Dalton High Yield Mortgage

Fund

Fund Investment Objectives

The Dalton High Yield Mortgage Fund seeks to own a diversified long/short portfolio of off-the-run Residential Mortgage Backed Securities (RMBS) whose yields are attractive based on intrinsic cash flows under conservative, bond-specific assumptions of prepayments, default rates, modifications, servicer advances and projected losses. Long/Short investment based on the intrinsic value of RMBS minimizes the impact of shifts in market prices as returns are not dependent on the resale of bonds, while providing for upside if the assumptions used are more conservative than actual results. Interest rate or property value hedges or other short positions may be used if deemed beneficial to portfolio returns.