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Dalton Asia Fund February 2020 Newsletter

Fund Description

The Dalton Asia Fund is a long/short equity fund that invests opportunistically across Asia. The

Fund strives to buy shares in companies that we believe are likely to benefit from the dramatic

growth and structural changes taking place in Asia, while shorting shares of weak companies that

we believe have catalysts for declines. In addition to performing onsite due diligence and rigorous

fundamental analysis, the investment team engages in active collaboration with management

when appropriate. Mr. Rosenwald also manages several other Pan-Asia and Japanese separate

accounts and other products.

FUND AT A GLANCE AS OF

FEBRUARY 2020

Manager ……………………........ James B. Rosenwald III

Investment Style…………….……....Long/Short Equities

Index …………..…..MSCI AC Daily TR Net Asia Pacific

Inception Date …….......................................……..Jan. 08

Fund Assets (February 29)..……………….....….…..$41 mil

Asian Equity Assets (February 29)……………...$2.7 bil**

Firm Assets (February 29)..….............................$2.9bil

Net Asset Value/Share (February 29)….........….$149.94

Minimum Investment …….…….……………....…..…...$1 mil

High Watermark ............ ……………………..……………...Yes

Structure . ………………………................... Master-Feeder

Administrator………………..……..………Northern Trust

Prime Broker………………………………...Morgan Stanley

Auditor ....……………………....PricewaterhouseCoopers

CLASS A SHARES (closed)***

Liquidity ……………………………………………………..Monthly

Management Fee/Incentive Fee..……...…….…1.5%/20%

CLASS B SHARES***

Liquidity ………………………….…..Annual (1-yr. Lock-up)

Management Fee/Incentive Fee..……….….….1.5%/20%

CLASS C SHARES***

Liquidity ... …………………………..Annual (2-yr. Lock-up)

Management Fee/Incentive Fee..………..………...1%/15%

CONTACT INFORMATION

Telephone.. .................... …………….…………..424.231.9100

Email .............................. info@daltoninvestments.com

1601 Cloverfield Boulevard – Suite 5050 N

Santa Monica, California 90404

www.daltoninvestments.com

MONTHLY PERFORMANCE (%) NET OF FEES*

Fund At A Glance*

GROWTH OF $1,000

Fund Performance (Net of Fees)*

Cumulative Net Total Return 49.93%

Compound Annual Growth Rate 3.38%

Percentage of Up Months 56.85%

Percentage of Down Months 43.15%

Best Net Month Return 18.86%

Worst Net Month Return -16.14%

Standard Deviation 12.81%

Sharpe Ratio 0.21

Largest Net Consecutive Gain 45.27%

Largest Net Drawdown -34.74%

Private and Confidential — Not for Public Distribution

*Past performance is no guarantee of future results.

All investments involve risk including the loss of

principal. Please see final pages for performance

disclosures.

**Asian equity assets include all assets managed by

James B. Rosenwald III, which include the assets

from the Dalton Asia Fund, several other Pan-Asia

and Japanese separate accounts and other products.

***There are no further issuances of Class A Shares.

Please review the Fund’s offering memorandum for

full terms of Class A, B and C Shares.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year MSCI

Asia

2020 -3.60% -7.30% -10.64% -8.73%

2019 -0.87% 3.21% 3.14% -2.71% 1.42% 0.14% -2.74% -6.50% 0.26% 1.88% -1.06% -1.31% -5.41% 19.36%

2018 -1.42% -1.28% -2.01% -2.73% -1.18% -0.53% -0.35% 0.24% -5.26% -5.15% -0.39% -3.38% -21.23% -13.52%

2017 1.83% 1.68% 2.10% 1.63% 1.37% 1.79% 0.90% 1.99% -1.67% -1.05% 1.12% -0.38% 11.82% 31.67%

2016 -6.93% -6.19% 7.60% 3.28% 1.08% 0.14% 3.82% 1.66% 3.43% 1.69% 0.40% -1.43% 7.90% 4.89%

2015 0.14% 0.06% 0.44% 6.78% 2.16% -1.05% -3.38% -2.85% 1.24% 2.24% -0.04% 0.62% 6.18% -1.96%

2014 4.77% -1.06% -1.64% -1.88% -1.88% 1.34% 1.03% 1.05% 0.43% -1.76% -1.85% -1.25% -2.87% 0.00%

2013 5.64% 0.36% -0.13% -0.30% 3.61% -1.71% 1.20% 1.49% 2.86% 1.85% 1.89% 2.42% 20.72% 11.97%

2012 6.55% 5.80% 1.23% -1.52% 0.64% -0.31% 0.30% 2.12% 3.99% -0.65% 3.56% -1.06% 22.24% 16.78%

2011 2.80% -0.20% -0.05% 0.07% 0.34% 0.05% -1.14% -3.77% -5.15% 2.29% -4.18% 0.36% -8.58% -15.11%

2010 -0.08% 3.79% 4.69% 7.56% -2.88% 2.51% 0.54% 0.89% 3.32% -1.27% 5.03% 3.50% 30.77% 17.02%

-7.3%

-10.6%

3.4%

-6.1%-8.7%

2.3%

-15%

-10%

-5%

0%

5%

10%

Dalton Asia

Fund

MSCI AC Daily

TR Net Asia

Pacific IndexLatest Month Year to Date Since Inception

(Annualized)

$0

$50

$100

$150

$200

$250

Jan-08 Jan-11 Jan-14 Jan-17 Jan-20

Dalton Asia Fund

MSCI AC Daily TR Net Asia Pacific Index

2

Dalton Asia

Fund

MSCI AC Daily TR Net

Asia Pacific

Cumulative Net Total Return 49.9% 32.6%

Compound Annual Growth Rate 3.4% 2.3%

Standard Deviation 12.8% 17.1%

Largest Net Consecutive Gain 45.3% 59.8%

Largest Net Drawdown -34.7% -51.1%

Sharpe Ratio 0.21 0.10

Correlation 0.54

Beta 0.46

Risk Analysis (Since Inception)* RISK COMPARISON

RISK RETURN SCATTERPLOT MONTHLY RETURN DISTRIBUTIONS

Asset Allocation and Portfolio Information GEOGRAPHIC BREAKDOWN SECTOR BREAKDOWN

Country Long Short Net

China / Hong Kong 29% 0% 29%

India 19% 0% 19%

Japan 36% -13% 23%

Singapore 6% 0% 6%

South Korea 14% 0% 14%

United States 0% -10% -10%

Company Sectors % Equity

Shinsei Bank Ltd Financials 9.2%

Century City Intl Hldgs Consumer Discretionary 7.0%

Asia Orient Hldgs Real Estate 6.5%

Singapore Reinsurance Corp Ltd Financials 6.0%

Bajaj Hldgs And Investment Swap Financials 5.8%

CK Hutchison Holdings Ltd Industrials 5.8%

Meritz Financial Group Inc Financials 5.5%

Far East Consortium Intl Real Estate 5.4%

Piramal Enterprises Ltd Health Care 4.6%

Time Technoplast Ltd Materials 4.2%

TOP 10 LONG POSITIONS

**The sector “Indices” includes ETF’s, index funds, and index options, which although technically in the “Financials” GICS Sector due to being financial products, are diversification tools and

not companies in the financial industry.

*Past performance is no guarantee of future results. All investments involve risk including the loss of principal. Please see final pages for performance disclosures.

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

10.0% 15.0% 20.0%

An

nu

lize

d R

etu

rn

Annulized Standard Deviation

Dalton Asia Fund MSCI Daily TR Net AC Asia Pacific Index

0

10

20

30

40

50

Mo

nth

ly P

eri

od

s

Return Range %

3

Return Contribution* and Exposure Information

HOLDINGS SUMMARY AND CONTRIBUTION

Arithmetic Sum of Returns (Net)**

Dalton Asia

Fund

Return

Long

Return

Short

Return

FX

Return

Cash

Return

MSCI AC

Daily TR Net

Asia Pacific

Latest Month -7.3% -8.5% 1.3% 0.1% -0.2% -6.1%

2020 YTD -10.6% -13.0% 2.2% 0.2% -0.3% -8.7%

2019 -5.4% 5.8% -9.3% 0.3% -2.0% 19.4%

2018 -21.2% -26.7% 4.2% 0.7% -1.7% -13.5%

2017 11.8% 28.3% -14.9% -0.8% -1.3% 31.7%

2016 7.9% 15.5% -5.3% -1.1% -0.5% 4.9%

2015 6.2% 2.5% 4.2% -0.3% -0.6% -2.0%

2014 -2.9% 2.8% -5.0% 0.5% -1.1% 0.0%

2013 20.7% 16.3% 3.1% 0.6% -0.8% 12.0%

2012 22.2% 34.1% -13.9% 1.4% -0.9% 16.8%

2011 -8.6% -17.0% 9.2% 0.1% -0.9% -15.1%

2010 30.8% 32.9% -1.6% -3.2% -0.4% 17.0%

Annualized

Since Inception 3.4% 2.4%

Average Annual Exposure

Gross Long

Exposure

Gross Short

Exposure

Total Gross

Exposure

Total Net

Exposure

Latest Month 104% 23% 127% 81%

2020 YTD 105% 23% 127% 82%

2019 97% 31% 128% 65%

2018 100% 66% 166% 35%

2017 101% 67% 168% 34%

2016 96% 58% 154% 38%

2015 103% 66% 169% 37%

2014 115% 86% 201% 29%

2013 119% 84% 203% 36%

2012 119% 61% 180% 59%

2011 114% 51% 165% 62%

2010 106% 50% 156% 56%

Average 101% 55% 156% 46%

Portfolio Concentration

Number of

Long

Positions

Number of

Short

Positions

Largest

Long

Position

Largest

Short

Position

10 Largest

Longs

10 Largest

Shorts

Latest Month 26 11 9.2% -6.3% 59.9% -22.7%

2020 YTD 26 11 9.6% -6.0% 59.7% -22.1%

2019 34 18 8.0% -6.8% 51.1% -24.4%

2018 38 35 6.7% -6.7% 48.3% -36.8%

2017 39 37 7.1% -5.1% 46.6% -33.4%

2016 37 34 5.5% -5.1% 40.7% -31.9%

2015 42 30 5.0% -7.3% 38.7% -36.4%

2014 57 35 4.8% -6.3% 35.9% -35.1%

2013 60 43 5.0% -4.5% 36.0% -26.6%

2012 51 27 4.7% -3.8% 37.9% -26.9%

2011 46 23 5.4% -3.6% 40.5% -28.0%

2010 45 19 6.2% -3.8% 41.4% -33.9%

Average 43 26 6.1% -5.1% 41.4% -29.0%

Performance Update (USD)*

The Dalton Asia Fund (the “Fund”) returned -

7.3% net of fees this month compared to -6.1% for

the MSCI AC Daily TR Net Asia Pacific Index. The

Fund ended the month with 81% net exposure on a

notional basis.

The Fund’s Japan book took a hit as declines in

long positions were only partially offset by short

positions. The Fund’s India exposure detracted as

well due to losses in long positions.

Global manufacturing activity suffered the

steepest slowdown in over a decade as countries

slowed down manufacturing output due to Covid-19.

In addition to the supply-side setback, the virus has

also depressed global demand as consumers chose to

stay home.

Japan

Japanese equity positions were detractors during

the month. The entire market was the target of the

sell-off as the impact of coronavirus materialized.

Commentary

*Past performance is no guarantee of future results. All investments involve risk including the loss of principal. Please see final pages for performance disclosures.

**The performance component returns are arithmetic calculations and will not equal the Fund Return, which is a geometric calculation.

*Past performance is no guarantee of future results. All investments involve risk including the loss of principal. Please see final

pages for performance and benchmark disclosures.

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

Jan-08Jan-09Jan-10Jan-11Jan-12Jan-13Jan-14Jan-15Jan-16Jan-17Jan-18Jan-19Jan-20

Gross Long Gross Short Net Fund Exposure

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The government announced various restraining

orders, such as the cancellation of cultural and

sporting events over the next two weeks. Long

positions detracted from performance but were

partially offset by gains in short positions. The sell-

off is happening for a reason, and we are not

underestimating the real economic impact from the

coronavirus. However, the challenge is no greater

than what we have experienced in the past, and we

believe this is a surmountable hurdle in the next 6-

12 month time horizon. All of the Fund’s portfolio

companies have strong balance sheets for survival

during this period. Thus, we do not expect to trade

much during this quarter.

India

Indian equities were down in-line with the broader

MSCI Emerging Markets Index during the month as

the global risk-off trade due to coronavirus concerns

intensified. However, macro data released for the

month of February was encouraging with rising

industrial production and falling consumer

inflation. India’s trade deficit came in at a one-year

low, and the current account deficit is expected to

fall to 0.9% of GDP for FY2020 from 2.7% one year

ago. In our opinion, a sharp fall in oil prices over the

recent days should further help improve India’s

external balance and fiscal deficit and give more

headroom for the Reserve Bank of India to cut

interest rates to support growth.

China

China is ahead of the rest of the world in terms

of moving past the peak of coronavirus impact.

China’s new infection numbers hit a high at the

beginning of February and have since declined while

the rest of the world is still seeing rising numbers of

virus infection cases. After a lengthened Chinese

New Year holiday period, workers have begun to go

back to work and economic activity has started to

resume.

Macroeconomists are cutting earnings forecasts

globally due to the virus impact. Relatively speaking,

we cautiously expect that China likely would

outperform other emerging markets due to its

ability and willingness to implement a stronger

stimulus response. China has announced fiscal

stimulus measures equivalent to about 1.2% of GDP,

including some tax cut measures targeted at

alleviating the burden of small businesses and

manufacturers. These measures will likely be

complemented by further monetary support.

Commentary (cont’d)

5

Disclosure

This document has been prepared for qualified investors, is provided for informational purposes only, and does not constitute a solicitation of any shares in any

investment vehicle managed by Dalton Investments LLC. Such solicitations can only be made to qualified investors by means of the private placement

memorandums, which describe, among other things, the risks of making an investment. Additionally, this presentation does not constitute investment advice of

any kind.

All of the information in this document relating to Dalton Investments LLC or its affiliates (collectively, “Dalton” or the “Firm”) is communicated solely by

Dalton, 1601 Cloverfield Boulevard, Suite 5050 N, Santa Monica, CA 90404, regulated by the U.S. Securities and Exchange Commission (SEC). SEC registration

does not imply SEC endorsement. No representation or warranty can be given with respect to the accuracy or completeness of the information, or with respect

to the terms of any future offer of transactions conforming to the terms hereof. Certain assumptions may have been made in the analysis which resulted in any

information and returns/results detailed herein. No representation is made that any results/returns indicated will be achieved or that all assumptions in

achieving these returns have been considered or stated. Additional information is available on request. Opinions and estimates offered constitute our judgment

and are subject to change without notice, as are statements of financial market trends, which are based on market conditions. Unless otherwise indicated, figures

presented are preliminary, unaudited, subject to change and do not constitute Dalton’s standard books and records.

Individual portfolio account returns and holdings within a referenced Dalton composite may vary substantially for such factors including, among others,

account specific restrictions – e.g. whether currency investments are permitted, timing of transactions, contributions, withdrawals, and market conditions at the

time of investment.

PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE PERFORMANCE. THE VALUE OF THE INVESTMENTS AND THE INCOME FROM THEM

CAN GO DOWN AS WELL AS UP AND AN INVESTOR MAY NOT GET BACK THE AMOUNT INVESTED. THESE INVESTMENTS ARE DESIGNED FOR

INVESTORS WHO UNDERSTAND AND ARE WILLING TO ACCEPT THESE RISKS. PERFORMANCE MAY BE VOLATILE, AND AN INVESTOR COULD

LOSE ALL OR A SUBSTANTIAL PORTION OF ITS INVESTMENT.

Please note that neither the Funds/Composites nor the Investment Manager/Investment Advisor complies with the requirements of the Alternative Investment

Fund Managers Directive (“AIFMD”) of the European Union. No direct or indirect offering or placement of shares by or on behalf of the Funds/Composites or

the Investment Manager may be made to or with investors in member states of the European Union in breach of either the applicable requirements under the

AIFMD or the private placement regime in each relevant member state. You are receiving this presentation either because (a) you are an existing investor and we

are sending you an update to discharge our obligation, or (b) you have previously requested for submission of such information. If neither of these apply to you,

please kindly ignore this presentation and reply to InvestorRelations@daltoninvestments.com with the subject “AIFMD distribution list review” as soon as

possible so that we can remove you from our relevant distribution list in the future.

Any specific securities referenced herein are holdings as of the date identified in the document and any performance information relates only to the period

covered by this document. No inferences should be made as to the profitability of specific positions overall.

Returns present actual gross and net performance for a representative account as provided by a third party administrator. Gross-of-Fees Returns for the Fund

are presented before management and performance fees, but after all trading expenses, withholding taxes, custodial fees (if applicable) and other administrative

fees. The Net-of-Fees Returns are calculated by deducting the account’s actual assessed 1.5% management and 20% performance fees. These represent the

current highest management and performance fee schedule of the Fund. These fees are accrued monthly using a representative, full highest fee paying investor.

The Net-of-Fee Returns include reference to the Fund’s high-water mark, as applicable, assume reinvestment of all income and include subscriptions and

redemptions for the representative account. Actual fees may differ due to various factors including, but not limited to, account size. Additional information

regarding the Firm’s fees is available upon request and may also be found in Dalton Investments LLC’s Form ADV Part 2. Information regarding year to date

and annual Performance Results is compounded. Investment results for each investor will vary from the Performance Results shown herein due to, among other

factors, differing investment dates and additional contributions or withdrawals. Performance is expressed in US Dollars. To compute currency exchange rates,

the Fund uses Bloomberg at 4PM EST close while the Benchmark uses WM Reuters at 4PM GMT close, which may result in differing exchange rates.

The Fund’s benchmark is the MSCI All Country Daily Total Return Net Asia Pacific Index (MSCI Asia Pacific (USD), symbol: NDUEACAP) (the “Benchmark”)

and is compiled by Morgan Stanley Capital International, Inc. It is a total return, free float-adjusted, capitalization-weighted index that is designed to track the

performance of stock markets in 13 Pacific region countries, including Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, New Zealand, the

Philippines, Singapore, Taiwan and Thailand. Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international

indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. For comparison purposes, Benchmark

returns do not reflect transaction costs, investment management fees or other fees and expenses that would reduce performance in an actual account. It is not

possible to invest in the Benchmark. The Fund’s portfolio account has held and is expected to continue to hold securities that are not included in the Benchmark

and the Firm makes no representations that the Fund is comparable to the Benchmark in composition or element of risk involved.