Diamond Hill Small-Mid Cap Fund (DHMYX) N-CSRS Certified semi-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: 811-8061

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: June 30, 2017

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.

Semi-Annual Report

June 30, 2017

Small Cap Fund	Research Opportunities Fund
Small-Mid Cap Fund	Financial Long-Short Fund
Mid Cap Fund	Short Duration Total Return Fund
Large Cap Fund	Core Bond Fund
All Cap Select Fund	Corporate Credit Fund
Long-Short Fund	High Yield Fund

This material must be preceded or accompanied by a current prospectus.
Not FDIC Insured. May Lose Value. No Bank Guarantee.

Table of Contents

Letter to Shareholders	1
Financial Statements
Schedules of Investments	3
Statements of Assets & Liabilities	52
Statements of Operations	55
Statements of Changes in Net Assets	58
Financial Highlights	70
Notes to Financial Statements	94

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 BHIL Distributors, 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.

Letter to Shareholders

Dear Fellow Shareholder:

We are pleased to provide this 2017 mid-year update for the Diamond Hill Funds. At Diamond Hill we believe in true active management – managing high-conviction, concentrated portfolios constructed independent of benchmark weights. We have intentionally structured our firm to maximize the potential to generate returns for our clients in excess of a passive alternative. Our long-term investment horizon also allows us to focus on company fundamentals rather than short-term market noise.

2017 Year-to-Date Market Review

The U.S. equity market rally that began following the 2016 presidential election continued through the first half of 2017, with the S&P 500 posting its best first-half performance since 2013 thanks to steady economic growth and improved corporate earnings.

For domestic stocks, the year has been characterized by low volatility and high valuations. The Volatility Index (which measures implied volatility of S&P 500 index options) fell to historically low levels during the second quarter, telling the tale of a surprisingly tranquil market.

Historically high valuations continue to make it challenging for us to find attractive new opportunities for our portfolios, particularly at the smaller end of the market cap spectrum. Valuations continue to be supported by the low interest rate environment.

The Federal Reserve raised the federal funds target rate in March and again in June, with the market expecting a third increase later this year, indicating an increasing level of confidence in the recovery of U.S. labor markets and an expectation of slowly rising inflation.

Sector Results

Growth stocks have significantly outperformed value stocks in 2017, as information technology (+17.03%) and health care (+16.53%) were the best-performing sectors in the Russell 1000 Index year to date. Energy (-13.31%) and telecommunication services (-10.29%) were the worst performers and the only sectors in the Russell 1000 to post a negative year-to-date return.

In the fixed income market, the Treasury yield curve has flattened in 2017 as the Fed pushes the shorter end of the curve higher by increasing its target rate and the longer end continues to decrease. In the securitized market, continued demand drove spreads tighter across the sector and was met with heavy new issuance. Asset-backed securities and commercial mortgage-backed securities have been the strongest year-to-date performers within the securitized market. Finally, investment grade credit has bounced back from its decline late last year. For the first half of 2017, the theme across the entire credit quality spectrum was investors’ appetite for yield, with the strongest performance coming from the lowest-rated segment (BBB) in both the investment grade and below investment grade credit markets.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 1

Letter to Shareholders

Market Outlook

Although the U.S. economy appears set to continue its moderate growth, we continue to expect positive but below-average equity market returns over the next five years. Our conclusion is primarily based on the combination of above-average price/earnings (P/E) multiples applied to already strong levels of corporate profit margins, which likely tempers prospective returns.

Spread levels in both the investment grade and high yield credit markets remain compressed as investors continue their search for yield. As such, we believe strong fundamental analysis and a focus on long-term company performance is the key to security selection in our fixed income strategies.

We believe we can achieve better-than-market returns over the next five years through active portfolio management. Our primary focus is always on achieving value-added results for our existing clients and we continue to fall back on valuations, which we believe are a key determinant of long-term returns. Our investment philosophy and process continue to be focused on individual company and security analysis. Our intrinsic value investment philosophy is shared by all of our portfolio managers and research analysts, allowing us to apply our investment discipline consistently across strategies.

Thank you for your continued support.

Diamond Hill Capital Management, Inc.

Chris Welch, CFA Co-Chief Investment Officer	Austin Hawley, CFA Co-Chief Investment Officer	Bill Zox, CFA Chief Investment Officer – Fixed Income

The views expressed are those of the portfolio manager as of June 30, 2017, are subject to change, and may differ from the views of other portfolio managers or the firm as a whole. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. All data referenced are from sources deemed to be reliable but cannot be guaranteed. Securities and sectors referenced should not be construed as a solicitation or recommendation or be used as the sole basis for any investment decision.

The Standard & Poors 500 Index is an unmanaged index of 500 stocks, generally representative of the U.S. stock market as a whole. The Russell 1000 Index is an unmanaged market capitalization-weighted index comprised of the largest 1,000 companies by market capitalization in the Russell 3000 Index. These indexes do not incur fees and expenses (which would lower the return) and are not available for direct investment.

2 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Small Cap Fund
Schedule of Investments
June 30, 2017 (Unaudited)

	Shares		Fair Value
Common Stocks — 86.6%
Consumer Discretionary — 12.4%
Aaron's, Inc.		772,000	$	30,030,800
Callaway Golf Co.		337,528		4,313,608
Carter's, Inc. (a)		126,105		11,217,040
Horizon Global Corp. (a)(b)		156,735		2,250,715
Live Nation Entertainment, Inc. (b)		1,352,315		47,128,178
Red Rock Resorts, Inc., Class A		1,017,375		23,959,181
Tenneco, Inc.		515,180		29,792,859
Vail Resorts, Inc.		256,835		52,093,843
				200,786,224
Consumer Staples — 4.9%
B&G Foods, Inc. (a)		691,765		24,626,834
Edgewell Personal Care Co. (a)(b)		188,110		14,300,122
Flowers Foods, Inc. (a)		999,604		17,303,145
Post Holdings, Inc. (b)		287,210		22,301,857
				78,531,958
Energy — 2.3%
Carrizo Oil & Gas, Inc. (a)(b)		141,561		2,465,993
Cimarex Energy Co.		322,910		30,356,769
Noble Energy, Inc.		146,747		4,152,940
				36,975,702
Financials — 23.1%
Alleghany Corp. (b)		20,522		12,206,486
American Equity Investment Life Holding Co.		305,775		8,035,767
Assured Guaranty Ltd.		98,447		4,109,178
BankUnited, Inc.		1,004,835		33,872,988
BOK Financial Corp.		177,450		14,928,869
Brown & Brown, Inc.		818,590		35,256,671
Enstar Group Ltd. (b)		202,414		40,209,541
First Horizon National Corp. (a)		789,765		13,757,706
First of Long Island Corp. (The)		372,140		10,643,204
Fortress Investment Group LLC, Class A		3,165,570		25,292,904
Nationstar Mortgage Holdings, Inc. (b)		1,449,860		25,937,995
Navigators Group, Inc. (The)		838,996		46,060,880
Popular, Inc.		767,358		32,006,502
ProAssurance Corp.		334,065		20,311,152
Reinsurance Group of America, Inc.		93,385		11,989,700
State Bank Financial Corp.		370,985		10,061,113
Sterling Bancorp		625,635		14,546,014
Validus Holdings Ltd.		249,475		12,965,216
				372,191,886
Health Care — 6.6%
Alere, Inc. (b)		888,915		44,614,644
BioScrip, Inc. (a)(b)		3,606,909		9,792,758
Integer Holdings Corp. (b)		288,265		12,467,461
LifePoint Health, Inc. (b)		302,360		20,303,474
Natus Medical, Inc. (b)		525,955		19,618,122
				106,796,459
Industrials — 18.2%
Aircastle Ltd.		1,474,700		32,074,725
Alaska Air Group, Inc.		258,540		23,206,550
Avis Budget Group, Inc. (a)(b)		2,939,075		80,148,575
Colfax Corp. (b)		316,320		12,453,518
Hillenbrand, Inc.		168,730		6,091,153
Hub Group, Inc., Class A (b)		775,955		29,757,874
Hyster-Yale Materials Handling, Inc. (a)		194,620		13,672,055
Kirby Corp. (b)		213,230		14,254,426
SPX FLOW, Inc. (b)		498,775		18,394,822
Toro Co. (The)		216,510		15,001,978
TriMas Corp. (b)		413,950		8,630,858
Trinity Industries, Inc.		1,404,625		39,371,639
				293,058,173
Information Technology — 8.6%
Anixter International, Inc. (b)		75,380		5,894,716
Broadridge Financial Solutions, Inc.		304,480		23,006,509
CommScope Holding Co., Inc. (b)		760,280		28,913,448
DST Systems, Inc.		827,280		51,043,176
Fortinet, Inc. (b)		327,723		12,269,949
TiVo Corp.		449,240		8,378,326
WNS Holdings Ltd. - ADR (b)		263,870		9,066,573
				138,572,697

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 3

Diamond Hill Small Cap Fund
Schedule of Investments (Continued)
June 30, 2017 (Unaudited)

	Shares		Fair Value
Common Stocks — 86.6% continued
Real Estate — 7.6%
Colony NorthStar, Inc. REIT, Class A		1,154,871	$	16,272,132
CubeSmart REIT		510,635		12,275,665
iStar, Inc. REIT (a)(b)		3,274,800		39,428,592
Jones Lang LaSalle, Inc.		90,971		11,371,375
Mid-America Apartment Communities, Inc. REIT		130,274		13,728,274
Tanger Factory Outlet Centers, Inc. REIT		460,705		11,969,116
Winthrop Realty Trust REIT (a)(b)(c)		1,975,475		17,127,368
				122,172,522
Telecommunication Services — 0.7%
Cincinnati Bell, Inc. (a)(b)		584,134		11,419,820
Utilities — 2.2%
Fortis, Inc. (a)		259,550		9,123,182
UGI Corp.		563,100		27,259,671
				36,382,853
Total Common Stocks			$	1,396,888,294
Registered Investment Companies — 23.2%
Diamond Hill Short Duration Total Return Fund, Class Y(d)		6,301,745		63,773,657
State Street Institutional Liquid Reserves Fund, Premier Class, 1.10%(e)		156,410,249		156,425,890
State Street Navigator Securities Lending Prime Portfolio, 1.18%(e)		154,812,326		154,812,326
Total Registered Investment Companies			$	375,011,873
Total Investment Securities — 109.8%
(Cost $1,345,889,546)(f)			$	1,771,900,167
Net Other Assets (Liabilities) — (9.8)%				(158,601,752	)
Net Assets — 100.0%			$	1,613,298,415

^(a) All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2017 was $154,197,069

^(b) Non-income producing security.

^(c) Restricted and illiquid security not registered under the Securities Act of 1933 and valued at fair value by the Fair Value Committee based on procedures approved by the Board of Trustees. This security was first acquired on March 17, 2011 with a total cost on June 30, 2017 of $20,011,748 and represents 1.1% of net assets.

^(d) Affiliated Fund.

^(e) Variable rate security. The rate shown is the effective interest rate as of June 30, 2017.

^(f) Represents cost for financial reporting purposes.

ADR – American Depositary Receipt.

REIT – Real Estate Investment Trust

See accompanying Notes to Financial Statements

4 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Small-Mid Cap Fund
Schedule of Investments
June 30, 2017 (Unaudited)

	Shares		Fair Value
Common Stocks — 90.4%
Consumer Discretionary — 18.2%
Aaron's, Inc.		1,442,374	$	56,108,349
BorgWarner, Inc. (a)		1,454,334		61,605,588
Goodyear Tire & Rubber Co. (The)		784,097		27,412,031
Hanesbrands, Inc. (a)		1,526,344		35,350,127
Newell Brands, Inc.		784,317		42,055,078
NVR, Inc. (b)		23,760		57,276,094
Red Rock Resorts, Inc., Class A (a)		1,984,092		46,725,367
Staples, Inc.		3,640,279		36,657,609
TEGNA, Inc.		2,664,019		38,388,514
Whirlpool Corp.		216,825		41,548,006
				443,126,763
Consumer Staples — 9.5%
B&G Foods, Inc. (a)		1,112,015		39,587,734
Coty, Inc., Class A		1,211,589		22,729,410
Edgewell Personal Care Co. (b)		372,736		28,335,391
Flowers Foods, Inc. (a)		1,919,070		33,219,102
Molson Coors Brewing Co., Class B		400,178		34,551,368
Post Holdings, Inc. (b)		654,903		50,853,218
TreeHouse Foods, Inc. (a)(b)		269,975		22,054,258
				231,330,481
Energy — 2.5%
Cimarex Energy Co.		642,826		60,432,072
Financials — 24.2%
BankUnited, Inc.		2,203,228		74,270,816
BOK Financial Corp.		542,429		45,634,552
Brown & Brown, Inc.		766,305		33,004,756
Enstar Group Ltd. (b)		78,920		15,677,458
First Horizon National Corp. (a)		1,799,541		31,348,004
First Republic Bank		423,550		42,397,355
Nationstar Mortgage Holdings, Inc. (b)		2,589,619		46,328,284
Navigators Group, Inc. (The)		437,474		24,017,323
Popular, Inc.		776,958		32,406,918
Reinsurance Group of America, Inc.		255,753		32,836,128
SVB Financial Group (b)		157,643		27,712,063
Validus Holdings Ltd.		944,085		49,064,097
Willis Towers Watson plc		641,235		93,274,043
XL Group Ltd. (a)		982,047		43,013,659
				590,985,456
Health Care — 6.2%
Boston Scientific Corp. (b)		2,065,208		57,247,566
LifePoint Health, Inc. (a)(b)		910,939		61,169,554
Orthofix International NV (b)		711,476		33,069,404
				151,486,524
Industrials — 9.7%
Aircastle Ltd.		742,035		16,139,261
Avis Budget Group, Inc. (a)(b)		963,394		26,271,754
Colfax Corp. (b)		919,496		36,200,557
Dover Corp.		223,436		17,924,036
Hub Group, Inc., Class A (b)		1,364,577		52,331,528
Kirby Corp. (a)(b)		728,909		48,727,567
Parker-Hannifin Corp.		97,920		15,649,574
SPX FLOW, Inc. (b)		621,051		22,904,361
				236,148,638
Information Technology — 8.0%
Avnet, Inc.		330,180		12,837,398
Broadridge Financial Solutions, Inc.		165,670		12,518,025
CommScope Holding Co., Inc. (b)		1,264,813		48,100,838
Juniper Networks, Inc.		1,728,053		48,178,118
Keysight Technologies, Inc. (b)		660,915		25,729,421
Vantiv, Inc., Class A (b)		740,525		46,904,853
				194,268,653
Materials — 2.8%
Axalta Coating Systems Ltd. (b)		2,140,629		68,585,753
Real Estate — 6.7%
Colony NorthStar, Inc. REIT, Class A		1,493,131		21,038,216
CubeSmart REIT		2,048,715		49,251,109
iStar, Inc. REIT (a)(b)		2,125,926		25,596,149
Jones Lang LaSalle, Inc.		300,910		37,613,750
Mid-America Apartment Communities, Inc. REIT		279,799		29,485,219
				162,984,443

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 5

Diamond Hill Small-Mid Cap Fund
Schedule of Investments (Continued)
June 30, 2017 (Unaudited)

	Shares		Fair Value
Common Stocks — 90.4% continued
Utilities — 2.6%
Fortis, Inc. (a)		366,412	$	12,879,382
UGI Corp.		1,059,659		51,298,092
				64,177,474
Total Common Stocks			$	2,203,526,257
Registered Investment Companies — 17.0%
Diamond Hill Short Duration Total Return Fund, Class Y(c)		4,093,982		41,431,095
State Street Institutional Liquid Reserves Fund, Premier Class, 1.10%(d)		148,551,892		148,566,747
State Street Institutional US Government Money Market Fund, Premier Class, 0.88%(d)		42,428,074		42,428,074
State Street Navigator Securities Lending Prime Portfolio, 1.18%(d)		181,718,896		181,718,896
Total Registered Investment Companies			$	414,144,812
Total Investment Securities — 107.4%
(Cost $2,246,929,280)(e)			$	2,617,671,069
Net Other Assets (Liabilities) — (7.4)%				(179,858,979	)
Net Assets — 100.0%			$	2,437,812,090

^(a) All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2017 was $179,463,153.

^(b) Non-income producing security.

^(c) Affiliated fund.

^(d) Variable rate security. The rate shown is the effective interest rate as of June 30, 2017.

^(e) Represents cost for financial reporting purposes.

plc – Public Limited Company

REIT – Real Estate Investment Trust

See accompanying Notes to Financial Statements

Diamond Hill Mid Cap Fund
Schedule of Investments
June 30, 2017 (Unaudited)

	Shares		Fair Value
Common Stocks — 89.7%
Consumer Discretionary — 19.1%
Aaron's, Inc.		30,856	$	1,200,298
BorgWarner, Inc. (a)		68,713		2,910,683
Dollar General Corp.		21,620		1,558,586
Goodyear Tire & Rubber Co. (The)		31,863		1,113,930
Hanesbrands, Inc. (a)		56,923		1,318,337
Newell Brands, Inc.		26,674		1,430,260
NVR, Inc. (b)		951		2,292,490
Red Rock Resorts, Inc., Class A (a)		87,481		2,060,177
Staples, Inc.		121,301		1,221,501
TEGNA, Inc.		55,798		804,049
VF Corp. (a)		30,579		1,761,350
Whirlpool Corp.		15,467		2,963,786
				20,635,447
Consumer Staples — 9.1%
B&G Foods, Inc. (a)		29,179		1,038,772
Coty, Inc., Class A		53,638		1,006,249
Edgewell Personal Care Co. (b)		15,152		1,151,855
Flowers Foods, Inc. (a)		69,004		1,194,459
Molson Coors Brewing Co., Class B		24,503		2,115,589
Post Holdings, Inc. (b)		32,104		2,492,876
TreeHouse Foods, Inc. (a)(b)		10,599		865,832
				9,865,632
Energy — 2.6%
Cimarex Energy Co.		29,211		2,746,126
Financials — 27.1%
BankUnited, Inc.		101,607		3,425,172
BOK Financial Corp.		14,878		1,251,686
Brown & Brown, Inc.		13,231		569,859
Discover Financial Services		33,943		2,110,915
Enstar Group Ltd. (b)		3,915		777,715
First Horizon National Corp. (a)		36,649		638,426
First Republic Bank		11,256		1,126,726
Franklin Resources, Inc.		34,510		1,545,703
Hartford Financial Services Group, Inc. (The)		27,578		1,449,775
Loews Corp.		97,535		4,565,613
Nationstar Mortgage Holdings, Inc. (b)		87,791		1,570,581

6 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Mid Cap Fund
Schedule of Investments (Continued)
June 30, 2017 (Unaudited)

	Shares		Fair Value
Common Stocks — 89.7% continued
Financials — 27.1% continued
Popular, Inc.		26,242	$	1,094,554
Reinsurance Group of America, Inc.		6,563		842,624
SVB Financial Group (b)		6,747		1,186,055
Validus Holdings Ltd.		33,647		1,748,635
Willis Towers Watson plc		24,109		3,506,895
XL Group Ltd. (a)		40,802		1,787,128
				29,198,062
Health Care — 5.4%
Boston Scientific Corp. (b)		102,402		2,838,583
LifePoint Health, Inc. (b)		43,625		2,929,419
				5,768,002
Industrials — 10.0%
Avis Budget Group, Inc. (a)(b)		40,744		1,111,089
Colfax Corp. (b)		25,103		988,305
Deere & Co.		10,358		1,280,145
Fastenal Co. (a)		25,826		1,124,206
Hub Group, Inc., Class A (b)		34,219		1,312,299
Kirby Corp. (a)(b)		28,067		1,876,279
Parker-Hannifin Corp.		5,328		851,521
United Continental Holdings, Inc. (b)		23,174		1,743,843
Verisk Analytics, Inc. (b)		6,400		539,968
				10,827,655
Information Technology — 6.8%
Avnet, Inc.		15,540		604,195
CommScope Holding Co., Inc. (b)		54,254		2,063,280
Juniper Networks, Inc.		69,799		1,945,996
Keysight Technologies, Inc. (b)		23,776		925,600
Vantiv, Inc., Class A (b)		28,867		1,828,436
				7,367,507
Materials — 3.5%
Axalta Coating Systems Ltd. (b)		100,166		3,209,319
Eastman Chemical Co.		6,726		564,917
				3,774,236
Real Estate — 4.4%
CubeSmart REIT		79,534		1,911,997
Jones Lang LaSalle, Inc.		13,745		1,718,125
Mid-America Apartment Communities, Inc. REIT		10,663		1,123,667
				4,753,789
Utilities — 1.7%
UGI Corp.		38,478		1,862,720
Total Common Stocks			$	96,799,176
Registered Investment Companies — 23.2%
Diamond Hill Short Duration Total Return Fund, Class Y(c)		81,567		825,457
State Street Institutional Liquid Reserves Fund, Premier Class, 1.10%(d)		8,130,708		8,131,521
State Street Institutional US Government Money Market Fund, Premier Class, 0.88%(d)		827,498		827,498
State Street Navigator Securities Lending Prime Portfolio, 1.18%(d)		15,206,032		15,206,032
Total Registered Investment Companies			$	24,990,508
Total Investment Securities — 112.9%
(Cost $113,731,283)(e)			$	121,789,684
Net Other Assets (Liabilities) — (12.9)%				(13,893,692	)
Net Assets — 100.0%			$	107,895,992

^(a) All or portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2017 was $15,027,800.

^(b) Non-income producing security.

^(c) Affiliated fund.

^(d) Variable rate security. The rate shown is the effective interest rate as of June 30, 2017.

^(e) Represents cost for financial reporting purposes.

plc – Public Limited Company

REIT – Real Estate Investment Trust

See accompanying Notes to Financial Statements

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 7

Diamond Hill Large Cap Fund
Schedule of Investments
June 30, 2017 (Unaudited)

	Shares		Fair Value
Common Stocks — 98.1%
Consumer Discretionary — 19.4%
BorgWarner, Inc.		2,079,580	$	88,091,009
Charter Communications, Inc., Class A (a)(b)		260,065		87,602,895
Comcast Corp., Class A		2,497,362		97,197,329
Ford Motor Co. (a)		7,899,485		88,395,237
Goodyear Tire & Rubber Co. (The)		2,099,870		73,411,455
Hanesbrands, Inc.		2,495,133		57,787,280
TEGNA, Inc.		2,610,685		37,619,971
TJX Cos., Inc. (The)		1,611,455		116,298,707
Twenty-First Century Fox, Inc., Class B		1,856,575		51,742,745
VF Corp. (a)		1,360,980		78,392,448
Walt Disney Co. (The)		954,209		101,384,706
Whirlpool Corp.		491,597		94,199,817
				972,123,599
Consumer Staples — 10.7%
Coty, Inc., Class A (a)		2,635,549		49,442,899
Kimberly-Clark Corp.		849,744		109,710,448
Molson Coors Brewing Co., Class B		723,002		62,423,993
PepsiCo, Inc.		890,787		102,876,991
Philip Morris International, Inc. (a)		744,014		87,384,444
Procter & Gamble Co. (The)		1,448,180		126,208,887
				538,047,662
Energy — 1.8%
Cimarex Energy Co.		969,105		91,105,561
Financials — 28.0%
Berkshire Hathaway, Inc., Class B (b)		366,762		62,118,480
Capital One Financial Corp.		1,174,812		97,062,967
Citigroup, Inc.		3,192,571		213,519,148
Discover Financial Services		1,030,704		64,099,482
First Republic Bank (a)		498,491		49,898,949
Franklin Resources, Inc.		1,348,695		60,408,049
Hartford Financial Services Group, Inc. (The)		2,405,208		126,441,785
JPMorgan Chase & Co.		1,947,118		177,966,585
Loews Corp.		1,435,350		67,188,733
Marsh & McLennan Cos., Inc.		1,499,605		116,909,206
MetLife, Inc.		2,130,332		117,040,440
Morgan Stanley		3,317,844		147,843,129
PNC Financial Services Group, Inc. (The)		816,519		101,958,728
				1,402,455,681
Health Care — 13.6%
Abbott Laboratories		4,103,965		199,493,739
Aetna, Inc.		817,930		124,186,312
Medtronic plc		981,102		87,072,802
Pfizer, Inc.		4,393,227		147,568,495
Stryker Corp.		391,436		54,323,488
Thermo Fisher Scientific, Inc.		397,338		69,323,561
				681,968,397
Industrials — 8.4%
Honeywell International, Inc.		462,388		61,631,697
Illinois Tool Works, Inc.		505,395		72,397,834
Parker-Hannifin Corp.		620,207		99,121,483
United Technologies Corp.		1,325,871		161,902,108
Verisk Analytics, Inc. (b)		296,111		24,982,885
				420,036,007
Information Technology — 12.5%
Alphabet, Inc., Class A (b)		153,509		142,714,247
Apple, Inc.		804,467		115,859,337
Cisco Systems, Inc.		1,485,696		46,502,285
Juniper Networks, Inc.		3,471,213		96,777,418
Microsoft Corp.		2,122,063		146,273,803
Vantiv, Inc., Class A (b)		1,250,510		79,207,303
				627,334,393
Materials — 3.7%
Axalta Coating Systems Ltd. (b)		1,985,745		63,623,270
Eastman Chemical Co.		595,339		50,002,523
Praxair, Inc. (a)		557,327		73,873,694
				187,499,487
Total Common Stocks			$	4,920,570,787

8 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Large Cap Fund
Schedule of Investments (Continued)
June 30, 2017 (Unaudited)

	Shares		Fair Value
Registered Investment Companies — 4.3%
State Street Institutional Liquid Reserves Fund, Premier Class, 1.10%(c)		89,602,877	$	89,611,837
State Street Navigator Securities Lending Prime Portfolio, 1.18%(c)		126,248,972		126,248,972
Total Registered Investment Companies			$	215,860,809
Total Investment Securities — 102.4%
(Cost $3,965,848,956)(d)			$	5,136,431,596
Net Other Assets (Liabilities) — (2.4)%				(121,787,539	)
Net Assets — 100.0%			$	5,014,644,057

^(a) All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2017 was $123,313,935.

^(b) Non-income producing security.

^(c) Variable rate security. The rate shown is the effective interest rate as of June 30, 2017.

^(d) Represents cost for financial reporting purposes.

plc – Public Limited Company

See accompanying Notes to Financial Statements

Diamond Hill All Cap Select Fund
Schedule of Investments
June 30, 2017 (Unaudited)

	Shares		Fair Value
Common Stocks — 94.6%
Consumer Discretionary — 26.8%
BorgWarner, Inc. (a)		103,996	$	4,405,271
Dollar General Corp.		49,127		3,541,565
Ford Motor Co.		319,408		3,574,176
Liberty Global plc, Class A (b)		144,869		4,653,192
NVR, Inc. (b)		1,633		3,936,526
Red Rock Resorts, Inc., Class A		92,280		2,173,194
TJX Cos., Inc. (The)		36,464		2,631,607
Twenty-First Century Fox, Inc., Class B		254,201		7,084,582
Vail Resorts, Inc.		17,281		3,505,105
Whirlpool Corp.		16,514		3,164,413
				38,669,631
Consumer Staples — 6.2%
Molson Coors Brewing Co., Class B		42,633		3,680,933
PepsiCo, Inc.		31,190		3,602,133
Post Holdings, Inc. (b)		20,554		1,596,018
				8,879,084
Energy — 1.0%
Cimarex Energy Co.		15,293		1,437,695
Financials — 26.8%
BankUnited, Inc.		147,243		4,963,562
Berkshire Hathaway, Inc., Class B (b)		39,695		6,723,142
Citigroup, Inc.		62,446		4,176,388
Discover Financial Services		88,736		5,518,492
Loews Corp.		98,065		4,590,423
MetLife, Inc.		100,564		5,524,986
Nationstar Mortgage Holdings, Inc. (b)		244,746		4,378,506
Validus Holdings Ltd.		54,365		2,825,349
				38,700,848
Health Care — 5.8%
Abbott Laboratories		109,403		5,318,080
Aetna, Inc.		19,916		3,023,846
				8,341,926
Industrials — 17.2%
Avis Budget Group, Inc. (a)(b)		216,048		5,891,629
Deere & Co.		22,341		2,761,124
Fastenal Co.		35,278		1,535,651

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 9

Diamond Hill All Cap Select Fund
Schedule of Investments (Continued)
June 30, 2017 (Unaudited)

	Shares		Fair Value
Common Stocks — 94.6% continued
Industrials — 17.2% continued
Hub Group, Inc., Class A (b)		109,017	$	4,180,802
Kirby Corp. (b)		21,960		1,468,026
United Continental Holdings, Inc. (b)		63,290		4,762,572
United Technologies Corp.		22,956		2,803,157
Verisk Analytics, Inc. (b)		17,346		1,463,482
				24,866,443
Information Technology — 5.5%
Alphabet, Inc., Class A (b)		4,789		4,452,238
Apple, Inc.		23,831		3,432,141
				7,884,379
Materials — 2.7%
Axalta Coating Systems Ltd. (b)		120,401		3,857,648
Real Estate — 1.5%
CubeSmart REIT		89,135		2,142,805
Telecommunication Services — 1.1%
Cincinnati Bell, Inc. (b)		77,952		1,523,962
Total Common Stocks			$	136,304,421
Registered Investment Companies — 12.4%
Diamond Hill Short Duration Total Return Fund, Class Y(c)		275,157		2,784,585
State Street Institutional US Government Money Market Fund, Premier Class, 0.88%(d)		4,807,553		4,807,553
State Street Navigator Securities Lending Prime Portfolio, 1.18%(d)		10,227,127		10,227,127
Total Registered Investment Companies			$	17,819,265
Total Investment Securities — 107.0%
(Cost $129,158,937)(e)			$	154,123,686
Net Other Assets (Liabilities) — (7.0)%				(10,011,754	)
Net Assets — 100.0%			$	144,111,932

^(a) All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2017 was $10,296,900.

^(b) Non-income producing security.

^(c) Affiliated fund.

^(d) Variable rate security. The rate shown is the effective interest rate as of June 30, 2017.

^(e) Represents cost for financial reporting purposes.

plc – Public Limited Company

REIT – Real Estate Investment Trust

See accompanying Notes to Financial Statements

10 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Long-Short Fund
Schedule of Investments
June 30, 2017 (Unaudited)

	Shares		Fair Value
Common Stocks — 82.0%
Consumer Discretionary — 17.5%
BorgWarner, Inc. (a)		2,131,155	$	90,275,726
Comcast Corp., Class A (a)		2,336,870		90,950,980
Dollar General Corp. (a)		1,235,025		89,032,952
Goodyear Tire & Rubber Co. (The) (a)		1,593,475		55,707,886
Hanesbrands, Inc. (a)		3,085,660		71,463,886
Newell Brands, Inc. (a)		581,692		31,190,325
TEGNA, Inc. (a)		2,813,208		40,538,327
TJX Cos., Inc. (The) (a)		1,171,860		84,573,136
Twenty-First Century Fox, Inc., Class B		2,902,715		80,898,667
VF Corp. (a)		984,330		56,697,408
Walt Disney Co. (The) (a)		608,691		64,673,419
Whirlpool Corp. (a)		392,220		75,157,196
				831,159,908
Consumer Staples — 4.2%
Coty, Inc., Class A (a)		3,367,745		63,178,896
Kimberly-Clark Corp. (a)		417,190		53,863,401
Molson Coors Brewing Co., Class B (a)		550,280		47,511,175
Procter & Gamble Co. (The) (a)		403,437		35,159,535
				199,713,007
Energy — 1.8%
Cimarex Energy Co. (a)		938,844		88,260,724
Financials — 25.3%
BankUnited, Inc. (a)		2,955,050		99,614,736
Berkshire Hathaway, Inc., Class B (a)(b)		460,360		77,971,173
Capital One Financial Corp. (a)		1,491,625		123,238,058
Citigroup, Inc.		2,832,794		189,457,263
Discover Financial Services (a)		1,270,920		79,038,515
Franklin Resources, Inc. (a)		1,021,905		45,771,125
Hartford Financial Services Group, Inc. (The) (a)		1,431,495		75,253,692
JPMorgan Chase & Co. (a)		993,575		90,812,755
Loews Corp. (a)		1,504,195		70,411,368
MetLife, Inc. (a)		2,545,699		139,860,703
Morgan Stanley		1,622,365		72,292,584
Popular, Inc.		2,170,592		90,535,392
Wells Fargo & Co. (a)		425,022		23,550,469
Willis Towers Watson plc (a)		160,595		23,360,149
				1,201,167,982
Health Care — 8.5%
Abbott Laboratories (a)		3,808,305		185,121,706
Alere, Inc. (b)		1,104,390		55,429,334
Medtronic plc (a)		729,667		64,757,946
Pfizer, Inc. (a)		2,992,095		100,504,471
				405,813,457
Industrials — 9.8%
Avis Budget Group, Inc. (a)(b)		1,002,480		27,337,630
Colfax Corp. (a)(b)		835,405		32,889,895
Deere & Co. (a)		266,310		32,913,253
Fastenal Co. (a)		386,660		16,831,310
Johnson Controls International plc (a)		1,112,970		48,258,379
Kirby Corp. (a)(b)		371,225		24,816,391
Parker-Hannifin Corp. (a)		294,960		47,140,507
United Continental Holdings, Inc. (a)(b)		1,652,115		124,321,654
United Technologies Corp. (a)		909,055		111,004,706
				465,513,725
Information Technology — 13.2%
Alphabet, Inc., Class A (b)		162,050		150,654,644
Apple, Inc. (a)		825,516		118,890,814
Cisco Systems, Inc. (a)		2,048,660		64,123,058
Cognizant Technology Solutions Corp., Class A (a)		1,089,180		72,321,552
Juniper Networks, Inc. (a)		2,220,930		61,919,528
Microsoft Corp. (a)		1,373,124		94,649,437
Vantiv, Inc., Class A (a)(b)		989,940		62,702,800
				625,261,833
Materials — 1.7%
Axalta Coating Systems Ltd. (a)(b)		2,505,180		80,265,967
Total Common Stocks			$	3,897,156,603

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 11

Diamond Hill Long-Short Fund
Schedule of Investments (Continued)
June 30, 2017 (Unaudited)

	Shares		Fair Value
Registered Investment Companies — 44.0%
Diamond Hill Short Duration Total Return Fund, Class Y(c)		7,121,480	$	72,069,381
State Street Institutional Liquid Reserves Fund, Premier Class, 1.10%(d)		737,608,254		737,682,015
State Street Navigator Securities Lending Prime Portfolio, 1.18%(d)		1,279,914,573		1,279,914,573
Total Registered Investment Companies			$	2,089,665,969
Total Investment Securities — 126.0%
(Cost $4,954,014,405)(e)			$	5,986,822,572
Segregated Cash With Custodian — 28.2%				1,341,507,222
Securities Sold Short — (28.2)%
(Proceeds $1,120,667,554)				(1,337,839,379	)
Net Other Assets (Liabilities) — (26.0)%				(1,239,694,049	)
Net Assets — 100.0%			$	4,750,796,366

^(a) All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2017 was $1,256,884,801.

^(b) Non-income producing security.

^(c) Affiliated fund.

^(d) Variable rate security. The rate shown is the effective interest rate as of June 30, 2017.

^(e) Represents cost for financial reporting purposes.

plc – Public Limited Company

See accompanying Notes to Financial Statements

Diamond Hill Long-Short Fund
Schedule of Investments Sold Short
June 30, 2017 (Unaudited)

	Shares		Fair Value
Common Stocks — 27.9%
Consumer Discretionary — 9.2%
Best Buy Co., Inc.		2,169,785	$	124,393,774
Big Lots, Inc.		455,930		22,021,419
Children's Place, Inc. (The)		279,612		28,548,385
Grand Canyon Education, Inc.		694,325		54,442,023
Lithia Motors, Inc., Class A		341,490		32,178,603
McDonald's Corp.		452,600		69,320,216
Polaris Industries, Inc.		327,180		30,175,811
Under Armour, Inc., Class A		614,435		13,370,106
Wal-Mart Stores, Inc.		836,205		63,283,994
				437,734,331
Consumer Staples — 1.6%
Campbell Soup Co.		358,090		18,674,393
Colgate-Palmolive Co.		175,475		13,007,962
Conagra Brands, Inc.		997,030		35,653,793
Lamb Weston Holdings, Inc.		164,548		7,246,694
				74,582,842
Energy — 0.8%
Core Laboratories NV		142,470		14,427,937
Helmerich & Payne, Inc.		435,900		23,686,806
				38,114,743
Financials — 4.4%
Bank of Hawaii Corp.		690,106		57,258,095
Cincinnati Financial Corp.		1,118,360		81,025,182
First American Financial Corp.		368,575		16,471,617
Mercury General Corp.		314,514		16,983,756
Selective Insurance Group, Inc.		791,846		39,631,892
				211,370,542
Health Care — 2.7%
AbbVie, Inc.		388,615		28,178,474
IDEXX Laboratories, Inc.		57,165		9,227,574
Merck & Co., Inc.		844,340		54,113,751
Varian Medical Systems, Inc.		335,305		34,600,123
				126,119,922

12 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Long-Short Fund
Schedule of Investments Sold Short (Continued)
June 30, 2017 (Unaudited)

	Shares		Fair Value
Common Stocks — 27.9% continued
Industrials — 3.2%
Boeing Co. (The)		547,305	$	108,229,564
Cintas Corp.		359,760		45,344,150
				153,573,714
Information Technology — 4.0%
Arista Networks, Inc.		556,580		83,370,118
Stamps.com, Inc.		405,575		62,813,428
Ubiquiti Networks, Inc.		546,260		28,389,132
Western Union Co. (The)		875,315		16,674,751
				191,247,429
Telecommunication Services — 0.5%
AT&T, Inc.		623,625		23,529,371
Utilities — 1.5%
Consolidated Edison, Inc.		856,760		69,243,343
Total Common Stocks			$	1,325,516,237
Registered Investment Companies — 0.3%
Industrials — 0.3%
Industrial Select Sector SPDR Fund (The)		180,930	$	12,323,142
Total Securities Sold Short — 28.2%
(Proceeds $1,120,667,554)			$	1,337,839,379

Percentages disclosed are based on total net assets of the Fund at June 30, 2017.

See accompanying Notes to Financial Statements.

Diamond Hill Research Opportunities Fund
Schedule of Investments
June 30, 2017 (Unaudited)

	Shares		Fair Value
Common Stocks — 96.6%
Consumer Discretionary — 18.7%
BorgWarner, Inc. (a)		6,200	$	262,632
Charter Communications, Inc., Class A (a)(b)		2,100		707,385
Delphi Automotive plc		3,150		276,098
Ford Motor Co. (a)		12,500		139,875
Hanesbrands, Inc. (a)		30,900		715,644
Liberty Global plc, Class A (b)		27,325		877,679
Newell Brands, Inc. (a)		10,000		536,200
NVR, Inc. (a)(b)		700		1,687,427
Red Rock Resorts, Inc., Class A		105,790		2,491,355
Vail Resorts, Inc. (a)		15,700		3,184,431
VF Corp. (a)		13,000		748,800
				11,627,526
Consumer Staples — 2.8%
Anheuser-Busch InBev SA/NV - ADR (a)		2,150		237,274
B&G Foods, Inc. (a)		14,465		514,954
Coty, Inc., Class A (a)		12,000		225,120
Post Holdings, Inc. (a)(b)		10,128		786,439
				1,763,787
Energy — 0.6%
Cimarex Energy Co. (a)		3,900		366,639
Financials — 18.2%
Atlas Financial Holdings, Inc. (b)		25,460		379,354
Bank of New York Mellon Corp. (The)		16,205		826,779
Berkshire Hathaway, Inc., Class B (a)(b)		1,981		335,522
Capital One Financial Corp. (a)		13,620		1,125,284
Discover Financial Services (a)		18,005		1,119,731
Fortress Investment Group LLC, Class A		81,061		647,677
Franklin Resources, Inc. (a)		17,426		780,511
Julius Baer Group Ltd. (SW) (b)(c)		19,480		1,029,207
MetLife, Inc. (a)		19,426		1,067,264
Nationstar Mortgage Holdings, Inc. (b)		121,724		2,177,642
Popular, Inc.		13,475		562,042
State Street Corp. (a)		6,770		607,472

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 13

Diamond Hill Research Opportunities Fund
Schedule of Investments (Continued)
June 30, 2017 (Unaudited)

	Shares		Fair Value
Common Stocks — 96.6% continued
Financials — 18.2% contined
SVB Financial Group (a)(b)		3,795	$	667,123
				11,325,608
Health Care — 14.2%
Aetna, Inc.		3,970		602,765
Alere, Inc. (b)		8,819		442,626
Allergan plc (a)		1,290		313,586
BioScrip, Inc. (a)(b)		536,749		1,457,274
Endo International plc (b)		60,080		671,094
Express Scripts Holding Co. (a)(b)		2,125		135,660
GlaxoSmithKline plc - ADR		60,843		2,623,550
Integer Holdings Corp. (a)(b)		3,704		160,198
McKesson Corp.		5,764		948,409
Medtronic plc (a)		6,895		611,931
Thermo Fisher Scientific, Inc.		1,612		281,246
Valeant Pharmaceuticals International, Inc. (a)(b)		34,500		596,850
				8,845,189
Industrials — 17.7%
Aircastle Ltd.		20,300		441,525
Colfax Corp. (a)(b)		3,689		145,236
Fastenal Co. (a)		3,170		137,990
Honeywell International, Inc.		1,800		239,922
Howden Joinery Group plc (GB) (c)		115,000		610,110
Hub Group, Inc., Class A (a)		68,230		2,616,621
Illinois Tool Works, Inc.		700		100,275
Johnson Controls International plc		4,805		208,345
Kirby Corp. (a)(b)		9,100		608,335
Parker-Hannifin Corp.		600		95,892
Sensata Technologies Holding NV (a)(b)		29,335		1,253,191
SPX FLOW, Inc. (b)		8,398		309,718
United Continental Holdings, Inc. (a)(b)		44,250		3,329,813
Verisk Analytics, Inc. (a)(b)		10,800		911,196
				11,008,169
Information Technology — 14.0%
Avnet, Inc.		36,980		1,437,782
Cognizant Technology Solutions Corp., Class A (a)		50,868		3,377,635
CommScope Holding Co., Inc. (a)(b)		37,944		1,443,010
Microsoft Corp. (a)		19,295		1,330,004
WNS Holdings Ltd. - ADR (b)		32,915		1,130,959
				8,719,390
Materials — 2.9%
Axalta Coating Systems Ltd. (a)(b)		48,539		1,555,190
Fuchs Petrolub SE (GE) (c)		5,990		282,672
				1,837,862
Real Estate — 1.8%
iStar, Inc. REIT (b)		92,115		1,109,065
Telecommunication Services — 5.7%
Cincinnati Bell, Inc. (a)(b)		181,524		3,548,794
Total Common Stocks			$	60,152,029

	Coupon			Maturity	Shares / Par Value		Fair Value
Corporate Bonds — 1.6%
Energy — 1.6%
Energen Corp.		7.125	%	02/15/28	$	900,000	$	967,500

14 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Research Opportunities Fund
Schedule of Investments (Continued)
June 30, 2017 (Unaudited)

	Shares		Fair Value
Registered Investment Companies — 28.8%
State Street Institutional Liquid Reserves Fund, Premier Class, 1.10%(d)		540,318	$	540,372
State Street Navigator Securities Lending Prime Portfolio, 1.18%(d)		17,412,687		17,412,687
Total Registered Investment Companies			$	17,953,059
Total Investment Securities — 127.0%
(Cost $70,642,634)(e)			$	79,072,588
Segregated Cash With Custodian — 23.6%				14,725,818
Securities Sold Short — (23.2)%
(Proceeds $12,151,568)				(14,452,410	)
Net Other Assets (Liabilities) — (27.4)%				(17,080,637	)
Net Assets — 100.0%			$	62,265,359

^(a) All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2017 was $17,139,054.

^(b) Non-income producing security.

^(c) Security has been valued at fair value by the Fair Value Committee based on procedures approved by the Board of Trustees. The total value of such securities is $1,921,989 at June 30, 2017, representing 3.1% of net assets.

^(d) Variable rate security. The rate shown is the effective interest rate as of June 30, 2017.

^(e) Represents cost for financial reporting purposes.

ADR – American Depositary Receipt.

plc – Public Limited Company

REIT – Real Estate Investment Trust

(GB) – British Security

(GE) – German Security

(SW) – Swiss Security

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 15

Diamond Hill Research Opportunities Fund
Schedule of Investments Sold Short
June 30, 2017 (Unaudited)

	Shares		Fair Value
Common Stocks — 23.2%
Consumer Discretionary — 5.5%
Best Buy Co., Inc.		18,400	$	1,054,872
Big Lots, Inc.		1,700		82,110
Children's Place, Inc. (The)		3,620		369,602
Grand Canyon Education, Inc.		8,600		674,326
Lithia Motors, Inc., Class A		3,900		367,497
Polaris Industries, Inc.		7,140		658,522
Under Armour, Inc., Class A		5,450		118,592
Wal-Mart Stores, Inc.		1,200		90,816
				3,416,337
Consumer Staples — 0.8%
Campbell Soup Co.		9,875		514,981
Energy — 0.8%
Core Laboratories NV		1,385		140,259
Helmerich & Payne, Inc.		3,720		202,145
RPC, Inc.		7,125		143,996
				486,400
Financials — 3.3%
Bank of Hawaii Corp.		4,805		398,671
Cincinnati Financial Corp.		9,016		653,209
First American Financial Corp.		3,880		173,397
Mercury General Corp.		405		21,870
Selective Insurance Group, Inc.		5,153		257,908
Westamerica Bancorp.		9,373		525,263
				2,030,318
Health Care — 3.4%
AbbVie, Inc.		5,758		417,513
Bioverativ, Inc.		3,500		210,595
Celgene Corp.		2,708		351,688
IDEXX Laboratories, Inc.		550		88,781
Merck & Co., Inc.		5,651		362,173
Prestige Brands Holdings, Inc.		7,158		378,014
Varex Imaging Corp.		2,000		67,600
Varian Medical Systems, Inc.		2,600		268,294
				2,144,658
Industrials — 2.1%
Boeing Co. (The)		4,440		878,010
Cintas Corp.		3,475		437,989
				1,315,999
Information Technology — 6.2%
Arista Networks, Inc.		7,574		1,134,509
NETGEAR, Inc.		6,825		294,157
Stamps.com, Inc.		6,542		1,013,192
Ubiquiti Networks, Inc.		13,672		710,534
Western Union Co. (The)		37,764		719,404
				3,871,796
Telecommunication Services — 0.5%
AT&T, Inc.		7,998		301,765
Utilities — 0.6%
Consolidated Edison, Inc.		4,580		370,156
Total Securities Sold Short — 23.2%
(Proceeds $12,151,568)			$	14,452,410

Percentages disclosed are based on total net assets of the Fund at June 30, 2017.

See accompanying Notes to Financial Statements.

16 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Financial Long-Short Fund
Schedule of Investments
June 30, 2017 (Unaudited)

	Shares		Fair Value
Common Stocks — 93.0%
Banks, Thrifts & Mortgage Finance — 36.3%
BankUnited, Inc. (a)		36,215	$	1,220,808
BOK Financial Corp. (a)		6,155		517,820
Bridge Bancorp, Inc.		17,480		582,084
Citigroup, Inc.		26,055		1,742,558
First Horizon National Corp. (a)		17,045		296,924
First of Long Island Corp. (The)		16,660		476,476
First Republic Bank (a)		7,350		735,735
JPMorgan Chase & Co. (a)		7,010		640,714
Nationstar Mortgage Holdings, Inc. (b)		118,980		2,128,552
Popular, Inc.		21,530		898,016
State Bank Financial Corp. (a)		16,755		454,396
Sterling Bancorp		25,228		586,551
SVB Financial Group (a)(b)		6,265		1,101,324
Wells Fargo & Co. (a)		4,390		243,250
				11,625,208
Capital Markets — 7.5%
Franklin Resources, Inc. (a)		27,660		1,238,891
Morgan Stanley		18,060		804,754
State Street Corp. (a)		4,205		377,315
				2,420,960
Consumer Financial Services — 8.2%
Capital One Financial Corp. (a)		15,865		1,310,766
Discover Financial Services (a)		20,975		1,304,435
				2,615,201
Diversified Financial Services — 4.9%
Berkshire Hathaway, Inc., Class B (a)(b)		9,310		1,576,835
Insurance — 19.1%
Atlas Financial Holdings, Inc. (b)		36,490		543,701
Enstar Group Ltd. (b)		2,500		496,625
Hartford Financial Services Group, Inc. (The) (a)		15,635		821,932
Loews Corp. (a)		29,040		1,359,362
MetLife, Inc. (a)		27,075		1,487,500
Validus Holdings Ltd.		15,075		783,448
Willis Towers Watson plc (a)		4,408		641,188
				6,133,756
IT Services — 0.8%
Vantiv, Inc., Class A (a)(b)		4,085		258,744
REITS & Real Estate Management — 16.2%
Colony NorthStar, Inc. REIT, Class A (a)		95,866		1,350,752
CubeSmart REIT		26,510		637,300
Essex Property Trust, Inc. REIT (a)		650		167,225
iStar, Inc. REIT (a)(b)		125,578		1,511,959
Jones Lang LaSalle, Inc.		5,805		725,625
Public Storage REIT (a)		1,570		327,392
Tanger Factory Outlet Centers, Inc. REIT		18,050		468,939
				5,189,192
Total Common Stocks			$	29,819,896
Registered Investment Companies — 34.8%
State Street Institutional Liquid Reserves Fund, Premier Class, 1.10%(c)		2,029,200		2,029,403
State Street Navigator Securities Lending Prime Portfolio, 1.18%(c)		9,117,249		9,117,249
Total Registered Investment Companies			$	11,146,652

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 17

Diamond Hill Financial Long-Short Fund
Schedule of Investments (Continued)
June 30, 2017 (Unaudited)

	Shares	Fair Value
Total Investment Securities — 127.8%
(Cost $36,603,907)(d)		$	40,966,548
Segregated Cash With Custodian — 15.1%			4,846,354
Securities Sold Short — (14.2)%
(Proceeds $3,620,859)			(4,568,230	)
Net Other Assets (Liabilities) — (28.7)%			(9,194,966	)
Net Assets — 100.0%		$	32,049,706

^(a) All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2017 was $8,924,787.

^(b) Non-income producing security.

^(c) Variable rate security. The rate shown is the effective interest rate as of June 30, 2017.

^(d) Represents cost for financial reporting purposes.

plc – Public Limited Company

REIT – Real Estate Investment Trust

See accompanying notes to financial statements.

Diamond Hill Financial Long-Short Fund
Schedule of Investments Sold Short
June 30, 2017 (Unaudited)

	Shares		Fair Value
Common Stocks — 14.2%
Banks, Thrifts & Mortgage Finance — 5.0%
Bank of Hawaii Corp.		6,435	$	533,912
Washington Federal, Inc.		12,325		409,190
Westamerica Bancorp.		12,045		675,002
				1,618,104
Insurance — 7.1%
Cincinnati Financial Corp.		9,960		721,602
First American Financial Corp.		6,860		306,573
Hanover Insurance Group, Inc. (The)		1,710		151,557
Mercury General Corp.		7,070		381,780
Selective Insurance Group, Inc.		14,420		721,721
				2,283,233
IT Services — 1.1%
Western Union Co. (The)		18,245		347,567
REITS & Real Estate Management — 1.0%
Government Properties Income Trust REIT		17,440		319,326
Total Securities Sold Short — 14.2%
(Proceeds $3,620,859)			$	4,568,230

Percentages disclosed are based on total net assets of the Fund at June 30, 2017.

See accompanying Notes to Financial Statements.

18 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Short Duration Total Return Fund
Schedule of Investments
June 30, 2017 (Unaudited)

	Coupon			Maturity	Shares/ Par Value		Fair Value
Corporate Credit — 13.9%
Banking — 7.0%
ABN AMRO Bank NV (a)(b)		2.100	%	01/18/19	$	500,000	$	500,781
Bank of America Corp.		6.875	%	04/25/18		140,000		145,689
Bank of Montreal (b)		1.350	%	08/28/18		425,000		423,413
Bank of Nova Scotia		1.650	%	06/14/19		35,000		34,859
Canadian Imperial Bank		1.600	%	09/06/19		425,000		420,998
Capital One Financial Corp.		2.500	%	05/12/20		500,000		502,130
Capital One North America		1.850	%	09/13/19		500,000		495,794
Citigroup, Inc. (b)		2.350	%	08/02/21		500,000		495,411
Citigroup, Inc.		2.900	%	12/08/21		750,000		757,522
Commonwealth Bank of Australia (a)(b)		1.375	%	09/06/18		425,000		423,192
Danske Bank A/S (a)		1.650	%	09/06/19		500,000		495,364
DBS Group Holdings Ltd. (a)(c)		1.708	%	06/08/20		1,500,000		1,501,638
Fifth Third Bank (c)		1.883	%	09/27/19		500,000		502,933
Goldman Sachs Group, Inc.		2.300	%	12/13/19		225,000		225,587
Goldman Sachs Group, Inc.		2.600	%	12/27/20		1,000,000		1,005,260
Goldman Sachs Group, Inc. (c)		2.276	%	04/26/22		450,000		453,420
Huntington National Bank (c)		1.738	%	03/10/20		1,000,000		1,002,821
JPMorgan Chase & Co.		2.250	%	01/23/20		50,000		50,152
JPMorgan Chase & Co.		2.550	%	10/29/20		1,000,000		1,008,306
JPMorgan Chase & Co. (c)		2.158	%	01/15/23		400,000		402,425
Key Banc NA		1.600	%	08/22/19		750,000		744,475
Mizuho Financial Group		2.273	%	09/13/21		500,000		491,975
Morgan Stanley		2.650	%	01/27/20		486,000		491,092
Morgan Stanley (c)		2.336	%	01/20/22		1,000,000		1,010,006
National Australia Bank, New York (b)		2.250	%	01/10/20		500,000		501,501
Nordea Bank AB (a)(c)		1.916	%	09/30/19		250,000		251,619
PNC Bank NA		6.875	%	04/01/18		1,000,000		1,037,405
Popular, Inc.		7.000	%	07/01/19		100,000		105,000
Rabobank Nederland NY (b)		2.250	%	01/14/20		300,000		301,497
Royal Bank of Canada (b)		1.500	%	07/29/19		220,000		218,319
Skandinaviska Enskilda Banken AB		1.500	%	09/13/19		500,000		494,371
Svenska Handelsbanken AB (b)		1.500	%	09/06/19		500,000		495,024
Synovus Financial Corp.		7.875	%	02/15/19		175,000		189,840
Toronto-Dominion Bank		1.450	%	09/06/18		450,000		449,134
Toronto-Dominion Bank		1.450	%	08/13/19		20,000		19,826
Wells Fargo Bank NA (c)		1.554	%	11/28/18		1,000,000		1,004,233
Westpac Banking Corp.		1.600	%	08/19/19		425,000		421,717
								19,074,729
Basic Industry — 0.2%
E.I. du Pont de Nemours & Co.		2.200	%	05/01/20		425,000		427,275
Capital Goods — 0.2%
Ashtead Capital, Inc. (a)		6.500	%	07/15/22		200,000		207,250
Stanley Black & Decker, Inc.		1.622	%	11/17/18		420,000		418,983
								626,233
Communications — 0.5%
American Tower Corp.		2.250	%	01/15/22		250,000		243,742
AT&T, Inc.		3.200	%	03/01/22		200,000		202,418
Bankrate, Inc. (a)		6.125	%	08/15/18		150,000		150,656
Cogent Communications, Inc. (a)		5.375	%	03/01/22		25,000		26,250
Crown Castle International Corp.		2.250	%	09/01/21		425,000		418,205
Deutsche Telekom International Finance (a)		1.500	%	09/19/19		200,000		197,191
								1,238,462
Consumer Cyclical — 1.9%
American Honda Finance (b)		1.700	%	09/09/21		650,000		636,763
BMW U.S. Capital LLC (a)		1.450	%	09/13/19		225,000		223,495
CCM Merger, Inc. (a)		6.000	%	03/15/22		200,000		205,000

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 19

Diamond Hill Short Duration Total Return Fund
Schedule of Investments (Continued)
June 30, 2017 (Unaudited)

	Coupon			Maturity	Shares/ Par Value		Fair Value
Corporate Credit — 13.9% continued
Consumer Cyclical — 1.9% continued
Century Communities, Inc.		6.875	%	05/15/22	$	75,000	$	78,750
Cimpress NV (a)		7.000	%	04/01/22		150,000		155,250
Daimler Finance NA LLC (a)		1.750	%	10/30/19		350,000		347,743
Ford Motor Credit Co. LLC		1.724	%	12/06/17		750,000		750,062
Ford Motor Credit Co. LLC		1.897	%	08/12/19		500,000		496,196
Ford Motor Credit Co. LLC		2.681	%	01/09/20		200,000		201,330
General Motors Financial Co.		2.350	%	10/04/19		1,000,000		999,947
General Motors Financial Co.		3.200	%	07/06/21		25,000		25,279
Nissan Motor Acceptance (a)		1.550	%	09/13/19		425,000		420,236
Station Casinos LLC		7.500	%	03/01/21		75,000		78,000
Toyota Motor Credit Corp.		1.950	%	04/17/20		425,000		424,837
								5,042,888
Consumer Non-Cyclical — 0.4%
Amgen, Inc.		2.650	%	05/11/22		860,000		862,774
Mondelēz International, Inc. (a)(b)		1.625	%	10/28/19		250,000		247,663
								1,110,437
Electric — 0.7%
Nevada Power Co.		6.500	%	08/01/18		1,000,000		1,051,149
NextEra Energy, Inc.		1.649	%	09/01/18		215,000		214,355
Sempra Energy		1.625	%	10/07/19		370,000		366,638
Southern Power Co.		1.950	%	12/15/19		250,000		249,080
								1,881,222
Energy — 0.7%
ConocoPhillips Co.		1.050	%	12/15/17		800,000		798,530
Energen Corp.		4.625	%	09/01/21		125,000		126,563
Shell International Finance		1.375	%	09/12/19		500,000		496,377
Sinopec Group Overseas Development Ltd. (a)		1.750	%	09/29/19		500,000		493,697
								1,915,167
Finance Companies — 0.5%
American Express Credit Corp.		1.700	%	10/30/19		900,000		895,190
IBCIL Finance Co. Ltd. (a)		2.125	%	09/29/19		200,000		197,476
Nationstar Mortgage/Capital Corp.		9.625	%	05/01/19		123,000		126,383
Nationstar Mortgage/Capital Corp.		6.500	%	06/01/22		100,000		102,750
								1,321,799
Insurance — 1.2%
Jackson National Life Global Funding (a)		2.100	%	10/25/21		200,000		196,128
Met Life Global Funding I (a)		1.350	%	09/14/18		850,000		846,895
Met Life Global Funding I (a)(c)		1.621	%	06/12/20		1,000,000		1,000,411
New York Life Global Funding (a)		1.500	%	10/24/19		500,000		495,861
Pricoa Global Funding I (a)		1.450	%	09/13/19		350,000		345,407
Principal Life Global Funding II (a)(b)		2.375	%	11/21/21		400,000		396,330
								3,281,032
REITS — 0.1%
Crescent Communities, Inc. (a)		8.875	%	10/15/21		200,000		210,000
Realty Income Corp.		6.750	%	08/15/19		150,000		163,829
								373,829
Technology — 0.3%
Apple, Inc. (b)		2.300	%	05/11/22		425,000		424,173
Qualcomm, Inc. (b)		2.100	%	05/20/20		450,000		452,039
								876,212
Transportation — 0.2%
Allegiant Travel Co.		5.500	%	07/15/19		100,000		104,000
American Airlines Pass-Through Trust, Series 2013-1, Class B (a)		5.625	%	01/15/21		161,394		168,979
Continental Airlines Pass-Through Trust, Series 2012-1, Class B		6.250	%	10/11/21		104,053		110,036

20 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Short Duration Total Return Fund
Schedule of Investments (Continued)
June 30, 2017 (Unaudited)

	Coupon			Maturity	Shares/ Par Value		Fair Value
Corporate Credit — 13.9% continued
Transportation — 0.2% continued
U.S. Airways Pass-Through Trust, Series 2013-1, Class B		5.375	%	05/15/23	$	83,959	$	88,366
								471,381
Total Corporate Credit							$	37,640,666
Securitized — 80.7%
ABS-Other — 16.1%
Gold Key Resorts LLC, Series 2014-A, Class A (a)		3.220	%	03/17/31		373,492		374,613
Green Tree Agency Advance Funding Trust, Series 2016-T1, Class CT1 (a)		3.614	%	10/15/48		1,000,000		993,860
Green Tree Agency Advance Funding Trust, Series 2016-T1, Class DT1 (a)		4.057	%	10/15/48		1,500,000		1,490,835
Hero Funding Trust, Series 2016-3B, Class B (a)		5.240	%	09/20/42		782,815		787,907
Hero Funding Trust, Series 2016-1R, Class A1 (a)		4.500	%	09/21/42		1,630,079		1,635,173
Hero Funding Trust, Series 2016-4B, Class B (a)		4.990	%	09/20/47		1,827,647		1,843,639
Kabbage Funding LLC, Series 2017-1, Class A (a)		4.571	%	03/15/22		750,000		767,211
Kabbage Funding LLC, Series 2017-1, Class B (a)		5.794	%	03/15/22		1,900,000		1,930,893
Kabbage Funding LLC, Series 2017-1, Class C (a)		8.000	%	03/15/22		1,300,000		1,314,569
LEAF II Receivables Funding LLC, Series 2017-1, Class E1 (a)		4.470	%	07/15/22		1,650,000		1,642,935
LEAF II Receivables Funding LLC, Series 2017-1, Class E2 (a)		5.990	%	09/15/24		2,278,000		2,321,190
MarketPlace Loan Trust, Series 2016-BS1, Class A (a)		4.500	%	01/15/21		1,865,102		1,869,231
Nationstar HECM Loan Trust, Series 2016-3A, Class A (a)		2.012	%	08/25/26		543,179		548,836
Nationstar HECM Loan Trust, Series 2016-3A, Class M1 (a)		3.147	%	08/25/26		900,000		900,873
Nationstar HECM Loan Trust, Series 2016-3A, Class M2 (a)		5.682	%	08/25/26		350,000		357,105
New Residential Advance Receivables Trust, Series 2016-T2, Class DT2 (a)		4.005	%	10/15/49		1,354,000		1,351,913
New Residential Advance Receivables Trust, Series 2016-T2, Class ET2 (a)		5.573	%	10/15/49		1,000,000		1,000,528
New Residential Advance Receivables Trust, Series 2016-T4, Class ET4 (a)		6.250	%	12/15/50		2,500,000		2,543,700
New Residential Advance Receivables Trust, Series 2017-T1, Class ET1 (a)		5.815	%	02/15/51		2,845,000		2,859,981
NRZ Excess Spread Collateralized Notes, Series 2016-PLS2, Class A (a)		5.683	%	07/25/21		1,239,614		1,239,614

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 21

Diamond Hill Short Duration Total Return Fund
Schedule of Investments (Continued)
June 30, 2017 (Unaudited)

	Coupon			Maturity	Shares/ Par Value		Fair Value
Securitized — 80.7% continued
ABS-Other — 16.1% continued
Ocwen Master Advance Receivables Trust, Series 2015-T3, Class AT3 (a)		3.211	%	11/15/47	$	188,000	$	187,557
Ocwen Master Advance Receivables Trust, Series 2015-T3, Class DT3 (a)		4.687	%	11/15/47		800,000		800,473
Ocwen Master Advance Receivables Trust, Series 2016-T1, Class AT1 (a)		2.520	%	08/17/48		2,000,000		1,990,818
Ocwen Master Advance Receivables Trust, Series 2016-T1, Class DT1 (a)		4.246	%	08/17/48		1,900,000		1,873,470
Ocwen Master Advance Receivables Trust, Series 2016-T2, Class DT2 (a)		4.445	%	08/16/49		1,000,000		975,418
OnDeck Asset Securitization Trust, Series 2016-1A, Class A (a)		4.210	%	05/17/20		4,662,000		4,670,162
PNMAC GMSR Issuer Trust, Series 2017-GT1, Class A (a)(c)		5.966	%	02/25/50		2,000,000		1,999,012
Renew Financial LLC, Series 2017-1A, Class B (a)		5.750	%	09/20/52		1,795,000		1,794,956
SPS Servicer Advance Receivables Trust, Series 2016-T2, Class CT2 (a)		3.590	%	11/15/49		650,000		639,739
Westgate Resorts, Series 2016-1A, Class A (a)		3.500	%	12/20/28		876,736		880,716
								43,586,927
Agency CMBS — 0.4%
FNMA, Pool FN AE0834 (c)		3.976	%	01/01/21		236,982		250,713
FNMA, Pool FN 464279		4.300	%	07/01/21		855,682		894,735
								1,145,448
Agency MBS CMO — 5.3%
FHLMC, Series 3994, Class EI		3.000	%	02/15/22		3,201,053		138,815
FHLMC, Series 3874, Class KI		4.500	%	08/15/25		2,538,868		162,872
FHLMC, Series 3946, Class SB (c)		5.591	%	10/15/26		589,942		75,855
FHLMC, Series 2814, Class PH		6.000	%	06/15/34		392,622		445,635
FHLMC, Series 4316, Class DA		3.000	%	02/15/39		860,559		881,960
FHLMC, Series 4119, Class LB		1.750	%	06/15/39		477,252		466,935
FHLMC, Series 3903, Class QC		2.250	%	03/15/41		480,848		485,490
FNMA, Series 1994-4, Class ZC		6.500	%	01/25/24		70,662		77,860
FNMA, Series 2011-75, Class MI		3.500	%	08/25/26		1,126,681		109,412
FNMA, Series 2012-3, Class EA		3.500	%	10/25/29		306,096		312,406
FNMA, Series 2002-86, Class PG		6.000	%	12/25/32		395,008		448,880
FNMA, Series 2003-131, Class CH		5.500	%	01/25/34		138,810		156,550
FNMA, Series 348, Class 11		6.000	%	01/25/34		1,440,428		324,839
FNMA, Series 2006-9, Class KZ		6.000	%	03/25/36		356,122		403,368
FNMA, Series 2007-B1, Class ZA		5.500	%	04/25/37		165,444		184,720
FNMA, Series 2007-39, Class NB		4.250	%	05/25/37		467,195		499,751
FNMA, Series 2011-46, Class MB		4.000	%	06/25/37		357,707		360,011
FNMA, Series 2010-44, Class CS (c)		5.333	%	05/25/40		1,638,729		225,118
FNMA, Series 2011-14, Class PI		5.000	%	06/25/40		1,155,858		149,051

22 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Short Duration Total Return Fund
Schedule of Investments (Continued)
June 30, 2017 (Unaudited)

	Coupon			Maturity	Shares/ Par Value		Fair Value
Securitized — 80.7% continued
Agency MBS CMO — 5.3% continued
FNMA, Series 2010-71, Class HJ		5.500	%	07/25/40	$	966,739	$	1,082,494
FNMA, Series 2014-45, Class IO		4.000	%	08/25/44		2,090,386		363,761
GNMA, Series 2005-47, Class SX (c)		4.637	%	05/20/34		723,115		3,204
GNMA, Series 2011-18, Class NA		4.000	%	05/20/39		62,177		63,519
GNMA, Series 2011-166, Class LB		4.000	%	05/16/40		1,499,695		1,546,842
GNMA, Series 2013-H04, Class BA		1.650	%	02/20/63		2,756,513		2,744,798
GNMA, Series 2013-H07, Class JA		1.750	%	03/20/63		871,073		867,974
GNMA, Series BC-H066, Class DI (c)		3.344	%	05/31/64		38,997,566		1,840,217
GNMA, Series 2016-H11, Class FD (c)		2.201	%	05/20/66		146,592		148,030
Vendee Mortgage Trust, Series 1995-3, Class 1Z		7.250	%	09/15/25		171,869		195,308
								14,765,675
Agency MBS Passthrough — 0.6%
FHLMC, Pool FG G60257		5.500	%	06/01/41		1,380,686		1,538,101
FNMA, Pool FN 725146		6.500	%	07/01/19		57,776		59,068
								1,597,169
Auto Loan — 23.2%
American Credit Acceptance Receivables Trust, Series 2014-4, Class C (a)		4.250	%	10/12/20		1,000,000		1,009,600
American Credit Acceptance Receivables Trust, Series 2015-2, Class B (a)		2.970	%	05/12/21		1,053,483		1,056,849
American Credit Acceptance Receivables Trust, Series 2016-3, Class C (a)		4.260	%	08/12/22		246,000		250,178
BMW Vehicle Lease Trust, Series 2016-2, Class A4		1.570	%	02/20/20		750,000		746,743
California Republic Auto Receivables Trust, Series 2015-4, Class C (a)		4.230	%	09/15/22		85,000		86,646
CarFinance Capital LLC, Series 2014-2A, Class A (a)		1.440	%	11/16/20		186,441		186,253
CPS Auto Trust, Series 2013-D, Class D (a)		5.540	%	11/15/19		1,900,000		1,922,491
CPS Auto Trust, Series 2016-C, Class A (a)		1.620	%	01/15/20		53,333		53,294
CPS Auto Trust, Series 2014-D, Class C (a)		4.350	%	11/16/20		155,000		158,481
CPS Auto Trust, Series 2016-C, Class C (a)		3.270	%	06/15/22		100,000		100,841
CPS Auto Trust, Series 2017-A, Class D (a)(b)		4.610	%	12/15/22		1,000,000		1,029,268
CPS Auto Trust, Series 2017-B, Class D (a)		3.950	%	03/15/23		2,150,000		2,150,263
CPS Auto Trust, Series 2017-A, Class E (a)		7.070	%	04/15/24		4,250,000		4,416,833
Drive Auto Receivables Trust, Series 2015-BA, Class C (a)		2.760	%	07/15/21		402,271		404,520
Drive Auto Receivables Trust, Series 2017-BA, Class D (a)		3.720	%	10/17/22		2,900,000		2,918,074
Drive Auto Receivables Trust, Series 2017-1, Class D		3.840	%	03/15/23		4,000,000		4,016,148

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 23

Diamond Hill Short Duration Total Return Fund
Schedule of Investments (Continued)
June 30, 2017 (Unaudited)

	Coupon			Maturity	Shares/ Par Value		Fair Value
Securitized — 80.7% continued
Auto Loan — 23.2% continued
DT Auto Owner Trust, Series 2016-1A, Class B (a)		2.790	%	05/15/20	$	2,378,147	$	2,383,319
DT Auto Owner Trust, Series 2017-2A, Class D (a)		3.890	%	01/17/23		1,900,000		1,912,223
DT Auto Owner Trust, Series 2017-2A, Class E (a)		6.030	%	01/16/24		2,000,000		2,040,165
Exeter Automobile Receivables Trust, Series 2014-3A, Class B (a)		2.770	%	11/15/19		677,808		679,298
Exeter Automobile Receivables Trust, Series 2013-2A, Class D (a)		6.810	%	08/17/20		3,100,000		3,176,438
Exeter Automobile Receivables Trust, Series 2017-2A, Class D (a)		6.390	%	02/15/24		1,000,000		1,028,183
Flagship Credit Auto Trust, Series 2014-1, Class E (a)		5.710	%	08/16/21		1,000,000		1,025,423
Flagship Credit Auto Trust, Series 2016-4, Class E (a)		6.440	%	01/16/24		1,990,000		2,047,093
FourSight Capital Automobile Receivables Trust, Series 2017-1, Class D (a)		5.280	%	08/15/24		1,700,000		1,702,788
GLS Auto Receivables Trust, Series 2017-1A, Class A1 (a)		1.550	%	06/15/18		4,500,000		4,500,280
GLS Auto Receivables Trust, Series 2015-1A, Class A (a)		2.250	%	12/15/20		248,827		248,636
GLS Auto Receivables Trust, Series 2016-1A, Class C (a)		6.900	%	10/15/21		1,900,000		1,961,203
GM Financial Automobile Leasing Trust, Series 2016-3, Class C		2.380	%	05/20/20		1,000,000		994,937
GM Financial Automobile Leasing Trust, Series 2017-1, Class A4		2.260	%	08/20/20		1,500,000		1,503,881
GO Financial Auto Securitization Trust, Series 2015-2, Class B (a)		4.800	%	08/17/20		695,000		700,217
Hertz Fleet Lease Funding LP, Series 2017-1, Class E (a)		5.800	%	04/10/31		900,000		897,580
Honor Automobile Trust Securitization, Series 2016-1A, Class A (a)		2.940	%	11/15/19		770,890		773,544
Honor Automobile Trust Securitization, Series 2016-1A, Class B (a)		5.760	%	04/15/21		900,000		928,450
Honor Automobile Trust Securitization, Series 2016-1A, Class C (a)		8.050	%	11/15/22		900,000		897,133
MMCA Automobile Trust, Series 2014-A, Class B (a)		1.920	%	12/16/19		2,570,000		2,568,531
Navistar Financial Dealer Master Trust, Series 2016-1, Class B (a)(c)		2.966	%	09/27/21		525,000		526,125

24 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Short Duration Total Return Fund
Schedule of Investments (Continued)
June 30, 2017 (Unaudited)

	Coupon			Maturity	Shares/ Par Value		Fair Value
Securitized — 80.7% continued
Auto Loan — 23.2% continued
Navistar Financial Dealer Master Trust, Series 2016-1, Class D (a)(c)		4.516	%	09/27/21	$	570,000	$	570,729
Nissan Auto Receivables Owner Trust, Series 2016-C, Class A3		1.180	%	01/15/21		1,000,000		992,788
Prestige Auto Receivables Trust, Series 2015-1, Class D (a)		3.050	%	04/15/21		100,000		100,510
Santander Drive Auto Receivables Trust, Series 2016-2, Class A2A		1.380	%	07/15/19		14,591		14,588
Santander Drive Auto Receivables Trust, Series 2017-2, Class D		3.490	%	07/17/23		3,350,000		3,350,685
United Auto Credit Securitization Trust, Series 2015-1, Class E (a)		4.770	%	07/15/21		2,000,000		2,005,248
United Auto Credit Securitization Trust, Series 2016-2, Class D (a)		3.580	%	12/10/21		500,000		499,278
United Auto Credit Securitization Trust, Series 2017-1, Class E (a)		5.090	%	03/10/23		2,350,000		2,349,482
								62,885,237
Consumer — 20.0%
AMPLIT Trust, Series 2015-A, Class A (a)		5.000	%	09/15/21		185,876		186,414
Arcadia Receivables Credit Trust, Series 2017-1, Class A (a)		3.250	%	06/15/23		1,416,519		1,420,410
Arcadia Receivables Credit Trust, Series 2017-1, Class B (a)		5.500	%	06/15/23		3,900,000		3,959,234
Avant Loans Funding Trust, Series 2016-C, Class A (a)		2.960	%	09/16/19		63,319		63,347
Avant Loans Funding Trust, Series 2015-A, Class A (a)		4.000	%	08/16/21		187,057		187,181
Avant Loans Funding Trust, Series 2015-A, Class B (a)		6.000	%	08/16/21		1,625,717		1,649,595
Avant Loans Funding Trust, Series 2015-A, Class C (a)		7.750	%	08/16/21		609,644		629,838
Avant Loans Funding Trust, Series 2017-A, Class B (a)		3.650	%	09/15/22		1,600,000		1,609,426
Avant Loans Funding Trust, Series 2017-A, Class C (a)		6.050	%	05/15/24		750,000		758,682
Citi Held for Asset Issuance, Series 2015-PM1, Class B (a)		2.930	%	12/15/21		844,085		844,581
Citi Held for Asset Issuance, Series 2015-PM2, Class B (a)		4.000	%	03/15/22		3,251,405		3,280,371
Citi Held for Asset Issuance, Series 2016-MF1, Class C (a)		10.390	%	08/15/22		225,000		242,170
Citi Held for Asset Issuance, Series 2016-PM1, Class B (a)		7.670	%	04/15/25		2,000,000		2,092,983
Conn Funding II LP, Series 2016-B, Class A (a)		3.730	%	10/15/18		232,553		232,923

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 25

Diamond Hill Short Duration Total Return Fund
Schedule of Investments (Continued)
June 30, 2017 (Unaudited)

	Coupon			Maturity	Shares/ Par Value		Fair Value
Securitized — 80.7% continued
Consumer — 20.0% continued
Consumer Installment Loan Trust, Series 2016-LD1, Class A (a)		3.960	%	07/15/22	$	1,148,167	$	1,156,353
Consumer Loan Underlying Bond Credit Trust, Series 2017-NP1, Class C (a)		5.130	%	04/17/23		1,900,000		1,902,820
LendingClub Issuance Trust, Series 2016-NP1, Class B (a)		6.500	%	06/15/22		835,000		859,684
Lendmark Funding Trust, Series 2017-1A, Class B (a)		3.770	%	01/22/24		400,000		399,984
Lendmark Funding Trust, Series 2017-1A, Class C (a)		5.410	%	01/22/24		2,300,000		2,299,402
Lendmark Funding Trust, Series 2016-2A, Class C (a)		6.640	%	04/21/25		2,900,000		2,854,128
Mariner Finance Issuance Trust, Series 2017-AA, Class B (a)		4.740	%	02/20/29		400,000		404,690
Mariner Finance Issuance Trust, Series 2017-AA, Class C (a)		6.730	%	02/20/29		1,750,000		1,818,912
MarketPlace Loan Trust, Series 2015-AV2, Class A (a)		4.000	%	10/15/21		1,091,049		1,093,571
MarketPlace Loan Trust, Series 2015-AV2, Class B (a)		5.750	%	10/15/21		241,140		242,563
Marlette Funding Trust, Series 2016-1A, Class A (a)		3.060	%	01/17/23		44,905		45,107
Marlette Funding Trust, Series 2016-1A, Class B (a)		4.780	%	01/17/23		100,000		102,318
Marlette Funding Trust, Series 2017-1A, Class B (a)		4.114	%	03/15/24		900,000		916,461
Marlette Funding Trust, Series 2017-1A, Class C (a)		6.658	%	03/15/24		2,245,000		2,318,128
Marlette Funding Trust, Series 2017-2A, Class B (a)		3.190	%	07/15/24		1,400,000		1,399,881
Marlette Funding Trust, Series 2017-2A, Class C (a)		4.580	%	07/15/24		2,400,000		2,399,852
Murray Hill MarketPlace Trust, Series 2016-LC1, Class A (a)		4.190	%	11/25/22		1,214,225		1,225,118
Murray Hill MarketPlace Trust, Series 2016-LC1, Class B (a)		6.150	%	11/25/22		1,250,000		1,271,979
OneMain Financial Issuance Trust, Series 2014-2A, Class B (a)		3.020	%	09/18/24		840,000		843,357
OneMain Financial Issuance Trust, Series 2015-1A, Class A (a)		3.190	%	03/18/26		630,000		636,284
OneMain Financial Issuance Trust, Series 2016-1A, Class A (a)		3.660	%	02/20/29		115,000		117,694
Oportun Funding IV LLC, Series 2016-C, Class B (a)		4.850	%	11/08/21		1,500,000		1,530,149
Purchasing Power Funding, Series 2015-A, Class A2 (a)		4.750	%	12/15/19		2,150,000		2,157,392
SoFi Consumer Loan Program Trust, Series 2016-2A, Class A (a)		3.090	%	10/27/25		1,043,308		1,051,986
SoFi Consumer Loan Program Trust, Series 2016-3, Class A (a)		3.050	%	12/26/25		1,456,684		1,470,316

26 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Short Duration Total Return Fund
Schedule of Investments (Continued)
June 30, 2017 (Unaudited)

	Coupon			Maturity	Shares/ Par Value		Fair Value
Securitized — 80.7% continued
Consumer — 20.0% continued
Springfield Funding Trust, Series 2015-AA, Class B (a)		3.620	%	11/15/24	$	135,000	$	136,132
Upstart Securitization Trust, Series 2017-1, Class B (a)		3.802	%	06/20/24		3,350,000		3,348,987
Upstart Securitization Trust, Series 2017-1, Class C (a)		6.350	%	06/20/24		2,850,000		2,845,227
Verizon Owner Trust, Series 2016-1A, Class A (a)		1.420	%	01/20/21		100,000		99,505
								54,105,135
Equipment — 3.3%
Ascentium Equipment Receivables Trust, Series 2016-2A, Class E (a)		6.790	%	10/10/24		900,000		949,874
Axis Equipment Finance Receivables Trust, Series 2015-1A, Class A2 (a)		1.900	%	03/20/20		193,974		193,846
Axis Equipment Finance Receivables Trust, Series 2016-1A, Class A (a)		2.210	%	11/20/21		1,197,212		1,192,260
BCC Funding Corp., Series 2015-1, Class A2 (a)		2.224	%	10/20/20		297,336		297,033
BCC Funding Corp., Series 2016-1, Class A2 (a)		2.200	%	12/20/21		310,728		310,650
BCC Funding Corp. (a)		2.730	%	04/20/22		1,250,000		1,247,393
BCC Funding Corp., Series 2016-1, Class E(a)		6.000	%	11/21/22		1,000,000		928,005
California Funding II Ltd., Series 2013-1A, Class A (a)		3.350	%	03/27/28		1,092,500		1,069,014
Global SC Finance SRL, Series 2014-1A, Class A2 (a)		3.090	%	07/17/29		1,406,042		1,384,741
SCF Equipment Trust LLC, Series 2017-1A, Class A (a)		3.770	%	01/20/23		1,226,509		1,238,551
United Airlines Pass-Through Trust, Series 2007-1, Class A		6.636	%	07/02/22		148,308		160,914
United Airlines Pass-Through Trust, Series 2013-1, Class B		5.375	%	02/15/23		69,423		72,807
								9,045,088
Non Agency CMBS — 9.9%
A10 Securitization, Series 2014-1, Class A2(a)		3.020	%	04/15/33		32,008		31,984
A10 Securitization, Series 2014-1, Class D(a)		5.080	%	04/15/33		250,000		250,091
AMSR Trust, Series 2016-SFR1, Class A (a)(c)		2.609	%	11/17/33		3,500,000		3,521,860
AMSR Trust, Series 2016-SFR1, Class C (a)(c)		3.459	%	11/17/33		1,000,000		1,018,513
B2R Mortgage Trust, Series 2015-2, Class A (a)		3.336	%	11/15/48		283,995		287,476
Colony American Homes, Inc., Series 2015-1A, Class A (a)(c)		2.371	%	07/17/32		306,256		306,709
Commercial Mortgage Trust, Series 2014-TWC, Class B (a)(c)		2.632	%	02/13/32		1,340,000		1,344,592
Commercial Mortgage Trust, Series 2014-TWC, Class D (a)(c)		3.377	%	02/13/32		1,300,000		1,304,049

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 27

Diamond Hill Short Duration Total Return Fund
Schedule of Investments (Continued)
June 30, 2017 (Unaudited)

	Coupon			Maturity	Shares/ Par Value		Fair Value
Securitized — 80.7% continued
Non Agency CMBS — 9.9% continued
Cosmopolitan Hotel Trust, Series 2016-CSM0, Class D (a)(c)		4.659	%	11/15/33	$	900,000	$	911,219
FirstKey Lending Trust, Series 2015-SFR1, Class A (a)		2.553	%	03/09/47		551,670		551,521
Fort CRE LLC, Series 2016-1A, Class E (a)(c)		9.213	%	05/21/36		4,750,000		4,859,101
Home Partners of America Trust, Series 2017-1, Class A (a)(c)		1.901	%	07/17/34		600,000		598,371
Prime Finance Partners III, Series 2015-2, Class A (a)(c)		2.621	%	07/14/34		1,251,813		1,251,703
Prime Finance Partners III, Series 2017-3, Class C (a)(c)		3.671	%	01/14/35		775,000		779,351
Prime Finance Partners III, Series 2017-3, Class D (a)(c)		4.671	%	01/14/35		500,000		502,325
Progress Residential Trust, Series 2016-SFR1, Class B (a)(c)		3.209	%	09/17/18		100,000		101,595
Progress Residential Trust, Series 2016-SFR1, Class C (a)(c)		3.709	%	09/17/18		100,000		102,779
Progress Residential Trust, Series 2015-SFR2, Class A (a)		2.740	%	06/12/32		1,640,953		1,649,301
Progress Residential Trust, Series 2015-SFR3, Class A (a)		3.067	%	11/12/32		99,600		101,078
Progress Residential Trust, Series 2015-SFR3, Class D (a)		4.673	%	11/12/32		135,000		139,762
RAIT Trust, Series 2016-FL6, Class B (a)(c)		3.639	%	11/13/31		1,400,000		1,403,265
Resource Capital Corp. Ltd, Series 2017-CRE5, Class Class B (a)(c)		0.000	%	07/15/34		1,900,000		1,900,000
The Bancorp Commercial Mortgage Trust, Series 2016-CRE1, Class D (a)(c)		7.195	%	11/15/33		3,900,000		3,900,718
								26,817,363
Non-Agency MBS CMO — 1.5%
CAM Mortgage Trust, Series 2016-2, Class A2 (a)		5.000	%	06/15/57		400,000		394,430
Citigroup Mortgage Loan Trust, Inc., Series 2004-UST1, Class A3 (c)		3.089	%	08/25/34		22,274		22,325
COLT Funding LLC, Series 2016-2, Class M1 (a)		5.500	%	09/25/46		750,000		761,515
First Horizon Mortgage Pass-Through Trust, Series 2005-AR1, Class 2A2 (c)		3.172	%	04/25/35		341,549		345,439
MLCC Mortgage Investors, Inc., Series 2004-C, Class B1 (c)		1.951	%	07/25/29		1,143,996		986,652
Pretium Mortgage Credit Partners, Series 2016-NPL6, Class A1 (a)		3.500	%	10/27/31		789,143		789,033
RiverView HECM Trust, Series 2007-1, Class A (a)(c)		1.720	%	05/25/47		156,462		130,255
Sequoia Mortgage Trust, Series 2003-1, Class 1A (c)		1.972	%	04/20/33		248,545		235,913
Wells Fargo Mortgage Backed Securities, Series 2003-H, Class A1 (c)		3.027	%	09/25/33		329,584		334,106
								3,999,668

28 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Short Duration Total Return Fund
Schedule of Investments (Continued)
June 30, 2017 (Unaudited)

	Coupon			Maturity	Shares/ Par Value		Fair Value
Securitized — 80.7% continued
Student Loan — 0.4%
Earnest Student Loan Program LLC, Series 2016-C, Class A2 (a)		2.680	%	07/25/35	$	675,859	$	676,393
Earnest Student Loan Program LLC, Series 2016-D, Class R		0.000	%	01/25/41		5,000		420,000
								1,096,393
Total Securitized							$	219,044,103
Treasury — 3.9%
U.S. Treasury Notes		0.750	%	03/31/18		600,000		597,750
U.S. Treasury Notes		1.500	%	08/31/18		1,000,000		1,001,875
U.S. Treasury Notes		1.000	%	09/15/18		2,000,000		1,992,656
U.S. Treasury Notes		1.125	%	01/15/19		3,000,000		2,989,218
U.S. Treasury Notes		1.125	%	01/31/19		4,000,000		3,985,624
Total Treasury							$	10,567,123

	Shares		Fair Value
Registered Investment Companies — 3.4%
State Street Institutional Liquid Reserves Fund, Premier Class, 1.10%(c)		5,210,716	$	5,211,237
State Street Navigator Securities Lending Prime Portfolio, 1.18%(c)		4,168,428		4,168,428
Total Registered Investment Companies			$	9,379,665
Total Investment Securities — 101.9%
(Cost $275,675,492)(d)			$	276,631,557
Net Other Assets (Liabilities) — (1.9)%				(5,093,287	)
Net Assets — 100.0%			$	271,538,270

^(a) Restricted securities not registered under the Securities Act of 1933. The total fair value of these securities as of June 30, 2017 was $197,042,397, representing 72.6% of net assets.

^(b) All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2017 was $4,076,551.

^(c) Variable rate security. The rate shown is the effective interest rate as of June 30, 2017.

^(d) Represents cost for financial reporting purposes.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 29

Diamond Hill Core Bond Fund
Schedule of Investments
June 30, 2017 (Unaudited)

	Coupon			Maturity	Shares/ Par Value		Fair Value
Corporate Credit — 20.3%
Banking — 5.9%
Bank of America Corp.		2.881	%	04/24/23	$	100,000	$	100,174
Bank of America Corp. (a)		3.823	%	01/20/28		100,000		101,747
Bank of Montreal (b)		1.350	%	08/28/18		75,000		74,720
Bank of New York Mellon Corp. (The)		3.000	%	10/30/28		100,000		96,792
Bank of Nova Scotia		1.650	%	06/14/19		65,000		64,738
Canadian Imperial Bank		1.600	%	09/06/19		75,000		74,294
Capital One Financial Co. (b)		3.750	%	07/28/26		100,000		97,593
Citigroup, Inc. (b)		3.300	%	04/27/25		100,000		100,039
Citigroup, Inc. (b)		4.125	%	07/25/28		100,000		101,524
Commonwealth Bank of Australia (b)(c)		1.375	%	09/06/18		75,000		74,681
Discover Financial Services, Inc.		4.100	%	02/09/27		100,000		100,183
Goldman Sachs Group, Inc.		2.300	%	12/13/19		25,000		25,065
Goldman Sachs Group, Inc. (a)		2.276	%	04/26/22		50,000		50,380
Goldman Sachs Group, Inc.		3.500	%	01/23/25		80,000		80,876
Goldman Sachs Group, Inc.		3.500	%	11/16/26		100,000		99,480
Huntington Bancshares, Inc.		2.300	%	01/14/22		100,000		98,488
JPMorgan Chase & Co.		2.250	%	01/23/20		100,000		100,304
JPMorgan Chase & Co. (a)		2.158	%	01/15/23		100,000		100,606
JPMorgan Chase & Co. (a)		3.782	%	02/01/28		100,000		102,273
Key Bank NA (b)		2.500	%	11/22/21		250,000		250,772
Morgan Stanley		3.700	%	10/23/24		100,000		102,635
Morgan Stanley		3.125	%	07/27/26		100,000		97,235
Morgan Stanley (b)		3.625	%	01/20/27		100,000		100,638
Royal Bank of Canada (b)		1.500	%	07/29/19		30,000		29,771
Synovus Financial Corp.		7.875	%	02/15/19		25,000		27,120
Toronto-Dominion Bank		1.450	%	09/06/18		50,000		49,904
Toronto-Dominion Bank		1.450	%	08/13/19		30,000		29,739
Wells Fargo & Co.		3.550	%	09/29/25		100,000		101,679
Westpac Banking Corp.		1.600	%	08/19/19		75,000		74,421
								2,507,871
Basic Industry — 0.2%
E.I. du Pont de Nemours & Co.		2.200	%	05/01/20		75,000		75,401
Brokerage Asset Managers Exchanges — 0.3%
CBOE Holdings, Inc.		3.650	%	01/12/27		100,000		100,871
Capital Goods — 0.9%
General Electric Capital Corp.		6.750	%	03/15/32		100,000		137,085
L-3 Communications Corp.		3.850	%	12/15/26		50,000		51,548
Lennox International, Inc.		3.000	%	11/15/23		100,000		99,835
Stanley Black & Decker, Inc.		1.622	%	11/17/18		80,000		79,806
								368,274
Communications — 2.1%
American Tower Corp.		2.250	%	01/15/22		50,000		48,748
AT&T, Inc.		3.200	%	03/01/22		50,000		50,605
AT&T, Inc.		4.500	%	05/15/35		100,000		98,484
Charter Communications Operating LLC		6.834	%	10/23/55		150,000		183,074
Comcast Corp. (b)		6.950	%	08/15/37		100,000		141,229
Crown Castle International Corp.		2.250	%	09/01/21		75,000		73,801
Time Warner, Inc. (b)		3.800	%	02/15/27		100,000		100,686
Verizon Communications, Inc. (b)		4.125	%	03/16/27		100,000		103,289
Verizon Communications, Inc.		5.050	%	03/15/34		100,000		105,972
								905,888
Consumer Cyclical — 2.0%
American Honda Finance (b)		1.700	%	09/09/21		100,000		97,963
BMW U.S. Capital LLC (c)		1.450	%	09/13/19		25,000		24,833
Daimler Finance NA LLC (c)		1.750	%	10/30/19		150,000		149,033
Ford Motor Co. (c)		4.346	%	12/08/26		100,000		102,986
Ford Motor Co.		7.450	%	07/16/31		75,000		94,837
General Motors Financial Co.		3.200	%	07/06/21		35,000		35,390
General Motors Financial Co.		4.000	%	10/06/26		100,000		99,431

30 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
June 30, 2017 (Unaudited)

	Coupon			Maturity	Shares/ Par Value		Fair Value
Corporate Credit — 20.3% continued
Consumer Cyclical — 2.0% continued
Home Depot, Inc. (The)		3.500	%	09/15/56	$	100,000	$	90,767
Nissan Motor Acceptance (c)		1.550	%	09/13/19		75,000		74,159
Toyota Motor Credit Corp.		1.950	%	04/17/20		75,000		74,971
								844,370
Consumer Non-Cyclical — 1.5%
Abbott Laboratories		4.750	%	11/30/36		100,000		108,968
Actavis Funding SCS (b)		4.550	%	03/15/35		100,000		106,821
Amgen, Inc.		2.650	%	05/11/22		140,000		140,452
Anheuser-Busch InBev SA/NV (b)		4.700	%	02/01/36		100,000		110,475
Kroger Co. (The) (b)		2.650	%	10/15/26		100,000		92,234
Thermo Fisher Scientific (b)		2.950	%	09/19/26		100,000		97,249
								656,199
Electric — 1.6%
CMS Energy Corp.		2.950	%	02/15/27		100,000		95,907
DTE Energy Co.		2.850	%	10/01/26		100,000		95,122
Entergy Corp.		2.950	%	09/01/26		50,000		47,883
Nevada Power Co.		6.500	%	08/01/18		100,000		105,115
NextEra Energy, Inc.		1.649	%	09/01/18		35,000		34,895
Public Service Electric		2.250	%	09/15/26		100,000		94,366
Sempra Energy		1.625	%	10/07/19		30,000		29,727
Southern Power Co.		1.950	%	12/15/19		55,000		54,798
Southwestern Electric Power		2.750	%	10/01/26		100,000		95,855
								653,668
Energy — 1.2%
Cimarex Energy Co. (b)		3.900	%	05/15/27		100,000		100,558
ConocoPhillips Co. (b)		1.050	%	12/15/17		100,000		99,816
Phillips 66 Partners LP		3.550	%	10/01/26		100,000		97,141
Shell International Finance BV		6.375	%	12/15/38		73,000		97,244
Valero Energy Corp.		3.400	%	09/15/26		100,000		97,834
								492,593
Finance Companies — 0.2%
American Express Credit Corp.		1.700	%	10/30/19		100,000		99,466
Insurance — 1.6%
Jackson National Life Global Funding (c)		2.100	%	10/25/21		50,000		49,032
Lincoln National Corp.		3.625	%	12/12/26		100,000		100,428
Met Life Global Funding I (c)		1.350	%	09/14/18		150,000		149,452
New York Life Global Funding (c)		2.350	%	07/14/26		50,000		47,849
New York Life Global Holdings (c)		2.900	%	01/17/24		100,000		100,928
Pricoa Global Funding I (c)		1.450	%	09/13/19		150,000		148,031
Principal Life Global Funding II (b)(c)		2.375	%	11/21/21		100,000		99,082
								694,802
REITS — 1.1%
Alexandria Real Estate Equities, Inc. (b)		3.950	%	01/15/28		100,000		101,700
Boston Properties LP		2.750	%	10/01/26		50,000		47,214
CubeSmart LP		3.125	%	09/01/26		50,000		47,516
ERP Operating LP		2.850	%	11/01/26		100,000		96,166
Realty Income Corp.		3.000	%	01/15/27		100,000		94,721
Spirit Realty LP		4.450	%	09/15/26		100,000		95,033
								482,350
Technology — 1.0%
Apple, Inc. (b)		2.300	%	05/11/22		75,000		74,854
Apple, Inc.		3.000	%	06/20/27		100,000		99,509
Microsoft Corp. (b)		3.950	%	08/08/56		200,000		200,377
Qualcomm, Inc. (b)		2.100	%	05/20/20		50,000		50,227
								424,967
Transportation — 0.7%
Continental Airlines Pass-Through Trust, Series 2012-1, Class B		6.250	%	10/11/21		44,594		47,158
CSX Corp.		4.250	%	11/01/66		100,000		98,754
Southwest Airlines Co.		3.000	%	11/15/26		100,000		96,999

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 31

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
June 30, 2017 (Unaudited)

	Coupon			Maturity	Shares/ Par Value		Fair Value
Corporate Credit — 20.3% continued
Transportation — 0.7% continued
U.S. Airways Pass-Through Trust, Series 2011-1, Class A		7.125	%	04/22/25	$	49,495	$	57,078
								299,989
Total Corporate Credit							$	8,606,709
Government Related — 2.0%
Government Guaranteed — 1.2%
Tunisian Republic		1.416	%	08/05/21		500,000		489,223
Government Owned, No Guarantee — 0.8%
Comisión Federal de Electricidad (c)		4.750	%	02/23/27		200,000		205,750
Tennessee Valley Authority		4.625	%	09/15/60		125,000		151,298
								357,048
Total Government Related							$	846,271
Securitized — 56.7%
ABS-Other — 5.9%
Gold Key Resorts LLC, Series 2014-A, Class A (c)		3.220	%	03/17/31		49,799		49,948
GoodGreen Trust, Series 2017-1A, Class A (c)		3.740	%	10/15/52		148,928		150,635
Green Tree Agency Advance Funding Trust, Series 2016-T1, Class AT1 (c)		2.380	%	10/15/48		154,000		153,362
Hero Funding Trust, Series 2016-3A, Class A1 (c)		3.080	%	09/20/42		142,133		144,132
Hero Funding Trust, Series 2016-3B, Class B (c)		5.240	%	09/20/42		86,979		87,545
Hero Funding Trust, Series 2016-1R, Class A1 (c)		4.500	%	09/21/42		85,794		86,062
Hero Funding Trust, Series 2016-4A, Class A1 (c)		3.570	%	09/20/47		188,289		191,308
Hero Funding Trust, Series 2016-4B, Class B (c)		4.990	%	09/20/47		96,192		97,034
Kabbage Funding LLC, Series 2017-1, Class A (c)		4.571	%	03/15/22		100,000		102,295
Kabbage Funding LLC, Series 2017-1, Class B (c)		5.794	%	03/15/22		100,000		101,626
LEAF II Receivables Funding LLC, Series 2017-1, Class E1 (c)		4.470	%	07/15/22		100,000		99,572
Nationstar HECM Loan Trust, Series 2015-2A, Class M1 (c)		4.114	%	11/25/25		158,000		158,051
Nationstar HECM Loan Trust, Series 2016-3A, Class A (c)		2.012	%	08/25/26		120,706		121,963
Nationstar HECM Loan Trust, Series 2016-3A, Class M1 (c)		3.147	%	08/25/26		100,000		100,097
New Residential Advance Receivables Trust, Series 2016-T4, Class DT4 (c)		4.386	%	12/15/50		200,000		203,284
Ocwen Master Advance Receivables Trust, Series 2015-T3, Class AT3 (c)		3.211	%	11/15/47		100,000		99,764
Ocwen Master Advance Receivables Trust, Series 2016-T1, Class AT1 (c)		2.520	%	08/17/48		100,000		99,541
Ocwen Master Advance Receivables Trust, Series 2016-T1, Class DT1 (c)		4.246	%	08/17/48		100,000		98,604
OnDeck Asset Securitization Trust, Series 2016-1A, Class A (c)		4.210	%	05/17/20		150,000		150,263

32 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
June 30, 2017 (Unaudited)

	Coupon			Maturity	Shares/ Par Value		Fair Value
Securitized — 56.7% continued
ABS-Other — 5.9% continued
Renew Financial LLC, Series 2017-1A, Class B (c)		5.750	%	09/20/52	$	100,000	$	99,998
SPS Servicer Advance Receivables Trust, Series 2016-T2, Class CT2 (c)		3.590	%	11/15/49		100,000		98,421
								2,493,505
Agency CMBS — 4.8%
FNMA, Pool FN AE0834 (a)(c)		3.976	%	01/01/21		59,245		62,678
FNMA, Series 2015-M3, Class A2		2.722	%	10/25/24		200,000		200,640
FNMA, Pool FN AM8674 (c)		2.810	%	04/01/25		200,000		201,784
FNMA, Pool FN AM8846 (c)		2.680	%	05/01/25		386,077		390,071
FNMA, Pool FN AN0262 (c)		2.810	%	11/01/25		487,571		492,077
FNMA, Pool FN AN2213 (a)(c)		2.810	%	07/01/26		700,000		703,517
								2,050,767
Agency MBS CMO — 18.6%
FHLMC, Series 3994, Class EI		3.000	%	02/15/22		1,185,221		51,398
FHLMC, Series 3874, Class KI		4.500	%	08/15/25		685,091		43,950
FHLMC, Series 2646, Class ZH		5.000	%	07/15/33		100,124		106,698
FHLMC, Series 2814, Class PH		6.000	%	06/15/34		78,524		89,127
FHLMC, Series 3607, Class AO		0.000	%	04/15/36		183,631		160,354
FHLMC, Series 3199, Class OC		0.000	%	08/15/36		175,342		159,614
FHLMC, Series 3318, Class AO		0.000	%	05/15/37		14,178		13,036
FHLMC, Series 379, Class 1		0.000	%	05/25/37		141,831		123,701
FHLMC, Series 3607, Class OP		0.000	%	07/15/37		167,088		142,424
FHLMC, Series 4119, Class LB		1.750	%	06/15/39		84,221		82,400
FHLMC, Series 3605, Class PB		4.500	%	11/15/39		100,000		109,531
FHLMC, Series 3617, Class PC		4.500	%	12/15/39		109,000		120,089
FNMA, Series 1994-4, Class ZC		6.500	%	01/25/24		75,019		82,661
FNMA, Series 2012-17, Class BC		3.500	%	03/25/27		1,000,000		1,046,586
FNMA, Series 2002-86, Class PG		6.000	%	12/25/32		146,385		166,350
FNMA, Series 348, Class 11		6.000	%	01/25/34		205,528		46,350
FNMA, Series 2004-17, Class BA		6.000	%	04/25/34		204,117		253,861
FNMA, Series 390, Class 32		6.500	%	12/25/34		325,999		69,227
FNMA, Series 2005-3, Class CG		5.500	%	02/25/35		211,000		244,124
FNMA, Series 2005-68, Class PG		5.500	%	08/25/35		94,523		104,563
FNMA, Series 2007-39, Class NB		4.250	%	05/25/37		231,495		247,627
FNMA, Series 2010-2, Class LC		5.000	%	02/25/40		200,000		224,955
FNMA, Series 2010-44, Class CS (a)		5.333	%	05/25/40		234,104		32,160
FNMA, Series 2011-14, Class PI		5.000	%	06/25/40		403,382		52,017
FNMA, Series 2010-71, Class HJ		5.500	%	07/25/40		82,393		92,258
FNMA, Series 2011-14, Class PB		5.000	%	03/25/41		570,000		648,615
FNMA, Series 2011-57, Class PD		4.000	%	07/25/41		321,407		343,455
FNMA, Series 411, Class A3		3.000	%	08/25/42		125,331		125,577
FNMA, Series 2013-35, Class LP		3.000	%	01/25/43		176,000		176,541
FNMA, Series 2013-35, Class CV		3.000	%	02/25/43		350,000		344,921
FNMA, Series 2013-104, Class CY		5.000	%	10/25/43		100,000		114,609
GNMA, Series 2004-49, Class MZ		6.000	%	06/20/34		285,218		356,969

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 33

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
June 30, 2017 (Unaudited)

	Coupon			Maturity	Shares/ Par Value		Fair Value
Securitized — 56.7% continued
Agency MBS CMO — 18.6% continued
GNMA, Series 2005-13, Class BG		5.000	%	02/20/35	$	170,000	$	192,644
GNMA, Series 2015-123, Class VB		3.500	%	09/20/35		100,000		104,564
GNMA, Series 2008-40, Class SA (a)		5.230	%	05/16/38		119,655		20,393
GNMA, Series 2009-2, Class PA		5.000	%	12/20/38		148,501		159,124
GNMA, Series 2010-105, Class B		5.000	%	08/20/40		300,000		332,772
GNMA, Series 2011-93, Class WB		4.000	%	03/20/41		148,189		148,604
GNMA, Series 2013-37, Class F (a)		1.482	%	03/20/43		88,912		88,214
GNMA, Series 2015-179, Class ZB		2.500	%	02/20/45		51,177		43,489
GNMA, Series BC-H066, Class DI (a)		3.344	%	05/31/64		1,771,055		83,573
GNMA, Series 2014-H14, Class FA (a)		1.492	%	07/20/64		178,583		178,266
GNMA, Series 2014-H15, Class FA (a)		1.492	%	07/20/64		121,668		121,432
GNMA, Series 2016-H11, Class FD (a)		2.201	%	05/20/66		333,253		336,523
Vendee Mortgage Trust, Series 1995-3, Class 1Z		7.250	%	09/15/25		85,935		97,654
								7,883,000
Agency MBS Passthrough — 1.3%
FHLMC, Pool FG G06085		6.500	%	09/01/38		176,318		196,639
FNMA, Pool FN AT7120		3.500	%	06/01/33		338,557		352,175
								548,814
Auto Loan — 6.9%
California Republic Auto Receivables Trust, Series 2015-4, Class C (c)		4.230	%	09/15/22		100,000		101,936
CarFinance Capital LLC, Series 2014-2A, Class A (c)		1.440	%	11/16/20		68,342		68,273
CPS Auto Trust, Series 2015-B, Class A (c)		1.650	%	11/15/19		30,530		30,544
CPS Auto Trust, Series 2016-C, Class A (c)		1.620	%	01/15/20		53,333		53,294
CPS Auto Trust, Series 2016-C, Class C (c)		3.270	%	06/15/22		100,000		100,841
CPS Auto Trust, Series 2017-B, Class D (c)		3.950	%	03/15/23		100,000		100,012
Drive Auto Receivables Trust, Series 2017-BA, Class D (c)		3.720	%	10/17/22		100,000		100,623
Drive Auto Receivables Trust, Series 2017-1, Class D		3.840	%	03/15/23		250,000		251,009
DT Auto Owner Trust, Series 2016-2A, Class A (c)		1.730	%	08/15/19		40,602		40,603
DT Auto Owner Trust, Series 2017-2A, Class D (c)		3.890	%	01/17/23		100,000		100,643
Ford Credit Auto Owner Trust, Series 2016-1, Class A (c)		2.310	%	08/15/27		300,000		301,572
FourSight Capital Automobile Receivables Trust, Series 2017-1, Class D (c)		5.280	%	08/15/24		100,000		100,164
GLS Auto Receivables Trust, Series 2017-1A, Class A1 (c)		1.550	%	06/15/18		500,000		500,031

34 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
June 30, 2017 (Unaudited)

	Coupon			Maturity	Shares/ Par Value		Fair Value
Securitized — 56.7% continued
Auto Loan — 6.9% continued
GLS Auto Receivables Trust, Series 2016-1A, Class C (c)		6.900	%	10/15/21	$	100,000	$	103,221
Hertz Fleet Lease Funding LP, Series 2017-1, Class E (c)		5.800	%	04/10/31		100,000		99,731
Honor Automobile Trust Securitization, Series 2016-1A, Class A (c)		2.940	%	11/15/19		60,226		60,433
Honor Automobile Trust Securitization, Series 2016-1A, Class B (c)		5.760	%	04/15/21		100,000		103,161
Navistar Financial Dealer Master Trust, Series 2016-1, Class B (a)(c)		2.966	%	09/27/21		100,000		100,214
OSCAR US Funding Trust, Series 2014-1A, Class A4 (c)		2.550	%	12/15/21		340,000		338,089
Prestige Auto Receivables Trust, Series 2015-1, Class D (c)		3.050	%	04/15/21		100,000		100,510
Santander Drive Auto Receivables Trust, Series 2016-2, Class A2A		1.380	%	07/15/19		44,894		44,887
Santander Drive Auto Receivables Trust, Series 2017-2, Class D		3.490	%	07/17/23		150,000		150,031
								2,949,822
Consumer — 4.9%
Arcadia Receivables Credit Trust, Series 2017-1, Class A (c)		3.250	%	06/15/23		74,554		74,758
Avant Loans Funding Trust, Series 2016-C, Class A (c)		2.960	%	09/16/19		11,174		11,179
Avant Loans Funding Trust, Series 2015-A, Class A (c)		4.000	%	08/16/21		12,231		12,239
Avant Loans Funding Trust, Series 2017-A, Class B (c)		3.650	%	09/15/22		150,000		150,884
Citi Held for Asset Issuance, Series 2015-PM2, Class B (c)		4.000	%	03/15/22		83,369		84,112
LendingClub Issuance Trust, Series 2016-NP1, Class B (c)		6.500	%	06/15/22		250,000		257,390
Lendmark Funding Trust, Series 2017-1A, Class B (c)		3.770	%	01/22/24		100,000		99,996
Lendmark Funding Trust, Series 2017-1A, Class C (c)		5.410	%	01/22/24		150,000		149,961
Lendmark Funding Trust, Series 2016-2A, Class C (c)		6.640	%	04/21/25		100,000		98,418
Mariner Finance Issuance Trust, Series 2017-AA, Class B (c)		4.740	%	02/20/29		100,000		101,172
MarketPlace Loan Trust, Series 2015-AV2, Class A (c)		4.000	%	10/15/21		62,945		63,091
Marlette Funding Trust, Series 2016-1A, Class A (c)		3.060	%	01/17/23		44,905		45,107
Marlette Funding Trust, Series 2017-1A, Class B (c)		4.114	%	03/15/24		100,000		101,829
Marlette Funding Trust, Series 2017-2A, Class B (c)		3.190	%	07/15/24		100,000		99,992

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 35

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
June 30, 2017 (Unaudited)

	Coupon			Maturity	Shares/ Par Value		Fair Value
Securitized — 56.7% continued
Consumer — 4.9% continued
Marlette Funding Trust, Series 2017-2A, Class C (c)		4.580	%	07/15/24	$	100,000	$	99,994
Purchasing Power Funding, Series 2015-A, Class A2 (c)		4.750	%	12/15/19		290,000		290,997
SoFi Consumer Loan Program Trust, Series 2016-2A, Class A (c)		3.090	%	10/27/25		65,207		65,749
Upstart Securitization Trust, Series 2017-1, Class B (c)		3.802	%	06/20/24		150,000		149,955
Verizon Owner Trust, Series 2016-1A, Class A (c)		1.420	%	01/20/21		100,000		99,505
								2,056,328
Equipment — 1.0%
Axis Equipment Finance Receivables Trust, Series 2016-1A, Class A (c)		2.210	%	11/20/21		71,818		71,521
BCC Funding Corp., Series 2015-1, Class A2 (c)		2.224	%	10/20/20		113,910		113,794
California Funding II Ltd., Series 2013-1A, Class A (c)		3.350	%	03/27/28		57,500		56,264
Global SC Finance SRL, Series 2014-1A, Class A2 (c)		3.090	%	07/17/29		70,833		69,760
SCF Equipment Trust LLC, Series 2017-1A, Class A (c)		3.770	%	01/20/23		87,608		88,468
United Airlines Pass-Through Trust, Series 2007-1, Class A		6.636	%	07/02/22		40,448		43,886
								443,693
Non Agency CMBS — 10.1%
American Homes 4 Rent, Series 2014-SFR2, Class D (c)		5.149	%	10/17/36		500,000		536,863
American Homes 4 Rent, Series 2014-SFR2, Class D (c)		3.678	%	12/17/36		143,276		149,190
American Homes 4 Rent, Series 2015-SFR1, Class A (c)		3.467	%	04/17/52		123,935		127,821
AMSR Trust, Series 2016-SFR1, Class A (a)(c)		2.609	%	11/17/33		100,000		100,625
B2R Mortgage Trust, Series 2015-2, Class A (c)		3.336	%	11/15/48		94,981		96,146
Barclays Commercial Mortgage Securities, Series 2016-ETC, Class A (c)		2.937	%	08/14/36		100,000		97,754
Colony American Finance Ltd., Series 2016-1, Class A (c)		2.544	%	06/15/48		200,594		199,389
Colony American Finance Ltd., Series 2016-2, Class B (c)		3.141	%	11/15/48		150,000		146,382
Commercial Mortgage Trust, Series 2014-TWC, Class B (a)(c)		2.632	%	02/13/32		100,000		100,343
Cosmopolitan Hotel Trust, Series 2016-CSM0, Class D (a)(c)		4.659	%	11/15/33		100,000		101,247
FCRE LLC, Series 2016-1A, Class D (a)(c)		7.063	%	05/21/36		100,000		100,716
FHLMC, Series 2012-K21, Class C (a)(c)		4.070	%	07/25/22		450,000		458,289
FirstKey Lending Trust, Series 2015-SFR1, Class A (c)		2.553	%	03/09/47		92,718		92,693

36 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
June 30, 2017 (Unaudited)

	Coupon			Maturity	Shares/ Par Value		Fair Value
Securitized — 56.7% continued
Non Agency CMBS — 10.1% continued
FREMF Mortgage Trust, Series 2016-K723, Class B		3.582	%	11/25/23	$	150,000	$	147,906
FREMF Mortgage Trust, Series 2016-K57, Class C (a)(c)		4.052	%	08/25/49		220,000		200,866
FREMF Mortgage Trust, Series 2016-K59, Class C (c)		3.575	%	11/25/49		100,000		88,571
Home Partners of America Trust, Series 2017-1, Class A (a)(c)		1.901	%	07/17/34		170,000		169,538
Park Avenue Trust, Series 2017-245P, Class A (c)		3.508	%	06/05/37		150,000		153,974
Prime Finance Partners III, Series 2015-2, Class A (a)(c)		2.621	%	07/14/34		88,697		88,689
Prime Finance Partners III, Series 2017-3, Class C (a)(c)		3.671	%	01/14/35		100,000		100,561
Progress Residential Trust, Series 2015-SFR2, Class A (c)		2.740	%	06/12/32		227,801		228,959
Progress Residential Trust, Series 2015-SFR3, Class A (c)		3.067	%	11/12/32		214,141		217,317
Progress Residential Trust, Series 2015-SFR3, Class D (c)		4.673	%	11/12/32		100,000		103,527
Progress Residential Trust, Series 2016-SFR1, Class A (a)(c)		2.494	%	09/17/33		99,552		101,240
RAIT Trust, Series 2016-FL6, Class B (a)(c)		3.639	%	11/13/31		100,000		100,233
Resource Capital Corp. Ltd, Series 2017-CRE5, Class B (a)(c)		0.000	%	07/15/34		100,000		100,000
The Bancorp Commercial Mortgage Trust, Series 2016-CRE1, Class D (a)(c)		7.195	%	11/15/33		100,000		100,018
Tricon American Homes, Series 2016-SFR1, Class C (c)		3.487	%	11/17/33		100,000		99,510
								4,308,367
Non-Agency MBS CMO — 0.9%
Mill City Mortgage Trust, Series 2016-1, Class M1 (c)		3.150	%	04/25/57		150,000		146,748
Pretium Mortgage Credit Partners, Series 2016-NPL6, Class A1 (c)		3.500	%	10/27/31		87,683		87,670
Structured Asset Securities Corp., Series 2003-37A, Class 2A (a)		3.016	%	12/25/33		24,868		24,833
WaMu Mortgage Pass-Through Certificate, Series 2003-AR11, Class A6 (a)		2.846	%	10/25/33		29,221		29,499
Wells Fargo Mortgage Backed Securities, Series 2003-H, Class A1 (a)		3.027	%	09/25/33		83,617		84,764
								373,514
Student Loan — 2.3%
Earnest Student Loan Program LLC, Series 2016-C, Class A2 (c)		2.680	%	07/25/35		173,792		173,930
Social Professional Loan Program, Series 2015-B, Class A2 (c)		2.510	%	09/27/32		179,902		180,109
Social Professional Loan Program, Series 2016-C, Class A2B (c)		2.360	%	12/27/32		260,000		257,997

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 37

Diamond Hill Core Bond Fund
Schedule of Investments (Continued)
June 30, 2017 (Unaudited)

	Coupon			Maturity	Shares/ Par Value		Fair Value
Securitized — 56.7% continued
Student Loan — 2.3% continued
Social Professional Loan Program, Series 2017-B, Class CFX (c)		4.440	%	05/25/40	$	150,000	$	151,339
Social Professional Loan Program, Series 2016-E, Class C (c)		4.430	%	10/25/41		200,000		201,409
								964,784
Total Securitized							$	24,072,594
Treasury — 17.5%
U.S. Treasury Notes		0.750	%	03/31/18		200,000		199,250
U.S. Treasury Notes		1.125	%	01/15/19		150,000		149,461
U.S. Treasury STRIPS (c)		0.000	%	08/15/19		200,000		194,005
U.S. Treasury Notes		1.375	%	04/30/21		300,000		296,168
U.S. Treasury Notes		1.625	%	11/15/22		1,000,000		983,203
U.S. Treasury Notes		2.000	%	11/30/22		1,000,000		1,002,070
U.S. Treasury Bonds		1.500	%	03/31/23		500,000		486,231
U.S. Treasury Notes		1.625	%	04/30/23		100,000		97,824
U.S. Treasury Notes		2.500	%	05/15/24		250,000		256,074
U.S. Treasury Notes		2.250	%	11/15/24		250,000		251,328
U.S. Treasury STRIPS		0.000	%	02/15/25		200,000		168,327
U.S. Treasury Notes		2.000	%	08/15/25		950,000		933,671
U.S. Treasury Notes		2.250	%	11/15/25		100,000		100,012
U.S. Treasury Notes		1.625	%	02/15/26		300,000		285,082
U.S. Treasury STRIPS		0.000	%	05/15/28		1,000,000		763,098
U.S. Treasury STRIPS		0.000	%	11/15/31		150,000		102,785
U.S. Treasury STRIPS		0.000	%	02/15/33		300,000		197,541
U.S. Treasury Bonds		4.250	%	05/15/39		100,000		125,418
U.S. Treasury Bonds		3.875	%	08/15/40		300,000		357,387
U.S. Treasury Notes		4.250	%	11/15/40		100,000		125,785
U.S. Treasury STRIPS		0.000	%	08/15/41		150,000		74,334
U.S. Treasury Bonds		2.750	%	11/15/42		300,000		296,836
Total Treasury							$	7,445,890

	Shares		Fair Value
Registered Investment Companies — 9.7%
State Street Institutional Liquid Reserves Fund, Premier Class, 1.10%(a)		1,410,312	$	1,410,453
State Street Navigator Securities Lending Prime Portfolio, 1.18%(a)		2,715,055		2,715,055
Total Registered Investment Companies			$	4,125,508
Total Investment Securities — 106.2%
(Cost $45,500,460)(d)			$	45,096,972
Net Other Assets (Liabilities) — (6.2)%				(2,626,289	)
Net Assets — 100.0%			$	42,470,683

^(a) Variable rate security. The rate shown is the effective interest rate as of June 30, 2017.

^(b) All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2017, was $2,655,656.

^(c) Restricted securities not registered under the Securities Act of 1933. The total fair value of these securities as of June 30, 2017 was $16,083,146, representing 37.9% of net assets.

^(d) Represents cost for financial reporting purposes.

See accompanying Notes to Financial Statements.

38 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Corporate Credit Fund
Schedule of Investments
June 30, 2017 (Unaudited)

	Coupon			Maturity	Shares/ Par Value		Fair Value
Collateralized Debt Obligations — 0.2%
Alesco Preferred Funding IV, Class PNN *				03/23/35	$	621,631	$	228,704
Alesco Preferred Funding Ltd., Class PPNE *				03/23/35		336,608		118,049
Fort Sheridan ABS CDO Ltd., Series 05-1A, Class PPN2 *				11/05/41		611,948		262,134
Taberna Preferred Funding Ltd., Class PPN2 *				07/05/35		1,175,564		431,961
Total Collateralized Debt Obligations							$	1,040,848
Corporate Bonds — 86.7%
Banking — 6.5%
Popular, Inc.		7.000	%	07/01/19		28,446,000		29,868,300
Synovus Financial Corp.		7.875	%	02/15/19		9,277,000		10,063,690
								39,931,990
Basic Industry — 8.9%
American Greetings Corp. (a)		7.875	%	02/15/25		25,000		27,031
Cemex Finance LLC (a)		9.375	%	10/12/22		2,650,000		2,815,625
Century Communities, Inc.		6.875	%	05/15/22		23,999,000		25,198,949
Century Communities, Inc. (a)		5.875	%	07/15/25		9,710,000		9,661,450
GCP Applied Technologies, Inc. (a)		9.500	%	02/01/23		2,912,000		3,305,120
Mueller Industries, Inc.		6.000	%	03/01/27		2,961,000		3,035,025
NCI Building Systems, Inc. (a)		8.250	%	01/15/23		6,226,000		6,731,863
Summit Materials LLC		8.500	%	04/15/22		3,405,000		3,847,650
								54,622,713
Consumer Goods — 1.9%
KAR Auction Services, Inc. (a)		5.125	%	06/01/25		3,565,000		3,631,844
Pilgrim's Pride Corp. (a)		5.750	%	03/15/25		8,051,000		8,071,127
								11,702,971
Energy — 3.4%
Diamondback Energy, Inc. (a)		4.750	%	11/01/24		7,188,000		7,152,060
Diamondback Energy, Inc. (a)		5.375	%	05/31/25		1,968,000		1,997,520
Energen Corp.		4.625	%	09/01/21		3,096,000		3,134,700
Energen Corp.		7.125	%	02/15/28		5,926,000		6,370,450
Parsley Energy LLC (a)		5.375	%	01/15/25		1,875,000		1,889,063
								20,543,793
Financial Services — 17.9%
Alliance Data Systems Co. (a)		6.375	%	04/01/20		1,050,000		1,063,125
Alliance Data Systems Corp. (a)		5.375	%	08/01/22		32,012,000		32,332,119
Credit Acceptance Corp.		7.375	%	03/15/23		7,711,000		8,019,440
Nationstar Mortgage/Capital Corp.		9.625	%	05/01/19		15,629,000		16,058,797
Nationstar Mortgage/Capital Corp.		7.875	%	10/01/20		14,886,000		15,295,364
Nationstar Mortgage/Capital Corp.		6.500	%	07/01/21		3,418,000		3,494,905
Nationstar Mortgage/Capital Corp.		6.500	%	06/01/22		6,185,000		6,355,088
Provident Funding Associates LP (a)		6.375	%	06/15/25		4,625,000		4,740,625
Quicken Loans, Inc. (a)		5.750	%	05/01/25		9,897,000		10,218,653
Springleaf Finance Corp. (b)		7.750	%	10/01/21		7,082,000		7,922,988
USIS Merger Sub, Inc. (a)		6.875	%	05/01/25		3,749,000		3,814,608
								109,315,712
Health Care — 3.6%
BioScrip, Inc.		8.875	%	02/15/21		1,830,000		1,656,150
Davita Healthcare Partners, Inc.		5.125	%	07/15/24		2,271,000		2,305,065
Greatbatch Ltd. (a)		9.125	%	11/01/23		3,696,000		3,936,240
HCA Holdings, Inc.		7.750	%	07/15/36		2,953,000		3,336,890
Horizon Pharma plc (a)		8.750	%	11/01/24		4,875,000		4,948,125
Kindred Healthcare, Inc. (b)		8.750	%	01/15/23		5,501,000		5,782,926
								21,965,396

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 39

Diamond Hill Corporate Credit Fund
Schedule of Investments (Continued)
June 30, 2017 (Unaudited)

	Coupon			Maturity	Shares/ Par Value		Fair Value
Corporate Bonds — 86.7% continued
Insurance — 3.2%
KIRS Midco 3 plc (a)		8.625	%	07/15/23	$	2,750,000	$	2,784,375
MGIC Investment Corp.		5.750	%	08/15/23		12,603,000		13,579,733
Radian Group, Inc.		5.250	%	06/15/20		2,846,000		3,023,875
								19,387,983
Leisure — 4.1%
CCA Club Operations Holdings LLC (a)		8.250	%	12/15/23		2,425,000		2,643,250
CCM Merger, Inc. (a)		6.000	%	03/15/22		8,936,000		9,159,400
Rivers Pittsburgh Borrower LP (a)		6.125	%	08/15/21		8,416,000		8,542,240
Station Casinos LLC		7.500	%	03/01/21		4,636,000		4,821,440
								25,166,330
Media — 8.7%
Altice SA (a)		7.750	%	05/15/22		4,685,000		4,971,956
Altice SA (a)(b)		7.625	%	02/15/25		3,000,000		3,300,000
Cimpress NV (a)		7.000	%	04/01/22		28,319,000		29,310,165
Liberty Interactive LLC		8.250	%	02/01/30		9,457,000		10,166,275
Quad Graphics, Inc. (b)		7.000	%	05/01/22		3,074,000		3,130,346
Radio One, Inc. (a)		7.375	%	04/15/22		2,615,000		2,706,525
								53,585,267
Real Estate — 4.2%
Crescent Communities, Inc. (a)		8.875	%	10/15/21		12,956,000		13,603,800
iStar Financial, Inc.		4.875	%	07/01/18		3,875,000		3,899,335
iStar Financial, Inc.		5.000	%	07/01/19		2,350,000		2,373,500
Kennedy Wilson, Inc.		5.875	%	04/01/24		5,667,000		5,844,094
								25,720,729
Retail — 4.2%
DriveTime Automotive Group (a)		8.000	%	06/01/21		2,275,000		2,280,688
FirstCash, Inc. (b)		5.375	%	06/01/24		900,000		939,375
L Brands, Inc.		6.875	%	11/01/35		3,964,000		3,825,260
Men's Warehouse, Inc. (The) (b)		7.000	%	07/01/22		1,570,000		1,373,750
Signet UK Finance plc (b)		4.700	%	06/15/24		6,550,000		6,375,632
Tesco plc (a)		6.150	%	11/15/37		10,482,000		10,979,277
								25,773,982
Services — 3.1%
Ashtead Capital, Inc. (a)		6.500	%	07/15/22		4,162,000		4,312,873
Avis Budget Group (a)(b)		6.375	%	04/01/24		5,090,000		5,077,274
Diebold, Inc.		8.500	%	04/15/24		3,796,000		4,247,155
Laureate Education, Inc. (a)		8.250	%	05/01/25		2,115,000		2,268,338
Ritchie Bros. Auctioneers, Inc. (a)		5.375	%	01/15/25		2,840,000		2,960,700
								18,866,340
Technology & Electronics — 6.8%
Bankrate, Inc. (a)		6.125	%	08/15/18		13,365,000		13,423,472
Conduent, Inc. (a)		10.500	%	12/15/24		18,995,000		22,129,174
Match Group, Inc.		6.375	%	06/01/24		101,000		109,838
Wex, Inc. (a)		4.750	%	02/01/23		6,228,000		6,259,140
								41,921,624
Telecommunications — 7.1%
Cincinnati Bell, Inc. (a)		7.000	%	07/15/24		12,266,000		12,820,423
Cogent Communications, Inc. (a)		5.625	%	04/15/21		19,180,000		19,707,449
Cogent Communications, Inc. (a)		5.375	%	03/01/22		2,957,000		3,104,850
Frontier Communications Corp. (b)		11.000	%	09/15/25		8,397,000		7,788,218
								43,420,940
Transportation — 3.1%
Air Canada Pass-Through Trust, Series 2013-1 (a)		5.375	%	11/15/22		2,266,445		2,382,600
American Airlines Pass-Through Trust, Series 2013-1 (a)		5.625	%	01/15/21		12,330,483		12,910,016
U.S. Airways Pass-Through Trust, Series 2012-1		8.000	%	04/01/21		2,205,803		2,379,620
U.S. Airways Pass-Through Trust, Series 2013-1		5.375	%	05/15/23		1,007,504		1,060,398
								18,732,634
Total Corporate Bonds							$	530,658,404

40 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Corporate Credit Fund
Schedule of Investments (Continued)
June 30, 2017 (Unaudited)

	Shares		Fair Value
Registered Investment Companies — 16.4%
Diamond Hill Short Duration Total Return Fund, Class Y (c)		2,137,592	$	21,632,435
State Street Institutional Liquid Reserves Fund, Premier Class, 1.10%(d)		51,682,141		51,687,309
State Street Navigator Securities Lending Prime Portfolio, 1.18%(d)		27,089,968		27,089,968
Total Registered Investment Companies			$	100,409,712
Total Investment Securities — 103.3%
(Cost $623,812,027)(e)			$	632,108,964
Net Other Assets (Liabilities) — (3.3)%				(19,979,842	)
Net Assets — 100.0%			$	612,129,122

^(a) Restricted securities not registered under the Securities Act of 1933. The total fair value of these securities as of June 30, 2017 was $303,974,183, representing 49.7% of net assets.

^(b) All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2017 was $26,514,109.

^(c) Affiliated fund.

^(d) Variable rate security. The rate shown is the effective interest rate as of June 30, 2017.

* Restricted and illiquid securities not registered under the Securities Act of 1933 and valued at fair value by the Fair Value 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 IV, Class PNN	December-04	$	621,631	$	228,704		0.04	%
Alesco Preferred Funding Ltd., Class PPNE	March-05		336,608		118,049		0.02	%
Fort Sheridan ABS CDO Ltd., Series 05-1A, Class PPN2	March-05		513,572		262,134		0.04	%
Taberna Preferred Funding Ltd., Class PPN2	March-05		1,041,663		431,961		0.10	%
		$	2,513,474	$	1,040,848		0.20	%

plc – Public Limited Company

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 41

Diamond Hill High Yield Fund
Schedule of Investments
June 30, 2017 (Unaudited)

	Coupon			Maturity	Shares / Par Value		Fair Value
Corporate Bonds — 93.1%
ABS-Other — 0.7%
Kabbage Funding LLC, Series 2017-1 (a)		8.000	%	03/15/22	$	200,000	$	202,241
Auto Loan — 1.3%
CPS Auto Trust, Series 2017-A (a)		7.070	%	04/15/24		250,000		259,814
Honor Automobile Trust Securitization, Series 2016-1A (a)		8.050	%	11/15/22		100,000		99,681
								359,495
Banking — 4.3%
Popular, Inc.		7.000	%	07/01/19		1,119,000		1,174,950
Basic Industry — 5.7%
Century Communities, Inc.		6.875	%	05/15/22		325,000		341,250
Century Communities, Inc. (a)		5.875	%	07/15/25		750,000		746,250
Mueller Industries, Inc. (b)		6.000	%	03/01/27		250,000		256,250
NCI Building Systems, Inc. (a)		8.250	%	01/15/23		200,000		216,250
								1,560,000
Consumer — 2.5%
Arcadia Receivables Credit Trust, Series 2017-1 (a)		5.500	%	06/15/23		223,000		226,387
Avant Loans Funding Trust, Series 2015-A (a)		7.750	%	08/16/21		203,215		209,946
Consumer Loan Underlying Bond Credit Trust, Series 2017-NP1 (a)		5.130	%	04/17/23		100,000		100,148
Upstart Securitization Trust, Series 2017-1 (a)		6.350	%	06/20/24		150,000		149,749
								686,230
Consumer Goods — 3.1%
FirstCash, Inc. (b)		5.375	%	06/01/24		100,000		104,375
KAR Auction Services, Inc. (a)		5.125	%	06/01/25		225,000		229,219
Pilgrim's Pride Corp. (a)		5.750	%	03/15/25		500,000		501,250
								834,844
Energy — 9.3%
Diamondback Energy, Inc. (a)		5.375	%	05/31/25		700,000		710,500
Energen Corp.		7.125	%	02/15/28		1,565,000		1,682,375
Parsley Energy LLC (a)		5.375	%	01/15/25		125,000		125,938
								2,518,813
Equipment — 1.0%
Ascentium Equipment Receivables Trust, Series 2016-2A (a)		6.790	%	10/10/24		100,000		105,542
LEAF II Receivables Funding LLC, Series 2017-1 (a)		5.990	%	09/15/24		150,000		152,844
								258,386
Financial Services — 19.5%
Alliance Data Systems Corp. (a)(b)		5.375	%	08/01/22		1,075,000		1,085,750
Credit Acceptance Corp.		7.375	%	03/15/23		500,000		520,000
Nationstar Mortgage/Capital Corp.		9.625	%	05/01/19		610,000		626,775
Nationstar Mortgage/Capital Corp.		7.875	%	10/01/20		425,000		436,688
Nationstar Mortgage/Capital Corp.		6.500	%	06/01/22		1,120,000		1,150,800
Provident Funding Associates LP (a)		6.375	%	06/15/25		375,000		384,375
Quicken Loans, Inc. (a)		5.750	%	05/01/25		475,000		490,438
Springleaf Finance Corp.		8.250	%	10/01/23		250,000		279,375
USIS Merger Sub, Inc. (a)		6.875	%	05/01/25		300,000		305,250
								5,279,451
Health Care — 6.3%
BioScrip, Inc.		8.875	%	02/15/21		225,000		203,625
Greatbatch Ltd. (a)		9.125	%	11/01/23		300,000		319,500
HCA Holdings, Inc.		7.750	%	07/15/36		575,000		649,750

42 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill High Yield Fund
Schedule of Investments (Continued)
June 30, 2017 (Unaudited)

	Coupon			Maturity	Shares / Par Value		Fair Value
Corporate Bonds — 93.1% continued
Health Care — 6.3% continued
Horizon Pharma plc (a)(b)		8.750	%	11/01/24	$	225,000	$	228,375
Kindred Healthcare, Inc. (b)		8.750	%	01/15/23		300,000		315,375
								1,716,625
Insurance — 0.4%
KIRS Midco 3 plc (a)		8.625	%	07/15/23		100,000		101,250
Leisure — 3.5%
CCA Club Operations Holdings LLC (a)		8.250	%	12/15/23		200,000		218,000
CCM Merger, Inc. (a)		6.000	%	03/15/22		240,000		246,000
Rivers Pittsburgh Borrower LP (a)		6.125	%	08/15/21		475,000		482,125
								946,125
Media — 4.6%
Cimpress NV (a)		7.000	%	04/01/22		1,200,000		1,242,000
Non Agency CMBS — 0.9%
Fort CRE LLC, Series 2016-1A (a)		9.213	%	05/21/36		250,000		255,742
Non-Agency MBS CMO — 0.4%
CAM Mortgage Trust, Series 2016-2 (a)		5.000	%	06/15/57		100,000		98,607
Real Estate — 3.6%
Crescent Communities, Inc. (a)		8.875	%	10/15/21		775,000		813,750
Kennedy Wilson, Inc.		5.875	%	04/01/24		150,000		154,687
								968,437
Retail — 6.2%
DriveTime Automotive Group (a)		8.000	%	06/01/21		150,000		150,375
L Brands, Inc. (b)		6.875	%	11/01/35		225,000		217,125
Liberty Interactive LLC		8.250	%	02/01/30		550,000		591,250
Men's Warehouse, Inc. (The) (b)		7.000	%	07/01/22		175,000		153,125
Signet UK Finance plc (b)		4.700	%	06/15/24		200,000		194,676
Tesco plc (a)		6.150	%	11/15/37		350,000		366,604
								1,673,155
Services — 2.8%
Ashtead Capital, Inc. (a)		6.500	%	07/15/22		200,000		207,250
Avis Budget Group (a)		6.375	%	04/01/24		300,000		299,250
Laureate Education, Inc. (a)		8.250	%	05/01/25		175,000		187,688
Ritchie Bros. Auctioneers, Inc. (a)(b)		5.375	%	01/15/25		75,000		78,187
								772,375
Technology & Electronics — 8.9%
Bankrate, Inc. (a)		6.125	%	08/15/18		1,025,000		1,029,484
Conduent, Inc. (a)		10.500	%	12/15/24		850,000		990,250
Wex, Inc. (a)		4.750	%	02/01/23		400,000		402,000
								2,421,734
Telecommunications — 4.5%
Cincinnati Bell, Inc. (a)		7.000	%	07/15/24		400,000		418,080
Cogent Communications, Inc. (a)		5.625	%	04/15/21		350,000		359,625
Frontier Communications Corp.		11.000	%	09/15/25		475,000		440,562
								1,218,267
Transportation — 3.6%
American Airlines Pass-Through Trust, Series 2013-1 (a)		5.625	%	01/15/21		605,227		633,672
Continental Airlines Pass-Through Trust, Series 2012-1		6.250	%	10/11/21		42,810		45,272
Continental Airlines Pass-Through Trust, Series 2012-2		5.500	%	04/29/22		142,893		149,323
U.S. Airways Pass-Through Trust, Series 2012-2		6.750	%	12/03/22		84,544		92,703
U.S. Airways Pass-Through Trust, Series 2013-1		5.375	%	05/15/23		41,979		44,183
								965,153
Total Corporate Bonds							$	25,253,880

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 43

Diamond Hill High Yield Fund
Schedule of Investments (Continued)
June 30, 2017 (Unaudited)

	Shares		Fair Value
Registered Investment Companies — 12.9%
State Street Institutional Liquid Reserves Fund, Premier Class, 1.10%(c)		1,466,451	$	1,466,598
State Street Navigator Securities Lending Prime Portfolio, 1.18%(c)		2,031,923		2,031,923
Total Registered Investment Companies			$	3,498,521
Total Investment Securities — 106.0%
(Cost $27,929,245)(d)			$	28,752,401
Net Other Assets (Liabilities) — (6.0)%				(1,616,781	)
Net Assets — 100.0%			$	27,135,620

^(a) Restricted securities not registered under the Securities Act of 1933 are as follows. The total fair value of these securities as of June 30, 2017 was $15,429,386, representing 56.9% of net assets.

^(b) All or a portion of the security is on loan. The total fair value of the securities on loan as of June 30, 2017 was $1,991,498

^(c) Variable rate security. The rate shown is the effective interest rate as of June 30, 2017.

^(d) Represents cost for financial reporting purposes.

plc – Public Limited Company

See accompanying Notes to Financial Statements.

44 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Funds
Tabular Presentation of Schedules of Investments
June 30, 2017 (Unaudited)

Diamond Hill Small Cap Fund
Sector Allocation	% of Net Assets
Financials	23.1%
Industrials	18.2%
Consumer Discretionary	12.4%
Information Technology	8.6%
Real Estate	7.6%
Health Care	6.6%
Consumer Staples	4.9%
Energy	2.3%
Utilities	2.2%
Telecommunication Services	0.7%
Cash and Cash Equivalents	23.2%
Other
Net Other Assets (Liabilities)	-9.8%
	100%
Russell 2000 Index Sector Allocation	% of Index
Financials	18.2%
Industrials	14.4%
Consumer Discretionary	12.5%
Information Technology	17.0%
Real Estate	7.5%
Health Care	15.2%
Consumer Staples	2.7%
Energy	3.6%
Utilities	3.7%
Telecommunication Services	0.8%
Materials	4.4%
	100%

Diamond Hill Small-Mid Cap Fund
Sector Allocation	% of Net Assets
Financials	24.2%
Consumer Discretionary	18.2%
Industrials	9.7%
Consumer Staples	9.5%
Information Technology	8.0%
Real Estate	6.7%
Health Care	6.2%
Materials	2.8%
Utilities	2.6%
Energy	2.5%
Cash and Cash Equivalents	17.0%
Other
Net Other Assets (Liabilities)	-7.4%
	100%
Russell 2500 Index Sector Allocation	% of Index
Financials	16.4%
Consumer Discretionary	12.9%
Industrials	15.5%
Consumer Staples	2.9%
Information Technology	15.9%
Real Estate	9.8%
Health Care	12.0%
Materials	5.9%
Utilities	3.7%
Energy	4.3%
Telecommunication Services	0.7%
	100%

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 45

Diamond Hill Funds
Tabular Presentation of Schedules of Investments (Continued)
June 30, 2017 (Unaudited)

Diamond Hill Mid Cap Fund
Sector Allocation	% of Net Assets
Financials	27.1%
Consumer Discretionary	19.1%
Industrials	10.0%
Consumer Staples	9.1%
Information Technology	6.8%
Health Care	5.4%
Real Estate	4.4%
Materials	3.5%
Energy	2.6%
Utilities	1.7%
Cash and Cash Equivalents	23.2%
Other
Net Other Assets (Liabilities)	-12.9%
	100%
Russell Midcap Index Sector Allocation	% of Index
Financials	14.3%
Consumer Discretionary	14.6%
Industrials	13.6%
Consumer Staples	4.4%
Information Technology	14.8%
Health Care	10.5%
Real Estate	9.9%
Materials	5.7%
Energy	5.5%
Utilities	6.2%
Telecommunication Services	0.5%
	100%

Diamond Hill Large Cap Fund
Sector Allocation	% of Net Assets
Financials	28.0%
Consumer Discretionary	19.4%
Health Care	13.6%
Information Technology	12.5%
Consumer Staples	10.7%
Industrials	8.4%
Materials	3.7%
Energy	1.8%
Cash and Cash Equivalents	4.3%
Other
Net Other Assets (Liabilities)	-2.4%
	100%
Russell 1000 Index Sector Allocation	% of Index
Financials	14.7%
Consumer Discretionary	13.1%
Health Care	13.9%
Information Technology	21.8%
Consumer Staples	8.0%
Industrials	10.5%
Materials	3.3%
Energy	5.8%
Real Estate	3.8%
Utilities	3.1%
Telecommunication Services	2.0%
	100%

46 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Funds
Tabular Presentation of Schedules of Investments (Continued)
June 30, 2017 (Unaudited)

Diamond Hill All Cap Select Fund
Sector Allocation	% of Net Assets
Financials	26.8%
Consumer Discretionary	26.8%
Industrials	17.2%
Consumer Staples	6.2%
Health Care	5.8%
Information Technology	5.5%
Materials	2.7%
Real Estate	1.5%
Telecommunication Services	1.1%
Energy	1.0%
Cash and Cash Equivalents	12.4%
Other
Net Other Assets (Liabilities)	-7.0%
	100%
Russell 3000 Index Sector Allocation	% of Index
Financials	14.9%
Consumer Discretionary	13.1%
Industrials	10.8%
Consumer Staples	7.6%
Health Care	14.0%
Information Technology	21.4%
Materials	3.4%
Real Estate	4.1%
Telecommunication Services	1.9%
Energy	5.6%
Utilities	3.2%
	100%

Diamond Hill Long-Short Fund
Long Portfolio Sector Allocation	% of Net Assets
Financials	25.3%
Consumer Discretionary	17.5%
Information Technology	13.2%
Industrials	9.8%
Health Care	8.5%
Consumer Staples	4.2%
Energy	1.8%
Materials	1.7%
Cash and Cash Equivalents	44.0%
Short Portfolio Sector Allocation	% of Net Assets
Consumer Discretionary	-9.2%
Financials	-4.4%
Information Technology	-4.0%
Industrials	-3.5%
Health Care	-2.7%
Consumer Staples	-1.6%
Utilities	-1.5%
Energy	-0.8%
Telecommunication Services	-0.5%
Other
Segregated Cash With Brokers	28.2%
Net Other Assets (Liabilities)	-26.0%
	100%
Russell 1000 Index Sector Allocation	% of Index
Financials	14.7%
Consumer Discretionary	13.1%
Information Technology	21.8%
Industrials	10.5%
Health Care	13.9%
Consumer Staples	8.0%
Energy	5.8%
Materials	3.3%
Real Estate	3.8%
Utilities	3.1%
Telecommunication Services	2.0%
	100%

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 47

Diamond Hill Funds
Tabular Presentation of Schedules of Investments (Continued)
June 30, 2017 (Unaudited)

Diamond Hill Research Opportunities Fund
Long Portfolio Sector Allocation	% of Net Assets
Consumer Discretionary	18.7%
Financials	18.2%
Industrials	17.7%
Health Care	14.2%
Information Technology	14.0%
Telecommunication Services	5.7%
Materials	2.9%
Consumer Staples	2.8%
Energy	2.2%
Real Estate	1.8%
Cash and Cash Equivalents	28.8%
Short Portfolio Sector Allocation	% of Net Assets
Information Technology	-6.2%
Consumer Discretionary	-5.5%
Health Care	-3.4%
Financials	-3.3%
Industrials	-2.1%
Energy	-0.8%
Consumer Staples	-0.8%
Utilities	-0.6%
Telecommunication Services	-0.5%
Other
Segregated Cash With Brokers	23.6%
Net Other Assets (Liabilities)	-27.4%
	100%
Russell 3000 Index Sector Allocation	% of Index
Consumer Discretionary	13.1%
Financials	14.9%
Industrials	10.8%
Health Care	14.0%
Information Technology	21.4%
Telecommunication Services	1.9%
Materials	3.4%
Consumer Staples	7.6%
Energy	5.6%
Real Estate	4.1%
Utilities	3.2%
	100%

Diamond Hill Financial Long-Short Fund
Long Portfolio Sector Allocation	% of Net Assets
Banks, Thrifts & Mortgage Finance	36.3%
Insurance	19.1%
REITs & Real Estate Management	16.2%
Consumer Financial Services	8.2%
Capital Markets	7.5%
Diversified Financial Services	4.9%
IT Services	0.8%
Cash and Cash Equivalents	34.8%
Short Portfolio Sector Allocation	% of Net Assets
Insurance	-7.1%
Banks, Thrifts & Mortgage Finance	-5.0%
IT Services	-1.1%
REITs & Real Estate Management	-1.0%
Other
Segregated Cash With Brokers	15.1%
Net Other Assets (Liabilities)	-28.7%
	100%
Russell 3000 Financials Index Sector Allocation	% of Index
Banks, Thrifts & Mortgage Finance	32.3%
Insurance	14.0%
REITs & Real Estate Management	20.3%
Consumer Financial Services	3.5%
Capital Markets	13.0%
Diversified Financial Services	6.5%
IT Services	10.4%
	100%

48 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Funds
Tabular Presentation of Schedules of Investments (Continued)
June 30, 2017 (Unaudited)

Diamond Hill Short Duration Total Return Fund
Sector Allocation	% of Net Assets
Securitized	80.7%
Corporate Credit	13.9%
Treasury	3.9%
Cash and Cash Equivalents	3.4%
Other
Net Other Assets (Liabilities)	-1.9%
	100%
Bloomberg Barclays U.S. 1-3 Yr. Gov./Credit Index Sector Allocation	% of Index
Treasury	61.8%
Agency	5.7%
Corporate Credit	23.6%
Non-Corporate Credit	8.9%
	100%

Diamond Hill Core Bond Fund
Sector Allocation	% of Net Assets
Securitized	56.7%
Corporate Credit	20.3%
Treasury	17.5%
Government Related	2.0%
Cash and Cash Equivalents	9.7%
Other
Net Other Assets (Liabilities)	-6.2%
	100%
Bloomberg Barclays U.S. Aggregate Index Sector Allocation	% of Index
Treasury	37.0%
Agency	1.9%
Agency RMBS/CMBS	29.9%
Corporate Credit	25.3%
Non-Corporate Credit	5.3%
Asset-Backed Securities	0.6%
	100%

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 49

Diamond Hill Funds
Tabular Presentation of Schedules of Investments (Continued)
June 30, 2017 (Unaudited)

Diamond Hill Corporate Credit Fund
Sector Allocation	% of Net Assets
Financial Services	17.9%
Basic Industry	8.9%
Media	8.7%
Telecommunications	7.1%
Technology & Electronics	6.8%
Banking	6.5%
Real Estate	4.2%
Retail	4.2%
Leisure	4.1%
Health Care	3.6%
Energy	3.4%
Insurance	3.2%
Transportation	3.1%
Services	3.1%
Consumer Goods	1.9%
Cash and Cash Equivalents	16.4%
Other
Collateralized Debt Obligations	0.2%
Net Other Assets (Liabilities)	-3.3%
	100%
BofA ML U.S. Corporate & High Yield Index Sector Allocation	% of Index
Financial Services	2.6%
Basic Industry	5.6%
Media	4.8%
Telecommunications	5.6%
Technology & Electronics	7.3%
Banking	19.0%
Real Estate	2.0%
Retail	3.7%
Leisure	1.0%
Health Care	9.1%
Energy	11.8%
Insurance	3.7%
Transportation	2.0%
Services	1.8%
Consumer Goods	5.6%
Utilities	6.9%
Capital Goods	4.9%
Automotive	2.6%
	100%

Diamond Hill High Yield Fund
Sector Allocation	% of Net Assets
Financial Services	19.5%
Energy	9.3%
Technology & Electronics	8.9%
Health Care	6.3%
Retail	6.2%
Basic Industry	5.7%
Media	4.6%
Telecommunications	4.5%
Banking	4.3%
Transportation	3.6%
Real Estate	3.6%
Leisure	3.5%
Consumer Goods	3.1%
Services	2.8%
Consumer	2.5%
Auto Loan	1.3%
Equipment	1.0%
Non Agency CMBS	0.9%
ABS - Other	0.7%
Insurance	0.4%
Non Agency MBS CMO	0.4%
Cash and Cash Equivalents	12.9%
Other
Net Other Assets (Liabilities)	-6.0%
	100%
BofA ML U.S. High Yield Index Sector Allocation	% of Index
Financial Services	3.8%
Energy	13.5%
Technology & Electronics	6.1%
Health Care	10.0%
Retail	4.9%
Basic Industry	12.2%
Media	11.4%
Telecommunications	10.2%
Banking	3.4%
Transportation	0.9%
Real Estate	0.6%
Leisure	4.5%
Consumer Goods	2.6%
Services	5.1%
Capital Goods	5.5%
Utilities	2.4%
Automotive	2.1%
Insurance	0.8%
	100%

50 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

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DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 51

Diamond Hill Funds
Statements of Assets & Liabilities
June 30, 2017 (Unaudited)

	Small Cap Fund			Small-Mid Cap Fund			Mid Cap Fund
Assets
Total investment securities, at cost	$	1,282,392,591		$	2,205,684,434		$	112,910,095
Investment securities, at fair value — including $145,141,378, $179,463,153, $15,027,800, $123,313,935, $10,296,900, $1,258,876,663, $17,139,054, $8,924,787, $197,042,397 and $2,632,117 of securities loaned	$	1,708,126,510		$	2,576,239,974		$	120,964,227
Investments in affiliated funds, at fair value (cost $63,496,955, $41,244,846, $821,188, $—, $2,771,055, $71,682,034, $—, $— and $—)		63,773,657			41,431,095			825,457
Cash deposits with custodian for securities sold short		—			—			—
Receivable for fund shares issued		1,001,415			1,479,772			1,038,761
Receivable for dividends and interest		1,845,111			3,310,992			118,395
Receivable for investments sold		804,007			—			300,304
Prepaid expenses and other assets		17,470			10,700			237
Total Assets		1,775,568,170			2,622,472,533			123,247,381
Liabilities
Securities sold short, at fair value (proceeds $—, $—, $—, $—, $—, $1,120,667,554, $12,151,568, $3,620,859, $— and $—)		—			—			—
Payable for securities purchased		—			—			—
Payable for expenses and fees on securities sold short		—			—			—
Payable for fund shares redeemed		6,041,040			1,070,680			75,054
Payable for return of collateral received		154,812,326			181,718,896			15,206,032
Payable to Investment Advisor		1,059,127			1,501,224			51,434
Payable to Administrator		237,661			283,843			13,887
Accrued distribution and service fees		119,601			85,800			4,982
Payable to accountant and custodian		—			—			—
Total Liabilities		162,269,755			184,660,443			15,351,389
Net Assets	$	1,613,298,415		$	2,437,812,090		$	107,895,992
Components of Net Assets
Paid-in Capital	$	1,148,567,713		$	2,007,202,101		$	98,275,387
Accumulated net investment income (loss)		(1,148,955	)		4,365,727			247,103
Accumulated net realized gains (losses) from investment transactions		39,869,036			55,502,473			1,315,101
Net unrealized appreciation (depreciation) on investments		426,010,621			370,741,789			8,058,401
Net unrealized appreciation on translation of foreign currencies		—			—			—
Net Assets	$	1,613,298,415		$	2,437,812,090		$	107,895,992
Net Assets
Class A Shares	$	387,877,537		$	255,292,939		$	24,637,669
Class C Shares	$	48,606,171		$	40,196,038		$	—
Class I Shares	$	956,784,071		$	1,066,017,512		$	52,257,969
Class Y Shares	$	220,030,636		$	1,076,305,601		$	31,000,354
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)
Class A Shares		11,093,155			11,651,584			1,883,188
Class C Shares		1,583,602			1,990,431			—
Class I Shares		26,948,182			48,123,005			3,978,124
Class Y Shares		6,191,236			48,473,829			2,353,911
Net Asset Value, offering (except Class A Shares) and redemption price per share:
Class A Shares	$	34.97		$	21.91		$	13.08
Class C Shares(A)	$	30.69		$	20.19		$	—
Class I Shares	$	35.50		$	22.15		$	13.14
Class Y Shares	$	35.54		$	22.20		$	13.17
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	$	36.81		$	23.06		$	13.77

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

See accompanying Notes to Financial Statements.

52 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Large Cap Fund			All Cap Select Fund			Long-Short Fund			Research Opportunities Fund			Financial Long-Short Fund			Short Duration Total Return Fund			Core Bond Fund
$	3,965,848,956		$	126,387,882		$	4,882,332,371		$	70,642,634		$	36,603,907		$	275,675,492		$	45,500,460
$	5,136,431,596		$	151,339,101		$	5,914,753,191		$	79,072,588		$	40,966,548		$	276,631,557		$	45,096,972
	—			2,784,585			72,069,381			—			—			—			—
	—			—			1,354,214,338			14,725,818			4,846,354			—			—
	7,822,219			160,241			7,311,500			123,360			44,084			200,000			19,280
	3,823,108			60,341			3,153,180			91,874			55,883			907,166			184,420
	13,405,053			180,153			47,338,447			574,773			—			113,740			—
	6			890			19,084			48			1,864			—			—
	5,161,481,982			154,525,311			7,398,859,121			94,588,461			45,914,733			277,852,463			45,300,672
	—			—			1,337,839,379			14,452,410			4,568,230			—			—
	13,868,578			—			20,544,218			371,979			139,890			2,027,136			100,000
	—			—			1,452,730			12,902			4,980			—			—
	3,731,948			69,084			3,919,816			13,225			1,775			20,556			—
	126,248,972			10,227,127			1,279,914,573			17,412,687			9,117,249			4,168,428			2,715,055
	1,952,668			84,086			3,491,838			47,834			24,602			77,009			10,456
	695,467			21,063			699,353			8,152			5,081			20,730			3,891
	340,292			12,019			187,578			3,913			3,220			334			587
	—			—			13,270			—			—			—			—
	146,837,925			10,413,379			2,648,062,755			32,323,102			13,865,027			6,314,193			2,829,989
$	5,014,644,057		$	144,111,932		$	4,750,796,366		$	62,265,359		$	32,049,706		$	271,538,270		$	42,470,683
$	3,687,709,452		$	129,230,966		$	3,822,192,756		$	55,251,160		$	30,177,322		$	270,265,591		$	42,962,506
	26,267,433			392,747			(2,334,433	)		(52,164	)		187,629			(139,983	)		(29,218	)
	130,084,532			(10,476,530	)		115,301,701			937,220			(1,730,515	)		456,597			(59,117	)
	1,170,582,640			24,964,749			815,636,342			6,129,112			3,415,270			956,065			(403,488	)
	—			—			—			31			—			—			—
$	5,014,644,057		$	144,111,932		$	4,750,796,366		$	62,265,359		$	32,049,706		$	271,538,270		$	42,470,683
$	1,241,535,631		$	13,544,327		$	398,371,482		$	7,562,375		$	8,534,498		$	1,901,970		$	2,894,177
$	105,536,780		$	11,037,056		$	125,605,221		$	2,978,305		$	1,855,780		$	—		$	—
$	2,901,402,248		$	99,881,852		$	3,972,678,097		$	35,373,546		$	21,659,428		$	35,249,640		$	9,260,558
$	766,169,398		$	19,648,697		$	254,141,566		$	16,351,133		$	—		$	234,386,660		$	30,315,948
	49,208,277			954,733			15,463,962			326,757			368,401			188,047			293,710
	4,413,235			821,145			5,417,010			134,600			87,324			—			—
	114,164,565			7,000,845			150,822,367			1,513,783			932,205			3,485,046			939,600
	30,118,180			1,374,560			9,606,628			698,808			—			23,168,714			3,075,634
$	25.23		$	14.19		$	25.76		$	23.14		$	23.17		$	10.11		$	9.85
$	23.91		$	13.44		$	23.19		$	22.13		$	21.25		$	—		$	—
$	25.41		$	14.27		$	26.34		$	23.37		$	23.23		$	10.11		$	9.86
$	25.44		$	14.29		$	26.45		$	23.40		$	—		$	10.12		$	9.86
	5.00	%		5.00	%		5.00	%		5.00	%		5.00	%		2.25	%		3.50	%
$	26.56		$	14.94		$	27.12		$	24.36		$	24.39		$	10.34		$	10.21

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 53

Diamond Hill Funds
Statements of Assets & Liabilities (Continued)
June 30, 2017 (Unaudited)

	Corporate Credit Fund			High Yield Fund
Assets
Total investment securities, at cost	$	602,337,012		$	27,929,245
Investment securities, at fair value — including $26,002,173 and $15,429,386 of securities loaned	$	610,476,529		$	28,752,401
Investments in affiliated funds, at fair value (cost $21,475,015 and $—)		21,632,435			—
Receivable for fund shares issued		781,859			9,000
Receivable for dividends and interest		9,863,708			436,030
Prepaid expenses and other assets		6,211			—
Total Assets		642,760,742			29,197,431
Liabilities
Cash overdraft		1,780,443			—
Payable for securities purchased		1,020,083			15,978
Payable for fund shares redeemed		382,763			—
Payable for return of collateral received		27,089,968			2,031,923
Payable to Investment Advisor		225,421			11,014
Payable to Administrator		92,791			2,839
Accrued distribution and service fees		40,149			57
Payable to accountant and custodian		2			—
Total Liabilities		30,631,620			2,061,811
Net Assets	$	612,129,122		$	27,135,620
Components of Net Assets
Paid-in Capital	$	603,633,918		$	25,681,790
Accumulated net investment income		270,736			3,249
Accumulated net realized gains (losses) from investment transactions		(72,469	)		627,425
Net unrealized appreciation on investments		8,296,937			823,156
Net Assets	$	612,129,122		$	27,135,620
Net Assets
Class A Shares	$	82,539,769		$	278,535
Class C Shares	$	27,884,197		$	—
Class I Shares	$	478,034,395		$	12,945,843
Class Y Shares	$	23,670,761		$	13,911,242
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)
Class A Shares		7,248,245			25,276
Class C Shares		2,457,083			—
Class I Shares		42,120,800			1,174,624
Class Y Shares		2,086,682			1,262,547
Net Asset Value, offering (except Class A Shares) and redemption price per share:
Class A Shares	$	11.39		$	11.02
Class C Shares(A)	$	11.35		$	—
Class I Shares	$	11.35		$	11.02
Class Y Shares	$	11.34		$	11.02
Maximum Offering Price
Maximum sales charge — Class A Shares		3.50	%		3.50	%
(100%/(100%-maximum sales charge) of net asset value	$	11.80		$	11.42

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

See accompanying Notes to Financial Statements.

54 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Funds
Statements of Operations
For the six months ended June 30, 2017 (Unaudited)

	Small Cap Fund			Small-Mid Cap Fund			Mid Cap Fund			Large Cap Fund		All Cap Select Fund
Investment Income
Dividends	$	9,972,115		$	15,713,547		$	563,178		$	43,258,963	$	897,710
Income distributions from affiliated investments		1,042,305			677,142			13,491			—		45,511
Securities lending income		170,542			264,095			17,727			249,451		5,506
Foreign taxes withheld		(50,138	)		(53,611	)		(1,019	)		—		—
Total Investment Income		11,134,824			16,601,173			593,377			43,508,414		948,727
Expenses
Investment advisory fees		6,786,336			8,929,057			254,504			11,064,635		504,402
Administration fees		1,602,121			1,801,859			70,804			4,131,955		132,977
Distribution fees — Class A		512,734			337,278			22,866			1,531,647		18,463
Distribution and service fees — Class C		256,722			209,820			—			505,756		59,355
Other fees		2,017			7,090			1,419			10,170		1,515
Total Expenses		9,159,930			11,285,104			349,593			17,244,163		716,712
Investment advisory fees waived by Advisor		(109,241	)		(70,970	)		(1,414	)		—		(4,770	)
Net Expenses		9,050,689			11,214,134			348,179			17,244,163		711,942
Net Investment Income		2,084,135			5,387,039			245,198			26,264,251		236,785
Realized and Unrealized Gains (Losses) on Investments
Net realized gains on security sales		63,334,579			51,330,327			1,194,905			106,315,080		5,815,192
Net change in unrealized appreciation (depreciation) on investments		(35,311,151	)		27,109,143			1,299,038			265,211,949		2,854,296
Net Realized and Unrealized Gains on Investments		28,023,428			78,439,470			2,493,943			371,527,029		8,669,488
Change in Net Assets from Operations	$	30,107,563		$	83,826,509		$	2,739,141		$	397,791,280	$	8,906,273

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 55

Diamond Hill Funds
Statements of Operations
For the six months ended June 30, 2017 (Unaudited)

	Long-Short Fund			Research Opportunities Fund			Financial Long-Short Fund			Short Duration Total Return Fund		Core Bond Fund
Investment Income
Dividends	$	34,211,281		$	314,321		$	295,124		$	49,929	$	9,376
Income distributions from affiliated investments		1,177,889			—			—			—		—
Interest		—			60,963			—			4,390,997		559,625
Securities lending income		619,620			13,409			7,997			6,388		2,637
Foreign taxes withheld		(91,790	)		(3,146	)		(1,077	)		—		—
Total Investment Income		35,917,000			385,547			302,044			4,447,314		571,638
Expenses
Investment advisory fees		20,719,423			271,570			151,932			422,240		60,921
Administration fees		4,357,029			47,896			32,865			118,099		24,042
Distribution fees — Class A		540,610			7,999			11,482			677		3,135
Distribution and service fees — Class C		691,164			13,496			8,827			—		—
Other fees		—			5,137			1,270			1,626		987
Dividend expense on securities sold short		12,065,644			103,120			80,071			—		—
Brokerage expenses on securities sold short		—			—			—			—		—
Total Expenses		38,373,870			449,218			286,447			542,642		89,085
Investment advisory fees waived by Advisor		(122,437	)		—			—			—		—
Net Expenses		38,251,433			449,218			286,447			542,642		89,085
Net Investment Income (Loss)		(2,334,433	)		(63,671	)		15,597			3,904,672		482,553
Realized and Unrealized Gains (Losses) on Investments
Net realized gains (losses) on security sales		125,717,847			2,975,436			1,352,399			568,718		(27,658	)
Net realized losses on closed short positions		(43,736,627	)		(1,058,634	)		(76,272	)		—		—
Net realized losses on foreign currency transactions		—			(2,015	)		—			—		—
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		76,972,801			2,532,203			187,619			1,536,456		708,518
Net Realized and Unrealized Gains on Investments		158,954,021			4,446,990			1,463,746			2,105,174		680,860
Change in Net Assets from Operations	$	156,619,588		$	4,383,319		$	1,479,343		$	6,009,846	$	1,163,413

See accompanying Notes to Financial Statements.

56 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Funds
Statements of Operations
For the six months ended June 30, 2017 (Unaudited)

	Corporate Credit Fund			High Yield Fund
Investment Income
Dividends	$	227,910		$	6,796
Income distributions from affiliated investments		323,998			—
Interest		16,649,248			1,046,198
Securities lending income		102,845			8,304
Total Investment Income		17,304,001			1,061,298
Expenses
Investment advisory fees		1,298,791			76,103
Administration fees		559,025			23,451
Distribution fees — Class A		99,308			293
Distribution and service fees — Class C		144,074			—
Other fees		2,382			1,258
Total Expenses		2,103,580			101,105
Investment advisory fees waived by Advisor		(33,349	)		—
Net Expenses		2,070,231			101,105
Net Investment Income		15,233,770			960,193
Realized and Unrealized Gains on Investments
Net realized gains on security sales		1,005,522			626,471
Net change in unrealized appreciation (depreciation) on investments		12,189,593			441,047
Net Realized and Unrealized Gains on Investments		13,195,115			1,067,518
Change in Net Assets from Operations	$	28,428,885		$	2,027,711

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 57

Diamond Hill Funds
Statements of Changes in Net Assets

	Small Cap Fund						Small-Mid Cap Fund
	For the six months ended June 30, 2017 (Unaudited)			For the year ended December 31, 2016			For the six months ended June 30, 2017 (Unaudited)		For the year ended December 31, 2016
From Operations
Net investment income	$	2,084,135		$	3,592,807		$	5,387,039	$	6,968,028
Net realized gains (losses) on security sales		63,334,579			(8,065,426	)		51,330,327		31,870,243
Net change in unrealized appreciation (depreciation) on investments		(35,311,151	)		242,943,587			27,109,143		297,959,119
Change in Net Assets from Operations		30,107,563			238,470,968			83,826,509		336,797,390
Distributions to Shareholders
From net investment income:
Class A		—			—			—		(161,619	)
Class C		—			—			—		—
Class I		—			(2,294,721	)		—		(3,246,570	)
Class Y		—			(641,703	)		—		(3,756,813	)
From net realized gains on investments
Class A		—			(10,925,906	)		—		(4,780,960	)
Class C		—			(1,526,538	)		—		(769,671	)
Class I		—			(26,235,567	)		—		(16,486,738	)
Class Y		—			(5,327,247	)		—		(15,751,165	)
Change in Net Assets from Distributions to Shareholders		—			(46,951,682	)		—		(44,953,536	)
Change in net assets from capital transactions		(206,652,458	)		(56,335,642	)		45,351,966		718,023,706
Total Change in Net Assets		(176,544,895	)		135,183,644			129,178,475		1,009,867,560
Net Assets:
Beginning of period		1,789,843,310			1,654,659,666			2,308,633,615		1,298,766,055
End of period	$	1,613,298,415		$	1,789,843,310		$	2,437,812,090	$	2,308,633,615
Accumulated Net Investment Income (Loss)	$	(1,148,955	)	$	(3,233,090	)	$	4,365,727	$	(1,021,312	)

See accompanying Notes to Financial Statements.

58 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Funds
Statements of Changes in Net Assets

	Small Cap Fund						Small-Mid Cap Fund
	For the six months ended June 30, 2017 (Unaudited)			For the year ended December 31, 2016			For the six months ended June 30, 2017 (Unaudited)			For the year ended December 31, 2016
Capital Transactions
Class A
Proceeds from shares sold	$	22,256,156		$	82,726,159		$	20,142,488		$	137,436,730
Reinvested distributions		—			9,626,149			—			4,814,331
Payments for shares redeemed		(81,008,621	)		(194,313,737	)		(63,271,768	)		(54,770,817	)
Change in Net Assets from Class A Share Transactions		(58,752,465	)		(101,961,429	)		(43,129,280	)		87,480,244
Class C
Proceeds from shares sold		810,387			3,070,068			2,368,918			11,927,045
Reinvested distributions		—			1,437,120			—			685,334
Payments for shares redeemed		(7,531,340	)		(12,977,068	)		(6,330,100	)		(8,368,229	)
Change in Net Assets from Class C Share Transactions		(6,720,953	)		(8,469,880	)		(3,961,182	)		4,244,150
Class I
Proceeds from shares sold		123,032,216			305,649,831			163,124,481			493,904,960
Reinvested distributions		—			25,565,584			—			17,836,161
Payments for shares redeemed		(258,602,270	)		(250,813,602	)		(149,580,065	)		(126,982,487	)
Change in Net Assets from Class I Share Transactions		(135,570,054	)		80,401,813			13,544,416			384,758,634
Class Y
Proceeds from shares sold		42,891,782			38,612,554			166,457,124			352,897,660
Reinvested distributions		—			5,947,579			—			18,948,994
Payments for shares redeemed		(48,500,768	)		(70,866,279	)		(87,559,112	)		(130,305,976	)
Change in Net Assets from Class Y Share Transactions		(5,608,986	)		(26,306,146	)		78,898,012			241,540,678
Change in net assets from capital transactions:	$	(206,652,458	)	$	(56,335,642	)	$	45,351,966		$	718,023,706
Share Transactions:
Class A
Issued		640,853			2,657,309			929,592			7,708,176
Reinvested		—			279,180			—			226,878
Redeemed		(2,332,058	)		(6,105,481	)		(2,903,594	)		(2,844,030	)
Change in shares outstanding		(1,691,205	)		(3,168,992	)		(1,974,002	)		5,091,024
Class C
Issued		26,427			111,230			118,612			684,485
Reinvested		—			47,289			—			34,931
Redeemed		(246,758	)		(458,259	)		(315,986	)		(463,491	)
Change in shares outstanding		(220,331	)		(299,740	)		(197,374	)		255,925
Class I
Issued		3,489,898			9,588,524			7,452,795			25,767,686
Reinvested		—			729,929			—			830,989
Redeemed		(7,332,024	)		(7,733,812	)		(6,811,069	)		(6,573,142	)
Change in shares outstanding		(3,842,126	)		2,584,641			641,726			20,025,533
Class Y
Issued		1,206,698			1,195,701			7,571,864			18,030,889
Reinvested		—			169,596			—			880,672
Redeemed		(1,373,542	)		(2,090,065	)		(3,986,834	)		(6,655,846	)
Change in shares outstanding		(166,844	)		(724,768	)		3,585,030			12,255,715
Change in total shares outstanding		(5,920,506	)		(1,608,859	)		2,055,380			37,628,197

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 59

Diamond Hill Funds
Statements of Changes in Net Assets

	Mid Cap Fund					Large Cap Fund
	For the six months ended June 30, 2017 (Unaudited)		For the year ended December 31, 2016			For the six months ended June 30, 2017 (Unaudited)		For the year ended December 31, 2016
From Operations
Net investment income	$	245,198	$	212,456		$	26,264,251	$	48,653,773
Net realized gains on security sales		1,194,905		449,461			106,315,080		212,473,672
Net change in unrealized appreciation (depreciation) on investments		1,299,038		5,916,156			265,211,949		264,890,441
Change in Net Assets from Operations		2,739,141		6,578,073			397,791,280		526,017,886
Distributions to Shareholders
From net investment income:
Class A		—		(10,415	)		—		(12,062,582	)
Class C		—		—			—		(429,502	)
Class I		—		(111,394	)		—		(28,190,303	)
Class Y		—		(98,452	)		—		(9,297,263	)
From net realized gains on investments
Class A		—		(35,783	)		—		(58,242,648	)
Class C		—		—			—		(5,004,267	)
Class I		—		(120,917	)		—		(106,332,727	)
Class Y		—		(109,823	)		—		(32,620,990	)
Change in Net Assets from Distributions to Shareholders		—		(486,784	)		—		(252,180,282	)
Change in net assets from capital transactions		46,340,117		34,151,971			539,131,165		363,471,164
Total Change in Net Assets		49,079,258		40,243,260			936,922,445		637,308,768
Net Assets:
Beginning of period		58,816,734		18,573,474			4,077,721,612		3,440,412,844
End of period	$	107,895,992	$	58,816,734		$	5,014,644,057	$	4,077,721,612
Accumulated Net Investment Income	$	247,103	$	1,905		$	26,267,433	$	3,182

See accompanying Notes to Financial Statements.

60 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Funds
Statements of Changes in Net Assets

	Mid Cap Fund						Large Cap Fund
	For the six months ended June 30, 2017 (Unaudited)			For the year ended December 31, 2016			For the six months ended June 30, 2017 (Unaudited)			For the year ended December 31, 2016
Capital Transactions
Class A
Proceeds from shares sold	$	20,573,518		$	4,617,678		$	131,912,112		$	141,843,093
Reinvested distributions		—			46,198			—			68,923,795
Payments for shares redeemed		(3,605,213	)		(1,353,700	)		(158,306,491	)		(253,327,738	)
Change in Net Assets from Class A Share Transactions		16,968,305			3,310,176			(26,394,379	)		(42,560,850	)
Class C
Proceeds from shares sold		—			—			12,142,079			16,913,035
Reinvested distributions		—			—			—			5,175,794
Payments for shares redeemed		—			(78,724	)		(11,188,961	)		(16,772,131	)
Change in Net Assets from Class C Share Transactions		—			(78,724	)		953,118			5,316,698
Class I
Proceeds from shares sold		24,349,751			23,333,994			870,723,313			637,477,723
Reinvested distributions		—			203,333			—			118,085,012
Payments for shares redeemed		(1,524,022	)		(1,279,590	)		(339,548,112	)		(555,292,097	)
Change in Net Assets from Class I Share Transactions		22,825,729			22,257,737			531,175,201			200,270,638
Class Y
Proceeds from shares sold		6,770,214			9,057,474			113,006,328			265,700,272
Reinvested distributions		—			44,343			—			40,721,952
Payments for shares redeemed		(224,131	)		(439,035	)		(79,609,103	)		(105,977,546	)
Change in Net Assets from Class Y Share Transactions		6,546,083			8,662,782			33,397,225			200,444,678
Change in net assets from capital transactions:	$	46,340,117		$	34,151,971		$	539,131,165		$	363,471,164
Share Transactions:
Class A
Issued		1,574,438			413,781			5,454,697			6,452,067
Reinvested		—			3,658			—			2,933,532
Redeemed		(279,258	)		(117,091	)		(6,482,289	)		(11,485,212	)
Change in shares outstanding		1,295,180			300,348			(1,027,592	)		(2,099,613	)
Class C
Issued		—			—			523,467			801,500
Reinvested		—			—			—			232,338
Redeemed		—			(7,311	)		(481,887	)		(788,954	)
Change in shares outstanding		—			(7,311	)		41,580			244,884
Class I
Issued		1,874,827			2,000,164			35,009,952			28,962,246
Reinvested		—			16,048			—			4,990,123
Redeemed		(117,260	)		(106,440	)		(13,801,620	)		(24,655,187	)
Change in shares outstanding		1,757,567			1,909,772			21,208,332			9,297,182
Class Y
Issued		522,606			762,252			4,632,755			11,753,419
Reinvested		—			3,491			—			1,719,340
Redeemed		(17,199	)		(40,385	)		(3,244,019	)		(4,712,526	)
Change in shares outstanding		505,407			725,358			1,388,736			8,760,233
Change in total shares outstanding		3,558,154			2,928,167			21,611,056			16,202,686

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 61

Diamond Hill Funds
Statements of Changes in Net Assets

	All Cap Select Fund						Long-Short Fund
	For the six months ended June 30, 2017 (Unaudited)			For the year ended December 31, 2016			For the six months ended June 30, 2017 (Unaudited)			For the year ended December 31, 2016
From Operations
Net investment income (loss)	$	236,785		$	156,022		$	(2,334,433	)	$	(6,432,934	)
Net realized gains (losses) on security sales		5,815,192			(8,063,135	)		125,717,847			246,421,475
Net realized gains (losses) on closed short positions		—			—			(43,736,627	)		(38,448,173	)
Net change in unrealized appreciation (depreciation) on investments		2,854,296			20,640,227			76,972,801			224,056,947
Change in Net Assets from Operations		8,906,273			12,733,114			156,619,588			425,597,315
Distributions to Shareholders
From net investment income:
Class A		—			—			—			(10	)
Class I		—			(92,446	)		—			—
Class Y		—			(38,022	)		—			—
From net realized gains on investments
Class A		—			(190,538	)		—			(15,593,899	)
Class C		—			(162,678	)		—			(5,373,676	)
Class I		—			(1,160,985	)		—			(116,909,432	)
Class Y		—			(228,777	)		—			(7,433,997	)
Change in Net Assets from Distributions to Shareholders		—			(1,873,446	)		—			(145,311,014	)
Change in net assets from capital transactions		(3,675,171	)		(22,750,290	)		171,330,280			(270,142,790	)
Total Change in Net Assets		5,231,102			(11,890,622	)		327,949,868			10,143,511
Net Assets:
Beginning of period		138,880,830			150,771,452			4,422,846,498			4,412,702,987
End of period	$	144,111,932		$	138,880,830		$	4,750,796,366		$	4,422,846,498
Accumulated Net Investment Income (Loss)	$	392,747		$	155,962		$	(2,334,433	)	$	—

See accompanying Notes to Financial Statements.

62 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Funds
Statements of Changes in Net Assets

	All Cap Select Fund						Long-Short Fund
	For the six months ended June 30, 2017 (Unaudited)			For the year ended December 31, 2016			For the six months ended June 30, 2017 (Unaudited)			For the year ended December 31, 2016
Capital Transactions
Class A
Proceeds from shares sold	$	1,045,730		$	3,872,392		$	35,558,950		$	54,997,688
Reinvested distributions		—			178,187			—			14,062,511
Payments for shares redeemed		(3,371,365	)		(32,508,715	)		(112,000,897	)		(206,653,955	)
Change in Net Assets from Class A Share Transactions		(2,325,635	)		(28,458,136	)		(76,441,947	)		(137,593,756	)
Class C
Proceeds from shares sold		545,035			1,275,335			1,799,178			5,072,700
Reinvested distributions		—			129,734			—			4,579,503
Payments for shares redeemed		(2,460,750	)		(4,866,592	)		(25,753,236	)		(42,002,803	)
Change in Net Assets from Class C Share Transactions		(1,915,715	)		(3,461,523	)		(23,954,058	)		(32,350,600	)
Class I
Proceeds from shares sold		13,575,239			47,461,808			682,130,860			1,015,927,229
Reinvested distributions		—			1,214,313			—			89,893,554
Payments for shares redeemed		(12,979,961	)		(45,514,745	)		(428,544,075	)		(1,126,573,761	)
Change in Net Assets from Class I Share Transactions		595,278			3,161,376			253,586,785			(20,752,978	)
Class Y
Proceeds from shares sold		1,666,035			10,322,075			33,287,430			39,268,624
Reinvested distributions		—			261,984			—			3,706,643
Payments for shares redeemed		(1,695,134	)		(4,576,066	)		(15,147,930	)		(122,420,723	)
Change in Net Assets from Class Y Share Transactions		(29,099	)		6,007,993			18,139,500			(79,445,456	)
Change in net assets from capital transactions:	$	(3,675,171	)	$	(22,750,290	)	$	171,330,280		$	(270,142,790	)
Share Transactions:
Class A
Issued		75,301			331,520			1,390,831			2,327,321
Reinvested		—			13,297			—			561,377
Redeemed		(241,719	)		(2,754,485	)		(4,395,463	)		(8,785,523	)
Change in shares outstanding		(166,418	)		(2,409,668	)		(3,004,632	)		(5,896,825	)
Class C
Issued		41,205			110,096			78,066			238,048
Reinvested		—			10,175			—			202,275
Redeemed		(186,733	)		(421,158	)		(1,117,460	)		(1,944,220	)
Change in shares outstanding		(145,528	)		(300,887	)		(1,039,394	)		(1,503,897	)
Class I
Issued		971,523			4,078,226			26,108,767			42,181,173
Reinvested		—			90,159			—			3,515,585
Redeemed		(924,325	)		(3,786,713	)		(16,424,792	)		(46,897,707	)
Change in shares outstanding		47,198			381,672			9,683,975			(1,200,949	)
Class Y
Issued		118,489			869,935			1,268,893			1,602,705
Reinvested		—			19,413			—			144,396
Redeemed		(119,079	)		(376,896	)		(579,558	)		(5,037,950	)
Change in shares outstanding		(590	)		512,452			689,335			(3,290,849	)
Change in total shares outstanding		(265,338	)		(1,816,431	)		6,329,284			(11,892,520	)

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 63

Diamond Hill Funds
Statements of Changes in Net Assets

	Research Opportunities Fund						Financial Long-Short Fund
	For the six months ended June 30, 2017 (Unaudited)			For the year ended December 31, 2016			For the six months ended June 30, 2017 (Unaudited)			For the year ended December 31, 2016
From Operations
Net investment income (loss)	$	(63,671	)	$	(1,003	)	$	15,597		$	91,341
Net realized gains on security sales		2,975,436			1,719,569			1,352,399			2,938,910
Net realized losses on closed short positions		(1,058,634	)		(724,217	)		(76,272	)		(42,723	)
Net realized losses on foreign currency transactions		(2,015	)		(301	)		—			—
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		2,532,203			3,123,154			187,619			2,686,576
Change in Net Assets from Operations		4,383,319			4,117,202			1,479,343			5,674,104
Distributions to Shareholders
From net investment income:
Class A		—			—			—			—
Class I		—			—			—			—
Class Y		—			—			—			—
From net realized gains on investments
Class A		—			(30,845	)		—			—
Class C		—			(23,939	)		—			—
Class I		—			(200,584	)		—			—
Class Y		—			(123,757	)		—			—
Change in Net Assets from Distributions to Shareholders		—			(379,125	)		—			—
Change in net assets from capital transactions		6,390,310			(7,451,444	)		(1,822,190	)		(698,018	)
Total Change in Net Assets		10,773,629			(3,713,367	)		(342,847	)		4,976,086
Net Assets:
Beginning of period		51,491,730			55,205,097			32,392,553			27,416,467
End of period	$	62,265,359		$	51,491,730		$	32,049,706		$	32,392,553
Accumulated Net Investment Income (Loss)	$	(52,164	)	$	13,522		$	187,629		$	172,032

See accompanying Notes to Financial Statements.

64 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Funds
Statements of Changes in Net Assets

	Research Opportunities Fund						Financial Long-Short Fund
	For the six months ended June 30, 2017 (Unaudited)			For the year ended December 31, 2016			For the six months ended June 30, 2017 (Unaudited)			For the year ended December 31, 2016
Capital Transactions
Class A
Proceeds from shares sold	$	4,130,614		$	1,486,960		$	902,324		$	735,530
Reinvested distributions		—			30,298			—			—
Payments for shares redeemed		(1,176,684	)		(6,134,350	)		(2,930,576	)		(3,083,093	)
Change in Net Assets from Class A Share Transactions		2,953,930			(4,617,092	)		(2,028,252	)		(2,347,563	)
Class C
Proceeds from shares sold		871,552			337,050			115,324			26,637
Reinvested distributions		—			22,545			—			—
Payments for shares redeemed		(1,094,368	)		(2,675,528	)		(50,250	)		(416,121	)
Change in Net Assets from Class C Share Transactions		(222,816	)		(2,315,933	)		65,074			(389,484	)
Class I
Proceeds from shares sold		7,789,347			9,265,199			1,545,132			6,274,914
Reinvested distributions		—			199,412			—			—
Payments for shares redeemed		(2,391,059	)		(10,164,233	)		(1,404,144	)		(4,235,885	)
Change in Net Assets from Class I Share Transactions		5,398,288			(699,622	)		140,988			2,039,029
Class Y
Proceeds from shares sold		255,389			3,053,268			—			—
Reinvested distributions		—			43,120			—			—
Payments for shares redeemed		(1,994,481	)		(2,915,185	)		—			—
Change in Net Assets from Class Y Share Transactions		(1,739,092	)		181,203			—			—
Change in net assets from capital transactions:	$	6,390,310		$	(7,451,444	)	$	(1,822,190	)	$	(698,018	)
Share Transactions:
Class A
Issued		185,077			74,189			40,033			38,076
Reinvested		—			1,413			—			—
Redeemed		(52,482	)		(319,805	)		(131,284	)		(156,225	)
Change in shares outstanding		132,595			(244,203	)		(91,251	)		(118,149	)
Class C
Issued		40,659			17,469			5,570			1,459
Reinvested		—			1,095			—			—
Redeemed		(51,213	)		(140,871	)		(2,436	)		(24,053	)
Change in shares outstanding		(10,554	)		(122,307	)		3,134			(22,594	)
Class I
Issued		343,441			465,598			67,726			363,822
Reinvested		—			9,224			—			—
Redeemed		(106,097	)		(520,536	)		(62,347	)		(233,586	)
Change in shares outstanding		237,344			(45,714	)		5,379			130,236
Class Y
Issued		11,160			146,533			—			—
Reinvested		—			1,993			—			—
Redeemed		(86,919	)		(145,874	)		—			—
Change in shares outstanding		(75,759	)		2,652			—			—
Change in total shares outstanding		283,626			(409,572	)		(82,738	)		(10,507	)

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 65

Diamond Hill Funds
Statements of Changes in Net Assets

	Short Duration Total Return Fund						Core Bond Fund
	For the six months ended June 30, 2017 (Unaudited)			For the period July 5, 2016 through December 31, 2016(A)			For the six months ended June 30, 2017 (Unaudited)			For the period July 5, 2016 through December 31, 2016(A)
From Operations
Net investment income	$	3,904,672		$	1,566,326		$	482,553		$	277,147
Net realized gains (losses) on security sales		568,718			40,209			(27,658	)		(2,090	)
Net change in unrealized appreciation (depreciation) on investments		1,536,456			(580,391	)		708,518			(1,112,006	)
Change in Net Assets from Operations		6,009,846			1,026,144			1,163,413			(836,949	)
Distributions to Shareholders
From net investment income:
Class A		(9,511	)		(1,189	)		(28,392	)		(7,061	)
Class I		(388,533	)		(65,023	)		(106,621	)		(31,299	)
Class Y		(3,685,122	)		(1,613,933	)		(381,542	)		(263,372	)
Change in Net Assets from Distributions to Shareholders		(4,083,166	)		(1,680,145	)		(516,555	)		(301,732	)
Change in net assets from capital transactions		72,155,128			198,110,463			2,140,311			40,822,195
Total Change in Net Assets		74,081,808			197,456,462			2,787,169			39,683,514
Net Assets:
Beginning of period		197,456,462			—			39,683,514			—
End of period	$	271,538,270		$	197,456,462		$	42,470,683		$	39,683,514
Accumulated Net Investment Income (Loss)	$	(139,983	)	$	38,511		$	(29,218	)	$	4,784

^(A) Inception date of the Fund is July 5, 2016.

See accompanying Notes to Financial Statements.

66 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Funds
Statements of Changes in Net Assets

	Short Duration Total Return Fund						Core Bond Fund
	For the six months ended June 30, 2017 (Unaudited)			For the period July 5, 2016 through December 31, 2016(A)			For the six months ended June 30, 2017 (Unaudited)			For the period July 5, 2016 through December 31, 2016(A)
Capital Transactions
Class A
Proceeds from shares sold	$	1,756,180		$	228,084		$	791,350		$	2,216,556
Reinvested distributions		8,541			1,189			28,392			7,061
Payments for shares redeemed		(86,534	)		(5,926	)		(147,067	)		(11,897	)
Change in Net Assets from Class A Share Transactions		1,678,187			223,347			672,675			2,211,720
Class I
Proceeds from shares sold		29,549,102			14,718,632			1,170,710			8,234,987
Reinvested distributions		328,210			41,870			106,212			31,219
Payments for shares redeemed		(9,507,054	)		(11,054	)		(182,523	)		(93,888	)
Change in Net Assets from Class I Share Transactions		20,370,258			14,749,448			1,094,399			8,172,318
Class Y
Proceeds from shares sold		58,970,006			194,969,190			48,524			30,174,797
Reinvested distributions		3,685,122			1,613,934			381,542			263,372
Payments for shares redeemed		(12,548,445	)		(13,445,456	)		(56,829	)		(12	)
Change in Net Assets from Class Y Share Transactions		50,106,683			183,137,668			373,237			30,438,157
Change in net assets from capital transactions:	$	72,155,128		$	198,110,463		$	2,140,311		$	40,822,195
Share Transactions:
Class A
Issued		173,610			22,616			80,773			225,529
Reinvested		846			118			2,898			727
Redeemed		(8,554	)		(589	)		(14,991	)		(1,226	)
Change in shares outstanding		165,902			22,145			68,680			225,030
Class I
Issued		2,926,500			1,462,998			119,345			834,521
Reinvested		32,545			4,167			10,846			3,203
Redeemed		(940,064	)		(1,100	)		(18,647	)		(9,668	)
Change in shares outstanding		2,018,981			1,466,065			111,544			828,056
Class Y
Issued		5,855,159			19,367,392			4,980			3,010,931
Reinvested		365,443			160,459			38,966			26,622
Redeemed		(1,243,116	)		(1,336,623	)		(5,864	)		(1	)
Change in shares outstanding		4,977,486			18,191,228			38,082			3,037,552
Change in total shares outstanding		7,162,369			19,679,438			218,306			4,090,638

^(A) Inception date of the Fund is July 5, 2016.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 67

Diamond Hill Funds
Statements of Changes in Net Assets

	Corporate Credit Fund						High Yield Fund
	For the six months ended June 30, 2017 (Unaudited)			For the year ended December 31, 2016			For the six months ended June 30, 2017 (Unaudited)			For the period January 4, 2016 (commencement of operations) to December 31, 2016
From Operations
Net investment income	$	15,233,770		$	25,250,580		$	960,193		$	1,629,135
Net realized gains on security sales		1,005,522			9,834,572			626,471			670,845
Net change in unrealized appreciation (depreciation) on investments		12,189,593			13,026,361			441,047			1,137,651
Change in Net Assets from Operations		28,428,885			48,111,513			2,027,711			3,437,631
Distributions to Shareholders
From net investment income:
Class A		(2,033,167	)		(3,244,981	)		(7,451	)		(7,838	)
Class C		(619,765	)		(1,398,487	)		—			—
Class I		(12,122,061	)		(19,773,115	)		(607,561	)		(1,111,827	)
Class Y		(631,208	)		(1,059,453	)		(356,720	)		(499,109	)
From net realized gains on investments
Class A		—			(40,897	)		—			(3,755	)
Class C		—			(17,233	)		—			—
Class I		—			(237,746	)		—			(495,683	)
Class Y		—			(12,378	)		—			(166,026	)
Change in Net Assets from Distributions to Shareholders		(15,406,201	)		(25,784,290	)		(971,732	)		(2,284,238	)
Change in net assets from capital transactions		65,648,795			177,592,644			(5,846,092	)		20,629,308
Total Change in Net Assets		78,671,479			199,919,867			(4,790,113	)		21,782,701
Net Assets:
Beginning of period		533,457,643			333,537,776			31,925,733			10,143,032
End of period	$	612,129,122		$	533,457,643		$	27,135,620		$	31,925,733
Accumulated Net Investment Income	$	270,736		$	443,167		$	3,249		$	14,788

See accompanying Notes to Financial Statements.

68 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Funds
Statements of Changes in Net Assets

	Corporate Credit Fund						High Yield Fund
	For the six months ended June 30, 2017 (Unaudited)			For the year ended December 31, 2016			For the six months ended June 30, 2017 (Unaudited)			For the period January 4, 2016 (commencement of operations) to December 31, 2016
Capital Transactions
Class A
Proceeds from shares sold	$	23,908,333		$	51,156,932		$	109,678		$	93,130
Reinvested distributions		1,800,814			2,805,818			7,451			11,593
Payments for shares redeemed		(16,021,847	)		(30,218,241	)		(30,801	)		(679	)
Change in Net Assets from Class A Share Transactions		9,687,300			23,744,509			86,328			104,044
Class C
Proceeds from shares sold		2,097,555			9,360,762			—			—
Reinvested distributions		463,844			982,602			—			—
Payments for shares redeemed		(4,955,614	)		(5,849,646	)		—			—
Change in Net Assets from Class C Share Transactions		(2,394,215	)		4,493,718			—			—
Class I
Proceeds from shares sold		88,260,692			201,939,975			5,814,380			22,955,792
Reinvested distributions		10,830,863			18,301,131			599,520			1,579,468
Payments for shares redeemed		(42,580,728	)		(73,212,519	)		(18,169,720	)		(1,541,848	)
Change in Net Assets from Class I Share Transactions		56,510,827			147,028,587			(11,755,820	)		22,993,412
Class Y
Proceeds from shares sold		2,456,259			7,771,293			5,476,140			4,147,891
Reinvested distributions		413,401			1,040,561			356,720			665,135
Payments for shares redeemed		(1,024,777	)		(6,486,024	)		(9,460	)		(7,281,174	)
Change in Net Assets from Class Y Share Transactions		1,844,883			2,325,830			5,823,400			(2,468,148	)
Change in net assets from capital transactions:	$	65,648,795		$	177,592,644		$	(5,846,092	)	$	20,629,308
Share Transactions:
Class A
Issued		2,119,144			4,684,422			10,052			8,818
Reinvested		159,357			257,278			684			1,086
Redeemed		(1,416,798	)		(2,766,235	)		(2,801	)		(63	)
Change in shares outstanding		861,703			2,175,465			7,935			9,841
Class C
Issued		186,353			865,290			—			—
Reinvested		41,189			90,396			—			—
Redeemed		(439,695	)		(536,288	)		—			—
Change in shares outstanding		(212,153	)		419,398			—			—
Class I
Issued		7,840,115			18,609,874			535,287			2,226,794
Reinvested		961,479			1,682,202			55,223			148,080
Redeemed		(3,777,888	)		(6,767,554	)		(1,667,513	)		(143,247	)
Change in shares outstanding		5,023,706			13,524,522			(1,077,003	)		2,231,627
Class Y
Issued		218,606			713,232			503,074			406,183
Reinvested		36,746			96,163			32,700			63,324
Redeemed		(90,725	)		(603,088	)		(866	)		(714,368	)
Change in shares outstanding		164,627			206,307			534,908			(244,861	)
Change in total shares outstanding		5,837,883			16,325,692			(534,160	)		1,996,607

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 69

Small Cap Fund
Financial Highlights

Selected data for a share outstanding throughout the periods indicated

Small Cap Fund	Net asset value beginning of period		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 six months ended June 30, 2017 (Unaudited)	$	34.39		0.01			0.57			0.58			—
For the year ended December 31, 2016	$	30.89		—			4.36			4.36			—
For the year ended December 31, 2015	$	32.61		(0.05	)		(1.17	)		(1.22	)		(0.09	)
For the year ended December 31, 2014	$	32.72		(0.11	)		1.57			1.46			—
For the year ended December 31, 2013	$	24.95		—	(G)		9.86			9.86			(0.03	)
For the year ended December 31, 2012	$	23.04		0.07			2.88			2.95			(0.09	)
Class C
For the six months ended June 30, 2017 (Unaudited)	$	30.30		(0.11	)		0.50			0.39			—
For the year ended December 31, 2016	$	27.51		(0.23	)		3.88			3.65			—
For the year ended December 31, 2015	$	29.23		(0.25	)		(1.06	)		(1.31	)		—
For the year ended December 31, 2014	$	29.70		(0.33	)		1.43			1.10			—
For the year ended December 31, 2013	$	22.94		(0.21	)		9.03			8.82			—
For the year ended December 31, 2012	$	21.34		(0.10	)		2.65			2.55			—
Class I
For the six months ended June 30, 2017 (Unaudited)	$	34.87		0.06			0.57			0.63			—
For the year ended December 31, 2016	$	31.28		0.10			4.42			4.52			(0.07	)
For the year ended December 31, 2015	$	33.04		0.05			(1.20	)		(1.15	)		(0.20	)
For the year ended December 31, 2014	$	33.10		(0.02	)		1.59			1.57			(0.06	)
For the year ended December 31, 2013	$	25.21		0.07			9.98			10.05			(0.10	)
For the year ended December 31, 2012	$	23.27		0.14			2.90			3.04			(0.15	)
Class Y(H)
For the six months ended June 30, 2017 (Unaudited)	$	34.89		0.08			0.57			0.65			—
For the year ended December 31, 2016	$	31.29		0.13			4.43			4.56			(0.10	)
For the year ended December 31, 2015	$	33.05		0.12			(1.23	)		(1.11	)		(0.24	)
For the year ended December 31, 2014	$	33.09		0.03			1.60			1.63			(0.10	)
For the year ended December 31, 2013	$	25.20		0.12			9.97			10.09			(0.14	)
For the year ended December 31, 2012	$	23.27		0.20			2.88			3.08			(0.20	)

^(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.

^(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.

70 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Distributions from net realized gains			Total distributions			Net asset value end of period		Total return(B)			Net assets at end of period (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)
	—			—		$	34.97		1.69	%(E)	$	387,878		1.28	%(F)		1.29	%(F)		0.03	%		4	%(E)
	(0.86	)		(0.86	)	$	34.39		14.10	%	$	439,681		1.29	%		1.29	%		0.00	%		15	%
	(0.41	)		(0.50	)	$	30.89		(3.73	)%	$	492,810		1.29	%		1.29	%		(0.15	)%		17	%
	(1.57	)		(1.57	)	$	32.61		4.60	%	$	571,941		1.30	%		1.30	%		(0.34	)%		16	%
	(2.06	)		(2.09	)	$	32.72		39.70	%	$	571,167		1.31	%		1.31	%		(0.01	)%		43	%
	(0.95	)		(1.04	)	$	24.95		12.88	%	$	390,371		1.31	%		1.31	%		0.30	%		13	%
	—			—		$	30.69		1.29	%(E)	$	48,606		2.03	%(F)		2.04	%(F)		(0.71	)%		4	%(E)
	(0.86	)		(0.86	)	$	30.30		13.25	%	$	54,664		2.04	%		2.04	%		(0.75	)%		15	%
	(0.41	)		(0.41	)	$	27.51		(4.47	)%	$	57,875		2.04	%		2.04	%		(0.87	)%		17	%
	(1.57	)		(1.57	)	$	29.23		3.86	%	$	51,794		2.05	%		2.05	%		(1.07	)%		16	%
	(2.06	)		(2.06	)	$	29.70		38.64	%	$	46,476		2.06	%		2.06	%		(0.76	)%		43	%
	(0.95	)		(0.95	)	$	22.94		12.04	%	$	29,917		2.06	%		2.06	%		(0.45	)%		13	%
	—			—		$	35.50		1.81	%(E)	$	956,784		0.98	%(F)		0.99	%(F)		0.33	%		4	%(E)
	(0.86	)		(0.93	)	$	34.87		14.45	%	$	1,073,671		0.99	%		0.99	%		0.32	%		15	%
	(0.41	)		(0.61	)	$	31.28		(3.47	)%	$	882,350		1.02	%		1.02	%		0.16	%		17	%
	(1.57	)		(1.63	)	$	33.04		4.86	%	$	659,199		1.05	%		1.05	%		(0.06	)%		16	%
	(2.06	)		(2.16	)	$	33.10		40.08	%	$	550,844		1.06	%		1.06	%		0.22	%		43	%
	(0.95	)		(1.10	)	$	25.21		13.17	%	$	298,473		1.06	%		1.06	%		0.56	%		13	%
	—			—		$	35.54		1.86	%(E)	$	220,031		0.88	%(F)		0.89	%(F)		0.45	%		4	%(E)
	(0.86	)		(0.96	)	$	34.89		14.57	%	$	221,827		0.89	%		0.89	%		0.40	%		15	%
	(0.41	)		(0.65	)	$	31.29		(3.36	)%	$	221,624		0.90	%		0.90	%		0.37	%		17	%
	(1.57	)		(1.67	)	$	33.05		5.06	%	$	157,665		0.90	%		0.90	%		0.10	%		16	%
	(2.06	)		(2.20	)	$	33.09		40.25	%	$	101,026		0.91	%		0.91	%		0.40	%		43	%
	(0.95	)		(1.15	)	$	25.20		13.34	%	$	63,439		0.91	%		0.91	%		0.82	%		13	%

^(E) Not annualized.

^(F) Annualized

^(G) Amount is less than $0.005.

^(H) Inception date of Class Y is December 30, 2011. Class Y commenced public offering on January 3, 2012.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 71

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 period		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 six months ended June 30, 2017 (Unaudited)	$	21.18		0.02			0.71		0.73		—
For the year ended December 31, 2016	$	18.29		0.01			3.25		3.26		(0.01	)
For the year ended December 31, 2015	$	18.33		0.01			0.17		0.18		(0.03	)
For the year ended December 31, 2014	$	17.73		0.03			1.23		1.26		(0.02	)
For the year ended December 31, 2013	$	13.13		0.04			5.35		5.39		(0.03	)
For the year ended December 31, 2012	$	11.71		0.02			1.78		1.80		—	(G)
Class C
For the six months ended June 30, 2017 (Unaudited)	$	19.60		(0.06	)		0.65		0.59		—
For the year ended December 31, 2016	$	17.06		(0.12	)		3.02		2.90		—
For the year ended December 31, 2015	$	17.21		(0.12	)		0.16		0.04		—
For the year ended December 31, 2014	$	16.80		(0.10	)		1.15		1.05		—
For the year ended December 31, 2013	$	12.54		(0.07	)		5.09		5.02		—
For the year ended December 31, 2012	$	11.28		(0.07	)		1.71		1.64		—
Class I
For the six months ended June 30, 2017 (Unaudited)	$	21.39		0.05			0.71		0.76		—
For the year ended December 31, 2016	$	18.46		0.07			3.29		3.36		(0.07	)
For the year ended December 31, 2015	$	18.47		0.07			0.17		0.24		(0.06	)
For the year ended December 31, 2014	$	17.87		0.08			1.22		1.30		(0.06	)
For the year ended December 31, 2013	$	13.21		0.09			5.38		5.47		(0.05	)
For the year ended December 31, 2012	$	11.78		0.05			1.80		1.85		(0.04	)
Class Y(H)
For the six months ended June 30, 2017 (Unaudited)	$	21.42		0.06			0.72		0.78		—
For the year ended December 31, 2016	$	18.48		0.09			3.29		3.38		(0.08	)
For the year ended December 31, 2015	$	18.49		0.09			0.17		0.26		(0.08	)
For the year ended December 31, 2014	$	17.87		0.11			1.23		1.34		(0.08	)
For the year ended December 31, 2013	$	13.20		0.12			5.38		5.50		(0.07	)
For the year ended December 31, 2012	$	11.78		0.09			1.77		1.86		(0.06	)

^(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.

^(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.

72 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Distributions from net realized gains			Total distributions			Net asset value end of period		Total return(B)			Net assets at end of period (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)
	—			—		$	21.91		3.45	%(E)	$	255,293		1.23	%(F)		1.24	%(F)		0.14	%		7	%(E)
	(0.36	)		(0.37	)	$	21.18		17.81	%	$	288,634		1.24	%		1.24	%		0.12	%		17	%
	(0.19	)		(0.22	)	$	18.29		0.98	%	$	156,122		1.24	%		1.24	%		0.06	%		21	%
	(0.64	)		(0.66	)	$	18.33		7.17	%	$	100,820		1.25	%		1.25	%		0.18	%		27	%
	(0.76	)		(0.79	)	$	17.73		41.25	%	$	61,563		1.26	%		1.26	%		0.27	%		35	%
	(0.38	)		(0.38	)	$	13.13		15.43	%	$	19,607		1.26	%		1.26	%		0.15	%		26	%
	—			—		$	20.19		3.01	%(E)	$	40,196		1.98	%(F)		1.99	%(F)		(0.60	)%		7	%(E)
	(0.36	)		(0.36	)	$	19.60		16.98	%	$	42,875		1.99	%		1.99	%		(0.65	)%		17	%
	(0.19	)		(0.19	)	$	17.06		0.24	%	$	32,963		1.99	%		1.99	%		(0.69	)%		21	%
	(0.64	)		(0.64	)	$	17.21		6.33	%	$	25,276		2.00	%		2.00	%		(0.59	)%		27	%
	(0.76	)		(0.76	)	$	16.80		40.21	%	$	19,184		2.01	%		2.01	%		(0.45	)%		35	%
	(0.38	)		(0.38	)	$	12.54		14.57	%	$	9,169		2.01	%		2.01	%		(0.59	)%		26	%
	—			—		$	22.15		3.55	%(E)	$	1,066,018		0.93	%(F)		0.94	%(F)		0.46	%		7	%(E)
	(0.36	)		(0.43	)	$	21.39		18.18	%	$	1,015,403		0.94	%		0.94	%		0.41	%		17	%
	(0.19	)		(0.25	)	$	18.46		1.32	%	$	506,730		0.97	%		0.97	%		0.35	%		21	%
	(0.64	)		(0.70	)	$	18.47		7.36	%	$	264,824		1.00	%		1.00	%		0.42	%		27	%
	(0.76	)		(0.81	)	$	17.87		41.64	%	$	148,927		1.01	%		1.01	%		0.54	%		35	%
	(0.38	)		(0.42	)	$	13.21		15.74	%	$	53,514		1.01	%		1.01	%		0.42	%		26	%
	—			—		$	22.20		3.64	%(E)	$	1,076,306		0.83	%(F)		0.84	%(F)		0.57	%		7	%(E)
	(0.36	)		(0.44	)	$	21.42		18.29	%	$	961,721		0.84	%		0.84	%		0.49	%		17	%
	(0.19	)		(0.27	)	$	18.48		1.41	%	$	602,951		0.85	%		0.85	%		0.48	%		21	%
	(0.64	)		(0.72	)	$	18.49		7.60	%	$	300,815		0.85	%		0.85	%		0.62	%		27	%
	(0.76	)		(0.83	)	$	17.87		41.88	%	$	106,068		0.86	%		0.86	%		0.73	%		35	%
	(0.38	)		(0.44	)	$	13.20		15.84	%	$	30,940		0.86	%		0.86	%		0.68	%		26	%

^(E) Not annualized.

^(F) Annualized

^(G) Amount is less than $0.005.

^(H) Inception date of Class Y is December 30, 2011. Class Y commenced public offering on January 3, 2012.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 73

Mid Cap Fund
Financial Highlights

Selected data for a share outstanding throughout the periods indicated

Mid Cap Fund(A)	Net asset value beginning of period		Net investment income (loss)(B)		Net realized and unrealized gains (losses) on investments		Total from investment operations		Dividends from net investment income
Class A
For the six months ended June 30, 2017 (Unaudited)	$	12.59		0.02		0.47		0.49		—
For the year ended December 31, 2016	$	10.71		0.03		1.93		1.96		(0.02	)
For the year ended December 31, 2015	$	10.70		0.04		0.01		0.05		(0.04	)
For the year ended December 31, 2014	$	10.00		0.06		0.70		0.76		(0.06	)
Class I
For the six months ended June 30, 2017 (Unaudited)	$	12.62		0.04		0.48		0.52		—
For the year ended December 31, 2016	$	10.74		0.07		1.92		1.99		(0.05	)
For the year ended December 31, 2015	$	10.72		0.07		0.01		0.08		(0.06	)
For the year ended December 31, 2014	$	10.00		0.09		0.70		0.79		(0.07	)
Class Y(E)
For the six months ended June 30, 2017 (Unaudited)	$	12.65		0.04		0.48		0.52		—
For the year ended December 31, 2016	$	10.75		0.08		1.94		2.02		(0.06	)
For the year ended December 31, 2015	$	10.73		0.08		0.01		0.09		(0.07	)
For the year ended December 31, 2014	$	10.00		0.09		0.71		0.80		(0.07	)

^(A) Inception date of the Fund is December 31, 2013. Fund commenced public offering on January 2, 2014.

^(B) Net investment income (loss) 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

^(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.

See accompanying Notes to Financial Statements.

74 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Distributions from net realized gains			Total distributions			Net asset value end of period		Total return(C)			Net assets at end of period (000’s)		Ratio of total net expenses to average net assets			Ratio of total gross expenses to average net assets(D)			Ratio of net investment income (loss) to average net assets			Portfolio turnover rate(E)
	—			—		$	13.08		3.89	%(F)	$	24,638		1.08	%(G)		1.09	%(G)		0.34	%		6	%(F)
	(0.06	)		(0.08	)	$	12.59		18.29	%	$	7,403		1.14	%		1.14	%		0.31	%		17	%
	—			(0.04	)	$	10.71		0.44	%	$	3,082		1.14	%		1.14	%		0.35	%		29	%
	—			(0.06	)	$	10.70		7.57	%	$	2,120		1.15	%		1.15	%		0.59	%		28	%
	—			—		$	13.14		4.12	%(F)	$	52,258		0.79	%(G)		0.80	%(G)		0.61	%		6	%(F)
	(0.06	)		(0.11	)	$	12.62		18.56	%	$	28,031		0.85	%		0.85	%		0.67	%		17	%
	—			(0.06	)	$	10.74		0.74	%	$	3,337		0.87	%		0.87	%		0.61	%		29	%
	—			(0.07	)	$	10.72		7.91	%	$	2,743		0.90	%		0.90	%		0.87	%		28	%
	—			—		$	13.17		4.11	%(F)	$	31,000		0.69	%(G)		0.70	%(G)		0.68	%		6	%(F)
	(0.06	)		(0.12	)	$	12.65		18.76	%	$	23,383		0.75	%		0.75	%		0.71	%		17	%
	—			(0.07	)	$	10.75		0.84	%	$	12,077		0.75	%		0.75	%		0.72	%		29	%
	—			(0.07	)	$	10.73		8.02	%	$	11,419		0.75	%		0.75	%		0.87	%		28	%

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

^(F) Not annualized.

^(G) Annualized

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 75

Large Cap Fund
Financial Highlights

Selected data for a share outstanding throughout the periods indicated

Large Cap Fund	Net asset value beginning of period		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 six months ended June 30, 2017 (Unaudited)	$	23.06		0.12		2.05			2.17			—
For the year ended December 31, 2016	$	21.44		0.25		2.82			3.07			(0.24	)
For the year ended December 31, 2015	$	22.71		0.19		(0.43	)		(0.24	)		(0.18	)
For the year ended December 31, 2014	$	21.49		0.21		2.01			2.22			(0.19	)
For the year ended December 31, 2013	$	16.54		0.18		5.79			5.97			(0.16	)
For the year ended December 31, 2012	$	14.96		0.22		1.62			1.84			(0.21	)
Class C
For the six months ended June 30, 2017 (Unaudited)	$	21.94		0.03		1.94			1.97			—
For the year ended December 31, 2016	$	20.49		0.08		2.68			2.76			(0.10	)
For the year ended December 31, 2015	$	21.77		0.02		(0.41	)		(0.39	)		(0.04	)
For the year ended December 31, 2014	$	20.68		0.04		1.93			1.97			(0.07	)
For the year ended December 31, 2013	$	15.98		0.03		5.58			5.61			(0.05	)
For the year ended December 31, 2012	$	14.46		0.10		1.56			1.66			(0.09	)
Class I
For the six months ended June 30, 2017 (Unaudited)	$	23.20		0.16		2.05			2.21			—
For the year ended December 31, 2016	$	21.55		0.31		2.86			3.17			(0.31	)
For the year ended December 31, 2015	$	22.83		0.25		(0.44	)		(0.19	)		(0.24	)
For the year ended December 31, 2014	$	21.58		0.27		2.03			2.30			(0.24	)
For the year ended December 31, 2013	$	16.61		0.24		5.80			6.04			(0.21	)
For the year ended December 31, 2012	$	15.01		0.26		1.63			1.89			(0.24	)
Class Y(F)
For the six months ended June 30, 2017 (Unaudited)	$	23.21		0.17		2.06			2.23			—
For the year ended December 31, 2016	$	21.56		0.34		2.85			3.19			(0.33	)
For the year ended December 31, 2015	$	22.84		0.28		(0.44	)		(0.16	)		(0.27	)
For the year ended December 31, 2014	$	21.59		0.31		2.02			2.33			(0.27	)
For the year ended December 31, 2013	$	16.60		0.26		5.83			6.09			(0.24	)
For the year ended December 31, 2012	$	15.01		0.30		1.62			1.92			(0.28	)

^(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) 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.

76 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Distributions from net realized gains			Total distributions			Net asset value end of period		Total return(B)			Net assets at end of period (000’s)		Ratio of total expenses to average net assets			Ratio of net investment income (loss) to average net assets			Portfolio turnover rate(C)
	—			—		$	25.23		9.41	%(D)	$	1,241,536		0.99	%(E)		0.99	%(E)		10	%(D)
	(1.21	)		(1.45	)	$	23.06		14.26	%	$	1,158,652		0.99	%		1.12	%		23	%
	(0.85	)		(1.03	)	$	21.44		(1.10	)%	$	1,122,165		1.04	%		0.85	%		20	%
	(0.81	)		(1.00	)	$	22.71		10.42	%	$	1,182,155		1.05	%		0.94	%		24	%
	(0.86	)		(1.02	)	$	21.49		36.33	%	$	878,903		1.06	%		0.92	%		21	%
	(0.05	)		(0.26	)	$	16.54		12.29	%	$	617,407		1.06	%		1.37	%		28	%
	—			—		$	23.91		8.98	%(D)	$	105,537		1.74	%(E)		0.23	%(E)		10	%(D)
	(1.21	)		(1.31	)	$	21.94		13.40	%	$	95,923		1.74	%		0.37	%		23	%
	(0.85	)		(0.89	)	$	20.49		(1.83	)%	$	84,550		1.79	%		0.10	%		20	%
	(0.81	)		(0.88	)	$	21.77		9.60	%	$	83,781		1.80	%		0.19	%		24	%
	(0.86	)		(0.91	)	$	20.68		35.33	%	$	53,241		1.81	%		0.18	%		21	%
	(0.05	)		(0.14	)	$	15.98		11.49	%	$	33,305		1.81	%		0.62	%		28	%
	—			—		$	25.41		9.53	%(D)	$	2,901,402		0.69	%(E)		1.27	%(E)		10	%(D)
	(1.21	)		(1.52	)	$	23.20		14.63	%	$	2,156,390		0.70	%		1.41	%		23	%
	(0.85	)		(1.09	)	$	21.55		(0.85	)%	$	1,803,130		0.77	%		1.11	%		20	%
	(0.81	)		(1.05	)	$	22.83		10.74	%	$	1,606,797		0.80	%		1.20	%		24	%
	(0.86	)		(1.07	)	$	21.58		36.60	%	$	1,295,477		0.81	%		1.18	%		21	%
	(0.05	)		(0.29	)	$	16.61		12.62	%	$	791,031		0.81	%		1.62	%		28	%
	—			—		$	25.44		9.61	%(D)	$	766,169		0.59	%(E)		1.38	%(E)		10	%(D)
	(1.21	)		(1.54	)	$	23.21		14.74	%	$	666,756		0.60	%		1.49	%		23	%
	(0.85	)		(1.12	)	$	21.56		(0.74	)%	$	430,568		0.65	%		1.23	%		20	%
	(0.81	)		(1.08	)	$	22.84		10.89	%	$	373,711		0.65	%		1.36	%		24	%
	(0.86	)		(1.10	)	$	21.59		36.87	%	$	302,458		0.66	%		1.32	%		21	%
	(0.05	)		(0.33	)	$	16.60		12.79	%	$	224,073		0.66	%		1.87	%		28	%

^(D) Not annualized.

^(E) Annualized

^(F) Inception date of Class Y is December 30, 2011. Class Y commenced public offering on January 3, 2012.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 77

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 period		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 six months ended June 30, 2017 (Unaudited)	$	13.35		0.01			0.83			0.84			—
For the year ended December 31, 2016	$	12.36		(0.01	)		1.17			1.16			—
For the year ended December 31, 2015	$	12.96		—	(G)		(0.19	)		(0.19	)		—
For the year ended December 31, 2014	$	13.00		0.05			1.38			1.43			(0.05	)
For the year ended December 31, 2013	$	10.45		0.05			4.48			4.53			(0.09	)
For the year ended December 31, 2012	$	9.69		0.12			0.97			1.09			(0.08	)
Class C
For the six months ended June 30, 2017 (Unaudited)	$	12.69		(0.04	)		0.79			0.75			—
For the year ended December 31, 2016	$	11.85		(0.09	)		1.10			1.01			—
For the year ended December 31, 2015	$	12.54		(0.10	)		(0.18	)		(0.28	)		—
For the year ended December 31, 2014	$	12.67		(0.05	)		1.34			1.29			—
For the year ended December 31, 2013	$	10.25		(0.04	)		4.38			4.34			(0.03	)
For the year ended December 31, 2012	$	9.51		0.04			0.95			0.99			—
Class I
For the six months ended June 30, 2017 (Unaudited)	$	13.40		0.03			0.84			0.87			—
For the year ended December 31, 2016	$	12.39		0.03			1.16			1.19			(0.01	)
For the year ended December 31, 2015	$	12.95		0.03			(0.18	)		(0.15	)		—
For the year ended December 31, 2014	$	12.97		0.09			1.38			1.47			(0.07	)
For the year ended December 31, 2013	$	10.43		0.09			4.46			4.55			(0.12	)
For the year ended December 31, 2012	$	9.68		0.15			0.96			1.11			(0.11	)
Class Y(H)
For the six months ended June 30, 2017 (Unaudited)	$	13.42		0.04			0.83			0.87			—
For the year ended December 31, 2016	$	12.41		0.04			1.17			1.21			(0.03	)
For the year ended December 31, 2015	$	12.96		0.05			(0.19	)		(0.14	)		—
For the year ended December 31, 2014	$	12.99		0.10			1.39			1.49			(0.10	)
For the year ended December 31, 2013	$	10.43		0.11			4.48			4.59			(0.14	)
For the year ended December 31, 2012	$	9.68		0.17			0.96			1.13			(0.13	)

^(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.

^(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.

78 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Distributions from net realized gains			Total distributions			Net asset value end of period		Total return(B)			Net assets at end of period (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)
	—			—		$	14.19		6.29	%(E)	$	13,544		1.18	%(F)		1.19	%(F)		0.14	%		26	%(E)
	(0.17	)		(0.17	)	$	13.35		9.37	%	$	14,963		1.19	%		1.19	%		(0.09	)%		70	%
	(0.41	)		(0.41	)	$	12.36		(1.44	)%	$	43,638		1.19	%		1.19	%		(0.01	)%		89	%
	(1.42	)		(1.47	)	$	12.96		11.30	%	$	12,963		1.20	%		1.20	%		0.36	%		53	%
	(1.89	)		(1.98	)	$	13.00		44.04	%	$	8,905		1.22	%		1.22	%		0.42	%		70	%
	(0.25	)		(0.33	)	$	10.45		11.27	%	$	7,778		1.21	%		1.21	%		1.15	%		38	%
	—			—		$	13.44		5.91	%(E)	$	11,037		1.93	%(F)		1.94	%(F)		(0.62	)%		26	%(E)
	(0.17	)		(0.17	)	$	12.69		8.51	%	$	12,269		1.94	%		1.94	%		(0.81	)%		70	%
	(0.41	)		(0.41	)	$	11.85		(2.21	)%	$	15,022		1.94	%		1.94	%		(0.78	)%		89	%
	(1.42	)		(1.42	)	$	12.54		10.46	%	$	8,265		1.95	%		1.95	%		(0.39	)%		53	%
	(1.89	)		(1.92	)	$	12.67		43.08	%	$	5,533		1.97	%		1.97	%		(0.35	)%		70	%
	(0.25	)		(0.25	)	$	10.25		10.44	%	$	3,271		1.96	%		1.96	%		0.41	%		38	%
	—			—		$	14.27		6.49	%(E)	$	99,882		0.88	%(F)		0.89	%(F)		0.43	%		26	%(E)
	(0.17	)		(0.18	)	$	13.40		9.62	%	$	93,192		0.90	%		0.90	%		0.24	%		70	%
	(0.41	)		(0.41	)	$	12.39		(1.14	)%	$	81,408		0.92	%		0.92	%		0.25	%		89	%
	(1.42	)		(1.49	)	$	12.95		11.57	%	$	31,999		0.95	%		0.95	%		0.64	%		53	%
	(1.89	)		(2.01	)	$	12.97		44.35	%	$	46,787		0.97	%		0.97	%		0.66	%		70	%
	(0.25	)		(0.36	)	$	10.43		11.54	%	$	41,862		0.96	%		0.96	%		1.44	%		38	%
	—			—		$	14.29		6.48	%(E)	$	19,649		0.78	%(F)		0.79	%(F)		0.53	%		26	%(E)
	(0.17	)		(0.20	)	$	13.42		9.72	%	$	18,456		0.80	%		0.80	%		0.36	%		70	%
	(0.41	)		(0.41	)	$	12.41		(1.06	)%	$	10,703		0.80	%		0.80	%		0.35	%		89	%
	(1.42	)		(1.52	)	$	12.96		11.74	%	$	8,746		0.80	%		0.80	%		0.76	%		53	%
	(1.89	)		(2.03	)	$	12.99		44.70	%	$	6,534		0.82	%		0.82	%		0.82	%		70	%
	(0.25	)		(0.38	)	$	10.43		11.69	%	$	5,788		0.81	%		0.81	%		1.62	%		38	%

^(E) Not annualized.

^(F) Annualized

^(G) Amount is less than $0.005.

^(H) Inception date of Class Y is December 30, 2011. Class Y commenced public offering on January 3, 2012.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 79

Long-Short Fund
Financial Highlights

Selected data for a share outstanding throughout the periods indicated

Long-Short Fund	Net asset value beginning of period		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 six months ended June 30, 2017 (Unaudited)	$	24.91		(0.04	)		0.89			0.85			—
For the year ended December 31, 2016	$	23.36		(0.09	)		2.49			2.40			—
For the year ended December 31, 2015	$	23.87		(0.11	)		(0.29	)		(0.40	)		—
For the year ended December 31, 2014	$	22.26		(0.08	)		1.69			1.61			—
For the year ended December 31, 2013	$	18.15		(0.05	)		4.21			4.16			(0.05	)
For the year ended December 31, 2012	$	16.75		0.06			1.36			1.42			(0.02	)
Class C
For the six months ended June 30, 2017 (Unaudited)	$	22.51		(0.13	)		0.81			0.68			—
For the year ended December 31, 2016	$	21.34		(0.24	)		2.26			2.02			—
For the year ended December 31, 2015	$	21.98		(0.27	)		(0.26	)		(0.53	)		—
For the year ended December 31, 2014	$	20.65		(0.23	)		1.56			1.33			—
For the year ended December 31, 2013	$	16.93		(0.19	)		3.91			3.72			—
For the year ended December 31, 2012	$	15.72		(0.07	)		1.28			1.21			—
Class I
For the six months ended June 30, 2017 (Unaudited)	$	25.43		(0.01	)		0.92			0.91			—
For the year ended December 31, 2016	$	23.77		(0.02	)		2.53			2.51			—
For the year ended December 31, 2015	$	24.22		(0.05	)		(0.29	)		(0.34	)		—
For the year ended December 31, 2014	$	22.52		(0.02	)		1.72			1.70			—
For the year ended December 31, 2013	$	18.35		—	(H)		4.26			4.26			(0.09	)
For the year ended December 31, 2012	$	16.93		0.10			1.38			1.48			(0.06	)
Class Y(I)
For the six months ended June 30, 2017 (Unaudited)	$	25.53		0.01			0.91			0.92			—
For the year ended December 31, 2016	$	23.83		0.01			2.54			2.55			—
For the year ended December 31, 2015	$	24.25		(0.02	)		(0.29	)		(0.31	)		—
For the year ended December 31, 2014	$	22.52		0.01			1.72			1.73			—
For the year ended December 31, 2013	$	18.35		0.04			4.25			4.29			(0.12	)
For the year ended December 31, 2012	$	16.93		0.14			1.37			1.51			(0.09	)

^(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 annualized ratios of total expenses to average net assets for the period ended June 30, 2017 would have been 1.39% for Class A, 2.14% for Class C, 1.12% for Class I and 1.00% for Class Y.

^(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.

See accompanying Notes to Financial Statements.

80 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Distributions from net realized gains			Total distributions			Net asset value end of period		Total return(B)			Net assets at end of period (000’s)		Ratio of total net expenses to average net assets(C)			Ratio of total gross expenses to average net assets(C)(D)			Ratio of net investment income (loss) to average net assets			Portfolio turnover rate(E)
	—			—		$	25.76		3.41	%(F)	$	398,371		1.91	%(G)		1.92	%(G)		(0.34	)%		22	%(F)
	(0.85	)		(0.85	)	$	24.91		10.26	%	$	460,104		2.06	%		2.06	%		(0.20	)%		45	%
	(0.11	)		(0.11	)	$	23.36		(1.67	)%	$	569,218		1.89	%		1.89	%		(0.47	)%		81	%
	—			—		$	23.87		7.23	%	$	703,572		1.83	%		1.83	%		(0.33	)%		60	%
	—			(0.05	)	$	22.26		22.92	%	$	858,112		1.83	%		1.83	%		(0.25	)%		30	%
	—			(0.02	)	$	18.15		8.46	%	$	533,722		1.75	%		1.75	%		0.32	%		39	%
	—			—		$	23.19		3.02	%(F)	$	125,605		2.66	%(G)		2.67	%(G)		(1.09	)%		22	%(F)
	(0.85	)		(0.85	)	$	22.51		9.45	%	$	145,313		2.81	%		2.81	%		(1.13	)%		45	%
	(0.11	)		(0.11	)	$	21.34		(2.40	%	$	169,861		2.64	%		2.64	%		(1.22	)%		81	%
	—			—		$	21.98		6.44	%	$	170,278		2.58	%		2.58	%		(1.09	)%		60	%
	—			—		$	20.65		21.97	%	$	130,388		2.58	%		2.58	%		(0.99	)%		30	%
	—			—		$	16.93		7.70	%	$	103,393		2.50	%		2.50	%		(0.43	)%		39	%
	—			—		$	26.34		3.58	%(F)	$	3,972,678		1.61	%(G)		1.62	%(G)		(0.05	)%		22	%(F)
	(0.85	)		(0.85	)	$	25.43		10.55	%	$	3,589,749		1.76	%		1.76	%		(0.07	)%		45	%
	(0.11	)		(0.11	)	$	23.77		(1.40	)%	$	3,382,697		1.62	%		1.62	%		(0.21	)%		81	%
	—			—		$	24.22		7.55	%	$	2,817,671		1.58	%		1.58	%		(0.09	)%		60	%
	—			(0.09	)	$	22.52		23.19	%	$	1,859,054		1.58	%		1.58	%		—	%		30	%
	—			(0.06	)	$	18.35		8.77	%	$	1,554,623		1.50	%		1.50	%		0.58	%		39	%
	—			—		$	26.45		3.60	%(F)	$	254,142		1.51	%(G)		1.52	%(G)		0.05	%		22	%(F)
	(0.85	)		(0.85	)	$	25.53		10.69	%	$	227,680		1.67	%		1.67	%		0.20	%		45	%
	(0.11	)		(0.11	)	$	23.83		(1.27	)%	$	290,928		1.50	%		1.50	%		(0.08	)%		81	%
	—			—		$	24.25		7.68	%	$	280,595		1.43	%		1.43	%		0.06	%		60	%
	—			(0.12	)	$	22.52		23.39	%	$	168,835		1.43	%		1.43	%		0.18	%		30	%
	—			(0.09	)	$	18.35		8.95	%	$	83,409		1.35	%		1.35	%		0.79	%		39	%

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

^(F) Not annualized.

^(G) Annualized

^(H) Amount is less than $0.005.

^(I) Inception date of Class Y is December 30, 2011. Class Y commenced public offering on January 3, 2012.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 81

Research Opportunities Fund
Financial Highlights

Selected data for a share outstanding throughout the periods indicated

Research Opportunities Fund(A)	Net asset value beginning of period		Net investment income (loss)(B)			Net realized and unrealized gains (losses) on investments			Total from investment operations			Dividends from net investment income
Class A
For the six months ended June 30, 2017 (Unaudited)	$	21.44		(0.05	)		1.75			1.70			—
For the year ended December 31, 2016	$	19.70		(0.04	)		1.94			1.90			—
For the year ended December 31, 2015	$	22.52		(0.06	)		(1.14	)		(1.20	)		—
For the year ended December 31, 2014	$	22.82		(0.07	)		1.62			1.55			(0.02	)
For the year ended December 31, 2013	$	18.34		(0.10	)		6.01			5.91			—
For the year ended December 31, 2012	$	16.60		0.02			1.93			1.95			(0.02	)
Class C
For the six months ended June 30, 2017 (Unaudited)	$	20.57		(0.13	)		1.69			1.56			—
For the year ended December 31, 2016	$	19.06		(0.19	)		1.86			1.67			—
For the year ended December 31, 2015	$	22.00		(0.21	)		(1.11	)		(1.32	)		—
For the year ended December 31, 2014	$	22.49		(0.24	)		1.58			1.34			—
For the year ended December 31, 2013	$	18.22		(0.26	)		5.96			5.70			—
For the year ended December 31, 2012	$	16.60		(0.09	)		1.90			1.81			—
Class I
For the six months ended June 30, 2017 (Unaudited)	$	21.61		(0.02	)		1.78			1.76			—
For the year ended December 31, 2016	$	19.81		0.02			1.94			1.96			—
For the year ended December 31, 2015	$	22.61		(0.01	)		(1.13	)		(1.14	)		(0.04	)
For the year ended December 31, 2014	$	22.90		(0.01	)		1.62			1.61			(0.07	)
For the year ended December 31, 2013	$	18.36		(0.04	)		6.01			5.97			—	(H)
For the year ended December 31, 2012	$	16.60		0.05			1.95			2.00			(0.05	)
Class Y
For the six months ended June 30, 2017 (Unaudited)	$	21.63		(0.01	)		1.78			1.77			—
For the year ended December 31, 2016	$	19.80		0.04			1.95			1.99			—
For the year ended December 31, 2015	$	22.64		0.02			(1.14	)		(1.12	)		(0.10	)
For the year ended December 31, 2014	$	22.92		0.03			1.62			1.65			(0.10	)
For the year ended December 31, 2013	$	18.36		—	(H)		6.02			6.02			(0.03	)
For the year ended December 31, 2012	$	16.60		0.08			1.94			2.02			(0.07	)

^(A) Inception date of the Fund is December 31, 2011. Fund commenced public offering on January 3, 2012.

^(B) Net investment income (loss) 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.

^(D) This fund invests in short positions and as such incurs certain expenses and fees. If such expenses and fees had not occurred, the annualized ratios of total expenses to average net assets for the period ended June 30, 2017 would have been 1.52% for Class A, 2.27% for Class C, 1.23% for Class I and 1.13% for Class Y.

^(E) 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.

82 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Distributions from net realized gains			Total distributions			Net asset value end of period		Total return(C)			Net assets at end of period (000’s)		Ratio of total expenses to average net assets(D)			Ratio of net investment income (loss) to average net assets			Portfolio turnover rate(E)
	—			—		$	23.14		7.93	%(F)	$	7,562		1.81	%(G)		(0.45	)%(G)		42	%(F)
	(0.16	)		(0.16	)	$	21.44		9.64	%	$	4,162		2.10	%		(0.16	)%		67	%
	(1.62	)		(1.62	)	$	19.70		(5.29	)%	$	8,637		1.83	%		(0.27	)%		147	%
	(1.83	)		(1.85	)	$	22.52		6.96	%	$	9,492		1.74	%		(0.29	)%		57	%
	(1.43	)		(1.43	)	$	22.82		32.43	%	$	6,836		1.77	%		(0.45	)%		72	%
	(0.19	)		(0.21	)	$	18.34		11.73	%	$	1,120		1.63	%		0.10	%		35	%
	—			—		$	22.13		7.58	%(F)	$	2,978		2.57	%(G)		(1.25	)%(G)		42	%(F)
	(0.16	)		(0.16	)	$	20.57		8.76	%	$	2,986		2.85	%		(0.93	)%		67	%
	(1.62	)		(1.62	)	$	19.06		(5.96	)%	$	5,097		2.58	%		(0.96	)%		147	%
	(1.83	)		(1.83	)	$	22.00		6.17	%	$	668		2.49	%		(1.03	)%		57	%
	(1.43	)		(1.43	)	$	22.49		31.48	%	$	494		2.52	%		(1.19	)%		72	%
	(0.19	)		(0.19	)	$	18.22		10.91	%	$	148		2.38	%		(0.51	)%		35	%
	—			—		$	23.37		8.14	%(F)	$	35,374		1.52	%(G)		(0.17	)%(G)		42	%(F)
	(0.16	)		(0.16	)	$	21.61		9.89	%	$	27,588		1.80	%		0.05	%		67	%
	(1.62	)		(1.66	)	$	19.81		(5.00	)%	$	26,186		1.57	%		(0.03	)%		147	%
	(1.83	)		(1.90	)	$	22.61		7.21	%	$	49,920		1.49	%		(0.05	)%		57	%
	(1.43	)		(1.43	)	$	22.90		32.76	%	$	43,018		1.52	%		(0.17	)%		72	%
	(0.19	)		(0.24	)	$	18.36		12.03	%	$	15,978		1.38	%		0.30	%		35	%
	—			—		$	23.40		8.18	%(F)	$	16,351		1.42	%(G)		(0.09	)%(G)		42	%(F)
	(0.16	)		(0.16	)	$	21.63		10.05	%	$	16,755		1.70	%		0.19	%		67	%
	(1.62	)		(1.72	)	$	19.80		(4.91	)%	$	15,285		1.44	%		0.10	%		147	%
	(1.83	)		(1.93	)	$	22.64		7.37	%	$	17,307		1.34	%		0.11	%		57	%
	(1.43	)		(1.46	)	$	22.92		32.99	%	$	15,468		1.37	%		0.02	%		72	%
	(0.19	)		(0.26	)	$	18.36		12.17	%	$	11,572		1.23	%		0.45	%		35	%

^(F) Not annualized.

^(G) Annualized

^(H) Amount is less than $0.005.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 83

Financial Long-Short Fund
Financial Highlights

Selected data for a share outstanding throughout the periods indicated

Financial Long-Short Fund	Net asset value beginning of period		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 six months ended June 30, 2017 (Unaudited)	$	22.11		(0.01	)		1.07			1.06			—
For the year ended December 31, 2016	$	18.62		0.03			3.46			3.49			—
For the year ended December 31, 2015	$	19.61		—	(G)		(0.92	)		(0.92	)		(0.07	)
For the year ended December 31, 2014	$	18.13		(0.02	)		1.50			1.48			—
For the year ended December 31, 2013	$	13.24		(0.05	)		4.94			4.89			—
For the year ended December 31, 2012	$	10.51		0.06			2.74			2.80			(0.07	)
Class C
For the six months ended June 30, 2017 (Unaudited)	$	20.35		(0.08	)		0.98			0.90			—
For the year ended December 31, 2016	$	17.28		(0.10	)		3.17			3.07			—
For the year ended December 31, 2015	$	18.26		(0.13	)		(0.85	)		(0.98	)		—
For the year ended December 31, 2014	$	17.00		(0.15	)		1.41			1.26			—
For the year ended December 31, 2013	$	12.51		(0.17	)		4.66			4.49			—
For the year ended December 31, 2012	$	9.96		(0.02	)		2.57			2.55			—
Class I
For the six months ended June 30, 2017 (Unaudited)	$	22.14		0.03			1.06			1.09			—
For the year ended December 31, 2016	$	18.59		0.09			3.46			3.55			—
For the year ended December 31, 2015	$	19.57		0.05			(0.91	)		(0.86	)		(0.12	)
For the year ended December 31, 2014	$	18.10		0.02			1.50			1.52			(0.05	)
For the year ended December 31, 2013	$	13.18		(0.02	)		4.94			4.92			—
For the year ended December 31, 2012	$	10.47		0.10			2.72			2.82			(0.11	)

^(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 annualized ratios of total expenses to average net assets for the period ended June 30, 2017 would have been 1.50% for Class A, 2.25% for Class C and 1.22% for Class Y.

^(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.

84 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Distributions from net realized gains		Total distributions			Net asset value end of period		Total return(B)			Net assets at end of period (000’s)		Ratio of total expenses to average net assets(C)			Ratio of net investment income (loss) to average net assets			Portfolio turnover rate(D)
	—		—		$	23.17		4.79	%(E)	$	8,534		1.95	%(F)		(0.09	)%(F)		10	%(E)
	—		—		$	22.11		18.74	%	$	10,161		2.00	%		0.19	%		34	%
	—		(0.07	)	$	18.62		(4.67	)%	$	10,760		1.85	%		0.02	%		63	%
	—		—		$	19.61		8.16	%	$	12,043		1.74	%		(0.10	)%		51	%
	—		—		$	18.13		36.93	%	$	17,852		1.70	%		(0.31	)%		66	%
	—		(0.07	)	$	13.24		26.62	%	$	7,862		1.76	%		0.49	%		58	%
	—		—		$	21.25		4.42	%(E)	$	1,856		2.70	%(F)		(0.79	)%(F)		10	%(E)
	—		—		$	20.35		17.77	%	$	1,714		2.75	%		(0.56	)%		34	%
	—		—		$	17.28		(5.37	)%	$	1,845		2.60	%		(0.75	)%		63	%
	—		—		$	18.26		7.41	%	$	2,233		2.49	%		(0.86	)%		51	%
	—		—		$	17.00		35.89	%	$	2,958		2.45	%		(1.06	)%		66	%
	—		—		$	12.51		25.60	%	$	820		2.51	%		(0.20	)%		58	%
	—		—		$	23.23		4.92	%(E)	$	21,659		1.65	%(F)		0.25	%(F)		10	%(E)
	—		—		$	22.14		19.10	%	$	20,518		1.71	%		0.50	%		34	%
	—		(0.12	)	$	18.59		(4.40	)%	$	14,812		1.58	%		0.24	%		63	%
	—		(0.05	)	$	19.57		8.42	%	$	15,310		1.49	%		0.12	%		51	%
	—		—		$	18.10		37.33	%	$	10,817		1.45	%		(0.12	)%		66	%
	—		(0.11	)	$	13.18		26.94	%	$	3,931		1.51	%		0.85	%		58	%

^(E) Not annualized.

^(F) Annualized

^(G) Amount is less than $0.005.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 85

Short Duration Total Return Fund
Financial Highlights

Selected data for a share outstanding throughout the period indicated

Short Duration Total Return Fund(A)	Net asset value beginning of period		Net investment income (loss)(B)		Net realized and unrealized gains (losses) on investments		Total from investment operations		Dividends from net investment income
Class A
For the six months ended June 30, 2017 (Unaudited)	$	10.04		0.14		0.08		0.22		(0.15	)
For the period ended December 31, 2016	$	10.00		0.09		0.03		0.12		(0.08	)
Class I
For the six months ended June 30, 2017 (Unaudited)	$	10.03		0.16		0.08		0.24		(0.16	)
For the period ended December 31, 2016	$	10.00		0.10		0.03		0.13		(0.10	)
Class Y
For the six months ended June 30, 2017 (Unaudited)	$	10.03		0.16		0.10		0.26		(0.17	)
For the period ended December 31, 2016	$	10.00		0.11		0.02		0.13		(0.10	)

^(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 (loss) 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.

86 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Distributions from net realized gains		Total distributions			Net asset value end of period		Total return(C)(D)			Net assets at end of period (000’s)		Ratio of total expenses to average net assets(E)			Ratio of net investment income (loss) to average net assets(E)			Portfolio turnover rate(D)(F)
	—		(0.15	)	$	10.11		2.22	%	$	1,902		0.83	%		2.92	%		36	%
	—		(0.08	)	$	10.04		1.19	%	$	222		0.83	%		1.12	%		19	%
	—		(0.16	)	$	10.11		2.42	%	$	35,250		0.54	%		3.17	%		36	%
	—		(0.10	)	$	10.03		1.26	%	$	14,707		0.53	%		1.32	%		19	%
	—		(0.17	)	$	10.12		2.58	%	$	234,387		0.44	%		3.24	%		36	%
	—		(0.10	)	$	10.03		1.29	%	$	182,527		0.44	%		1.25	%		19	%

^(D) Not annualized.

^(E) Annualized.

^(F) 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 | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 87

Core Bond Fund
Financial Highlights

Selected data for a share outstanding throughout the period indicated

Core Bond Fund(A)	Net asset value beginning of period		Net investment income (loss)(B)		Net realized and unrealized gains (losses) on investments			Total from investment operations			Dividends from net investment income
Class A
For the six months ended June 30, 2017 (Unaudited)	$	9.70		0.10		0.16			0.26			(0.11	)
For the period ended December 31, 2016	$	10.00		0.07		(0.28	)		(0.21	)		(0.09	)
Class I
For the six months ended June 30, 2017 (Unaudited)	$	9.70		0.11		0.17			0.28			(0.12	)
For the period ended December 31, 2016	$	10.00		0.09		(0.30	)		(0.21	)		(0.09	)
Class Y
For the six months ended June 30, 2017 (Unaudited)	$	9.70		0.12		0.17			0.29			(0.13	)
For the period ended December 31, 2016	$	10.00		0.09		(0.30	)		(0.21	)		(0.09	)

^(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 (loss) 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.

88 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Distributions from net realized gains		Total distributions			Net asset value end of period		Total return(C)(D)			Net assets at end of period (000’s)		Ratio of total expenses to average net assets(E)			Ratio of net investment income (loss) to average net assets(E)			Portfolio turnover rate(D)(F)
	—		(0.11	)	$	9.85		2.67	%	$	2,894		0.79	%		2.02	%		17	%
	—		(0.09	)	$	9.70		(2.28	)%	$	2,183		0.78	%		0.87	%		8	%
	—		(0.12	)	$	9.86		2.91	%	$	9,261		0.49	%		2.32	%		17	%
	—		(0.09	)	$	9.70		(2.14	)%	$	8,033		0.49	%		1.02	%		8	%
	—		(0.13	)	$	9.86		2.95	%	$	30,316		0.39	%		2.42	%		17	%
	—		(0.09	)	$	9.70		(2.11	)%	$	29,468		0.39	%		1.00	%		8	%

^(D) Not annualized.

^(E) Annualized.

^(F) 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 | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 89

Corporate Credit Fund
Financial Highlights

Selected data for a share outstanding throughout the periods indicated

Corporate Credit Fund	Net asset value beginning of period		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 six months ended June 30, 2017 (Unaudited)	$	11.13		0.28		0.27			0.55		(0.29	)
For the year ended December 31, 2016	$	10.53		0.63		0.60			1.23		(0.62	)
For the year ended December 31, 2015	$	10.94		0.58		(0.44	)		0.14		(0.55	)
For the year ended December 31, 2014	$	11.19		0.51		(0.28	)		0.23		(0.48	)
For the year ended December 31, 2013	$	11.18		0.56		—	(G)		0.56		(0.55	)
For the year ended December 31, 2012	$	10.79		0.62		0.39			1.01		(0.62	)
Class C
For the six months ended June 30, 2017 (Unaudited)	$	11.09		0.24		0.26			0.50		(0.24	)
For the year ended December 31, 2016	$	10.51		0.54		0.60			1.14		(0.55	)
For the year ended December 31, 2015	$	10.92		0.49		(0.43	)		0.06		(0.47	)
For the year ended December 31, 2014	$	11.17		0.42		(0.27	)		0.15		(0.40	)
For the year ended December 31, 2013	$	11.17		0.47		—	(G)		0.47		(0.47	)
For the year ended December 31, 2012	$	10.78		0.53		0.40			0.93		(0.54	)
Class I
For the six months ended June 30, 2017 (Unaudited)	$	11.09		0.30		0.26			0.56		(0.30	)
For the year ended December 31, 2016	$	10.50		0.66		0.59			1.25		(0.65	)
For the year ended December 31, 2015	$	10.91		0.60		(0.43	)		0.17		(0.58	)
For the year ended December 31, 2014	$	11.16		0.54		(0.27	)		0.27		(0.52	)
For the year ended December 31, 2013	$	11.16		0.58		—	(G)		0.58		(0.58	)
For the year ended December 31, 2012	$	10.77		0.64		0.40			1.04		(0.65	)
Class Y(H)
For the six months ended June 30, 2017 (Unaudited)	$	11.09		0.31		0.25			0.56		(0.31	)
For the year ended December 31, 2016	$	10.50		0.67		0.59			1.26		(0.66	)
For the year ended December 31, 2015	$	10.91		0.62		(0.44	)		0.18		(0.59	)
For the year ended December 31, 2014	$	11.16		0.55		(0.27	)		0.28		(0.53	)
For the year ended December 31, 2013	$	11.15		0.60		—	(G)		0.60		(0.59	)
For the year ended December 31, 2012	$	10.77		0.66		0.38			1.04		(0.66	)

^(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.

^(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.

90 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Distributions from net realized gains			Total distributions			Net asset value end of period		Total return(B)			Net assets at end of period (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)
	—			(0.29	)	$	11.39		4.94	%(E)	$	82,540		0.93	%(F)		0.94	%(F)		5.06	%(F)		41	%(E)
	(0.01	)		(0.63	)	$	11.13		11.94	%	$	71,075		0.93	%		0.93	%		5.78	%		119	%
	—			(0.55	)	$	10.53		1.19	%	$	44,354		0.95	%		0.95	%		5.24	%		48	%
	—			(0.48	)	$	10.94		2.10	%	$	31,282		1.00	%		1.00	%		4.52	%		56	%
	—			(0.55	)	$	11.19		5.13	%	$	39,801		1.02	%		1.02	%		5.00	%		60	%
	—			(0.62	)	$	11.18		9.55	%	$	44,374		1.02	%		1.02	%		5.57	%		33	%
	—			(0.24	)	$	11.35		4.57	%(E)	$	27,884		1.68	%(F)		1.69	%(F)		4.32	%(F)		41	%(E)
	(0.01	)		(0.56	)	$	11.09		11.06	%	$	29,607		1.68	%		1.68	%		4.98	%		119	%
	—			(0.47	)	$	10.51		0.44	%	$	23,649		1.70	%		1.70	%		4.47	%		48	%
	—			(0.40	)	$	10.92		1.37	%	$	24,088		1.75	%		1.75	%		3.80	%		56	%
	—			(0.47	)	$	11.17		4.26	%	$	26,126		1.77	%		1.77	%		4.25	%		60	%
	—			(0.54	)	$	11.17		8.76	%	$	27,801		1.77	%		1.77	%		4.81	%		33	%
	—			(0.30	)	$	11.35		5.11	%(E)	$	478,034		0.63	%(F)		0.64	%(F)		5.36	%(F)		41	%(E)
	(0.01	)		(0.66	)	$	11.09		12.21	%	$	411,465		0.64	%		0.64	%		6.00	%		119	%
	—			(0.58	)	$	10.50		1.49	%	$	247,522		0.75	%		0.75	%		5.51	%		48	%
	—			(0.52	)	$	10.91		2.38	%	$	148,737		0.77	%		0.77	%		4.82	%		56	%
	—			(0.58	)	$	11.16		5.30	%	$	117,009		0.77	%		0.77	%		5.24	%		60	%
	—			(0.65	)	$	11.16		9.83	%	$	103,738		0.73	%		0.73	%		5.81	%		33	%
	—			(0.31	)	$	11.34		5.07	%(E)	$	23,671		0.53	%(F)		0.54	%(F)		5.46	%(F)		41	%(E)
	(0.01	)		(0.67	)	$	11.09		12.34	%	$	21,310		0.54	%		0.54	%		6.33	%		119	%
	—			(0.59	)	$	10.50		1.60	%	$	18,013		0.56	%		0.56	%		5.62	%		48	%
	—			(0.53	)	$	10.91		2.54	%	$	15,831		0.60	%		0.60	%		4.96	%		56	%
	—			(0.59	)	$	11.16		5.55	%	$	3,927		0.62	%		0.62	%		5.35	%		60	%
	—			(0.66	)	$	11.15		9.90	%	$	2,515		0.62	%		0.62	%		5.95	%		33	%

^(E) Not annualized.

^(F) Annualized

^(G) Amount is less than $0.005.

^(H) Inception date of Class Y is December 30, 2011. Class Y commenced public offering on January 3, 2012.

See accompanying Notes to Financial Statements.

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 91

High Yield Fund
Financial Highlights

Selected data for a share outstanding throughout the periods indicated

High Yield Fund(A)	Net asset value beginning of period		Net investment income (loss)(B)		Net realized and unrealized gains (losses) on investments		Total from investment operations		Dividends from net investment income
Class A
For the six months ended June 30, 2017 (Unaudited)	$	10.65		0.32		0.38		0.70		(0.33	)
For the year ended December 31, 2016	$	10.14		0.70		0.71		1.41		(0.66	)
Class I
For the six months ended June 30, 2017 (Unaudited)	$	10.65		0.34		0.38		0.72		(0.35	)
For the year ended December 31, 2016	$	10.14		0.73		0.71		1.44		(0.69	)
Class Y
For the six months ended June 30, 2017 (Unaudited)	$	10.65		0.34		0.38		0.72		(0.35	)
For the year ended December 31, 2016	$	10.14		0.74		0.71		1.45		(0.70	)

^(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 (loss) 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.

92 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Distributions from net realized gains			Total distributions			Net asset value end of period		Total return(C)			Net assets at end of period (000’s)		Ratio of total expenses to average net assets			Ratio of net investment income (loss) to average net assets			Portfolio turnover rate(D)
	—			(0.33	)	$	11.02		6.68	%(E)	$	279		1.00	%(F)		5.96	%(F)		66	%(E)
	(0.24	)		(0.90	)	$	10.65		14.29	%	$	185		0.99	%		6.51	%		123	%
	—			(0.35	)	$	11.02		6.82	%(E)	$	12,946		0.70	%(F)		6.29	%(F)		66	%(E)
	(0.24	)		(0.93	)	$	10.65		14.62	%	$	23,989		0.70	%		6.80	%		123	%
	—			(0.35	)	$	11.02		6.87	%(E)	$	13,911		0.60	%(F)		6.36	%(F)		66	%(E)
	(0.24	)		(0.94	)	$	10.65		14.73	%	$	7,752		0.60	%		7.07	%		123	%

^(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 | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 93

Diamond Hill Funds
Notes to Financial Statements
June 30, 2017 (Unaudited)

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”) (formerly Diamond Hill Select Fund), Diamond Hill Long-Short Fund (“Long-Short Fund”), Diamond Hill Research Opportunities Fund (“Research Opportunities Fund”), Diamond Hill Financial Long-Short Fund (“Financial Long-Short Fund”), 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 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. As an investment company, as defined in Financial Accounting Standards Board (“FASB”) Accounting Standards Update 2013-08, the Trust follows accounting and reporting guidance under FASB Accounting Standards Codification Topic 946, “Financial Services – Investment Companies.”

Effective June 12, 2015, the Long-Short Fund closed to most new investors. Effective December 31, 2015, the Small Cap Fund closed to most new investors. Effective April 30, 2016, the Small-Mid Cap Fund closed to most new investors.

With the exception of the Mid Cap Fund, Financial Long-Short 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, Short Duration Fund, Core Bond Fund and High Yield Fund offer three classes of shares: Class A, Class I and Class Y. The Financial Long-Short Fund offers three classes of shares: Class A, Class C and Class I. 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.

Significant Accounting Policies

In October 2016, the U.S. Securities and Exchange Commission (the “SEC”) released its final rule on Investment Company Reporting Modernization (the “Rule”). The Rule which introduces two new regulatory reporting forms for investment companies – Form N-PORT and Form N-CEN – also contains amendments to Regulation S-X which impact financial statement presentation, particularly the presentation of derivative investments. Although still evaluating the impact of the

94 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM

Diamond Hill Funds
Notes to Financial Statements (Continued)
June 30, 2017 (Unaudited)

Rule, management believes that many of the Regulation S-X amendments are consistent with the Funds’ current financial statement presentation and expects that the Funds will be able to comply with the Rule’s Regulation S-X amendments by the August 1, 2017 compliance date.

The following is a summary of the Funds’ significant accounting policies:

Estimates — The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) 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.

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 price in the principal market where such securities are normally traded. Investments in other open-end investment companies are valued at their reported net asset value. In each of these types of 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 that determines valuations based upon market transactions for normal, institutional-size trading units of similar securities. 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 Fair Value Committee. In these cases, the Fair Value Committee, established and appointed by the 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

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 95

Diamond Hill Funds
Notes to Financial Statements (Continued)
June 30, 2017 (Unaudited)

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.

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 securities occur between the time the exchange on which they are traded closes and the time the Funds’ net asset values 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. As of June 30, 2017, three international securities held in the Research Opportunities Fund were fair valued using this systematic valuation model. These securities had a total fair value of $1,921,989, representing 3.1% of net assets of the Fund.

As of June 30, 2017, the Small Cap Fund and Corporate Credit Fund had approximately 1.1% and 0.2%, respectively, of their net assets valued using estimates provided by the Fair Value Committee.

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The Trust determines transfers between fair value hierarchy levels at the reporting period end. There were no transfers between Levels 1 and 2 as of June 30, 2017 based on input levels assigned at December 31, 2016.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk 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 inputs used to value the Funds’ investments as of June 30, 2017:

	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*	$	1,379,760,926	$	—	$	17,127,368	$	1,396,888,294
Registered Investment Companies		375,011,873		—		—		375,011,873
Total	$	1,754,772,799	$	—	$	17,127,368	$	1,771,900,167
Small-Mid Cap Fund
Common Stocks*	$	2,203,526,257	$	—	$	—	$	2,203,526,257
Registered Investment Companies		414,144,812		—		—		414,144,812
Total	$	2,617,671,069	$	—	$	—	$	2,617,671,069

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Diamond Hill Funds
Notes to Financial Statements (Continued)
June 30, 2017 (Unaudited)

	Level 1 - Quoted Prices		Level 2 - Other Significant Observable Inputs		Level 3 - Significant Unobservable Inputs		Total
Mid Cap Fund
Common Stocks*	$	96,799,176	$	—	$	—	$	96,799,176
Registered Investment Companies		24,990,508		—		—		24,990,508
Total	$	121,789,684	$	—	$	—	$	121,789,684
Large Cap Fund
Common Stocks*	$	4,920,570,787	$	—	$	—	$	4,920,570,787
Registered Investment Companies		215,860,809		—		—		215,860,809
Total	$	5,136,431,596	$	—	$	—	$	5,136,431,596
All Cap Select Fund
Common Stocks*	$	136,304,421	$	—	$	—	$	136,304,421
Registered Investment Companies		17,819,265		—		—		17,819,265
Total	$	154,123,686	$	—	$	—	$	154,123,686
Long-Short Fund
Common Stocks*	$	3,897,156,603	$	—	$	—	$	3,897,156,603
Registered Investment Companies		2,089,665,969		—		—		2,089,665,969
Total	$	5,986,822,572	$	—	$	—	$	5,986,822,572
Research Opportunities Fund
Common Stocks*	$	58,230,040	$	1,921,989	$	—	$	60,152,029
Corporate Bonds*		—		967,500		—		967,500
Registered Investment Companies		17,953,059		—		—		17,953,059
Total	$	76,183,099	$	2,889,489	$	—	$	79,072,588
Financial Long-Short Fund
Common Stocks*	$	29,819,896	$	—	$	—	$	29,819,896
Registered Investment Companies		11,146,652		—		—		11,146,652
Total	$	40,966,548	$	—	$	—	$	40,966,548
Short Duration Total Return Fund
Corporate Credit*	$	—	$	37,640,666	$	—	$	37,640,666
Securitized*		—		219,044,103		—		219,044,103
Treasury		—		10,567,123		—		10,567,123
Registered Investment Companies		9,379,665		—		—		9,379,665
Total	$	9,379,665	$	267,251,892	$	—	$	276,631,557
Core Bond Fund
Corporate Credit*	$	—	$	8,606,709	$	—	$	8,606,709
Government Related		—		846,271		—		846,271
Securitized*		—		24,072,594		—		24,072,594
Treasury		—		7,445,890		—		7,445,890
Registered Investment Companies		4,125,508		—		—		4,125,508
Total	$	4,125,508	$	40,971,464	$	—	$	45,096,972
Corporate Credit Fund
Collateralized Debt Obligations	$	—	$	1,040,848	$	—	$	1,040,848

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Diamond Hill Funds
Notes to Financial Statements (Continued)
June 30, 2017 (Unaudited)

	Level 1 - Quoted Prices			Level 2 - Other Significant Observable Inputs		Level 3 - Significant Unobservable Inputs		Total
Corporate Bonds*		—			530,658,404		—		530,658,404
Registered Investment Companies		100,409,712			—		—		100,409,712
Total	$	100,409,712		$	531,699,252	$	—	$	632,108,964
High Yield Fund
Corporate Bonds*	$	—		$	25,253,880	$	—	$	25,253,880
Registered Investment Companies		3,498,521			—		—		3,498,521
Total	$	3,498,521		$	25,253,880	$	—	$	28,752,401
Investments in Securities Sold Short: (Liabilities)
Long-Short Fund
Common Stocks*	$	(1,325,516,237	)	$	—	$	—	$	(1,325,516,237	)
Registered Investment Companies		(12,323,142	)		—		—		(12,323,142	)
Total	$	(1,337,839,379	)	$	—	$	—	$	(1,337,839,379	)
Research Opportunities Fund
Common Stocks*	$	(14,452,410	)	$	—	$	—	$	(14,452,410	)
Financial Long-Short Fund
Common Stocks*	$	(4,568,230	)	$	—	$	—	$	(4,568,230	)

* See Schedule of Investments and Schedule of Investments Sold Short for industry classification.

The following table presents the Small Cap Fund's assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months ended June 30, 2017.

	Common Stocks
Value, December 31, 2016	$	16,040,857
Unrealized gains		1,086,511
Value, June 30, 2017	$	17,127,368

The following table summarizes the valuation techniques used and unobservable inputs used to determine the fair value of Small Cap’s Level 3 common stocks as of June 30, 2017:

	Fair Value	Valuation Technique	Unobservable Input	Range	Impact to Valuation From a Decrease in Input
Common Stocks	$ 17,127,368	Calculation of net asset value of the liquidating trust	Value of assets and liabilities in liquidating trust	$8.42 to $7.92 per share	Decrease in Valuation
		Application of discount rate	Discount rate for lack of marketability	15%-10%	Increase in valuation

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Diamond Hill Funds
Notes to Financial Statements (Continued)
June 30, 2017 (Unaudited)

This security is presently part of a liquidating trust. The Fair Value Committee’s valuation method for this security is based on calculating a share price based on the net asset value by reviewing the latest available public information on assets and liabilities held in the liquidating trust. Once the net asset value is calculated, the Fair Value Committee applies an appropriate market discount rate used to calculate the net present value of the expected cash flows that will potentially be received by the Fund.

Short sales — The Long-Short Fund, Research Opportunities Fund, Financial Long-Short Fund and Corporate Credit 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 is maintained by the custodian and is used as collateral. It is included 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.

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. The use of short sales may cause a Fund to have higher expenses (especially 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 advisor, Diamond Hill Capital Management, Inc. (“DHCM”), to accurately anticipate the future value of a security.

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 are on an overnight and continuous basis. In exchange, the Funds receive cash 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

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Diamond Hill Funds
Notes to Financial Statements (Continued)
June 30, 2017 (Unaudited)

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.

As of June 30, 2017, the fair value of securities loaned and the collateral held were as follows:

	Fair Value of Securities Loaned		Fair Value of Collateral Received
Small Cap Fund	$	154,197,069	$	154,812,326
Small-Mid Cap Fund		179,463,153		181,718,896
Mid Cap Fund		15,027,800		15,206,032
Large Cap Fund		123,313,935		126,248,972
All Cap Select Fund		10,296,900		10,227,127
Long-Short Fund		1,256,884,801		1,279,914,573
Research Opportunities Fund		17,139,054		17,412,687
Financial Long-Short Fund		8,924,787		9,117,249
Short Duration Total Return Fund		4,076,551		4,168,428
Core Bond Fund		2,655,656		2,715,055
Corporate Credit Fund		26,514,109		27,089,968
High Yield Fund		1,991,498		2,031,923

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 is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Discounts and premiums on securities purchased are amortized using the daily effective yield method. The Funds record distributions received from investments in real estate investment trusts (also known as “REITs”) 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.

Share valuation — The net asset value 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.

Federal income taxes — 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 have analyzed their tax positions taken on

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Diamond Hill Funds
Notes to Financial Statements (Continued)
June 30, 2017 (Unaudited)

Federal income tax returns for the current and all open tax years (tax years ended December 31, 2013 through 2016) and have concluded that no provision for income tax is required in these financial statements.

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, Research Opportunities Fund and Financial Long-Short 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, expiring capital loss carry-forwards 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.

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 and losses on investments in the Statements of Operations. Net realized and unrealized gains and 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.

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Diamond Hill Funds
Notes to Financial Statements (Continued)
June 30, 2017 (Unaudited)

Investment Transactions

For the six months ended June 30, 2017, purchases and sales (including maturities) of investment securities (excluding short-term securities and U.S. government obligations) were as follows:

	Purchases		Sales
Small Cap Fund	$	60,927,648	$	220,879,474
Small-Mid Cap Fund		224,215,646		164,447,136
Mid Cap Fund		46,830,669		4,730,389
Large Cap Fund		931,176,546		427,837,167
All Cap Select Fund		36,280,322		38,353,093
Long-Short Fund		923,811,829		887,354,582
Research Opportunities Fund		25,001,712		23,161,402
Financial Long-Short Fund		3,970,787		5,298,539
Short Duration Total Return Fund		162,321,048		82,082,658
Core Bond Fund		9,683,669		6,647,883
Corporate Credit Fund		247,563,775		213,895,627
High Yield Fund		18,946,580		24,886,377

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 six months ended June 30, 2017:

	Total Commissions		Commissions as a % of Average Net Assets
Small Cap Fund	$	114,934		0.01	%
Small-Mid Cap Fund		133,519		0.01	%
Mid Cap Fund		21,872		0.03	%
Large Cap Fund		421,254		0.01	%
All Cap Select Fund		22,983		0.02	%
Long-Short Fund		630,588		0.01	%
Research Opportunities Fund		25,848		0.04	%
Financial Long-Short Fund		6,294		0.02	%

Investment Advisory Fees and Other Transactions with Affiliates

As of June 30, 2017, the Small Cap Fund, Small-Mid Cap Fund, Mid Cap Fund, Large Cap Fund, All Cap Select Fund, Long-Short Fund, Research Opportunities Fund, Financial Long-Short Fund, Short Duration Total Return, Core Bond Fund, Corporate Credit Fund and High Yield Fund 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%,

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Diamond Hill Funds
Notes to Financial Statements (Continued)
June 30, 2017 (Unaudited)

0.50%, 0.70%, 0.90%, 0.95%, 0.95%, 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 0.23% for Class A Shares and Class C Shares, 0.18% for Class I Shares and 0.08% for Class Y shares of each class’ average daily net assets. Prior to June 1, 2017, the fees paid by Class A shares, Class C shares, Class I shares and Class Y shares under the administrative services agreement were 0.24%, 0.24%, 0.19% and 0.09%, respectively, 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 Agreement on behalf of the Funds with BHIL Distributors, LLC (“Distributor”). Pursuant to the Distribution Agreement, the Distributor acts as principal underwriter of each Fund’s shares.

During the six months ended June 30, 2017, the Distributor retained the following amounts in sales commissions from the sales of Class A shares of the Funds as follows:

Small Cap Fund	$	1,952
Small-Mid Cap Fund		3,322
Mid Cap Fund		2,347
Large Cap Fund		21,677
All Cap Select Fund		859
Long-Short Fund		8,313
Research Opportunities Fund		1,544
Financial Long-Short Fund		2,369
Short Duration Total Return Fund		1,837
Corporate Credit Fund		4,978

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 six months ended June 30, 2017, the Funds reduced investment advisory fees as follows:

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Diamond Hill Funds
Notes to Financial Statements (Continued)
June 30, 2017 (Unaudited)

Small Cap Fund	$	109,241
Small-Mid Cap Fund		70,970
Mid Cap Fund		1,414
All Cap Select Fund		4,770
Long-Short Fund		122,437
Corporate Credit Fund		33,349

The Small Cap Fund, Small-Mid Cap Fund, Mid Cap Fund, All Cap Select Fund, Long-Short Fund and Corporate Credit Fund each own Class Y shares of the Short Duration Total Return Fund, thereby making the Short Duration Total Return Fund an affiliated company as defined by the 1940 Act.

Information regarding the Funds’ holdings in the Short Duration Total Return Fund during the six months ended June 30, 2017 is as follows:

Affiliated Fund	Small Cap Fund		Small-Mid Cap Fund		Mid Cap Fund		All Cap Select Fund		Long-Short Fund		Corporate Credit Fund
Short Duration Total Return Fund
Value, December 31, 2016	$	62,169,715	$	40,389,081	$	804,696	$	2,714,551	$	60,270,734	$	15,644,118
Purchases		1,042,305		677,142		13,491		45,511		11,177,889		5,823,998
Change in Unrealized Appreciation/   Depreciation		561,637		364,872		7,270		24,523		620,758		164,319
Value, June 30, 2017	$	63,773,657	$	41,431,095	$	825,457	$	2,784,585	$	72,069,381	$	21,632,435
Income Distributions	$	1,042,305	$	677,142	$	13,491	$	45,511	$	1,177,889	$	323,998

During the six months ended June 30, 2017, the High Yield Fund sold securities to the Corporate Credit Fund and proceeds total $929,215. The High Yield Fund realized gains totaling $14,148 due to the sale of these securities. These transactions, which were effected 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.

Certain Officers of the Trust are affiliated with DHCM or the Distributor. 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. Each Trustee receives an annual retainer of $50,000, an in person meeting fee of $8,000 and a July telephonic meeting fee of $2,000 from DHCM. The Independent Chairperson of the Board also receives and additional $2,500 for each in person meeting. The Audit and Nominating Committee Chairpersons receive an additional $1,500 per

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Diamond Hill Funds
Notes to Financial Statements (Continued)
June 30, 2017 (Unaudited)

Committee meeting. Collectively, the Independent Trustees were paid $170,500 in fees during the six months ended June 30, 2017. 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 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 to shareholders may differ from the character of distributions shown on the Statements of Changes in Net Assets, as certain items such as short-term capital gains are treated as ordinary income for tax purposes.

The tax character of distributions paid during the year ended December 31, 2016 was as follows:

	Small Cap Fund		Small-Mid Cap Fund		Mid Cap Fund		Large Cap Fund
Distributions paid from:
Ordinary income	$	3,063,459	$	7,165,001	$	220,262	$	56,077,970
Long-term capital gains		43,888,223		37,788,535		266,522		196,102,312
Total distributions	$	46,951,682	$	44,953,536	$	486,784	$	252,180,282

	All Cap Select Fund		Long-Short Fund		Research Opportunities Fund		Financial Long-Short Fund
Distributions paid from:
Ordinary income	$	666,708	$	—	$	—	$	—
Long-term capital gains		1,206,738		145,311,014		379,125		—
Total distributions	$	1,873,446	$	145,311,014	$	379,125	$	—

	Short Duration Total Return Fund		Core Bond Fund		Corporate Credit Fund		High Yield Fund
Distributions paid from:
Ordinary income	$	1,680,145	$	301,732	$	25,784,290	$	2,284,238
Long-term capital gains		—		—		—		—
Total distributions	$	1,680,145	$	301,732	$	25,784,290	$	2,284,238

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Diamond Hill Funds
Notes to Financial Statements (Continued)
June 30, 2017 (Unaudited)

The following information is computed on a tax basis for each item as of December 31, 2016:

	Small Cap Fund			Small-Mid Cap Fund		Mid Cap Fund		Large Cap Fund
Net unrealized appreciation (depreciation) on portfolio investments	$	456,647,035		$	339,942,464	$	6,746,388	$	904,821,505
Undistributed ordinary income		859,916			170,314		1,904		6,181,922
Undistributed capital gains		—			6,670,701		133,174		18,139,898
Post October capital losses		(22,883,812	)		—		—		—
Accumulated capital and other losses		—			—		—		—
Accumulated earnings	$	434,623,139		$	346,783,479	$	6,881,466	$	929,143,325

	All Cap Select Fund			Long-Short Fund		Research Opportunities Fund		Financial Long-Short Fund
Net unrealized appreciation (depreciation) on portfolio investments	$	18,247,612		$	730,333,991	$	2,202,153	$	3,195,104
Undistributed ordinary income		155,962			—		—		101,565
Undistributed capital gains		—			41,650,031		428,727		—
Post October capital losses		—			—		—		—
Accumulated capital and other losses		(12,428,881	)		—		—		(2,903,628	)
Accumulated earnings	$	5,974,693		$	771,984,022	$	2,630,880	$	393,041

	Short Duration Total Return Fund			Core Bond Fund			Corporate Credit Fund			High Yield Fund
Net unrealized appreciation (depreciation) on portfolio investments	$	(580,938	)	$	(1,112,006	)	$	(4,001,780	)	$	366,331
Undistributed ordinary income		38,511			4,784			477,546			31,520
Undistributed capital gains		—			—			—			—
Post October capital losses		—			—			(615,858	)		—
Accumulated capital and other losses		(111,574	)		(31,459	)		(387,388	)		—
Accumulated earnings (deficit)	$	(654,001	)	$	(1,138,681	)	$	(4,527,480	)	$	397,851

Post October capital losses listed above incurred after October 31, 2016 and within the taxable year, are deemed to arise on the first day of the Funds’ next taxable year.

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Diamond Hill Funds
Notes to Financial Statements (Continued)
June 30, 2017 (Unaudited)

As of June 30, 2017, the Funds’ federal tax cost of portfolio investments and net unrealized appreciation (depreciation) on portfolio investments were as follows:

	Small Cap Fund			Small-Mid Cap Fund			Mid Cap Fund			Large Cap Fund
Cost of portfolio investments	$	1,346,187,197		$	2,249,427,821		$	113,764,605		$	3,966,398,143
Gross unrealized appreciation	$	476,721,024		$	428,016,874		$	10,818,243		$	1,253,668,628
Gross unrealized depreciation		(51,008,054	)		(59,773,626	)		(2,793,164	)		(83,635,175	)
Net unrealized appreciation on investments	$	425,712,970		$	368,243,248		$	8,025,079		$	1,170,033,453

	All Cap Select Fund			Long-Short Fund			Research Opportunities Fund			Financial Long-Short Fund
Cost of portfolio investments	$	131,985,222		$	4,955,973,443		$	71,510,641		$	36,624,434
Gross unrealized appreciation	$	23,051,965		$	1,097,180,890		$	10,467,219		$	5,406,573
Gross unrealized depreciation		(913,501	)		(66,331,761	)		(2,905,272	)		(1,064,459	)
Net unrealized appreciation on investments	$	22,138,464		$	1,030,849,129		$	7,561,947		$	4,342,114
Net unrealized depreciation on securities sold short	$	—		$	(219,062,430	)	$	(2,526,058	)	$	(947,371	)

	Short Duration Total Return Fund			Core Bond Fund			Corporate Credit Fund			High Yield Fund
Cost of portfolio investments	$	275,676,039		$	45,500,460		$	623,829,911		$	27,933,377
Gross unrealized appreciation	$	1,565,495		$	257,408		$	11,532,348		$	872,235
Gross unrealized depreciation		(609,977	)		(660,896	)		(3,253,295	)		(53,211	)
Net unrealized appreciation (depreciation) on investments	$	955,518		$	(403,488	)	$	8,279,053		$	819,024

The difference between book basis and tax basis net unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.

As of the latest tax year ended December 31, 2016, the following Funds have capital loss carry forwards (“CLCFs”) as summarized in the tables below. CLCFs subject to expiration are applied as short-term capital loss regardless of whether the originating capital loss was short-term or long-term. CLCFs that are not subject to expiration must be utilized before those that are subject to expire.

CLCFs subject to expiration:

	Financial Long-Short Fund		Corporate Credit Fund
Expires December 31, 2017 - short-term	$	2,903,628	$	387,388

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 107

Diamond Hill Funds
Notes to Financial Statements (Continued)
June 30, 2017 (Unaudited)

CLCFs not subject to expiration:

	All Cap Select Fund		Short Duration Total Return Fund		Core Bond Fund
No expiration - short-term	$	9,795,856	$	111,574	$	31,459
No expiration - long-term		2,633,025		—		—
	$	12,428,881	$	111,574	$	31,459

As of the latest tax year ended December 31, 2016, the Financial Long-Short Fund and Corporate Credit Fund utilized $2,839,230 and $10,418,616, respectively, of CLCFs.

The tax character of current year distributions paid and the tax basis of the current components of accumulated earnings (deficit) and any net CLCFs will be determined at the end of the current tax year.

Subsequent Events

The Funds evaluated events from June 30, 2017 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.

Proxy Voting

The investment advisor 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 advisor 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 1-888-226-5595 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 Form N-Q and each second and fourth quarters of each fiscal year on Form N-CSR. Th e complete listing (i) is available on the Commission’s website; (ii) may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; and (iii) will be made available to shareholders upon request by calling 1-888-226-5595. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Monthly portfolio holdings are also available on www.diamond-hill.com.

108 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | 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 January 1, 2017 and held for the entire period from January 1, 2017 through June 30, 2017.

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	1,016.90	1,018.46	6.38	6.39	1.28%
Class C	1,000.00	1,000.00	1,012.90	1,014.74	10.12	10.13	2.03%
Class I	1,000.00	1,000.00	1,018.10	1,019.95	4.89	4.89	0.98%
Class Y	1,000.00	1,000.00	1,018.60	1,020.45	4.39	4.39	0.88%
Small-Mid Cap Fund
Class A	1,000.00	1,000.00	1,034.50	1,018.68	6.22	6.17	1.23%
Class C	1,000.00	1,000.00	1,030.10	1,014.96	9.98	9.91	1.98%
Class I	1,000.00	1,000.00	1,035.50	1,020.17	4.71	4.67	0.93%
Class Y	1,000.00	1,000.00	1,036.40	1,020.67	4.20	4.17	0.83%

DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 109

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	1,038.90	1,019.42	5.48	5.42	1.08%
Class I	1,000.00	1,000.00	1,041.20	1,020.90	3.98	3.94	0.79%
Class Y	1,000.00	1,000.00	1,041.10	1,021.39	3.47	3.44	0.69%
Large Cap Fund
Class A	1,000.00	1,000.00	1,094.10	1,019.94	5.09	4.91	0.98%
Class C	1,000.00	1,000.00	1,089.80	1,016.22	8.96	8.65	1.73%
Class I	1,000.00	1,000.00	1,095.30	1,021.38	3.57	3.45	0.69%
Class Y	1,000.00	1,000.00	1,096.10	1,021.88	3.06	2.95	0.59%
All Cap Select Fund
Class A	1,000.00	1,000.00	1,062.90	1,018.92	6.06	5.93	1.18%
Class C	1,000.00	1,000.00	1,059.10	1,015.20	9.88	9.67	1.93%
Class I	1,000.00	1,000.00	1,064.90	1,020.41	4.52	4.43	0.88%
Class Y	1,000.00	1,000.00	1,064.80	1,020.91	4.01	3.93	0.78%
Long-Short Fund
Class A	1,000.00	1,000.00	1,034.10	1,015.34	9.62	9.53	1.91%
Class C	1,000.00	1,000.00	1,030.20	1,011.62	13.38	13.26	2.66%
Class I	1,000.00	1,000.00	1,035.80	1,016.83	8.11	8.03	1.61%
Class Y	1,000.00	1,000.00	1,036.00	1,017.32	7.60	7.54	1.51%
Research Opportunities Fund
Class A	1,000.00	1,000.00	1,079.30	1,015.80	9.35	9.07	1.81%
Class C	1,000.00	1,000.00	1,075.80	1,012.07	13.20	12.80	2.57%
Class I	1,000.00	1,000.00	1,081.40	1,017.28	7.82	7.58	1.52%
Class Y	1,000.00	1,000.00	1,081.80	1,017.77	7.31	7.08	1.42%
Financial Long-Short Fund
Class A	1,000.00	1,000.00	1,047.90	1,015.14	9.89	9.73	1.95%
Class C	1,000.00	1,000.00	1,044.20	1,011.42	13.67	13.45	2.70%
Class I	1,000.00	1,000.00	1,049.20	1,016.63	8.37	8.24	1.65%
Short Duration Total Return Fund
Class A	1,000.00	1,000.00	1,022.20	1,020.68	4.16	4.16	0.83%
Class I	1,000.00	1,000.00	1,024.20	1,022.13	2.70	2.70	0.54%
Class Y	1,000.00	1,000.00	1,025.80	1,022.62	2.21	2.20	0.44%
Core Bond Fund
Class A	1,000.00	1,000.00	1,026.70	1,020.85	3.99	3.98	0.79%
Class I	1,000.00	1,000.00	1,029.10	1,022.35	2.48	2.48	0.49%
Class Y	1,000.00	1,000.00	1,029.50	1,022.84	1.98	1.97	0.39%
Corporate Credit Fund
Class A	1,000.00	1,000.00	1,049.40	1,020.20	4.71	4.64	0.93%
Class C	1,000.00	1,000.00	1,045.70	1,016.47	8.51	8.39	1.68%
Class I	1,000.00	1,000.00	1,051.10	1,021.69	3.19	3.14	0.63%
Class Y	1,000.00	1,000.00	1,050.70	1,022.18	2.68	2.64	0.53%

110 DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | 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	1,066.80	1,019.86	5.10	4.99	1.00%
Class I	1,000.00	1,000.00	1,068.20	1,021.33	3.58	3.50	0.70%
Class Y	1,000.00	1,000.00	1,068.70	1,021.84	3.06	2.99	0.60%

* Expenses are equal to the Fund’s annualized 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.

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DIAMOND HILL FUNDS | SEMI-ANNUAL REPORT | JUNE 30, 2017 | DIAMOND-HILL.COM 117

INVESTMENT ADVISER: DIAMOND HILL CAPITAL MANAGEMENT, INC.

DISTRIBUTOR: BHIL DISTRIBUTORS, LLC (MEMBER FINRA)

DIAMOND-HILL.COM | 855.255.8955 | 325 JOHN H. MCCONNELL BLVD | SUITE 200 | COLUMBUS, OHIO | 43215

DH-SAR063017

Item 2. Code of Ethics.

Not applicable for semi-annual reporting period.

Item 3. Audit Committee Financial Expert.

Not applicable for semi-annual reporting period.

Item 4. Principal Accountant Fees and Services.

Not applicable for semi-annual reporting period.

Item 5. Audit Committee of Listed Registrants.

Not applicable for semi-annual reporting period.

Item 6. Schedule of Investments.

(a) The Schedule of Investments is included in the Semi-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 second fiscal quarter of 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. Exhibits.

(a)(1)	Not applicable for semi-annual reporting period.
(a)(2)	Certifications required by Item 12(a) of Form N-CSR are filed herewith.
(a)(3)	Not applicable.
(b)	Certification required by Item 12(b) of Form N-CSR is furnished herewith.

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: September 5, 2017

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: September 5, 2017

By (Signature and Title)	/s/ Trent M. Statczar
	Trent M. Statczar, Principal Financial Officer
Date: September 5, 2017