The Fund invests across equity and equity derivatives markets with particular emphasis on the Asia Pacific region.

We believe the following:

• Long-term fundamentals drive long-term asset growth;

• Short-term volatility, liquidity and subordinate market relationships drive short-term profits;

• Combining the above dynamics with acceptable leverage provides superior risk adjusted returns through all market cycles;

• All investment markets demonstrate numerous generic behaviours, which apply universally across sectors, geography and time frames. Because of their persistent nature, these generic principles can over the long term generate significant compound returns.

The Investment Manager's strategy employs a diverse array of proprietary investment techniques to capture these effects.

Investor Suitability

Designed for investors seeking absolute returns uncorrelated to all major asset classes.

The investment strategy is based on mathematically established principles of behavioural finance and rigorous logic that aims to provide positive returns through all market cycles.

The portfolio will hold an underlying portfolio of Pan Asian stocks hedged into Australian Dollars.

Leveraged long and short positions are achieved through derivative positions over the developed APAC equity indices on an intra-day basis.

It is anticipated that the Net Asset Value ("NAV) of the Fund's exposure is limited between 0-300%.

It is the intention of the strategy that the Fund carries no leverage outside of the trading hours of the markets it invests in.

Given the nature of the investment strategy it is likely that a large percentage of semi-annual distributions will be income.

The investment strategy is based on mathematically established principles of behavioural finance and rigorous logic that aims to provide positive returns through all market cycles. The Fund provides investors with long-term asset growth through the investment in an underlying physical portfolio of stocks across the Australasian equity markets, hedged into Australian Dollars, enhanced with short-term trading profits. The primary quantitative factors feeding into Dalton Street's algorithm are the rates of change in the volatility and liquidity of the US and developed APAC markets. These factors remain persistent over time due to the subordinate relationship that the developed APAC markets have to the US markets.

Dalton Street does not envisage the investment strategy changing. If it does the Sub-Investment Manager will provide one months' notice to investors.

The Fund employs strategic and tactical investment strategies that are proprietary. These strategies are wholly quantitative.

Investment Restrictions Investment Universe

The Fund may invest in:

• Listed equities on the Australian, Singapore, Hong Kong, Japan, Korea and Taiwan exchange, including the potential to gain market exposure via Exchange Traded Funds on the US stock exchange;

• Exchange traded derivatives, limited to futures on the exchanges listed;

• Cash or cash equivalent instruments;

• Spot Foreign Exchange instruments for trade settlement; and

• Forward Foreign Exchange contracts to hedge underlying equity exposure back to Australian Dollars.

Diversification of underlying investment holdings

The Fund invests in a range of geographically diverse markets based on sophisticated quantitative and robust risk management techniques. It is designed to identify investment opportunities across exchanges and deliver strong performance in all market conditions.

Asset Allocation (% as a proportion of the NAV of the fund)

• Listed Australian Equities 10-90

• Listed International Equities 10-90

• Exchange Traded Derivatives 0-200

Leverage

The Fund will use leverage every trading day as part of the core strategy within the allowable limits. The anticipated leverage is 200% of gross NAV and the maximum allowable leverage is 300% of gross NAV.

Dalton Street will leverage the portfolio on an intra-day (only) basis through the purchase or sale of index futures contracts. All leverage is then completely removed overnight to prevent excess gap' risk.

Derivatives

Exchange traded derivatives, limited to futures on the exchanges including Australia, Hong Kong, Japan, Singapore, Taiwan and Korea. Forward Foreign Exchange contracts.

Short Selling

The Fund does not intend, and is unlikely, to engage in short selling of equities.