Dividends & Capital Gains | Diamond Hill Investments

Cost Basis Reporting

Importance Notice Regarding Cost Basis Reporting for the Diamond Hill Funds.

Fund Distributions

Ordinary Income dividends are the result of portfolio income earned in excess of the Fund's expenses. Short-term capital gains are the result of realized capital gains generated upon the disposition of the Fund's portfolio securities that are held less than one year. Short-term capital gains are taxed as ordinary income. Long-term capital gains are the result of realized capital gains generated upon the disposition of the Fund's portfolio securities that are held in excess of one year. Long-term capital gains are taxed at a maximum rate of 15%. Diamond Hill does not offer tax advice. For tax advice specific to your individual situation, consult a tax advisor.

Accumulated Realized Capital Loss Positions

The Diamond Hill Funds listed below have accumulated realized capital losses as of December 31, 2011 that may be used to offset future capital gains. Based on calculations at December 31, 2011 each Fund below may be able to realize capital gains, shown as a percent of fund net assets, before future capital gain distributions may be required.*

*The accumulated realized capital loss positions presented are estimates based on current accounting records. These accumulated capital loss estimates do not consider relevant tax adjustments such as post-30 day wash sales. Please note that because estimation of all potential differences and transactions affecting the capital gain distributions is not possible at this time, these estimates are subject to change and can change by a significant amount.

Distributions