The Deer Park
Total Return Credit Fund

Fund Overview

The Deer Park Total Return Credit Fund (the “Fund”) attempts to provide cash flow and attractive total returns independent of interest rate direction while having relatively low correlation to traditional fixed income and equity indices. The Fund seeks to derive portfolio returns through fundamental analysis and security selection. The sub-adviser’s proprietary process seeks to exploit the disparity between the intrinsic and market values of these securities.

Objective

  • The Fund seeks Income and Capital Appreciation

Investment Approach

  • Focus on discounted, high yielding mortgage backed ("MBS") and asset backed securities ("ABS") that are believed to be undervalued
  • The portfolio is expected to primarily consist of bonds with relatively short durations
  • Central to our investment approach and philosophy is the focus on opportunities throughout the credit spectrum, moving away from overvalued sectors, into undervalued sectors. This approach has enabled us to continue to find opportunity throughout various market cycles and events, and importantly, it helps maintain our deep-value discipline.

Organizational Structure

  • 1940 Act registered open-end mutual fund
  • Tickers: DPFNX, DPFAX, DPFCX
  • Daily liquidity
  • Form 1099 tax reporting
  • Low minimums

Investment Philosophy

deep_value

Value

  • Source discounted securities that we can purchase at attractive prices and we believe are significantly undervalued relative to intrinsic value.
  • Objective: Limit downside risk.
high_cash_flow

Cash Flow

  • We focus on assembling and managing a portfolio of primarily cash flowing bonds.
  • Objective: Provide liquidity and pricing stability throughout market cycles.
short_duration

Medium Average Life

  • Manage a portfolio that typically has a modified duration of <10 years.
  • Objective: Reduce pricing volatility and interest rate risk.
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Buy and Hold

  • Typically hold bonds to term, but will trade out of a security if market conditions dictate.
  • Objective: Protects from having to liquidate a security in a market decline.
interest_rates

Interest Rates

  • Portfolio construction typically minimizes the impact of changes in interest rates. However, the portfolio may be positioned to take advantage of rates moving either up or down
  • Objective: Reduce pricing volatility and interest rate risk.

Investment Process

Deal Flow

Sourcing

  • Utilize Deer Park’s extensive dealer network that has been developed over almost two decades to source undervalued MBS/ABS.
  • Limited pricing transparency of certain non-exchange traded securities creates the opportunity for a sourcing advantage on both the buy and sell sides. Deer Park often purchases bonds with limited competition due to longstanding dealer relationships – a true competitive advantage in this market.
  • Deer Park sources securities from approximately 35-40 dealers ranging from the majors (e.g., Bank of America, Goldman Sachs, JP Morgan, Credit Suisse) to small regionals specializing in structured credit and other securities.

Process

  • Deer Park has the opportunity to analyze and bid on a range of MBS/ABS securities per day.
  • Filters are applied to determine and narrow which bonds meet the general criteria for the portfolio.

Proprietary Valuation Process

Step 1: Multi-Scenario Analysis

  • Potential investments are analyzed, modeled and stress-tested under at least a base case, stress case and optimistic case scenario to determine their potential cash flow and yield.
  • Underlying our assumptions and scenarios is our macro-outlook on interest rates, government programs, economic activity, borrower behavior, default rates, etc.

Step 2: Cash Flow Matching

  • Modeled projected cash flow and losses are compared with actual historical cash flows and losses to detect any potential weaknesses or errors in the industry standard Intex and Bloomberg models.
  • The complexity of structured credit instruments sometimes causes modeling variation due to:
    • Overestimating/underestimating future principal & interest payments.
    • Incorrectly modeling embedded triggers, settlement recovery and other structural elements.
  • Matching projected cash flows to actual, historical cash flows sometimes creates an arbitrage opportunity – since we have found that many market participants omit this step.
  • Modeled values for each scenario are adjusted accordingly.

Step 3: Value Determination

  • Overall attractiveness of a security is guided by a risk/reward equation that places a premium on minimizing potential downside.
  • A bid range is established for each potential investment based on Deer Park’s cash flow adjusted multi-scenario analysis.
  • Tools: Bloomberg, Intex, Trepp, Realpoint, in-house proprietary models.

Security Selection

  • The proprietary valuation process narrows the universe of securities to a small subset that meets Deer Park’s investment criteria.
  • Typically looking for attractively priced bonds believed to have high cash flow, short duration, diversification across the MBS/ABS spectrum, high degree of optionality, i.e., the potential for additional upside gain, but minimal additional downside, seasoned (i.e., older) bonds with extensive payment histories.

Trading

Purchase

  • The extensive experience of Deer Park’s investment team, and proprietary valuation process, enables fast turnaround when bids are solicited by dealers.
  • Deer Park believes their process and methodology provide a competitive edge in the sourcing and trading of discounted fixed-income securities.
  • Purchases and sales of securities are generally executed at prices within predetermined min/max price limits.

Trading

  • Most securities are purchased under the assumption that they will be held to term.
  • Adjustments made opportunistically and based on market conditions.
  • Securities may be sold to:
    • Take advantage of positive price movements
    • Protect against negative price movements
    • Rebalance the portfolio to achieve yield, cash flow and diversification targets

Portfolio Management/Monitoring

Management & Monitoring Process

  • Each bond in the portfolio is re-evaluated using Deer Park’s valuation model on a monthly basis.
  • Securities that have moved outside acceptable risk/reward parameters become candidates to be sold.
  • Securities may also become sale candidates to re-balance the portfolio to achieve yield, cash flow and diversification targets.
  • Interest rate sensitivity of the portfolio is monitored and modeled on a regular basis to determine the impact of rate changes across the yield curve:
    • Typical portfolio construction minimizes the impact of changes in interest rates, however, the portfolio may be positioned to take advantage of rates moving either up or down.
  • Portfolio management targets:
    • Annual cash flow*
    • Primary: Discounted residential MBS (60 – 100% of the portfolio*)
    • Secondary: Discounted other ABS such as - manufactured housing, autos, franchise, airplane, commercial real estate, REITs and/or credit default swaps (0 – 40% of the portfolio*)
    • Diversified portfolio with holdings typically between 1.5 – 5% of portfolio

*The cash flow target is dependent on market conditions and may or may not be achieved, and is not guaranteed.

Risk Management

Portfolio Risk Mitigation

  • Diversification within ABS market and security type. Deer Park believes that trading a broad universe of ABS, as opposed to small sub-segment, reduces risk and increases returns over the long-term.
  • Focus on short-term securities. Targeting a portfolio effective duration that is typically <10 years to manage pricing volatility and interest rate risk.
  • Focus on securities with current cash-flow. Targeting portfolio cash flow provides liquidity throughout market cycles and attempts to reduce portfolio risk and volatility.
  • Focus on deeply discounted securities. Deer Park’s discount purchase philosophy dictates that only securities viewed as undervalued are bought. This approach attempts to reduce downside risk to the portfolio.
  • Hedging market risks through security selection. The enormous size of the MBS/ABS market and the wide variety of securities available allows Deer Park to hedge various market risks through the security selection and overall security composition of the portfolio.
  • In-house credit risk modeling. Deer Park utilizes a bottom-up approach when valuing and analyzing each security.

Performance

Fund Prices & YTD Returns as of 9/11/2026 Performance Through 9/11/2026 Average Annual Returns Through 6/30/2026
Deer Park Total Return Credit Fund Class A Shares
NAV NAV Daily Change % Daily Change(1) % YTD Return(2) One Month Three Months Six Months Since Inception(4) One Year Three Years Five Years Ten Years Since Inception(4)
7.62 -0.01 -0.13% -0.45% -0.67% -0.46% -1.15% 3.18% 2.77% 3.37% 0.14% 2.91% 3.31%
With Sales Charge(3) -6.37% -6.23% -6.85% 2.62% -3.19% 1.35% -1.04% 2.31% 2.74%
Deer Park Total Return Credit Fund Class C Shares
NAV NAV Daily Change % Daily Change(1) % YTD Return(2) One Month Three Months Six Months Since Inception(4) One Year Three Years Five Years Ten Years Since Inception(4)
7.59 -0.01 -0.13% -0.94% -0.86% -0.66% -1.52% 1.36% 2.15% 2.66% -0.58% N/A 1.49%
Deer Park Total Return Credit Fund Class I Shares
NAV NAV Daily Change % Daily Change(1) % YTD Return(2) One Month Three Months Six Months Since Inception(4) One Year Three Years Five Years Ten Years Since Inception(4)
7.64 -0.01 -0.13% -0.28% -0.78% -0.40% -1.02% 3.45% 3.02% 3.67% 0.41% 3.19% 3.58%

(1)  Represents the percentage increase/decrease in the net asset value from the prior trading day.
(2)  Performance for periods less than one year is not annualized.
(3)  The maximum sales charge for Class A Shares is 5.75%. Class A Share investors may be eligible for a reduction in sales charges
(4)  Inception date of the fund is October 16, 2015 for class A & I shares.

Inception date for the I and A share classes is 10/16/2015 and C Share class is 04/06/2017. Returns for periods longer than one year are annualized. The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Past performance is no guarantee of future results. The Fund's total annual operating expenses are 2.57%, 3.32%, and 2.32% for the Class A, C, and I shares, respectively. The Fund's investment advisor has contractually agreed to waive management fees and to make payments to limit Fund expenses until at least January 31, 2027. After this fee waiver, the expense ratios are 1.76%, 2.51%, and 1.51% for the Class A, C, and I shares, respectively. These fee waivers and expense reimbursements are subject to possible recoupment from the Fund in future years. The maximum sales load for the Class A shares is 5.75%. A fund's performance, especially for very short periods of time, should not be the sole factor in making your investment decisions. For performance information current to the most recent month-end, please call toll-free 1-888-868-9501.

Management

Adviser

PrincetonFundAdvisors_Medium-01

Princeton Fund Advisors, LLC together with its affiliates, manages approximately $11.3 billion of assets for institutional and private clients worldwide (as of 6/30/2026). Princeton Fund Advisors, LLC is a Registered Investment Advisor ("RIA") with the SEC. The firm's three Investment Committee Members contribute more than 60 years of alternative asset management experience to the portfolio construction and management process. The Company has offices in Colorado and Minnesota.

Sub-Adviser

DeerParkRoad_logo

Deer Park is an alternative asset investment management company based in Steamboat Springs, Colorado (USA) with $2.7 billion under management1 (as of 12/31/2025). Deer Park differentiates itself from other alternative investment firms through our diligent focus on fundamental credit analysis, adaptive approach to sourcing investment opportunities, and prudent focus on risk management. The long-term performance of strategies deployed by Deer Park is a result of the depth, tenure, and expertise of the portfolio management team, which has enabled us to identify relative value opportunities and market dislocation across the credit spectrum. Deer Park’s strategy across all managed funds focuses on the following core goals:

  • Deep-value fundamental analytic approach
  • Seek high-cash flow credit investments
  • Establish proven deal flow to source new opportunities
  • Adaptive portfolio management process
  • Source investments to perform in a range of credit cycles

1Total Firm assets as of 12/31/2025 include AUM of funds managed by Deer Park Road Management Company, LP plus committed capital for a fund of one. AUM figures are rounded to the nearest hundred million for reporting purposes.

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Michael Craig-Sheckman

Chief Executive Officer / Founder

Mr. Craig-Scheckman has been in the investment business for over 45 years and has over 30 years of experience in the distressed mortgage-backed and asset-backed securities field. Mr. Craig- Scheckman worked for Millennium Partners from 1993 through 2008 and continued to manage assets for Millennium until 2010. During the height of his involvement with Millennium Partners, he managed $475 million in assets. Mr. Craig-Scheckman earned a BA and MA in Physics at Queens College, New York in 1975 and an MA in Physics at Columbia University in 1977. He is a native of New York and has lived in Colorado with his wife and children since July 2003.

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Scott Burg

Chief Investment Officer / Managing Partner

Mr. Burg has over 20 years of experience in the mortgage-backed and asset-backed securities sector and joined Deer Park in August 2010. Prior to joining Deer Park, he was a Principal at General Capital Partners, where he focused on advising middle market companies in distressed situations. Previously, he was at Pursuit Partners, a $550 million fixed income hedge fund where his focus was on analyzing residential mortgage-backed securities.
Mr. Burg received his MBA from Daniels School of Business at the University of Denver in 2007, and a BS in finance from the University of Colorado in 2001 where he played D1 football.

Harry Murray, CFA

Portfolio Manager / Partner

Mr. Murray joined Deer Park in November of 2012. His role includes active oversight of the portfolios, monthly quantitative analysis, quantitative reporting and individual security analysis for valuation purposes. Mr. Murray was made Partner in 2019. Prior to joining Deer Park, Mr. Murray worked for three and a half years in New York City for Fogel Neale Partners, a wealth and institutional management firm, where he was an associate Portfolio Manager focused on fixed income and equity management. Mr. Murray graduated from the University of Colorado, Boulder, in 2010 where he earned a BA in Political Science and Economics. He earned his MBA from Duke University Fuqua School of Business in December 2019. In addition, Mr. Murray earned the Chartered Financial Analyst® designation in August 2017.

Hao Li, CFA

External Consultant and Portfolio Specialist

Mr. Li is focused on risk management, analytics and trading. Mr. Li has extensive experience in portfolio valuation and investment research. In 2011, he was at J.P. Morgan, where he managed the pricing of a $1B non-agency MBS portfolio and a $3B consumer ABS portfolio. Prior to his employment at J.P. Morgan, Mr. Li was at Millennium Partners where he was responsible for researching and trading non-agency RMBS securities, as well as financial modeling and property valuation. He also spent 2 years as a fixed income trader at HSBC in Shanghai, China. Mr. Li received his MBA from Columbia Business School in 2010, and a Masters in Finance (2006) and a Bachelors in Economics (2004) from Peking University School of Economics. Mr. Li earned the Chartered Financial Analyst® designation, March 2011.

Kiva Patten

Portfolio Manager

Mr. Patten joined Deer Park in October of 2016. His role as Portfolio Manager is focused on analyzing, managing, and trading the CMBS portfolio for Deer Park. Prior to joining Deer Park, Mr. Patten was a Senior Mortgage Trader with Great-West Life in Denver and previously spent over 14 years with Merrill Lynch in New York covering a wide range of structured products sectors including mezzanine and subordinate RMBS, CMBS, credit default swaps (CDS) on subprime RMBS and other derivative types. Mr. Patten earned a BS in Economics and Management Science from the State University of New York College at Cortland.

Fund Facts

Share Class Ticker CUSIP Investment Minimum* AIP/AWP & Subsequent Minimum Redemption Fee Gross Expense Ratio Net Expense Ratio Class Structure 12B-1 Fee Inception Date
A ShareDPFAX66537X183$2,500$100NONE2.57%1.76%5.75% Load*0.25%10/16/2015
I ShareDPFNX66537X167$100,000$100NONE2.32%1.51%No LoadNone10/16/2015
C ShareDPFCX66537X175$2,500$100NONE3.32%2.51%No LoadNone4/6/2017
Role Organization
AdvisorPrinceton Fund Advisors, LLC
Sub-AdvisorDeer Park Road Management Company LP
Independent AuditorRSM US LLP
Outside CounselThompson Hine LLP
CustodianU.S. Bank
DistributorNorthern Lights Distributors, LLC

*The load and investment minimum may be waived at the discretion of the advisor.