Expenses. The Trustees noted that the total expenses for all Class I and Class Y shares were at or below the median total expenses of comparable funds within the applicable Fund’s Morningstar category for all but Class I shares in two Funds (which were 1 to 2 basis points higher). As it relates to Class A and Class C, the total expenses are at or below both the average and median total expenses of comparable funds with the applicable Fund’s Morningstar category for all except Class C shares of the All Cap Select Fund and Class A shares of the Short Duration Securitized Bond Fund (which were 1 to 5 basis points higher).

Reasonableness of Investment Advisory Fees as Compared to Fees Charged to Other Clients. The Trustees reviewed the fees paid by each of the Adviser’s other clients, as well as a summary of the differences in services provided and how these differences affect fees, including the difference between serving as an adviser versus a sub-adviser. With limited exceptions, the Trustees observed that the investment advisory fees charged by the Adviser to the Funds were comparable to the investment advisory fees the Adviser charges its other similarly managed accounts (i.e., separately managed accounts).

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 161

Diamond Hill Funds
Other Items
December 31, 2020 (Unaudited) (Continued)

Profitability. The Trustees considered each Fund’s profitability to the Adviser and the Adviser’s methodology for calculating its profitability. The Trustees observed that the Adviser’s pre-tax profit margin under the Management Agreement represented a fair and entrepreneurial profit for managing the Funds. The Trustees discussed that the Adviser is also the administrator to the Funds and the Trustees reviewed a separate profitability analysis relating to the administrative services provided to the Funds. The Trustees noted that the profit margin under the Administration Agreement represented a fair and entrepreneurial profit for serving as administrator to the Funds.

Economies of Scale. The Trustees reviewed the potential extent to which economies of scale would be realized as each Fund grows and whether fee levels reflect these economies of scale for the benefit of Fund shareholders. They noted that while many advisory firms reduce fees as assets under management increase with predetermined break points, the Adviser has adopted a different strategy. The Trustees considered that rather than instituting break points, the Adviser has targeted its advisory fees to correspond to its mission to add value, meaning that rather than charging a lower fee on assets above a certain level, the Adviser prefers to close a strategy to new investors so that it can efficiently manage the Fund’s assets and attempt to fulfill its responsibility to add value to existing investors. The Trustees noted that one of the Funds currently is closed to most new investors. The Trustees also noted that the Adviser has a history of voluntarily reducing its fees under the Administration Agreement when asset growth allows for the sharing of economies of scale, with the most recent reduction having taken place on February 28, 2018.

Ancillary Benefits. The Trustees considered ancillary benefits received by the Adviser as a result of its relationship with the Funds, including the ability to negotiate favorable commissions rates and have access to research that benefits all of the Adviser’s clients and the ability to serve as sub-adviser to other mutual funds. The Trustees noted that as administrator to the Funds the Adviser is expected to earn fees from the Funds for providing administrative services. The fees were shown separately in the profitability analysis presented to the Trustees. The Trustees also considered revenue and expenses of the Administrator for providing financing arrangements related to the payment of commissions to financial intermediaries for the sale of Class C Shares of the Funds.

In their deliberations, there was a comprehensive consideration of each of the factors above in connection with each Fund, and the Trustees, all of whom qualify as Independent Trustees under the 1940 Act, concluded the compensation to be received by the Adviser from each Fund was fair and reasonable and the continuance of the Management Agreement for all of the Funds was in the best interests of each Fund and its shareholders.

162 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Funds
Schedule of Shareholder Expenses
Hypothetical Example of a $1,000 Investment at Beginning of Period
(Unaudited)

As a Fund shareholder, you may incur two types of costs: (1) transaction costs, including wire redemption fees and sales charges (loads) as applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs or other fees that may apply, such as sales charges and fees for low balance accounts. Therefore, the examples are useful in comparing ongoing costs only and will not help you determine the relative total cost of owning different funds. In addition, if these transactional costs and other fees were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at July 1, 2020 and held for the entire period from July 1, 2020 through December 31, 2020.

The Actual Expense example below provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses paid during the period” to estimate the expenses you paid on your account during this period.

The Hypothetical Expense example below provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in this Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

	Account value at the beginning of the period ($)		Account value at the end of the period ($)		Expenses paid during the period ($)*		Funds annualized expense ratio (%)
	Actual	Hypothetical	Actual	Hypothetical	Actual	Hypothetical	Actual
Small Cap Fund
Class A	1,000.00	1,000.00	1,340.50	1,018.80	7.41	6.39	1.26%
Class C	1,000.00	1,000.00	1,335.00	1,015.03	11.80	10.18	2.01%
Class I	1,000.00	1,000.00	1,341.90	1,020.26	5.71	4.93	0.97%
Class Y	1,000.00	1,000.00	1,242.90	1,020.86	4.79	4.32	0.85%
Small-Mid Cap Fund
Class A	1,000.00	1,000.00	1,308.90	1,019.08	6.99	6.11	1.20%
Class C	1,000.00	1,000.00	1,304.40	1,015.31	11.32	9.90	1.95%
Class I	1,000.00	1,000.00	1,310.20	1,020.54	5.31	4.64	0.91%
Class Y	1,000.00	1,000.00	1,312.00	1,021.14	4.62	4.04	0.79%

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 163

Diamond Hill Funds
Schedule of Shareholder Expenses
Hypothetical Example of a $1,000 Investment at Beginning of Period
(Unaudited) (Continued)

	Account value at the beginning of the period ($)		Account value at the end of the period ($)		Expenses paid during the period ($)*		Funds annualized expense ratio (%)
	Actual	Hypothetical	Actual	Hypothetical	Actual	Hypothetical	Actual
Mid Cap Fund
Class A	1,000.00	1,000.00	1,298.30	1,019.79	6.14	5.40	1.06%
Class I	1,000.00	1,000.00	1,300.10	1,021.25	4.47	3.93	0.77%
Class Y	1,000.00	1,000.00	1,300.30	1,021.85	3.78	3.32	0.65%
Large Cap Fund
Class A	1,000.00	1,000.00	1,259.30	1,020.32	5.44	4.86	0.96%
Class C	1,000.00	1,000.00	1,254.70	1,016.55	9.69	8.66	1.71%
Class I	1,000.00	1,000.00	1,261.10	1,021.77	3.80	3.40	0.67%
Class Y	1,000.00	1,000.00	1,262.20	1,022.37	3.12	2.79	0.55%
All Cap Select Fund
Class A	1,000.00	1,000.00	1,394.80	1,019.31	6.98	5.88	1.16%
Class C	1,000.00	1,000.00	1,389.20	1,015.54	11.46	9.67	1.91%
Class I	1,000.00	1,000.00	1,396.40	1,020.76	5.24	4.42	0.87%
Class Y	1,000.00	1,000.00	1,397.10	1,021.37	4.52	3.81	0.75%
Long-Short Fund
Class A	1,000.00	1,000.00	1,145.20	1,017.93	7.73	7.28	1.43%
Class C	1,000.00	1,000.00	1,140.50	1,014.15	11.76	11.06	2.19%
Class I	1,000.00	1,000.00	1,147.00	1,019.38	6.18	5.81	1.14%
Class Y	1,000.00	1,000.00	1,147.60	1,019.99	5.53	5.20	1.02%
Global Fund
Class A	1,000.00	1,000.00	1,273.30	1,019.46	6.45	5.73	1.13%
Class I	1,000.00	1,000.00	1,275.40	1,020.91	4.81	4.27	0.84%
Class Y	1,000.00	1,000.00	1,276.40	1,021.52	4.12	3.66	0.72%
International Fund
Class A	1,000.00	1,000.00	1,270.00	1,019.36	6.56	5.83	1.15%
Class I	1,000.00	1,000.00	1,271.70	1,020.82	4.91	4.37	0.86%
Class Y	1,000.00	1,000.00	1,271.50	1,021.42	4.22	3.76	0.74%
Short Duration Fund
Class A	1,000.00	1,000.00	1,058.60	1,021.06	4.19	4.12	0.81%
Class I	1,000.00	1,000.00	1,060.30	1,022.52	2.69	2.64	0.52%
Class Y	1,000.00	1,000.00	1,060.80	1,023.13	2.07	2.03	0.40%
Core Bond Fund
Class A	1,000.00	1,000.00	1,013.70	1,021.32	3.85	3.86	0.76%
Class I	1,000.00	1,000.00	1,015.40	1,022.78	2.38	2.39	0.47%
Class Y	1,000.00	1,000.00	1,015.80	1,023.38	1.77	1.78	0.35%
Corporate Credit Fund
Class A	1,000.00	1,000.00	1,107.80	1,020.56	4.83	4.63	0.91%
Class C	1,000.00	1,000.00	1,104.20	1,016.78	8.79	8.42	1.66%
Class I	1,000.00	1,000.00	1,109.80	1,022.01	3.29	3.16	0.62%
Class Y	1,000.00	1,000.00	1,109.70	1,022.62	2.66	2.55	0.50%

164 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Funds
Schedule of Shareholder Expenses
Hypothetical Example of a $1,000 Investment at Beginning of Period
(Unaudited) (Continued)

	Account value at the beginning of the period ($)		Account value at the end of the period ($)		Expenses paid during the period ($)*		Funds annualized expense ratio (%)
	Actual	Hypothetical	Actual	Hypothetical	Actual	Hypothetical	Actual
High Yield Fund
Class A	1,000.00	1,000.00	1,127.10	1,020.30	5.15	4.89	0.96%
Class I	1,000.00	1,000.00	1,127.70	1,021.75	3.60	3.42	0.67%
Class Y	1,000.00	1,000.00	1,130.20	1,022.35	2.96	2.81	0.55%

*	Expenses are equal to the Fund’s annualized net expense ratio, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one-half year period).

You can find more information about the Fund’s expenses, including annual expense ratios for historical periods in the Financial Highlights section of this report. For additional information on operating expenses and other shareholder costs, please refer to the Fund’s prospectus. The prospectus presents hypothetical shareholder costs over various time periods based upon a $10,000 investment and a return of 5% a year. The standardized example, which appears in all mutual fund prospectuses, may be useful to you in comparing the costs of investing in different funds.

DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM 165

Diamond Hill Funds
Management of the Trust
(Unaudited)

Listed in the charts below is basic information regarding the Trustees and Officers of the Trust.

INDEPENDENT TRUSTEES:

Name/Address/¹ Age	Position(s) Held with Trust	Term of Office² and Length of Time Served	Principal Occupation(s) At Least The Last 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee	Other Directorships Held by Trustee
Tamara L. Fagely Year of Birth: 1958	Trustee	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	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
John T. Kelly-Jones 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	None
D’Ray Moore Year of Birth: 1959	Chairperson Trustee	Since February 2014 Since August 2007	Retired, Community Volunteer, November 2001 to present.	13	Advisors Investment Trust, July 2011 to present
Nancy M. Morris 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.	13	The Arbitrage Funds, December 2018 to present, AltShares Trust January 2020 to present

166 DIAMOND HILL FUNDS | ANNUAL REPORT | DECEMBER 31, 2020 | DIAMOND-HILL.COM

Diamond Hill Funds
Management of the Trust
(Unaudited) (Continued)

PRINCIPAL OFFICERS:

Name/Address/¹ Age	Position(s) Held with Trust	Term of Office and Length of Time Served²	Principal Occupation(s) At Least The Last 5 Years
Thomas E. Line 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 Year of Birth: 1966	Vice President Secretary	Since November 2011 Since November 2014	Director-Fund Administration & Sales Support, Diamond Hill Capital Management, Inc., June 2009 to present.
Gary R. Young Year of Birth: 1969	Chief Compliance Officer	Since May 2020	President of the Trust, November 2014 to May 2020; Secretary of the Trust, May 2004 to November 2014; Chief Administrative Officer of the Trust, October 2010 to November 2014; Chief Risk Officer of Diamond Hill Capital Management, Inc. May 2020 to present; Chief Compliance Officer of Diamond Hill Capital Management Inc., October 2010 to present; Controller of Diamond Hill Investment Group, Inc., April 2004 to March 2015.
Julie A. Roach Year of Birth: 1971	Treasurer	Since October 2017	Director-Fund Administration, Diamond Hill Capital Management, Inc., September 2017 to present; Assistant Treasurer - Head of Valuation Oversight, J.P. Morgan Asset Management, August 2012 to 2017.

¹	The address of each Trustee and Officer is 325 John H. McConnell Boulevard — Suite 200, Columbus, Ohio 43215.

Each Trustee is elected to serve in accordance with the Declaration of Trust 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 1-year term to serve the Trust or until their resignation, removal or retirement.

The Statement of Additional Information contains additional information about the Trustees and is available without charge on www.diamond-hill.com or by calling 1-888-226-5595.

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INVESTMENT ADVISER: DIAMOND HILL CAPITAL MANAGEMENT, INC.

DISTRIBUTOR: FORESIDE FINANCIAL SERVICES, LLC (MEMBER FINRA)

DH-AR123120

Item 2. Code of Ethics.

The registrant has adopted a code of ethics that applies to the registrant's principal executive officer and principal financial officer. The registrant has not made any amendments to its code of ethics during the period covered by this report. The registrant has not granted any waivers from any provisions of the code of ethics during the period covered by this report. A copy of the registrant’s Code of Ethics is filed herewith.

Item 3. Audit Committee Financial Expert.

3(a)(1) The registrant’s board of directors has determined that the registrant has at least one audit committee financial expert serving on its audit committee.

3(a)(2) The audit committee financial expert is Ms. Tamara L. Fagely, who is “independent” for purposes of this Item 3 of Form N-CSR.

Item 4. Principal Accountant Fees and Services.

(a) Audit Fees. Audit fees totaled $180,500 and $201,000 in fiscal 2020 and 2019, respectively. 2020 and 2019 fees include fees associated with the annual audit and filings of the registrant’s Form N-1A and Form N-CEN.

(b) Audit-Related Fees. There were no audit-related fees in fiscal 2020 and 2019.

(d) All Other Fees. All other fees totaled $0 and $8,494 in fiscal 2020 and 2019, respectively.

(e)(1) Audit Committee Pre-Approval Policies. The Audit Committee’s pre-approval policies describe the types of audit, audit-related, tax and other services that may receive the general pre-approval of the Audit Committee. The pre-approval policies provide that annual audit service fees, tax services not specifically granted pre-approval, services exceeding pre-approved cost levels and other services that have not received general pre-approval will be subject to specific pre-approval by the Audit Committee. The pre-approval policies further provide that the Committee may grant general pre-approval to other audit services (statutory audits and services associated with SEC registration statements, periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings), audit-related services (accounting consultations related to accounting, financial reporting or disclosure matters not classified as “audit services,” assistance with understanding and implementing new accounting and financial reporting guidance from rulemaking authorities, agreed-upon or expanded audit procedures related to accounting and/or billing records required to respond to or comply with financial, accounting or regulatory reporting matters and assistance with internal control reporting requirements under Form N-CEN and Form N-CSR), tax services that have historically been provided by the auditor that the Committee believes would not impair the independence of the auditor and are consistent with the SEC’s rules on auditor independence and permissible non-audit services classified as “all other services” that are routine and recurring services.

(e)(2) All of the services described in paragraphs (b) through (d) of Item 4 were approved by the Audit Committee.

(f) During the audit of registrant’s financial statements for the most recent fiscal year, less than 50 percent of the hours expended on the principal accountant’s engagement were attributed to work performed by persons other than the principal accountant’s full-time, permanent employee.

(g) The aggregate non-audit fees for services to the registrant, its investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant were $0 and $37,000 in 2020 and 2019, respectively.

(h) The registrant's audit committee of the board of trustees has considered whether the provision of non-audit services that were rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Schedule of Investments.

(a) The Schedule of Investments is included in the Annual Report to Shareholders filed under Item 1 of this Form.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

Not applicable.

Item 11. Controls and Procedures.

(a)The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.

(b)There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that have materially affected or are reasonably likely to materially affected, the registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.

Item 13. Exhibits.

(a)(1)

Code of Ethics for Senior Financial Officers is filed herewith.

(a)(2)

A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)): Attached hereto

(a)(3)

Not applicable.

(a)(4)

Change in the registrant’s independent public accountants: Not applicable

(b)

Certification required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)): Attached hereto

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant	Diamond Hill Funds

By (Signature and Title)	/s/ Thomas E. Line
	Thomas E. Line, Chief Executive Officer

Date:	February 22, 2021

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)	/s/ Thomas E. Line
	Thomas E. Line, Chief Executive Officer

Date:	February 22, 2021

By (Signature and Title)	/s/ Julie A. Roach
	Julie A. Roach, Principal Financial Officer

Date:	February 22, 2021

Diamond Hill Large Cap Fund Class Y (DHLYX) N-CSRCertified annual shareholder report (management investment company)