Diamond Hill Investment : Asset Purchase Agreement (Form 8-K)

Other Events

As previously disclosed on February 3, 2021, Diamond Hill Capital Management, Inc. ('DHCM'), an independent active asset manager subsidiary of Diamond Hill Investment Group, Inc., entered into an asset purchase agreement dated February 2, 2021 (the 'Agreement') with Brandywine Global Investment Management, LLC ('Brandywine'), a specialist investment manager of Franklin Resources, Inc., pursuant to which Brandywine would acquire the businesses of Diamond Hill's two high yield-focused mutual funds-the Corporate Credit Fund and the High Yield Fund (the 'Funds'). As anticipated, the transaction closed on July 30, 2021.

Pursuant to the Agreement, DHCM received an initial cash payment at closing of $9,000,000 based upon the closing date net revenue of the Funds, and may receive two additional payments of up to $13,000,000 in the aggregate based on the net revenue of the Funds on the one-year anniversary of the closing date. There can be no assurance that all or any of the anniversary date payment amounts will be received by DHCM.

The following is a summary of assets under management as of July 31, 2021 of DHCM (in millions):

By Investment Vehicle
Proprietary funds	$	18,850
Sub-advised funds	3,734
Separately managed accounts	6,859
Total	$	29,443

By Investment Strategy
Small Cap	$	586
Small-Mid Cap	2,996
Mid Cap	1,072
Large Cap	20,129
Large Cap Concentrated	52
All Cap Select	421
Long-Short	2,077
Global/International	37
Micro Cap	14
Short Duration Securitized Bond	1,340
Core Fixed Income	728
Long Duration Treasury	51
(Less: Investments in affiliated funds)	(60)
Total	$	29,443

The Diamond Hill Corporate Credit and High Yield funds were reorganized into the BrandywineGLOBAL funds effective after the transaction closed on July 30, 2021; therefore, those assets ($3.5 billion) are not included in the ending assets under management shown above as of July 31, 2021.