DGHM Investment Trust N-CSR Certified annual shareholder report (management investment company)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF

REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number:	811-21958
Exact name of registrant as specified in charter:	DGHM Investment Trust
Address of principal executive offices:	8730 Stony Point Parkway, Suite 205 Richmond, VA 23235
Name and address of agent for service:	The Corporation Trust Company 1209 Orange Street Wilmington, DE 19801
	with a copy to: John H. Lively The Law Offices of John H. Lively & Associates, Inc. A member firm of The 1940 Act Law Group 2041 West 141st Terrace, Suite 119 Leawood, KS  66224
Registrant's telephone number, including area code:	800-653-2839
Date of fiscal year end:	Last day of February
Date of reporting period:	February 29, 2012

Item #1.  Reports to Stockholders.

Dalton, Greiner, Hartman, Maher & Co., LLC

A Boston Private Wealth Management Company

DGHM INVESTMENT TRUST

Annual Report to Shareholders

DGHM ALL-CAP VALUE FUND

DGHM V2000 SMALLCAP VALUE FUND

For the year ended February 29, 2012

DGHM INVESTMENT TRUST

TABLE OF CONTENTS

	PAGE
Shareholder Letter – DGHM All-Cap Value Fund	1
DGHM V2000 SmallCap Value Fund	4
Performance Information – DGHM All-Cap Value Fund	7
DGHM V2000 SmallCap Value Fund	10
Schedule of Investments – DGHM All-Cap Value Fund	12
DGHM V2000 SmallCap Value Fund	16
Statements of Assets and Liabilities	21
Statements of Operations	22
Statements of Changes in Net Assets	23
Financial Highlights – DGHM All-Cap Value Fund	24
DGHM V2000 SmallCap Value Fund	29
Notes to Financial Statements	31
Supplemental Information	42
About Your Funds’ Expenses	50

This report and the financial statements contained herein are submitted for the general information of the shareholders of the DGHM All-Cap Value Fund and the DGHM V2000 SmallCap Value Fund (the ”Funds”).  This report is not authorized for distribution to prospective investors in the Funds unless preceded or accompanied by an effective prospectus.  Mutual fund shares are not deposits or obligations of, or guaranteed by,  any depository institution.  Shares are not insured by the FDIC, Federal Reserve Board or another agency, and are subject to investment risks, including possible loss of principal amount invested.  Neither the Funds not the Funds’ distributor is a bank.

Distributor:  First Dominion Capital Corp., 8730 Stony Point Parkway, Suite 205, Richmond, VA 23235, phone 1-800-653-2839.

An investment in the Funds is subject to investment risks, including the possible loss of some or the entire principal amount invested.  There can be no assurance that the

Funds will be successful in meeting its investment objectives.  Investment in the Funds is subject to the following risks: market risk, small-cap, mid-cap and large-cap securities risk, management style risk, sector risk, issuer risk, ETF risks, and short-term investment risk.  More information about these risks and other risks can be found in the Funds’ prospectuses.

The performance information quoted in this Annual Report represents past performance, which is not a guarantee of future results.  Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more of less than their original cost.  Current performance may be lower or higher than the performance data quoted.  To obtain actual performance data regarding the Funds, including performance data current to the Funds’ most recent month-end, please call 1-800-653-2839.

An investor should consider the investment objectives, risks, and charges and expense of the Funds carefully before investing.  The prospectuses contain this and other information about the Funds.   Copies of the prospectuses are available by calling Shareholder Services at 1-800-653-2839.  The prospectuses should be read carefully before investing.

Stated performance in the Funds was achieved at some or all points during the period by Dalton, Greiner, Hartman, Maher & Co., LLC, the investment advisor to the Funds.  The advisor waived or reimbursed part of the DGHM V2000 SmallCap Value Fund’s total expenses.  Had the investment advisor not waived or reimbursed expenses of this fund, this fund’s performance would have been worse.

This Annual Report was first distributed to shareholders on or about April 30, 2012.

For more information on your DGHM All-Cap Value Fund or your DGHM V2000 SmallCap Value Fund:

See our website at www.dghm.com or call our Shareholder Services Group toll-free at 1-800-653-2839.

Dear Shareholder of the DGHM All-Cap Value Fund:

For the fiscal year ended February 29, 2012, the DGHM All-Cap Value Fund’s Investor Class shares returned -2.6%.  The Fund’s Class C shares returned -3.4%.  The Fund’s Institutional Class returned -2.2%.  These returns are based on performance after fees and expenses.  The Fund’s benchmark index (Russell 3000 Value) returned 1.8% during this time period.

Sectors that had a positive impact on performance were Technology, Capital Goods, and Electric Utilities.  Technology was led by Teradata (+39%), which is a database warehouse software company.  Capital Goods was led by Mueller Industries (+13%), which is a manufacturer of plumbing supplies.  The Electric Utility sector was led by Vectren Corp. (+17%), which is a regulated dividend paying utility based in Indiana.  Dividend paying stocks did particularly well in the market during the last fiscal year.  As of the end of the period, we no longer hold Mueller but continue to own Teredata and Vectren.

Sectors that had a negative impact on performance were Healthcare, Banks, and Energy.  In the case of Healthcare, we did not own any of the large dividend paying major pharmaceutical stocks.  These stocks were strong performers during the course of the year.   The Bank sector was negatively impacted by Regions Financial (-45%), which is a Birmingham based regional bank.  The Energy sector was negatively impacted by Devon Corp (-19%), which is an Exploration & Production company with exposure to natural gas.   Regions has been sold from the portfolio.  As of the end of the period, we continue to hold Devon.

Given the events of the past several years in the economy and the stock market, I would like to remind all of our shareholders of the investment strategy that guides our stock picking:

■   We invest with a multi-year investment horizon rather than focusing on the month or quarter end.

■   We do not attempt to make macroeconomic calls. (i.e., predict economic growth, interest rates, currency levels, commodity prices etc.)

■   We do not predict the direction of the stock market.

■   We use a bottom-up selection process to attempt to identify companies that appear to be selling at a discount to our assessment of their potential value.

■   We focus on the cash flows, historical profitability, projected future earnings, and financial condition of individual companies in identifying which stocks we may purchase.

■   We also consider the following factors in deciding which companies may appear attractive:

§   Quality of the business franchise

§   Competitive advantage

§   Economic or market conditions

§   Deployment of capital

§   Reputation, experience, and competence of the company’s management

■   We believe that stocks purchased at prices below their potential value not only protect capital, but also offer significant price appreciation once the market recognizes a particular stock’s potential value.

■   Generally, stocks are sold when the characteristics and factors used to select the security change or the stock has appreciated to the point where it is no longer attractive versus other potential opportunities.

We appreciate the opportunity to serve as your Fund’s Investment Advisor.

Yours truly,

Jeffrey C. Baker

Executive Vice President

Dalton, Greiner, Hartman, Maher & Co., LLC

The views in the foregoing discussion were those of the Fund’s investment advisor as of the end of the period and may not reflect its views on the date this Annual Report is first published or anytime thereafter. These views are intended to assist shareholders in understanding their investment in the Fund and do not constitute investment advice.

The performance information quoted above represents past performance and past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Performance data, current to the most recent month end, may be obtained by calling the Fund at (800) 653-2839.  Fee waivers and expense reimbursements have positively impacted Fund performance. An investor should consider the Fund’s investment objectives, risks, and charges and expenses carefully before investing. The Fund’s Prospectus contains this and other important information. For information on the Fund’s expense ratio, please see the Financial Highlights Table found within the accompanying Annual Report.

Dear Shareholder of DGHM V2000 SmallCap Value Fund:

The DGHM V2000 SmallCap Value Fund Institutional Class shares decreased 3.3% and the Investor Class decreased 3.4% for the fiscal year ending February 29, 2012.  These returns are based on performance after fees and expenses.  The fund’s benchmark, the Russell 2000 Value Index, decreased 2.7% during the same time period.

The Fund modestly underperformed the benchmark as strong performance in consumer cyclicals and utilities was offset by weakness in energy, insurance and technology sectors.  The consumer cyclicals were led by Polaris (+45%), Genesco (+72%), Papa John’s (+27%) and Pool Corp. (+39%).   Pinnacle West (+17%) drove the outperformance in the utilities sector.  Sharply lower natural gas prices caused declines in some of our energy stocks: Cal Dive (-60%), Petroleum Development Corp. (-34%) and Swift Energy (-30%).  Life insurer Protective Life (- 45%) dropped due to a poor earnings report and declining equity markets.  Fabrinet (-34%), one of our technology stocks, came under pressure due to production problems related to the Thailand floods.  Since we were able to find better risk-adjusted opportunities in other stocks we no long hold Cal Dive, Petroleum Development Corp., Protective Life and Fabrinet.

At Dalton, Greiner, Hartman, Maher & Co., LLC (the “Advisor”) a key part of our strategy is conducting intensive fundamental research to build an attractive portfolio of high quality small cap stocks, one stock at a time.  We strive to construct a portfolio with the ideal trade-off between low valuation, high profitability and financial strength.  As the following table demonstrates, the collective effort of our ten sector specialists produced a portfolio with most characteristics superior to the benchmark.

Portfolio Characteristics as of February 29, 2012

Valuation	DGHM V2000	Russell 2000 Value
EV/EBITDA(1)	8.2x	8.8x
Free Cash Flow Yield	6.7%	5.0%
Last 12 Months P/E	16.9x	19.3x
Dividend Yield	1.3%	0.9%
Profitability
EBITDA ROA (excludes cash)	17.1%	12.5%
5YR Avg EBITDA ROA (excludes cash)	16.5%	12.6%
EBITDA Margins	14.1%	12.7%
Last 12 Months ROE	8.9%	7.5%
Balance Sheet
Net Debt / Total Capital	35.3%	36.4%
EBITDA / Interest Expense	9.3x	8.1x

(1) EV/EBITDA means Enterprise Value divided by Earnings Before Interest, Taxes, Depreciation and Amortization.  Our definition of Enterprise Value is market capitalization plus debt plus other long-term liabilities minus cash.

We appreciate the opportunity to serve as your Fund’s investment adviser.

Sincerely,

Peter Gulli, CFA

The views in the foregoing discussion were those of the Fund’s investment advisor as of the end of the period and may not reflect its views on the date this Annual Report is first published or anytime thereafter. These views are intended to assist shareholders in understanding their investment in the Fund and do not constitute investment advice.

The performance information quoted above represents past performance and past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Performance data, current to the most recent month end, may be obtained by calling the Fund at (800) 653-2839.  Fee waivers and expense reimbursements have positively impacted Fund performance. An investor should consider the Fund’s investment objectives, risks, and charges and expenses carefully before investing. The Fund’s Prospectus contains this and other important information. For information on the Fund’s expense ratio, please see the Financial Highlights Table found within the accompanying Annual Report.

		Investor Shares
		Total Return One Year Ended 2/29/2012	Average Annual Return Since Inception 06/20/07 to 02/29/12
	DGHM All-Cap Value Fund:	-2.56%	2.74%
	Russell 3000 Value Index:	1.77%	-2.52%
	Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of shares. The total cumulative returns are historical in nature and measure net investment income and capital gain or loss from portfolio investments assuming reinvestments of dividends.
	The Russell 3000 Value Index is generally considered to be representative of the performance of unmanaged common stocks that comprise the broad value segment of the U.S. securities markets.  You cannot invest directly in this index.  This index does not have an investment advisor and does not pay any commissions, expenses, or taxes.  If this index did pay commissions, expenses, or taxes, its returns would be lower.  The index is not adjusted to reflect expenses that the SEC requires to be reflected in the Fund's performance.
	The above returns for the Investor Shares of the Fund assumes an initial investment of $10,000 at June 20, 2007 (Commencement of Operations).  All dividends and distributions are reinvested, if any.  It is important to note that the Fund is a professionally managed mutual fund while the index is not available for investment and is unmanaged.  The comparison is shown for illustrative purposes only.  The Fund's investment advisor has entered into a contractual arrangement with the Fund to waive its fees in an amount that limits Total Annual Fund Operating Expenses of the Fund to not more than 1.50%, excluding 12b-1 fees, for the period ending June 30, 2012.  There can be no assurance that this arrangement will continue in the future.  For more information, please see the Fund's prospectus.
	Performance quoted above represents past performance, which is no guarantee of future results.  Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost.  Current performance may be lower or higher than the performance data quoted.

			Class C Shares
		Total Return One Year Ended 2/29/2012		Average Annual Return Since Inception 06/20/07 to 02/29/12
DGHM All-Cap Value Fund:		-3.37%		1.79%
Russell 3000 Value Index:		1.77%		-2.52%
Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of shares. The total cumulative returns are historical in nature and measure net investment income and capital gain or loss from portfolio investments assuming reinvestments of dividends.
The Russell 3000 Value Index is generally considered to be representative of the performance of unmanaged common stocks that comprise the broad value segment of the U.S. securities markets.  You cannot invest directly in this index.  This index does not have an investment advisor and does not pay any commissions, expenses, or taxes.  If this index did pay commissions, expenses, or taxes, its returns would be lower.  The index is not adjusted to reflect expenses that the SEC requires to be reflected in the Fund's performance.
The above returns for the Class C Shares of the Fund assumes an initial investment of $10,000 at June 20, 2007 (Commencement of Operations).  All dividends and distributions are reinvested, if any.  It is important to note that the Fund is a professionally managed mutual fund while the index is not available for investment and is unmanaged.  The comparison is shown for illustrative purposes only.  The Fund's investment advisor has entered into a contractual arrangement with the Fund to waive its fees in an amount that limits Total Annual Fund Operating Expenses of the Fund to not more than 1.50%, excluding 12b-1 fees, for the period ending June 30, 2012  There can be no assurance that this arrangement will continue in the future.  For more information, please see the Fund's prospectus.
Performance quoted above represents past performance, which is no guarantee of future results.  Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost.  Current performance may be lower or higher than the performance data quoted.

	Institutional Shares
	Total Return One Year Ended 2/29/2012	Average Annual Return Since Inception 07/19/10 to 02/29/12
DGHM All-Cap Value Fund:	-2.21%	7.70%
Russell 3000 Value Index:	1.77%	16.16%
Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of shares. The total cumulative returns are historical in nature and measure net investment income and capital gain or loss from portfolio investments assuming reinvestments of dividends.
The Russell 3000 Value Index is generally considered to be representative of the performance of unmanaged common stocks that comprise the broad value segment of the U.S. securities markets.  You cannot invest directly in this index.  This index does not have an investment advisor and does not pay any commissions, expenses, or taxes.  If this index did pay commissions, expenses, or taxes, its returns would be lower.  The index is not adjusted to reflect expenses that the SEC requires to be reflected in the Fund's performance.
The above returns for the Institutional Shares of the Fund assumes an initial investment of $10,000 at July 19, 2010 (Commencement of Operations).  All dividends and distributions are reinvested, if any.  It is important to note that the Fund is a professionally managed mutual fund while the index is not available for investment and is unmanaged.  The comparison is shown for illustrative purposes only.  The Fund's investment advisor has entered into a contractual arrangement with the Fund to waive its fees in an amount that limits Total Annual Fund Operating Expenses of the Fund to not more than 1.50% for the period ending June 30, 2012.  There can be no assurance that this arrangement will continue in the future.  For more information, please see the Fund's prospectus.
Performance quoted above represents past performance, which is no guarantee of future results.  Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost.  Current performance may be lower or higher than the performance data quoted.

		Investor Shares
��		Total Return One Year Ended 2/29/2012	Average Annual Return Since Inception 06/30/10 to 02/29/12
	DGHM SmallCap Value Fund:	-3.43%	15.16%
	Russell 2000 Value Index:	-2.72%	16.74%
	Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of shares. The total cumulative returns are historical in nature and measure net investment income and capital gain or loss from portfolio investments assuming reinvestments of dividends.
	The Russell 2000 Value Index measures the performance of small-cap value segment of the U.S. equity universe.  It includes those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.  The Russell 2000 Value Index is constructed to provide a comprehensive and unbiased barometer for the small-cap value segment.  The Index is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set and that the represented companies continue to reflect value characteristics.
	The above returns for the Investor Shares of the Fund assumes an initial investment of $10,000 at June 30, 2010 (Commencement of Operations).  All dividends and distributions are reinvested, if any.  It is important to note that the Fund is a professionally managed mutual fund while the index is not available for investment and is unmanaged.  The comparison is shown for illustrative purposes only.  The Fund's investment advisor has entered into a contractual arrangement with the Fund to waive its fees in an amount that limits Total Annual Fund Operating Expenses of the Fund to not more than 1.65%, excluding 12b-1 fees, for the period ending June 30, 2012.  There can be no assurance that this arrangement will continue in the future.  For more information, please see the Fund's prospectus.
	Performance quoted above represents past performance, which is no guarantee of future results.  Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost.  Current performance may be lower or higher than the performance data quoted.

		Institutional Shares
		Total Return One Year Ended 2/29/2012	Average Annual Return Since Inception 06/30/10 to 02/29/12
	DGHM V2000 SmallCap Value Fund:	-3.34%	15.85%
	Russell 2000 Value Index:	-2.72%	16.74%
	Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of shares. The total cumulative returns are historical in nature and measure net investment income and capital gain or loss from portfolio investments assuming reinvestments of dividends.
	The Russell 2000 Value Index measures the performance of small-cap value segment of the U.S. equity universe.  It includes those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.  The Russell 2000 Value Index is constructed to provide a comprehensive and unbiased barometer for the small-cap value segment.  The Index is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set and that the represented companies continue to reflect value characteristics.
	The above returns for the Institutional Shares of the Fund assumes an initial investment of $10,000 at June 30, 2010 (Commencement of Operations).  All dividends and distributions are reinvested, if any.  It is important to note that the Fund is a professionally managed mutual fund while the index is not available for investment and is unmanaged.  The comparison is shown for illustrative purposes only.  The Fund's investment advisor has entered into a contractual arrangement with the Fund to waive its fees in an amount that limits Total Annual Fund Operating Expenses of the Fund to not more than 1.65% for the period ending June 30, 2012.  There can be no assurance that this arrangement will continue in the future.  For more information, please see the Fund's prospectus.
	Performance quoted above represents past performance, which is no guarantee of future results.  Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost.  Current performance may be lower or higher than the performance data quoted.

DGHM ALL-CAP VALUE FUND SCHEDULE OF INVESTMENTS February 29, 2012
Number of Shares	Security Description	% of Net Assets	Fair Value
	COMMON STOCKS	95.53%
	AEROSPACE/DEFENSE	2.80%
54,306	General Dynamics Corporation		$ 3,976,828
	BANKS	3.17%
357,900	People's United Financial Inc.		4,505,961
	COMPUTERS	5.74%
19,209	International Business Machines Corporation		3,778,987
65,817	Teradata Corporation*		4,380,121
			8,159,108
	DIVERSIFIED FINANCIAL SERVICES	13.62%
84,490	AON Corp.		3,954,977
85,660	CIT Group Inc.*		3,487,219
122,154	JPMorgan Chase & Co.		4,793,323
468,070	KeyCorp		3,791,367
79,070	State Street Corp.		3,339,126
			19,366,012
	HEALTHCARE	8.56%
78,110	Baxter International Inc.		4,540,534
70,880	Covance Inc.*		3,383,102
79,255	Stryker Corp.		4,251,238
			12,174,874
	INSURANCE	2.83%
56,042	ACE Limited		4,018,772
	MEDIA	7.71%
69,114	The DIRECTV Group, Inc. Class A*		3,201,360
82,101	Omnicom Group, Inc.		4,059,073
77,746	Viacom, Inc."B"		3,702,265
			10,962,698

DGHM ALL-CAP VALUE FUND SCHEDULE OF INVESTMENTS February 29, 2012
Number of Shares	Security Description	% of Net Assets	Fair Value
	MINING	2.38%
79,380	Freeport-McMoRan Copper & Gold Inc.		$     3,378,413
	MISCELLANEOUS MANUFACTURING	13.09%
40,462	3M Company		3,544,471
109,260	Analog Devices, Inc.		4,284,085
47,557	Becton, Dickinson and Co.		3,624,795
56,050	Dover Corp.		3,588,321
66,953	Rockwood Holdings Inc.*		3,565,247
			18,606,919
	OIL & GAS SERVICES	12.45%
67,900	Devon Energy Corp.		4,977,749
86,480	Piedmont Natural Gas Co. Inc.		2,801,952
47,797	Pioneer Natural Resources Co.		5,240,463
159,970	Vectren Corp.		4,674,323
.			17,694,487
	REAL ESTATE INVESTMENT TRUST	2.72%
53,881	Alexandria Real Estate Equities, Inc.		3,862,729
	RETAIL	7.43%
66,350	Kohls Corp.		3,296,268
185,970	Safeway Inc.		3,989,057
55,490	Wal-Mart Stores, Inc.		3,278,349
			10,563,674
	TELECOMMUNICATIONS	3.89%
180,630	AT&T Inc.		5,525,472
	TRANSPORTATION	9.15%
89,672	Tidewater Inc.		5,335,484
44,990	United Parcel Service, Inc. "B"		3,459,281
78,350	Visteon Corp.*		4,208,962
			13,003,727

DGHM ALL-CAP VALUE FUND SCHEDULE OF INVESTMENTS February 29, 2012
Number of Shares	Security Description	% of Net Assets	Fair Value
	TOTAL COMMON STOCKS
	(Cost: $124,157,200)	95.53%	$135,799,674
	INVESTMENT COMPANIES	4.38%
	WFA Treasury Plus Money Market Fund 0.1%**
6,225,789	(Cost: $6,225,789)		6,225,789
	TOTAL INVESTMENTS:
	(Cost: $130,382,989)	99.91%	142,025,463
	Other assets, net of liabilities	0.09%	130,317
	NET ASSETS	100.00%	$142,155,780
*Non-income producing (security is considered non-income producing if at least one dividend has not been paid during the last year preceding the date of the Fund's related balance sheet).
**Effective 7 day yield as of February 29, 2012
See Notes to Financial Statements

DGHM V2000 SMALLCAP VALUE FUND SCHEDULE OF INVESTMENTS February 29, 2012
Number of Shares	Security Description	% of Net Assets	Fair Value
	COMMON STOCKS	90.27%
	BANKS	12.80%
100	Associated Banc-Corp.		$     1,324
385	Colony Financial Inc.		6,422
199	Community Trust Bancorp, Inc.		6,137
710	National Penn Bancshares, Inc.		6,212
639	Old National Bancorp		7,719
513	Provident Financial Services		7,049
210	Sandy Spring Bancorp, Inc.		3,793
308	United Financial Bancorp, Inc.		4,882
276	Webster Financial Corp.		6,039
251	WesBanco, Inc.		4,894
			54,471
	CHEMICALS	3.46%
108	Ashland Inc.		6,864
585	PolyOne Corp.		7,857
			14,721
	COMMERCIAL SERVICES	1.75%
149	Steiner Leisure Ltd.*		7,456
	COMPUTERS/SOFTWARE/DATA	3.55%
170	Qlogic Corp.*		2,922
310	Quest Software, Inc.*		6,206
435	Sykes Enterprise, Inc.*		5,995
			15,123
	DIVERSIFIED REAL ESTATE INVESTMENTS	10.71%
306	BioMed Realty Trust, Inc.		5,636
404	CBL & Associates Properties, Inc.		7,123
269	Colonial Properties Trust		5,520
749	Cousins Properties, Inc.		5,535
300	Gaylord Entertainment Co.*		8,928
1,120	Hersha Hospitality Trust		5,634
285	Redwood Trust, Inc.		3,297
95	Sun Communities, Inc.		3,932
			45,605
DGHM V2000 SMALLCAP VALUE FUND SCHEDULE OF INVESTMENTS February 29, 2012
Number of Shares	Security Description	% of Net Assets	Fair Value
	FINANCE	0.52%
400	Global Cash Access Holdings, Inc.*		$       2,224
	HEALTHCARE	2.93%
57	Bio-Rad Laboratories, Inc.*		5,809
145	ICU Medical, Inc.*		6,653
			12,462
	INSURANCE	5.96%
310	Alterra Capital Holdings Ltd.		7,118
485	First American Financial Corp.		7,469
140	Hanover Insurance Group Inc.		5,715
585	Maiden Holdings Ltd.		5,060
			25,362
	INVESTMENT SERVICES	2.79%
113	GAMCO Investors, Inc.		5,211
327	Walter Investment ManagementCorp.		6,664
			11,875
	MISCELLANEOUS MANUFACTURING	11.62%
260	Beacon Roofing Supply, Inc.*		6,131
121	Brady Corp. Class A		3,866
90	Cytec Industries Inc.		5,352
340	Electro Scientific Industries, Inc.		4,706
307	Herman Miller, Inc.		6,447
91	Mueller Industries, Inc.		4,186
83	NACCO Industries, Inc. Class A		8,117
319	Photronics, Inc.*		2,236
175	Pool Corp.		6,370
30	The Toro Co.		2,032
			49,443
	OIL & GAS SERVICES	4.58%
108	Atmos Energy Corp.		3,319
139	Berry Petroleum Co. Class A		7,500
110	Piedmont Natural Gas Co., Inc.		3,564
170	Swift Energy Co.*		5,105
.			19,488
DGHM V2000 SMALLCAP VALUE FUND SCHEDULE OF INVESTMENTS February 29, 2012
Number of Shares	Security Description	% of Net Assets	Fair Value
	RESEARCH	1.76%
306	Parexel International Corp.*		$  7,491
	RETAIL	9.94%
150	The Cato Corp. "A"		4,067
780	Chico's FAS, Inc.		11,708
56	Genesco Inc.*		3,816
204	Papa John's International, Inc.*		7,581
125	Snap-on Inc.		7,641
175	Weis Markets, Inc.		7,500
			42,313
	SEMI-CONDUCTOR	3.80%
655	GT Advanced Technologies Inc.*		5,607
1,060	Lattice Semiconductor Corp.*		6,985
750	RF Micro Devices, Inc.*		3,578
			16,170
	STEEL	1.51%
120	Reliance Steel & Aluminum Co.		6,446
	TECHNOLOGY	3.21%
117	Anixter International Inc.*		8,136
300	Booz Allen Hamilton Holding Corp.		5,523
			13,659
	TRANSPORTATION	5.48%
565	Heartland Express, Inc.		8,175
260	Thor Industries, Inc.		8,468
276	Werner Enterprises, Inc.		6,685
			23,328
	UNIFORMS	0.78%
55	UniFirst Corp.		3,304
	UTILITIES	3.12%
125	Cleco Corp.		4,810
99	Pinnacle West Capital Corp.		4,656
155	Portland General Electric Co.		3,819
			13,285
DGHM V2000 SMALLCAP VALUE FUND SCHEDULE OF INVESTMENTS February 29, 2012
Number of Shares	Security Description	% of Net Assets	Fair Value
	TOTAL COMMON STOCKS	90.27%
	(Cost: $365,606)		$   384,226
	INVESTMENT COMPANIES	8.15%
34,686	WFA Treasury Plus Money MarketFund 0.1%**		34,686
	(Cost: $34,686)
	TOTAL INVESTMENTS:
	(Cost: $400,292)	98.42%	418,912
	Other assets, net of liabilities	1.58%	6,738
	NET ASSETS	100.00%	$ 425,650
*Non-income producing (security is considered non-income producing if at least one dividend has not been paid during the last year preceding the date of the Fund's related balance sheet).
**Effective 7 day yield as of February 29, 2012
See Notes to Financial Statements

DGHM INVESTMENT TRUST STATEMENTS OF ASSETS AND LIABILITIES At February 29, 2012
			DGHM All-Cap Value Fund		DGHM V2000 SmallCap Value Fund
ASSETS
	Investments at fair value (identified cost of$130,382,989 and $400,262,respectively)(Note 1)		$ 142,025,463		$        418,912
	Receivable for investments sold		-		510
	Receivable for capital stock sold		149,422		-
	Dividends receivable		151,611		368
	Interest receivable		55		-
	Due from advisor		-		14,095
	Prepaid expenses		27,187		5,531
		TOTAL ASSETS	142,353,738		439,416
LIABILITIES
	Payable for securities purchased		-		10,044
	Payable for capital stock redeemed		80,787		-
	Accrued investment management fees		73,193		-
	Accrued 12b-1 fees		15,776		97
	Accrued administration, accounting andtransfer agent fees		11,434		2,050
	Other accrued expenses		16,768		1,575
		TOTAL LIABILITIES	197,958		13,766
NET ASSETS			$ 142,155,780		$        425,650
Net Assets Consist of:
	Paid-in-capital applicable to12,781,953  and53,471 no par value shares of beneficialinterest outstanding, respectively		$ 131,341,950		$        410,882
	Accumulated net investment income(loss)		104,525		-
	Accumulated net realized gain (loss)oninvestments		(933,169)		(3,882)
	Net unrealized appreciation(depreciation) ofinvestments		11,642,474		18,650
	Net Assets		$ 142,155,780		$        425,650
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
Investor Class  ($75,004,248 / 6,736,994shares outstanding and $74,877 / 9,666shares outstanding, respectively)				$             11.13		$             7.75
Class C (a) ($4,832,487 / 444,473 sharesoutstanding)
				$             10.87		N/A
Institutional Class ($62,319,045 / 5,600,486shares  outstanding and $350,773 / 43,805shares outstanding, respectively)				$             11.13		$             8.01
(a) May be subject to a contingent deferred sales charge if redeemed within one year of purchase (see Note 1)
See Notes to Financial Statements

DGHM INVESTMENT TRUST STATEMENTS OF OPERATIONS For the year ended February 29, 2012
			DGHM All-Cap Value Fund	DGHM V2000 SmallCap Value Fund
INVESTMENT INCOME
	Dividend (net of foreign tax withheld of$1,893 and $ - , respectively)		$ 2,469,206	$     7,372
	Interest		372	3
		Total investment income	2,469,578	7,375
EXPENSES
	Investment management fees (Note 2)		787,705	3,945
	12b-1 fees (Note 2)
		Investor Class	181,189	329
		Class C	��  46,756	-
	Recordkeeping and administrative services (Note 2)		107,344	20,000
	Accounting fees (Note 2)		60,593	20,000
	Custodian fees		14,681	8,079
	Transfer agent fees (Note 2)
		Investor Class	45,085	3,999
		Class C	3,804	-
		Institutional Class	13,210	11,001
	Professional fees		43,069	24,736
	Filing and registration fees		47,793	12,587
	Trustee fees		7,986	4,014
	Compliance fees		19,921	6,573
	Shareholder servicing and reports
		Investor Class	12,088	3,191
		Class C	1,470	-
		Institutional Class	3,173	7,745
	Other		84,934	21,068
		Total expenses	1,480,801	147,267
		Fee waivers and reimbursed expenses (Note 2)	-	(138,807)
		Net Expenses	1,480,801	8,460
		Net investment income (loss)	988,777	(1,085)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
	Net realized gain (loss) on investments		1,460,015	127,083
	Net increase (decrease) in unrealized appreciation(depreciation) of investments		(3,681,521)	(139,491)
	Net realized and unrealized gain (loss) oninvestments		(2,221,506)	(12,858)
	INCREASE (DECREASE) IN NET ASSETSFROM OPERATIONS		$(1,232,729)	$ (13,943)
See Notes to Financial Statements

STATEMENTS OF CHANGES IN NET ASSETS
		DGHM All-Cap Value Fund		DGHM V2000 SmallCap Value Fund
		For the Year ended February 29, 2012	For the Year ended February 28, 2011	For the Year ended February 29, 2012	For the period June 30, 2010* to February 28, 2011
Increase (decrease) in Net Assets
OPERATIONS
	Net investment income(loss)	$   988,777	$       15,598	$         (1,085)	$      1,454
	Net realized gain (loss) oninvestments	1,460,015	4,392,997	127,083	29,173
	Change in net unrealizedappreciation(depreciation) oninvestments	(3,681,521)	9,236,856	(139,941)	158,591
	Increase (decrease) in netassets from operations	(1,232,729)	13,645,451	(13,943)	189,218
DISTRIBUTIONS TO SHAREHOLDERS
	Net investment income
	Investor Class	(420,103)	(6,897)	(2,858)	-
	Institutional Class	(464,149)	(17,360)	(9,249)	(2,118)
Net realized gain
	Investor Class	(676,148)	-	(23,167)	(2,978)
	Class C	(43,005)	-	-	-
	Institutional Class	(515,430)	-	(108,942)	(13,425)
	Decrease in net assetsfrom distributions	(2,118,835)	(24,257)	(144,216)	(18,521)
BENEFICIAL INTEREST TRANSACTIONS (Note 5)
	Shares sold
	Investor Class	29,935,397	28,507,623	28,553	232,768
	Class C	1,305,593	2,171,909	-	-
	Institutional Class	54,003,223	16,440,096	127,745	853,949
	Distributions reinvested
	Investor Class	929,237	5,805	26,024	2,978
	Class C	38,964	-	-	-
	Institutional Class	567,280	8,893	118,108	12,280
	Shares redeemed
	Investor Class	(23,902,502)	(12,887,434)	(210,858)	(14,134)
	Class C	(1,012,844)	(466,156)	-	-
	Institutional Class	(9,679,422)	(53,325)	(764,301)	-
	Increase (decrease) in netassets from beneficialinterest transactions	52,184,926	33,727,411	(674,729)	1,087,841
NET ASSETS
	Increase (decrease) duringperiod	48,833,362	47,348,605	(832,888)	1,258,538
	Beginning of period	93,322,418	45,973,813	1,258,538	-
	End of period(includingundistributed net investmentincome (loss) of$104,525,$-, $- and $-,respectively)	$142,155,780	$93,322,418	$425,650	$1,258,538
*Commencement of operations.
See Notes to Financial Statements

DGHM ALL-CAP VALUE FUND FINANCIAL HIGHLIGHTS SELECTED PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
			Investor Class Shares
		Year ended February 29, 2012			Year ended February 28,					Period June 20, 2007* to February 29, 2008
					2011		2010	2009
Net asset value, beginning of period		$ 11.60			$ 9.44		$ 6.26	$ 9.26		$ 10.00
Investment activities
	Net investment income (loss)	0.08		(C)	-	(B) (C)	0.01	0.02		0.01
	Net realized and unrealized gain (loss) on investments	(0.39)			2.16		3.19	(3.01)		(0.75)
	Total from investment activities	(0.31)			2.16		3.20	(2.99)		(0.74)
Distributions
	Net investment income	(0.06)
	Net realized gain	(0.10)			-	(B)	(0.02)	(0.01)		-
	Total distributions	(0.16)			-		(0.02)	(0.01)		-
Net asset value, end of period		$ 11.13			$ 11.60		$ 9.44	$ 6.26		$ 9.26
Total Return		(2.56%)			22.89%		51.17%	(32.26%)		(7.40%)	***
Ratios/Supplemental Data
Ratio to average net assets
	Expenses, net	1.30%			1.47%		1.71%	1.75%	(A)	1.75%	**(A)
	Net investment income (loss)	0.74%			0.04%		0.19%	0.71%	(A)	0.20%	**(A)
Portfolio turnover rate		49.53%			53.05%		101.89%	90.97%		80.71%	***
Net assets, end of period (000's)		$ 75,004			$ 71,124		$ 43,669	$ 32,223		$ 2,066

*Commencement of operations

** Annualized

*** Not annualized

(A)   Management fee waivers and reimbursement of expenses reduced the expense ratio and increased net investment income ratio by 0.72% for the year ended February 28, 2009 and by 6.77% for the period June 20, 2007 to February 29, 2008.  The ratios reflect the effect of the management fee waivers and reimbursement of expenses.

(B)   Less than $0.01 per share.

(C)  Per share amounts calculated using the average number of shares outstanding.

See Notes to Financial Statements

DGHM ALL-CAP VALUE FUND FINANCIAL HIGHLIGHTS SELECTED PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
			Class C Shares
			Year ended February 29, 2012	Year ended February 28						Period June 20, 2007* to February 29, 2008
					2011		2010	2009
Net asset value, beginning of period			$ 11.36		$ 9.31		$ 6.20	$ 9.22		$ 10.00
Investment activities
	Net investment income (loss)		-	(B) (C)	(0.07)	(C)	(0.04)	-	(B)	(0.03)
	Net realized and unrealized gain
		(loss) on investments	(0.39)		2.12		3.15	(3.02)		(0.75)
	Total from investment activities		(0.39)		2.05		3.11	(3.02)		(0.78)
Distributions
	Net realized gain		(0.10)		-		-	-		-
	Total distributions		(0.10)		-		-	-		-
Net asset value, end of period			$  10.87		$ 11.36		$ 9.31	$ 6.20		$ 9.22
Total Return			(3.37%)		22.02%		50.16%	(32.75%)		(7.80%)	***
Ratios/Supplemental Data
Ratio to average net assets
	Expenses, net		2.08%		2.23%		2.46%	2.50%	(A)	2.50%	**(A)
	Net investment income (loss)		(0.04%)		(0.69%)		(0.56%)	(0.04%)	(A)	(0.55%)	**(A)
Portfolio turnover rate			49.53%		53.05%		101.89%	90.97%		80.71%	***
Net assets, end of period (000's)			$ 4,832		$ 4,713		$ 2,304	$ 1,446		$ 2,038

*Commencement of operations

** Annualized

*** Not annualized

(A) Management fee waivers and reimbursement of expenses reduced the expense ratio and increased net investment income ratio by 0.72 % for the year ended February 28, 2009 and by 6.77% for the period June 20, 2007 to February 29, 2008.  The ratios reflect the effect  of the management fee waivers and reimbursement of expenses.

(B) Less than $0.01 per share.

(C) Per share amounts calculated using the average number of shares outstanding.

See Notes to Financial Statements

DGHM ALL-CAP VALUE FUND FINANCIAL HIGHLIGHTS SELECTED PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
			Institutional Class Shares
				Year ended February 29, 2012		Period July 19, 2010* to February 28, 2011
Net asset value, beginning of period				$ 11.59		$ 9.33
Investment activities
	Net investment income (loss)			0.11	(A)	0.03	(A)
	Net realized and unrealized gain
		(loss) on investments		(0.38)		2.26
	Total from investment activities			(0.27)		2.29
Distributions
	Net investment income			(0.09)		-
	Net realized gain			(0.10)		(0.03)
	Total distributions			(0.19)		(0.03)
Net asset value, end of period				$ 11.13		$ 11.59
Total Return				(2.21%)		24.55%	***
Ratios/Supplemental Data
Ratio to average net assets
	Expenses, net			1.01%		1.11%	**
	Net investment income (loss)			1.03%		0.46%	**
Portfolio turnover rate				49.53%		53.05%	***
Net assets, end of period (000's)				$ 62,319		$ 17,486
*    Commencement of operations				��
**   Annualized
***  Not annualized
(A)   Per share amounts calculated using the average number of shares outstanding.
See Notes to Financial Statements

DGHM V2000 SMALLCAP VALUE FUND FINANCIAL HIGHLIGHTS SELECTED PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
			Investor Class Shares
				Year ended February 29, 2012		Period June 30, 2010* to February 28, 2011
Net asset value, beginning of period				$ 12.92		$ 10.00
Investment activities
	Net investment income (loss)			(0.05)	(A)	-	(A)(B)
	Net realized and unrealized gain
		(loss) on investments		(0.74)		3.10
	Total from investment activities			(0.79)		3.10
Distributions
	Net investment income			(0.48)		-
	Realized gains			(3.90)		(0.18)
	Total distributions			(4.38)		(0.18)
Net asset value, end of period				$ 7.75		$ 12.92
Total Return				(3.43%)		31.05%	***
Ratios/Supplemental Data
Ratio to average net assets
	Expenses, gross			29.98%		15.71%	**
	Expenses, net			1.90%		1.90%	**
	Net investment income (loss)			(0.40)%		0.07%	**
Portfolio turnover rate				58.38%		33.60%	***
Net assets, end of period (000's)				$ 75		$ 260
*Commencement of operations
** Annualized
*** Not annualized
(A)   Per share amounts calculated using the average number of shares outstanding.
(B)   Less than $0.01 per share.
See Notes to Financial Statements

DGHM V2000 SMALLCAP VALUE FUND FINANCIAL HIGHLIGHTS SELECTED PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
			Institutional Class Shares
				Year ended February 29, 2012		Period June 30, 2010* to February 28, 2011
Net asset value, beginning of period				$ 13.01		$ 10.00
Investment activities
	Net investment income (loss)			( 0.02)	(A)	0.02	(A)
	Net realized and unrealized gain
		(loss) on investments		(0.75)		3.20
	Total from investment activities			(0.77)		3.22
Distributions
	Net investment income			(0.33)		(0.03)
	Realized gains			(3.90)		(0.18)
	Total distributions			(4.23)		(0.21)
Net asset value, end of period				$ 8.01		$ 13.01
Total Return				(3.34%)		32.24%	***
Ratios/Supplemental Data
Ratio to average net assets
	Expenses, gross			29.82%		15.46%	**
	Expenses, net			1.65%		1.65%	**
	Net investment income (loss)			(0.15)%		0.32%	**
Portfolio turnover rate				58.38%		33.60%	***
Net assets, end of period (000's)				$ 351		$ 998
*       Commencement of operations
**     Annualized
***    Not annualized
(A)   Per share amounts calculated using the average number of shares outstanding.
See Notes to Financial Statements

DGHM INVESTMENT TRUST

NOTES TO FINANCIAL STATEMENTS

February 29, 2012

NOTE 1-ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

The DGHM All-Cap Value Fund and the DGHM V2000 SmallCap Value Fund (the "Funds") are series of the DGHM Investment Trust (the "Trust").  The Trust was organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified open-end management company.  The DGHM All-Cap Value (“All-Cap Fund”) and DGHM V2000 SmallCap Value (“SmallCap Fund”) Funds commenced operations on June 20, 2007 and June 30, 2010, respectively.

The investment objectives of the Funds are to provide long-term capital appreciation through investments that Dalton, Greiner, Hartman, Maher & Co., LLC, the Funds’ investment advisor (“Advisor”), believes are undervalued.

The following is a summary of significant accounting policies consistently followed by the Funds. The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

Security Valuation

The Funds’ securities are valued at current market prices.  Investments traded on a principal exchange (U.S. or foreign) or included in the NASDAQ National Market System are valued at the last reported sales price on the exchange on which the securities are traded as of the close of business on the last day of the period or, lacking any sales, at the last available bid price.  In cases where securities are traded on more than one exchange, the securities are valued on the exchange designated by or under the authority of the Funds’ Board of Trustees (the “Trustees”).  Short-term debt securities (less than 60 days to maturity) are valued at their fair market value using amortized cost.  Securities traded in the over-the-counter market are valued at the last available sale price in the over-the-counter market prior to time of valuation.  Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the most recent bid price.  Securities for which market quotations are not readily available are valued on a consistent basis at fair value as determined in good faith under procedures approved by the Funds’ Trustees.  Fair value pricing may be used, for example, in situations where (i) a portfolio security is so thinly traded that there have been no transactions for that security over an extended period of time; (ii) the exchange on which the portfolio security is principally traded closes early; or (iii) trading of the portfolio security is halted during the day and does not resume prior to the Fund’s net asset value calculation.  A portfolio security’s “fair value” price may differ from the price next available for that portfolio security using the Funds’ normal pricing procedures.  Investment companies are valued at net asset value.  If values of foreign securities have been materially affected by events occurring after the close of a foreign market, foreign securities may be valued by another method that the Trustees believe reflects fair value.  Generally, trading in corporate bonds, U.S. government securities and money market instruments is substantially completed each day at various times before the scheduled close of the New York Stock Exchange.  The value of these securities used in computing the Funds’ net asset value is determined as of such times.

In accordance with GAAP, “fair value” is defined as the price that a fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. Various inputs are used in determining the value of a fund’s investments.  GAAP established a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes.  Level 1 includes quoted prices in active markets for identical securities.  Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).  Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Funds’ investments as of February 29, 2012:

	Level 1 Quoted Prices	Level 2 Other Significant Observable Inputs	Level 3 Significant Unobservable Inputs	Total
All-Cap Fund
Common Stocks	$135,799,674	$       -	$       -	$135,799,674
InvestmentCompanies	6,225,789	-	-	6,225,789
	$142,025,463	$       -	$       -	$142,025,463
SmallCap Fund
Common Stocks	$384,226	$       -	$       -	$384,226
InvestmentCompanies	34,686	-	-	34,686
	$418,912	$       -	$       -	$418,912

Refer to the Funds’ Schedules of Investments for a listing of securities by security type and industry.  The Funds held no Level 3 securities at any time during the period.  There were no transfers between levels during the year ended February 29, 2012.

Security Transactions and Income

Security transactions are accounted for on the trade date.  The cost of securities sold is determined generally on a specific identification basis.   Dividends are recorded on the ex-dividend date.  Interest income is recorded on an accrual basis and includes accretion of discounts and amortization of  premiums.

Cash and Cash Equivalents

Cash and cash equivalents, if any, consist of overnight deposits with the custodian bank which earn interest at the current market rate.

Accounting Estimates

In preparing financial statements in conformity with GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of increases and decreases in the net assets during the reporting period.  Actual results could differ from those estimates.

Federal Income Taxes

The Funds intend to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to its shareholders. The Funds also intend to distribute sufficient net investment income and net capital gains, if any, so that they will not be subject to excise tax on undistributed income and gains.  Therefore, no federal income tax or excise tax provision is required.

The Funds recognize tax benefits on certain tax positions only where the position is “more likely than not” to be sustained assuming investigation from tax authorities.  Management has reviewed the Funds’ tax positions and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions expected to be taken in the Funds’ 2012 tax returns.  The Funds have no examinations in progress and management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.  The All-Cap Fund’s Federal tax returns filed in the three-year period ended February 29, 2012 and the SmallCap Fund’s Federal tax return for the period ended February 28, 2011 remain subject to examination by the Internal Revenue Service.  Interest and penalties, if any, associated with any federal or state income tax obligations, are recorded as income tax expense.

Reclassification of Capital Accounts

GAAP requires that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share.   As of February 29, 2012, there were no such reclassifications in the All-Cap Fund and the SmallCap Fund decreased net investment loss by $1,085, decreased accumulated net realized gain by $11,626 and increased paid in capital by $10,541.

Class Net Asset Values and Expenses

Each Fund can offer three classes of shares:  Investor Shares, Class C and Institutional Class shares.  Each class of shares has equal rights as to assets of the Funds, and the classes are identical except for differences in their sales charge structures, ongoing distribution and service fees, shareholder servicing and reports fees and transfer agent fees.  Income, expenses (other than distribution and service fees, shareholder servicing and reports fees and transfer agent fees), and realized and unrealized gains or losses on investments are allocated to each class of shares based upon its relative net assets.  All classes have equal voting privileges, except where otherwise required by law or when the Board of Trustees determines that the matter to be voted on affects only the interests of the shareholders of a particular class.  The Class C shares are subject to a 1% contingent deferred sales charge on proceeds that are redeemed within one year of the purchase date.  The contingent deferred sales charge is payable to the Distributor of the Trust.  Class C shares automatically convert into Investor Shares after seven years.  As of February 29, 2012, there were no Class C shares of SmallCap Fund outstanding.

NOTE 2-INVESTMENT ADVISORY AND DISTRIBUTION AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES

Pursuant to Investment Advisory Agreements, the Advisor provides investment advisory services for an annual fee of 0.65% on the average daily net assets of the All-Cap Fund and 0.80% on the average daily net assets of the SmallCap Fund.  For the year ended February 29, 2012, the Advisor earned $787,705 in advisory fees from the All-Cap Fund.  As of February 29, 2012, the Advisor was due $73,193 from the All-Cap Fund.  For the year ended February 29, 2012, the Advisor earned and waived $3,945 in advisory fees from the SmallCap Fund.

In the interest of limiting the operating expenses of the Funds, the Advisor has contractually agreed to waive or reduce its fees and to assume other expenses of the Funds through June 30, 2012, if necessary, in amounts that limit the Funds’ total operating expenses to 1.50% and 1.65% of average daily net assets of the All-Cap Fund and the SmallCap Fund, respectively. The limit does not apply to interest, taxes, brokerage commissions, other expenditures capitalized in accordance with GAAP, other extraordinary expenses not incurred in the ordinary course of the Fund’s business, dividend expense on short sales and amounts, if any, payable pursuant to a plan adopted in accordance with Rule 12b-1 of the 1940 Act.  In determining each Fund’s total operating expenses, expenses that the Fund would have incurred but did not actually pay because of expense offset or brokerage/services arrangements shall be added to the aggregate expenses so as not to benefit the Advisor.  Additionally, fees reimbursed to the Funds relating to brokerage/services arrangements shall not be taken into account in determining the Funds’ total operating expenses so as to benefit the Advisor.  Finally, these expense limitation arrangements exclude any “acquired fund fees and expenses” as that term is described in the prospectus of the Funds.  In addition, the Advisor may be entitled to reimbursement of fees waived or remitted by the Advisor to the Funds after March 1, 2009.  The total amount of reimbursement shall be the sum of all fees previously waived or reduced by the Advisor and all other payments remitted by the Advisor to the Funds during any of the previous three fiscal years (beginning March 1, 2009), less any reimbursement previously paid by the Funds to the Advisor with respect to such waivers, reductions and payments.  Amounts reimbursed may not cause the Funds to exceed expense limits that were in place at the time such fees and expenses were waived and/or reimbursed.  As of February 29, 2012, there were no fee waivers or reimbursements eligible for reimbursement to the Advisor pertaining to the All-Cap Fund.  For the year ended February 29, 2012, the Advisor earned and waived $3,945 in advisory fees and reimbursed expenses of $134,862 for the SmallCap Fund.  At February 29, 2012, the SmallCap Fund was due $14,095 from the Advisor.  The total amount of recoverable reimbursements as of February 29, 2012 was $214,570 and expires as follows:

2014           $  75,763

2015             138,807

$214,570

The Funds have adopted plans of distribution in accordance with Rule 12b-1 under the 1940 Act (each a “Plan” and collectively, the “Plans”).  Pursuant to the Plans, the Funds compensate the Funds’ principal underwriter for services rendered and expenses borne in connection with activities primarily intended to result in the sale of the Funds’ shares.  The Plans provide that the Funds will pay the annual rate of up to 0.25% of the average daily net assets of the Funds’ Investor Shares and up to 1.00% of the average daily net assets of the Funds’ Class C Shares for activities primarily intended to result in the sale of those shares.  These activities include reimbursement to entities for providing distribution and shareholder servicing with respect to the Funds’ shares.  The 0.25% fee for the Investor Shares is a service fee.  The 1.00% fee for the Class C Shares is comprised of a 0.25% service fee and a 0.75% distribution fee.  The All-Cap Fund incurred $181,189 and $46,756, in 12b-1 fees under the Plans with respect to Investor Shares and Class C Shares, respectively, for the year ended February 29, 2012.   The SmallCap Fund incurred $329 in 12b-1 fees under the Plans with respect to Investor Shares for the year ended February 29, 2012.

First Dominion Capital Corporation (the “FDCC”) acts as the Funds’ principal underwriter and distributor.  For the year ended February 29, 2012, FDCC received no commissions or underwriting fees from the sale of the Funds’ shares.  In addition, FDCC receives a contingent deferred sales charge (“CDSC”) of 1% of Class C share redemptions occurring within one year of purchase.  Shares redeemed subject to a CDSC will receive a lower redemption value per share.  For the year ended February 29, 2012, FDCC received $2,953 in CDSC fees.

Commonwealth Shareholder Services, Inc. (“CSS”) provides shareholder, recordkeeping, administrative and blue-sky filing services as the administrative agent for the Funds.  For such administrative services, CSS receives 0.10% per annum of average daily net assets of the Funds on the first $75 million and 0.07% per annum of the average daily net assets over $75 million subject to a $20,000 minimum per year.  For the year ended February 29, 2012, CSS earned $107,344 for its services and at February 29, 2012, was due $4,367 from the All-Cap Fund.  For the year ended February 29, 2012, CSS earned $20,000 for its services and at February 29, 2012, was due $766 from the SmallCap Fund.

Commonwealth Fund Services, Inc. (“CFSI”) is the Funds’ transfer and dividend disbursing agent.  For such services, CFSI receives the greater of a basis point charge or a per-account charge, subject to a $15,000 minimum per year.   CFSI earned $62,099 for its services for the year ended February 29, 2012 and at February 29, 2012, was due $4,367 from the All-Cap Fund. CFSI earned $15,000 for its services for the year ended February 29, 2012 and at February 29, 2012, was due $623 from the SmallCap Fund.

Commonwealth Fund Accounting (“CFA”) is the Funds’ pricing agent.  CFA earned $60,593 for its services for the year ended February 29, 2012 and at February 29, 2012, was due $2,700 from the All-Cap Fund.   CFA earned $20,000 for its services for the year ended February 29, 2012 and at February 29, 2012, was due $661 from the SmallCap Fund.

One Trustee and officers of the Trust are also officers of the Advisor.  One officer of the Fund is also an officer and/or director of FDCC, CSS, CFA and CFSI.

NOTE 3 - INVESTMENTS

The cost of purchases and proceeds from the sales of securities other than short-term notes for the year ended February 29, 2012, were $106,485,429 and $58,508,532, respectively for the All-Cap Fund.   The cost of purchases and proceeds from the sales of securities other than short-term notes for the year ended February 29, 2012, were $281,441 and $1,094,978, respectively for the SmallCap Fund.

NOTE 4 – DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF CAPITAL

Distributions from net investment income and realized gains, if any, are recorded on the ex-dividend date.  Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

The tax character of distributions during the year ended February 29, 2012 and the year or period ended February 28, 2011 were as follows:

	All-Cap Fund			SmallCap Fund
	Year Ended February 29, 2012		Year ended February 28, 2011	Year Ended February 29, 2012	June 30, 2010* to February 28,  2011
Distributions paid from:
Ordinary income		$   884,252	$24,257	$142,707	$18,521
Capital gains		1,234,583	-	1,509	-
		$2,118,835	$24,257	$144,216	$18,521

* commencement of operations

As of February 29, 2012, the components of distributable earnings on a tax basis were as follows:

	All-Cap Fund	SmallCap Fund
Accumulated net investment income(loss)	$          104,525	$             -
Accumulated net realized gain (loss)       on investments	112,218	-
Post October 31 capital losses	(767,586)	(2,509)
Unrealized appreciation      (depreciation)	11,364,673	17,277
	$    10,813,830	$  14,768

Cost of securities for Federal Income tax purpose is $130,660,790 for All-Cap Fund and $401,635 for SmallCap Fund and the related tax-based net unrealized appreciation (depreciation) consists of:

	All-Cap Fund	SmallCap Fund
Gross unrealized appreciation	$    13,423,430	$    33,621
Gross unrealized depreciation	(2,058,757)	(18,853)
Net unrealized appreciation      (depreciation)	$    11,364,673	$    14,768

NOTE 5 –TRANSACTIONS IN SHARES OF BENEFCIAL INTEREST

Shares of beneficial interest transactions for the Funds were:

	All-Cap Fund
	Year ended February 29, 2012
	Investor Class		Class C		Institutional Class
	Shares	Amount	Shares	Amount	Shares	Amount
Shares sold	2,748,851	$29,935,397	120,055	$1,305,593	4,959,749	$54,003,223
Shares reinvested	90,632	929,237	3,889	38,964	55,398	567,280
Shares redeemed	(2,232,458)	(23,902,502)	(94,370)	(1,012,844)	(922,865)	(9,679,422)
Net increase (decrease)	607,025	$6,962,132	29,574	$331,713	4,092,282	$44,891,081

	All-Cap Fund
	Year ended February 28, 2011				Period July 19, 2010* to February 28, 2011
	Investor Class		Class C		Institutional Class
	Shares	Amount	Shares	Amount	Shares	Amount
Shares sold	2,753,934	$28,507,623	213,812	$2,171,909	1,512,293	$16,440,096
Shares reinvested	529	5,805	-	-	773	8,893
Shares redeemed	(1,252,746)	(12,887,434)	(46,505)	(466,156)	(4,862)	(53,325)
Net increase (decrease)	1,501,717	$15,625,994	167,307	$1,705,753	1,508,204	$16,395,664

*Commencement of operations.

	SmallCap Fund
	Year ended February 29, 2012
	Investor Class		Institutional Class
	Shares	Amount	Shares	Amount
Shares sold	2,379	$      28,553	9,834	$    127,745
Shares reinvested	3,620	26,024	15,896	118,108
Shares redeemed	(16,486)	(210,858)	(58,665)	(764,301)
Net increase (decrease)	(10,487)	$  (156,279)	(32,935)	$  (518,448)

	SmallCap Fund
	Period June 30, 2010* to February 28, 2011
	Investor Class		Institutional Class
	Shares	Amount	Shares	Amount
Shares sold	21,029	$  232,768	75,769	$ 853,949
Shares reinvested	237	2,978	971	12,280
Shares redeemed	(1,113)	(14,134)	-	-
Net increase (decrease)	20,153	$  221,612	76,740	$ 866,229

*Commencement of operations.

NOTE 6 – COMMITMENTS AND CONTINGENCIES

Under the Trust’s organizational documents, its officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds.  In addition, in the normal course of business, the Trust entered into contracts with its vendors, on behalf of the Funds, and others that provide for general indemnifications.  The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds.  The Funds expect that risk of loss to be remote.

NOTE 7 – RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-04, “Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in  U.S GAAP and International Financial Reporting Standards (“IFRS”).  ASU No. 2011-04 clarifies existing requirements for measuring fair value and for disclosure about fair value measurements in converged guidance of the FASB and the International Accounting Standards Board.  The Amendments are to be applied prospectively.  The amendments are effective during interim and annual periods beginning after December 15, 2011.  Early application by public entities is not permitted.  Management is currently evaluating the impact ASU No. 2011-04 will have on the financial statement disclosures.

In December 2011, FASB issued ASU No. 2011-11 related to disclosures about offsetting assets and liabilities.  The amendments in this ASU require an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position.  The ASU is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods.  The guidance requires retrospective application for all comparative periods presented.  Management is currently evaluating the impact ASU 2011-11 will have on the financial statement disclosures.

NOTE 8 - SUBSEQUENT EVENTS

Management has evaluated all transactions and events subsequent to the date of the balance sheet through the date these financial statements were issued.  Except as already included in the notes to these financial statements, no additional items require disclosure.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees of DGHM Investment Trust

and the Shareholders of DGHM All-Cap Value Fund

and DGHM V2000 SmallCap Value Fund

We have audited the accompanying statements of assets and liabilities of DGHM All-Cap Value Fund and DGHM V2000 SmallCap Fund, each a series of shares of the DGHM Investment Trust, including the schedules of investments, as of February 29, 2012, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years or period in the two year period then ended and the financial highlights for each of the years or period in the four year period then ended and for the period from June 20, 2007 (commencement of operations of DGHM All-Cap Value Fund) through February 29, 2008. These financial statements and financial highlights are the responsibility of the Funds’ management.  Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  Our procedures included confirmation of securities owned as of February 29, 2012 by correspondence with the custodian and brokers.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of DGHM All-Cap Value Fund and DGHM V2000 SmallCap Value Fund as of February 29, 2012, the results of their operations for the year then ended, and the changes in their net assets and their financial highlights for each of the years or periods presented, in conformity with accounting principles generally accepted in the United States of America.

.

BBD, LLP

Philadelphia, Pennsylvania

April 24, 2012

SUPPLEMENTAL INFORMATION (unaudited)

DGHM Investment Trust (the “Trust”)

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Information pertaining to the Trustees and officers of the Trust is set forth below.  The names, addresses and age of the Trustees and officers of the Trust, together with information as to their principal occupations during the past five years, are listed below.  The Trustee who is considered an “interested person” as defined in Section 2(a)(19) of the 1940 Act, as well as those persons affiliated with the investment advisor and the principal underwriter, and officers of the Trust, are noted with an asterisk (*).  The Statement of Additional Information (the “SAI”) includes additional information about the Trustees and the officer and is available without charge, upon request by calling, toll-free, (800) 773-3863. The address of each trustee and officer of the Trust, unless otherwise indicated, is 8730 Stony Point Parkway, Suite 205, Richmond, Virginia 23235.
Name, Address and Age	Position(s) Held with Trust and Tenure	Number of Funds in Trust Overseen	Principal Occupation(s) During the Past Five (5)  Years	Other Directorships by Trustees and Number of Funds in the Complex Overseen
Interested Trustees:
Jeffrey C. Baker* 565 Fifth Avenue Suite 2101 New York, NY 10017 46	Trustee, President, and Principal Executive Officer since 04/07	2	Executive Vice President, Dalton, Greiner, Hartman, Maher & Co., LLC (investment advisor to the Funds) since 2005; previously, Senior Vice President, Dalton, Greiner, Hartman, Maher & Co., LLC, 2002 to 2005; and Vice President, Dalton, Greiner, Hartman, Maher & Co., LLC, 2000 to 2002.	None

Independent Trustees:
Jack E. Brinson 80	Trustee since 04/07	2	Retired since January 2000; previously, President, Brinson Investment Co. (personal investments) and President, Brinson Chevrolet, Inc. (auto dealership).	Independent Trustee of   Gardner Lewis Investment Trust for the two series of that trust; Brown Capital Management Mutual Funds for the thee series of that trust; Hillman Capital Management Investment Trust for the two series of that trust; Tilson Investment Trust for the two series of that trust; Starboard Investment Trust for the ten series of that trust; and, Giordano Investment Trust for the one series of that trust; (all registered investment companies).
Theo H. Pitt, Jr. 76	Trustee and Chairman since 04/07	2	Senior Partner, Community Financial Institutions Consulting (bank consulting) since 1997 and Account Administrator, Holden Wealth Management Group of Wachovia Securities (money management firm) from 2003 to 2008.	Independent Trustee of Gardner Lewis Investment Trust for the two series of that trust; and Starboard Investment Trust for the ten series of that trust;  (all registered investment companies).

Officers:
Thomas F. Gibson 565 Fifth Avenue Suite 2101 New York, NY 10017 48	Treasurer and Principal Financial Officer since 04/07	N/A	Vice President, Chief Financial Officer, and Chief Compliance Officer, Dalton, Greiner, Hartman, Maher & Co., LLC since 2005; previously, Chief Financial Officer and Chief Compliance Officer, Bingham Legg Advisers, LLC, 1999 to 2005.	N/A
Lauren Jones 30	Assistant Secretary since 12/09	N/A	Relationship Manager, Commonwealth Shareholder Services since 2006; previously,  Account Manager, Insider NYC, an event planning firm, from 2004 to 2005	N/A
Karen Shupe 48	Secretary and Assistant Treasurer since 11/08	N/A	Executive Vice President, Commonwealth Shareholder Services, Inc., since 2003; previously, Financial Reporting Manager, Commonwealth Shareholder Services, Inc., 2001 to 2003.	N/A
Julian Winters 43	Chief Compliance Officer since 11/08	NA	Managing Member of Watermark Solutions (investment compliance and consulting) since March 2007; previously, Vice-President – Compliance Administration, the Nottingham Company (investment company administrator and fund accountant) 1998 to 2007	N/A

SUPPLEMENTAL INFORMATION (unaudited)

VOTING PROXIES ON FUND PORTFOLIO SECURITIES

A copy of the Trust’s Proxy Voting and Disclosure Policy and the Advisor’s Proxy Voting and Disclosure Policy are included as Appendix B to the Funds’ Statement of Additional Information and is available, without charge, (1) upon request, by calling 1-800-653-2839 and (2) on the SEC’s website at http://www.sec.gov.  Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, (1) upon request, by calling the Funds at the number above and (2) on the SEC’s website at http://www.sec.gov.

QUARTERLY PORTFOLIO HOLDINGS

The Funds file with the SEC a complete schedule of their portfolio holdings, as of the close of the first and third quarters of its fiscal year, on “Form N-Q”.  These filings are available on the SEC’s website at www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C.  Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

APPROVAL OF THE RENEWAL OF INVESTMENT ADVISORY AGREEMENTS

Dalton, Greiner, Hartman, Maher & Co., LLC (the “Advisor”) supervises the investments of the DGHM All-Cap Value Fund and DGHM SmallCap Value Fund (the “Funds”), each a series portfolio of the DGHM Investment Trust (the “Trust”), pursuant to an Investment Advisory Agreement (the “Agreement”) between the Advisor and the Trust with respect to the Funds. At the quarterly meeting of the Board of Trustees of the Trust (the “Board” or “Trustees”) that was held on February 15, 2012, the Trustees, including a majority of the Trustees who are not parties to the Agreement or “interested persons” of any such party as such term is defined under the Investment Company Act of 1940, as amended (the “Independent Trustees”), voting separately, unanimously approved the renewal of the Agreement for a one-year period from March 1, 2012 until February 28, 2013, under the terms and for the compensation described therein.

In considering whether to approve the Advisory Agreement, the Trustees reviewed and considered such information as they deemed reasonably necessary, including the following material factors: (i) the nature, extent, and quality of the services provided by the Advisor; (ii) the investment performance of the Funds; (iii) the costs of the services to be provided and profits to be realized by the Advisor from the relationship with the Funds; (iv) the extent to which economies of scale would be realized as the Funds grow and whether advisory fee levels reflect those economies of scale for the benefit of the Funds’ investors; (v) the Advisor’s practices regarding brokerage and portfolio transactions; and (vi) the Advisor’s practices regarding possible conflicts of interest.

In assessing the factors described above and reaching its decision, the Board took into consideration information furnished for the Board’s review and consideration throughout the year at regular Board meetings, as well as information specifically prepared and/or presented in connection with the annual renewal process.  At the meeting, the Trustees reviewed various informational materials including, without limitation, copies of the Agreement and proposed Expense Limitation Agreements between the Advisor and the Trust with respect to the Funds (the “Expense Limitation Agreements”); materials provided by the Advisor to the Trustees containing information about the Advisor, its business, its finances, its personnel, its services to the Funds, and comparative performance and expense ratio information for other mutual funds with strategies similar to the Funds; and a memorandum from Fund Counsel that summarized the fiduciary duties and responsibilities of the Board in reviewing and approving the Agreement, including the types of information and factors that should be considered in order to make an informed decision.

Provided below is an overview of the factors the Board considered at its Meeting. The Board did not identify any particular information that was most relevant to its consideration to approve the Agreement and each Trustee may have afforded different weight to the various factors.

1.           Nature, Extent and Quality of the Services Provided by the Advisor.

In considering the nature, extent, and quality of the services provided by the Advisor, the Trustees reviewed the responsibilities of the Advisor under the Agreement. The Trustees reviewed the services being provided by the Advisor to the Funds including, without limitation, the quality of its investment advisory services (including research and recommendations with respect to portfolio securities); the Advisor’s procedures for formulating investment recommendations and assuring compliance with the Funds’ investment objectives and limitations, as well as for ensuring compliance with regulatory requirements; its coordination of services for the Funds among the Funds’ service providers and the Independent Trustees; and its efforts to promote the Funds, grow the Funds’ assets, and assist in the distribution of Funds’ shares.  In particular, the Trustees recognized the extensive marketing efforts of the Advisor relating to the SmallCap Fund.  The Trustees considered the Advisor’s personnel, including the education and experience of the Advisor’s personnel.  The Trustees noted that several of the officers of the Trust, including the principal executive officer and principal financial officer for the Trust were employees of the Advisor, and they served the Trust without additional compensation.  After reviewing the foregoing information and further information in the Advisor’s memorandum (e.g., descriptions of the Advisor’s business, the Advisor’s compliance programs, and the Advisor’s Form ADV), the Board of Trustees concluded that, in light of all the facts and circumstances, the quality, extent, and nature of the services to be provided by the Advisor were satisfactory and adequate for the Funds.

2.           Investment Performance of the Fund and the Advisor.

In considering the investment performance of the Funds and the Advisor, the Trustees compared the performance of the Funds for various periods during each Fund’s existence with the performance of the Funds’ respective benchmarks – the Russell 3000 Value Index for the All-Cap Fund and the Russell 2000 Value Index for the SmallCap Fund.  The Trustees also considered the consistency of the Advisor’s management of the Funds with the investment objectives and policies.  The Trustees noted that the All-Cap Fund underperformed its benchmark index in the short term and outperformed its benchmark index in the longer term.  The Trustees noted that the SmallCap Fund underperformed its benchmark index in the short term and trackted its index fairly closely in the longer term.  The Trustees noted that the Funds compared favorably to their peer group averages.  The Trustees also considered the Funds’ performance relative to other accounts managed by the Advisor, all of which are managed in the same manner as the Funds.  The Trustees noted that each Fund’s year-to-date performance was generally comparable to the performance of other accounts managed by the Advisor.  After reviewing and discussing the performance of the Funds further, the Advisor’s experience managing the Funds, the Advisor’s historical investment performance, and other relevant factors, the Board concluded, in light of all the facts and circumstances, that the investment performance of the Funds and the Advisor was satisfactory.

3.           Costs of the Services to be Provided and Profits to be Realized by the Advisor.

In considering the costs of the services to be provided and profits to be realized by the Advisor and its affiliates from the relationship with the Funds, the Trustees considered the Advisor’s staffing, personnel, and methods of operating; the financial condition of the Advisor and the level of commitment to the Funds by the Advisor and its principals; the asset levels of the Funds; and the overall expenses of the Funds, including the nature and frequency of advisory fee payments. The Trustees considered financial statements of the Advisor and discussed the financial stability and productivity of the firm. The Trustees also considered potential benefits for the Advisor in managing the Funds, including the potential for the Advisor to generate soft dollars from the Funds’ trades that may benefit the Advisor’s other clients. The Trustees considered the fees and expenses of the Funds (including the management fee) to other funds comparable in terms of the type of fund, the nature of its investment strategy, its style of investment management, and its size, among other factors. The Board determined that the Funds’ expenses, including the management fee, were higher than some of the comparable funds and lower than others, but recognized the Advisor’s commitment to working to reduce the expense ratio of the Funds (even though the All-Cap Fund was currently operating beneath its expense cap limitation).  The Trustees also considered the Advisor’s efforts in securing fee concessions from certain of the service providers of the SmallCap Fund while the Advisor focused on increasing asset levels of the Fund. Based on the foregoing, the Board concluded that the fees to be paid to the Advisor by the Funds, the costs of the services to be provided, and the profits that may be realized by the Advisor, in light of all the facts and circumstances, were fair and reasonable in relation to the nature and quality of the services provided by the Advisor.

4.           Economies of Scale.

In considering the extent to which economies of scale would be realized as the Funds grow and whether advisory fee levels reflect those economies of scale for the benefit of the Funds’ investors, the Trustees considered the Funds’ fee arrangements with the Advisor. The Trustees determined that although the management fee would stay the same as asset levels increased, the shareholders of the Funds would benefit from the expense limitation arrangement if, among other reasons, assets were to decrease to  a point where Fund expesnes increased beyond the expense cap. The Trustees also noted that the Funds would benefit from economies of scale under its agreements with some of its service providers other than the Advisor.  Following further discussion of the Funds’ asset levels, expectations for growth, and levels of fees, the Board determined that the Funds’ fee arrangements, in light of all the facts and circumstances, were fair and reasonable and that the potential expense limitation arrangement provided potential savings or protection for the benefit of the Fund’s investors.

5.           Advisor’s Practices Regarding Possible Conflicts of Interest.

In considering the Advisor’s practices regarding conflicts of interest, the Trustees evaluated the potential for conflicts of interest and considered such matters as the experience and ability of the advisory and compliance personnel assigned to the Funds; the basis for soft dollar payments with broker-dealers; the basis of decisions to buy or sell securities for the Funds and/or the Advisor’s other accounts; and the substance and administration of the Advisor’s code of ethics. Based on the foregoing, the Board determined that the Advisor’s standards and practices relating to the identification and mitigation of possible conflicts of interest were satisfactory.

Based upon all of the foregoing considerations, the Board, including a majority of the Independent Trustees, voting separately, unanimously approved the renewal of the Agreement for a one-year period from March 1, 2012 until February 28, 2013, under the terms and for the compensation described therein.

DGHM INVESTMENT TRUST (unaudited)

FUND EXPENSES (unaudited)

Fund Expenses Example

As a shareholder of the Fund, you incur two types of costs:  (1) transaction costs, including deferred sales charges on certain redemptions made within one year of purchase (Class C shares in DGHM All-Cap Value Fund) and (2) ongoing costs, including management fees, distribution (12b-1) fees and other Fund expenses.    This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.  The example is based on an investment of $1,000 invested at the beginning of the period, September 1, 2011, and held for the six months ended February 29, 2012.

Actual Expenses Example

The first line of the table below provides information about actual account values and actual expenses.  You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period.  Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000= 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return.  The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.  You may use this information to compare the ongoing costs of investing in the Fund and other funds.  To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as contingent deferred sales charges on certain redemptions. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

DGHM ALL-CAP VALUE FUND

INVESTOR CLASS	Beginning Account Value September 1, 2011	Ending Account Value February 29, 2012	Expenses Paid During Period* September 1, 2011 through February 29, 2012
Actual	$1,000.00	$1,077.50	$6.71
Hypothetical (5% return before expenses)	$1,000.00	$1,018.50	$6.52

CLASS C	Beginning Account Value September 1, 2011	Ending Account Value February 29, 2012	Expenses Paid During Period* September 1, 2011 through February 29, 2012
Actual	$1,000.00	$1,062.60	$10.67
Hypothetical (5% return before expenses)	$1,000.00	$1,014.60	$10.42

INSTITUTIONAL CLASS	Beginning Account Value September 1, 2011	Ending Account Value February 29, 2012	Expenses Paid During Period* September 1, 2011 through February 29, 2012
Actual	$1,000.00	$1,080.40	$5.22
Hypothetical (5% return before expenses)	$1,000.00	$1,019.95	$5.07

* - Expenses are equal to the Fund’s annualized expense ratio of 1.30%  for Investor Class,  2.08% for Class C and 1.01% for Institutional Class, multiplied by the average account value for the period, multiplied by 182 days in the most recent fiscal half year divided by 366 days in the current year.

DGHM V2000 SMALLCAP VALUE FUND

INVESTOR CLASS	Beginning Account Value September 1, 2011	Ending Account Value February 29, 2012	Expenses Paid During Period* September 1, 2011 through February 29, 2012
Actual	$1,000.00	$1,042.60	$9.65
Hypothetical (5% return before expenses)	$1,000.00	$1,016.00	$9.02

INSTITUTIONAL CLASS	Beginning Account Value September 1, 2011	Ending Account Value February 29, 2012	Expenses Paid During Period* September 1, 2011 through February 29, 2012
Actual	$1,000.00	$1,078.40	$8.53
Hypothetical (5% return before expenses)	$1,000.00	$1,017.25	$7.77

* - Expenses are equal to the Fund’s annualized expense ratio of 1.90% for Investor Class and 1.65% for Institutional Class, multiplied by the average account value for the period, multiplied by 182 days in the most recent fiscal half year divided by 366 days in the current year.

Investment Adviser:

Dalton, Greiner, Hartman, Maher & Co., LLC

565 Fifth Avenue, Suite 2101

New York, New York 10017-2413

Distributor:

First Dominion Capital Corp.

8730 Stony Point Parkway, Suite 205

Richmond, Virginia 23235

Independent Registered Public Accounting Firm:

BBD, LLP

1835 Market Street, 26th Floor

Philadelphia, Pennsylvania 19103

Legal Counsel:

The Law Offices of John H. Lively & Associates, Inc.

A member firm of The 1940 Act Law Group™

2041 West 141st Terrace, Suite 119

Leakwood, Missouri 66224

Transfer Agent:

For account information, wire purchase or redemptions, call or write to DGHM Investment Trust’s Transfer Agent:

Commonwealth Fund Services, Inc.

8730 Stony Point Parkway, Suite 205

Richmond, Virginia 23235

(800) 653-2839 (Toll Free)

ITEM 2.  CODE OF ETHICS.

(a) The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.

(b) There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics description.

(c) The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item's instructions.

ITEM 3.  AUDIT COMMITTEE FINANCIAL EXPERT.

(a)(1) The registrant  does not have an audit  committee  financial  expert serving on its audit committee.

(a)(2) Not applicable.

(a)(3) At this time, the registrant believes that the collective experience provided by the members of the audit  committee  together  offer the  registrant adequate oversight for the registrant's level of financial complexity.

ITEM 4.  PRINCIPAL ACCOUNTANT FEES AND SERVICES.

(a) The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $26,000  for 2012 and $26,000 for 2011.

(b) The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of this Item are $0 for 2012 and $0 for 2011.

(c) The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $4,000 for 2012 and $4,000 for 2011.

(d) The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are and $0 for 2012 and $0 for 2011.

(e)(1) Disclose the audit committee's pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.

Pursuant to its charter,  the registrant's Audit Committee must pre-approve

all audit and  non-audit  services to be provided to the  registrant.  The Audit Committee also pre-approves any non-audit  services provided by the registrant's principal accountant  to  the Fund.

(e)(2) The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows:

(b)            NA

(c)           100%

(d)           NA

(f) The percentage of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full-time, permanent employees was zero percent (0%).

(g) The aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant was $0 for 2012 and $0 for 2011.

(h) Not applicable. The Audit Committee pre-approved all non-audit services rendered to the registrant's investment adviser and any control affiliates that provide ongoing services to the registrant.

ITEM 5.  AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6.  SCHEDULE OF INVESTMENTS.

 Schedule filed under Item 1 of the Form.

ITEM 7.  DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8.  PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 9.  PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

Not applicable.

ITEM 11. CONTROLS AND PROCEDURES.

(a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a- 15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d- 15(b)).

(b) There  were no  changes  in the  registrant's  internal  control  over financial  reporting  (as  defined in Rule  30a-3(d)  under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period  covered by the report that has materially affected or is reasonably likely to  materially affect, the registrant's internal control over financial reporting.

ITEM 12. EXHIBITS.

(a)(1) Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto.

(a)(2)  Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

(a)(3)  Not applicable. There were no solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by this report by or on behalf of the registrant.

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant): DGHM Investment Trust

By:   /s/ Jeffrey C. Baker

Jeffrey C. Baker

President and Principal Executive Officer

Date:              May 10, 2012

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:   /s/ Jeffrey C. Baker

Jeffrey C. Baker

President and Principal Executive Officer,

DGHM Investment Trust

Date:              May 10, 2012

By:   /s/ Thomas F. Gibson

Thomas F. Gibson

Principal Financial Officer,

DGHM Investment Trust

Date:              May 10, 2012