DALTON STRATEGIC PARTNERSHIP LAUNCHES NEW EUROPEAN ABSOLUTE RETURN FUND

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1 13 th January 2010 DALTON STRATEGIC PARTNERSHIP LAUNCHES NEW EUROPEAN ABSOLUTE RETURN FUND Dalton Strategic Partnership (DSP), the global investment specialists, will launch the MST European Fund on 1 st February 2010 as a sub-fund of the Melchior Selected Trust, a Luxembourg SICAV. The new Fund will aim to deliver positive absolute returns, uncorrelated to equity or bond markets. Managed by Leonard Charlton, a former portfolio manager at GLG and trader at Goldman Sachs, the Fund will follow the same investment approach as his current hedge fund, the Melchior European Fund. Launched in October 2006, that fund achieved a positive return of +8.01% in 2007, +6.26% in 2008 and +4.29% in 2009 which places it in the first quartile of Morningstar s universe of European equity long/short funds. Since launch, the Melchior European Fund has returned 22.2% compared with a return of -16.6% of the MSCI Pan European Index. This return has been achieved with an annualised volatility of 6.43%, less than one third of the volatility of the MSCI Pan European Index. The MST European Fund marks the first time the long/short investment capabilities of Leonard Charlton will be available to investors in a regulated product. The new Fund will use the full UCITS III powers including leverage and derivatives to replicate the strategy employed by the Melchior European Fund. Commenting on the new Fund, Magnus Spence, Partner at DSP, said:

2 We believe that the time is right to launch a UCITS-compliant version of the Melchior European Fund. The MST European Fund is an ideal vehicle for those investors looking to invest in a European equity long/short fund via a regulated product, which draws on Leonard s hedge fund management experience. The new Fund will implement the same strategy as the existing hedge fund which Leonard has managed so successfully over the last 3 years. We do not envisage any changes to the strategy arising from the UCITS structure. Leonard is an outstanding absolute return fund manager who demonstrated his ability to deliver consistent, positive returns in weak market conditions during 2008 when he achieved positive returns in 10 out of 12 months that year. He is also one of the very few hedge fund managers to make a positive return in both 2008 and He has trading and shorting in his blood. The MST European Fund combines a fundamental approach to selecting long and short positions, with an active trading overlay. The Fund will comprise positions, normally in individual European stocks and will typically operate within a net exposure range of +/- 20%. Gross exposure will normally be between 80%- 150%. Over the last three years, Leonard has demonstrated his ability to generate alpha from a wide variety of market exposures which are often overlooked by other hedge fund managers. In particular, over the last 3 years, Leonard has achieved almost 1.0% of alpha per month from short positions. As a result, the Melchior European Fund has no correlation with European equity markets or with the EuroHedge s index of European long/short managers. explained Spence.

3 Commenting on the new Fund, Leonard Charlton, said: I am excited to be launching this new UCITS III fund. DSP has proven experience of marketing and managing UCITS funds and I believe that the MST European Fund will be a welcome addition to the existing range of long-only funds offered within the Melchior Selected Trust will see a more choppy and challenging market environment which will be well-suited to my flexible style of investing. My approach is ideal for investors who seek positive returns with a low level of volatility. Concluding, Magnus Spence, said: Leonard Charlton has an enviable track record of generating positive, uncorrelated returns in the toughest market conditions. The launch of the MST European Fund offers investors access to a regulated fund which has daily dealing and which should deliver positive annual returns whatever the market conditions. In an era of increased economic and market uncertainty, this fund offers a valuable addition to the UCITS III space. Fund Management Team Leonard Charlton, Fund Manager, has 11 years experience in trading and investment. He started his career as an equity trader for Goldman Sachs before moving to GLG in 2003 to work with the European Long/ Short team where he was a Co-manager of the GLG Europe Opportunities Fund in 2004/2005. He joined DSP in 2006 to launch the Melchior European Fund. David Robinson, Analyst, has 5 years experience in investment. He joined DSP in 2005 after qualifying as a lawyer at Freshfields Bruckhaus Deringer. He started his investment career on the Melchior North America Opportunities Fund in , before joining the European team for the

4 launch of the Melchior European Fund in October David has a degree in Modern History from New College, Oxford. BENJAMIN BILLIARD, Analyst, has 7 years of financial markets experience. He started his investment career as a sell-side analyst covering Telecom Services at Merrill Lynch. He joined the buy-side in 2006, initially covering Telecom Services and Banks at Alken and subsequently as an analyst at Gandhara Capital, a long-short equity fund. Benjamin has a business degree from HEC and an MBA with concentration in finance from The Wharton School. DANIEL BLAKE, Trader, has 22 years of market experience. Prior to joining DSP in 2002, Daniel was Head of Trading at Magus Asset Management for a period of nine years. He has also been Head of Trading at Enskilda Asset Management. Key features of the fund: Fund domicile: Luxembourg Fund structure: Société d Investissement à Capital Variable (SICAV) Administrator/Custodian: Banque Priveé Edmond de Rothschild Currency: available in Sterling, Euro and US dollars (all hedged). Minimum Investment $10,000 for retail investors in A & C share classes, $250,000 for institutional investors in B & D share classes. Management Fees 2.0% for retail investors in A & C share classes and 1.5% for institutional investors in B & D share classes. Performance fees: 20% of returns in excess of 1 month EURIBOR. A highwater mark hurdle also applies.

5 Liquidity: Daily Distributor status: U.K. [ENDS] For further information please contact: Marlene Scott, Polhill Communications Vanessa Chance, Polhill Communications Magnus Spence, Partner, Dalton Strategic Partnership LLP Richard Jones, Partner and Head Retail Sales, Dalton Strategic Partnership Notes to Editors Dalton Strategic Partnership (DSP) is a global investment management firm founded in 2002 by Andrew Dalton and a number of former colleagues from Mercury Asset Management/Merrill Lynch Investment Managers. Assets under management are USD 1.7 billion (as at 31 st December 2009). The firm s investment approach is underpinned by 3 core investment philosophies. Investments should be managed in a global context, rather than within a narrow focus on one country or region. A global debate using macro-economic research and global investment horizons drive DSP s active investment approach. DSP has a highly experienced team of global investment managers who provide top-down views. These views are supported by market-specific research from specialist regional equity teams. With this background we believe that active investment management by talented stock pickers can consistently out-perform market indices. DSP aims to achieve absolute returns. The managers use short selling strategies in their hedge funds and construct specialist, long-only equity portfolios. These portfolios are unconstrained by benchmark considerations and can hold significant cash levels. DSP believes investors will achieve better returns from investments based on conviction and fundamental analysis by skilled fund managers in concentrated portfolios. A disciplined approach to risk management incorporates a proper understanding of risk and a sensitive approach to its application to portfolios. Risk is controlled by using sophisticated risk modelling techniques and fundamental analysis of stocks, recognising any dangers within them, rather than measuring risk with reference to benchmark indices. DSP views the global investment environment as being unlikely to give outstanding returns over the next five years unless investors take a discerning approach. Investing in funds that hug benchmark indices will not produce the best returns. However, average returns of 5-8% per annum from equities will hide a huge disparity of returns from individual companies. DSP believes the under-performance of growth stocks, over the last five years, provides opportunities for stock pickers and potential return will be found in companies that are undervalued, underresearched and yet have sustainable growth earnings and clear, dominant franchises. As a result DSP s fund managers tend to focus on mid to small-cap stocks in the developed markets. DSP has identified several investment mega trends. Japanese recovery, India, Greater China, commodities, precious metals and oil have the potential to be great mega trends over the next 20 years. DSP has three core businesses - a hedge fund business; a unit trust business, which manages a range of specialist long-only regional equity funds and sector funds; and a segregated portfolio management business offering global flexible asset allocation.

6 DSP is authorized and regulated by the Financial Services Authority. Dalton Capital (Hong Kong) Limited is authorized and regulated by the Securities and Futures Commission in Hong Kong. These are both owned by Dalton Capital (Guernsey) Limited which is regulated by the Guernsey Financial Services Commission. Product Range - Melchior is the brand name of DSP s funds. Long-Only Specialist Equity Funds The funds listed below are sub-funds of the Melchior Investment Fund, an Open-Ended Investment Company, which is an OEIC with variable capital authorised by the FSA. Minimum investment 10,000 Melchior Asian Opportunities Fund Melchior Japan Opportunities Fund Melchior Japan Advantage Fund Melchior North American Opportunities Fund Melchior UK Opportunities Fund The funds listed below are sub-funds of the Melchior Selected Trust, a Luxembourg SICAV authorized by the CSSF in Luxembourg. Minimum investment $10,000. Melchior Selected Trust: Resources Fund Melchior Selected Trust: Japan Advantage Fund Melchior Selected Trust: UK Opportunities Fund Melchior Selected Trust: Indian Opportunities Fund. Melchior Selected Trust: North American Opportunities Fund Melchior Japan Opportunities Fund LP, a Delaware Limited Partnership suitable for US investors.

7 Absolute Return Funds The funds listed below are sub-funds of the Melchior Selected Trust, a Luxembourg SICAV authorized by the CSSF in Luxembourg. Minimum investment $10,000. Melchior Selected Trust: European Fund (To be launched in February 2010) Melchior Selected Trust: Global Active Fund Melchior Selected Trust: Global Balanced Fund Melchior Selected Trust: Global Conservative Fund Melchior Selected Trust: Asian Global Opportunities Fund Melchior Selected Trust: Asian Global Balanced Fund Hedge Funds Melchior European Fund Melchior Global Macro Fund Minimum investment $1million. Investment Trusts Melchior Japan Investment Trust plc Listed on the London Stock Exchange Disclaimer This press release (release) is issued by Dalton Strategic Partnership LLP (DSP), which is authorised and regulated in the UK by the Financial Services Authority. DSP is a limited liability partnership incorporated in England and Wales with Partnership Number 0C Registered Office: Third Floor, Princes Court, 7 Princes Street, London EC2R 8AQ. This release does not constitute or form part of any offer to issue or sell, or any solicitation of any offer to subscribe or purchase any shares or any other interests nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract thereof. This release is not directed at you if you are not a journalist or press officer, or if we are prohibited by any law of any jurisdiction from making the information in this release available to you. Recipients of this release who intend to apply for shares or interests in the Funds are reminded that any such application may be made solely on the basis of the information and opinions contained in the Prospectus or other offering document relating thereto, as and when they become available, which may be different from the information and opinions contained in this document. Please refer to the relevant Prospectus or relevant offering document. Any research, analysis or views included in this release has been produced by DSP in relation to its investment activities and should not be relied upon for any personal use. Any opinions expressed herein are made as at the date of publication and may change without notice. All data and statistics are sourced from DSP unless otherwise stated. Performance statistics are not necessarily based on audited financial. Past performance is not necessarily indicative of future results and you may not retrieve your original investment. Changes in rates of exchange may affect the price of units or shares. Please use the following internet address to view important information about the Dalton companies: