Heather Brilliant and the folks at Diamond Hill [profile] are rolling out a sixth strategy from the $33.5-billion-AUM (as of November 30), publicly traded fund firm's $5.9-billion-AUM fixed income team.

Heather E. Brilliant Diamond Hill Investment Group, Inc. CEO

This morning, Brilliant, CEO of Diamond Hill, and Henry Song, a portfolio manager there, unveiled the launch of the Diamond Hill Securitized Credit Fund. Columbus, Ohio-based Diamond Hill Capital Management, Inc. serves as administrator, fund accountant, investment advisor, and transfer agent to the new fund, and Song is its PM.

The Diamond Hill Securitized Credit Fund is an interval fund (not a traditional open-end mutual fund), apparently the first from the Diamond Hill fixed income team. More specifically, the new fund is, per its prospectus, a "continuously offered, non-diversified, closed-end investment management company." The Diamond Hill team confirms that the interval fund will offer quarterly redemptions (of being 5 and 25 percent of its AUM) while accepting daily inflows (share purchases).

Diamond Hill's new interval fund comes in three flavors: A shares (DSCAX); I shares (DHCIX); and R shares (DSCRX). The management fee for all three share classes is 125 basis points.

The administration fee for the fund's A shares and I shares is 50bps, and they both require a $2,500 minimum initial investment. R shares come with a 10bps administration fee and require a $50-million minimum initial investment.

Brilliant describes the new interval fund as leveraging Diamond Hill's "deep and differentiated expertise in securitized assets."

"Launching this fund adds to the team's ability to deliver portfolios with the differentiated risk/return profile our clients seek," Brilliant states.

Song adds that "the market has historically been less efficient in pricing these securites [in the securitized sector]."

"That provides a rich opportunity set for our disciplined approach to bottom-up security selection to uncover underpriced securities," Song states.

News of the interval fund's debut comes two months after the Diamond Hill team launched their fifth fixed income strategy, in both mutual fund and institutional separate account form. Yet the interval fund actually soft-launched first, as its inception date was September 30.

The new Diamond Hill interval fund's other service providers include: Cohen & Company, Ltd. as independent accounting firm; ACA's Foreside Financial Services, LLC as distributor and principal underwriter; State Street Bank and Trust Company as custodian; Thompson Hine LLP as counsel; and Ultimus Fund Solutions, LLC as sub-accounting agent and sub-transfer agent. 

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