Diamond Hill vs Morgan Stanley Emerging Markets Domestic Debt Fund

Diamond Hill Investment Group Inc and Morgan Stanley Emerging Markets Domestic Debt Fund Inc are presented together to compare business models, financial performance, and market context in a neutral, accessible way. This page highlights similarities and differences to inform readers. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

DHIL

Metric

EDD

$413.41M

Market Cap

$369.98M

N/A

Potential Profit

N/A

Analyst Rating

N/A

Investment Analysis

Diamond Hill

DHIL

Pros

Diamond Hill Investment Group has demonstrated consistent revenue growth, with a 10.5% increase in 2024 compared to the previous year.
The company maintains a strong profitability profile, with a trailing twelve-month net income margin above 30%.
It offers a high dividend yield of over 4%, supported by a history of regular and special dividend payments.

Considerations

The business is highly dependent on asset management fees, making it sensitive to market volatility and asset flows.
Limited analyst coverage and low trading volume may reduce liquidity and increase price volatility for investors.
Its valuation is closely tied to US equity market performance, which could be a headwind during periods of market weakness.

Morgan Stanley Emerging Markets Domestic Debt Fund

EDD

Pros

Morgan Stanley Emerging Markets Domestic Debt Fund provides exposure to a diversified portfolio of emerging market government bonds denominated in local currencies.
The fund offers a high dividend yield of over 10%, appealing to income-focused investors seeking yield in fixed income.
It is managed by Morgan Stanley Investment Management, a well-established asset manager with expertise in emerging markets debt.

Considerations

The fund's performance is highly sensitive to currency fluctuations and sovereign credit risks in emerging markets.
Closed-end fund structure means the share price can trade at a significant premium or discount to net asset value, adding volatility.
Investors face exposure to political and economic instability in emerging market countries, which can affect bond valuations and income.

About The Companies

Diamond Hill (DHIL)

Diamond Hill Investment Group Inc. is an American financial services company that provides investment advisory and fund administration services. It operates primarily through its wholly-owned subsidiary, Diamond Hill Capital Management (DHCM). DHCM serves as an investment adviser and administrator for the Diamond Hill Funds, a series of mutual funds. The company also offers its services to private funds, separately managed accounts for institutional clients, and other pooled investment vehicles. Diamond Hill focuses on offering a range of investment strategies tailored for long-term, institutionally-oriented investors. By providing these specialised portfolio management services, the firm has established itself within the competitive asset management industry. As with any investment, its value can go down as well as up.

Morgan Stanley Emerging Markets Domestic Debt Fund (EDD)

The Morgan Stanley Emerging Markets Domestic Debt Fund (EDD) is a closed-end investment fund that aims to provide a high level of current income for investors. Its secondary goal is long-term capital appreciation. To achieve this, the fund invests at least 80% of its assets in the domestic debt of emerging market countries. This means it buys debt, like government or corporate bonds, that is issued in the local currency of countries such as Brazil, Mexico, Poland, and Indonesia. As a non-diversified fund, its performance can be heavily influenced by a smaller number of holdings. Managed by Morgan Stanley Investment Management, it offers investors a way to gain exposure to the economies of developing nations. As with any investment, particularly in emerging markets, values can fall as well as rise, and past performance is not an indicator of future results.

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Trusted & Regulated

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6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

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Comparison Snapshot

Investment Analysis

Diamond Hill

Pros

Considerations

Morgan Stanley Emerging Markets Domestic Debt Fund

Pros

Considerations

About The Companies

Buy DHIL or EDD in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Discover More Comparisons

Diamond Hill vs MBIA

Diamond Hill vs Citizens & Northern

Southern First vs Morgan Stanley Emerging Markets Domestic Debt Fund

Frequently asked questions

What is the primary difference in business models between Diamond Hill and the Morgan Stanley Emerging Markets Domestic Debt Fund?

How does the source of revenue influence risk and stability for these two investments?

What does the dividend yield tell us about income prospects for Diamond Hill and the Morgan Stanley fund?

How does liquidity or trading dynamics differ between these two, and why does that matter?

What are the key sensitivities each investment faces in response to broader market shifts?

What macro factors could differentially impact these two investments?

How do management and structure influence potential performance?

What should a beginner consider when timing or evaluating these assets over time?

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Comparison Snapshot

About The Companies