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
811-22153
Dunham Funds
(Exact name of registrant as specified in charter)
10251 Vista Sorrento Pkwy, Ste. 200, San Diego, CA 92121
(Address of principal executive offices) (Zip code)
James Ash
Gemini Fund Services, LLC., 80 Arkay Drive, Suite 110, Hauppauge, NY 11788
(Name and address of agent for service)
Registrant's telephone number, including area code:
631-470-2619
Date of fiscal year end:
10/31
Date of reporting period: 4/30/13
THIS SEMI-ANNUAL REPORT CONTAINS “FORWARD-LOOKING STATEMENTS” WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. FORWARD-LOOKING STATEMENTS ALSO INCLUDE THOSE PRECEDED BY, FOLLOWED BY OR THAT INCLUDE THE WORDS “BELIEVES”, “EXPECTS”, “ANTICIPATES” OR SIMILAR EXPRESSIONS. SUCH STATEMENTS SHOULD BE VIEWED WITH CAUTION. ACTUAL RESULTS OR EXPERIENCE COULD DIFFER MATERIALLY FROM THE FORWARD-LOOKING STATEMENTS AS A RESULT OF MANY FACTORS, INCLUDING THE INABILITY OF THE FUNDS TO MEET SALES GOALS AND SLOWING OF THE OVERALL ECONOMY. EACH FUND MAKES NO COMMITMENTS TO DISCLOSE ANY REVISIONS TO FORWARD-LOOKING STATEMENTS, OR ANY FACTS, EVENTS OR CIRCUMSTANCES AFTER THE DATE HEREOF THAT MAY BEAR UPON FORWARD-LOOKING STATEMENTS. IN ADDITION, PROSPECTIVE PURCHASERS OF THE FUNDS SHOULD CONSIDER CAREFULLY THE INFORMATION SET FORTH HEREIN. OTHER FACTORS AND ASSUMPTIONS NOT IDENTIFIED ABOVE MAY ALSO HAVE BEEN INVOLVED IN THE DERIVATION OF THESE FORWARD-LOOKING STATEMENTS, AND THE FAILURE OF THESE OTHER ASSUMPTIONS TO BE REALIZED MAY ALSO CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE PROJECTED.
Dear Fellow Shareholders,
In the six months since my last letter to you, the S&P 500 has had six consecutive months of positive returns and on March 29, 2013, the S&P 500 finally closed at a record high, beating the mark set on October 9, 2007. However, as we many times find true of the markets, we had events to cause investors to pause - such as worries surrounding the "fiscal cliff", a horrific terrorist bombing in Boston and a number of overseas concerns. Despite the headwinds these events created, they were overcome by positive news surrounding improving conditions in employment, housing, and manufacturing data.
At the same time, little changed in the overseas markets, with the exception of short-term disruptions caused by the occasional news headline. This was evidenced by investor’s recent heightened anxiety over events like the news that Cyprus would need a bailout and China's economic slowdown, which temporarily shook global markets. Overall, even with this backdrop, foreign markets experienced strong appreciation, albeit with some additional volatility.
Currently, we believe that some of our markets, including the U.S. bond market, have been sailing in uncharted territory. Some who were seeking what they perceived as "safety" sought shelter in U.S. Treasury Bonds and found that this area of the bond market was one of the most volatile in the past six months. This was largely due to the Federal Open Market Committee's comments that the quantitative easing will be pared back.
At Dunham, we seek opportunities and evaluate risks across these environments. We seek to find investments choices that may have low correlation to the equity market in an effort to possibly allow you and your financial advisor to manage the risk in your portfolio. In addition to what we consider to be a robust lineup of Dunham Funds, in an effort to enhance our offering we have added our 15th fund .. In February , the Sherwood Forest Alternative Fund, renaming it the Dunham Alternative Strategy Fund.
We introduced the Dunham Alternative Strategy Fund in response to requests for an investment that is designed to behave differently from both the traditional stock and bond markets, and , most importantly , has tools at its disposal to take advantage of negative markets and potentially generate positive returns in declining markets. We will continue to stay abreast of important developments and are interested in new solutions, especially when it creates improved and differentiated opportunities for our investors.
We remain steadfast in our commitment to provide you with the highest level of service and an investment experience tailored to your unique needs and goals. We continue to review and monitor our existing institutional Sub-Advisers in an effort to bring you what we consider a world class line-up of people who are actively managing your money on a full-time basis.
Once again, thank you for your continued trust and the confidence that you have placed in us. At Dunham, we take that trust very seriously and look forward to servicing your investment needs for years to come.
Sincerely,
Jeffrey A. Dunham
President
Dunham & Associates Investment Counsel, Inc.
April 30, 2013
Investments are subject to risks and fluctuate in value. Diversification does not guarantee a profit or ensure against a loss.
Dunham Monthly Distribution Fund
Message from the Sub-Adviser (Westchester Capital Management, LLC)
The IQ Market Neutral Beta Index increased 3.1 percent over the six-month period ending April 30, 2013, as market neutral investment strategies in general increased during the period. Merger arbitrage strategies, as measured by the HFRX Merger Arbitrage Index, slightly outpaced the market neutral strategies in general, increasing 3.3 percent during the same time period. Falling behind both market neutral and merger arbitrage investment strategies, absolute return strategies, as measured by the HFRX Absolute Return Index, rose 2.0 percent over the six-month period. In contrast to the previous fiscal year, these strategies generally performed in line with each other since the start of the current fiscal year. The Sub-Adviser implements a variety of strategies in the Fund that attempt to take advantage of what it believes are the most attractive rewards for the lowest amount of risk.
Ranging from approximately 35 percent to 40 percent, merger arbitrage was the largest single strategy allocation within the Fund during the six-month period. The Sub-Adviser's careful risk-budgeting approach for the Fund generally directs the allocation weightings across strategies and to the holdings within each of the strategies. The Sub-Adviser continued to identify opportunities that it believed offered attractive reward potential in relation to risk. The mining-oriented stock-for-stock merger involving Glencore International PLC's (GLCNF) acquisition of Xstrata PLC (XTA LN) did not close on the anticipated March 15 date, but instead closed within days after the close of the most recent fiscal quarter. During the most recent fiscal quarter, Glencore International and Xstrata PLC both dropped close to 20 percent. However, in a stock-for-stock deal, the Sub-Adviser will purchase the target and short the acquirer. Therefore, since both stocks declined 20 percent, the loss incurred would be near zero due to the offsetting nature of the long and short positions.
The Sub-Adviser also implements buy/write strategies and risk-reversal strategies when it believes that there is ample risk-adjusted reward availability. Approximately 30 percent to 35 percent of the Fund was devoted to risk-reversal and buy/write opportunities. Both of these strategies generally helped positive performance during the period, although the risk-reversals by nature of their construction generally produce less upside in exchange for generally taking less downside. For example, Corrections Corp. of America (CXW), a company that develops and manages prisons and provides transportation for inmates, was utilized by the Sub-Adviser as a risk-reversal. At the beginning of the current fiscal year, the company reclassified itself as a REIT, gaining special exemptions from the IRS, but forcing the company to distribute virtually all of its income each year. Therefore, the company issued a special dividend at the end of the most recent fiscal quarter to the tune of approximately 20 percent of the current stock price. Over the six-month period, the holding returned close to 28.5 percent. During this timeframe, the Sub-Adviser also wrote covered calls on the position and used a portion of those proceeds to purchase out-of-the-money puts. Buy/write strategies in general, as measured by the CBOE Buy/Write Index, increased close to 4.5 percent during the six-month period as the buy/write strategies generally increased since the beginning of the current calendar year.
The income-oriented strategies, which represented approximately 20 percent to 30 percent of the Fund's holdings, aided positive performance but was not consistent in its outperformance of the other strategies utilized by the Fund. For example, the PrivateBancorp Inc., a company focused on business and personal financial services, preferred stock (742962400) increased 9.6 percent during the six-month period. The income-oriented strategy also includes corporate bonds, such as the Citigroup, Inc., a global holdings company focused on financial services to consumer and corporate customers, perpetual call bond (172967GD7), which increased 4.6 percent during the same timeframe. The Sub-Adviser believes that financial institutions will continue to buy back a number of their preferred shares in response to the restrictions placed on them by regulators.
The Sub-Adviser continues to be optimistic that there are abundant attractive risk-reward opportunities available across the various strategies that it implements. The Sub-Adviser continues to be encouraged by the low financing costs for companies, which generally stimulate and support new deal activity, providing additional options to choose from. In the event of a rising rate environment, the Sub-Adviser believes that the deal spreads and option premiums will generally expand along with the rising rates, increasing the attractiveness of those strategies used within the Fund.
Growth of $10,000 Investment - (Unaudited)
Total Returns as of April 30, 2013
| Six Months | One Year | Annualized Three Years | Annualized Since Inception (8/1/08)* |
Class N | 5.77% | 7.77% | 6.99% | 4.83%** |
Class C Class A with load of 5.75% Class A without load | 5.49% (0.20)% 5.89% | 6.97% 1.57% 7.75% | 6.00% 4.73% 6.82% | 3.01% 2.57% 3.80% |
Morningstar Multialternative Category | 2.84% | 3.05% | 2.27% | 0.70% |
IQ Hedge Market Neutral Beta Index | 3.05% | 3.36% | 2.19% | 2.92% |
* Westchester Capital Management, Inc. was named Sub-Adviser to the Fund on August 1, 2008. Prior to August 1, 2008, the Fund was named Kelmoore Strategy Liberty Fund and was managed under a different Adviser.
** Class N commenced operations on September 29, 2008.
The Morningstar Multialternative Category is generally representative of mutual funds with static allocations to alternative strategies and mutual funds that tactically allocate among alternative strategies and asset classes. The gross short exposure in these mutual funds is generally greater than 20%.
IQ Hedge Market Neutral Beta Index is a benchmark index designed to replicate the risk-adjusted return characteristics of the collective hedge funds using a market neutral investment style. Investors cannot invest directly in an index or benchmark.
As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including the cost of underlying funds, are 2.58% for Class N, 3.58% for Class C and 2.83% for Class A. The performance data quoted here represents past performance, which is not indicative of future results. Current performance may be lower or higher than the performance data quoted. The investment return and NAV will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Total returns are calculated assuming reinvestment of all dividends and capital gains distributions, if any. The returns do not reflect the deductions of taxes a shareholder would pay on the redemption of fund shares or fund distributions. For performance information current to the most recent month-end, please call 1-800-442-4358 or visit our website www.dunham.com.
SCHEDULE OF INVESTMENTS (Unaudited) |
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Dunham Monthly Distribution Fund |
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April 30, 2013 |
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Security |
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COMMON STOCK - 67.1 % |
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ADVERTISING - 0.4 % |
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Focus Media Holding Ltd. - ADR |
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| 16,723 |
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| $ 456,036 |
Lamar Advertising Co. - Cl. A * ** ^ # |
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| 10,500 |
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| 491,610 |
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| 947,646 |
AUTO MANUFACTURERS - 3.1 % |
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General Motors Co. * ^ # |
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| 225,400 |
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| 6,951,336 |
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BANKS - 4.7 % |
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BB&T Corp. ** ^ # |
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| 39,500 |
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| 1,215,415 |
Citigroup, Inc. ^ # |
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| 52,600 |
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| 2,454,316 |
Fifth Third Bancorp ^ # |
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| 227,800 |
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| 3,879,434 |
KeyCorp ** ^ # |
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| 292,800 |
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| 2,919,216 |
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| 10,468,381 |
BEVERAGES - 1.8 % |
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Constellation Brands, Inc. - Cl. A * ^ # |
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| 55,600 |
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| 2,743,860 |
DE Master Blenders * |
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| 80,381 |
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| 1,275,640 |
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| 4,019,500 |
BIOTECHNOLOGY - 1.0 % |
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Life Technologies Corp. * |
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| 30,202 |
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| 2,225,585 |
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CHEMICALS - 1.0 % |
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Huntsman Corp. ** ^ # |
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| 117,254 |
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| 2,211,410 |
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COMMERCIAL SERVICES - 3.2 % |
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Arbitron, Inc. # |
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| 72,635 |
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| 3,391,328 |
McGraw-Hill Cos, Inc. ** ^ # |
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| 71,600 |
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| 3,874,276 |
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| 7,265,604 |
COMPUTERS - 0.8 % |
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Dell, Inc. # |
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| 134,400 |
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| 1,800,960 |
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DIVERSIFIED FINANCIAL SERVICES - 3.7 % |
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NYSE Euronext # |
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| 140,631 |
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| 5,457,889 |
SLM Corp. ** ^ |
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| 136,700 |
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| 2,822,855 |
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| 8,280,744 |
FOOD - 3.1 % |
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Dean Foods Co. * ** ^ # |
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| 187,600 |
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| 3,590,664 |
Dole Foods Co., Inc. * ** ^ # |
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| 144,200 |
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| 1,551,592 |
HJ Heinz Co. ^ |
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| 26,093 |
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| 1,889,655 |
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| 7,031,911 |
FOREST PRODUCTS & PAPER - 0.9 % |
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International Paper Co. ** ^ |
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| 44,600 |
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| 2,095,308 |
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HEALTHCARE-SERVICES - 0.7 % |
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Coventry Health Care, Inc. # |
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| 30,432 |
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| 1,507,906 |
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INSURANCE - 3.5 % |
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Alterra Capital Holdings Ltd. |
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| 11,789 |
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| 383,732 |
American International Group, Inc. * ** ^ # |
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| 130,000 |
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| 5,384,600 |
Genworth Financial, Inc. - Cl. A * ** ^ # |
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| 206,200 |
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| 2,068,186 |
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| 7,836,518 |
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See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
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Dunham Monthly Distribution Fund (Continued) |
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April 30, 2013 |
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Security |
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INTERNET - 0.4 % |
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Equinix, Inc. * ** ^ |
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| 2,600 |
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| $ 556,660 |
Liberty Ventures * |
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| 4,378 |
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| 321,652 |
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| 878,312 |
LEISURE TIME - 0.2 % |
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WMS Industries, Inc. * |
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| 15,858 |
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| 402,476 |
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MACHINERY-DIVERSIFIED - 0.2 % |
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Gardner Denver, Inc. |
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| 2,224 |
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| 167,000 |
Intermec, Inc. * # |
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| 19,428 |
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| 191,172 |
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| 358,172 |
MEDIA - 5.7 % |
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Astral Media, Inc. |
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| 112,583 |
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| 5,472,291 |
CBS Corp. ** ^ # |
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| 88,000 |
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| 4,028,640 |
Discovery Communications, Inc. * # |
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| 20,758 |
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| 1,471,535 |
DISH Network Corp. ** ^ |
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| 14,500 |
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| 568,255 |
News Corp. ** ^ |
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| 44,700 |
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| 1,384,359 |
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| 12,925,080 |
MINING - 1.7 % |
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Freeport-McMoran Copper & Gold, Inc. ** ^ # |
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| 103,904 |
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| 3,161,799 |
Uranium One, Inc. * |
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| 255,855 |
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| 705,776 |
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| 3,867,575 |
MISCELLANEOUS MANUFACTURING - 1.0 % |
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Ingersoll-Rand PLC ** ^ |
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| 41,700 |
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| 2,243,460 |
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OIL & GAS - 10.4 % |
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Anadarko Petroleum Corp. ** ^ # |
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| 31,800 |
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| 2,695,368 |
BP PLC - ADR ** ^ # |
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| 102,200 |
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| 4,455,920 |
Hess Corp. ** ^ # |
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| 82,600 |
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| 5,962,068 |
McMoRan Exploration Co. * ^ |
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| 110,500 |
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| 1,828,775 |
Murphy Oil Corp. ** ^ |
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| 36,700 |
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| 2,278,703 |
Noble Corp. ** ^ |
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| 42,100 |
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| 1,578,750 |
Plains Exploration & Production Co. * |
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| 9,184 |
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| 415,117 |
Valero Energy Corp. ** ^ |
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| 104,500 |
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| 4,213,440 |
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| 23,428,141 |
PHARMACEUTICALS - 3.7 % |
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Abbott Laboratories ** ^ # |
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| 4,200 |
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| 155,064 |
Eli Lilly & Co. ** ^ # |
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| 57,300 |
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| 3,173,274 |
Pfizer, Inc. ** ^ # |
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| 167,900 |
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| 4,880,853 |
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| 8,209,191 |
PIPELINES - 2.7 % |
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Copano Energy LLC # |
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| 58,613 |
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| 2,355,656 |
Williams Cos, Inc. ** |
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| 95,500 |
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| 3,641,415 |
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| 5,997,071 |
REAL ESTATE INVESTMENT TRUSTS - 3.0 % |
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Corrections Corp. of America ** ^ # |
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| 90,900 |
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| 3,290,580 |
CYS Investments, Inc. # |
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| 272,390 |
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| 3,385,808 |
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| 6,676,388 |
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See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
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Dunham Monthly Distribution Fund (Continued) |
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April 30, 2013 |
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Security |
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RETAIL - 2.4 % |
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OfficeMax, Inc. ** ^ |
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| 173,545 |
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| $ 1,997,503 |
PCD Stores Group Ltd. |
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| 22,698,646 |
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| 3,422,083 |
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| 5,419,586 |
SAVING & LOANS - 2.0 % |
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Hudson City Bancorp, Inc. # |
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| 554,100 |
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| 4,604,571 |
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TELECOMMUNICATIONS - 5.8 % |
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AT&T, Inc. ** ^ |
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| 29,800 |
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| 1,116,308 |
Clearwire Corp. - Cl. A * ^ # |
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| 15,000 |
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| 50,400 |
Sprint Nextel Corp. * ** ^ |
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| 177,797 |
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| 1,253,469 |
T-Mobile US, Inc. ^ |
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| 72,620 |
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| 859,821 |
Verizon Communications, Inc. ** ^ |
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| 27,600 |
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| 1,487,916 |
Virgin Media, Inc. # |
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| 120,918 |
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| 5,898,380 |
Vodafone Group PLC - ADR ^ |
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| 81,200 |
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| 2,483,908 |
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| 13,150,202 |
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TOTAL COMMON STOCK (Cost - $139,170,358) |
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| 150,803,034 | |
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EXCHANGE TRADED FUNDS - 1.7 % |
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CLOSED-END FUNDS - 0.8 % |
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Eaton Vance Floating-Rate Income Trust # |
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| 109,701 |
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| 1,892,342 |
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DEBT FUND - 0.9 % |
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iShares S&P US Preferred Stock Index Fund |
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| 49,600 |
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| 2,022,192 |
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TOTAL EXCHANGE TRADED FUNDS (Cost - $3,759,539) |
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| 3,914,534 | |
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Security |
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PREFERRED STOCK - 16.0 % |
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BANKS - 6.5 % |
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Countrywide Capital IV # |
| 70,000 |
| 6.7500 | % |
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| 1,772,400 |
Bank of America (CFC) V # |
| 92,524 |
| 7.0000 |
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|
| 2,339,007 |
GMAC Capital Trust I # |
| 155,700 |
| 8.1250 | + |
|
| 4,264,623 |
PrivateBancorp, Inc. # |
| 80,000 |
| 7.1250 |
|
|
| 2,150,400 |
Royal Bank of Scotland Group PLC |
| 47,700 |
| 6.3500 |
|
|
| 1,101,870 |
Royal Bank of Scotland Group PLC # |
| 122,844 |
| 7.2500 |
|
|
| 3,091,983 |
|
|
|
|
|
|
|
| 14,720,283 |
DIVERSIFIED FINANCIAL SERVICES - 2.9 % |
|
|
|
|
|
|
|
|
Citigroup Capital XVII # |
| 88,597 |
| 6.3500 |
|
|
| 2,248,592 |
RBS Capital Funding Trust VII # |
| 165,491 |
| 6.0800 |
|
|
| 3,673,900 |
SLM Corp. |
| 9,808 |
| 6.9700 |
|
|
| 489,615 |
|
|
|
|
|
|
|
| 6,412,107 |
PIPELINES - 2.1 % |
|
|
|
|
|
|
|
|
NuStar Logistics LP |
| 170,900 |
| 7.6250 | + |
|
| 4,699,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham Monthly Distribution Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
| Dividend |
|
|
|
|
Security |
| Shares |
| Rate |
|
|
| Value |
REAL ESTATE INVESTMENT TRUSTS - 3.1 % |
|
|
|
|
|
|
|
|
Alexandria Real Estate Equities, Inc. |
| 30,000 |
| 7.0000 | % |
|
| $ 829,200 |
CommonWealth REIT # |
| 150,000 |
| 7.2500 |
|
|
| 3,808,500 |
LaSalle Hotel Properties |
| 50,000 |
| 7.5000 |
|
|
| 1,333,000 |
Ventas Capital Corp. |
| 40,000 |
| 5.4500 |
|
|
| 1,022,400 |
|
|
|
|
|
|
|
| 6,993,100 |
|
|
|
|
|
|
|
|
|
TOTAL PREFERRED STOCK (Cost - $31,564,967) |
|
|
|
|
|
| 32,825,240 | |
|
|
|
|
|
|
|
|
|
|
| Principal |
| Interest |
| Maturity |
|
|
BONDS & NOTES - 14.5 % |
| Amount |
| Rate |
| Date |
|
|
AIRLINES - 2.2 % |
|
|
|
|
|
|
|
|
American Airlines, Inc. - 144A *** # |
| $ 2,025,000 |
| 7.5000 | % | 3/15/2016 |
| 2,338,875 |
American Airlines, Inc. *** # |
| 2,329,000 |
| 10.5000 |
| 10/15/2012 |
| 2,739,485 |
|
|
|
|
|
|
|
| 5,078,360 |
BANKS - 3.8 % |
|
|
|
|
|
|
|
|
Citigroup, Inc. # |
| 2,000,000 |
| 5.9500 | + | Perpetual |
| 2,097,500 |
JPMorgan Chase & Co. # |
| 1,500,000 |
| 7.9000 | + | Perpetual |
| 1,748,822 |
Regions Financing Trust II # |
| 1,500,000 |
| 6.6250 | + | 5/15/2047 |
| 1,526,250 |
Wells Fargo & Co. # |
| 2,750,000 |
| 7.9800 | + | Perpetual |
| 3,186,563 |
|
|
|
|
|
|
|
| 8,559,135 |
DIVERSIFIED FINANCIAL SERVICES - 4.8 % |
|
|
|
|
|
|
|
|
General Electric Capital Corp. # |
| 5,600,000 |
| 7.125 | + | Perpetual |
| 6,566,862 |
Goldman Sachs Capital I # |
| 4,000,000 |
| 6.345 |
| 2/15/2034 |
| 4,222,508 |
|
|
|
|
|
|
|
| 10,789,370 |
HEALTHCARE PRODUCTS - 0.7 % |
|
|
|
|
|
|
|
|
Accellent, Inc. # |
| 1,500,000 |
| 8.375 |
| 2/1/2017 |
| 1,590,000 |
|
|
|
|
|
|
|
|
|
MEDIA - 0.2 % |
|
|
|
|
|
|
|
|
CCO Holdings Capital Corp. |
| 334,000 |
| 7.8750 |
| 4/30/2018 |
| 355,293 |
|
|
|
|
|
|
|
|
|
PHARMACEUTICALS - 1.6 % |
|
|
|
|
|
|
|
|
Elan Finance Corp. - 144A # |
| 3,032,000 |
| 6.2500 |
| 10/15/2019 |
| 3,571,363 |
|
|
|
|
|
|
|
|
|
RETAIL - 1.5 % |
|
|
|
|
|
|
|
|
Rite Aid Corp. # |
| 3,200,000 |
| 7.5000 |
| 3/1/2017 |
| 3,300,000 |
|
|
|
|
|
|
|
|
|
TELECOMMUNICATIONS - 1.1 % |
|
|
|
|
|
|
|
|
Clearwire Finance, Inc. - 144A |
| 1,958,000 |
| 12.0000 |
| 12/1/2015 |
| 2,098,731 |
MertoPCS Wireless, Inc. # |
| 405,000 |
| 6.625 |
| 11/15/2020 |
| 439,931 |
|
|
|
|
|
|
|
| 2,538,662 |
|
|
|
|
|
|
|
|
|
TOTAL BONDS & NOTES ( Cost - $34,475,047) |
|
|
|
|
|
| 35,782,183 | |
|
|
|
|
|
|
|
|
|
PURCHASED PUT OPTIONS - 0.3 % |
|
|
|
|
| Contracts** |
|
|
Abbott Labs, Expiration May 2013, Exercise Price $29 |
|
|
|
| 42 |
| 126 | |
AbbVie, Inc., Expiration May 2013, Exercise Price $30.00 |
|
|
|
| 42 |
| 210 | |
American International Group, Expiration May 2013, Exercise Price $30.00 |
|
|
| 321 |
| 642 | ||
American International Group, Expiration May 2013, Exercise Price $31.00 |
|
|
| 730 |
| 1,460 | ||
American International Group, Expiration June 2013, Exercise Price $35.00 |
|
|
| 166 |
| 2,822 | ||
Anadarko Petroleum Corp., Expiration May 2013, Exercise Price $62.50 |
|
|
|
| 30 |
| 150 | |
Anadarko Petroleum Corp., Expiration May 2013, Exercise Price $65.00 |
|
|
|
| 30 |
| 180 | |
Anadarko Petroleum Corp., Expiration May 2013, Exercise Price $72.50 |
|
|
|
| 144 |
| 3,168 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham Monthly Distribution Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
|
|
|
| Contracts** |
| Value |
PURCHASED PUT OPTIONS (Continued) - 0.3 % |
|
|
|
|
|
|
| |
Anadarko Petroleum Corporation, Expiration August 2013, Exercise Price $60.00 |
|
|
|
| 61 |
| $ 2,349 | |
Anadarko Petroleum Corporation, Expiration August 2013, Exercise Price $70.00 |
|
|
|
| 30 |
| 3,750 | |
AT&T, Inc., Expiration June 2013, Exercise Price $31.00 |
|
|
|
| 1,438 |
| 5,752 | |
BB&T Corp., Expiration June 2013, Exercise Price $26.00 |
|
|
|
| 197 |
| 1,576 | |
BP Plc-Spons ADR, Expiration October 2013, Exercise Price $37.00 |
|
|
|
| 818 |
| 49,080 | |
CBS Corp., Expiration June 2013, Exercise Price $37.00 |
|
|
|
| 49 |
| 858 | |
CBS Corp., Expiration June 2013, Exercise Price $35.00 |
|
|
|
| 391 |
| 4,888 | |
CenturyLink, Inc., Expiration July 2013, Exercise Price $29.00 |
|
|
|
| 1,110 |
| 13,875 | |
Corrections Corp. Of America, Expiration June 2013, Exercise Price $28.00 |
|
|
|
| 107 |
| 8,025 | |
Corrections Corp. Of America, Expiration September 2013, Exercise Price $28.00 |
|
|
|
| 199 |
| 14,925 | |
Dean Foods Co., Expiration June 2013, Exercise Price $14.00 |
|
|
|
| 714 |
| 7,140 | |
Dean Foods Co., Expiration September 2013, Exercise Price $13.00 |
|
|
|
| 301 |
| 3,762 | |
Deans Foods Co., Expiration June 2013, Exercise Price $12.00 |
|
|
|
| 1,161 |
| 5,805 | |
DISH Network Corp., Expiration September 2013, Exercise Price $32.00 |
|
|
|
| 96 |
| 9,120 | |
Dole Foods, Expiration July 2013, Exercise Price $8.00 |
|
|
|
| 1,274 |
| 12,740 | |
Eli Lilly & Co., Expiration July 2013, Exercise Price $47.00 |
|
|
|
| 573 |
| 10,886 | |
Equinix, Inc., Expiration June 2013, Exercise Price $180.00 |
|
|
|
| 26 |
| 2,795 | |
Freeport-McMoran Copper & Gold, Expiration August 2013, Exercise Price $21.00 |
|
|
|
| 148 |
| 2,516 | |
General Motors Co., Expiration June 2013, Exercise Price $19.00 |
|
|
|
| 1,167 |
| 4,668 | |
General Motors Co., Expiration June 2013, Exercise Price $20.00 |
|
|
|
| 376 |
| 1,128 | |
General Motors Co., Expiration June 2013, Exercise Price $21.00 |
|
|
|
| 250 |
| 1,000 | |
General Motors Co., Expiration June 2013, Exercise Price $22.00 |
|
|
|
| 150 |
| 750 | |
General Motors Co., Expiration September 2013, Exercise Price $21.00 |
|
|
|
| 311 |
| 4,665 | |
Genworth Financial, Inc-Cl A, Expiration June 2013, Exercise Price $4.00 |
|
|
|
| 2,062 |
| 6,186 | |
Hess Corp., Expiration May 2013, Exercise Price $52.50 |
|
|
|
| 220 |
| 660 | |
Hess Corp., Expiration May 2013, Exercise Price $57.50 |
|
|
|
| 606 |
| 3,333 | |
Huntsman Corp., Expiration May 2013, Exercise Price $12.00 |
|
|
|
| 2,191 |
| 10,955 | |
Huntsman Corp., Expiration May 2013, Exercise Price $13.00 |
|
|
|
| 206 |
| 1,030 | |
Huntsman Corp., Expiration May 2013, Exercise Price $15.00 |
|
|
|
| 145 |
| 1,450 | |
Huntsman Corp., Expiration August 2013, Exercise Price $14.00 |
|
|
|
| 175 |
| 4,375 | |
Ingersoll-Rand PLC, Expiration September 2013, Exercise Price $40.00 |
|
|
|
| 417 |
| 12,510 | |
International Paper Co., Expiration July 2013, Exercise Price $40.00 |
|
|
|
| 446 |
| 26,760 | |
Keycorp, Expiration June 2013, Exercise Price $7.00 |
|
|
|
| 2,928 |
| 5,856 | |
Lamar Advertising Co., Expiration July 2013, Exercise Price $31.00 |
|
|
|
| 53 |
| 1,192 | |
Mcgraw Hill Financial, Inc., Expiration May 2013, Exercise Price $35.00 |
|
|
|
| 41 |
| 205 | |
Mcgraw Hill Financial, Inc., Expiration May 2013, Exercise Price $37.50 |
|
|
|
| 436 |
| 2,180 | |
Murphy Oil Corp., Expiration July 2013, Exercise Price $52.50 |
|
|
|
| 183 |
| 6,588 | |
News Corp., Inc. Expiration July 2013, Exercise Price $25.00 |
|
|
|
| 447 |
| 6,705 | |
Noble Corp., Expiration September 2013, Exercise Price $28.00 |
|
|
|
| 421 |
| 19,366 | |
OfficeMax, Inc., Expiration May 2013, Exercise Price $10.00 |
|
|
|
| 370 |
| 7,400 | |
OfficeMax, Inc., Expiration May 2013, Exercise Price $8.00 |
|
|
|
| 132 |
| 1,320 | |
OfficeMax, Inc., Expiration May 2013, Exercise Price $9.00 |
|
|
|
| 1,055 |
| 5,275 | |
Pfizer, Inc., Expiration June 2013, Exercise Price $23.00 |
|
|
|
| 222 |
| 666 | |
Pfizer, Inc., Expiration July 2013, Exercise Price $26.00 |
|
|
|
| 517 |
| 9,823 | |
Pfizer, Inc., Expiration September 2013, Exercise Price $25.00 |
|
|
|
| 378 |
| 11340 | |
SLM Corp., Expiration July 2013, Exercise Price $13.00 |
|
|
|
| 949 |
| 6,169 | |
SLM Corp., Expiration July 2013, Exercise Price $16.00 |
|
|
|
| 220 |
| 2,530 | |
SLM Corp., Expiration July 2013, Exercise Price $18.00 |
|
|
|
| 198 |
| 4,850 | |
SPDR S&P 500 ETF Trust, Expiration June 2013, Exercise Price $155.00 |
|
|
|
| 322 |
| 64,078 | |
SPDR S&P 500 ETF Trust, Expiration June 2013, Exercise Price $158.00 |
|
|
|
| 230 |
| 64,400 | |
SPDR Financial Select Sector Fund, Expiration June 2013, Exercise Price $18.00 |
|
|
|
| 137 |
| 3,288 | |
Sprint Nextel Corp., Expiration January 2014, Exercise Price $10.00 |
|
|
|
| 396 |
| 130,680 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham Monthly Distribution Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
|
|
|
| Contracts** |
| Value |
PURCHASED PUT OPTIONS (Continued) - 0.3 % |
|
|
|
|
|
|
| |
Valero Energy Corp., Expiration June 2013, Exercise Price $28.00 |
|
|
|
| 417 |
| $ 3,128 | |
Valero Energy Corp., Expiration June 2013, Exercise Price $34.00 |
|
|
|
| 103 |
| 3,708 | |
Valero Energy Corp., Expiration June 2013, Exercise Price $38.00 |
|
|
|
| 103 |
| 12,875 | |
Valero Energy Corp., Expiration September 2013, Exercise Price $33.00 |
|
|
|
| 109 |
| 11,391 | |
Valero Energy Corp., Expiration September 2013, Exercise Price $35.00 |
|
|
|
| 104 |
| 16,120 | |
Verizon Communications, Inc., Expiration July 2013, Exercise Price $38.00 |
|
|
|
| 92 |
| 415 | |
Vivendi, Expiration May 2013, Exercise Price EUR 12.00 |
|
|
|
| 732 |
| 964 | |
Williams Cos., Inc., Expiration May 2013, Exercise Price $28.00 |
|
|
|
| 955 |
| 2,865 | |
TOTAL PURCHASED PUT OPTIONS (Cost - $1,524,045) |
|
|
|
|
|
| 653,447 | |
|
|
|
|
|
|
|
|
|
SHORT-TERM INVESTMENT - 1.8 % |
|
|
|
|
| Interest |
|
|
MONEY MARKET FUND - 1.8 % |
| Shares |
|
|
| Rate |
|
|
First American Government Obligations Fund |
| 4,006,012 |
|
|
| 0.00%+ |
| 4,006,012 |
TOTAL SHORT-TERM INVESTMENT (Cost - $4,006,012) |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
TOTAL INVESTMENTS - 101.4 % (Cost - $214,499,968) |
|
|
|
|
|
| $ 227,984,450 | |
LIABILITIES IN EXCESS OF OTHER ASSETS - (1.4) % |
|
|
|
|
|
| (3,177,357) | |
NET ASSETS - 100.0 % |
|
|
|
|
|
|
| $ 224,807,093 |
|
|
|
|
|
|
|
|
|
* Non-Income producing security. |
|
|
|
|
|
|
|
|
** Each Purchased Option contract allows the Fund to sell 100 shares of the underlying security at the exercise price. | ||||||||
*** Issuer in default on interest payments, non-interest producing security. |
|
|
|
|
|
|
| |
ADR- American Depositary Receipt. |
|
|
|
|
|
|
|
|
+ Variable rate security. Interest rate is as of April 30, 2013. |
|
|
|
|
|
|
| |
^ Subject to call option written. |
|
|
|
|
|
|
|
|
# All or a portion of the security is segregated as collateral for securities sold short and/or options purchased/written at April 30, 2013. Total collateral had a market value of $133,642,481 at April 30, 2013. | ||||||||
|
|
|
|
|
|
|
|
|
Security |
|
|
|
|
| Contracts ++ |
| Value |
SCHEDULE OF WRITTEN CALL OPTIONS - (6.7) % |
|
|
|
|
|
|
| |
Abbott Labs, Expiration May 2013, Exercise Price $34.00 |
|
|
|
| 42 |
| $ 12,600 | |
American International Group, Expiration May 2013, Exercise Price $35.00 |
|
|
|
| 321 |
| 202,230 | |
American International Group, Expiration May 2013, Exercise Price $36.00 |
|
|
|
| 730 |
| 401,500 | |
American International Group, Expiration June 2013, Exercise Price $38.00 |
|
|
|
| 249 |
| 98,355 | |
Anadarko Petroleum Corp., Expiration May 2013, Exercise Price $75.00 |
|
|
|
| 30 |
| 29,700 | |
Anadarko Petroleum Corp., Expiration May 2013, Exercise Price $80.00 |
|
|
|
| 144 |
| 79,200 | |
Anadarko Petroleum Corp., Expiration August 2013, Exercise Price $72.50 |
|
|
|
| 61 |
| 82,808 | |
Anadarko Petroleum Corp., Expiration August 2013, Exercise Price $82.50 |
|
|
|
| 30 |
| 20,925 | |
AT&T, Inc., Expiration June 2013, Exercise Price $36.00 |
|
|
|
| 1438 |
| 267,468 | |
BB&T Corp., Expiration June 2013, Exercise Price $30.00 |
|
|
|
| 395 |
| 43,055 | |
BP Plc-Spons ADR, Expiration October 2013, Exercise Price $41.00 |
|
|
|
| 1022 |
| 321,930 | |
CBS Corp., Expiration June 2013, Exercise Price $40.00 |
|
|
|
| 782 |
| 484,840 | |
CBS Corp., Expiration June 2013, Exercise Price $42.00 |
|
|
|
| 98 |
| 43,610 | |
CenturyLink, Inc., Expiration July 2013, Exercise Price $34.00 |
|
|
|
| 1110 |
| 399,600 | |
Citigroup, Inc., Expiration June 2013, Exercise Price $42.00 |
|
|
|
| 526 |
| 265,630 | |
Clearwire Corp- Class A, Expiration June 2013, Exercise Price $3.00 |
|
|
|
| 150 |
| 6,750 | |
Constellation Brands, Inc. - A, Expiration June 2013, Exercise Price $47.50 |
|
|
|
| 28 |
| 8,120 | |
Constellation Brands, Inc. - A, Expiration June 2013, Exercise Price $45.00 |
|
|
|
| 27 |
| 13,365 | |
Constellation Brands, Inc. - A, Expiration July 2013, Exercise Price $45.00 |
|
|
|
| 501 |
| 255,510 | |
Corrections Corp. Of America, Expiration June 2013, Exercise Price $34.00 |
|
|
|
| 300 |
| 259,500 | |
Corrections Corp. Of America, Expiration June 2013, Exercise Price $35.00 |
|
|
|
| 107 |
| 81,855 | |
Corrections Corp. Of America, Expiration September 2013, Exercise Price $37.00 |
|
|
|
| 502 |
| 331,320 | |
Deans Foods Co., Expiration June 2013, Exercise Price $16.00 |
|
|
|
| 861 |
| 284,130 | |
Deans Foods Co., Expiration June 2013, Exercise Price $17.00 |
|
|
|
| 714 |
| 178,500 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham Monthly Distribution Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
|
|
|
| Contracts ++ |
| Value |
SCHEDULE OF WRITTEN CALL OPTIONS (Continued) - (6.7) % |
|
|
|
|
|
|
| |
Deans Foods Co., Expiration September 2013, Exercise Price $17.00 |
|
|
|
| 301 |
| $ 87,290 | |
DISH Network Corp., Expiration September 2013, Exercise Price $36.00 |
|
|
|
| 145 |
| 75,400 | |
Dole Foods, Expiration July 2013, Exercise Price $10.00 |
|
|
|
| 1442 |
| 151,410 | |
Eli Lilly & Co., Expiration July 2013, Exercise Price $55.00 |
|
|
|
| 573 |
| 94,545 | |
Equinix Inc., Expiration June 2013, Exercise Price $200.00 |
|
|
|
| 26 |
| 44,980 | |
Fifth Third Bancorp, Expiration May 2013, Exercise Price $16.00 |
|
|
|
| 2278 |
| 239,190 | |
Freeport-McMoran Copper & Gold, Expiration May 2013, Exercise Price $31.00 |
|
|
|
| 931 |
| 52,136 | |
Freeport-McMoran Copper & Gold, Expiration August 2013, Exercise Price $26.00 |
|
|
|
| 148 |
| 61,790 | |
General Motors Co., Expiration September 2013, Exercise Price $26.00 |
|
|
|
| 161 |
| 86,135 | |
General Motors Co., Expiration September 2013, Exercise Price $27.00 |
|
|
|
| 150 |
| 68,400 | |
General Motors Co., Expiration June 2013, Exercise Price $25.00 |
|
|
|
| 1389 |
| 819,510 | |
General Motors Co., Expiration June 2013, Exercise Price $26.00 |
|
|
|
| 154 |
| 76,615 | |
General Motors Co., Expiration June 2013, Exercise Price $27.00 |
|
|
|
| 150 |
| 60,750 | |
General Motors Co., Expiration June 2013, Exercise Price $29.00 |
|
|
|
| 250 |
| 60,000 | |
Genworth Financial, Inc-Cl A, Expiration June 2013, Exercise Price $8.00 |
|
|
|
| 2062 |
| 437,144 | |
Glencore Xstrata PLC, Expiration May 2013, Exercise Price GBP 32 |
|
|
|
| 28 |
| 3,370 | |
Heinz (H.J.) Co., Expiration June 2013, Exercise Price $75.00 |
|
|
|
| 830 |
| 4,150 | |
Heinz (H.J.) Co., Expiration September 2013, Exercise Price $75.00 |
|
|
|
| 316 |
| 1,580 | |
Hess Corp., Expiration May 2013, Exercise Price $65.00 |
|
|
|
| 826 |
| 536,900 | |
Huntsman Corp., Expiration May 2013, Exercise Price $16.00 |
|
|
|
| 584 |
| 175,200 | |
Huntsman Corp., Expiration May 2013, Exercise Price $17.00 |
|
|
|
| 206 |
| 43,260 | |
Huntsman Corp., Expiration May 2013, Exercise Price $18.00 |
|
|
|
| 145 |
| 18,125 | |
Huntsman Corp., Expiration August 2013, Exercise Price $18.00 |
|
|
|
| 175 |
| 37,100 | |
Ingersoll-Rand PLC, Expiration September 2013, Exercise Price $50.00 |
|
|
|
| 105 |
| 56,175 | |
Ingersoll-Rand PLC, Expiration September 2013, Exercise Price $52.50 |
|
|
|
| 311 |
| 111,960 | |
Intercontinental Exchange, Inc., Expiration June 2013, Exercise Price $110.00 |
|
|
|
| 127 |
| 666,115 | |
Intercontinental Exchange, Inc., Expiration June 2013, Exercise Price $120.00 |
|
|
|
| 170 |
| 721,650 | |
International Paper Co., Expiration July 2013, Exercise Price $45.00 |
|
|
|
| 446 |
| 153,870 | |
J.P. Morgan Chase & Co., Expiration September 2013, Exercise Price $48.00 |
|
|
|
| 351 |
| 14,040 | |
Keycorp, Expiration June 2013, Exercise Price $9.00 |
|
|
|
| 2928 |
| 298,656 | |
Lamar Advertising Co., Expiration July 2013, Exercise Price $37.00 |
|
|
|
| 105 |
| 106,575 | |
Liberty Global, Inc., Expiration July 2013, Exercise Price $55.00 |
|
|
|
| 94 |
| 170,610 | |
Liberty Global, Inc., Expiration July 2013, Exercise Price $60.00 |
|
|
|
| 206 |
| 272,950 | |
M&T Bank Corp, Expiration May 2013, Exercise Price $95.00 |
|
|
|
| 27 |
| 13,500 | |
M&T Bank Corp., Expiration July 2013, Exercise Price $95.00 |
|
|
|
| 210 |
| 126,000 | |
Mcgraw Hill Financial, Inc., Expiration May 2013, Exercise Price $40.00 |
|
|
|
| 654 |
| 915,600 | |
Mcgraw Hill Financial, Inc., Expiration May 2013, Exercise Price $42.50 |
|
|
|
| 62 |
| 72,230 | |
McMoran Exploration Co., Expiration May 2013, Exercise Price $16.00 |
|
|
|
| 1105 |
| 79,560 | |
Murphy Oil Corp., Expiration July 2013, Exercise Price $57.50 |
|
|
|
| 368 |
| 204,240 | |
News Corp., Inc., Expiration July 2013, Exercise Price $30.00 |
|
|
|
| 447 |
| 93,870 | |
Noble Corp., Expiration September 2013, Exercise Price $34.00 |
|
|
|
| 421 |
| 189,450 | |
OfficeMax, Inc., Expiration May 2013, Exercise Price $10.00 |
|
|
|
| 263 |
| 5,260 | |
OfficeMax, Inc., Expiration August 2013, Exercise Price $11.00 |
|
|
|
| 1055 |
| 131,875 | |
OfficeMax, Inc., Expiration August 2013, Exercise Price $12.00 |
|
|
|
| 370 |
| 25,900 | |
Pfizer, Inc., Expiration June 2013, Exercise Price $27.00 |
|
|
|
| 562 |
| 128,136 | |
Pfizer, Inc., Expiration June 2013, Exercise Price $28.00 |
|
|
|
| 222 |
| 28,638 | |
Pfizer, Inc., Expiration July 2013, Exercise Price $30.00 |
|
|
|
| 517 |
| 24,299 | |
SLM Corp., Expiration July 2013, Exercise Price $18.00 |
|
|
|
| 949 |
| 263,822 | |
SLM Corp., Expiration July 2013, Exercise Price $19.00 |
|
|
|
| 220 |
| 41,910 | |
SLM Corp., Expiration July 2013, Exercise Price $20.00 |
|
|
|
| 198 |
| 23,265 | |
Metro PCS, Inc., Expiration May 2013, Exercise Price $10.00 |
|
|
|
| 3,486 |
| 676,284 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham Monthly Distribution Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
|
|
|
| Contracts ++ |
| Value |
SCHEDULE OF WRITTEN CALL OPTIONS (Continued) - (6.7) % |
|
|
|
|
|
|
| |
Metro PCS, Inc., Expiration June 2013, Exercise Price $11.00 |
|
|
|
| 398 |
| $ 35,820 | |
Metro PCS, Inc., Expiration August 2013, Exercise Price $10.00 |
|
|
|
| 1088 |
| 220,320 | |
Metro PCS, Inc., Expiration August 2013, Exercise Price $11.00 |
|
|
|
| 804 |
| 98,088 | |
Valero Energy Corp., Expiration June 2013, Exercise Price $32.00 |
|
|
|
| 626 |
| 525,840 | |
Valero Energy Corp., Expiration June 2013, Exercise Price $39.00 |
|
|
|
| 103 |
| 27,295 | |
Valero Energy Corp., Expiration June 2013, Exercise Price $42.00 |
|
|
|
| 103 |
| 13,699 | |
Valero Energy Corp., Expiration September 2013, Exercise Price $38.00 |
|
|
|
| 109 |
| 48,505 | |
Valero Energy Corp., Expiration September 2013, Exercise Price $40.00 |
|
|
|
| 104 |
| 36,920 | |
Verizon Communications, Inc., Expiration July 2013, Exercise Price $42.00 |
|
|
|
| 3 |
| 3,630 | |
Verizon Communications, Inc., Expiration July 2013, Exercise Price $43.00 |
|
|
|
| 11 |
| 12,100 | |
Verizon Communications, Inc., Expiration July 2013, Exercise Price $45.00 |
|
|
|
| 262 |
| 231,215 | |
Vivendi, Expiration May 2013, Exercise Price 15.50 EUR |
|
|
|
| 213 |
| 48,239 | |
Vivendi, Expiration May 2013, Exercise Price 16.00 EUR |
|
|
|
| 519 |
| 85,421 | |
Vodafone Group PLC, Expiration July 2013, Exercise Price $28.00 |
|
|
|
| 812 |
| 223,300 | |
Williams Cos., Inc., Expiration May 2013, Exercise Price $34.00 |
|
|
|
| 955 |
| 396,325 | |
Xstrata Plc, Expiration June 2013, Exercise Price GBP 10.00 |
|
|
|
| 12 |
| 4,194 | |
Xstrata Plc, Expiration June 2013, Exercise Price GBP 10.50 |
|
|
|
| 38 |
| 5,901 | |
TOTAL WRITTEN CALL OPTIONS - (Proceeds - $10,046,681) |
|
|
|
|
|
| 15,040,733 | |
|
|
|
|
|
|
|
|
|
SCHEDULE OF WRITTEN PUT OPTIONS - 0.0 % |
|
|
|
|
|
|
| |
SPDR S&P 500 ETF Trust, Expiration June 2013, Exercise Price $148.00 |
|
|
|
| 321 |
| 27,606 | |
SPDR S&P 500 ETF Trust, Expiration June 2013, Exercise Price $150.00 |
|
|
|
| 92 |
| 10,028 | |
Pfizer, Inc., Expiration September 2013, Exercise Price $29.00 |
|
|
|
| 378 |
| 43,092 | |
Sprint Nextel Corp., Expiration January 2014, Exercise Price $4.00 |
|
|
|
| 395 |
| 3,160 | |
TOTAL WRITTEN PUT OPTIONS - (Proceeds - $107,684) |
|
|
|
|
|
| 80,726 | |
|
|
|
|
|
|
|
|
|
++ Each Written Call/Put Option contract allows the holder to purchase/sell 100 shares of the underlying security from/to the Fund at the stated exercise price. | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
|
|
SECURITIES SOLD SHORT - (8.8) % |
|
|
|
|
|
|
|
|
Aetna, Inc. |
|
|
|
|
| 78,800 |
| 4,526,272 |
ASML Holding NV |
|
|
|
|
| 78,465 |
| 5,835,503 |
Discovery Communications, Inc. * |
|
|
|
|
| 20,758 |
| 1,636,146 |
Expedia, Inc. |
|
|
|
|
| 2,745 |
| 153,281 |
IntercontinentalExchange, Inc. * ^ |
|
|
|
|
| 11,331 |
| 1,846,160 |
Kinder Morgan Management LLC * |
|
|
|
|
| 13,601 |
| 1,200,557 |
Liberty Global, Inc. * ^ |
|
|
|
|
| 11,189 |
| 809,748 |
Liberty Global, Inc. * |
|
|
|
|
| 13,332 |
| 901,910 |
M&T Bank Corp. ^ |
|
|
|
|
| 22,782 |
| 2,282,756 |
Markel Corp. * |
|
|
|
|
| 509 |
| 272,951 |
Office Depot, Inc. * |
|
|
|
|
| 12,764 |
| 49,269 |
TripAdvisor, Inc. * |
|
|
|
|
| 3,759 |
| 197,648 |
TOTAL SECURITIES SOLD SHORT - (Proceeds - $17,037,346) |
|
|
|
|
|
| 19,712,201 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unrealized |
LONG EQUITY SWAP CONTRACTS- 1.7 % |
|
|
|
|
|
|
| Appreciation/ (Depreciation) |
Apollo Residential Mortgage Equity Swap, JP Morgan - April 19, 2014 |
|
|
|
|
|
| $ 32,797 | |
to receive total return of Apollo Residential Mortageg less USD- 3 Month LIBOR |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $1,829,630) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
|
|
|
|
| �� |
|
|
|
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham Monthly Distribution Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unrealized |
LONG EQUITY SWAP CONTRACTS (Continued) - 1.7 % |
|
|
|
|
|
| Appreciation/ (Depreciation) | |
AT&T, Inc. Equity Swap, JP Morgan - November 28, 2013 |
|
|
|
|
|
| $ 383,291 | |
to receive total return of AT&T less USD- 3 Month LIBOR |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $3,887,149) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australian Infrastructure Equity Swap, JP Morgan - September 24, 2013 |
|
|
|
|
|
| 77,781 | |
to receive total return of Australian Infrastructure less USD- 3 Month LIBOR |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $2,317,055) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Century Link, Inc. Equity Swap, JP Morgan - December 10, 2013 |
|
|
|
|
|
| (147,630) | |
to receive total return of Century Link, Inc. less USD- 3 Month LIBOR |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $4,317,900) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CNH Global NV ADR Equity Swap, JP Morgan - November 27, 2013 |
|
|
|
|
|
| (83,792) | |
to receive total return of CNH Global NV ADR less USD- 3 Month LIBOR |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $632,689) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copano Energy LLC Equity Swap, JP Morgan - March 17, 2014 |
|
|
|
|
|
| 974 | |
to receive total return of Copano Energy LLC less USD- 3 Month LIBOR |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $15,592) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coventry Healthcare, Inc. Equity Swap, JP Morgan - November 19, 2013 |
|
|
|
|
|
| 1,215,976 | |
to receive total return of Coventry Healthcare, Inc. less USD- 3 Month LIBOR |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $7,306,178) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cymer, Inc. Equity Swap, JP Morgan - December 6, 2013 |
|
|
|
|
|
| 507,044 | |
to receive total return of Cymer, Inc. less USD- 3 Month LIBOR |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $7,012,943) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grain Corp Ltd Equity Swap, JP Morgan - December 4, 2013 |
|
|
|
|
|
| 106,779 | |
to receive total return of Grain Corp Ltd less USD- 3 Month LIBOR |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $1,389,189) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grupo Modelo SA Equity Swap, JP Morgan - June 29, 2013 |
|
|
|
|
|
| 49,043 | |
to receive total return of Grupo Modelo SA less USD- 3 Month LIBOR |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $3,806,400) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Heinz (H.J.) Co. Equity Swap, JP Morgan - March 11, 2014 |
|
|
|
|
|
| (9,740) | |
to receive total return of Heinz (H.J) Co. less USD- 3 Month LIBOR |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $6,422,386) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JP Morgan Chase & Co. Equity Swap, JP Morgan - November 21, 2013 |
|
|
|
|
|
| 1,351,797 | |
to receive total return of JP Morgan Chase & Co. less USD- 3 Month LIBOR |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $6,829,448) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Life Technologies Corp. Equity Swap, JP Morgan - April 29, 2014 |
|
|
|
|
|
| (3,685) | |
to receive total return of Life Technologies Corp. less USD- 3 Month LIBOR |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $3,220,843) |
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham Monthly Distribution Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unrealized |
LONG EQUITY SWAP CONTRACTS (Continued) - 1.7 % |
|
|
|
|
|
| Appreciation/ (Depreciation) | |
NYSC Euronext Equity Swap, JP Morgan - April 22, 2014 |
|
|
|
|
|
| $ 149,560 | |
to receive total return of NYSE Euronext less USD- 3 Month LIBOR |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $3,731,440) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metro PCS, Inc. Equity Swap, JP Morgan - December 5, 2013 |
|
|
|
|
|
| 851,872 | |
to receive total return of T-Mobile US, Inc. less USD- 3 Month LIBOR |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $5,127,328) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vivendi Equity Swap, JP Morgan - April 2, 2014 |
|
|
|
|
|
|
| 135,816 |
to receive total return of Vivendi less USD- 3 Month LIBOR |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $1,522,088) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WMS Industries Equity Swap, JP Morgan - March 13, 2014 |
|
|
|
|
|
| 41,162 | |
to receive total return of WMS Industries less USD- 3 Month LIBOR |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $3,378,388) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Xstrata PLC Equity Swap, JP Morgan - February 10, 2014 |
|
|
|
|
|
| (923,409) | |
to receive total return of Xstrata PLC less USD- 3 Month LIBOR |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $7,710,298) |
|
|
|
|
|
|
|
|
TOTAL LONG EQUITY SWAP CONTRACTS |
|
|
|
|
|
|
| 3,735,636 |
|
|
|
|
|
|
|
|
|
SHORT EQUITY SWAP CONTRACTS- 0.4 % |
|
|
|
|
|
|
|
|
ASM Lithography Holdings NV Equity Swap, JP Morgan - December 6, 2013 |
|
|
|
|
|
| (49,698) | |
to pay total return of ASM Lithography Holdings NV less USD- 3 Month LIBOR |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $261,838) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiat Industrial Equity Swap, JP Morgan - November 26, 2013 |
|
|
|
|
|
| (25,552) | |
to pay total return of Fiat Industrial less USD- 3 Month LIBOR |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $560,924) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Glencore Xstrata PLC Equity Swap, JP Morgan - September 12, 2013 |
|
|
|
|
|
| 893,635 | |
to pay total return of Glencore Xstrata PLC less USD- 3 Month LIBOR |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $6,214,000) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kinder Morgan Management LLC Utilities Equity Swap, JP Morgan - March 17, 2014 |
|
|
|
|
|
| (1,466) | |
to pay total return of Kinder Morgan Management LLC Utilities less USD- 3 Month LIBOR |
|
|
|
|
|
|
| |
(NOTIONAL AMOUNT $15,374) |
|
|
|
|
|
|
|
|
TOTAL SHORT EQUITY SWAP CONTRACTS |
|
|
|
|
|
| 816,919 | |
|
|
|
|
|
|
|
|
|
TOTAL EQUITY SWAP CONTRACTS |
|
|
|
|
|
|
| $ 4,552,555 |
|
|
|
|
|
|
|
|
|
Portfolio Composition * - (Unaudited) | ||||||||
Financial |
| 38.37% |
| Basic Materials |
|
|
| 3.60% |
Consumer, Non-cyclical |
| 15.58% |
| Short-Term Investment |
| 1.76% | ||
Energy |
| 15.01% |
| Funds |
|
|
| 0.89% |
Communications |
| 13.55% |
| Industrial |
|
|
| 1.14% |
Consumer, Cyclical |
| 9.30% |
| Technology |
|
|
| 0.80% |
|
|
|
| Total |
|
|
| 100.00% |
* Based on total value of investments as of April 30, 2013 |
|
|
|
|
|
|
| |
Percentage may differ from Schedule of Investments which is based on Fund net assets. |
See accompanying notes to financial statements.
Dunham Corporate/Government Bond Fund
Message from the Sub-Adviser (Newfleet Asset Management, LLC)
Bonds broadly started the fiscal year in negative territory but quickly moved into positive territory by the end of the second fiscal quarter. Treasuries in the middle of the yield curve, as measured by the BofA ML Treasuries 5-7 Years Index, ended the second fiscal quarter in positive territory up 1.9 percent. This was quite the improvement over the previous fiscal quarter when these same bonds fell 0.7 percent, bringing six-month performance to 1.4 percent. Long-term Treasuries, as measured by the BofA ML Treasuries 10+ Years Index, rose 5 percent over the second fiscal quarter. This positive performance was a great contrast to the 3.9 percent drop in the first fiscal quarter. Broad investment-grade bonds, as measured by the Barclays Aggregate Bond Index, closed the second fiscal quarter up 1.6 percent likely due to the strong performance of high-yield bonds and bank loans. Corporate bonds, as measured by the BofA ML U.S. Corporate Bond Master Index, outperformed broad investment-grade bonds, gaining 2.5 percent in the second fiscal quarter. Over the six-month period ending April 30, 2013, broad investment-grade bonds and corporate bonds rose 0.9 percent and 1.7 percent, respectively.
Long-term Treasuries seemed to slightly underperform the intermediate-term Treasuries over the fiscal year-to-date. During the six-month period ending April 30, 2013, long-term Treasuries rose 0.9 percent, while intermediate-term Treasuries rose 1.4 percent. The Sub-Adviser continues to maintain a relative underweight to Treasuries in general, which slightly detracted from relative performance over the last six months. As the quarter progressed, the U.S. economy showed signs of life and the focus on the fiscal cliff shifted away from the economic news forefront. Over the past 12 months, long-term and intermediate-term Treasuries were up 7.0 percent and 3.1 percent, respectively.
The Sub-Adviser continued to overweight bank loan debt through the end of the second fiscal quarter as they gravitated towards it for the yield advantage. Both high-yield bonds and bank loans generally outperformed the majority of the other fixed income sectors. What the Sub-Adviser believes to be solid fundamentals, attractive valuations, and low defaults seemed to contribute to the strong performance of the high-yield bonds, as measured by the BofA ML High-Yield Bond Cash Pay Index, increased 7.2 percent over the six-month period, outperforming both investment-grade bonds and Treasuries, in general. After reducing the Fund’s exposure to high-yield bonds during the first fiscal quarter, the Sub-Adviser eventually added 3.5 percent to their high-yield exposure by the end of the second fiscal quarter.
The Sub-Adviser started the fiscal year with an underweight to non-agency mortgage-backed securities, as it continued to be concerned with volatility and uncertainty in the space. Mortgage-backed securities as a whole, as measured by the BofA ML Mortgage Master Index, rose only 0.4 percent during the six-month period. This underweight did benefit relative performance. In addition, the Sub-Adviser’s decision to specifically overweight commercial mortgage-backed securities (CMBS) strongly contributed to relative performance over the six months. Commercial mortgage-backed securities in general, as measured by the BofA ML CMBS Fixed Rate Index, rose 1.8 percent over the same time period. In the second fiscal quarter, the Sub-Adviser also underweighted non-financial services sectors like the telecommunications sector as it started to underperform. The telecommunications sector, in general, experienced weaker than expected operating metrics. Specifically, companies like Earthlink (270321AC6) and American Rock Salt (02932XAA4) felt significant losses in the second fiscal quarter.
While the Sub-Adviser has retained an optimistic outlook on the U.S. economy, it does not anticipate that the economy will see substantial growth, but rather may see low-to-moderate growth around the 2 percent rate. The Sub-Adviser continues to hold more bank loan debt, with floating interest rates, compelling spreads, covenant protection, and attractive absolute yields, as they believe loans can perform well in both stable and rising rate environments. The Sub-Adviser also believes that investors are focusing on easy monetary policy, low rates, steady corporate earnings, and an overall improving U.S. economic backdrop as rationale to reduce cash balances to the benefit of risk assets.
Growth of $10,000 Investment - (Unaudited)
Total Returns as of April 30, 2013
Six Months | One Year | Annualized Three Years | Annualized Five Years | Annualized Since Inception (12/10/04) | |
Class N | 2.22% | 5.79% | 6.07% | 6.42% | 5.31% |
Class C Class A with load of 4.50% Class A without load | 1.86% (2.47)% 2.10% | 5.00% 0.79% 5.56% | 5.29% 4.21% 5.81% | 5.63% 5.18% 6.15% | 4.53% 4.91%* 5.67%* |
Morningstar Intermediate-Term Bond Category | 1.71% | 5.62% | 5.97% | 5.78% | 4.76% |
Barclays Aggregate Bond Index | 0.90% | 3.68% | 5.51% | 5.72% | 5.90% |
*Class A commenced operations on January 3, 2007.
The Morningstar Intermediate-Term Bond Category is generally representative of intermediate-term bond mutual funds that primarily invest in corporate and other investment-grade U.S. fixed-income securities and typically have durations of 3.5 to 6.0 years.
The Barclays Aggregate Bond Index is an unmanaged index which represents the U.S. investment-grade fixed-rate bond market (including government and corporate securities, mortgage pass-through securities and asset-backed securities). Investors cannot invest directly in an index or benchmark.
As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including underlying funds, are 1.15% for Class N, 1.90% for Class C and 1.40% for Class A. The performance data quoted here represents past performance, which is not indicative of future results. Current performance may be lower or higher than the performance data quoted. The investment return and NAV will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Total returns are calculated assuming reinvestment of all dividends and capital gains distributions, if any. The returns do not reflect the deductions of taxes a shareholder would pay on the redemption of fund shares or fund distributions. For performance information current to the most recent month-end, please call 1-800-442-4358 or visit our website www.dunham.com.
SCHEDULE OF INVESTMENTS (Unaudited) | ||||||||
Dunham Corporate/Government Bond Fund | ||||||||
April 30, 2013 | ||||||||
|
|
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|
|
|
|
|
| Principal |
| Interest |
| Maturity |
|
|
Security |
| Amount |
| Rate |
| Date |
| Value |
CORPORATE NOTES & BONDS - 59.7 % |
|
|
|
|
|
|
|
|
ADVERTISING - 0.2 % |
|
|
|
|
|
|
|
|
inVentiv Health, Inc. - 144A |
| $ 120,000 |
| 9.0000 | % | 1/15/2018 |
| $ 126,750 |
WPP Finance 2010 |
| 150,000 |
| 3.6250 |
| 9/7/2022 |
| 153,160 |
|
|
|
|
|
|
|
| 279,910 |
AEROSPACE/DEFENSE - 0.2 % |
|
|
|
|
|
|
|
|
AAR Corp -144A |
| 235,000 |
| 7.2500 |
| 1/15/2022 |
| 259,088 |
|
|
|
|
|
|
|
|
|
AGRICULTURE - 0.3 % |
|
|
|
|
|
|
|
|
American Rock Salt Co. LLC/American Rock Capital Corp. - 144A | 375,000 |
| 8.2500 |
| 5/1/2018 |
| 364,688 | |
|
|
|
|
|
|
|
|
|
AIRLINES - 1.9 % |
|
|
|
|
|
|
|
|
Air Canada 2013-1 Class B Pass Through Trust 144A |
| 114,500 |
| 5.3750 |
| 5/15/2021 |
| 114,500 |
Continental Airlines 1997-4 Class A Pass Through Trust | 521,632 |
| 6.9000 |
| 1/2/2018 |
| 563,363 | |
Continental Airlines 2009-2 Class A Pass Through Trust |
| 262,974 |
| 7.2500 |
| 11/10/2019 |
| 308,337 |
Delta Air Lines 2009-1 Class A Pass Through Trust |
| 352,796 |
| 7.7500 |
| 12/17/2019 |
| 412,771 |
Delta Air Lines 2011-1 Class A Pass Through Trust |
| 347,223 |
| 5.3000 |
| 4/15/2019 |
| 385,418 |
Delta Air Lines 2012-1 Class A Pass Through Trust |
| 470,000 |
| 4.7500 |
| 5/7/2020 |
| 512,300 |
|
|
|
|
|
|
|
| 2,296,689 |
APPAREL - 0.3 % |
|
|
|
|
|
|
|
|
Jones Group, Inc./ Apparel Group Hold / Apparel Group USA / Footwear Acc Retail | 295,000 |
| 6.8750 |
| 3/15/2019 |
| �� 320,813 | |
|
|
|
|
|
|
|
|
|
AUTO MANUFACTURERS - 0.2 % |
|
|
|
|
|
|
|
|
Automotores Gildemeister SA - 144A |
| 235,000 |
| 6.7500 |
| 1/15/2023 |
| 241,756 |
|
|
|
|
|
|
|
|
|
AUTO PARTS & EQUIPMENT - 0.3 % |
|
|
|
|
|
|
|
|
American Axle & Manufacturing Inc |
| 255,000 |
| 6.2500 |
| 3/15/2021 |
| 269,981 |
TRW Automotive Inc 144A |
| 85,000 |
| 4.5000 |
| 3/1/2021 |
| 88,188 |
|
|
|
|
|
|
|
| 358,169 |
AUTOMOBILE ABS - 3.4 % |
|
|
|
|
|
|
|
|
AmeriCredit Automobile Receivables Trust 2012-4 C |
| 640,000 |
| 1.9300 |
| 8/8/2018 |
| 650,500 |
AmeriCredit Automobile Receivables Trust 2012-3 D |
| 610,000 |
| 3.0300 |
| 7/9/2018 |
| 635,646 |
Avis Budget Rental Car Funding AESOP LLC 2013-3 D 144A | 625,000 |
| 1.9200 |
| 9/20/2019 |
| 636,297 | |
Capital Auto Receivables Asset Trust 2013-1 C |
| 590,000 |
| 1.7400 |
| 10/22/2018 |
| 593,464 |
Hertz Vehicle Financing LLC 2013-1A A1 - 144A |
| 590,000 |
| 1.1200 |
| 8/25/2017 |
| 593,007 |
Santander Drive Auto Receivables Trust 2012-3 C |
| 380,000 |
| 3.0100 |
| 4/16/2019 |
| 665,007 |
Santander Drive Auto Receivables Trust 2013-1 D |
| 640,000 |
| 2.2700 |
| 1/15/2019 |
| 382,005 |
|
|
|
|
|
|
|
| 4,155,926 |
BANKS - 11.4 % |
|
|
|
|
|
|
|
|
Banco de Credito e Inversiones-144A |
| 325,000 |
| 4.0000 |
| 2/11/2023 |
| 327,760 |
Banco Santander Chile-144A |
| 600,000 |
| 3.8750 |
| 9/20/2022 |
| 615,720 |
Banco Votorantim SA-144A |
| 275,000 |
| 7.3750 |
| 1/21/2020 |
| 318,313 |
Bank of America Corp |
| 765,000 |
| 5.6250 |
| 7/1/2020 |
| 907,581 |
Bank of America Corp |
| 360,000 |
| 5.7500 |
| 8/15/2016 |
| 399,879 |
Bank of India/London-144A |
| 305,000 |
| 3.6250 |
| 9/21/2018 |
| 307,574 |
Barclays Bank PLC-144A |
| 270,000 |
| 6.0500 |
| 12/4/2017 |
| 305,069 |
Capital One Financial Corp |
| 545,000 |
| 6.1500 |
| 9/1/2016 |
| 623,949 |
Citigroup Inc |
| 570,000 |
| 4.0500 |
| 7/30/2022 |
| 592,349 |
Goldman Sachs Group, Inc. |
| 190,000 |
| 6.0000 |
| 6/15/2020 |
| 228,654 |
Goldman Sachs Group, Inc. |
| 375,000 |
| 5.7500 |
| 1/24/2022 |
| 448,539 |
HSBC USA Inc |
| 300,000 |
| 1.6250 |
| 1/16/2018 |
| 302,334 |
Intesa Sanpaolo SpA |
| 230,000 |
| 3.1250 |
| 1/15/2016 |
| 230,064 |
JPMorgan Chase & Co |
| 40,000 |
| 6.1250 |
| 6/27/2017 |
| 46,987 |
JPMorgan Chase & Co |
| 455,000 |
| 4.4000 |
| 7/22/2020 |
| 514,735 |
JPMorgan Chase & Co |
| 510,000 |
| 3.2500 |
| 9/23/2022 |
| 523,028 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) | ||||||||
Dunham Corporate/Government Bond Fund (Continued) | ||||||||
April 30, 2013 | ||||||||
|
| Principal |
| Interest |
| Maturity |
|
|
Security |
| Amount |
| Rate |
| Date |
| Value |
BANKS - 11.4 % (continued) |
|
|
|
|
|
|
|
|
JPMorgan Chase & Co |
| $ 470,000 |
| 3.3750 | % | 5/1/2023 |
| $ 468,271 |
JPMorgan Chase & Co |
| 125,000 |
| 7.9000 | + | Perpetual |
| 145,735 |
JPMorgan Chase & Co |
| 300,000 |
| 5.1500 | + | Perpetual |
| 304,601 |
KeyCorp |
| 380,000 |
| 5.1000 |
| 3/24/2021 |
| 448,484 |
Korea Finance Corp |
| 230,000 |
| 4.6250 |
| 11/16/2021 |
| 258,707 |
Macquarie Bank Ltd-144A |
| 17,000 |
| 6.6250 |
| 4/7/2021 |
| 19,438 |
Morgan Stanley |
| 180,000 |
| 5.5500 |
| 4/27/2017 |
| 204,210 |
Morgan Stanley |
| 410,000 |
| 5.5000 |
| 7/28/2021 |
| 480,533 |
Morgan Stanley |
| 225,000 |
| 6.3750 |
| 7/24/2042 |
| 286,367 |
Regions Financial Corp |
| 545,000 |
| 5.7500 |
| 6/15/2015 |
| 592,688 |
Regions Financial Corp |
| 320,000 |
| 2.0000 |
| 5/15/2018 |
| 318,800 |
Resona Bank Ltd.-144A |
| 165,000 |
| 5.8500 | + | Perpetual |
| 177,870 |
Sberbank of Russia Via SB Capital SA-144A |
| 300,000 |
| 4.9500 |
| 2/7/2017 |
| 324,150 |
State Bank of India/London-144A |
| 310,000 |
| 3.2500 |
| 4/18/2018 |
| 309,702 |
Turkiye Garanti Bankasi AS-144A |
| 330,000 |
| 5.2500 |
| 9/13/2022 |
| 360,525 |
UBS AG/Stamford CT |
| 650,000 |
| 7.6250 |
| 8/17/2022 |
| 754,994 |
VTB Bank OJSC Via VTB Capital SA-144A |
| 530,000 |
| 6.0000 |
| 4/12/2017 |
| 577,038 |
Wells Fargo & Co |
| 980,000 |
| 3.4500 |
| 2/13/2023 |
| 1,002,054 |
Yapi ve Kredi Bankasi AS-144A |
| 290,000 |
| 4.0000 |
| 1/22/2020 |
| 291,261 |
|
|
|
|
|
|
|
| 14,017,963 |
CHEMICALS - 2.1 % |
|
|
|
|
|
|
|
|
Alpek SA de CV-144A |
| 425,000 |
| 4.5000 |
| 11/20/2022 |
| 444,656 |
EuroChem Mineral & Chemical Co OJSC via EuroChem GI Ltd.-144A | 300,000 |
| 5.1250 |
| 12/12/2017 |
| 307,875 | |
Hexion US Finance Corp. |
| 75,000 |
| 6.6250 |
| 4/15/2020 |
| 78,563 |
Hexion US Finance Corp. / Hexion Nova Scotia Finance ULC-144A | 305,000 |
| 8.8750 |
| 2/1/2018 |
| 317,581 | |
Hexion US Finance Corp.-144A |
| 225,000 |
| 6.6250 |
| 4/15/2020 |
| 235,688 |
Ineos Finance PLC-144A |
| 235,000 |
| 8.3750 |
| 2/15/2019 |
| 265,844 |
Methanex Corp. |
| 245,000 |
| 3.2500 |
| 12/15/2019 |
| 250,819 |
NewMarket Corp.-144A |
| 305,000 |
| 4.1000 |
| 12/15/2022 |
| 318,557 |
Nufarm Australia Ltd.-144A |
| 235,000 |
| 6.3750 |
| 10/15/2019 |
| 239,994 |
Tronox Finance LLC-144A |
| 175,000 |
| 6.3750 |
| 8/15/2020 |
| 175,219 |
|
|
|
|
|
|
|
| 2,634,796 |
COMMERCIAL MBS - 7.8 % |
|
|
|
|
|
|
|
|
A10 Securitization LLCA10 2013-1 B 144A |
| 300,000 |
| 4.1200 |
| 11/15/2025 |
| 299,963 |
Bear Stearns Commercial Mortgage Securities Trust 2005-PWR9 A4B | 580,000 |
| 4.9430 |
| 9/11/2042 |
| 632,455 | |
Bear Stearns Commercial Mortgage Securities Trust 2007-T28 A3 | 127,187 |
| 5.7930 |
| 9/11/2042 |
| 131,341 | |
Mortgage Trust CD 2006-CD2 A3 |
| 620,000 |
| 5.5472 | + | 1/15/2046 |
| 652,445 |
Mortgage Trust COMM 2007-C9 A4 |
| 675,000 |
| 5.9933 | + | 12/10/2049 |
| 796,131 |
Commercial Mortgage Trust 2007-GG9 A4 |
| 650,000 |
| 5.4440 |
| 3/10/2039 |
| 744,112 |
Extended Stay America Trust 2013-ESH7 A27-144A |
| 300,000 |
| 2.9575 |
| 12/5/2031 |
| 309,834 |
JP Morgan Chase Commercial Mortgage Securities Trust 2006-LDP7 A4 | 600,000 |
| 6.0588 | + | 4/15/2045 |
| 680,024 | |
LB-UBS Commercial Mortgage Trust 2007-C7 A3 |
| 81,842 |
| 5.8660 | + | 9/15/2045 |
| 94,957 |
ML-CFC Commercial Mortgage Trust 2006-4 A3 |
| 245,000 |
| 5.1720 | + | 12/12/2049 |
| 276,421 |
Morgan Stanley Capital I Trust 2005-IQ10 A4B |
| 510,000 |
| 5.2840 | + | 9/15/2042 |
| 563,451 |
Morgan Stanley Capital I Trust 2007-IQ14 AM |
| 224,000 |
| 5.8758 | + | 4/15/2049 |
| 240,058 |
Morgan Stanley Capital I Trust 2007-T27 A4 |
| 440,000 |
| 5.8157 | + | 6/11/2042 |
| 512,679 |
Morgan Stanley Capital I Trust 2008-T29 A4 |
| 2,415,000 |
| 6.4520 | + | 1/11/2043 |
| 2,932,247 |
Wachovia Bank Commercial Mortgage Trust Series 2007-C33 A4 | 600,000 |
| 6.1222 | + | 2/15/2051 |
| 701,504 | |
|
|
|
|
|
|
|
| 9,567,622 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) | ||||||||
Dunham Corporate/Government Bond Fund (Continued) | ||||||||
April 30, 2013 | ||||||||
|
|
|
|
|
|
|
|
|
|
| Principal |
| Interest |
| Maturity |
|
|
Security |
| Amount |
| Rate |
| Date |
| Value |
COMMERCIAL SERVICES - 0.9 % |
|
|
|
|
|
|
|
|
Avis Budget Car Rental LLC / Avis Budget Finance, Inc.-144A | $ 295,000 |
| 5.5000 | % | 4/1/2023 |
| $ 305,694 | |
Ceridian Corp-144A |
| 5,000 |
| 11.0000 |
| 3/15/2021 |
| 5,631 |
Iron Mountain, Inc. |
| 320,000 |
| 5.7500 |
| 8/15/2024 |
| 331,200 |
Rent-A-Center, Inc.-144A |
| 95,000 |
| 4.7500 |
| 5/1/2021 |
| 96,188 |
United Rentals North America, Inc. |
| 285,000 |
| 7.3750 |
| 5/15/2020 |
| 324,188 |
|
|
|
|
|
|
|
| 1,062,901 |
COMPUTERS - 0.2 % |
|
|
|
|
|
|
|
|
NCR Corp-144A |
| 220,000 |
| 4.6250 |
| 2/15/2021 |
| 221,100 |
|
|
|
|
|
|
|
|
|
DISTRIBUTION / WHOLESALE - 0.1 % |
|
|
|
|
|
|
|
|
HD Supply, Inc. |
| 120,000 |
| 10.5000 |
| 1/16/2013 |
| 126,300 |
|
|
|
|
|
|
|
|
|
DIVERSIFIED FINANCIAL SERVICES - 3.1 % |
|
|
|
|
|
|
|
|
Aircastle Ltd. |
| 220,000 |
| 7.6250 |
| 4/15/2020 |
| 260,700 |
Aircastle Ltd. |
| 250,000 |
| 6.2500 |
| 12/1/2019 |
| 280,000 |
Carlyle Holdings Finance LLC-144A |
| 295,000 |
| 3.8750 |
| 2/1/2023 |
| 308,270 |
Ford Motor Credit Co. LLC |
| 270,000 |
| 5.7500 |
| 2/1/2021 |
| 312,648 |
General Electric Capital Corp. |
| 500,000 |
| 4.6500 |
| 10/17/2021 |
| 571,870 |
General Electric Capital Corp. |
| 300,000 |
| 7.1250 | + | Perpetual |
| 351,796 |
General Motors Financial Co., Inc.-144A |
| 240,000 |
| 4.7500 |
| 8/15/2017 |
| 252,000 |
International Lease Finance Corp. |
| 345,000 |
| 6.2500 |
| 5/15/2019 |
| 385,538 |
International Lease Finance Corp. |
| 95,000 |
| 3.8750 |
| 4/15/2018 |
| 96,544 |
Jefferies Group LLC |
| 70,000 |
| 5.1250 |
| 1/20/2023 |
| 75,990 |
Legg Mason, Inc. |
| 255,000 |
| 5.5000 |
| 5/21/2019 |
| 278,300 |
Macquarie Group Ltd.-144A |
| 250,000 |
| 6.2500 |
| 1/14/2021 |
| 283,655 |
SLM Corp. |
| 420,000 |
| 5.5000 |
| 1/25/2023 |
| 419,882 |
|
|
|
|
|
|
|
| 3,877,193 |
ELECTRIC - 0.5 % |
|
|
|
|
|
|
|
|
Cent Elet Brasileiras SA |
| 240,000 |
| 5.7500 |
| 10/27/2021 |
| 261,394 |
Dominion Resource,s Inc. |
| 85,000 |
| 8.8750 |
| 1/15/2019 |
| 116,003 |
Electricite de France SA-144A + |
| 315,000 |
| 5.2500 | + | Perpetual |
| 317,448 |
|
|
|
|
|
|
|
| 694,845 |
ELECTRONICS - 0.2 % |
|
|
|
|
|
|
|
|
Rexel SA-144A |
| 245,000 |
| 5.2500 |
| 4/3/2013 |
| 259,700 |
|
|
|
|
|
|
|
|
|
ENTERTAINMENT - 0.6 % |
|
|
|
|
|
|
|
|
Isle of Capri Casinos, Inc.-144A |
| 250,000 |
| 5.8750 |
| 3/15/2021 |
| 252,188 |
Six Flags Entertainment Corp.-144A |
| 245,000 |
| 5.2500 |
| 1/15/2021 |
| 254,188 |
United Artists Theatre Circuit Inc 1995-A Pass Through Trust * | 2,934 |
| 9.3000 |
| 7/1/2015 |
| 2,989 | |
WMG Acquisition Corp.-144A |
| 180,000 |
| 6.0000 |
| 1/15/2021 |
| 192,150 |
|
|
|
|
|
|
|
| 701,515 |
FOOD - 0.8 % |
|
|
|
|
|
|
|
|
Chiquita Brands International, Inc. / Chiquita Brands LLC-144A | 160,000 |
| 7.8750 |
| 2/5/2013 |
| 172,000 | |
Flowers Foods, Inc. |
| 300,000 |
| 4.3750 |
| 4/3/2012 |
| 309,945 |
Hawk Acquisition Sub, Inc.-144A |
| 490,000 |
| 4.2500 |
| 4/1/2013 |
| 497,350 |
|
|
|
|
|
|
|
| 979,295 |
FOREST PRODUCTS & PAPER - 0.2 % |
|
|
|
|
|
|
|
|
Sappi Papier Holding GmbH-144A |
| 235,000 |
| 7.7500 |
| 7/15/2017 |
| 260,850 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) | ||||||||
Dunham Corporate/Government Bond Fund (Continued) | ||||||||
April 30, 2013 | ||||||||
|
|
|
|
|
|
|
|
|
|
| Principal |
| Interest |
| Maturity |
|
|
Security |
| Amount |
| Rate |
| Date |
| Value |
HEALTHCARE - PRODUCTS - 0.2 % |
|
|
|
|
|
|
|
|
Boston Scientific Corp. |
| $ 205,000 |
| 6.0000 | % | 1/15/2020 |
| $ 242,501 |
|
|
|
|
|
|
|
|
|
HEALTHCARE - SERVICES - 0.4 % |
|
|
|
|
|
|
|
|
HCA, Inc. |
| 235,000 |
| 6.5000 |
| 2/15/2020 |
| 272,012 |
Tenet Healthcare Corp. |
| 80,000 |
| 6.2500 |
| 11/1/2018 |
| 90,400 |
Tenet Healthcare Corp.-144A |
| 140,000 |
| 4.5000 |
| 4/1/2021 |
| 143,150 |
|
|
|
|
|
|
|
| 505,562 |
HOLDING COMPANIES - DIVERSIFIED - 0.7 % |
|
|
|
|
|
|
|
|
Hutchison Whampoa International 12 Ltd.-144A + |
| 370,000 |
| 6.0000 | + | Perpetual |
| 398,675 |
MMI International Ltd.-144A |
| 240,000 |
| 8.0000 |
| 3/1/2017 |
| 247,200 |
Tenedora Nemak SA de CV-144A |
| 255,000 |
| 5.5000 |
| 2/28/2023 |
| 266,156 |
|
|
|
|
|
|
|
| 912,031 |
HOME BUILDERS - 0.5 % |
|
|
|
|
|
|
|
|
Brookfield Residential Properties, Inc.-144A |
| 245,000 |
| 6.5000 |
| 12/15/2020 |
| 264,906 |
Taylor Morrison Communities, Inc. / Monarch Communities, Inc.-144A | 310,000 |
| 5.2500 |
| 4/15/2021 |
| 317,750 | |
|
|
|
|
|
|
|
| 582,656 |
HOME EQUITY ABS - 1.6 % |
|
|
|
|
|
|
|
|
Bayview Financial Mortgage Pass-Through Trust 2006-A 1A4 (a) | 560,000 |
| 6.0870 |
| 2/28/2041 |
| 612,002 | |
Credit Suisse First Boston Mortgage Securities Corp. 2004-CF2 1M1 144A(a) | 342,061 |
| 5.2500 |
| 1/25/2043 |
| 374,426 | |
GSAA Trust 2005-1 AF4 (a) |
| 580,000 |
| 5.5352 |
| 11/25/2034 |
| 616,975 |
Security National Mortgage Loan Trust 2004-1A AF3 144A+ | 369,723 |
| 6.4200 |
| 6/25/2032 |
| 346,598 | |
|
|
|
|
|
|
|
| 1,950,001 |
HOUSEHOLD PRODUCTS / WARES - 0.5 % |
|
|
|
|
|
|
|
|
Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC | 580,000 |
| 5.7500 |
| 10/15/2020 |
| 609,000 | |
|
|
|
|
|
|
|
|
|
INSURANCE - 1.6 % |
|
|
|
|
|
|
|
|
American International Group, Inc. |
| 525,000 |
| 4.8750 |
| 6/1/2022 |
| 604,661 |
Chubb Corp. |
| 85,000 |
| 6.3750 | + | 3/29/2067 |
| 94,987 |
CNA Financial Corp. |
| 355,000 |
| 5.8750 |
| 8/15/2020 |
| 424,049 |
Lincoln National Corp. |
| 295,000 |
| 4.2000 |
| 3/15/2022 |
| 325,942 |
Prudential Financial, Inc. |
| 120,000 |
| 5.8750 | + | 9/15/2042 |
| 129,974 |
Prudential Financial, Inc. |
| 425,000 |
| 5.2000 | + | 3/15/2044 |
| 434,031 |
|
|
|
|
|
|
|
| 2,013,644 |
INTERNET - 0.1 % |
|
|
|
|
|
|
|
|
Equinix, Inc. |
| 130,000 |
| 4.8750 |
| 4/1/2020 |
| 136,500 |
|
|
|
|
|
|
|
|
|
IRON / STEEL - 1.0 % |
|
|
|
|
|
|
|
|
Carpenter Technology Corp. |
| 300,000 |
| 4.4500 |
| 3/1/2023 |
| 312,559 |
Gerdau Trade, Inc.-144A |
| 370,000 |
| 4.7500 |
| 4/15/2023 |
| 366,374 |
United States Steel Corp |
| 305,000 |
| 6.8750 |
| 4/1/2021 |
| 315,675 |
Vale Overseas Ltd. |
| 190,000 |
| 4.3750 |
| 1/11/2022 |
| 200,902 |
|
|
|
|
|
|
|
| 1,195,510 |
LODGING - 0.9 % |
|
|
|
|
|
|
|
|
Boyd Gaming Corp.-144A |
| 230,000 |
| 9.0000 |
| 7/1/2020 |
| 243,225 |
MGM Resorts International-144A |
| 235,000 |
| 6.7500 |
| 10/1/2020 |
| 258,500 |
Station Casinos LLC-144A |
| 275,000 |
| 7.5000 |
| 3/1/2021 |
| 289,094 |
Wyndham Worldwide Corp. |
| 320,000 |
| 3.9000 |
| 3/1/2023 |
| 328,348 |
|
|
|
|
|
|
|
| 1,119,167 |
MEDIA - 1.1 % |
|
|
|
|
|
|
|
|
Clear Channel Communications, Inc.-144A |
| 100,000 |
| 9.0000 |
| 12/15/2019 |
| 100,500 |
Clear Channel Worldwide Holdings, Inc. |
| 160,000 |
| 7.6250 |
| 3/15/2020 |
| 270,625 |
Time Warner Cable, Inc. |
| 190,000 |
| 5.0000 |
| 2/1/2020 |
| 572,347 |
Univision Communications, Inc.-144A |
| 150,000 |
| 8.5000 |
| 5/15/2021 |
| 392,000 |
|
|
|
|
|
|
|
| 1,335,472 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) | ||||||||
Dunham Corporate/Government Bond Fund (Continued) | ||||||||
April 30, 2013 | ||||||||
|
|
|
|
|
|
|
|
|
|
| Principal |
| Interest |
| Maturity |
|
|
Security |
| Amount |
| Rate |
| Date |
| Value |
METAL FABRICATE/HARDWARE - 0.2 % |
|
|
|
|
|
|
|
|
TMK OAO Via TMK Capital SA-144A |
| $ 245,000 |
| 6.7500 | % | 4/3/2020 |
| $ 240,713 |
|
|
|
|
|
|
|
|
|
MINING - 0.3 % |
|
|
|
|
|
|
|
|
Eldorado Gold Corp.-144A |
| 105,000 |
| 6.1250 |
| 12/15/2020 |
| 107,625 |
Vedanta Resources PLC-144A |
| 255,000 |
| 9.5000 |
| 7/18/2018 |
| 293,250 |
|
|
|
|
|
|
|
| 400,875 |
MISCELLANEOUS MANUFACTURING - 0.2 % |
|
|
|
|
|
|
|
|
Bombardier, Inc. - 144A |
| 235,000 |
| 6.1250 |
| 1/15/2023 |
| 255,269 |
|
|
|
|
|
|
|
|
|
OFFICE/BUSINESS EQUIPMENT - 0.4 % |
|
|
|
|
|
|
|
|
Xerox Corp. |
| 425,000 |
| 4.5000 |
| 5/15/2021 |
| 462,042 |
|
|
|
|
|
|
|
|
|
OIL & GAS - 3.3 % |
|
|
|
|
|
|
|
|
BreitBurn Energy Partners LP / BreitBurn Finance Corp | 190,000 |
| 7.8750 |
| 4/15/2022 |
| 209,950 | |
Calumet Specialty Products Partners LP/Calumet Finance Corp-144A | 235,000 |
| 9.6250 |
| 8/1/2020 |
| 268,488 | |
Chesapeake Energy Corp. |
| 220,000 |
| 6.6250 |
| 8/15/2020 |
| 249,975 |
Gazprom OAO Via Gaz Capital SA-144A |
| 480,000 |
| 3.8500 |
| 2/6/2020 |
| 485,943 |
Lukoil International Finance BV-144A |
| 310,000 |
| 4.5630 |
| 4/24/2023 |
| 314,650 |
Novatek OAO via Novatek Finance Ltd.-144A |
| 305,000 |
| 4.4220 |
| 12/13/2022 |
| 306,705 |
Petrobras International Finance Co. - Pifco |
| 300,000 |
| 5.3750 |
| 1/27/2021 |
| 331,633 |
Petroleos Mexicanos-144A |
| 395,000 |
| 3.5000 |
| 1/30/2023 |
| 402,900 |
Phillips 66 |
| 630,000 |
| 4.3000 |
| 4/1/2022 |
| 704,584 |
Phillips 66 |
| 195,000 |
| 5.8750 |
| 5/1/2042 |
| 241,231 |
Plains Exploration & Production Co. |
| 235,000 |
| 6.8750 |
| 2/15/2023 |
| 267,313 |
Rowan Cos., Inc. |
| 255,000 |
| 4.8750 |
| 6/1/2022 |
| 281,637 |
|
|
|
|
|
|
|
| 4,065,009 |
OIL & GAS SERVICES - 0.5 % |
|
|
|
|
|
|
|
|
Cie Generale de Geophysique - Veritas |
| 235,000 |
| 6.5000 |
| 6/1/2021 |
| 248,806 |
Expro Finance Luxembourg SCA-144A |
| 235,000 |
| 8.5000 |
| 12/15/2016 |
| 250,275 |
Weatherford International Ltd. |
| 175,000 |
| 4.5000 |
| 4/15/2022 |
| 186,407 |
|
|
|
|
|
|
|
| 685,488 |
OTHER ABS - 1.2 % |
|
|
|
|
|
|
|
|
Countrywide Asset-Backed Certificates 2005-1 AF5A (a) | 300,000 |
| 5.4970 |
| 7/25/2035 |
| 305,869 | |
Great America Leasing Receivables 2013-1 A4 144A |
| 625,000 |
| 1.1600 |
| 5/15/2018 |
| 628,671 |
Marriott Vacation Club Owner Trust 2012-1A A 144A |
| 541,720 |
| 2.5100 |
| 5/20/2030 |
| 554,214 |
|
|
|
|
|
|
|
| 1,488,754 |
PACKAGING & CONTAINERS - 0.1 % |
|
|
|
|
|
|
|
|
Sealed Air Corp.-144A |
| 115,000 |
| 5.2500 |
| 4/1/2023 |
| 117,012 |
|
|
|
|
|
|
|
|
|
PHARMACEUTICALS - 0.6 % |
|
|
|
|
|
|
|
|
Cardinal Health, Inc. |
| 160,000 |
| 3.2000 |
| 3/15/2023 |
| 162,520 |
Mylan, Inc.-144A |
| 365,000 |
| 3.1250 |
| 1/15/2023 |
| 363,900 |
Valeant Pharmaceuticals International-144A |
| 220,000 |
| 6.3750 |
| 10/15/2020 |
| 244,750 |
|
|
|
|
|
|
|
| 771,170 |
PIPELINES - 1.4 % |
|
|
|
|
|
|
|
|
El Paso Pipeline Partners Operating Co. LLC |
| 345,000 |
| 7.5000 |
| 11/15/2040 |
| 468,769 |
Energy Transfer Partners LP |
| 725,000 |
| 5.2000 |
| 2/1/2022 |
| 830,355 |
Energy Transfer Partners LP |
| 205,000 |
| 6.5000 |
| 2/1/2042 |
| 247,789 |
Williams Cos., Inc. |
| 230,000 |
| 3.7000 |
| 1/15/2023 |
| 232,797 |
|
|
|
|
|
|
|
| 1,779,710 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) | ||||||||
Dunham Corporate/Government Bond Fund (Continued) | ||||||||
April 30, 2013 | ||||||||
|
|
|
|
|
|
|
|
|
|
| Principal |
| Interest |
| Maturity |
|
|
Security |
| Amount |
| Rate |
| Date |
| Value |
REITS - 1.3 % |
|
|
|
|
|
|
|
|
AvalonBay Communities, Inc. |
| $ 395,000 |
| 2.9500 | % | 9/15/2022 |
| $ 399,939 |
DDR Corp |
| 210,000 |
| 7.8750 |
| 9/1/2020 |
| 271,175 |
Digital Realty Trust LP |
| 335,000 |
| 5.2500 |
| 3/15/2021 |
| 379,698 |
Highwoods Realty LP |
| 305,000 |
| 3.6250 |
| 1/15/2023 |
| 306,570 |
Ventas Realty LP / Ventas Capital Corp. |
| 95,000 |
| 4.2500 |
| 3/1/2022 |
| 103,922 |
Ventas Realty LP / Ventas Capital Corp. |
| 205,000 |
| 3.2500 |
| 8/15/2022 |
| 209,135 |
|
|
|
|
|
|
|
| 1,670,439 |
RETAIL - 0.7 % |
|
|
|
|
|
|
|
|
Claire's Stores, Inc.-144A |
| 220,000 |
| 9.0000 |
| 3/15/2019 |
| 251,900 |
CVS Pass-Through Trust-144A |
| 107,456 |
| 7.5070 |
| 1/10/2032 |
| 142,784 |
Landry's, Inc.-144A |
| 125,000 |
| 9.3750 |
| 5/1/2020 |
| 136,719 |
QVC, Inc.-144A |
| 310,000 |
| 4.3750 |
| 3/15/2023 |
| 318,116 |
|
|
|
|
|
|
|
| 849,519 |
SAVINGS & LOANS - 0.3 % |
|
|
|
|
|
|
|
|
Santander Holdings USA, Inc. |
| 320,000 |
| 3.0000 |
| 9/24/2015 |
| 329,344 |
|
|
|
|
|
|
|
|
|
SEMICONDUCTORS - 0.3 % |
|
|
|
|
|
|
|
|
Sensata Technologies BV-144A |
| 370,000 |
| 4.8750 |
| 10/15/2023 |
| 380,175 |
|
|
|
|
|
|
|
|
|
SOFTWARE - 0.9 % |
|
|
|
|
|
|
|
|
Dun & Bradstreet Corp. |
| 305,000 |
| 4.3750 |
| 12/1/2022 |
| 315,115 |
First Data Corp. |
| 245,000 |
| 11.2500 |
| 3/31/2016 |
| 250,512 |
First Data Corp.-144A |
| 300,000 |
| 6.7500 |
| 11/1/2020 |
| 323,250 |
First Data Corp.-144A |
| 240,000 |
| 10.6250 |
| 6/15/2021 |
| 248,100 |
|
|
|
|
|
|
|
| 1,136,977 |
TELECOMMUNICATIONS - 2.9 % |
|
|
|
|
|
|
|
|
AT&T, Inc. |
| 315,000 |
| 3.8750 |
| 8/15/2021 |
| 349,425 |
Bharti Airtel International Netherlands BV-144A |
| 245,000 |
| 5.1250 |
| 3/11/2023 |
| 252,987 |
CenturyLink, Inc. |
| 520,000 |
| 6.4500 |
| 6/15/2021 |
| 574,862 |
Cincinnati Bell, Inc. |
| 245,000 |
| 8.3750 |
| 10/15/2020 |
| 263,987 |
Digicel Group Ltd.-144A |
| 200,000 |
| 8.2500 |
| 9/30/2020 |
| 215,000 |
EarthLink, Inc. |
| 175,000 |
| 8.8750 |
| 5/15/2019 |
| 181,125 |
Frontier Communications Corp. |
| 235,000 |
| 7.1250 |
| 1/15/2023 |
| 244,106 |
Intelsat Jackson Holdings SA-144A |
| 195,000 |
| 6.6250 |
| 12/15/2022 |
| 210,356 |
Koninklijke KPN NV-144A + |
| 245,000 |
| 7.0000 | + | 3/28/2073 |
| 246,042 |
Telefonica Emisiones SAU |
| 265,000 |
| 4.5700 |
| 4/27/2023 |
| 272,492 |
UPCB Finance VI Ltd.-144A |
| 175,000 |
| 6.8750 |
| 1/15/2022 |
| 191,625 |
Wind Acquisition Finance SA-144A |
| 250,000 |
| 11.7500 |
| 7/15/2017 |
| 267,187 |
Windstream Corp. |
| 235,000 |
| 7.7500 |
| 10/15/2020 |
| 258,206 |
|
|
|
|
|
|
|
| 3,527,400 |
TOBACCO - 0.7 % |
|
|
|
|
|
|
|
|
Imperial Tobacco Finance PLC |
| 500,000 |
| 3.5000 |
| 2/11/2023 |
| 513,092 |
Reynolds American, Inc. |
| 300,000 |
| 3.2500 |
| 11/1/2022 |
| 303,279 |
|
|
|
|
|
|
|
| 816,371 |
TRANSPORTATION - 0.6 % |
|
|
|
|
|
|
|
|
CHC Helicopter SA |
| 235,000 |
| 9.2500 |
| 10/15/2020 |
| 251,744 |
Gulfmark Offshore, Inc. |
| 230,000 |
| 6.3750 |
| 3/15/2022 |
| 241,500 |
Norfolk Southern Corp.-144A |
| 300,000 |
| 2.9030 |
| 2/15/2023 |
| 305,594 |
|
|
|
|
|
|
|
| 798,838 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) | ||||||||
Dunham Corporate/Government Bond Fund (Continued) | ||||||||
April 30, 2013 | ||||||||
|
|
|
|
|
|
|
|
|
|
| Principal |
| Interest |
| Maturity |
|
|
Security |
| Amount |
| Rate |
| Date |
| Value |
WL COLLATERAL CMO - 0.5 % |
|
|
|
|
|
|
|
|
Merrill Lynch Mortgage Investors Trust Series 2007-3 3A1 | $ 253,546 |
| 6.1240 | % + | 9/25/2037 |
| $ 277,467 | |
WaMu Mortgage Pass Through Certificates 2003-S8 A2 | 290,692 |
| 5.0000 |
| 9/25/2018 |
| 291,273 | |
|
|
|
|
|
|
|
| 568,740 |
|
|
|
|
|
|
|
|
|
TOTAL CORPORATE NOTES & BONDS (Cost - $70,948,092) |
|
|
|
|
|
| 73,627,008 | |
|
|
|
|
|
|
|
|
|
FOREIGN GOVERNMENT BOND - 0.5 % |
|
|
|
|
|
|
|
|
Mexico Government International Bond |
| 295,000 |
| 4.7500 |
| 3/8/2044 |
| 327,155 |
Morocco Government International Bond-144A |
| 300,000 |
| 4.2500 |
| 12/11/2022 |
| 310,500 |
TOTAL FOREIGN GOVERNMENT BOND (Cost - $593,418) |
|
|
|
|
|
| 637,655 | |
|
|
|
|
|
|
|
|
|
MUNICIPAL - 0.3 % |
|
|
|
|
|
|
|
|
Rockdale County Water & Sewerage Authority (Cost -$305,000) | 305,000 |
| 3.0600 |
| 7/1/2024 |
| 315,794 | |
|
|
|
|
|
|
|
|
|
U.S. GOVERNMENT & AGENCIES - 29.3 % |
|
|
|
|
|
|
|
|
U.S. GOVERNMENT AGENCY - 12.2 % |
|
|
|
|
|
|
|
|
Federal National Mortgage Association |
| 485,000 |
| 0.0000 | (b) | 10/9/2019 |
| 432,519 |
Fannie Mae Pool 310041 |
| 359,281 |
| 6.5000 |
| 5/1/2037 |
| 402,780 |
Fannie Mae Pool 703391 |
| 446,667 |
| 5.0000 |
| 5/1/2033 |
| 486,026 |
Fannie Mae Pool 735061 |
| 100,908 |
| 6.0000 |
| 11/1/2034 |
| 110,870 |
Fannie Mae Pool 866009 |
| 168,329 |
| 6.0000 |
| 3/1/2036 |
| 185,293 |
Fannie Mae Pool 880117 |
| 74,744 |
| 5.5000 |
| 4/1/2036 |
| 82,079 |
Fannie Mae Pool 889883 |
| 1,272,233 |
| 6.5000 |
| 3/1/2038 |
| 1,413,409 |
Fannie Mae Pool 909141 |
| 37,243 |
| 6.0000 |
| 1/1/2038 |
| 40,951 |
Fannie Mae Pool 909153 |
| 34,469 |
| 6.0000 |
| 2/1/2038 |
| 38,004 |
Fannie Mae Pool 909175 |
| 84,904 |
| 5.5000 |
| 4/1/2038 |
| 92,999 |
Fannie Mae Pool 909220 |
| 188,227 |
| 6.0000 |
| 8/1/2038 |
| 206,727 |
Fannie Mae Pool 909223 |
| 100,533 |
| 6.0000 |
| 8/1/2038 |
| 111,733 |
Fannie Mae Pool 929191 |
| 256,020 |
| 6.0000 |
| 3/1/2038 |
| 281,507 |
Fannie Mae Pool 931983 |
| 749,369 |
| 5.5000 |
| 9/1/2039 |
| 820,817 |
Fannie Mae Pool 931995 |
| 137,636 |
| 5.0000 |
| 9/1/2039 |
| 153,985 |
Fannie Mae Pool 938574 |
| 678,293 |
| 5.5000 |
| 9/1/2036 |
| 745,168 |
Fannie Mae Pool 962752 |
| 82,091 |
| 5.0000 |
| 4/1/2038 |
| 92,702 |
Fannie Mae Pool 975649 |
| 439,069 |
| 6.0000 |
| 7/1/2038 |
| 488,693 |
Fannie Mae Pool AA7001 |
| 507,337 |
| 5.0000 |
| 6/1/2039 |
| 567,599 |
Fannie Mae Pool AD0727 |
| 875,176 |
| 6.0000 |
| 8/1/2039 |
| 962,120 |
Fannie Mae Pool AE2496 |
| 503,261 |
| 4.5000 |
| 9/1/2040 |
| 565,102 |
Fannie Mae Pool AO8769 |
| 2,846,793 |
| 3.5000 |
| 8/1/2042 |
| 3,058,790 |
Freddie Mac Gold Pool A46224 |
| 250,334 |
| 5.0000 |
| 7/1/2035 |
| 271,030 |
Freddie Mac Gold Pool A62582 |
| 44,391 |
| 6.0000 |
| 6/1/2037 |
| 48,752 |
Freddie Mac Gold Pool G01499 |
| 47,260 |
| 7.0000 |
| 1/1/2033 |
| 54,120 |
Freddie Mac Gold Pool G01980 |
| 554,415 |
| 5.0000 |
| 12/1/2035 |
| 603,138 |
Freddie Mac Gold Pool G03660 |
| 350,201 |
| 6.0000 |
| 12/1/2037 |
| 384,008 |
Freddie Mac Gold Pool G05888 |
| 163,168 |
| 5.5000 |
| 10/1/2039 |
| 177,383 |
Freddie Mac Gold Pool G06380 |
| 1,429,970 |
| 6.5000 |
| 2/1/2035 |
| 1,623,457 |
Government National Mortgage Association 2012-147 AK | 507,050 |
| 2.5858 | + | 4/16/2054 |
| 556,321 | |
|
|
|
|
|
|
|
| 15,058,082 |
U.S. TREASURY OBLIGATIONS - 17.1 % |
|
|
|
|
|
|
|
|
United States Treasury Note |
| 2,110,000 |
| 0.2500 |
| 3/31/2015 |
| 2,111,566 |
United States Treasury Note |
| 18,400,000 |
| 2.0000 |
| 2/15/2023 |
| 18,943,370 |
|
|
|
|
|
|
|
| 21,054,936 |
|
|
|
|
|
|
|
|
|
TOTAL U.S. GOVERNMENT & AGENCIES (Cost - $35,310,048) |
|
|
|
|
|
| 36,113,018 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) | ||||||||
Dunham Corporate/Government Bond Fund (Continued) | ||||||||
April 30, 2013 | ||||||||
|
|
|
|
|
|
|
|
|
|
| Principal |
| Interest |
| Maturity |
|
|
Security |
| Amount |
| Rate |
| Date |
| Value |
BANK LOANS - 7.1 % |
|
|
|
|
|
|
|
|
AdvancePierre Foods |
| $ 245,000 |
| 8.2500 | % + | 10/10/2017 |
| $ 252,350 |
Affinia Group Inc. |
| 88,000 |
| 5.2500 | + | 4/2/2020 |
| 89,210 |
Alcatel Lucent USA Inc |
| 251,370 |
| 7.2500 | + | 12/4/2018 |
| 258,111 |
Alcatel Lucent USA Inc |
| 18,000 |
| 5.2500 | + | 6/4/2018 |
| 18,316 |
Alliance Laundry Systems LLC |
| 373,570 |
| 4.5000 | + | 12/31/2018 |
| 378,239 |
American Renal Holdings, Inc. |
| 280,000 |
| 7.2500 | + | 2/20/2020 |
| 283,382 |
Ameriforge Group |
| 60,000 |
| 4.0000 | + | 1/31/2019 |
| 60,938 |
Ameriforge Group |
| 40,000 |
| 7.7500 | + | 1/21/2021 |
| 41,075 |
Blue Coat Systems Inc |
| 298,496 |
| 5.7500 | + | 2/15/2018 |
| 301,856 |
Capital Automotive LP |
| 28,000 |
| 5.5000 | + | 3/28/2021 |
| 28,840 |
CBAC Borrower, LLC |
| 57,000 |
| - | + | 4/26/2020 |
| 56,430 |
CCC Information Services |
| 100,748 |
| 5.2500 | + | 12/5/2019 |
| 102,133 |
CDW LLC |
| 150,000 |
| - | + | 4/15/2020 |
| 150,657 |
Centaur Acquistion |
| 50,000 |
| 4.0000 | + | 12/31/2019 |
| 50,906 |
Ceridian Corp |
| 239,475 |
| 5.7500 | + | 5/9/2017 |
| 244,093 |
Chrysler Group LLC |
| 224,438 |
| 4.9800 | + | 4/28/2017 |
| 227,888 |
Clear Channel Communication |
| 160,000 |
| 3.6500 | + | 1/29/2016 |
| 147,145 |
Commerical Barge Line Co. |
| 336,000 |
| 5.0000 | + | 7/31/2020 |
| 339,570 |
Crossmark Holdings, Inc. |
| 329,175 |
| 4.5000 | + | 1/31/2019 |
| 329,833 |
Cyanco Intermediate Corp |
| 110,000 |
| - | + | 4/30/2020 |
| 108,900 |
Doncasters Group Ltd |
| 230,000 |
| 4.2500 | + | 3/12/2020 |
| 232,588 |
FMG Resources |
| 299,250 |
| 5.2500 | + | 10/18/2017 |
| 305,085 |
Frac Tech International LLC |
| 235,000 |
| 8.5000 | + | 4/19/2016 |
| 232,686 |
Go Daddy |
| 239,394 |
| 5.5000 | + | 12/17/2018 |
| 241,279 |
HawkerJ Beechcraft |
| 250,000 |
| - | + | 12/31/2020 |
| 250,470 |
Hostess Brands Inc |
| 205,000 |
| 6.7500 | + | 3/12/2020 |
| 210,381 |
Houghton International Inc. |
| 244,388 |
| 5.7500 | + | 11/20/2019 |
| 248,664 |
Hubbard Broadcasting |
| 44,000 |
| 4.7500 | + | 4/28/2017 |
| 44,825 |
INC Research LLC |
| 91,381 |
| 5.7500 | + | 7/20/2018 |
| 92,523 |
Integra Telecom |
| 191,000 |
| 6.0000 | + | 2/20/2019 |
| 195,377 |
Inventiv Health Inc. |
| 119,990 |
| 6.0000 | + | 8/4/2016 |
| 119,340 |
IStar |
| 242,616 |
| 3.5000 | + | 10/15/2017 |
| 245,914 |
Navistar Inc |
| 167,400 |
| 5.5000 | + | 8/17/2017 |
| 170,905 |
Noranda Aluminum Acquistion |
| 188,524 |
| 5.7500 | + | 2/28/2019 |
| 191,352 |
Pharmaceutical Research |
| 243,625 |
| 6.5000 | + | 11/7/2017 |
| 247,889 |
Rite Aid Corp |
| 16,000 |
| 5.0000 | + | 12/31/2021 |
| 16,640 |
Riverbed Technology |
| 43,825 |
| 4.0000 | + | 10/29/2019 |
| 44,701 |
RP Crown Parent LLC |
| 57,855 |
| 6.7500 | + | 12/14/2018 |
| 57,819 |
Saxon Energy Services Inc. |
| 209,000 |
| 4.2500 | + | 12/31/2019 |
| 211,417 |
SESAC Inc |
| 108,728 |
| 4.7500 | + | 2/8/2019 |
| 110,019 |
Seven Sea Cruises |
| 310,000 |
| 3.5000 | + | 12/21/2018 |
| 314,650 |
Sorenson Communications Inc. |
| 185,000 |
| 8.2500 | + | 10/31/2014 |
| 188,700 |
Supervalu Inc. |
| 141,000 |
| 5.0000 | + | 3/21/2019 |
| 143,433 |
Surgery Center |
| 136,000 |
| 4.7500 | + | 3/18/2019 |
| 135,782 |
Tower Automotive Holdings |
| 147,000 |
| 4.5000 | + | 4/16/2020 |
| 149,068 |
Tribune Co. |
| 81,795 |
| 4.0000 | + | 11/28/2019 |
| 82,911 |
Tronox Inc |
| 155,000 |
| - | + | 7/31/2020 |
| 157,527 |
United Surgical Partners Intl |
| 97,000 |
| - | + | 4/3/2049 |
| 97,849 |
Walter Investment MGMT |
| 280,405 |
| 5.7500 | + | 11/28/2017 |
| 285,838 |
Zuffa, LLC |
| 307,830 |
| 4.0000 | + | 2/19/2020 |
| 309,883 |
TOTAL BANK LOANS (Cost - $8,687,322) |
|
|
|
|
|
|
| 8,805,387 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) | ||||||||
Dunham Corporate/Government Bond Fund (Continued) | ||||||||
April 30, 2013 | ||||||||
PREFERRED STOCK - 0.6 % |
| Shares |
| Dividend Rate |
|
|
|
|
BANKS - 0.4 % |
|
|
|
|
|
|
|
|
GMAC Capital Trust I |
| 17,600 |
| 8.1250 | % + | 2/15/2040 |
| 482,064 |
|
|
|
|
|
|
|
|
|
DIVERSIFIED FINANCIAL SERVICES - 0.2 % |
|
|
|
|
|
|
|
|
Citigroup Capital XIII |
| 7,200 |
| 7.8750 | + | 10/30/2040 |
| 203,328 |
|
|
|
|
|
|
|
|
|
TOTAL PREFERRED STOCK (Cost - $620,000) |
|
|
|
|
|
|
| 685,392 |
SCHEDULE OF INVESTMENTS (Unaudited) | ||||||||
Dunham Corporate/Government Bond Fund (Continued) | ||||||||
April 30, 2013 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| Interest |
|
|
|
|
Security |
| Shares |
| Rate |
|
|
| Value |
SHORT-TERM INVESTMENTS - 3.6 % |
|
|
|
|
|
|
|
|
MONEY MARKET FUND - 3.6 % |
|
|
|
|
|
|
|
|
Fidelity Institutional Money Market Funds - Government Portfolio | 4,488,039 |
| 0.0100 | % + |
|
| $ 4,488,039 | |
TOTAL SHORT-TERM INVESTMENTS (Cost - $4,488,039) |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
TOTAL INVESTMENTS - 101.1 % (Cost - $120,951,919) (c) |
|
|
|
|
|
| $ 124,672,293 | |
OTHER LIABILITIES LESS ASSETS - (1.1) % |
|
|
|
|
|
|
| (1,297,236) |
NET ASSETS - 100.0% |
|
|
|
|
|
|
| $ 123,375,057 |
|
|
|
|
|
|
|
|
|
ABS - Asset Backed Security |
|
|
|
|
|
|
|
|
CMO - Collateralized Mortgage Obligation |
|
|
|
|
|
|
|
|
MBS - Mortgage Back Security |
|
|
|
|
|
|
|
|
REIT - Real Estate Investment Trust |
|
|
|
|
|
|
|
|
+ Variable rate security. Interest rate is as of April 30, 2013. |
|
|
|
|
|
|
| |
* The value of this security has been determined in good faith under the policies of the Board of Trustees. | ||||||||
144A - Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. | ||||||||
(a) Step-Up Bond; the interest rate shown is the rate in effect as of April 30, 2013. |
|
|
|
|
|
|
| |
(b) Zero coupon security. Payment received at maturity. |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
Portfolio Composition * - (Unaudited) | ||||||||
Corporate Notes & Bonds |
| 59.06% | Preferred Stocks |
|
| 0.55% | ||
U.S. Government & Agencies Notes & Bonds |
| 28.97% | Foreign Government |
| 0.51% | |||
Bank Loans |
| 7.06% | Municipal |
|
|
| 0.25% | |
Short-Term Investment |
| 3.60% | Total |
|
|
| 100.00% | |
|
|
|
|
|
|
|
|
|
* Based on total value of investments as of April 30, 2013. |
|
|
|
|
|
|
| |
Percentage may differ from Schedule of Investments which is based on Fund net assets. |
See accompanying notes to financial statements.
Dunham High-Yield Bond Fund
Message from the Sub-Adviser (PENN Capital Management Company, Inc.)
For the six-month period ending April 30, 2013, high-yield bonds, as measured by the BofA ML High-Yield Bond Cash Pay Index, continued to significantly outperform broad investment-grade bonds, as measured by the Barclays Aggregate Bond Index, and broad Treasuries, as measured by the BofA ML Treasury Master Index. High-yield bonds increased 7.2 percent, while broad investment-grade bonds and broad Treasuries each gained 0.9 percent.
Within the high-yield bond market, securities rated CCC and lower outperformed securities rated BB and securities rated B in the first half of the fiscal year. CCC-rated bonds increased 11.3 percent, while B-rated bonds increased 7.3 percent and BB-rated bonds gained 5.7 percent. The outperformance of CCC-rated bonds over BB and B-rated bonds, during both fiscal quarters, detracted from the Funds relative performance due to the focus on BB and B-rated bonds.
During the first fiscal quarter, the Sub-Adviser was overweight high-yield bonds in the energy sector and also in mining companies related to energy such as coal miners. This overweight in coal mining companies in the first fiscal quarter seemed to neither add to nor detract from relative performance, as high-yield bonds within the sector were up 3.7 percent on average during the first fiscal quarter. During the second quarter, the Sub-Adviser continued to overweight high-yield bonds in the energy sector, but focused more on natural gas and oil. Natural gas revenues seemed to continue their rally as this year’s demand reached normal levels. The Sub-Adviser believes that having a “normal winter” likely led to the increase in demand for natural gas as the prior winter was unseasonably warm. Chesapeake Energy Corporation (165167CF2), which focuses on oil and natural gas, rose 6.7 percent during the first fiscal quarter and 14.1 percent over the second fiscal quarter. This strong performer seemed to contribute to performance.
The Fund was also overweight in the telecommunications sector, which the Sub-Adviser believed is an area that may benefit high-yield bondholders through company consolidation. This overweight generally detracted from relative performance during the first fiscal quarter, as high-yield telecommunication bonds underperformed high-yield bonds as a whole by 0.9 percent. During the second quarter, however the telecommunications industry closed this gap as high-yield telecommunication bonds underperformed high-yield bonds by only 0.6 percent. Over the past six months, high-yield telecommunication bonds lagged high-yield bonds by 1.2 percent. Within the sector, some holdings such as Cincinnati Bell Inc., a local exchange and wireless provider that serves residential and business customers, outperformed both the sector in general and contributed to positive relative performance versus the benchmark index, rising 8.5 percent during the first fiscal quarter. During the second quarter, Cincinnati Bell continued to perform decently, adding to performance. Frontier Communications Corporation, a residential integrated telecommunications company, was another strong performer that gained nearly 14 percent over the second quarter. Wireless telecommunication companies also contributed to performance as companies like Sprint Nextel Corporation (852061AR1) and Crown Castle International Corpration (228227BA1) rose 10.9 percent and 8.7 percent, respectively, over the second fiscal quarter.
The Sub-Adviser was underweight in both the Metals and Mining sector and the Technology sector by the end of the second fiscal quarter. Though they added to their Metals and Mining position, they hope to maintain this underweight for the third fiscal quarter.
Growth of $10,000 Investment - (Unaudited)
Total Returns as of April 30, 2013
| Six Months | One Year | Annualized Three Years | Annualized Five Years | Annualized Since Inception(7/1/05) |
Class N | 5.57% | 10.31% | 9.05% | 8.06% | 6.48% |
Class C Class A with load of 4.50% Class A without load | 5.21% 0.68% 5.40% | 9.64% 5.15% 10.07% | 8.24% 7.15% 8.79% | 7.28% 6.81% 7.79% | 5.69% 5.32%* 6.09%* |
Morningstar High-Yield Bond Category | 6.86% | 12.76% | 9.70% | 8.39% | 7.03% |
Bo A ML High-Yield Bond Cash Pay Index | 7.19% | 13.98% | 10.79% | 10.70% | 8.88% |
*Class A commenced operations on January 3, 2007.
The Morningstar High-Yield Category is generally representative of mutual funds that primarily invest in U.S. high-income debt securities where at least 65% or more of bond assets are not rated or are rated by a major agency such as Standard & Poor's or Moody's at the level of BB (considered speculative for taxable bonds) and below.
The BofA ML High-Yield Bond Cash Pay Index is an unmanaged portfolio constructed to mirror the public high-yield debt market. Issues included in the index have maturities of one year or more and have a credit rating lower than BBB-/Baa3. Investors cannot invest directly in an index or benchmark.
As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including the cost of underlying funds, are 1.24% for Class N, 1.99% for Class C and 1.49% for Class A. The performance data quoted here represents past performance, which is not indicative of future results. Current performance may be lower or higher than the performance data quoted. The investment return and NAV will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Total returns are calculated assuming reinvestment of all dividends and capital gains distributions, if any. The returns do not reflect the deductions of taxes a shareholder would pay on the redemption of fund shares or fund distributions. For performance information current to the most recent month-end, please call 1-800-442-4358 or visit our website www.dunham.com
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham High-Yield Bond Fund |
|
|
|
|
|
|
|
|
April 30, 2013 |
|
|
|
|
|
|
|
|
|
| Principal |
| Interest |
| Maturity |
|
|
Security |
| Amount |
| Rate |
| Date |
| Value |
BONDS & NOTES - 90.8 % |
|
|
|
|
|
|
|
|
AEROSPACE/DEFENSE - 0.5 % |
|
|
|
|
|
|
|
|
Triumph Group, Inc. - 144A |
| $ 815,000 |
| 4.8750 | % | 4/1/2021 |
| $ 845,563 |
|
|
|
|
|
|
|
|
|
APPAREL - 1.4 % |
|
|
|
|
|
|
|
|
Jones Group, Inc. |
| 880,000 |
| 6.8750 |
| 3/15/2019 |
| 957,000 |
Perry Ellis International, Inc. |
| 550,000 |
| 7.8750 |
| 4/1/2019 |
| 587,812 |
Wolverine World Wide, Inc. -144A |
| 630,000 |
| 6.1250 |
| 10/15/2020 |
| 689,063 |
|
|
|
|
|
|
|
| 2,233,875 |
AUTO PARTS & EQUIPMENT - 1.4 % |
|
|
|
|
|
|
|
|
Delphi Corp. |
| 700,000 |
| 5.0000 |
| 2/15/2023 |
| 761,250 |
Pittsburgh Glass Works LLC - 144A |
| 740,000 |
| 8.5000 |
| 4/15/2016 |
| 765,900 |
Titan International, Inc. - 144A |
| 335,000 |
| 7.8750 |
| 10/1/2017 |
| 361,800 |
Titan International, Inc. |
| 280,000 |
| 7.8750 |
| 10/1/2017 |
| 302,400 |
|
|
|
|
|
|
|
| 2,191,350 |
BANKS - 3.2 % |
|
|
|
|
|
|
|
|
Ally Financial, Inc. |
| 335,000 |
| 7.5000 |
| 9/15/2020 |
| 412,469 |
Ally Financial, Inc. |
| 800,000 |
| 8.0000 |
| 3/15/2020 |
| 1,010,000 |
CIT Group, Inc. |
| 295,000 |
| 5.3750 |
| 5/15/2020 |
| 334,088 |
CIT Group, Inc. -144A |
| 750,000 |
| 5.5000 |
| 2/15/2019 |
| 849,375 |
Synovus Financial Corp. |
| 1,370,000 |
| 5.1250 |
| 6/15/2017 |
| 1,390,550 |
Synovus Financial Corp. |
| 960,000 |
| 7.8750 |
| 2/15/2019 |
| 1,106,400 |
|
|
|
|
|
|
|
| 5,102,882 |
BUILDING MATERIALS - 0.5 % |
|
|
|
|
|
|
|
|
USG Corp. |
| 670,000 |
| 6.3000 |
| 11/15/2016 |
| 716,900 |
|
|
|
|
|
|
|
|
|
CHEMICALS - 2.8 % |
|
|
|
|
|
|
|
|
PetroLogistics Finance Corp. - 144A |
| 645,000 |
| 6.2500 |
| 4/1/2020 |
| 657,900 |
PolyOne Corp. |
| 695,000 |
| 7.3750 |
| 9/15/2020 |
| 783,612 |
TPC Group, Inc. - 144A |
| 910,000 |
| 8.7500 |
| 12/15/2020 |
| 964,600 |
Tronox Finance LLC - 144A |
| 1,555,000 |
| 6.3750 |
| 8/15/2020 |
| 1,556,944 |
US Coatings Acquisition, Inc. - 144A |
| 625,000 |
| 7.3750 |
| 5/1/2021 |
| 669,531 |
|
|
|
|
|
|
|
| 4,632,587 |
COAL - 4.4 % |
|
|
|
|
|
|
|
|
Alpha Appalachia Holdings, Inc. |
| 1,365,000 |
| 3.2500 |
| 8/1/2015 |
| 1,303,575 |
Alpha Natural Resources, Inc. |
| 475,000 |
| 9.7500 |
| 4/15/2018 |
| 517,750 |
Arch Coal, Inc. |
| 1,145,000 |
| 7.0000 |
| 6/15/2019 |
| 1,067,712 |
Arch Coal, Inc. |
| 605,000 |
| 8.7500 |
| 8/1/2016 |
| 632,225 |
Arch Coal, Inc. - 144A |
| 750,000 |
| 9.8750 |
| 6/15/2019 |
| 774,375 |
Cloud Peak Energy Finance Corp. |
| 195,000 |
| 8.2500 |
| 12/15/2017 |
| 210,600 |
Cloud Peak Energy Finance Corp. |
| 155,000 |
| 8.5000 |
| 12/15/2019 |
| 170,500 |
CONSOL Energy, Inc. |
| 535,000 |
| 8.2500 |
| 4/1/2020 |
| 601,875 |
Peabody Energy Corp. |
| 250,000 |
| 6.0000 |
| 11/15/2018 |
| 268,125 |
Peabody Energy Corp. |
| 1,340,000 |
| 6.2500 |
| 11/15/2021 |
| 1,435,475 |
|
|
|
|
|
|
|
| 6,982,212 |
COMMERCIAL SERVICES - 3.2 % |
|
|
|
|
|
|
|
|
Avis Budget Finance, Inc. |
| 170,000 |
| 8.2500 |
| 1/15/2019 |
| 189,763 |
Avis Budget Finance, Inc. |
| 155,000 |
| 9.7500 |
| 3/15/2020 |
| 185,031 |
Cardtronics, Inc. |
| 500,000 |
| 8.2500 |
| 9/1/2018 |
| 550,625 |
CoreLogic, Inc. |
| 610,000 |
| 7.2500 |
| 6/1/2021 |
| 680,150 |
Emergency Medical Services Corp. |
| 995,000 |
| 8.1250 |
| 6/1/2019 |
| 1,106,938 |
HDTFS, Inc. |
| 200,000 |
| 6.2500 |
| 10/15/2022 |
| 224,750 |
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham High-Yield Bond Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2013 |
|
|
|
|
|
|
|
|
|
| Principal |
| Interest |
| Maturity |
|
|
Security |
| Amount |
| Rate |
| Date |
| Value |
COMMERCIAL SERVICES - 3.2 % (Continued) |
|
|
|
|
|
|
|
|
Hertz Corp |
| $ 320,000 |
| 5.8750 | % | 10/15/2020 |
| $ 348,000 |
Live Nation Entertainment, Inc. - 144A |
| 750,000 |
| 7.0000 |
| 9/1/2020 |
| 820,312 |
TransUnion Financing Corp. |
| 295,000 |
| 11.3750 |
| 6/15/2018 |
| 339,250 |
WEX, Inc. - 144A |
| 650,000 |
| 4.7500 |
| 2/1/2023 |
| 653,250 |
|
|
|
|
|
|
|
| 5,098,069 |
COMPUTERS - 1.1 % |
|
|
|
|
|
|
|
|
Seagate HDD Cayman |
| 515,000 |
| 7.750 |
| 12/15/2018 |
| 570,363 |
Stream Global Services, Inc. |
| 330,000 |
| 11.250 |
| 10/1/2014 |
| 343,200 |
SunGard Data Systems, Inc. -144A |
| 710,000 |
| 6.625 |
| 11/1/2019 |
| 758,813 |
|
|
|
|
|
|
|
| 1,672,376 |
COSMETICS/PERSONAL CARE - 0.5 % |
|
|
|
|
|
|
|
|
Revlon Consumer Products Corp. - 144A |
| 760,000 |
| 5.7500 |
| 2/15/2021 |
| 785,650 |
|
|
|
|
|
|
|
|
|
DISTRIBUTION/WHOLESALE - 0.7 % |
|
|
|
|
|
|
|
|
HD Supply, Inc. |
| 885,000 |
| 11.0000 |
| 4/15/2020 |
| 1,086,338 |
|
|
|
|
|
|
|
|
|
DIVERSIFIED FINANCIAL SERVICES - 4.2 % |
|
|
|
|
|
|
| |
AerCap Aviation Solutions BV |
| 675,000 |
| 6.3750 |
| 5/30/2017 |
| 732,375 |
Aircastle Ltd. |
| 1,620,000 |
| 6.2500 |
| 12/1/2019 |
| 1,814,400 |
Aircastle Ltd. |
| 355,000 |
| 6.7500 |
| 4/15/2017 |
| 395,380 |
E*TRADE Financial Corp. |
| 515,000 |
| 6.0000 |
| 11/15/2017 |
| 547,188 |
E*TRADE Financial Corp. |
| 1,300,000 |
| 6.3750 |
| 11/15/2019 |
| 1,404,000 |
E*TRADE Financial Corp. |
| 280,000 |
| 6.7500 |
| 6/1/2016 |
| 304,500 |
International Lease Finance Corp. |
| 675,000 |
| 5.8750 |
| 8/15/2022 |
| 745,266 |
International Lease Finance Corp. |
| 245,000 |
| 8.6250 |
| 1/15/2022 |
| 319,725 |
National Money Mart Co. |
| 485,000 |
| 10.3750 |
| 12/15/2016 |
| 521,981 |
|
|
|
|
|
|
|
| 6,784,815 |
ELECTRIC - 2.0 % |
|
|
|
|
|
|
|
|
Calpine Corp. -144A |
| 941,000 |
| 7.5000 |
| 2/15/2021 |
| 1,055,096 |
NRG Energy, Inc. - 144A |
| 320,000 |
| 6.6250 |
| 3/15/2023 |
| 350,400 |
NRG Energy, Inc. |
| 1,130,000 |
| 7.6250 |
| 1/15/2018 |
| 1,315,038 |
NRG Energy, Inc. |
| 375,000 |
| 7.8750 |
| 5/15/2021 |
| 426,562 |
|
|
|
|
|
|
|
| 3,147,096 |
ELECTRICAL COMPONENTS & EQUIPMENT - 0.7 % |
|
|
|
|
|
|
| |
Belden, Inc. -144A |
| 625,000 |
| 5.5000 |
| 9/1/2022 |
| 646,875 |
Coleman Cable, Inc. |
| 435,000 |
| 9.0000 |
| 2/15/2018 |
| 473,062 |
|
|
|
|
|
|
|
| 1,119,937 |
ELECTRONICS - 1.3 % |
|
|
|
|
|
|
|
|
Sanmina Corp. -144A |
| 930,000 |
| 7.0000 |
| 5/15/2019 |
| 997,425 |
Viasystems, Inc. - 144A |
| 1,065,000 |
| 7.8750 |
| 5/1/2019 |
| 1,142,212 |
|
|
|
|
|
|
|
| 2,139,637 |
ENTERTAINMENT - 2.3 % |
|
|
|
|
|
|
|
|
GWR Operating Partnership LLP |
| 1,240,000 |
| 10.8750 |
| 4/1/2017 |
| 1,407,400 |
Isle of Capri Casinos, Inc. - 144A |
| 1,145,000 |
| 5.8750 |
| 3/15/2021 |
| 1,155,019 |
Palace Entertainment Holdings Corp. - 144A |
| 960,000 |
| 8.8750 |
| 4/15/2017 |
| 1,034,400 |
|
|
|
|
|
|
|
| 3,596,819 |
FOOD - 1.0 % |
|
|
|
|
|
|
|
|
ARAMARK Corp. - 144A |
| 375,000 |
| 5.7500 |
| 3/15/2020 |
| 391,406 |
Hawk Acquisition Sub, Inc. - 144A |
| 750,000 |
| 4.2500 |
| 10/15/2020 |
| 761,250 |
Pinnacle Foods Finance Corp. - 144A |
| 400,000 |
| 4.8750 |
| 5/1/2021 |
| 412,500 |
|
|
|
|
|
|
|
| 1,565,156 |
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham High-Yield Bond Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2013 |
|
|
|
|
|
|
|
|
|
| Principal |
| Interest |
| Maturity |
|
|
Security |
| Amount |
| Rate |
| Date |
| Value |
FOREST PRODUCTS & PAPER - 0.6 % |
|
|
|
|
|
|
|
|
Boise Paper Holdings LLC |
| $ 835,000 |
| 9.0000 | % | 11/1/2017 |
| $ 903,888 |
|
|
|
|
|
|
|
|
|
GAS - 1.9 % |
|
|
|
|
|
|
|
|
Sabine Pass LNG LP |
| 325,000 |
| 6.5000 |
| 11/1/2020 |
| 345,312 |
Sabine Pass LNG LP -144A |
| 2,300,000 |
| 7.5000 |
| 11/30/2016 |
| 2,610,500 |
|
|
|
|
|
|
|
| 2,955,812 |
HEALTHCARE-PRODUCTS - 2.0 % |
|
|
|
|
|
|
|
|
Alere, Inc. - 144A |
| 560,000 |
| 7.2500 |
| 7/1/2018 |
| 606,200 |
Biomet, Inc. - 144A |
| 560,000 |
| 6.5000 |
| 8/1/2020 |
| 612,500 |
Biomet, Inc. - 144A |
| 385,000 |
| 6.5000 |
| 10/1/2020 |
| 395,588 |
Hologic, Inc. |
| 1,015,000 |
| 6.2500 |
| 8/1/2020 |
| 1,093,662 |
Universal Hospital Services, Inc. |
| 390,000 |
| 7.6250 |
| 8/15/2020 |
| 423,150 |
|
|
|
|
|
|
|
| 3,131,100 |
HEALTHCARE-SERVICES - 2.6 % |
|
|
|
|
|
|
|
|
Community Health Systems, Inc. |
| 685,000 |
| 7.1250 |
| 7/15/2020 |
| 766,344 |
DaVita HealthCare Partners, Inc. |
| 360,000 |
| 5.7500 |
| 8/15/2022 |
| 385,200 |
HCA, Inc. |
| 750,000 |
| 5.8750 |
| 3/15/2022 |
| 834,375 |
HealthSouth Corp. |
| 675,000 |
| 7.7500 |
| 9/15/2022 |
| 750,938 |
ResCare, Inc. |
| 495,000 |
| 10.7500 |
| 1/15/2019 |
| 561,825 |
Tenet Healthcare Corp. - 144A |
| 750,000 |
| 4.5000 |
| 4/1/2021 |
| 766,875 |
|
|
|
|
|
|
|
| 4,065,557 |
HOLDING COMPANIES-DIVERSIFIED - 0.1 % |
|
|
|
|
|
|
| |
WaveDivision Escrow Corp. - 144A |
| 120,000 |
| 8.1250 |
| 9/1/2020 |
| 126,450 |
|
|
|
|
|
|
|
|
|
HOME BUILDERS - 0.6 % |
|
|
|
|
|
|
|
|
Taylor Morrison Communities, Inc. - 144A |
| 580,000 |
| 5.2500 |
| 4/15/2021 |
| 594,500 |
Taylor Morrison Communities, Inc. - 144A |
| 303,000 |
| 7.7500 |
| 4/15/2020 |
| 339,360 |
|
|
|
|
|
|
|
| 933,860 |
HOME FURNISHINGS - 0.7 % |
|
|
|
|
|
|
|
|
Tempur-Pedic International, Inc. - 144A |
| 955,000 |
| 6.8750 |
| 12/15/2020 |
| 1,046,918 |
|
|
|
|
|
|
|
|
|
HOUSEHOLD PRODUCTS - 1.4 % |
|
|
|
|
|
|
|
|
Prestige Brands, Inc. |
| 285,000 |
| 8.1250 |
| 2/1/2020 |
| 328,105 |
Reynolds Group Issuer, Inc. |
| 340,000 |
| 5.7500 |
| 10/15/2020 |
| 357,000 |
Reynolds Group Issuer, Inc. |
| 550,000 |
| 7.8750 |
| 8/15/2019 |
| 618,750 |
Spectrum Brands Escrow Corp. - 144A |
| 680,000 |
| 6.3750 |
| 11/15/2020 |
| 744,600 |
Spectrum Brands, Inc. |
| 190,000 |
| 6.7500 |
| 3/15/2020 |
| 206,388 |
|
|
|
|
|
|
|
| 2,254,843 |
HOUSEWARES - 0.4 % |
|
|
|
|
|
|
|
|
Libbey Glass, Inc. |
| 645,000 |
| 6.8750 |
| 5/15/2020 |
| 710,306 |
|
|
|
|
|
|
|
|
|
INTERNET - 0.3 % |
|
|
|
|
|
|
|
|
CyrusOne Finance Corp. - 144A |
| 510,000 |
| 6.3750 |
| 11/15/2022 |
| 541,238 |
|
|
|
|
|
|
|
|
|
LEISURE TIME - 1.0 % |
|
|
|
|
|
|
|
|
NCL Corp. Ltd. - 144A |
| 1,110,000 |
| 5.0000 |
| 2/15/2018 |
| 1,155,788 |
Royal Caribbean Cruises Ltd. |
| 400,000 |
| 11.8750 |
| 7/15/2015 |
| 482,000 |
|
|
|
|
|
|
|
| 1,637,788 |
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham High-Yield Bond Fund (Continued) |
|
|
|
|
|
|
|
|
April 30, 2013 |
|
|
|
|
|
|
|
|
|
| Principal |
| Interest |
| Maturity |
|
|
Security |
| Amount |
| Rate |
| Date |
| Value |
LODGING - 2.2 % |
|
|
|
|
|
|
|
|
Ameristar Casinos, Inc. |
| $ 590,000 |
| 7.5000 | % | 4/15/2021 |
| $ 660,800 |
Boyd Gaming Corp. |
| 795,000 |
| 9.1250 |
| 12/1/2018 |
| 886,425 |
MGM Resorts International - 144A |
| 390,000 |
| 6.7500 |
| 10/1/2020 |
| 429,000 |
MGM Resorts International |
| 355,000 |
| 8.6250 |
| 2/1/2019 |
| 419,344 |
Wynn Las Vegas LLC |
| 750,000 |
| 7.8750 |
| 11/1/2017 |
| 800,625 |
Wynn Las Vegas LLC |
| 250,000 |
| 7.8750 |
| 5/1/2020 |
| 285,625 |
|
|
|
|
|
|
|
| 3,481,819 |
MACHINERY-CONSTRUCTION & MINING - 0.4 % |
|
|
|
|
|
|
| |
Terex Corp. |
| 560,000 |
| 6.0000 |
| 5/15/2021 |
| 604,800 |
|
|
|
|
|
|
|
|
|
MACHINERY-DIVERSIFIED - 1.1 % |
|
|
|
|
|
|
|
|
Manitowoc Co., Inc. |
| 500,000 |
| 5.8750 |
| 10/15/2022 |
| 533,750 |
Manitowoc Co., Inc. |
| 1,050,000 |
| 8.5000 |
| 11/1/2020 |
| 1,202,250 |
|
|
|
|
|
|
|
| 1,736,000 |
MEDIA - 7.3 % |
|
|
|
|
|
|
|
|
CCO Holdings LLC |
| 720,000 |
| 5.2500 |
| 9/30/2022 |
| 737,100 |
Clear Channel Worldwide Holdings, Inc. |
| 1,325,000 |
| 7.6250 |
| 3/15/2020 |
| 1,434,313 |
Crown Media Holdings, Inc. |
| 375,000 |
| 10.5000 |
| 7/15/2019 |
| 426,563 |
DISH DBS Corp. - 144A |
| 575,000 |
| 5.1250 |
| 5/1/2020 |
| 572,125 |
DISH DBS Corp. |
| 500,000 |
| 5.8750 |
| 7/15/2022 |
| 509,375 |
DISH DBS Corp. |
| 650,000 |
| 7.8750 |
| 9/1/2019 |
| 744,250 |
Entercom Radio LLC |
| 1,180,000 |
| 10.5000 |
| 12/1/2019 |
| 1,371,750 |
Entravision Communications Corp. |
| 362,000 |
| 8.7500 |
| 8/1/2017 |
| 391,865 |
Harron Finance Corp. - 144A |
| 425,000 |
| 9.1250 |
| 4/1/2020 |
| 473,875 |
LIN Television Corp. - 144A |
| 1,095,000 |
| 6.3750 |
| 1/15/2021 |
| 1,168,913 |
Nexstar Broadcasting, Inc. |
| 700,000 |
| 8.8750 |
| 4/15/2017 |
| 770,000 |
Sirius XM Radio, Inc. - 144A |
| 545,000 |
| 5.2500 |
| 8/15/2022 |
| 565,438 |
Starz LLC |
| 1,385,000 |
| 5.0000 |
| 9/15/2019 |
| 1,452,519 |
Starz LLC - 144A |
| 360,000 |
| 5.0000 |
| 9/15/2019 |
| 368,550 |
Videotron Ltd. |
| 635,000 |
| 5.0000 |
| 7/15/2022 |
| 657,225 |
|
|
|
|
|
|
|
| 11,643,861 |
MINING - 1.5 % |
|
|
|
|
|
|
|
|
FMG Resources Ltd. -144A |
| 735,000 |
| 6.0000 |
| 4/1/2017 |
| 768,075 |
FMG Resources Ltd. -144A |
| 365,000 |
| 6.8750 |
| 4/1/2022 |
| 392,831 |
FMG Resources Ltd. -144A |
| 610,000 |
| 8.2500 |
| 11/1/2019 |
| 668,712 |
Kaiser Aluminum Corp. |
| 425,000 |
| 8.2500 |
| 6/1/2020 |
| 485,563 |
|
|
|
|
|
|
|
| 2,315,181 |
OFFICE FURNISHINGS - 0.4 % |
|
|
|
|
|
|
|
|
Interface, Inc. |
| 545,000 |
| 7.6250 |
| 12/1/2018 |
| 594,731 |
|
|
|
|
|
|
|
|
|
OFFICE/BUSINESS EQUIPMENT - 0.4 % |
|
|
|
|
|
|
|
|
CDW LLC |
| 620,000 |
| 8.5000 |
| 4/1/2019 |
| 693,625 |
|
|
|
|
|
|
|
|
|
OIL & GAS - 13.4 % |
|
|
|
|
|
|
|
|
Bill Barrett Corp. |
| 945,000 |
| 7.0000 |
| 10/15/2022 |
| 1,020,600 |
Bill Barrett Corp. |
| 185,000 |
| 7.6250 |
| 10/1/2019 |
| 202,575 |
Bonanza Creek Energy, Inc. - 144A |
| 1,155,000 |
| 6.7500 |
| 4/15/2021 |
| 1,202,644 |
Chaparral Energy, Inc. |
| 845,000 |
| 7.6250 |
| 11/15/2022 |
| 937,950 |
Chaparral Energy, Inc. - 144A |
| 505,000 |
| 7.6250 |
| 11/15/2022 |
| 556,131 |
Chaparral Energy, Inc. |
| 250,000 |
| 8.2500 |
| 9/1/2021 |
| 283,750 |
Chaparral Energy, Inc. |
| 205,000 |
| 9.8750 |
| 10/1/2020 |
| 239,850 |
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham High-Yield Bond Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2013 |
|
|
|
|
|
|
|
|
|
| Principal |
| Interest |
| Maturity |
|
|
Security |
| Amount |
| Rate |
| Date |
| Value |
OIL & GAS - 13.4 % (Continued) |
|
|
|
|
|
|
|
|
Chesapeake Energy Corp. |
| $ 350,000 |
| 5.3750 | % | 6/15/2021 |
| $ 365,313 |
Chesapeake Energy Corp. |
| 745,000 |
| 6.1250 |
| 2/15/2021 |
| 823,225 |
Chesapeake Energy Corp. |
| 1,250,000 |
| 6.6250 |
| 8/15/2020 |
| 1,420,312 |
Comstock Resources, Inc. |
| 600,000 |
| 7.7500 |
| 4/1/2019 |
| 645,000 |
Drill Rigs Holdings, Inc. - 144A |
| 1,310,000 |
| 6.5000 |
| 10/1/2017 |
| 1,332,925 |
EXCO Resources, Inc. |
| 800,000 |
| 7.5000 |
| 9/15/2018 |
| 796,000 |
Gulfport Energy Corp. - 144A |
| 930,000 |
| 7.7500 |
| 11/1/2020 |
| 1,006,725 |
Hercules Offshore, Inc. - 144A |
| 930,000 |
| 7.1250 |
| 4/1/2017 |
| 1,013,700 |
Hercules Offshore, Inc. - 144A |
| 550,000 |
| 10.2500 |
| 4/1/2019 |
| 633,875 |
Linn Energy Finance Corp. - 144A |
| 1,420,000 |
| 6.2500 |
| 11/1/2019 |
| 1,491,000 |
Linn Energy Finance Corp. |
| 450,000 |
| 7.7500 |
| 2/1/2021 |
| 495,000 |
Linn Energy Finance Corp. |
| 705,000 |
| 8.6250 |
| 4/15/2020 |
| 791,362 |
Oasis Petroleum, Inc. |
| 500,000 |
| 6.8750 |
| 1/15/2023 |
| 557,500 |
Offshore Group Investment Ltd. - 144A |
| 245,000 |
| 7.1250 |
| 4/1/2023 |
| 253,269 |
Offshore Group Investment Ltd. - 144A |
| 555,000 |
| 7.5000 |
| 11/1/2019 |
| 600,788 |
Parker Drilling Co. |
| 890,000 |
| 9.1250 |
| 4/1/2018 |
| 979,000 |
Penn Virginia Corp. - 144A |
| 750,000 |
| 8.5000 |
| 5/1/2020 |
| 752,812 |
Rosetta Resources, Inc. |
| 395,000 |
| 5.6250 |
| 5/1/2021 |
| 412,281 |
SandRidge Energy, Inc. |
| 965,000 |
| 7.5000 |
| 3/15/2021 |
| 1,006,013 |
Swift Energy Co. |
| 350,000 |
| 7.1250 |
| 6/1/2017 |
| 360,500 |
Swift Energy Co. |
| 250,000 |
| 7.8750 |
| 3/1/2022 |
| 261,875 |
W&T Offshore, Inc. |
| 825,000 |
| 8.5000 |
| 6/15/2019 |
| 903,375 |
|
|
|
|
|
|
|
| 21,345,350 |
OIL & GAS SERVICES - 2.3 % |
|
|
|
|
|
|
|
|
Basic Energy Services, Inc. |
| 175,000 |
| 7.7500 |
| 2/15/2019 |
| 182,219 |
Basic Energy Services, Inc. |
| 575,000 |
| 7.7500 |
| 10/15/2022 |
| 608,062 |
Hornbeck Offshore Services, Inc. - 144A |
| 400,000 |
| 5.0000 |
| 3/1/2021 |
| 401,500 |
Key Energy Services, Inc. |
| 710,000 |
| 6.7500 |
| 3/1/2021 |
| 745,500 |
Pioneer Energy Services Corp. |
| 570,000 |
| 9.8750 |
| 3/15/2018 |
| 629,138 |
Stallion Oilfield Holdings Ltd. |
| 612,000 |
| 10.5000 |
| 2/15/2015 |
| 648,720 |
Trinidad Drilling Ltd. - 144A |
| 425,000 |
| 7.8750 |
| 1/15/2019 |
| 464,312 |
|
|
|
|
|
|
|
| 3,679,451 |
PACKAGING & CONTAINERS - 0.6 % |
|
|
|
|
|
|
|
|
Crown Americas LLC - 144A |
| 600,000 |
| 4.5000 |
| 1/15/2023 |
| 615,750 |
Packaging Dynamics Corp. - 144A |
| 350,000 |
| 8.7500 |
| 2/1/2016 |
| 367,062 |
|
|
|
|
|
|
|
| 982,812 |
PHARMACEUTICALS - 1.9 % |
|
|
|
|
|
|
|
|
BioScrip, Inc. |
| 330,000 |
| 10.2500 |
| 10/1/2015 |
| 348,975 |
Valeant Pharmaceuticals International - 144A | 485,000 |
| 6.3750 |
| 10/15/2020 |
| 539,562 | |
Valeant Pharmaceuticals International - 144A | 910,000 |
| 6.7500 |
| 8/15/2021 |
| 1,010,100 | |
Warner Chilcott Co. LLC |
| 1,050,000 |
| 7.7500 |
| 9/15/2018 |
| 1,144,500 |
|
|
|
|
|
|
|
| 3,043,137 |
PIPELINES - 1.5 % |
|
|
|
|
|
|
|
|
MarkWest Energy Finance Corp. |
| 575,000 |
| 4.5000 |
| 7/15/2023 |
| 602,312 |
Rockies Express Pipeline LLC - 144A |
| 460,000 |
| 6.0000 |
| 1/15/2019 |
| 454,250 |
Rockies Express Pipeline LLC - 144A |
| 385,000 |
| 6.8500 |
| 7/15/2018 |
| 396,550 |
Sabine Pass Liquefaction - 144A |
| 565,000 |
| 5.6250 |
| 2/1/2021 |
| 586,188 |
Sabine Pass Liquefaction - 144A |
| 365,000 |
| 5.6250 |
| 4/15/2023 |
| 375,950 |
|
|
|
|
|
|
|
| 2,415,250 |
REAL ESTATE - 0.5 % |
|
|
|
|
|
|
|
|
Realogy Group LLC - 144A |
| 635,000 |
| 7.6250 |
| 1/15/2020 |
| 722,312 |
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham High-Yield Bond Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2013 |
|
|
|
|
|
|
|
|
|
| Principal |
| Interest |
| Maturity |
|
|
Security |
| Amount |
| Rate |
| Date |
| Value |
REITS - 1.3 % |
|
|
|
|
|
|
|
|
Felcor Lodging LP |
| $ 270,000 |
| 6.7500 | % | 6/1/2019 |
| $ 296,325 |
Felcor Lodging LP |
| 281,000 |
| 10.0000 |
| 10/1/2014 |
| 313,666 |
iStar Financial, Inc. |
| 710,000 |
| 7.1250 |
| 2/15/2018 |
| 756,150 |
RHP Finance Corp. - 144A |
| 375,000 |
| 5.0000 |
| 4/15/2021 |
| 384,141 |
Sabra Capital Corp. |
| 270,000 |
| 8.1250 |
| 11/1/2018 |
| 295,650 |
|
|
|
|
|
|
|
| 2,045,932 |
SEMICONDUCTORS - 0.5 % |
|
|
|
|
|
|
|
|
Freescale Semiconductor, Inc. -144A |
| 415,000 |
| 10.1250 |
| 3/15/2018 |
| 461,688 |
MagnaChip Semiconductor SA |
| 300,000 |
| 10.5000 |
| 4/15/2018 |
| 337,500 |
|
|
|
|
|
|
|
| 799,188 |
SOFTWARE - 0.4 % |
|
|
|
|
|
|
|
|
MedAssets, Inc. |
| 555,000 |
| 8.000 |
| 11/15/2018 |
| 614,663 |
|
|
|
|
|
|
|
|
|
TELECOMMUNICATIONS - 11.2 % |
|
|
|
|
|
|
|
|
Cincinnati Bell, Inc. |
| 620,000 |
| 8.2500 |
| 10/15/2017 |
| 666,500 |
Cincinnati Bell, Inc. |
| 1,075,000 |
| 8.3750 |
| 10/15/2020 |
| 1,158,312 |
Cincinnati Bell, Inc. |
| 740,000 |
| 8.7500 |
| 3/15/2018 |
| 758,500 |
Crown Castle International Corp |
| 650,000 |
| 5.2500 |
| 1/15/2023 |
| 684,125 |
Crown Castle International Corp |
| 350,000 |
| 7.1250 |
| 11/1/2019 |
| 385,875 |
Earthlink, Inc. |
| 720,000 |
| 8.8750 |
| 5/15/2019 |
| 745,200 |
Frontier Communications Corp. |
| 85,000 |
| 7.1250 |
| 1/15/2023 |
| 88,294 |
Frontier Communications Corp. |
| 490,000 |
| 8.1250 |
| 10/1/2018 |
| 570,850 |
Frontier Communications Corp. |
| 730,000 |
| 8.5000 |
| 4/15/2020 |
| 843,150 |
Frontier Communications Corp. |
| 855,000 |
| 9.2500 |
| 7/1/2021 |
| 1,002,488 |
Intelsat Jackson Holdings SA |
| 1,730,000 |
| 7.2500 |
| 10/15/2020 |
| 1,926,788 |
ITC Deltacom, Inc. |
| 977,000 |
| 10.5000 |
| 4/1/2016 |
| 1,037,452 |
Level 3 Financing, Inc. - 144A |
| 500,000 |
| 7.0000 |
| 6/1/2020 |
| 530,625 |
Level 3 Financing, Inc. |
| 805,000 |
| 8.1250 |
| 7/1/2019 |
| 887,512 |
Level 3 Financing, Inc. |
| 700,000 |
| 8.6250 |
| 7/15/2020 |
| 793,625 |
Level 3 Financing, Inc. |
| 165,000 |
| 10.0000 |
| 2/1/2018 |
| 182,530 |
Lynx I Corp. - 144A |
| 375,000 |
| 5.3750 |
| 4/15/2021 |
| 402,188 |
NeuStar, Inc. - 144A |
| 500,000 |
| 4.5000 |
| 1/15/2023 |
| 490,000 |
SBA Communications Corp. - 144A |
| 1,555,000 |
| 5.6250 |
| 10/1/2019 |
| 1,642,469 |
SBA Telecommunications, Inc. - 144A |
| 500,000 |
| 5.7500 |
| 7/15/2020 |
| 534,375 |
Sprint Nextel Corp. |
| 825,000 |
| 7.0000 |
| 8/15/2020 |
| 907,500 |
Sprint Nextel Corp. - 144A |
| 110,000 |
| 9.0000 |
| 11/15/2018 |
| 135,575 |
Sprint Nextel Corp. |
| 835,000 |
| 11.5000 |
| 11/15/2021 |
| 1,159,606 |
Windstream Corp. |
| 330,000 |
| 6.3750 |
| 8/1/2023 |
| 343,200 |
|
|
|
|
|
|
|
| 17,876,739 |
TRANSPORTATION - 1.1 % |
|
|
|
|
|
|
|
|
Florida East Coast Railway Corp. |
| 945,000 |
| 8.1250 |
| 2/1/2017 |
| 1,017,056 |
Swift Services Holdings Inc. |
| 595,000 |
| 10.0000 |
| 11/15/2018 |
| 682,762 |
|
|
|
|
|
|
|
| 1,699,818 |
|
|
|
|
|
|
|
|
|
TOTAL BONDS & NOTES ( Cost - $137,629,005) |
|
|
|
|
|
| 144,303,691 | |
|
|
|
| Dividend |
|
|
|
|
PREFERRED STOCK - 3.9 % |
| Shares |
| Rate |
|
|
|
|
BANKS - 3.9 % |
|
|
|
|
|
|
|
|
Ally Financial Inc. - 144A |
| 432 |
| 7.0000 | % |
|
| 426,317 |
Bank of America Corp. |
| 1,020 |
| 7.2500 |
|
|
| 1,269,574 |
Wells Fargo & Co. |
| 1,415 |
| 7.5000 |
|
|
| 1,867,446 |
Zions Bancorporation |
| 100,275 |
| 9.5000 |
|
|
| 2,599,128 |
TOTAL PREFERRED STOCK ( Cost - $5,389,645) |
|
|
|
|
|
| 6,162,465 |
See accompanying notes to financial statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |
Dunham High-Yield Bond Fund (Continued) |
|
|
|
|
|
|
| |
April 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
| Interest |
|
|
|
|
Security |
| Shares |
| Rate |
|
|
| Value |
SHORT-TERM INVESTMENT - 4.0 % |
|
|
|
|
|
|
|
|
MONEY MARKET FUND - 4.0 % |
|
|
|
|
|
|
|
|
First American Government Obligations Fund | 6,358,548 |
| 0.00 | %+ |
|
| $ 6,358,548 | |
TOTAL SHORT-TERM INVESTMENT (Cost - $6,358,548) |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
TOTAL INVESTMENTS - 98.7 % (Cost - $149,377,198) |
|
|
|
|
|
| $ 156,824,704 | |
OTHER ASSETS LESS LIABILITIES - 1.3 % |
|
|
|
|
|
| 2,092,339 | |
NET ASSETS - 100.0 % |
|
|
|
|
|
|
| $ 158,917,043 |
|
|
|
|
|
|
|
|
|
+ Variable rate security. Interest rate is as of April 30, 2013. |
|
|
|
|
|
|
| |
144A- Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. | ||||||||
REIT - Real Estate Investment Trust |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio Composition * - (Unaudited) | ||||||||
B3 | 29.68% |
|
| Ba1 |
|
|
| 2.24% |
B1 | 20.12% |
|
| B3 |
|
|
| 1.32% |
B2 | 16.42% |
|
| Baa3 |
|
|
| 1.19% |
Ba3 | 10.77% |
|
| Ba2 |
|
|
| 1.16% |
Ba2 | 4.53% |
|
| Ba3 |
|
|
| 0.71% |
Short-Term Investment | 4.05% |
|
| Caa2 |
|
|
| 0.46% |
NR | 4.01% |
|
| B2e |
|
|
| 0.22% |
Caa1 | 3.12% |
|
| Total |
|
|
| 100.00% |
|
|
|
|
|
|
|
|
|
* Based on total value of investments as of April 30, 2013. |
|
|
|
|
|
|
| |
Percentage may differ from Schedule of Investments which is based on Fund net assets. |
See accompanying notes to financial statements.
Dunham Loss Averse Equity Income Fund
Message from the Sub-Adviser (PVG Asset Management Corp.)
Long/short investment strategies, as measured by the IQ Long/Short Equity Beta Index, increased 4.5 percent during the six-month period ending April 30, 2013. This was significantly lower than most U.S. long equity indexes such as the Wilshire 5000 Total Market Index, which rose 14.2 percent during the same time period. It would appear that many long/short strategies kept themselves hedged as there was a fair amount of uncertainty this period despite the large run-up in stocks.
The Fund increased its exposure to financial services stocks during the fiscal year, believing the stocks may add value as economic fundamentals continued to improve. More specifically, within the financial services sector, the Sub-Adviser was bullish on business development companies, a form of publicly traded private equity that invests in small upcoming businesses. The Sub-Adviser believes these firms are poised for growth as the Dodd-Frank legislation has an increasing effect on banks and their ability to take risk. One such business development company, Prospect Capital Corporation (PSEC), gained nearly 40 percent in the 12-month period ending October 31, 2012.
Currently, the Fund is approximately 78 percent invested with 22 percent in cash as it is anticipating a correction in the stock market sometime in the late spring or early summer. Of the invested portion, approximately 65 percent is long the stock market and roughly 18 percent is invested in double inverse ETFs, securities that short the S&P 500 index and through leverage attempt produce two times the index return whether the index is positive or negative. The Fund is yielding about 4.5 percent as well through high dividend paying stocks, mortgage REITs and business development companies.
Business development companies, a form of publicly traded private equity that invests in small upcoming businesses, outperformed the benchmark by a large margin despite pulling back in the later part of the period. The Sub-Adviser believes these firms are poised for growth as banks continue to have relatively tight lending standards and maintain conservative loan portfolios. TICC Capital Corporation, a business development company that invests in both public and private firms, had a total return of nearly 10 percent in the six-month period ending April 30, 2013.
The mortgage REIT sector also benefited the Fund, though the Sub-Adviser has been trimming these positions in recent months in the belief that these securities have become overvalued. Anworth Mortgage Asset Corporation (ANH), one such REIT that primarily invests in United States agency mortgage-backed securities that are guaranteed by the U.S. government, increased by more than 8 percent during the six-month period ending April 30, 2013.
The Fund continues to devote a significant portion of the portfolio to blue chip stocks that pay high dividends. Recently, the Sub-Adviser has been reducing the weight toward healthcare, utilities and healthcare stocks that have rallied in recent quarters. The plan is to rotate into sectors that have underperformed, such as technology, energy, and to some extent, materials. About a third of its position in Merck & Co., Inc. (MRK), a major drug manufacturer, was sold in April as it reached 52-week highs. Continued reduction is planned as the healthcare sector reaches frothy levels. The Fund also sold nearly half of its holdings in AT&T, Inc. (T), a telecommunications provider, which is currently near a multi-year high. The stock rose more than 13 percent in the six-month period ending April 30, 2013.
So far, increased exposure to technology has had a positive effect, while energy and materials have lagged. Microsoft Corporation (MSFT), an application software firm, gained more than 21 percent since purchased in late November. Intel Corporation (INTC), a computer chip maker, has gained more than 11 percent since it was bought in mid-February. Newmont Mining Corporation (NEM), however, a gold mining company in the materials sector, lost 16 percent since initially purchased in April. Energy stocks did not fair as poorly for the Fund as materials but still detracted somewhat compared to the benchmark index. Pengrowth Energy Corporation (PGH), a Canadian oil and gas driller, gained less than 1 percent since early March when it was bought by the Fund.
Going forward, the Fund will maintain a defensive position as it waits for a correction in the stock market. The Sub-Adviser believes earnings and revenue growth have topped out and the U.S. is nearing the end of a cycle that began as the recovery took hold four years ago. Lingering European debt and high stock valuations overall remain a large concern.
Growth of $10,000 Investment - (Unaudited)
Total Returns as of April 30, 2013
| Six Months | One Year | Annualized Three Years | Annualized Five Years | Annualized Since Inception (4/30/2010) |
Class N | 3.93% | 3.86% | 3.04% | N/A | 3.04% |
Class C Class A with load of 5.75% Class A without load | 3.36% (2.17)% 3.81% | 2.78% (2.35)% 3.61% | 2.04% 0.76% 2.76% | N/A N/A N/A | 2.04% 0.76% 2.76% |
Morningstar Long/Short Equity Category | 6.12% | 5.13% | 3.09% | N/A | 3.09% |
IQ Hedge Long/Short Beta Index | 4.45% | 8.37% | 6.23% | N/A | 6.23% |
The Morningstar Long-Short Equity Category is generally representative of mutual funds that primarily invest in both long and short positions in equities and related derivatives.
The IQ Hedge Long/Short Beta Index attempts to replicate the risk-adjusted return characteristics of the collective hedge funds using a long/short equity investment style.
As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including underlying funds, are 1.59% for Class N, 2.59% for Class C and 1.84% for Class A. The performance data quoted here represents past performance, which is not indicative of future results. Current performance may be lower or higher than the performance data quoted. The investment return and NAV will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Total returns are calculated assuming reinvestment of all dividends and capital gains distributions, if any. The returns do not reflect the deductions of taxes a shareholder would pay on the redemption of fund shares or fund distributions. For performance information current to the most recent month-end, please call 1-800-442-4358 or visit our website www.dunham.com
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |||
Dunham Loss Averse Equity Income Fund |
|
|
|
|
|
|
|
| ||
April 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
| Shares |
| Value |
| Security |
| Shares |
| Value |
COMMON STOCK - 63.7 % |
|
|
|
|
| REITS - 18.0 % |
|
|
|
|
AUTO MANUFACTURERS - 1.1 % |
|
|
|
| American Capital Mortgage Investment Corp | 8,000 |
| $ 212,480 | ||
Ford Motor Co. |
| 10,000 |
| $ 137,100 |
| Anworth Mortgage Asset Corp | 50,000 |
| 315,500 | |
|
|
|
|
|
| ARMOUR Residential REIT, Inc. | 48,000 |
| 311,520 | |
BANKS - 2.6 % |
|
|
|
|
| CYS Investments, Inc. | 31,500 |
| 391,545 | |
JPMorgan Chase & Co. |
| 4,000 |
| 196,040 |
| Dynex Capital, Inc | 27,000 |
| 290,250 | |
Wells Fargo & Co |
| 3,500 |
| 132,930 |
| Gladstone Commercial Corp. | 2,000 |
| 38,280 | |
|
|
|
| 328,970 |
| Hospitality Properties Trust | 4,600 |
| 135,286 | |
DIVERSIFIED FINANCIAL SERVICES - 1.1 % |
|
|
|
|
| New York Mortgage Trust, Inc. | 27,500 |
| 196,350 | |
Arlington Asset Investment Corp |
| 5,000 |
| 135,450 |
| Silver Bay Realty Trust Corp | 488 |
| 9,316 | |
|
|
|
|
|
| Two Harbors Investment Corp | 20,000 |
| 239,600 | |
ENVIRONMENTAL CONTROL - 1.1 % |
|
|
|
|
| Whitestone REIT | 7,524 |
| 124,146 | |
Waste Management, Inc. |
| 3,200 |
| 131,136 |
|
|
|
|
| 2,264,273 |
|
|
|
|
|
| RETAIL - 1.1 % |
|
|
|
|
FOOD - 1.1 % |
|
|
|
|
| Kohl's Corp. |
| 3,000 |
| 141,180 |
Safeway, Inc. |
| 6,000 |
| 135,120 |
|
|
|
|
|
|
|
|
|
|
|
| SEMICONDUCTORS - 6.7 % |
|
|
| |
INVESTMENT COMPANIES - 10.1 % |
|
|
|
| Cypress Semiconductor Corp. | 19,500 |
| 196,755 | ||
Apollo Investment Corp. |
| 36,600 |
| 322,446 |
| Intersil Corp. - Cl. A | 8,000 |
| 191,600 | |
BlackRock Kelso Capital Corp. | 19,000 |
| 189,050 |
| Intersil Corp |
| 15,000 |
| 116,400 | |
Fifth Street Finance Corp. |
| 1,200 |
| 13,248 |
| KLA-Tencor Corp | 3,800 |
| 206,150 | |
Prospect Capital Corp. |
| 33,000 |
| 363,990 |
| Marvell Technology Group Ltd. | 12,000 |
| 129,120 | |
TICC Capital Corp. |
| 36,000 |
| 366,120 |
|
|
|
|
| 840,025 |
|
|
|
| 1,254,854 |
| SOFTWARE - 1.2 % |
|
|
| |
MINING - 1.4 % |
|
|
|
|
| Microsoft Corp |
| 4,500 |
| 148,950 |
Newmont Mining Corp |
| 5,500 |
| 178,200 |
|
|
|
|
|
|
|
|
|
|
|
| TELECOMMUNICATIONS - 5.3 % |
|
|
| |
MISCELLANEOUS MANUFACTURING - 2.1 % |
|
|
|
| AT&T Inc |
| 3,600 |
| 134,856 | |
General Electric Co. |
| 12,000 |
| 267,480 |
| CenturyLink Inc |
| 7,000 |
| 262,990 |
|
|
|
|
|
| Cisco Systems Inc | 6,000 |
| 125,520 | |
OIL & GAS - 3.8 % |
|
|
|
|
| Telefonica SA - ADR | 5,000 |
| 132,900 | |
Pengrowth Energy Corp |
| 27,000 |
| 136,620 |
|
|
|
|
| 656,266 |
Royal Dutch Shell PLC - ADR |
| 3,000 |
| 209,370 |
| WATER - 1.0 % |
|
|
|
|
Transocean Ltd * |
| 2,600 |
| 133,822 |
| California Water Service Group | 6,500 |
| 130,325 | |
|
|
|
| 479,812 |
|
|
|
|
|
|
PHARMACEUTICALS - 3.7 % |
|
|
|
| TOTAL COMMON STOCK (Cost - $7,438,516) |
|
| 7,963,939 | ||
Cardinal Health Inc. |
| 4,500 |
| 198,990 |
|
|
|
|
|
|
Johnson & Johnson |
| 1,600 |
| 136,368 |
| EXCHANGE TRADED FUNDS - 19.7 % |
|
|
| |
Merck & Co., Inc. |
| 2,800 |
| 131,600 |
| EQUITY FUNDS - 19.7 % |
|
|
| |
|
|
|
| 466,958 |
| ProShares UltraShort S&P500 * | 54,800 |
| 2,308,176 | |
PRIVATE EQUITY - 2.2 % |
|
|
|
| SPDR S&P International Dividend | 3,000 |
| 150,390 | ||
Gladstone Investment Corp. |
| 36,000 |
| 267,840 |
| TOTAL EXCHANGE TRADED FUNDS (Cost - $2,849,428) |
| 2,458,566 | ||
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
| |||
Dunham Loss Averse Equity Income Fund (Continued) |
|
|
| |||||||
April 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Value |
|
|
|
|
|
|
TOTAL INVESTMENTS - 83.4 % (Cost - $10,287,944) |
| $ 10,422,505 |
|
|
|
|
|
| ||
OTHER ASSETS LESS LIABILITIES - 16.6 % |
|
| 2,067,925 |
|
|
|
|
|
| |
NET ASSETS - 100.0% |
|
|
| $ 12,490,430 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Non-income producing security. |
|
|
|
|
|
|
|
|
| |
ADR - American Depositary Receipt. |
|
|
|
|
|
|
|
|
| |
REIT - Real Estate Investment Trust. |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio Composition * - (Unaudited) | ||||||||||
Financial |
| 40.79% |
|
|
| Energy |
| 4.60% |
|
|
Exchange Traded Funds |
| 23.59% |
|
|
| Industrial |
| 3.82% |
|
|
Technology |
| 9.49% |
|
|
| Consumer, Cyclical | 2.67% |
|
| |
Communications |
| 6.30% |
|
|
| Basic Materials |
| 1.71% |
|
|
Consumer, Non-Cyclical |
| 5.78% |
|
|
| Utilities |
| 1.25% |
|
|
|
|
|
|
|
| Total |
| 100.00% |
|
|
* Based on total value of investments as of April 30, 2013. |
|
|
|
|
|
|
|
| ||
Percentage may differ from Schedule of Investments which is based on Fund net assets. |
|
|
See accompanying notes to financial statements.
Dunham Appreciation & Income Fund
Message from the Sub-Adviser (Calamos Advisors, LLC)
Convertible securities, as measured by the Merrill Lynch Convertibles ex Mandatory Index, rose 12.7 percent in the six-month period ending April 30, 2013. Convertibles underperformed broader markets like the S&P 500, which increased 14.4 percent over the same period. Total convertible market assets and new issues remained low as issuance costs made it seem relatively unattractive for most firms to issue convertible bonds. The Sub-Adviser noted that new issuance of convertibles has improved somewhat but most have been below investment-grade quality, which Fund tends to avoid due to the Sub-Adviser’s process. Approximately 40 percent of the entire convertible market is comprised of unrated and CCC or lower convertible bonds that the Fund will not purchase. The Fund ended April with approximately 48 percent convertible bonds, 48 percent stocks and 4 percent cash. The Sub-Adviser plans to maintain that composition for the foreseeable future due to fewer opportunities in the shrinking convertible market.
Speculative grade convertibles outperformed investment grade convertibles by only a small margin in the six- month period ending April 30, 2013, despite strong equity performance and better-than-expected domestic economic data for much of the period. The Sub-Adviser expects that spread to remain tight unless there is more quantitative easing from the Federal Reserve or fiscal stimulus from the government.
The Sub-Adviser added to the energy sector during the time period studied, moving from an equal weight position at the beginning of the period to a more than 4 percent overweight relative to the benchmark. The overweight had little effect on the Fund as energy stocks outperformed by a wide margin in the first fiscal quarter then gave back nearly all of the gains in the second quarter. The Sub-Adviser intends to continue overweighting the sector in the belief that energy prices will remain high as many central banks around the world continue to ease monetary policy in an attempt to bolster their sluggish economies.
Exposure to the information technology sector was an overall positive for the Fund in the six-month period ending April 30, 2013, though it had detracted somewhat in the first three months of that time period. The Fund maintained a strong overweight to the sector, devoting nearly 40 percent of the Fund to such securities. The Sub-Adviser believes these firms to have better efficiency and more room for productivity gains than other sectors. Teradata Corporation (TDC), a diversified computer systems firm, gained 17 percent in the time period studied.
The financial services sector was a large contributor to performance, despite the fact that it was significantly underweighted. Security selection was crucial, as only 6 percent of the Fund was devoted to this sector, while the benchmark holds nearly 19 percent of its assets in financials. Mastercard Incorporated (MA), a transaction processing company, returned more than 30 percent in the six-month period ending April 30, 2013. Still, the Sub-Adviser notes that the Fund will remain strongly underweight in this space due to a lack of long-term clarity in the sector.
Going forward, the Sub-Adviser expects a mild recovery and modest economic growth in the U.S. It believes the U.S. economy may have good quarters, followed by weak ones and real U.S. gross domestic product growth around the 2 percent range until the debt reduction cycle plays out further around the world. While the U.S. consumer has reduced debt, consumer spending has exceeded income growth since mid-2011 and the rebuilding of net worth appears incomplete, according to the Sub-Adviser.
Growth of $10,000 Investment – (Unaudited)
Total Returns as of April 30, 2013
| Six Months | One Year | Annualized Three Years | Annualized Five Years | Annualized Since Inception (12/10/04) |
Class N | 6.54% | 5.94% | 6.99% | 4.35% | 5.31% |
Class C Class A with load of 5.75% Class A without load | 6.03% 0.29% 6.39% | 4.95% (0.45)% 5.68% | 5.97% 4.68% 6.76% | 3.31% 2.86% 4.08% | 4.28% 3.48%* 4.44%* |
Morningstar Moderate Allocation Category | 9.09% | 11.21% | 8.29% | 4.16% | 4.95% |
ML Conv. ex Mandatory Index | 12.69% | 15.09% | 9.41% | 6.89% | 6.18% |
*Class A commenced operations on January 3, 2007.
The Morningstar Moderate Allocation Category is generally representative of mutual funds that typically have 50% to 70% of assets in equities and the remainder in fixed income securities and cash.
The Merrill Lynch Convertibles ex Mandatory Index measures the performance of convertible securities of all corporate sectors with a par amount of $25 million or more and a maturity of at least one year and excludes preferred equity redemption stocks and converted securities. Investors cannot invest directly in an index or benchmark.
As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including the cost of underlying funds, are 1.61% for Class N, 2.61% for Class C and 1.86% for Class A. The performance data quoted here represents past performance, which is not indicative of future results. Current performance may be lower or higher than the performance data quoted. The investment return and NAV will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Total returns are calculated assuming reinvestment of all dividends and capital gains distributions, if any. The returns do not reflect the deductions of taxes a shareholder would pay on the redemption of fund shares or fund distributions. For performance information current to the most recent month-end, please call 1-800-442-4358 or visit our website www.dunham.com.
SCHEDULE OF INVESTMENTS (Unaudited) |
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Dunham Appreciation & Income Fund |
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April 30, 2013 |
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Security |
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| Shares |
| Value |
COMMON STOCK - 46.5 % |
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AGRICULTURE - 0.6 % |
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Philip Morris International, Inc. |
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| 1,800 |
| $ 172,062 |
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BANKS - 3.3 % |
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Goldman Sachs Group, Inc. |
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| 870 |
| 127,081 |
JPMorgan Chase & Co. |
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| 7,800 |
| 382,278 |
Wells Fargo & Co. |
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| 6,700 |
| 254,466 |
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| 763,825 |
BEVERAGES - 4.8 % |
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Cia de Bebidas das Americas - ADR |
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| 6,850 |
| 287,837 |
Coca-Cola Co. |
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| 19,500 |
| 825,435 |
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| 1,113,272 |
BIOTECHNOLOGY - 0.5 % |
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Celgene Corp. |
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| 915 |
| 108,034 |
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COMMERCIAL SERVICES - 1.4 % |
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Mastercard, Inc. - Cl. A |
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| 600 |
| 331,758 |
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COMPUTERS - 6.2 % |
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Accenture PLC - Cl. A |
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| 6,100 |
| 496,784 |
Apple, Inc. |
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| 1,700 |
| 752,675 |
Cognizant Technology Solutions Corp. - Cl. A |
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| 3,000 |
| 194,400 | |
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| 1,443,859 |
DIVERSIFIED FINANCIAL SERVICES - 3.2 % |
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Franklin Resources, Inc. |
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| 2,150 |
| 332,519 |
T Rowe Price Group, Inc. |
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| 5,650 |
| 409,625 |
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| 742,144 |
INTERNET - 3.8 % |
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Amazon.com, Inc. |
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| 1,900 |
| 482,239 |
eBay, Inc. |
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| 8,000 |
| 419,120 |
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| 901,359 |
MACHINERY-CONSTRUCTION & MINING - 1.0 % |
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Caterpillar, Inc. |
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| 2,675 |
| 226,492 |
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MISCELLANEOUS MANUFACTURING - 2.8 % |
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Dover Corp. |
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| 6,100 |
| 420,778 |
Eaton Corp. PLC |
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| 4,000 |
| 245,640 |
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| 666,418 |
OIL & GAS - 2.1 % |
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EOG Resources, Inc. |
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| 2,200 |
| 266,552 |
Occidental Petroleum Corp. |
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| 2,400 |
| 214,224 |
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| 480,776 |
OIL & GAS SERVICES - 3.0 % |
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National Oilwell Varco, Inc. |
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| 3,000 |
| 195,660 |
Schlumberger Ltd. |
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| 6,650 |
| 494,960 |
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| 690,620 |
PHARMACEUTICALS - 4.2 % |
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Johnson & Johnson |
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| 6,200 |
| 528,426 |
Novo Nordisk A/S - ADR |
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| 2,550 |
| 450,407 |
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| 978,833 |
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See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
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Dunham Appreciation & Income Fund (Continued) |
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April 30, 2013 |
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Security |
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| Value |
RETAIL - 2.6 % |
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Costco Wholesale Corp. |
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| 2,550 |
| $ 276,497 |
Home Depot, Inc. |
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| 2,500 |
| 183,375 |
Walgreen Co. |
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| 3,100 |
| 153,480 |
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| 613,352 |
SEMICONDUCTORS - 2.2 % |
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QUALCOMM, Inc. |
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| 8,400 |
| 517,608 |
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SOFTWARE - 3.8 % |
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Oracle Corp. |
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| 18,000 |
| 590,040 |
SAP AG - ADR |
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| 3,800 |
| 303,430 |
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| 893,470 |
TELECOMMUNICATIONS - 1.0 % |
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Cisco Systems, Inc. |
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| 11,000 |
| 230,120 |
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TOTAL COMMON STOCK (Cost - $8,894,181) |
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| 10,874,002 | |
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| Principal |
| Interest |
| Maturity |
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CONVERTIBLE BONDS - 37.1 % | Amount |
| Rate |
| Date |
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ADVERTISING - 1.1 % |
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Omnicom Group, Inc. |
| $215,000 |
| 0.0000% |
| 7/1/2038 |
| 256,655 |
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APPAREL - 1.4 % |
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Iconix Brand Group, Inc. - 144A | 280,000 |
| 1.5000 |
| 3/15/2018 |
| 319,550 | |
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BIOTECHNOLOGY - 2.5 % |
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Gilead Sciences, Inc. |
| 145,000 |
| 1.6250 |
| 5/1/2016 |
| 325,798 |
Medicines Co. - 144A |
| 190,000 |
| 1.3750 |
| 6/1/2017 |
| 260,300 |
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| 586,098 |
COMPUTERS - 4.0 % |
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EMC Corp |
| 310,000 |
| 1.7500 |
| 12/1/2013 |
| 436,908 |
SanDisk Corp. |
| 390,000 |
| 1.5000 |
| 8/15/2017 |
| 492,375 |
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| 929,283 |
DIVERSIFIED FINANCIAL SERVICES - 0.5 % |
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Walter Investment Management Corp. | 125,000 |
| 4.5000 |
| 11/1/2019 |
| 132,354 | |
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HEALTHCARE-PRODUCTS - 2.7 % |
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Hologic, Inc. |
| 435,000 |
| 2.0000+ |
| 12/15/2037 |
| 498,075 |
Insulet Corp. |
| 110,000 |
| 3.7500 |
| 6/15/2016 |
| 129,594 |
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| 627,669 |
HEALTHCARE-SERVICES - 1.7 % |
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Molina Healthcare, Inc. - 144A | 150,000 |
| 1.1250 |
| 1/15/2020 |
| 159,562 | |
WellPoint, Inc. - 144A |
| 200,000 |
| 2.7500 |
| 10/15/2042 |
| 239,500 |
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| 399,062 |
HOLDING COMPANIES-DIVERSIFIED - 0.5 % |
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Leucadia National Corp. |
| 85,000 |
| 3.7500 |
| 4/15/2014 |
| 123,569 |
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HOUSEHOLD PRODUCTS/WARES - 0.8 % |
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Jarden Corp. - 144A |
| 157,000 |
| 1.8750 |
| 9/15/2018 |
| 184,350 |
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INSURANCE - 0.6 % |
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Amtrust Financial Services, Inc. | 100,000 |
| 5.5000 |
| 12/15/2021 |
| 134,380 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
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Dunham Appreciation & Income Fund (Continued) |
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April 30, 2013 |
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| Principal |
| Interest |
| Maturity |
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Security |
| Amount |
| Rate |
| Date |
| Value |
INTERNET - 2.7 % |
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Priceline.com, Inc. |
| $330,000 |
| 1.0000% |
| 3/15/2018 |
| $ 377,025 |
Symantec Corp. |
| 197,000 |
| 1.0000 |
| 6/15/2013 |
| 250,066 |
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| 627,091 |
INVESTMENT COMPANIES - 1.5 % |
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Ares Capital Corp. |
| 310,000 |
| 5.7500 |
| 2/1/2016 |
| 340,892 |
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IRON/STEEL - 1.0 % |
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Steel Dynamics, Inc. |
| 220,000 |
| 5.1250 |
| 6/15/2014 |
| 244,338 |
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MACHINERY-DIVERSIFIED - 1.2 % |
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AGCO Corp. |
| 210,000 |
| 1.2500 |
| 12/15/2036 |
| 279,038 |
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MEDIA - 1.1 % |
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Liberty Interactive LLC - 144A |
| 250,000 |
| 0.7500 |
| 3/30/2043 |
| 258,705 |
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METAL FABRICATE/HARDWARE - 0.5 % |
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RTI International Metals, Inc. |
| 125,000 |
| 1.6250 |
| 10/15/2019 |
| 128,125 |
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MINING - 1.7 % |
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Newmont Mining Corp. |
| 380,000 |
| 1.2500 |
| 7/15/2014 |
| 399,238 |
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OIL & GAS SERVICES - 3.2 % |
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Helix Energy Solutions Group, Inc. | 320,000 |
| 3.2500 |
| 3/15/2032 |
| 402,074 | |
Hornbeck Offshore Services, Inc. | 320,000 |
| 1.6250+ |
| 11/15/2026 |
| 336,800 | |
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| 738,874 |
PHARMACEUTICALS - 2.4 % |
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Pacira Pharmaceuticals, Inc. - 144A | 150,000 |
| 3.2500 |
| 2/1/2019 |
| 205,465 | |
Salix Pharmaceuticals Ltd. |
| 325,000 |
| 1.5000 |
| 3/15/2019 |
| 353,438 |
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| 558,903 |
SEMICONDUCTORS - 2.2 % |
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Lam Research Corp. |
| 190,000 |
| 1.2500 |
| 5/15/2018 |
| 217,550 |
Linear Technology Corp. |
| 285,000 |
| 3.0000 |
| 5/1/2027 |
| 302,680 |
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| 520,230 |
SOFTWARE - 2.9 % |
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Nuance Communications, Inc. | 180,000 |
| 2.7500 |
| 8/15/2027 |
| 218,362 | |
Salesforce.com, Inc. - 144A |
| 285,000 |
| 0.2500 |
| 4/1/2018 |
| 283,931 |
Take-Two Interactive Software, Inc. | 155,000 |
| 1.7500 |
| 12/1/2016 |
| 173,697 | |
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| 675,990 |
TELECOMMUNICATIONS - 0.9 % |
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Ixia |
| 180,000 |
| 3.0000 |
| 12/15/2015 |
| 210,038 |
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TOTAL CONVERTIBLE BONDS (Cost - $8,217,489) |
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| 8,674,432 | |
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| Dividend |
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| Shares |
| Rate |
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PREFERRED STOCK - 12.8% |
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AEROSPACE/DEFENSE - 3.0% |
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United Technologies Corp. |
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| 12,000 |
| 7.500% |
| 709,680 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
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Dunham Appreciation & Income Fund (Continued) |
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April 30, 2013 |
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| Dividend |
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Security |
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| Shares |
| Rate |
| Value |
BANKS - 2.8% |
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Fifth Third Bancorp |
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| 2,325 |
| 8.5000% |
| $ 343,495 |
Wells Fargo & Co. |
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| 230 |
| 7.5000 |
| 303,543 |
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| 647,038 |
DIVERSIFIED FINANCIAL SERVICES - 1.2% |
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AMG Capital Trust II |
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| 5,500 |
| 5.1500 |
| 295,282 |
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ELECTRIC - 1.4 % |
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NextEra Energy, Inc. |
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| 5,500 |
| 5.8890 |
| 317,570 |
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INSURANCE - 1.4 % |
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MetLife, Inc. |
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| 6,400 |
| 5.0000 |
| 320,960 |
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OIL & GAS - 2.2% |
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Chesapeake Energy Corp. - 144A |
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| 250 |
| 5.7500 |
| 251,406 | |
Chesapeake Energy Corp. - 144A |
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| 260 |
| 5.7500 |
| 262,925 | |
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| 514,331 |
TRANSPORTATION - 0.8 % |
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Genesee & Wyoming, Inc. |
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| 1,587 |
| 5.0000 |
| 192,027 |
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TOTAL PREFERRED STOCK (Cost - $2,660,308) |
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| 2,996,888 | ||
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SHORT-TERM INVESTMENT - 1.7 % |
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| Interest |
|
| |
MONEY MARKET FUND - 1.7 % |
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|
|
| Rate |
|
| |
Fidelity Institutional Money Market Fund - Prime Money Market Portfolio |
| 395,615 |
| 0.04%+ |
| 395,615 | ||
TOTAL SHORT-TERM INVESTMENT (Cost - $395,615) |
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TOTAL INVESTMENTS - 98.1 % (Cost - $20,167,593) |
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|
|
| $ 22,940,937 | ||
OTHER ASSETS LESS LIABILITIES - 1.9 % |
|
|
|
|
| 442,469 | ||
TOTAL NET ASSETS - 100.0 % |
|
|
|
|
| $ 23,383,406 | ||
|
|
|
|
|
|
|
|
|
*Non-income producing security. |
|
|
|
|
|
|
| |
+ Variable rate security. Interest rate is as of April 30, 2013. |
|
|
|
|
|
|
| |
ADR - American Depositary Receipt. |
|
|
|
|
|
|
| |
144A- Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. | ||||||||
|
|
|
|
|
|
|
|
|
Portfolio Composition * - (Unaudited) |
|
|
|
| ||||
Common Stock |
|
|
| 47.40% |
|
|
|
|
Convertible Bonds |
|
|
| 37.81% |
|
|
|
|
Preferred Stock |
|
|
| 13.06% |
|
|
|
|
Short-Term Investment |
|
|
| 1.73% |
|
|
|
|
Total |
|
|
| 100.00% |
|
|
|
|
* Based on total value of investments as of April 30, 2013. |
|
|
|
|
|
|
| |
Percentage may differ from Schedule of Investments which are based on Fund net assets. |
See accompanying notes to financial statements.
Dunham Large Cap Value Fund
Message from the Sub-Adviser (C.S. McKee, L.P.)
Large cap value stocks, as measured by the Russell 1000 Value Index, rose 16.3 percent in the six-month period ending April 30, 2013. Strong returns in the financial services, industrials, and consumer discretionary sectors were mainly responsible for the Fund’s gains. Outsized returns in financial services stocks particularly enhanced performance, as they, by a wide margin, comprised the largest sector in the index and they rose 19.5 percent as measured by the Russell 1000 Value financial services index.
As with the overall benchmark index, financial stocks were the largest contributor to performance in the Fund. However, the contribution of the financial sector was negative for the Fund because the Fund was underweight in financial stocks. The Sub-Adviser still believes there are significant headwinds to be overcome in the banking industry and broader financial sector, and plans to maintain a significant underweight. Wells Fargo & Company (WFC), a large regional bank, was the largest contributor to performance in the sector for the Fund, returning 14.6 percent during the six-month period, underperforming the sector.
Despite seeing some significant gains in some securities, the energy sector detracted from performance somewhat as it lagged other sectors within the asset class. The Sub-Adviser was overweight the sector by more than 1 percent but trimmed that overweighting to the point where energy became an underweight. Chevron Corporation (CVX), an oil, gas and geothermal company, gained 12.5 percent during the six-month period ending April 30, 2013. Hess Corporation (HES), an integrated oil company, had a strong six-month period with the stock returning 38.6 percent.
The Fund saw significant underperformance in the consumer discretionary sector as Time Warner Cable, Inc (TWC), a cable telecommunications company, dropped by more than 4.0 percent for the six-month period. On the other hand, another consumer discretionary holding, CBS Corporation (CBS), a mass media corporation, rose 42.1 percent for the same six-month period.
The industrials sector was a significant overweight for the Fund, though the overweighting did not contribute much to the performance of the Fund due to some underperforming stocks within the sector. The Fund’s largest holding by market value, General Electric (GE), a multinational conglomerate, rose just 7.7 percent for the six-month period, trailing the index and detracting from the Fund’s performance. The Sub-Adviser will continue to overweight the sector by approximately 4 percent in the belief that manufacturing will continue to steer the economic recovery.
The Fund’s performance was enhanced by positions in the utilities sector, an area that had a relatively small absolute weighting but a reasonably large impact. Both holdings in the sector did quite well and contributed positively to the Fund’s performance for the quarter. Public Service Enterprise Group, Inc. (PEG), a New Jersey-based electric utility, gained 16.8 percent for the six-month period to outgain the index. NextEra Energy (NEE), a Florida-based electric utility, was the best performer in the sector, returning 19.2 percent in the six-month period ending April 30, 2013. The Sub-Adviser plans to move closer to an equal weight over next few months after underweighting the sector by approximately 2 percent in the last several quarters.
Going forward, no material changes are planned for the Fund. The Sub-Adviser believes energy prices may have peaked and sees no threat of domestic recession. The Sub-Adviser also believes U.S. equities should see continued earnings growth in the coming quarters and gross domestic product growth in the 2.5 to 3.0 percent annualized range.
Growth of $10,000 Investment - (Unaudited)
Total Returns as of April 30, 2013
| Six Months | One Year | Annualized Three Years | Annualized Five Years | Annualized Since Inception (12/10/04) |
Class N | 12.21% | 15.36% | 10.16% | 2.61% | 4.63% |
Class C Class A with load of 5.75% Class A without load | 11.67% 5.59% 12.08% | 14.19% 8.38% 15.02% | 9.06% 7.75% 9.91% | 1.60% 1.18% 2.38% | 3.60% 1.03%* 1.97%* |
Morningstar Large Cap Value Category | 15.19% | 18.01% | 10.93% | 3.74% | 4.77% |
Russell 1000 Value Index | 16.31% | 21.80% | 12.35% | 4.17% | 2.59% |
*Class A commenced operations on January 3, 2007.
The Morningstar Large Value Category is generally representative of mutual funds that primarily invest in big (large capitalization) U.S. companies that are less expensive or growing more slowly than other large-cap stocks.
The Russell 1000 Value Index measures the performance of the 1,000 largest companies in the Russell 3000 Index with lower price-to-book ratios and lower forecasted growth values. Investors cannot invest directly in an index or benchmark.
As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including underlying funds, are 1.17% for Class N, 2.17% for Class C and 1.42% for Class A. The performance data quoted here represents past performance, which is not indicative of future results. Current performance may be lower or higher than the performance data quoted. The investment return and NAV will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Total returns are calculated assuming reinvestment of all dividends and capital gains distributions, if any. The returns do not reflect the deductions of taxes a shareholder would pay on the redemption of fund shares or fund distributions. For performance information current to the most recent month-end, please call 1-800-442-4358 or visit our website www.dunham.com.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
| ||||||
Dunham Large Cap Value Fund |
|
|
|
|
|
|
|
| ||
April 30, 2013 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Security |
| Shares |
| Value |
| Security |
| Shares |
| Value |
COMMON STOCK - 99.0 % |
|
|
|
|
|
|
|
|
|
|
AEROSPACE/DEFENSE - 4.6 % |
|
|
|
| MACHINERY - 2.1 % |
|
|
|
| |
Honeywell International, Inc. |
| 13,472 |
| $ 990,731 |
| Deer & Co. |
| 10,100 |
| $ 901,930 |
United Technologies Corp. |
| 10,416 |
| 950,877 |
|
|
|
|
|
|
|
|
|
| 1,941,608 |
| MEDIA - 3.7 % |
|
|
|
|
AUTO & TRUCK PARTS - 1.6 % |
|
|
|
| CBS Corp. Cl. B Non Voting | 16,300 |
| 746,214 | ||
BorgWarner, Inc. * |
| 8,700 |
| 680,079 |
| Time Warner Cable, Inc. - Cl. A | 8,700 |
| 816,843 | |
|
|
|
|
|
|
|
|
|
| 1,563,057 |
BANKS - 12.1 % |
|
|
|
|
| MEDICAL - 4.2 % |
|
|
|
|
Bank of New York Mellon Corp. |
| 27,600 |
| 778,872 |
| Baxter International, Inc. |
| 16,700 |
| 1,166,829 |
Goldman Sachs Group, Inc. |
| 5,500 |
| 803,385 |
| Laboratory Corp. of America Holdings * | 6,702 |
| 625,699 | |
JPMorgan Chase & Co. |
| 25,702 |
| 1,259,655 |
|
|
|
|
| 1,792,528 |
US Bancorp |
| 20,007 |
| 665,833 |
| MINING - 2.1 % |
|
|
|
|
Wells Fargo & Co. |
| 43,600 |
| 1,655,928 |
| Freeport-McMoRan Copper & Gold, Inc. | 29,500 |
| 897,685 | |
|
|
|
| 5,163,673 |
|
|
|
|
|
|
BEVERAGES - 1.5 % |
|
|
|
|
| OIL & GAS - 13.2 % |
|
|
|
|
Beam, Inc. |
| 9,867 |
| 638,494 |
| Apache Corp. |
| 10,532 |
| 778,104 |
|
|
|
|
|
| Chevron Corp. |
| 13,900 |
| 1,695,939 |
CHEMICALS - 1.4 % |
|
|
|
|
| ConocoPhillips |
| 13,396 |
| 809,788 |
Mosaic Co. |
| 9,800 |
| 603,582 |
| Hess Corp. |
| 17,200 |
| 1,241,496 |
|
|
|
|
|
| Occidental Petroleum Corp. | 12,200 |
| 1,088,972 | |
COMPUTERS - 4.7 % |
|
|
|
|
|
|
|
|
| 5,614,299 |
Apple Inc |
| 1,300 |
| 575,575 |
| OIL & GAS SERVICES - 2.0 % |
|
|
| |
EMC Corp. * |
| 28,900 |
| 648,227 |
| Halliburton Co. |
| 19,800 |
| 846,846 |
SanDisk Corp. * |
| 14,700 |
| 770,868 |
|
|
|
|
|
|
|
|
|
| 1,994,670 |
| PHARMACEUTICALS - 7.4 % |
|
|
| |
CONGLOMERATES - 6.7 % |
|
|
|
|
| Actavis, Inc * |
| 9,200 |
| 972,716 |
Dover Corp. |
| 16,000 |
| 1,103,680 |
| AmerisourceBergen Corp. |
| 25,400 |
| 1,374,648 |
General Electric Co. |
| 77,527 |
| 1,728,077 |
| Express Scripts Holdings Co. * | 13,500 |
| 801,495 | |
|
|
|
| 2,831,757 |
|
|
|
|
| 3,148,859 |
COSMETICS/PERSONAL CARE - 1.9 % |
|
|
|
| RETAIL - 4.3 % |
|
|
|
| |
Procter & Gamble Co. |
| 10,400 |
| 798,408 |
| Kohl's Corp. |
| 10,300 |
| 484,718 |
|
|
|
|
|
| Wal-Mart Stores, Inc. |
| 17,500 |
| 1,360,100 |
DIVERSIFIED FINANCIAL SERVICES - 2.6 % |
|
|
|
|
|
|
|
| 1,844,818 | |
American Express Co. |
| 16,200 |
| 1,108,242 |
| SEMICONDUCTORS - 1.7 % |
|
|
| |
|
|
|
|
|
| Intel Corp. |
| 30,328 |
| 726,355 |
ELECTRIC - 2.5 % |
|
|
|
|
|
|
|
|
|
|
NextEra Energy, Inc. |
| 12,936 |
| 1,061,140 |
| SOFTWARE - 3.5 % |
|
|
|
|
|
|
|
|
|
| Microsoft Corp. |
| 24,400 |
| 807,640 |
ELECTRIC UTILITIES - 2.1 % |
|
|
|
|
| Oracle Corp. |
| 21,300 |
| 698,214 |
Public Service Enterprise Group, Inc. | 24,500 |
| 896,945 |
|
|
|
|
| 1,505,854 | |
|
|
|
|
|
| TELEPHONE - INTERGRATED - 3.3 % |
|
|
| |
ELECTRONICS - 1.4% |
|
|
|
|
| AT&T, Inc. |
| 37,845 |
| 1,417,674 |
Agilent Technologies |
| 15,000 |
| 621,600 |
|
|
|
|
|
|
|
|
|
|
|
| TOBACCO - 1.8 % |
|
|
|
|
INSURANCE - 4.3 % |
|
|
|
|
| Philip Morris International, Inc. | 8,195 |
| 783,360 | |
Allstate Corp. |
| 16,732 |
| 824,218 |
|
|
|
|
|
|
American International Group, Inc * | 21,400 |
| 886,388 |
| TOTAL COMMON STOCK (Cost - $27,530,654) |
| 42,063,284 | |||
|
|
|
| 1,710,606 |
|
|
|
|
|
|
INTERNET - 2.3 % |
|
|
|
|
|
|
|
|
|
|
eBay, Inc. * |
| 18,500 |
| 969,215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
| ||||||
Dunham Large Cap Value Fund (Continued) |
|
|
|
|
|
| ||||
April 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
| Shares |
| Value |
|
|
|
|
|
|
SHORT-TERM INVESTMENT - 0.9 % |
|
|
|
|
|
|
|
|
| |
MONEY MARKET FUND - 0.9 % |
|
|
|
|
|
|
|
|
| |
STIT-STIC Prime Portfolio - 0.09% + |
|
|
|
|
|
|
|
|
| |
(Cost - $373,475) |
| 373,475 |
| $ 373,475 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL INVESTMENTS - 99.9 % (Cost - $27,904,129) |
| $ 42,436,759 |
|
|
|
|
|
| ||
OTHER ASSETS LESS LIABILITIES - 0.1 % |
|
| 36,135 |
|
|
|
|
|
| |
NET ASSETS - 100.0% |
|
|
| $ 42,472,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Non-income producing security. |
|
|
|
|
|
|
|
|
| |
+ Variable rate security. Interest rate is as of April 30, 2013. |
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
Portfolio Composition * - (Unaudited) | ||||||||||
Financial |
| 18.81% |
|
|
|
| Communications |
|
| 9.31% |
Consumer Non-Cyclical |
| 16.88% |
|
|
|
| Consumer Cyclical |
| 5.95% | |
Energy |
| 15.23% |
|
|
|
| Utilities |
|
| 4.60% |
Industrial |
| 14.84% |
|
|
|
| Basic Materials |
|
| 3.54% |
Technology |
| 9.96% |
|
|
|
| Short-Term Investment |
| 0.88% | |
|
|
|
|
|
|
| Total |
|
| 100.00% |
* Based on total value of investments as of April 30, 2013. |
|
|
|
|
|
|
|
| ||
Percentage may differ from Schedule of Investments which are based on Fund net assets. |
|
|
|
|
|
See accompanying notes to financial statements.
Dunham Alternative Income Fund
Message from the Sub-Adviser (Harbor Springs Financial Management LLC)
Dividend paying stocks, as measured by the Dow Jones US Select Dividend Index gained 15.4 percent in the six-month period ending April 30, 2013. Some of the top performing sectors in the Fund were utilities, telecommunications and master limited partnerships. A large position in bonds detracted from performance as most U.S. stock indexes outperformed bonds by a wide margin.
To achieve the dividend yield the Fund seeks, it currently invests approximately 24 percent in master limited partnerships, 15 percent in energy management firms, 16 percent in bonds, 10 percent in high yielding international stocks, 9 percent in utilities, 4 percent in REITs and 12 percent in more traditional stocks, such as tobacco, technology and telecommunications. The bonds are being held as a substitute for cash as the yield on money market funds is nearly zero. The Sub-Adviser plans to liquidate bonds and invest the proceeds in equities as opportunities present themselves. However, most sectors appear to be priced for perfection at the moment.
The Fund is increasing exposure to companies that engage in some form of natural gas production or transportation. The Sub-Adviser believes that natural gas is poised to have a major breakthrough in the near future as a shift to natural gas use in long-haul trucking, utilities and some municipal transit takes hold. Currently, there is a backlog in orders for long-haul truck engines that burn natural gas as about 1 million such engines were ordered in the previous year. As well, there has been an increase in fuel stations that sell natural gas along trucking routes. It is expected that natural gas pipeline partnerships will increase in value as the demand for natural gas rises despite a glut in supply.
Investments in master limited partnerships enhanced performance despite a relatively large decline in late March, due, mainly to a drop in oil prices. El Paso Pipeline Partners LP (EPB), an oil and gas pipeline partnership, increased by more than 27 percent in the six-month period ending April 30, 2013. The Fund plans to maintain the current allocation toward the sector because of what it considers to be attractive prices and yields.
Holdings in the more traditional stocks were mostly beneficial, according to the Sub-Adviser. The telecommunications sector had an overall positive effect on the Fund as both selection and an overweight to the benchmark produced alpha. Verizon Communications, Inc. (VZ), a large wireless communications provider, gained more than 25 percent in the period studied. Stocks held in the technology sector were neutral, neither detracting nor adding to performance. This was mainly due to a large position in Intel Corporation (INTC), a semi-conductor firm that nearly matched the index return of 15.4 percent. Intel is the largest holding in the Fund and pays a dividend of nearly 4 percent. At a little more than 4 percent of the Fund, the position will need to be trimmed if the price continues to appreciate. The consumer staples sector detracted slightly as the main holding in Philip Morris International, Inc. (PM), a large tobacco company, only increased 11 percent during the period.
Exposure to the utilities sector detracted slightly from performance during the six-month period ending April 30, 2013, mainly due to selection. Exelon Corporation (EXC), the largest provider of nuclear power in the United States, had a total return of more than 11 percent over the fiscal quarter, somewhat lower than the overall index. National Grid PLC ADR (NGG), a British electric and gas utility, was one of the better performing utility stocks held, rising more than 16 percent during the same time period. The Fund had added significantly to the position in early March and bought the original shares in September 2012.
Going forward, the Sub-Adviser sees stable growth due to energy build outs as cheap natural gas prices spur the transition of trucks and buses to natural gas and is likely to spill over to other industries as this happens. However, with high valuations and many indexes hitting records, a moderate correction in the coming months is a distinct possibility. The Fund will maintain its relatively large bond position until prices look more attractive.
Growth of $10,000 Investment – (Unaudited)
Total Returns as of April 30, 2013
|
| Six Months |
| Since Inception (9/14/12) |
Class N |
| 9.82% |
| 6.85% |
Class C Class A with load of 5.75% Class A without load |
| 9.29% 3.45% 9.72% |
| 6.23% 0.62% 6.76% |
Morningstar Large Cap Value Category |
| 15.19% |
| 12.28% |
Dow Jones US Select Dividend Index |
| 15.37% |
| 15.20% |
The Morningstar Large Cap Value Category is generally representative of mutual funds that primarily invest in big (large capitalization) U.S. companies that are less expensive or growing more slowly than other large-cap stocks.
The selection of stocks to the Dow Jones US Select Dividend Index is based almost entirely on dividend yield and dividend history. Stocks are also required to have and annual average daily dollar trading volume of more than $1.5 million. These criteria help to ensure that the index represents the most widely traded of the market’s highest-yielding stocks. This is a total return index. Investors cannot invest directly in an index or benchmark.
As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including underlying funds, are 1.49% for Class N, 2.49% for Class C and 1.74% for Class A. The performance data quoted here represents past performance, which is not indicative of future results. Current performance may be lower or higher than the performance data quoted. The investment return and NAV will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Total returns are calculated assuming reinvestment of all dividends and capital gains distributions, if any. The returns do not reflect the deductions of taxes a shareholder would pay on the redemption of fund shares or fund distributions. For performance information current to the most recent month-end, please call 1-800-442-4358 or visit our website www.dunham.com.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
| ||||
Dunham Alternative Income Fund |
|
|
|
|
| |||||
April 30, 2013 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Security |
| Shares |
| Value |
| Security |
| Shares |
| Value |
COMMON STOCK - 82.5 % |
|
|
|
|
|
|
|
|
|
|
AGRICULTURE - 7.9 % |
|
|
|
|
| PIPELINES - 31.7 % (CONTINUED) |
|
|
| |
Altria Group, Inc. |
| 1,900 |
| $ 69,369 |
| TC Pipelines LP |
| 500 |
| $ 23,500 |
Lorillard Inc. |
| 1,200 |
| 51,468 |
| TransCanada Corp. |
| 1,000 |
| 49,510 |
Philip Morris International, Inc. |
| 600 |
| 57,354 |
| Williams Cos Inc |
| 1,600 |
| 61,008 |
Reynolds American, Inc. |
| 1,700 |
| 80,614 |
| Williams Partners LP |
| 500 |
| 27,325 |
|
|
|
| 258,805 |
|
|
|
|
| 1,038,302 |
COMMERCIAL SERVICES - 2.7 % |
|
|
|
| REITS - 3.9 % |
|
|
|
| |
Macquarie Infrastructure Co. LLC | 1,500 |
| 87,420 |
| Highwoods Properties, Inc. |
| 1,000 |
| 41,030 | |
|
|
|
|
|
| Lexington Realty Trust |
| 2,000 |
| 25,620 |
ELECTRIC - 5.7 % |
|
|
|
|
| Mack-Cali Realty Corp. |
| 1,000 |
| 27,770 |
Dominion Resources, Inc.VA |
| 700 |
| 43,176 |
| Universal Health Realty Income Trust |
| 600 |
| 32,238 |
Exelon Corp. |
| 1,000 |
| 37,510 |
|
|
|
|
| 126,658 |
MDU Resources Group, Inc. |
| 2,000 |
| 49,900 |
| SEMICONDUCTORS - 6.6 % |
|
|
|
|
NextEra Energy, Inc. |
| 700 |
| 57,421 |
| Intel Corp. |
| 6,000 |
| 143,700 |
|
|
|
| 188,007 |
| Microchip Technology Inc. | 2,000 |
| 72,840 | |
GAS - 5.9 % |
|
|
|
|
|
|
|
|
| 216,540 |
Atmos Energy Corp. |
| 1,000 |
| 44,370 |
| TELECOMMUNICATIONS - 11.6 % |
|
|
|
|
National Grid PLC ADR |
| 1,400 | # | 89,292 |
| AT&T, Inc. |
| 1,900 |
| 71,174 |
NiSource, Inc. |
| 1,900 | # | 58,387 |
| CenturyLink Inc. |
| 2,200 |
| 82,654 |
|
|
|
| 192,049 |
| Frontier Communications Corp. | 15,000 |
| 62,400 | |
IRON/STEEL - 1.3 % |
|
|
|
|
| Verizon Communications, Inc. |
| 1,600 |
| 86,256 |
Mesabi Trust |
| 2,000 |
| 42,800 |
| Windstream Corp. |
| 9,000 |
| 76,680 |
|
|
|
|
|
|
|
|
|
| 379,164 |
OIL & GAS - 4.2 % |
|
|
|
|
| TRANSPORTATION - 1.0 % |
|
|
|
|
ConocoPhillips |
| 500 |
| 30,225 |
| Golar LNG Ltd. |
| 1,000 |
| 33,420 |
Linn Energy LLC |
| 800 |
| 30,888 |
|
|
|
|
|
|
Seadrill Ltd. |
| 2,000 |
| 76,980 |
| TOTAL COMMON STOCK (Cost - $2,485,389) |
|
| 2,701,258 | |
|
|
|
| 138,093 |
|
|
|
|
|
|
PIPELINES - 31.7 % |
|
|
|
|
| EXCHANGE-TRADED FUND - 15.5 % |
|
|
|
|
Atlas Pipeline Partners LP |
| 900 |
| 32,706 |
| DEBT FUNDS |
|
|
|
|
Boardwalk Pipeline Partners LP |
| 900 |
| 27,207 |
| iShares S&P National Municipal Bond Fund | 700 |
| 78,295 | |
Buckeye Partners LP |
| 1,000 |
| 61,780 |
| PIMCO Total Return ETF |
| 1,500 |
| 166,215 |
Crosstex Energy LP |
| 4,000 |
| 73,640 |
| PIMCO Intermediate Municipal Bond Exchange-Traded Fund | 2,200 |
| 120,406 | |
Crosstex Energy, Inc. |
| 1,000 |
| 18,090 |
| Templeton Global Income Fund | 15,000 |
| 142,500 | |
DCP Midstream Partners LP |
| 500 |
| 24,560 |
| TOTAL EXCHANGE TRADED FUND (Cost - $508,854) |
|
| 507,416 | |
El Paso Pipeline Partners LP |
| 1,100 |
| 47,124 |
|
|
|
|
|
|
Enbridge Energy Partners LP |
| 1,000 |
| 29,800 |
| SHORT-TERM INVESTMENT - 1.9 % |
|
|
| |
Energy Transfer Partners LP |
| 700 |
| 34,853 |
| MONEY MARKET FUND - 1.9 % |
|
|
| |
Enterprise Products Partners LP | 800 |
| 48,520 |
| Fidelity Institutional Money Market Funds - Money Market Portfolio 0.01% + |
|
| |||
Inergy Midstream LP |
| 1,000 |
| 25,390 |
| (Cost - $62,961) |
| 62,961 |
| 62,961 |
Kinder Morgan Energy Partners LP | 500 |
| 44,225 |
|
|
|
|
|
| |
Kinder Morgan Inc/DE |
| 1,000 |
| 39,100 |
| TOTAL INVESTMENTS - 99.9 % (Cost - $3,057,204) |
|
| $ 3,271,635 | |
Magellan Midstream Partners LP |
| 1,000 |
| 53,030 |
| OTHER ASSETS LESS LIABILITIES - 0.1 % |
|
| 3,566 | |
ONEOK, Inc. |
| 1,500 |
| 77,040 |
| NET ASSETS - 100.0% |
|
|
| $ 3,275,201 |
ONEOK Partners LP |
| 800 |
| 43,280 |
| ADR - American Depositary Receipt |
|
|
| |
Pembina Pipeline Corp. |
| 2,000 |
| 65,600 |
| REIT - Real Estate Investment Trust |
|
|
| |
Plains All American Pipeline LP |
| 1,200 |
| 68,904 |
| + Variable rate security. Interest rate is as of April 30, 2013. |
|
|
| |
Sunoco Logistics Partners LP |
| 1,000 |
| 62,110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio Composition * - (Unaudited) | ||||||||||
Energy |
| 35.96% |
|
|
|
| Technology |
|
| 6.62% |
Exchange Traded Funds |
| 15.51% |
|
|
|
| Financial |
|
| 3.87% |
Utilities |
| 11.62% |
|
|
|
| Short-Term Investment |
|
| 1.92% |
Communications |
| 11.59% |
|
|
|
| Basic Materials |
|
| 1.31% |
Consumer, Non-Cyclical |
| 10.58% |
|
|
|
| Industrial |
|
| 1.02% |
|
|
|
|
|
|
| Total |
|
| 100.00% |
* Based on total value of investments as of April 30, 2013. |
|
|
|
| ||||||
Percentage may differ from Schedule of Investments which are based on Fund net assets. |
|
|
|
|
See accompanying notes to financial statements.
Dunham Large Cap Growth Fund
Message from the Sub-Adviser (Mar Vista Investment Partners, LLC)
Large cap growth stocks closed the six-month period ending April 30, 2013 up 13.7 percent as measured by the Russell 1000 Growth Index, slightly underperforming broad equity markets, as measured by the Standard & Poor's 500 Index, which posted a gain of 14.4 percent. The growth in the large cap markets was generally consistent throughout the six-month period, with the index only having one month of flat returns in December and no months where the index lost ground. The month of January was especially strong for the index with it gaining 4.3 percent as investors flocked towards large cap stocks in an effort to take advantage of a bull market.
The Sub-Adviser believes that the global macroeconomic environment has numerous reasons to be pessimistic about it despite the strong market performance in 2013 so far. This is mainly due to high levels of debt, unemployment throughout the world and the continued pressure on companies to cut costs rather than increase revenue as a way to improve margins. In the opinion of the Sub-Adviser, there is a dark cloud hanging over the markets due to the many red flags showing up in Europe and Asia. However, the recent surge of the markets has been buoyed by a charge towards defensive and high-yield investments and the Sub-Adviser believes that there are opportunities in this environment. Impacting the global economy, China hit a rough patch in Q3 2012 has since recovered a bit, though the growth is still slowed from before. The Sub-Adviser feels that Brazil is moving away from strong growth mainly due to the perception of the move of Brazil from a developing market to a developed one.
In addition, the sequestration and payroll tax increase by the U.S. Government have finally begun to weigh in on the market’s future. The various central banks actions in printing money have also had a strong effect on the markets and there is little to no inflation pressure on the markets as a result. All of these reasons are why the Sub-Adviser is taking a risk-off position in the market as protection against volatility, favoring quality over anything else at this time.
The Sub-Adviser trimmed Apple Inc., (AAPL) a company which designs and sells consumer electronics, due to the rising competition and slowing of the growth within the Smartphone market. The company does remain strong, however, and that is why the Sub-Adviser sees potential for continued growth and did not exit the company completely. Holding onto AAPL detracted from the Fund’s performance for the six-month period with its value falling 24.8 percent. The Fund was also hurt by Exxon Mobil Corporation (XOM), a multinational oil and gas corporation, as the stock fell 1.1 percent for the six-month period despite remaining the world’s largest company by revenue. The Sub-Adviser also sold off all shares of Microsoft Inc., (MSFT) a multinational software corporation, due to its relatively weak position in the mobile and Smartphone markets.
The Sub-Adviser continues to view the market as having the potential for strong growth within equity investments. Looking forward, the Sub-Adviser believes that the markets still have significant potential to grow despite the relatively lackluster economic activity.
Growth of $10,000 Investment - (Unaudited)
Total Returns as of April 30, 2013
| Six Months | One Year | Annualized Three Years | Annualized Five Years | Annualized Since Inception(12/10/04) |
Class N | 13.01% | 14.39% | 10.38% | (0.50)% | 2.29% |
Class C Class A with load of 5.75% Class A without load | 12.21% 6.10% 12.55% | 13.39% 7.58% 14.22% | 9.28% 7.95% 10.09% | (1.51)% (1.95)% (0.80)% | 1.28% (0.17)%* 0.76%* |
Morningstar Large Cap Growth Category | 12.89% | 10.44% | 10.58% | 4.10% | 4.97% |
Russell 1000 Growth Index | 13.71% | 12.60% | 13.44% | 6.66% | 6.59% |
*Class A commenced operations on January 3, 2007.
The Morningstar Large Cap Growth Category is generally representative of mutual funds that primarily invest in big (large capitalization) U.S. companies that are projected to grow faster than other large-cap stocks.
The Russell 1000 Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. Investors cannot invest directly in an index or benchmark.
As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including cost of underlying funds, are 1.52% for Class N, 2.52% for Class C and 1.77% for Class A. The performance data quoted here represents past performance, which is not indicative of future results. Current performance may be lower or higher than the performance data quoted. The investment return and NAV will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Total returns are calculated assuming reinvestment of all dividends and capital gains distributions, if any. The returns do not reflect the deductions of taxes a shareholder would pay on the redemption of fund shares or fund distributions. For performance information current to the most recent month-end, please call 1-800-442-4358 or visit our website www.dunham.com.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
| ||||||||
Dunham Large Cap Growth Fund |
|
|
|
| ||||||
April 30, 2013 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Security |
| Shares |
| Value |
| Security |
| Shares |
| Value |
COMMON STOCK - 93.4 % |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
AEROSPACE/DEFENSE - 4.6 % |
|
|
|
|
| OIL & GAS - 5.8 % |
|
|
|
|
Boeing Co. |
| 6,857 |
| $ 626,798 |
| Exxon Mobil Corp. |
| 9,316 |
| $ 829,031 |
United Technologies Corp. |
| 10,649 |
| 972,147 |
| Occidental Petroleum Corp. |
| 13,074 |
| 1,166,985 |
|
|
|
| 1,598,945 |
|
|
|
|
| 1,996,016 |
APPAREL - 3.3 % |
|
|
|
|
| OIL & GAS SERVICES - 3.6 % |
|
|
|
|
NIKE, Inc., Cl. B |
| 17,689 |
| 1,125,020 |
| Schlumberger Ltd. |
| 16,783 |
| 1,249,159 |
|
|
|
|
|
|
|
|
|
|
|
BEVERAGES - 8.2 % |
|
|
|
|
| PHARMACEUTICALS - 1.5 % |
|
|
|
|
Anheuser-Busch InBev NV - ADR |
| 7,535 |
| 720,497 |
| Johnson & Johnson |
| 6,033 |
| 514,192 |
Coca-Cola Co. |
| 23,297 |
| 986,162 |
|
|
|
|
|
|
PepsiCo, Inc. |
| 13,777 |
| 1,136,189 |
| REITS - 2.7 % |
|
|
|
|
|
|
|
| 2,842,848 |
| American Tower Corp. |
| 11,088 |
| 931,281 |
CHEMICALS - 2.2 % |
|
|
|
|
|
|
|
|
|
|
Praxair, Inc. |
| 6,606 |
| 755,066 |
| RETAIL - 9.4 % |
|
|
|
|
|
|
|
|
|
| Home Depot, Inc. |
| 11,433 |
| 838,611 |
COMPUTERS - 6.2 % |
|
|
|
|
| O'Reilly Automotive, Inc. * |
| 7,563 |
| 811,661 |
Apple, Inc. |
| 2,364 |
| 1,046,661 |
| Starbucks Corp. |
| 14,275 |
| 868,491 |
EMC Corp * |
| 48,789 |
| 1,094,337 |
| Target Corp. |
| 10,221 |
| 721,194 |
|
|
|
| 2,140,998 |
|
|
|
|
| 3,239,957 |
COSMETICS/PERSONAL CARE - 3.9 % |
|
|
|
| SEMICONDUCTORS - 5.5 % |
|
|
|
| |
Colgate-Palmolive Co. |
| 4,542 |
| 542,360 |
| Analog Devices, Inc. |
| 20,701 |
| 910,637 |
Procter & Gamble Co. |
| 10,697 |
| 821,209 |
| QUALCOMM, Inc. |
| 15,872 |
| 978,033 |
|
|
|
| 1,363,569 |
|
|
|
|
| 1,888,670 |
DIVERSIFIED FINANCIAL SERVICES - 1.6 % |
|
|
|
| SOFTWARE - 4.8 % |
|
|
|
| |
Visa, Inc. - Cl. A |
| 3,323 |
| 559,792 |
| Intuit, Inc. |
| 7,920 |
| 472,349 |
|
|
|
|
|
| Oracle Corp. |
| 36,134 |
| 1,184,473 |
ELECTRONICS - 4.9 % |
|
|
|
|
|
|
|
|
| 1,656,822 |
Honeywell International, Inc. |
| 15,968 |
| 1,174,287 |
| TRANSPORTATION - 4.4 % |
|
|
|
|
Thermo Fisher Scientific, Inc. |
| 6,426 |
| 518,450 |
| Canadian Pacific Railway Ltd. |
| 7,064 |
| 880,316 |
|
|
|
| 1,692,737 |
| Union Pacific Corp. |
| 4,350 |
| 643,626 |
FOOD - 3.3 % |
|
|
|
|
|
|
|
|
| 1,523,942 |
Mondelez International, Inc. |
| 36,209 |
| 1,138,773 |
|
|
|
|
|
|
|
|
|
|
|
| TOTAL COMMON STOCK |
|
|
| 32,250,224 |
HEALTHCARE-PRODUCTS - 5.3 % |
|
|
|
|
| ( Cost - $24,054,526) |
|
|
|
|
Baxter International, Inc. |
| 7,364 |
| 514,523 |
|
|
|
|
|
|
Covidien PLC |
| 11,622 |
| 741,948 |
| SHORT-TERM INVESTMENT - 5.7 % |
|
| ||
St. Jude Medical, Inc. |
| 13,698 |
| 564,631 |
| MONEY MARKET FUND - 5.7 % |
|
| ||
|
|
|
| 1,821,102 |
| Fidelity Institutional |
| 1,972,776 |
| 1,972,776 |
INSURANCE - 7.7 % |
|
|
|
|
| Money Market Portfolio - 0.10% + |
|
|
| |
Berkshire Hathaway, Inc. - Cl. B * |
| 14,979 |
| 1,592,567 |
| TOTAL SHORT-TERM INVESTMENT | ||||
Markel Corp. * |
| 2,012 |
| 1,078,935 |
| ( Cost - $1,972,776) |
|
|
|
|
|
|
|
| 2,671,502 |
|
|
|
|
|
|
INTERNET - 2.0 % |
|
|
|
|
| TOTAL INVESTMENTS - 99.1 % |
| $ 34,223,000 | ||
Google, Inc. - Cl. A * |
| 838 |
| 690,990 |
| ( Cost - $26,027,302) |
|
|
|
|
|
|
|
|
|
| OTHER ASSETS LESS LIABILITIES - 0.9 % | 315,327 | |||
MEDIA - 2.5 % |
|
|
|
|
| NET ASSETS - 100.0 % |
|
|
| $ 34,538,327 |
Walt Disney Co. |
| 13,508 |
| 848,843 |
|
|
|
|
|
|
|
|
|
|
|
| * Non-Income producing security. |
| |||
|
|
|
|
|
| + Variable rate security. Interest rate is as of April 30, 2013. | ||||
|
|
|
|
|
| ADR - American Depositary Receipt. |
|
| ||
|
|
|
| REITS - Real Estate Investment Trusts. |
See accompanying notes to financial statements.
|
|
|
|
|
|
|
|
|
|
|
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
| ||||||
Dunham Large Cap Growth Fund (Continued) |
|
|
|
| ||||||
April 30, 2013 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Portfolio Composition * - (Unaudited) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
Consumer, Non-Cyclical |
| 22.44% |
|
|
| Energy |
|
|
| 9.48% |
Technology |
| 16.62% |
|
|
| Short-Term Investment |
|
|
| 5.76% |
Industrial |
| 14.07% |
|
|
| Communications |
|
|
| 4.50% |
Consumer, Cyclical |
| 12.75% |
|
|
| Basic Materials |
|
|
| 2.22% |
Financial |
| 12.16% |
|
|
| Total |
|
|
| 100.00% |
|
|
|
|
|
|
|
|
|
|
|
* Based on total value of investments as of April 30, 2013. |
|
|
|
|
|
|
|
| ||
Percentage may differ from Schedule of Investments which is based on Fund net assets. |
See accompanying notes to financial statements.
Dunham Focused Large Cap Growth Fund
Message from the Sub-Adviser (The Ithaka Group LLC)
Large cap growth stocks closed the six-month period ending April 30, 2013 up 13.7 percent as measured by the Russell 1000 Growth Index, slightly underperforming broad equity markets, as measured by the Standard & Poor’s 500 Index, which posted a gain of 14.4 percent. The growth in the large cap markets was generally consistent throughout the six-month period, with the index only having one month of flat returns in December and no months where the index lost ground. The month of January was especially strong for the index with it gaining 4.3 percent as investors flocked towards large cap stocks in an effort to take advantage of a bull market. The Sub-Adviser implements a concentrated approach to investing in large cap growth stocks which generally means that the Fund is more sensitive to an individual holding’s performance than the performance of any single sector or the performance of the benchmark index as a whole.
Helping the Fund’s performance significantly was the position in Starbucks Corporation (SBUX), a global coffee company and coffeehouse chain based in Seattle, which rose 33.6 percent over the six-month ending April 30, 2013. Also helping performance were holdings in a pair of credit card companies. Visa, Inc. (V), a credit card company based out of Foster City, California, had a strong quarter and saw its value increase by 21.9 percent. MasterCard Incorporated (MA), a credit card company based out of Purchase, New York, also had a strong quarter and gained 20.2 percent. Another significant contributor to the Fund’s performance over the six-month period was the large position in LinkedIn (LNKD), a social networking website for people in professional occupations, which increased 79.6 percent.
Playing a significant role in the performance of the Fund during the six-month period was the large position in Apple Inc., (AAPL) a company which designs and sells consumer electronics, which ended up hurting the Fund’s performance for the six-month period with its value falling 24.8 percent. Another detractor from performance was the position in National Oilwell Varco (NOV), a leading worldwide provider of equipment and components used in oil and gas drilling and production operations, oilfield service and supply chain integration services to the upstream oil and gas industry, which fell 11.2 percent for the six-month period.
The Sub-Adviser implements a concentrated approach to investing in large cap growth stocks, which generally means that the Fund is more sensitive to an individual holding’s performance than the performance of any single sector or the performance of the benchmark index as a whole. However, the bottom-up approach leads the Sub-Adviser to focus solely on the best ideas within the stock market, looking simply for growth, and ignoring sectors and most macroeconomic factors. This company-based focus leads the Fund to sometimes perform differently than the benchmark and have a lower correlation to it than typical large cap growth funds. As each holding makes up a relatively significant portion of the Fund, any sharp moves up or down will have a more pronounced effect than on a more diversified mutual fund. Also, the sequestration and payroll tax increase by the U.S. Government have finally begun to weigh in on the market’s future. The various central banks actions in printing money has also had a strong effect on the markets and there is little to no inflation pressure on the markets as a result.
Growth of $10,000 Investment – (Unaudited)
Total Returns as of April 30, 2013
|
| Six Months | One Year | Since Inception (12/8/11) |
Class N |
| 10.08% | 1.41% | 10.33% |
Class C Class A with load of 5.75% Class A without load |
| 9.58% 3.81% 10.11% | 0.44% (4.51)% 1.33% | 9.30% 5.55% 10.13% |
Morningstar Large Cap Growth Category |
| 12.88% | 10.43% | 18.83% |
Russell 1000 Growth Index |
| 13.71% | 12.60% | 20.83% |
The Morningstar Large Cap Growth Category is generally representative of mutual funds that primarily invest in big (large capitalization) U.S. companies that are projected to grow faster than other large-cap stocks.
The Russell 1000 Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. Investors cannot invest directly in an index or benchmark.
As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including underlying funds, are 2.12% for Class N, 3.12% for Class C and 2.37% for Class A. The performance data quoted here represents past performance, which is not indicative of future results. Current performance may be lower or higher than the performance data quoted. The investment return and NAV will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Total returns are calculated assuming reinvestment of all dividends and capital gains distributions, if any. The returns do not reflect the deductions of taxes a shareholder would pay on the redemption of fund shares or fund distributions. For performance information current to the most recent month-end, please call 1-800-442-4358 or visit our website www.dunham.com.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
| ||||||
Dunham Focused Large Cap Growth Fund |
|
|
|
| ||||||
April 30, 2013 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Security |
| Shares |
| Value |
| Security |
| Shares |
| Value |
COMMON STOCK - 99.2 % |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
AEROSPACE/DEFENSE - 6.5 % |
|
|
|
|
|
|
|
|
|
|
BE Aerospace, Inc. * |
| 7,297 |
| $ 457,814 |
| MACHINERY-DIVERSIFIED - 2.5 % |
|
|
|
|
TransDigm Group, Inc. |
| 1,444 |
| 211,979 |
| Cummins, Inc. |
| 2,371 |
| $ 252,251 |
|
|
|
| 669,793 |
|
|
|
|
|
|
APPAREL - 7.5 % |
|
|
|
|
| METAL FABRICATE/HARDWARE - 3.2 % |
|
|
| |
Coach, Inc. |
| 5,748 |
| 338,327 |
| Precision Castparts Corp. |
| 1,698 |
| 324,810 |
Michael Kors Holdings Ltd. * |
| 3,414 |
| 194,393 |
|
|
|
|
|
|
Under Armour, Inc. - Cl. A * |
| 3,899 |
| 222,555 |
| OIL & GAS SERVICES - 2.9 % |
|
|
|
|
|
|
|
| 755,275 |
| National Oilwell Varco, Inc. |
| 4,641 |
| 302,686 |
BIOTECHNOLOGY - 5.3 % |
|
|
|
|
|
|
|
|
|
|
Alexion Pharmaceuticals, Inc. * |
| 1,437 |
| 140,826 |
| PHARMACEUTICALS - 2.3 % |
|
|
|
|
Gilead Sciences, Inc. * |
| 4,388 |
| 222,208 |
| Allergan, Inc. |
| 2,061 |
| 234,027 |
Regeneron Pharmaceuticals, Inc. * |
| 847 |
| 182,224 |
|
|
|
|
|
|
|
|
|
| 545,258 |
| REITS - 2.3 % |
|
|
|
|
CHEMICALS - 1.5 % |
|
|
|
|
| American Tower Corp. |
| 2,837 |
| 238,280 |
Monsanto Co. |
| 1,437 |
| 153,500 |
|
|
|
|
|
|
|
|
|
|
|
| RETAIL - 7.3 % |
|
|
|
|
COMMERCIAL SERVICES - 4.1 % |
|
|
|
|
| Chipotle Mexican Grill, Inc. - Cl. A * |
| 430 |
| 156,172 |
Mastercard, Inc. |
| 766 |
| 423,544 |
| Starbucks Corp. |
| 6,449 |
| 392,357 |
|
|
|
|
|
| Ulta Salon Cosmetics & Fragrance, Inc. * | 2,324 |
| 203,699 | |
COMPUTERS - 5.0 % |
|
|
|
|
|
|
|
|
| 752,228 |
Apple, Inc. |
| 1,162 |
| 514,476 |
| SEMICONDUCTORS - 6.9 % |
|
|
|
|
|
|
|
|
|
| ARM Holdings PLC - ADR |
| 7,233 |
| 338,143 |
DIVERSIFIED FINANCIAL SERVICES - 3.9 % |
|
|
| QUALCOMM, Inc. |
| 5,970 |
| 367,871 | ||
Visa, Inc. - Cl. A |
| 2,374 |
| 399,924 |
|
|
|
|
| 706,014 |
|
|
|
|
|
| SOFTWARE - 6.0 % |
|
|
|
|
FOOD - 2.4 % |
|
|
|
|
| Red Hat, Inc. * |
| 3,336 |
| 159,894 |
Whole Foods Market, Inc. |
| 2,831 |
| 250,034 |
| Salesforce.com, Inc. * |
| 8,470 |
| 348,202 |
|
|
|
|
|
| Vmware, Inc. - Cl. A * |
| 1,582 |
| 111,531 |
HEALTHCARE-PRODUCTS - 3.6 % |
|
|
|
|
|
|
|
|
| 619,627 |
Intuitive Surgical, Inc. * |
| 752 |
| 370,202 |
| TOTAL COMMON STOCK |
|
|
|
|
|
|
|
|
|
| ( Cost - $8,950,826) |
|
|
| 10,187,973 |
INTERNET - 21.6 % |
|
|
|
|
|
|
|
|
|
|
Amazon.com, Inc. * |
| 1,850 |
| 469,549 |
| SHORT-TERM INVESTMENT - 0.7 % |
|
|
|
|
eBay, Inc. * |
| 5,705 |
| 298,885 |
| MONEY MARKET FUND - 0.7 % |
|
|
|
|
F5 Networks, Inc. * |
| 1,964 |
| 150,109 |
| First American Prime Obligations |
| 68,663 |
| 68,663 |
Facebook, Inc. - Cl. A * |
| 4,878 |
| 135,413 |
| Money Market Portfolio - 0.02% + |
|
|
|
|
LinkedIn Corp. - Cl. A * |
| 3,391 |
| 651,377 |
| TOTAL SHORT-TERM INVESTMENT |
|
|
|
|
Priceline.com, Inc. * |
| 595 |
| 414,114 |
| ( Cost - $68,663) |
|
|
|
|
Splunk, Inc. * |
| 2,518 |
| 102,734 |
|
|
|
|
|
|
|
|
|
| 2,222,181 |
| TOTAL INVESTMENTS - 99.9 % |
|
|
| $ 10,256,636 |
LODGING - 2.5 % |
|
|
|
|
| ( Cost - $9,019,489) |
|
|
|
|
Las Vegas Sands Corp. |
| 4,572 |
| 257,175 |
| OTHER ASSETS LESS LIABILITIES - 0.1 % |
| 11,378 | ||
|
|
|
|
|
| NET ASSETS - 100.0 % |
|
|
| $ 10,268,014 |
MACHINERY-CONSTRUCTION & MINING - 1.9 % |
|
|
|
|
|
|
|
| ||
Caterpillar, Inc. |
| 2,323 |
| 196,688 |
| * Non-Income producing security. |
|
|
|
|
|
|
|
|
|
| + Variable rate security. Interest rate is as of April 30, 2013. |
|
| ||
|
|
|
|
|
| ADR - American Depositary Receipt. |
|
| ||
|
|
|
|
|
| REIT- Real Estate Investment Trust. |
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
| ||||||
Dunham Focused Large Cap Growth Fund (Continued) |
|
|
|
| ||||||
April 30, 2013 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Portfolio Composition * - (Unaudited) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
Communications |
| 21.67% |
|
|
| Financial |
|
|
| 6.22% |
Technology |
| 17.94% |
|
|
| Energy |
|
|
| 2.95% |
Consumer, Non-Cyclical |
| 17.77% |
|
|
| Basic Materials |
|
|
| 1.50% |
Consumer, Cyclical |
| 17.21% |
|
|
| Short-Term Investment |
|
|
| 0.67% |
Industrial |
| 14.07% |
|
|
| Total |
|
|
| 100.00% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Based on total value of investments as of April 30, 2013. |
|
|
|
|
|
|
|
| ||
Percentage may differ from Schedule of Investments which is based on Fund net assets. |
|
|
|
See accompanying notes to financial statements.
Dunham Real Estate Stock Fund
Message from the Sub-Adviser (Cornerstone Real Estate Advisors LLC)
The real estate investment trust market, as measured by the FTSE NAREIT All REIT Index, surged in performance over the past six-month period ended April 30, 2013, increasing 18.4 percent after gaining 18.1 percent during the previous fiscal year. This most recent REIT market performance generally outpaced most other equity index returns. Across the Fund's holdings, self storage REITs proved to be one of the strongest contributors while health care REITs and office REITs generally provided mixed results.
The Fund's exposure to self storage REITs generally added value on both a relative and absolute basis during the six-month period. Security selection within the sector primarily drove the outperformance. The Sub-Adviser continues to see strength in these securities because of what it considers to be attractive valuations and the fact that there have been fewer new storage operators entering the business as demand for more storage space has increased. Although the Sub-Adviser has expressed some concern over the competition and environment surrounding apartment REITs, it believes that this actually can help storage REITs as tenants transition to a single family home or another competing apartment. This general strength in demand within this sector has allowed operators to raise prices while enjoying historically low financing costs due to the current low interest rate environment. Extra Space Storage, Inc. (EXR), a Salt Lake City-based storage company, rose 28.0 percent during the six-month period, climbing strongly during both fiscal quarters. Another strong storage REITs performer was CubeSmart (CUBE), a Pennsylvania-based self-storage developer and manager, which rose 35.9 percent during the period.
The Sub-Adviser continues to cautiously participate in the health care REITs sector as it believes these types of REITs may be overvalued. Health care REITs were generally the strongest performing REIT sector during the most recent fiscal quarter but one of the poorer performers in the first fiscal quarter. Security selection within the health care sector generally benefitted the portfolio during the six-month period. One of the better performing healthcare REITs in the Fund, Healthcare REIT, Inc. (HCN), which primarily invests in senior living properties, experienced a strong run and rose 29.3 percent, gaining 20.8 percent in the most recent fiscal quarter alone.
The hotel REIT sector generally experienced mixed results during the six-month period and served as a positive contributor in the first half of the six-month period but detracted from performance on a relative basis during the most recent three-month period. The Sub-Adviser believes it has an advantage in this sector as it owns one of the largest private portfolios of hotels in the nation. One of the strongest performing hotel REITs in the Fund, Chesapeake Lodging Trust (CHSP), which invests in upper scale hotels in major business and convention markets, gained almost 28.2 percent during the six-month period. Another hotel REIT held by the Fund during the period, Sunstone Hotel Investors, Inc. (SHO), a California-based upscale hotel owner/operator, gained 25.6 percent during the same time period. However, Sunstone Hotel Investors was one of the poorest performers in the second fiscal quarter, as most of this strong performance came in the first three months of the fiscal year.
While mortgage REITs generally detracted from relative performance during the period, the Sub-Adviser believes that this space will see improvement going forward. It is confident that some of these mortgage REITs have strong management teams and may be undervalued relative to their non-REIT peers. During the six-month period, Two Harbors Investment Corporation (TWO), a residential mortgage-backed securities financer and manager, rose 16.1 percent. However, during the second fiscal quarter, the management team of Two Harbors strategically spun-off a single family rental business that has proven to be expensive to maintain. The Sub-Adviser believes that decisions like this highlight the strength of some of these management teams as they strive to maximize long-term shareholder value.
Apartment REITs generally detracted from relative performance. Apartment REITs generally struggled on a relative basis as growth in the space has greatly decelerated. The recent ramp-up of multi-family and single-family homes has broadly impacted existing apartments. One of the weakest performers during the six-month period was Post Properties, Inc, (PPS), an upscale developer and operator in the Southwestern and Southeastern United States. Post Properties increased only 2.3 percent during the period.
The Sub-Adviser remains cautiously optimistic about REIT earnings growth and continues to seek opportunities in REITs that are equipped to stabilize the growth deceleration that it believes is spreading across REITs, in general. In addition, the Sub-Adviser believes that REITs currently have a strong foundation given that REIT fundamentals appear sound and that they are currently operating in a record low interest rate environment.
Growth of $10,000 Investment - (Unaudited)
Total Returns as of April 30, 2013
| Six Months | One Year | Annualized Three Years | Annualized Five Years | Annualized Since Inception (12/10/04) |
Class N | 17.69% | 19.04% | 15.35% | 7.27% | 7.10% |
Class C Class A with load of 5.75% Class A without load | 17.07% 10.86% 17.61% | 17.84% 11.93% 18.74% | 14.20% 12.80% 15.06% | 6.20% 5.77% 7.02% | 6.04% 1.89%* 2.85%* |
Morningstar Real Estate Category | 16.58% | 17.11% | 15.79% | 5.67% | 7.21% |
FTSE NAREIT ALL REITs Index | 18.37% | 22.20% | 17.58% | 7.49% | 7.52% |
*Class A commenced operations on January 3, 2007.
The Morningstar Real Estate Category is generally representative of mutual funds that primarily invest in real estate investment trusts (REITs) of various types. REITs are companies that develop and manage real estate properties.
The FTSE NAREIT ALL REITs Index is a free float adjusted market capitalization weighted index that includes all tax qualified REITs listed in the NYSE, AMEX and NASDAQ National Market. Investors cannot invest directly in an index or benchmark.
As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including the cost of underlying funds, are 1.46% for Class N, 2.46% for Class C and 1.71% for Class A. The performance data quoted here represents past performance, which is not indicative of future results. Current performance may be lower or higher than the performance data quoted. The investment return and NAV will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Total returns are calculated assuming reinvestment of all dividends and capital gains distributions, if any. The returns do not reflect the deductions of taxes a shareholder would pay on the redemption of fund shares or fund distributions. For performance information current to the most recent month-end, please call 1-800-442-4358 or visit our website www.dunham.com
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
| ||||
Dunham Real Estate Stock Fund |
|
|
|
|
|
|
|
|
| |
April 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
| Shares |
| Value |
| Security |
| Shares |
| Value |
COMMON STOCK - 1.4 % |
|
|
|
|
| OFFICE PROPERTY - 10.2 % |
|
|
|
|
HEALTHCARE-SERVICES - 1.4 % |
|
|
|
|
| Biomed Realty Trust Inc |
| 16,610 |
| $ 373,891 |
Capital Senior Living Corp. * |
| 19,040 |
| $ 461,910 |
| Boston Properties, Inc. |
| 14,200 |
| 1,553,906 |
TOTAL COMMON STOCK (Cost - $460,504) |
|
|
|
| Douglas Emmett, Inc |
| 20,140 |
| 527,064 | |
|
|
|
|
|
| Highwoods Properties, Inc. |
| 7,880 |
| 323,316 |
REITS - 95.6 % |
|
|
|
|
| SL Green Realty Corp. |
| 6,800 |
| 616,760 |
APARTMENTS - 10.8 % |
|
|
|
|
|
|
|
|
| 3,394,937 |
Apartment Investment & Management Co. - CL A |
| 31,090 |
| 967,210 |
| REGIONAL MALLS - 13.5 % |
|
|
|
|
Avalonbay Communities, Inc. |
| 4,090 |
| 544,134 |
| Simon Property Group |
| 20,951 |
| 3,730,745 |
Camden Property Trust |
| 18,760 |
| 1,357,098 |
| Taubman Centers, Inc |
| 9,030 |
| 772,155 |
Essex Property Trust, Inc |
| 2,130 |
| 334,517 |
|
|
|
|
| 4,502,900 |
Home Properties, Inc. |
| 2,290 |
| 147,613 |
| SHOPPING CENTERS - 7.1 % |
|
|
|
|
Post Properties, Inc. |
| 3,960 |
| 195,743 |
| Acadia Realty Trust |
| 23,140 |
| 660,647 |
Silver Bay Realty Trust Corp |
| 2,647 |
| 50,504 |
| DDR Corp. |
| 32,870 |
| 602,836 |
|
|
|
| 3,596,819 |
| Ramco-Gershenson Properties Trust |
| 21,730 |
| 379,623 |
DIVERSIFIED - 15.1 % |
|
|
|
|
| Weingarten Realty Investors |
| 21,390 |
| 728,757 |
American Tower Corp. |
| 17,700 |
| 1,486,623 |
|
|
|
|
| 2,371,863 |
Duke Weeks Realty Corp. |
| 65,400 |
| 1,153,656 |
| SINGLE TENANT - 2.7 % |
|
|
|
|
Lexington Corporate Prop Trust |
| 40,540 |
| 519,317 |
| National Retail Properties |
| 10,910 |
| 432,909 |
Liberty Property Trust |
| 15,700 |
| 674,943 |
| Realty Income Corp |
| 9,330 |
| 475,550 |
Plum Creek Timber Co. |
| 12,000 |
| 618,480 |
|
|
|
|
| 908,459 |
STAG Industrial, Inc |
| 25,290 |
| 557,392 |
| STORAGE - 5.4 % |
|
|
|
|
|
|
|
| 5,010,411 |
| CubeSmart |
| 46,370 |
| 814,721 |
HEALTH CARE - 18.2 % |
|
|
|
|
| Extra Space Storage, Inc. |
| 22,700 |
| 989,266 |
HCP, Inc. |
| 30,460 |
| 1,623,518 |
|
|
|
|
| 1,803,987 |
Health Care REIT, Inc. |
| 14,810 |
| 1,110,306 |
| WAREHOUSE - 3.0 % |
|
|
|
|
Healthcare Realty Trust |
| 8,150 |
| 244,663 |
| First Industrial Realty Trust |
| 20,610 |
| 369,742 |
Medical Properties Trust, Inc |
| 13,770 |
| 221,559 |
| Prologis, Inc. |
| 14,384 |
| 603,409 |
Omega Healthcare Investors |
| 6,870 |
| 225,817 |
|
|
|
|
| 973,151 |
Sabra Health Care REIT, Inc |
| 10,230 |
| 305,059 |
|
|
|
|
|
|
Senior Housing Prop Trust |
| 8,720 |
| 247,910 |
| TOTAL REITS (Cost - $25,340,224) |
|
|
| 31,808,906 |
Ventas, Inc |
| 26,273 |
| 2,092,119 |
|
|
|
|
|
|
|
|
|
| 6,070,951 |
| SHORT-TERM INVESTMENT - 1.7 % |
|
|
|
|
HOTELS - 3.2 % |
|
|
|
|
| MONEY MARKET FUND - 1.7 % |
|
|
|
|
Chesapeake Lodging Trust |
| 24,090 |
| 569,969 |
| Fidelity Institutional Money Market |
|
|
|
|
Strategic Hotels & Resorts, Inc. * |
| 8,700 |
| 70,209 |
| Fund - Government Portfolio, 0.01%+ |
| 579,908 |
| 579,908 |
Sunstone Hotel Investors, Inc. * |
| 31,590 |
| 392,032 |
| TOTAL SHORT TERM INVESTMENT |
|
|
|
|
|
|
|
| 1,032,210 |
| (Cost - $579,908) |
|
|
|
|
MORTGAGE - 6.4 % |
|
|
|
|
|
|
|
|
|
|
AG Mortgage Investment Trust, Inc. |
| 4,500 |
| 116,415 |
| TOTAL INVESTMENTS - 98.7 % (Cost - $26,380,636) | $ 32,850,724 | |||
Colony Financial, Inc. |
| 14,900 |
| 332,270 |
| OTHER ASSETS LESS LIABILITIES - 1.3 % | 424,665 | |||
MFA Financial, Inc. |
| 55,010 |
| 509,943 |
| TOTAL NET ASSETS - 100.00 % |
|
|
| $ 33,275,389 |
Starwood Property Trust, Inc. |
| 19,550 |
| 537,430 |
|
|
|
|
|
|
Two Harbors Investment Corp. |
| 54,020 |
| 647,160 |
| REIT - Real Estate Investment Trust |
|
|
|
|
|
|
|
| 2,143,218 |
| + Variable rate security. Interest rate is as of April 30, 2013. | ||||
|
|
|
|
|
| * Non-Income producing security. |
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
| ||||||
Dunham Real Estate Stock Fund (Continued) |
|
|
|
|
|
| ||||
April 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio Composition * - (Unaudited) | ||||||||||
Health Care |
|
|
| 18.48% |
| Storage |
|
|
| 5.49% |
Diversified |
|
|
| 15.25% |
| Hotels |
|
|
| 3.14% |
Regional Malls |
|
|
| 13.71% |
| Warehouse |
|
|
| 2.96% |
Apartments |
|
|
| 10.95% |
| Single Tenant |
|
|
| 2.77% |
Office Property |
|
|
| 10.33% |
| Short-Term Investment |
|
|
| 1.77% |
Shopping Centers |
|
|
| 7.22% |
| Healthcare Services |
|
|
| 1.41% |
Mortgage |
|
|
| 6.52% |
| Total |
|
|
| 100.00% |
|
|
|
|
|
|
|
|
|
|
|
* Based on total value of investments as of April 30, 2013 |
|
|
|
|
|
|
|
| ||
Percentage may differ from Schedule of Investments which are based on Fund net assets. |
|
|
|
See accompanying notes to financial statements.
Dunham International Stock Fund
Message from the Sub-Adviser (Arrowstreet Capital, L.P.)
International equity markets, as measured by the MSCI All Country World ex USA Index (Net) (referred to as the “Index”), rose 12.8 percent during the six-month period ending April 30, 2013 (the “six-month period”). For the months of November and December of 2012, the Index was up 1.9 percent and 3.5 percent, respectively. During these months, european stocks continued their recovery, with bond market volatility subsiding and Greek government bonds soaring as an agreement was reached on a further debt restructuring and debt buyback program. In Asia, after underperforming most of the year, Chinese stocks moved strongly in December on the back of stronger than expected economic data and positive comments by government officials. In Japan, a rally was fueled by investor optimism over the new Prime Minister and speculation of massive monetary and fiscal stimulus measures to come in 2013. In January, the Index rose 4.1 percent. In February the Index fell 1.1 percent, and in March and April, the Index was up 0.20 percent and 3.7 percent, respectively. In Asia, rising markets were led by strong returns in Japan on the back of proposed monetary fiscal stimulus programs, initiated by newly elected Prime Minister, Shinzo Abe. These returns overcame lagging european stock performance due to Italy’s irresolute elections and the Cyprus banking crisis. These events renewed fears about the stability of the Eurozone causing continued downgrades of sovereign credit ratings, instability in the credit markets, and a sharp sell off among Eurozone banks.
The Sub-Adviser’s investment process is best characterized as a dynamic process that uses quantitative models to evaluate securities to exploit opportunities across companies, sectors, and countries while seeking to avoid long-term systematic biases toward any particular country, sector, style, or market capitalization. These stock selection models are designed to understand what information is likely to impact stock prices with a predictable and measurable lag that allows time to invest and profit. The models obtain the information to forecast individual stock returns by evaluating a stock’s potential on the basis of: (1) direct effects - characteristics of the company itself; and (2) indirect effects - characteristics of other companies that are related by virtue of a common country affiliation and sector affiliation (called country/sector baskets); a common country affiliation; and a common global sector affiliation, and/or other common linkages. Over any time period, the strategy’s performance relative to the Index is driven by allocations to country/sector baskets, stock selection, and the effects of currency exposures differing from those of the Index.
Countries contributing most to the Fund’s returns relative to the Index during the six-month period included Japan (primarily due to consumer discretionary, financials, health care and industrial sector overweights), Canada (primarily due to energy and materials sector underweights), and the United Kingdom (primarily due to energy and materials sector underweights). Countries contributing most to the Fund’s underperformance relative to the Index included Italy (primarily due to a financial sector overweight), Russia (primarily due to an energy sector overweight), and Switzerland (primarily due to a health care sector underweight).
Sectors contributing most to the Fund’s returns relative to the Index during the six-month period included materials (primarily due to Canada, Australia, and United Kingdom underweights), financials (primarily due to a Japan and Sweden overweight and a Canada underweight), and energy (primarily due to Canada, United Kingdom, and China underweights). Sectors contributing most to the Fund’s underperformance relative to the Index included consumer staples (primarily due to France, Australia, and United Kingdom underweights) and information technology (primarily due to a Finland overweight).
The stocks contributing most to the Fund's returns relative to the Index during the six-month period included Nomura Holdings (Japan financials), Sumitomo Mitsui Financial Group Inc. (Japan financials), and Daiichi Sankyo Co. Ltd. (Japan health care). Stocks contributing most to the Fund’s underperformance relative to the Index included Gazprom OAO (Russia energy), Volkswagon AG (German consumer discretionary), and Nokia Corp. (Finland information technology).
The foregoing Insights from the Sub-Adviser are provided by Arrowstreet Capital, Limited Partnership (“Arrowstreet”) through April 30, 2013 for informational purposes only and solely with respect to the portfolio of assets within the Fund managed by Arrowstreet. References to specific stocks, countries or sectors are shown for informational purposes only and are not intended as investment advice. Arrowstreet is not responsible for, and makes no representation with respect to, any other information or performance data set forth herein.
Growth of $10,000 Investment - (Unaudited)
Total Returns as of April 30, 2013**
| Six Months | One Year | Annualized Three Years | Annualized Five Years | Annualized Since Inception (12/10/04) |
Class N | 17.00% | 19.38% | 7.17% | 1.65% | 5.41% |
Class C Class A with load of 5.75% Class A without load | 16.34% 10.15% 16.84% | 18.16% 12.17% 19.01% | 6.09% 4.78% 6.88% | 0.63% 0.20% 1.39% | 4.37% (0.04)%* 0.90%* |
Morningstar Foreign Large Cap Blend Category | 14.02% | 15.50% | 6.69% | (1.48)% | 4.71% |
MSCI ACW ex US Index (net) | 12.77% | 14.14% | 5.98% | (0.84)% | 1.06% |
*Class A commenced operations on January 3, 2007.
**Arrowstreet became the Sub-Adviser of the Dunham International Stock Fund effective July 1, 2008. The performance returns have been furnished by the Fund. Arrowstreet makes no representation or warranty relating to the accuracy or completeness of such data.
The Morningstar Foreign Large Cap Blend Category is generally representative of mutual funds that primarily invest in non-U.S. stocks that have market caps in the top 70% of each economically integrated market (such as Europe or Asia ex-Japan). The blend style is generally applicable where neither growth nor value characteristics predominate.
The MSCI All Country World ex US (net) Index is a free float-adjusted market capitalization index designed to measure equity market performance in the global developed and emerging markets excluding holdings in the United States and is net of any withholding taxes. Investors cannot invest directly in an index or benchmark.
As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including underlying funds, are 1.98% for Class N, 2.98% for Class C and 2.23% for Class A. The performance data quoted here represents past performance, which is not indicative of future results. Current performance may be lower or higher than the performance data quoted. The investment return and NAV will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Total returns are calculated assuming reinvestment of all dividends and capital gains distributions, if any. The returns do not reflect the deductions of taxes a shareholder would pay on the redemption of fund shares or fund distribution. For performance information current to the most recent month-end, please call 1-800-442-4358 or visit our website www.dunham.com.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
| ||||||
Dunham International Stock Fund |
|
|
|
|
|
|
|
|
| |
April 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
| Shares |
| Value |
| Security |
| Shares |
| Value |
|
|
|
|
|
|
|
|
|
|
|
COMMON STOCK - 94.3 % |
|
|
|
|
| BANKS - 11.8 % |
|
|
|
|
ADVERTISING - 0.3 % |
|
|
|
|
| Akbank TAS |
| 48,505 |
| $ �� 255,267 |
Publicis Groupe SA |
| 2,572 |
| $ 179,009 |
| Banca Monte dei Paschi di Siena SpA |
| 118,447 |
| 33,455 |
|
|
|
|
|
| Banco Bilbao Vizcaya Argentaria SA |
| 22,149 |
| 215,799 |
AEROSPACE/DEFENSE - 0.8 % |
|
|
|
|
| Banco Bradesco SA - ADR |
| 5,222 |
| 86,633 |
BAE Systems PLC |
| 38,769 |
| 226,778 |
| Banco Espirito Santo SA * |
| 17,713 |
| 20,313 |
Rolls-Royce Holdings PLC |
| 10,880 |
| 191,432 |
| Banco Popolare Societa Cooperativa Scarl |
| 70,212 |
| 101,105 |
|
|
|
| 418,210 |
| Bank Mandiri Persero Tbk PT |
| 115,500 |
| 124,804 |
AGRICULTURE - 1.9 % |
|
|
|
|
| Bank Leumi Le-Israel BM * |
| 23,810 |
| 84,635 |
British American Tobacco Malaysia Bhd - ADR | 2,213 |
| 245,687 |
| BNP Paribas SA |
| 11,483 |
| 640,827 | |
Imperial Tobacco Group PLC - ADR |
| 2,175 |
| 156,622 |
| China Construction Bank Corp |
| 309,000 |
| 259,332 |
Japan Tobacco Inc. |
| 8,800 |
| 332,975 |
| Credit Agricole SA |
| 23,348 |
| 214,070 |
KT&G Corp. |
| 2,183 |
| 157,286 |
| DNB ASA |
| 13,273 |
| 217,681 |
Swedish Match AB |
| 5,142 |
| 178,581 |
| Erste Group Bank AG * |
| 735 |
| 23,058 |
|
|
|
| 1,071,151 |
| HDFC Bank Ltd - ADR |
| 5,049 |
| 214,280 |
AIRLINES - 0.8 % |
|
|
|
|
| Intesa Sanpaolo SpA |
| 109,884 |
| 199,737 |
Deutsche Lufthansa AG |
| 19,077 |
| 382,301 |
| Kasikornbank PCL |
| 25,700 |
| 186,428 |
International Consolidated Airlines Group SA | 20,025 |
| 84,427 |
| Kasikornbank PCL |
| 20,900 |
| 154,421 | |
Turk Hava Yollari * |
| 1 |
| 6 |
| Lloyds Banking Group PLC * |
| 117,716 |
| 100,158 |
|
|
|
| 466,734 |
| Mediobanca SpA |
| 12,940 |
| 82,430 |
APPAREL - 0.8 % |
|
|
|
|
| Nishi-Nippon City Bank Ltd/The |
| 32,000 |
| 106,856 |
Adidas AG |
| 1,061 |
| 111,043 |
| Nordea Bank AB |
| 40,838 |
| 491,963 |
Burberry Group PLC |
| 5,499 |
| 114,514 |
| Pohjola Bank PLC |
| 10,860 |
| 185,034 |
Christian Dior SA |
| 1,377 |
| 240,551 |
| Raiffeisen Bank International AG |
| 3,607 |
| 127,438 |
|
|
|
| 466,108 |
| Sberbank of Russia - ADR |
| 68,463 |
| 880,434 |
AUTO MANUFACTURERS - 5.3 % |
|
|
|
|
| Skandinaviska Enskilda Banken AB |
| 24,801 |
| 255,426 |
Bayerische Motoren Werke AG |
| 6,973 |
| 645,357 |
| Societe Generale SA * |
| 12,823 |
| 466,228 |
Daihatsu Motor Co. Ltd. |
| 11,000 |
| 218,417 |
| Svenska Handelsbanken AB |
| 3,914 |
| 178,635 |
Daimler AG |
| 6,250 |
| 346,834 |
| Swedbank AB |
| 3,917 |
| 96,560 |
Fiat SpA * |
| 44,366 |
| 266,092 |
| Turkiye Is Bankasi |
| 22,513 |
| 87,034 |
Fuji Heavy Industries Ltd. |
| 7,000 |
| 132,257 |
| UniCredit SpA * |
| 97,549 |
| 510,299 |
Hino Motors Ltd. |
| 17,000 |
| 259,926 |
|
|
|
|
| 6,600,340 |
Kia Motors Corp |
| 3,018 |
| 150,544 |
| BEVERAGES - 1.7 % |
|
|
|
|
Renault SA |
| 2,928 |
| 202,252 |
| Coca-Cola West Co. Ltd. |
| 11,000 |
| 204,788 |
Suzuki Motor Corp |
| 4,500 |
| 115,746 |
| Cia de Bebidas das Americas - ADR |
| 3,563 |
| 149,717 |
Toyota Motor Corp |
| 8,100 |
| 470,565 |
| Diageo PLC - ADR |
| 903 |
| 110,347 |
Volkswagen AG |
| 949 |
| 185,063 |
| Fomento Economico Mexicano SAB de CV - ADR | 998 |
| 113,163 | |
|
|
|
| 2,993,053 |
| Heineken Holding NV |
| 3,469 |
| 209,215 |
AUTO PARTS & EQUIPMENT - 3.3 % |
|
|
|
|
| Heineken NV |
| 1,082 |
| 76,645 |
Aisin Seiki Co. Ltd. |
| 3,400 |
| 122,849 |
| Kirin Holdings Co. Ltd. |
| 5,000 |
| 87,580 |
Bridgestone Corp |
| 4,400 |
| 166,233 |
|
|
|
|
| 951,455 |
Continental AG |
| 3,466 |
| 412,633 |
| BIOTECHNOLOGY - 0.2 % |
|
|
|
|
Denso Corp |
| 2,000 |
| 89,769 |
| CSL Ltd. |
| 1,490 |
| 97,442 |
Hyundai Mobis |
| 492 |
| 111,868 |
|
|
|
|
|
|
JTEKT Corp. |
| 9,300 |
| 94,919 |
| BUILDING MATERIALS - 0.5 % |
|
|
|
|
Cie Generale des Etablissements Michelin | 1,742 |
| 147,436 |
| Asahi Glass Co. Ltd |
| 8,000 |
| 62,919 | |
Sumitomo Electric Industries Ltd. |
| 15,100 |
| 201,006 |
| HeidelbergCement AG |
| 3,117 |
| 225,208 |
Toyoda Gosei Co. Ltd |
| 3,800 |
| 98,717 |
|
|
|
|
| 288,127 |
Toyota Industries Corp |
| 6,300 |
| 258,223 |
|
|
|
|
|
|
Valeo SA |
| 2,956 |
| 172,113 |
|
|
|
|
|
|
|
|
|
| 1,875,766 |
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
| ||||||||
Dunham International Stock Fund (Continued) |
|
|
|
|
|
|
|
| ||||
April 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
|
| Shares |
| Value |
| Security |
| Shares |
| Value |
|
|
|
|
|
|
|
|
|
|
|
|
|
CHEMICALS - 1.0 % |
|
|
|
|
|
|
| ENGINEERING & CONSTRUCTION - 2.2 % |
|
|
|
|
Daicel Corp |
|
|
| 15,000 |
| $ 121,180 |
| Acciona SA |
| 1,620 |
| $ 106,075 |
Denki Kagaku Kogyo KK |
|
|
| 28,000 |
| 102,536 |
| Airports of Thailand PCL |
| 58,200 |
| 287,296 |
Mitsubishi Chemical Holdings Corp |
| 22,500 |
| 109,842 |
| Auckland International Airport Ltd |
| 36,086 |
| 95,983 | ||
Mitsubishi Gas Chemical Co. Inc |
| 6,000 |
| 45,917 |
| Enka Insaat ve Sanayi AS |
| 58,884 |
| 182,151 | ||
Sumitomo Chemical Co. Ltd |
|
|
| 52,000 |
| 174,301 |
| Fraport AG Frankfurt Airport Services Worldwide | 3,420 |
| 204,804 | |
|
|
|
|
|
| 553,776 |
| JGC Corp |
| 3,000 |
| 88,981 |
COMMERCIAL SERVICES - 1.4 % |
|
|
|
| TAV Havalimanlari Holding AS |
| 39,944 |
| 281,979 | |||
Adecco SA |
|
|
| 2,223 |
| 119,046 |
|
|
|
|
| 1,247,269 |
CCR SA |
|
|
| 7,600 |
| 74,359 |
| ENTERTAINMENT - 0.4 % |
|
|
|
|
Edenred |
|
|
| 1,853 |
| 61,784 |
| OPAP SA |
| 24,283 |
| 239,580 |
Intertek Group PLC |
|
|
| 7,542 |
| 388,565 |
|
|
|
|
|
|
Randstad Holding NV |
|
|
| 3,734 |
| 155,786 |
| FOOD - 5.9 % |
|
|
|
|
|
|
|
|
|
| 799,540 |
| Aryzta AG |
| 2,251 |
| 139,931 |
COMPUTERS - 0.9 % |
|
|
|
|
|
|
| BIM Birlesik Magazalar AS |
| 2,684 |
| 137,813 |
Cap Gemini SA |
|
|
| 1,959 |
| 90,401 |
| Colruyt SA |
| 4,212 |
| 212,920 |
Fujitsu Ltd |
|
|
| 34,000 |
| 142,942 |
| Delhaize Group SA |
| 2,717 |
| 170,160 |
Research In Motion Ltd |
|
|
| 17,711 |
| 289,464 |
| Distribuidora Internacional de Alimentacion SA | 22,890 |
| 177,585 | |
|
|
|
|
|
| 522,807 |
| Jeronimo Martins SGPS SA |
| 11,453 |
| 273,418 |
COSMETICS/PERSONAL CARE - 0.1 % |
|
|
|
|
| Kerry Group PLC |
| 1,389 |
| 82,080 | ||
LG Household & Health Care Ltd. |
| 117 |
| 65,793 |
| Koninklijke Ahold NV |
| 13,029 |
| 206,002 | ||
|
|
|
|
|
|
|
| Lindt & Spruengli AG |
| 22 |
| 85,321 |
DISTRIBUTION/WHOLESALE - 2.2 % |
|
|
|
|
| Nestle SA |
| 5,835 |
| 416,601 | ||
ITOCHU Corp |
|
|
| 14,800 |
| 183,691 |
| Nisshin Seifun Group Inc |
| 32,500 |
| 420,319 |
Marubeni Corp |
|
|
| 37,000 |
| 265,854 |
| Suedzucker AG |
| 3,749 |
| 151,272 |
Mitsubishi Corp |
|
|
| 4,700 |
| 84,693 |
| Toyo Suisan Kaisha Ltd |
| 2,000 |
| 68,037 |
Mitsui & Co. Ltd |
|
|
| 14,200 |
| 195,819 |
| Unilever NV |
| 13,947 |
| 594,819 |
Toyota Tsusho Corp |
|
|
| 17,400 |
| 485,090 |
| Woolworths Ltd |
| 4,407 |
| 166,561 |
|
|
|
|
|
| 1,215,147 |
|
|
|
|
| 3,302,839 |
|
|
|
|
|
|
|
| FOOD SERVICE - 0.4 % |
|
|
|
|
DIVERSIFIED FINANANCIAL SERVICES - 0.9 % |
|
|
| Compass Group PLC |
| 15,034 |
| 198,232 | ||||
Aberdeen Asset Management PLC |
| 34,914 |
| 244,088 |
|
|
|
|
|
| ||
BM&FBovespa SA |
|
|
| 10,500 |
| 72,863 |
| GAS - 0.2 % |
|
|
|
|
Nomura Holdings Inc |
|
|
| 11,900 |
| 97,350 |
| Gas Natural SDG SA |
| 2,639 |
| 55,308 |
Old Mutual PLC |
|
|
| 25,243 |
| 80,618 |
| Korea Gas Corp |
| 1,126 |
| 72,301 |
|
|
|
|
|
| 494,919 |
|
|
|
|
| 127,609 |
ELECTRIC - 0.4 % |
|
|
|
|
|
|
| HAND/MACHINE TOOLS - 0.2 % |
|
|
|
|
Aboitiz Power Corp. |
|
|
| 16,300 |
| 14,763 |
| Fuji Electric Co Ltd |
| 24,000 |
| 82,198 |
Chubu Electric Power Co. Inc |
|
|
| 3,700 |
| 47,907 |
|
|
|
|
|
|
Iberdrola SA |
|
|
| 19,627 |
| 105,618 |
| HEALTHCARE-PRODUCTS - 0.9 % |
|
|
|
|
Tokyo Electric Power Co. Inc |
|
|
| 16,600 |
| 73,293 |
| Luxottica Group SpA |
| 4,618 |
| 239,395 |
|
|
|
|
|
| 241,581 |
| Smith & Nephew PLC - ADR |
| 1,945 |
| 111,137 |
ELECTRICAL COMPONENTS & EQUIPMENT - 0.5 % |
|
|
|
| Terumo Corp |
| 3,000 |
| 149,187 | |||
Brother Industries Ltd. |
|
|
| 14,500 |
| 165,986 |
|
|
|
|
| 499,719 |
Furukawa Electric Co Ltd |
|
|
| 13,000 |
| 32,930 |
| HEALTHCARE-SERVICES - 0.4 % |
|
|
|
|
Ushio Inc |
|
|
| 9,900 |
| 100,971 |
| Bangkok Dusit Medical Services PCL |
| 19,500 |
| 112,592 |
|
|
|
|
|
| 299,887 |
| Ramsay Health Care Ltd |
| 3,644 |
| 121,085 |
ELECTRONICS - 1.3 % |
|
|
|
|
|
|
|
|
|
|
| 233,677 |
Kyocera Corp |
|
|
| 1,300 |
| 132,368 |
| HOLDING COMPANIES-DIVERSIFIED - 2.1 % |
|
|
| |
LG Display Co Ltd |
|
|
| 6,010 |
| 164,457 |
| Bidvest Group Ltd |
| 8,701 |
| 226,299 |
NEC Corp |
|
|
| 77,000 |
| 200,226 |
| Exor SpA |
| 3,756 |
| 113,907 |
Rexel SA |
|
|
| 9,385 |
| 206,884 |
| Groupe Bruxelles Lambert SA |
| 1,545 |
| 119,685 |
|
|
|
|
|
| 703,935 |
| Industrivarden AB |
| 4,940 |
| 92,768 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
| ||||||||
Dunham International Stock Fund (Continued) |
|
|
|
|
|
|
|
| ||||
April 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
|
| Shares |
| Value |
| Security |
| Shares |
| Value |
|
|
|
|
|
|
|
|
|
|
|
|
|
HOLDING COMPANIES-DIVERSIFIED - 2.1 %(CONTINUED) |
|
|
| LODGING - 0.3 % |
|
|
|
| ||||
KOC Holding AS |
|
|
| 17,622 |
| $ 106,797 |
| Crown Ltd |
| 1,772 |
| $ 23,727 |
Wendel SA |
|
|
| 833 |
| 90,363 |
| SKYCITY Entertainment Group Ltd |
| 18,006 |
| 68,920 |
Wharf Holdings Ltd. |
|
|
| 47,000 |
| 419,784 |
| Whitbread PLC |
| 2,360 |
| 93,947 |
|
|
|
|
|
| 1,169,603 |
|
|
|
|
| 186,594 |
HOME BUILDERS - 0.0 % |
|
|
|
|
|
|
| MACHINERY CONSTRUCTION & MINING - 0.3 % |
|
| ||
Sekisui House Ltd. |
|
|
| 1,000 |
| 15,004 |
| Atlas Copco AB |
| 5,798 |
| 138,494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
HOME FURNISHINGS - 0.5 % |
|
|
|
|
|
|
| MACHINERY - DIVERSIFIED - 1.5 % |
|
|
|
|
Electrolux AB |
|
|
| 9,735 |
| 277,385 |
| Andritz AG |
| 1,268 |
| 82,648 |
|
|
|
|
|
|
|
| Hexagon AB |
| 7,144 |
| 204,266 |
HOUSEHOLD PRODUCTS/WARES - 1.0 % |
|
|
|
|
| IHI Corp |
| 17,000 |
| 63,454 | ||
Kimberly-Clark de Mexico SAB de CV |
|
| 54,300 |
| 189,995 |
| Kawasaki Heavy Industries Ltd |
| 54,000 |
| 172,370 | |
Societe BIC SA |
|
|
| 1,044 |
| 111,430 |
| Mitsubishi Heavy Industries Ltd |
| 34,000 |
| 234,695 |
Unilever Indonesia Tbk PT |
|
|
| 97,500 |
| 263,128 |
| Zardoya Otis SA |
| 7,681 |
| 107,457 |
|
|
|
|
|
| 564,553 |
|
|
|
|
| 864,890 |
HOUSEWARES - 0.0 % |
|
|
|
|
|
|
|
|
|
|
|
|
Turkiye Sise ve Cam Fabrikalari AS |
|
|
| 3 |
| 4 |
| MEDIA - 1.3 % |
|
|
|
|
|
|
|
|
|
|
|
| BEC World PCL |
| 153,500 |
| 351,579 |
INSURANCE - 5.4 % |
|
|
|
|
|
|
| British Sky Broadcasting Group PLC |
| 12,310 |
| 161,521 |
Aegon NV |
|
|
| 15,107 |
| 100,999 |
| ITV PLC |
| 55,903 |
| 109,421 |
Ageas |
|
|
| 7,105 |
| 260,446 |
| Kabel Deutschland Holding AG |
| 1,003 |
| 95,298 |
AIA Group Ltd. |
|
|
| 2,400 |
| 10,676 |
|
|
|
|
| 717,819 |
Assicurazioni Generali SpA |
|
|
| 11,279 |
| 207,328 |
| METAL FABRICATE/HARDWARE - 0.2 % |
|
| ||
AXA SA |
|
|
| 34,622 |
| 648,919 |
| Vallourec SA |
| 2,696 |
| 129,508 |
China Life Insurance Co. Ltd. |
|
|
| 22,000 |
| 60,848 |
|
|
|
|
|
|
CNP Assurances |
|
|
| 6,382 |
| 90,533 |
| MINING - 0.3 % |
|
|
|
|
Dai-ichi Life Insurance Co. Ltd/The |
|
|
| 146 |
| 201,453 |
| Mitsubishi Materials Corp |
| 21,000 |
| 60,295 |
Gjensidige Forsikring ASA |
|
|
| 14,303 |
| 231,012 |
| Sumitomo Metal Mining Co Ltd |
| 7,000 |
| 98,091 |
Hannover Rueckversicherung SE |
|
|
| 234 |
| 19,815 |
|
|
|
|
| 158,386 |
ING Groep NV |
|
|
| 15,032 |
| 123,939 |
| MISCELLANEOUS MANUFACTURING - 0.8 % |
|
|
| |
Manulife Financial Corp |
|
|
| 5,447 |
| 80,636 |
| FUJIFILM Holdings Corp - ADR |
| 4,085 |
| 83,988 |
Muenchener Rueckversicherungs AG |
|
| 1,142 |
| 228,950 |
| FUJIFILM Holdings Corp |
| 8,700 |
| 178,903 | |
Prudential PLC - ADR |
|
|
| 4,577 |
| 158,090 |
| Konica Minolta Holdings Inc. |
| 24,000 |
| 169,722 |
Sanlam Ltd |
|
|
| 13,813 |
| 70,818 |
|
|
|
|
| 432,613 |
SCOR SE |
|
|
| 3,700 |
| 112,392 |
| OFFICE/BUSINESS EQUIPMENT - 0.6 % |
|
|
|
|
Swiss Life Holding AG |
|
|
| 1,417 |
| 224,753 |
| Canon Inc - ADR |
| 5,612 |
| 202,088 |
T&D Holdings Inc |
|
|
| 18,000 |
| 209,873 |
| Ricoh Co Ltd |
| 11,000 |
| 122,518 |
|
|
|
|
|
| 3,041,480 |
|
|
|
|
| 324,606 |
INTERNET - 0.4 % |
|
|
|
|
|
|
| OIL & GAS - 3.0 % |
|
|
|
|
SBI Holdings Inc/Japan |
|
|
| 10,000 |
| 193,900 |
| Gazprom OAO - ADR |
| 89,585 |
| 710,857 |
|
|
|
|
|
|
|
| Lukoil OAO - ADR |
| 4,405 |
| 280,378 |
INVESTMENT COMPANIES - 0.5 % |
|
|
|
|
|
|
| Lukoil OAO - ADR |
| 8,343 |
| 528,946 |
Investor AB |
|
|
| 8,288 |
| 246,075 |
| Rosneft OAO - GDR |
| 12,401 |
| 84,991 |
Pargesa Holding SA |
|
|
| 447 |
| 31,214 |
| Showa Shell Sekiyu KK |
| 4,200 |
| 33,742 |
|
|
|
|
|
| 277,289 |
| Surgutneftegas OAO - ADR |
| 7,842 |
| 67,206 |
LEISURE TIME - 0.4 % |
|
|
|
|
|
|
|
|
|
|
| 1,706,120 |
TUI Travel PLC |
|
|
| 10,854 |
| 53,145 |
| OIL & GAS SERVICES - 0.2 % |
|
|
|
|
Yamaha Corp |
|
|
| 16,900 |
| 181,405 |
| AMEC PLC |
| 8,021 |
| 126,541 |
|
|
|
|
|
| 234,550 |
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
|
| ||||
Dunham International Stock Fund (Continued) |
|
|
|
|
|
|
|
| ||||
April 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
|
|
| Shares |
| Value |
| Security |
| Shares |
| Value |
|
|
|
|
|
|
|
|
|
|
|
|
|
PHARMACEUTICALS - 15.1 % |
|
|
|
|
|
|
| RETAIL - 0.8 % (CONTINUED) |
|
|
|
|
Actelion Ltd. |
|
|
| 4,570 |
| $ 280,145 |
| Swatch Group AG/The |
| 308 |
| $ 176,915 |
Alfresa Holdings Corp |
|
|
| 1,700 |
| 101,238 |
|
|
|
|
| 473,178 |
Astellas Pharma Inc. |
|
|
| 6,000 |
| 350,052 |
| RETAIL - APPAREL/SHOES - 0.9 % |
|
|
|
|
AstraZeneca PLC - ADR |
|
|
| 6,456 |
| 335,196 |
| Inditex SA |
| 2,185 |
| 293,495 |
AstraZeneca PLC |
|
|
| 9,292 |
| 483,232 |
| Next PLC |
| 3,281 |
| 222,750 |
Bayer AG - ADR |
|
|
| 2,481 |
| 259,488 |
|
|
|
|
| 516,245 |
Bayer AG |
|
|
| 1,828 |
| 191,278 |
| RETAIL - CONVENIENCE STORE - 0.7 % |
|
|
|
|
Celesio AG |
|
|
| 12,235 |
| 242,476 |
| CP ALL PCL |
| 151,800 |
| 228,301 |
Chugai Pharmaceutical Co Ltd |
|
|
| 10,800 |
| 269,153 |
| FamilyMart Co Ltd |
| 3,500 |
| 160,108 |
Daiichi Sankyo Co. Ltd. |
|
|
| 27,200 |
| 532,734 |
|
|
|
|
| 388,409 |
Dainippon Sumitomo Pharma Co Ltd |
|
| 17,500 |
| 321,742 |
| RETAIL - MAJOR DEPARTMENT STORE - 0.1 % |
|
| |||
GlaxoSmithKline PLC - ADR |
|
|
| 28,539 |
| 1,473,754 |
| Home Retail Group PLC |
| 18,284 |
| 44,330 |
GlaxoSmithKline PLC |
|
|
| 4,531 |
| 117,078 |
|
|
|
|
|
|
Grifols SA * |
|
|
| 3,311 |
| 133,020 |
| RETAIL - MISC/DIVERSIFIED - 0.2 % |
|
|
|
|
Kyowa Hakko Kirin Co. Ltd. |
|
|
| 1,000 |
| 12,286 |
| Woolworths Holdings Ltd/South Africa |
| 15,935 |
| 124,256 |
Medipal Holdings Corp. |
|
|
| 21,500 |
| 337,666 |
|
|
|
|
|
|
Merck KGaA |
|
|
| 752 |
| 114,665 |
| SEMICONDUCTORS - 1.7 % |
|
|
|
|
Ono Pharmaceutical Co. Ltd. |
|
|
| 1,800 |
| 118,831 |
| ARM Holdings PLC - ADR |
| 755 |
| 35,296 |
Orion OYJ |
|
|
| 3,779 |
| 108,695 |
| ASML Holding NV |
| 0 |
| 23 |
Otsuka Holdings Co. Ltd. |
|
|
| 6,200 |
| 223,804 |
| Macronix International |
| 295,288 |
| 80,593 |
Roche Holding AG - ADR |
|
|
| 3,548 |
| 221,466 |
| Rohm Co. Ltd. |
| 300 |
| 10,616 |
Roche Holding AG |
|
|
| 626 |
| 156,899 |
| Samsung Electronics Co. Ltd. - GDR |
| 639 |
| 441,549 |
Sanofi - ADR |
|
|
| 1,163 |
| 62,046 |
| Samsung Electronics Co. Ltd. |
| 182 |
| 251,714 |
Sanofi |
|
|
| 6,598 |
| 713,970 |
| Samsung Electronics Co. Ltd. - GDR |
| 115 |
| 45,862 |
Santen Pharmaceutical Co Ltd |
|
|
| 2,000 |
| 100,488 |
| Tokyo Electron Ltd |
| 2,100 |
| 107,592 |
Shionogi & Co Ltd |
|
|
| 5,700 |
| 140,339 |
|
|
|
|
| 973,245 |
Shire PLC - ADR |
|
|
| 4,850 |
| 454,154 |
| SOFTWARE - 0.6 % |
|
|
|
|
Suzuken Co. Ltd/Aichi Japan |
|
|
| 2,500 |
| 97,446 |
| Amadeus IT Holding SA |
| 10,953 |
| 323,468 |
Takeda Pharmaceutical Co Ltd |
|
|
| 9,300 |
| 511,084 |
|
|
|
|
|
|
|
|
|
|
|
| 8,464,425 |
| TELECOMMUNICATIONS - 4.4 % |
|
|
|
|
PRIVATE EQUITY - 0.1 % |
|
|
|
|
|
|
| BT Group PLC - ADR |
| 66,382 |
| 285,820 |
Eurazeo |
|
|
| 1,527 |
| 80,952 |
| BT Group PLC |
| 3,487 |
| 149,976 |
|
|
|
|
|
|
|
| China Mobile Ltd. |
| 64,000 |
| 703,871 |
REAL ESTATE - 2.1 % |
|
|
|
|
|
|
| Deutsche Telekom AG - ADR |
| 8,362 |
| 99,508 |
BR Malls Participacoes SA |
|
|
| 2,200 |
| 25,957 |
| KDDI Corp. |
| 5,000 |
| 240,671 |
Emlak Konut Gayrimenkul Yatirim Ortakligi AS |
| 65,061 |
| 111,529 |
| Mobile Telesystems OJSC - ADR |
| 2,540 |
| 52,578 | ||
Henderson Land Development Co. Ltd. |
|
| 28,000 |
| 203,172 |
| Nippon Telegraph & Telephone Corp. |
| 1,400 |
| 69,690 | |
Hopewell Holdings Ltd. |
|
|
| 52,500 |
| 203,202 |
| Nokia OYJ - ADR |
| 48,637 |
| 164,393 |
Hysan Development Co. Ltd. |
|
|
| 27,000 |
| 134,082 |
| Nokia OYJ |
| 25,524 |
| 85,828 |
New World Development Co. Ltd. |
|
|
| 103,000 |
| 180,043 |
| Telefonaktiebolaget LM Ericsson - ADR |
| 7,557 |
| 93,027 |
Sun Hung Kai Properties Ltd. |
|
|
| 3,000 |
| 43,378 |
| Telekomunikasi Indonesia Persero Tbk PT - ADR | 5,792 |
| 277,263 | |
Wheelock & Co. Ltd. |
|
|
| 50,000 |
| 278,610 |
| Tele2 AB |
| 6,040 |
| 103,759 |
|
|
|
|
|
| 1,179,973 |
| Vivendi SA |
| 4,132 |
| 93,679 |
REITS - 0.6 % |
|
|
|
|
|
|
| Vodafone Group PLC |
| 956 |
| 29,244 |
Link REIT/The |
|
|
| 11,500 |
| 65,187 |
|
|
|
|
| 2,449,307 |
Unibail-Rodamco SE |
|
|
| 956 |
| 250,131 |
| TOYS/GAMES/HOBBIES - 0.3 % |
|
|
|
|
|
|
|
|
|
| 315,318 |
| Namco Bandai Holdings Inc. |
| 9,500 |
| 173,320 |
RETAIL - 0.8 % |
|
|
|
|
|
|
|
|
|
|
|
|
Autogrill SpA |
|
|
| 4,818 |
| 62,447 |
| TRANSPORTATION - 1.1 % |
|
|
|
|
Citizen Holdings Co Ltd |
|
|
| 22,300 |
| 132,055 |
| Deutsche Post AG |
| 2,163 |
| 51,462 |
Jollibee Foods Corp |
|
|
| 32,600 |
| 101,761 |
| East Japan Railway Co |
| 3,100 |
| 261,947 |
|
|
|
|
|
|
|
| West Japan Railway Co |
| 6,000 |
| 290,577 |
|
|
|
|
|
|
|
|
|
|
|
| 603,986 |
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
| ||||||||
Dunham International Stock Fund (Continued) |
|
|
|
|
|
|
|
| ||||
April 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividend |
|
|
|
|
|
|
|
|
|
|
Security |
| Rate |
| Shares |
| Value |
| Security |
| Shares |
| Value |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL COMMON STOCK (Cost - $45,498,136) |
| $ 52,905,654 |
| SHORT-TERM INVESTMENT - 1.6 % |
|
| ||||||
|
|
|
|
|
|
|
| MONEY MARKET FUND - 1.6 % |
|
|
|
|
PREFERRED STOCK - 1.8 % |
|
|
|
|
| Fidelity Institutional Money Market Funds - Government | ||||||
AUTO MANUFACTURERS - 1.6 % |
|
|
|
|
| Portfolio 0.01% + (Cost - $917,210) |
| 917,210 |
| $ 917,210 | ||
Bayerische Motoren Werke AG |
| 3.0600 | % | 2,714 |
| 189,131 |
|
|
|
|
|
|
Porsche Automobil Holding SE |
| 3.0600 |
| 3,128 |
| 245,841 |
|
|
|
|
|
|
Volkswagen AG |
|
|
| 2,421 |
| 492,082 |
| TOTAL INVESTMENTS - 98.1 % (Cost - $47,519,403) |
| $ 55,028,902 | ||
|
|
|
|
|
| 927,054 |
| OTHER ASSETS LESS LIABILITIES - 1.9 % |
| 1,061,073 | ||
MEDIA - 0.2 % |
|
|
|
|
|
|
| NET ASSETS - 100.0% |
|
|
| $ 56,089,975 |
ProSiebenSat.1 Media AG |
| 1.1555 |
| 2,266 |
| 86,564 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| * Non-income producing security. |
|
|
|
|
TOTAL PREFERRED STOCK (Cost - $898,593) |
| 1,013,618 |
| ADR - American Depositary Receipt. |
|
|
|
| ||||
|
|
|
|
|
|
|
| GDR - Global Depositary Receipt. |
|
|
|
|
RIGHTS - 0.4 % |
|
|
|
|
|
|
| NVDR - Non Voting Depositary Receipt. |
| |||
BANKS - 0.4 % |
|
|
|
|
|
|
| REIT - Real Estate Investment Trust. |
|
|
|
|
Banco Santander SA - Rights * |
|
|
|
|
|
|
| + Variable rate security. Interest rate is as of April 30, 2013. | ||||
(Cost - $205,464) |
|
|
| 26,200 |
| 192,420 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio Composition * - (Unaudited) | ||||||||||||
Japan |
|
|
| 24.52% |
|
|
| Sweden |
| 4.34% |
|
|
Other Countries |
|
|
| 23.78% |
|
|
| Hong Kong |
| 4.03% |
|
|
Britain |
|
|
| 11.09% |
|
|
| Switzerland |
| 3.37% |
|
|
France |
|
|
| 9.00% |
|
|
| Netherland |
| 3.11% |
|
|
Germany |
|
|
| 9.00% |
|
|
| Italy |
| 3.08% |
|
|
Russia |
|
|
| 4.68% |
|
|
| Total |
| 100.00% |
|
|
* Based on total value of investments as of April 30, 2013. |
|
|
|
|
|
|
|
| ||||
Percentage may differ from Schedule of Investments which are based on Fund net assets. |
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
Dunham Small Cap Value Fund
Message from the Sub-Adviser (Denver Investment Advisors LLC)
Small cap value stocks, as measured by the Russell 2000 Value Index, increased by 4.2 percent in the three-month period ending April 30, 2013. The vast majority of the returns were achieved in the first part of the period in contrast to the larger capitalization indexes that had most of their gains in the later part of the six-month period. The financial services, communications and energy sectors were the largest contributors to the Fund’s performance while the consumer cyclical sector and a fairly large cash position contributed the least.
The Sub-Adviser noted that higher quality firms that have healthier balance sheets and are on the higher end of the capitalization spectrum within the small cap space outperformed highly leveraged companies with lower capitalizations in contrast to several previous periods. The Fund’s strategy only allows it to buy companies with small capitalization that pay dividends and are priced at more than five dollars per share.
The financial services sector was the top contributor to performance relative to the benchmark in the six-month period ending April 30, 2013. The Fund maintained a slight underweight to the index with individual stock selection being the main driver of performance. Bank of the Ozarks, Inc. (OZRK), a small regional bank headquartered in Little Rock Arkansas, gained more than 27 percent during the period studied. Fulton Financial Corporation (FULT), another regional bank based in Pennsylvania, delivered a 17 percent return during the same timeframe.
Exposure to the consumer cyclical sector detracted somewhat from performance, mainly due to security selection. One standout pick, however, was Texas Roadhouse, Inc. (TXRH), a casual dining restaurant chain that increased more than 47 percent over the six-month period ending April 30, 2013. One of the poorer performers was Finish Line, Inc. (FINL), a specialty retailer that sells sports apparel. The stock fell more than 5 percent during the period. Still, the Sub-Adviser believes the firm to be a good value as it has a solid cash balance of $227 million and recently signed into a partnership with high-end retailer Macy’s, Inc. (M).
Superior stock selection led to outperformance in the communications sector during the time period studied. The Fund generated a 36 percent return in sector while communications stocks contained in the benchmark index only increased by 12 percent. A moderate overweight to the sector also added value. Plantronics, Inc. (PLT), a manufacturer and marketer of communications headsets, gained more than 36 percent in the six-month period ending April 30, 2013.
As mentioned above, a relatively large cash position of 5 percent detracted somewhat from performance as money market funds are yielding less than 1 percent annually while the Russell 2000 Value Index rose more than 16 percent in the six-month period ending April 30, 2013. The Sub-Adviser plans to trim the cash positions as opportunities in the market present themselves but isn’t eager to invest it too quickly as a correction may be on the horizon.
The energy sector added value on both a relative and absolute basis as the Sub-Adviser’s picks outperformed energy stocks within the benchmark as well as the overall index. Security selection was solely responsible for the outperformance as energy stocks held by the Fund outpaced energy stocks within the benchmark while maintaining an equal-weight to the sector. Berry Petroleum Company, an independent oil and gas firm, rose more than 25 percent during the time period studied. The stock saw most of these gains February after it was announced that Linn Energy LLC (LINE) would acquire Berry Petroleum. The Sub-Adviser expects the merger to proceed and plans to hold the stock indefinitely.
A moderate underweight to the capital goods sector weakened performance on a relative basis. Stock selection detracted somewhat as well. Huntington Ingalls Industries, Inc. (HII), a defense firm that builds ships for the U.S. Navy and Coast Guard, was one exception that gained more than 25 percent in the six-month period ending April 30, 2013.
Going forward, the Sub-Adviser sees a continued transition which favors higher quality dividend paying stocks as opposed to the high beta stocks that have been outperforming in recent quarters. The Fund will continue to build conservative assumptions into its models based on its skepticism regarding the underlying economy.
Growth of $10,000 Investment – (Unaudited)
Total Returns as of April 30, 2013
| Six Months | One Year | Annualized Three Years | Annualized Five Years | Annualized Since Inception (12/10/04) |
Class N | 15.67% | 13.94% | 9.74% | 4.78% | 3.95% |
Class C Class A with load of 5.75% Class A without load | 15.01% 8.87% 15.50% | 12.67% 7.33% 13.87% | 8.64% (7.38)% 9.53% | 3.72% 3.33% 4.55% | 2.93% 1.38%* 2.33%* |
Morningstar Small Cap Value Category | 16.78% | 17.39% | 10.28% | 7.25% | 6.11% |
Russell 2000 Value Index | 16.58% | 19.71% | 9.58% | 6.60% | 2.88% |
* Class A commenced operations on January 3, 2007.
The Morningstar Small Cap Value Category is generally representative of mutual funds that primarily invest in small (small capitalization) U.S. companies that are less expensive or growing more slowly than other small-cap stocks.
The Russell 2000 Value Index measures the performance of the 2000 smallest companies with lower price-to-book ratios and lower forecasted growth values. Investors cannot invest directly in an index or benchmark.
As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including underlying funds, are 2.03% for Class N, 3.03% for Class C and 2.28% for Class A. The performance data quoted here represents past performance, which is not indicative of future results. Current performance may be lower or higher than the performance data quoted. The investment return and NAV will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Total returns are calculated assuming reinvestment of all dividends and capital gains distributions, if any. The returns do not reflect the deductions of taxes a shareholder would pay on the redemption of fund shares or fund distributions. For performance information current to the most recent month-end, please call 1-800-442-4358 or visit our website www.dunham.com.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
| ||||||
Dunham Small Cap Value Fund |
|
|
|
|
|
|
|
| ||
April 30, 2013 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Security |
| Shares |
| Value |
| Security |
| Shares |
| Value |
COMMON STOCK - 96.6 % |
|
|
|
|
|
|
|
|
| |
AEROSPACE/DEFENSE - 1.9 % |
|
|
|
| INSURANCE - 12.3 % |
|
|
|
| |
Cubic Corp. |
| 4,718 |
| $ 202,732 |
| American Equity Investment Life Holding Co. | 22,990 |
| 350,368 | |
Curtiss-Wright Corp. |
| 3,960 |
| 130,046 |
| Aspen Insurance Holdings, Ltd. | 8,340 |
| 318,504 | |
|
|
|
| 332,778 |
| Endurance Specialty Holdings, Ltd. | 9,270 |
| 453,952 | |
BANKS - 11.6 % |
|
|
|
|
| Montpelier Re Holdings Ltd. | 8,300 |
| 213,808 | |
Bank of the Ozarks, Inc. |
| 6,020 |
| 246,399 |
| Primerica, Inc. |
| 7,800 |
| 264,888 |
Community Bank System, Inc. | 6,890 |
| 197,329 |
| Protective Life Corp. |
| 7,780 |
| 296,107 | |
FirstMerit Corp. |
| 16,350 |
| 280,075 |
| StanCorp Financial Group, Inc. | 5,740 |
| 247,853 | |
Fulton Financial Corp. |
| 18,460 |
| 204,168 |
|
|
|
|
| 2,145,480 |
Iberiabank Corp. |
| 5,000 |
| 228,100 |
| MINING - 2.1 % |
|
|
|
|
Trustmark Corp. |
| 8,200 |
| 201,310 |
| Compass Minerals International, Inc. | 4,308 |
| $ 372,814 | |
Webster Financial Corp. |
| 8,340 |
| 194,906 |
|
|
|
|
|
|
Westamerica Bancorporation | 6,395 |
| 277,479 |
| MISCELLANEOUS MANUFACTURING - 2.0 % |
|
| |||
Wintrust Financial Corp. |
| 5,323 |
| 190,883 |
| Actuant Corp. |
| 10,920 |
| 341,796 |
|
|
|
| 2,020,649 |
|
|
|
|
|
|
CHEMICALS - 2.6 % |
|
|
|
|
| OIL & GAS - 1.9 % |
|
|
|
|
Innophos Holdings, Inc. |
| 3,260 |
| 167,271 |
| Berry Petroleum, Co. Cl A | 6,820 |
| 326,746 | |
Sensient Technologies Corp. | 7,290 |
| 286,861 |
|
|
|
|
|
| |
|
|
|
| 454,132 |
| REITS - 6.2 % |
|
|
|
|
COMMERCIAL SERVICES - 4.9 % |
|
|
|
| CubeSmart |
| 13,380 |
| 235,087 | |
Brink's Co. |
| 12,530 |
| 332,170 |
| DuPont Fabros Technology, Inc. | 9,550 |
| 240,087 | |
MAXIMUS, Inc. |
| 6,530 |
| 520,376 |
| Government Properties Income Trust | 9,180 |
| 239,139 | |
|
|
|
| 852,546 |
| Hatteras Financial Corp. | 6,670 |
| 182,291 | |
DISTRIBUTION/WHOLESALE - 1.4 % |
|
|
|
| LTC Properties, Inc. |
| 3,890 |
| 180,885 | |
Owens & Minor, Inc. |
| 7,303 |
| 237,859 |
|
|
|
|
| 1,077,489 |
|
|
|
|
|
| REITS - OFFICE PROPERTY - 1.7 % |
|
|
| |
ELECTRIC - 5.5 % |
|
|
|
|
| Brandywine Realty Trust |
| 20,320 |
| 303,378 |
El Paso Electric Co. |
| 7,200 |
| 269,712 |
|
|
|
|
|
|
Portland General Electric, Co. | 12,110 |
| 390,548 |
| RETAIL - 5.2 % |
|
|
|
| |
UNS Energy Corp. |
| 6,000 |
| 305,760 |
| Brown Shoe Co., Inc. |
| 15,500 |
| 262,105 |
|
|
|
| 966,020 |
| Cato Corp./The |
| 6,850 |
| 164,469 |
ELECTRICAL COMPONENTS & EQUIPMENT - 1.6 % |
|
|
| CEC Entertainment, Inc. |
| 5,190 |
| 173,190 | ||
Belden, Inc. |
| 5,500 |
| 271,810 |
| Texas Roadhouse Inc. - Cl. A | 13,100 |
| 307,850 | |
|
|
|
|
|
|
|
|
|
| 907,614 |
ELECTRONICS - 1.5 % |
|
|
|
|
| RETAIL - APPAREL - 3.6 % |
|
|
| |
Brady Corp. |
| 3,500 |
| 118,580 |
| Finish Line, Inc. Cl A |
| 13,250 |
| 256,917 |
CTS Corp. |
| 13,090 |
| 139,409 |
| Regis Corp. |
| 9,450 |
| 177,188 |
|
|
|
| 257,989 |
| Stage Stores, Inc. |
| 6,902 |
| 191,116 |
FOREST PRODUCTS & PAPER - 4.9 % |
|
|
|
|
|
|
|
| 625,221 | |
Buckeye Technologies, Inc. | 10,395 |
| 390,748 |
| RETAIL - CONVENIENCE STORE - 1.6 % |
|
|
| ||
Schweitzer-Mauduit International, Inc. | 11,610 |
| 467,767 |
| Casey's General Stores, Inc. | 4,900 |
| 283,759 | ||
|
|
|
| 858,515 |
|
|
|
|
|
|
HEALTHCARE-PRODUCTS - 4.3 % |
|
|
|
| RETAIL - RESTAURANTS - 1.8 % |
|
|
| ||
Meridian Bioscience, Inc. | 7,450 |
| 151,160 |
| Bob Evans Farms, Inc. |
| 7,471 |
| 323,793 | |
West Pharmaceutical Services, Inc. | 9,400 |
| 600,284 |
|
|
|
|
|
| |
|
|
|
| 751,444 |
| RETAIL - SPECIALTY - 1.8 % |
|
|
| |
HOUSEHOLD PRODUCTS - 1.2 % |
|
|
|
| Cash America International, Inc. | 7,260 |
| 316,754 | ||
Toro Co. |
| 4,660 |
| 209,747 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
| ||||||
Dunham Small Cap Value Fund (Continued) |
|
|
|
|
|
| ||||
April 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
| Shares |
| Value |
| Security |
| Shares |
| Value |
SAVINGS & LOANS - 0.9 % |
|
|
|
| TRANSPORTATION - 4.7 % |
|
|
| ||
Washington Federal, Inc. | 9,250 |
| 158,823 |
| Bristow Group, Inc. |
| 3,900 |
| $ 246,480 | |
|
|
|
|
|
| Gulfmark Offshore, Inc |
| 4,650 |
| 193,533 |
SEMICONDUCTORS - 1.8 % |
|
|
|
| Tidewater, Inc. |
| 7,278 |
| 381,731 | |
Cypress Semiconfuctor Corp. | 11,266 |
| 113,674 |
|
|
|
|
| 821,744 | |
Intersil Corp. - Cl. A |
| 25,861 |
| 200,681 |
|
|
|
|
|
|
|
|
|
| 314,355 |
| TOTAL COMMON STOCK (Cost - $12,903,036) |
| 16,859,985 | ||
SHIPBUILDING - 1.7 % |
|
|
|
|
|
|
|
|
|
|
Huntington Ingalls Industries, Inc | 5,600 |
| 296,240 |
| SHORT-TERM INVESTMENT - 3.4 % |
|
|
| ||
|
|
|
|
|
| MONEY MARKET FUND - 3.4 % |
|
|
| |
SOFTWARE - 1.3 % |
|
|
|
|
| Fidelity Institutional Money Market Fund - |
|
|
| |
Blackbaud, Inc. |
| 8,020 |
| 235,066 |
| Government Portfolio - 0.01% + |
|
|
| |
|
|
|
|
|
| (Cost - $596,498) |
| 596,498 |
| $ 596,498 |
TELECOMMUNICATIONS - 4.6 % |
|
|
|
|
|
|
|
|
| |
NICE-Systems Ltd - ADR |
| 7,100 |
| 251,837 |
| TOTAL INVESTMENTS - 100.0 % (Cost - $13,499,534) |
| $17,456,483 | ||
Plantronics, Inc. |
| 12,405 |
| 543,587 |
| LIABILITIES IN EXCESS OF OTHER ASSETS - (0.0) % |
| (384) | ||
|
|
|
| 795,424 |
| NET ASSETS - 100.0% |
|
|
| $17,456,099 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| + Variable rate security, Interest rates as of April 30, 2013. | ||||
|
|
|
|
|
| ADR - American Depositary Receipt |
|
|
| |
|
|
|
|
|
| REIT - Real Estate Investment Trust |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Portfolio Composition * - (Unaudited) | ||||||||||
Financial |
| 32.69% |
|
|
|
| Utilities |
|
| 5.53% |
Consumer, Cyclical |
| 16.64% |
|
|
|
| Communications |
|
| 4.56% |
Industrial |
| 13.30% |
|
|
|
| Short-Term Investment |
| 3.42% | |
Basic Materials |
| 9.65% |
|
|
|
| Technology |
|
| 3.15% |
Consumer, Non-Cyclical |
| 9.19% |
|
|
|
| Energy |
|
| 1.87% |
|
|
|
|
|
|
| Total |
|
| 100.00% |
* Based on total value of investments as of April 30, 2013. |
|
|
|
|
|
|
|
| ||
Percentage may differ from Schedule of Investments which is based on Fund net assets. |
See accompanying notes to financial statements.
Dunham Small Cap Growth Fund
Message from the Sub-Adviser (Pier Capital, LLC)
Small cap growth equities, as measured by the Russell 2000 Growth Index, finished the first half of the fiscal year ending April 30, 2013, up 16.6 percent. Growth stocks in the small cap space outpaced their larger cap peers, as measured by the Russell 1000 Growth Index, by 3.2 percentage points over this same six-month period. The relative outperformance occurred in the first fiscal quarter, as small cap growth equities, which are historically more volatile than large cap growth equities, experienced a stronger run-up than the broader market.
The Sub-Adviser ended the first fiscal quarter with overweight allocations to the energy and technology sectors. Two of the largest holdings within the sector contributed greatly to performance for the six-month period. Splunk, Inc. (SPLK), a company which produces software to analyze machine-generated big data, gained 45.6 perfect for the six-month period as investors flocked to the newly public company’s stock. Maximus, Inc. (MMS), a company which provides business process services to government agencies, gained 44.8 percent for the six-month period ending April 30, 2013. The Sub-Adviser’s overall investment approach continues to target firms with secular market catalysts and novel product creation that can initially drive top-line sales, as well as eventually expanding bottom-line margins and revenue.
By the close of the second fiscal quarter, the Fund had an approximate 5 percent overweight allocation to the technology sector. An underweight to financial and real estate stocks also detracted from performance, though stock selection also played a significant role in the performance of that sector within the fund. Zillow, Inc. (Z), an online real estate database, performed strongly with returns of 57.5 percent. Financial Engines, Inc. (FNGN), an investment advice provider, rose 51.7 percent for the six-month period as earnings results exceeded analyst expectations. However, some other holdings within the sector detracted significantly from the fund’s performance for the six-month period. Walter Investment Management, Inc. (WAC), a business services provider to the mortgage industry, fell 30.6 percent in the six months ended April 30, 2013. Taylor Capital Group, Inc. (TAYC), a bank holding corporation, fell 21.6 percent for the six-month period, hurting the Fund’s sector performance.
Red Robin Gourmet Burgers, Inc. (RRGB), a chain of casual dining restaurants, is a turnaround story with a new concept called Burgerworks and new management has helped the company recover more. Marketing towards the “bar scene” instead of families has also been a successful move for the company. As a result, the stock rose 44.9 percent for the six-month period. E2open, Inc. (EOPN) a provider of cloud-based, on-demand software solutions, hurt performance of the Fund significantly with a drop of 18.8 percent for the six-month period.
The markets have been stronger this year and the reactions to bad news from Europe or Asia seem to be less significant. The Sub-Adviser believes that the European real estate market is starting to recover and economic fundamentals are beginning to pick up. They remain cautiously optimistic for the next quarter that the recovery in Europe will also cause exports from China to increase, causing a global push upwards for equities. The Sub-Adviser believes that if the issues in government (such as the Sequester, Fiscal Cliff, etc.) happen gradually, they will not have a significant effect on the markets.
Growth of $10,000 Investment - (Unaudited)
Total Returns as of April 30, 2013
| Six Months | One Year | Annualized Three Years | Annualized Five Years | Annualized Since Inception (12/10/04) |
Class N | 11.91% | 7.07% | 8.39% | 6.41% | 6.31% |
Class C Class A with load of 5.75% Class A without load | 11.26% 5.28% 11.74% | 5.97% 0.63% 6.78% | 7.29% 6.01% 8.13% | 5.35% 4.90% 6.16% | 5.26% 4.36%* 5.35%* |
Morningstar Small Cap Growth Category | 13.79% | 11.21% | 11.08% | 6.02% | 5.63% |
Russell 2000 Growth Index | 16.60% | 15.67% | 12.94% | 7.81% | 6.87% |
*Class A commenced operations on January 3, 2007.
The Morningstar Small Cap Growth Category is generally representative of mutual funds that primarily invest in small (small capitalization) U.S. companies that are projected to grow faster than other small-cap stocks.
The Russell 2000 Growth Index measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. Investors cannot invest directly in an index or benchmark.
As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including the cost of underlying funds, are 1.35% for Class N, 2.35% for Class C and 1.60% for Class A. The performance data quoted here represents past performance, which is not indicative of future results. Current performance may be lower or higher than the performance data quoted. The investment return and NAV will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Total returns are calculated assuming reinvestment of all dividends and capital gains distributions, if any. The returns do not reflect the deductions of taxes a shareholder would pay on the redemption of fund shares or fund distributions. For performance information current to the most recent month-end, please call 1-800-442-4358 or visit our website www.dunham.com.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
| |||||
Dunham Small Cap Growth Fund |
|
|
|
|
|
|
|
|
|
|
April 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
| Shares |
| Value |
| Security |
| Shares |
| Value |
COMMON STOCK - 99.0 % |
|
|
|
|
|
|
|
|
|
|
AIRLINES - 0.9 % |
|
|
|
|
| FOOD - 1.6 % |
|
|
|
|
Spirit Airlines, Inc. * |
| 7,676 |
| $ 204,949 |
| The Fresh Market, Inc. * |
| 3,757 |
| $ 153,774 |
|
|
|
|
|
| The Hain Celestial Group, Inc. * |
| 3,065 |
| 199,991 |
APPAREL - 2.8 % |
|
|
|
|
|
|
|
|
| 353,765 |
Coach, Inc. |
| 3,672 |
| 216,134 |
| HEALTHCARE-PRODUCTS - 4.6 % |
|
|
|
|
Michael Kors Holdings Ltd. * |
| 3,283 |
| 186,934 |
| Cynosure, Inc. - Cl. A * |
| 7,048 |
| 182,261 |
Steven Madden Ltd. * |
| 4,178 |
| 203,176 |
| DexCom, Inc. * |
| 13,134 |
| 215,529 |
|
|
|
| 606,244 |
| GenMark Diagnostics, Inc. * |
| 6,741 |
| 104,823 |
BANKS - 1.7 % |
|
|
|
|
| Insulet Corp. * |
| 7,610 |
| 192,077 |
Signature Bank * |
| 2,389 |
| 171,076 |
| Novadaq Technologies, Inc. * |
| 4,972 |
| 66,973 |
SVB Financial Group * |
| 2,761 |
| 196,335 |
| Sirona Dental Systems, Inc. * |
| 3,213 |
| 236,284 |
|
|
|
| 367,411 |
|
|
|
|
| 997,947 |
BUILDING MATERIALS - 2.1 % |
|
|
|
|
| HEALTHCARE-SERVICES - 3.5 % |
|
|
| |
Builders FirstSource, Inc. * |
| 36,314 |
| 224,784 |
| Acadia Healthcare Co., Inc. * |
| 6,528 |
| 205,959 |
Fortune Brands Home & Security, Inc. * |
| 6,272 |
| 228,238 |
| Air Methods Corp. |
| 4,041 |
| 147,860 |
|
|
|
| 453,022 |
| ICON PLC * |
| 6,533 |
| 209,840 |
CHEMICALS - 1.0 % |
|
|
|
|
| LifePoint Hospitals, Inc. * |
| 3,977 |
| 190,896 |
Methanex Corp. |
| 5,187 |
| 219,825 |
|
|
|
|
| 754,555 |
|
|
|
|
|
| HOME BUILDERS - 1.8 % |
|
|
| |
COMMERCIAL SERVICES - 8.3 % |
|
|
|
|
| KB Home |
| 9,569 |
| 215,685 |
Alliance Data Systems Corp. * |
| 1,350 |
| 231,890 |
| TRI Pointe Homes, Inc. * |
| 9,085 |
| 172,615 |
Cardtronics, Inc. * |
| 6,124 |
| 171,533 |
|
|
|
|
| 388,300 |
ExlService Holdings, Inc. * |
| 2,939 |
| 95,870 |
| HOME FURNISHINGS - 1.6 % |
|
|
|
|
MAXIMUS, Inc. |
| 3,750 |
| 298,838 |
| American Woodmark Corp. * |
| 3,759 |
| 126,490 |
Sotheby's |
| 7,960 |
| 282,421 |
| Select Comfort Corp. * |
| 10,723 |
| 227,542 |
Team Health Holdings, Inc. * |
| 6,735 |
| 251,081 |
|
|
|
|
| 354,032 |
Towers Watson & Co. |
| 3,171 |
| 231,229 |
| HOUSEHOLD PRODUCTS/WARES - 1.8 % |
|
|
| |
United Rentals, Inc. * |
| 4,247 |
| 223,435 |
| SodaStream International Ltd. * |
| 3,700 |
| 199,208 |
|
|
|
| 1,786,297 |
| Tumi Holdings, Inc. * |
| 7,836 |
| 180,463 |
COMPUTERS - 4.3 % |
|
|
|
|
|
|
|
|
| 379,671 |
3D Systems Corp. * |
| 5,960 |
| 227,911 |
| INTERNET - 2.9 % |
|
|
|
|
FleetMatics Group PLC * |
| 8,253 |
| 193,698 |
| Dealertrack Technologies, Inc. * |
| 6,273 |
| 174,703 |
Netscout Systems, Inc. * |
| 8,029 |
| 183,142 |
| HealthStream, Inc. * |
| 8,949 |
| 205,469 |
Qualys, Inc. * |
| 7,582 |
| 83,402 |
| Pandora Media, Inc. * |
| 6,601 |
| 91,952 |
Stratasys Ltd. * |
| 2,926 |
| 243,004 |
| SPS Commerce, Inc. * |
| 3,163 |
| 149,072 |
|
|
|
| 931,157 |
|
|
|
|
| 621,196 |
COSMETICS/PERSONAL CARE - 0.9 % |
|
|
|
|
| LEISURE TIME - 1.1 % |
|
|
|
|
Elizabeth Arden, Inc. * |
| 4,734 |
| 193,857 |
| Arctic Cat, Inc. * |
| 5,101 |
| 229,494 |
|
|
|
|
|
|
|
|
|
|
|
DIVERSIFIED FINANCIAL SERVICES - 3.5 % |
|
|
| MACHINERY-DIVERSIFIED - 2.0 % |
|
|
|
| ||
Blackhawk Network Holdings, Inc. - Cl. A * | 7,449 |
| 178,329 |
| Cognex Corp. |
| 4,419 |
| 175,434 | |
Financial Engines, Inc. |
| 5,813 |
| 211,419 |
| Lindsay Corp. |
| 3,351 |
| 257,424 |
Portfolio Recovery Associates, Inc. * |
| 2,103 |
| 258,143 |
|
|
|
|
| 432,858 |
WisdomTree Investments, Inc. * |
| 8,714 |
| 101,083 |
| MEDIA - 1.9 % |
|
|
|
|
|
|
|
| 748,974 |
| AMC Networks, Inc. * |
| 3,144 |
| 198,103 |
ELECTRICAL COMPONENTS & EQUIPMENT - 0.9 % |
|
|
| Scripps Networks Interactive, Inc. |
| 3,076 |
| 204,800 | ||
Acuity Brands, Inc. |
| 2,602 |
| 189,842 |
|
|
|
|
| 402,903 |
|
|
|
|
|
| METAL FABRICATE/HARDWARE - 0.9 % |
|
| ||
ELECTRONICS - 2.9 % |
|
|
|
|
| Sun Hydraulics Corp. |
| 5,775 |
| 189,131 |
FARO Technologies, Inc. * |
| 6,448 |
| 250,118 |
|
|
|
|
|
|
Imax Corp. * |
| 8,276 |
| 211,286 |
| OFFICE FURNISHINGS - 0.8 % |
|
|
|
|
National Instruments Corp. |
| 6,163 |
| 168,435 |
| Knoll, Inc. |
| 10,452 |
| 162,633 |
|
|
|
| 629,839 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
| ||||
Dunham Small Cap Growth Fund (Continued) |
|
|
|
|
|
| ||||
April 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
| Shares |
| Value |
| Security |
| Shares |
| Value |
OIL & GAS - 6.6 % |
|
|
|
|
| SOFTWARE - 9.0 % |
|
|
|
|
Continental Resources, Inc. * |
| 2,572 |
| $ 205,554 |
| Aspen Technology, Inc. * |
| 6,213 |
| $ 189,372 |
Diamondback Energy, Inc. * |
| 7,763 |
| 203,856 |
| CommVault Systems, Inc. * |
| 2,296 |
| 168,848 |
Gulfport Energy Corp. * |
| 4,324 |
| 225,670 |
| Cornerstone OnDemand, Inc. * |
| 5,892 |
| 213,762 |
Hercules Offshore, Inc. * |
| 26,926 |
| 198,445 |
| Demandware, Inc. * |
| 11,333 |
| 309,391 |
Laredo Petroleum Holdings, Inc. * |
| 10,928 |
| 187,962 |
| E2open, Inc. * |
| 15,019 |
| 213,420 |
Oasis Petroleum, Inc. * |
| 5,585 |
| 191,175 |
| Medidata Solutions, Inc. * |
| 3,925 |
| 260,463 |
SM Energy Co. |
| 3,369 |
| 205,509 |
| Omnicell, Inc. * |
| 10,366 |
| 186,795 |
|
|
|
| 1,418,171 |
| QLIK Technologies, Inc. * |
| 7,724 |
| 200,901 |
OIL & GAS SERVICES - 0.9 % |
|
|
|
|
| SciQuest, Inc. * |
| 8,754 |
| 200,116 |
Dril-Quip, Inc. * |
| 2,224 |
| 186,171 |
|
|
|
|
| 1,943,068 |
|
|
|
|
|
| TELECOMMUNICATIONS - 4.2 % |
|
|
|
|
PHARMACEUTICALS - 3.6 % |
|
|
|
|
| Aruba Networks, Inc. * |
| 7,719 |
| 173,600 |
Ironwood Pharmaceuticals, Inc. - Cl. A * |
| 5,070 |
| 77,115 |
| Infinera Corp. * |
| 22,478 |
| 189,265 |
Jazz Pharmaceuticals Plc * |
| 3,098 |
| 180,768 |
| IPG Photonics Corp. |
| 3,083 |
| 196,325 |
Keryx Biopharmaceuticals, Inc. * |
| 13,574 |
| 110,628 |
| Ixia * |
| 8,786 |
| 144,705 |
Pacira Pharmaceuticals, Inc. * |
| 3,636 |
| 104,971 |
| Palo Alto Networks, Inc. * |
| 3,764 |
| 203,632 |
Pharmacyclics, Inc. * |
| 2,627 |
| 214,101 |
|
|
|
|
| 907,527 |
Sagent Pharmaceuticals, Inc. * |
| 5,618 |
| 92,922 |
| TRANSPORTATION - 4.4 % |
|
|
|
|
|
|
|
| 780,505 |
| Bristow Group, Inc. |
| 1,433 |
| 90,566 |
RETAIL - 12.6 % |
|
|
|
|
| Echo Global Logistics, Inc. * |
| 9,900 |
| 171,765 |
Buffalo Wild Wings, Inc. * |
| 2,280 |
| 205,200 |
| Old Dominion Freight Line, Inc. * |
| 6,110 |
| 235,235 |
Conn's, Inc. * |
| 5,108 |
| 221,227 |
| Roadrunner Transportation Systems, Inc. * | 12,358 |
| 278,179 | |
Del Frisco's Restaurant Group, Inc. * |
| 5,857 |
| 99,042 |
| Swift Transportation Co. - Cl. A * |
| 13,021 |
| 182,554 |
DSW, Inc. - Cl. A |
| 3,095 |
| 204,641 |
|
|
|
|
| 958,299 |
Fifth & Pacific Cos, Inc. * |
| 10,596 |
| 218,490 |
| TOTAL COMMON STOCK |
|
|
|
|
Five Below, Inc. * |
| 5,043 |
| 181,498 |
| (Cost - $18,401,304) |
|
|
| 20,699,753 |
Francesca's Holdings Corp. * |
| 6,508 |
| 185,868 |
|
|
|
|
|
|
GNC Holdings, Inc. - Cl. A |
| 6,282 |
| 284,763 |
| SHORT-TERM INVESTMENT - 3.1 % |
|
|
|
|
Lithia Motors, Inc. |
| 5,754 |
| 284,938 |
| MONEY MARKET FUND - 3.1 % |
|
|
|
|
Pier 1 Imports, Inc. |
| 8,473 |
| 196,658 |
| Fidelity Institutional Money Market Fund - Government Portfolio, 0.01% + |
|
|
| |
Red Robin Gourmet Burgers, Inc. * |
| 4,059 |
| 196,334 |
| 674,238 |
| 674,238 | ||
Tile Shop Holdings, Inc. * |
| 9,903 |
| 245,594 |
| TOTAL SHORT-TERM INVESTMENT (Cost - $674,238) | ||||
Tilly's, Inc. - Cl. A * |
| 14,168 |
| 204,586 |
|
|
|
|
|
|
|
|
|
| 2,728,839 |
| TOTAL INVESTMENTS - 99.0 % |
|
|
|
|
SEMICONDUCTORS - 0.8 % |
|
|
|
|
| (Cost - $19,075,542) |
|
|
| $ 21,373,991 |
Semtech Corp. * |
| 5,590 |
| 179,271 |
| OTHER ASSETS LESS LIABILITIES - 1.0 % |
| 206,492 | ||
|
|
|
|
|
| NET ASSETS - 100.0 % |
|
|
| $ 21,580,483 |
* Non-Income producing security. |
|
|
|
|
|
|
|
|
|
|
+ Variable rate security. Interest rate is as of April 30, 2013. |
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio Composition * (Unaudited) | ||||||||||
Consumer, Non-Cyclical |
|
|
| 24.55% |
| Energy |
|
|
| 7.50% |
Consumer, Cyclical |
|
|
| 21.87% |
| Financial |
|
|
| 5.22% |
Technology |
|
|
| 14.29% |
| Short-Term Investment |
|
|
| 3.15% |
Industrial |
|
|
| 13.35% |
| Basic Materials |
|
|
| 1.03% |
Communications |
|
|
| 9.04% |
| Total |
|
|
| 100.00% |
|
|
|
|
|
|
|
|
|
|
|
* Based on total value of investments as of April 30, 2013. |
|
|
|
|
|
|
|
| ||
Percentage may differ from Schedule of Investments which is based on Fund net assets. |
|
|
|
|
See accompanying notes to financial statements.
Dunham Emerging Markets Stock Fund
Message from the Sub-Adviser (Marvin & Palmer Associates, Inc.)
The MSCI Emerging Markets Index showed positive performance in the six-month period ending April 30, 2013, increasing by 5.3 percent despite negative performance in the later months. The Philippines, Mexico, and Thailand were the top performing countries in the Fund as Indonesia and Turkey lagged. The financial service and industrial sectors added the most value while utilities detracted from performance.
The Fund continued to overweight the Philippines, which was the top contributor to performance. The Sub-Adviser held a 9.5 percent position in the country while the benchmark index has only a 1.0 percent weighting. The severe overweight to the country was the main driver of outperformance since Philippine holdings in the Fund performed in-line with benchmark holdings in the country. Philippine stocks within the benchmark gained more than 30 percent in the six-month period ending April 30, 2013, outperforming all other countries by an extremely wide margin. SM Investments Corporation (SVTMF), a firm that engages in shopping mall development, retail, financial services, real estate development and hotels and conventions businesses, increased more than 31 percent during the time period studied and was the largest contributor to performance in the Fund. The Sub-Adviser plans to maintain a severe overweight to the Philippines, as it believes the country has a strong fiscal position and is in the middle of a credit expansion cycle that should lead to more domestic consumption.
Holdings in Indonesia detracted somewhat from performance due mainly to a moderate underweight to the country while security selection was neutral. Astra International tbk PT (PTAIY), a conglomerate with divisions in automotive, financial services, heavy equipment, mining and energy, agribusiness, information technology, and infrastructure, declined by nearly 11 percent in the over the fiscal quarter.
Exposure to Mexico enhanced performance on both an absolute and relative basis, due solely to selections that outperformed Mexican stocks contained in the index by more than 10 percent. Fomento Economico Mex-Sp ADR (FMX), a soft drink producer and distributor, increased nearly 27 percent in the six-month period ending April 30, 2013.
Turkish stocks detracted somewhat from performance on a relative basis, due to selection, as the Fund was equally weighted toward the index. The stocks picked in this country still outperformed the index on an absolute basis, however. Turkcell Iletisim Hizmetleri AS (TKC), a cellular communications firm, was one of the underperformers that gained just under 3 percent during the time period studied. The Sub-Adviser believes the stock to be undervalued and will hold the position for foreseeable future.
Thailand was the third largest contributor to performance in the six-month period ending April 30, 2013. The Sub-Adviser maintained a strong overweight to the country and outperformed Thai stocks held on the benchmark index by a wide margin. Advanced Info Service Public Company Limited (AVIFY), a telecommunications firm, gained more than 48 percent during the period and added 0.7 percent to the total return of the Fund.
The financial service sector added a full 2.5 percent to performance, due to an overweight and outperformance over financial stocks held in the index. Financials is the largest sector weighting on the index at more than 27 percent. Bangkok Bank Public Company Limited (BKKPF), a Thai commercial bank owned by the Fund, gained nearly 26 percent in the six-month period ending April 30, 2013. The industrial sector also added value as the Sub-Adviser overweighted the sector moderately and outperformed industrial stocks within the index by nearly 20 percent, adding 1.4 percent to performance. The utilities detracted slightly from performance, mainly due to stock selection. CEZ A.S. (CZAVF), an electric utility based in the Czech Republic, declined by nearly 15 percent in the time period studied.
Going forward, the Sub-Adviser believes the MSCI Emerging Markets Index will continue to be impacted by slowing global growth and an index that is heavily weighted commodities, energy and industrials, but is still optimistic about the prospects for many emerging markets nations, believing that emerging markets stocks overall are reasonably priced relative to historical data with many very attractive opportunities. No material changes are planned for the Fund. The focus will continue to be on emerging markets countries with favorable monetary policy, political reforms that promote domestic consumption and demographics that can support such consumption.
Growth of $10,000 Investment - (Unaudited)
Total Returns as of April 30, 2013
| Six Months | One Year | Annualized Three Years | Annualized Five Years | Annualized Since Inception (12/10/04) |
Class N | 9.70% | 8.83% | 2.37% | (0.88)% | 8.86% |
Class C Class A with load of 5.75% Class A without load | 9.20% 3.26% 9.57% | 7.81% 2.27% 8.53% | 1.36% 0.11% 2.10% | (1.86)% (2.32)% (1.15)% | 7.80% 0.34%* 1.29%* |
Morningstar Diversified Emerging Markets Category | 7.27% | 6.08% | 3.20% | (1.33)% | 10.31% |
MSCI Emerging Markets Index | 5.29% | 3.97% | 3.12% | (0.33)% | 11.63% |
*Class A commenced operations on January 3, 2007.
The Morningstar Diversified Emerging Markets Category is generally representative of mutual funds that primarily invest among 20 or more developing nations, with a general focus on the emerging markets of Asia and Latin America rather than on the emerging markets countries in the Middle East, Africa, or Europe.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. Investors cannot invest directly in an index or benchmark.
As disclosed in the Trust’s latest registration statement, the Fund’s total annual operating expenses, including underlying funds, are 1.76% for Class N, 2.76% for Class C and 2.01% for Class A. The performance data quoted here represents past performance, which is not indicative of future results. Current performance may be lower or higher than the performance data quoted. The investment return and NAV will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Total returns are calculated assuming reinvestment of all dividends and capital gains distributions, if any. The returns do not reflect the deductions of taxes a shareholder would pay on the redemption of fund shares or fund distributions. For performance information current to the most recent month-end, please call 1-800-442-4358 or visit our website www.dunham.com.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
|
|
| ||
Dunham Emerging Markets Stock Fund |
|
|
|
|
|
|
|
|
|
| |
April 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
| Shares |
| Value |
| Security |
|
| Shares |
| Value |
COMMON STOCK - 90.6 % |
|
|
|
|
|
|
|
|
|
|
|
AUTO MANUFACTURERS - 1.7 % |
|
|
|
| DIVERSIFIED FINANCIAL SERVICES - 1.8 % |
|
|
| |||
Brilliance China Automotive Holdings Ltd. * | 411,200 |
| $ 504,483 |
| Chinatrust Financial Holding Co. Ltd. |
| 593,276 |
| $ 331,587 | ||
|
|
|
|
|
| Shriram Transport Finance Co Ltd * |
| 14,900 |
| 206,420 | |
AUTO PARTS & EQUIPMENT - 0.5 % |
|
|
|
|
|
|
|
|
| 538,007 | |
Hyundai Mobis |
| 720 |
| 163,709 |
| ELECTRIC - 1.0 % |
|
|
|
|
|
|
|
|
|
|
| Infraestructura Energetica Nova SAB de CV * |
| 40,000 |
| 136,569 | |
BANKS - 15.5 % |
|
|
|
|
| Korea Electric Power Corp. * |
|
| 5,100 |
| 147,047 |
Banco Bradesco SA - ADR |
| 12,650 |
| 209,864 |
|
|
|
|
|
| 283,616 |
Bangkok Bank PCL - NVDR |
| 29,500 |
| 228,188 |
| ELECTRONICS - 2.7 % |
|
|
|
|
|
Banregio Grupo Financiero SAB de CV * | 21,400 |
| 117,812 |
| AAC Technologies Holdings, Inc. |
| 80,000 |
| 391,567 | ||
BDO Unibank, Inc. * |
| 111,646 |
| 248,750 |
| Hon Hai Precision Industry Co. Ltd. |
| 76,200 |
| 196,773 | |
Credicorp Ltd. |
| 1,300 |
| 195,767 |
| TPK Holding Co. Ltd. |
|
| 11,000 |
| 223,582 |
FirstRand Ltd. |
| 76,400 |
| 265,602 |
|
|
|
|
|
| 811,922 |
Grupo Financiero Banorte SAB de CV | 47,000 |
| 353,889 |
| ENGINEERING & CONSTRUCTION - 1.2 % |
|
|
|
| ||
ICICI Bank Ltd. - ADR |
| 5,600 |
| 262,192 |
| China State Construction International Holdings Ltd. | 244,000 |
| 355,962 | ||
Industrial & Commercial Bank of China Ltd. | 400,000 |
| 281,946 |
|
|
|
|
|
|
| |
Kasikornbank PCL - NVDR |
| 30,700 |
| 222,698 |
| ENTERTAINMENT - 1.1% |
|
|
|
|
|
Metropolitan Bank & Trust |
| 175,969 |
| 532,231 |
| Bloomberry Resorts Corp. * |
|
| 1,101,500 |
| 321,174 |
Sberbank of Russia OAO - ADR * | 13,000 |
| 167,180 |
|
|
|
|
|
|
| |
Sberbank of Russia - ADR * |
| 12,100 |
| 155,606 |
| ENVIRONMENTAL - 0.4% |
|
|
|
|
|
Security Bank Corp. |
| 75,800 |
| 363,108 |
| China Everbright International Ltd |
| 153,000 |
| 118,093 | |
Siam Commercial Bank PCL - NVDR | 79,000 |
| 502,723 |
|
|
|
|
|
|
| |
Turkiye Garanti Bankasi AS |
| 17,900 |
| 195,351 |
| FOOD - 2.2 % |
|
|
|
|
|
Turkiye Halk Bankasi AS |
| 44,300 |
| 244,978 |
| BRF SA |
|
| 6,000 |
| 148,905 |
|
|
|
| 4,547,885 |
| Cosan SA Industria e Comercio |
| 13,400 |
| 316,208 | |
BEVERAGES - 3.4 % |
|
|
|
|
| Magnit OJSC - GDR * |
|
| 4,000 |
| 204,201 |
Cia de Bebidas das Americas - ADR | 9,600 |
| 403,392 |
|
|
|
|
|
| 669,314 | |
Coca-Cola Femsa SAB de CV - ADR | 800 |
| 129,096 |
| HEALTHCARE-PRODUCTS - 1.6 % |
|
|
|
| ||
Fomento Economico Mexicano SAB de CV - ADR | 4,300 |
| 487,577 |
| Aspen Pharmacare Holdings Ltd. |
| 22,500 |
| 488,933 | ||
|
|
|
| 1,020,065 |
|
|
|
|
|
|
|
BUILDING MATERIALS - 1.7 % |
|
|
|
| HOLDING COMPANIES-DIVERSIFIED - 4.0 % |
|
|
| |||
Indocement Tunggal Prakarsa Tbk PT | 126,000 |
| 342,446 |
| Alfa SAB de CV |
|
| 207,900 |
| 482,279 | |
Semen Gresik Persero Tbk PT | 84,500 |
| 159,958 |
| Ayala Corp. |
|
| 21,268 |
| 331,291 | |
|
|
|
| 502,404 |
| Imperial Holdings Ltd. |
|
| 9,500 |
| 210,445 |
CHEMICALS - 1.2 % |
|
|
|
|
| Siam Cement PCL- NVDR |
|
| 11,100 |
| 181,429 |
Mexichem SAB de CV |
| 31,700 |
| 161,577 |
|
|
|
|
|
| 1,205,444 |
Ultrapar Participacoes SA |
| 7,300 |
| 194,160 |
| HOME BUILDERS - 1.3 % |
|
|
|
|
|
|
|
|
| 355,737 |
| Land and Houses PCL - NVDR |
| 839,000 |
| 375,951 | |
COMMERCIAL SERVICES - 4.5 % |
|
|
|
|
|
|
|
|
|
| |
Cielo SA |
| 14,760 |
| 389,182 |
| HOME PRODUCTS/WARES - 0.4 % |
|
|
|
| |
Estacio Participacoes SA |
| 16,000 |
| 379,642 |
| Kimberly-Clark de Mexico SAB de CV |
| 35,200 |
| 123,164 | |
Mills Estruturas e Servicos de Engenharia SA | 9,200 |
| 151,233 |
|
|
|
|
|
|
| |
OHL Mexico SAB de CV * |
| 80,000 |
| 247,397 |
| INTERNET - 1.8 % |
|
|
|
|
|
Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao S.A | 10,500 |
| 194,808 |
| Tencent Holdings Ltd. |
|
| 12,400 |
| 427,754 | |
|
|
|
| 1,362,262 |
| Youku Tudou Inc. - ADR * |
|
| 5,300 |
| 107,378 |
COMPUTER - 0.7 % |
|
|
|
|
|
|
|
|
|
| 535,132 |
Sonda SA |
| 56,485 |
| 195,247 |
| LODGING - 3.1 % |
|
|
|
|
|
|
|
|
|
|
| Kangwon Land Inc. * |
|
| 7,770 |
| 219,908 |
COSMETICS / PERSONAL CARE - 0.6 % |
|
|
|
| Sands China Ltd. |
|
| 135,600 |
| 712,938 | |
LG Household & Health Care Ltd. | 300 |
| 168,699 |
|
|
|
|
|
| 932,846 | |
|
|
|
|
|
| MEDIA - 1.5 % |
|
|
|
|
|
|
|
|
|
|
| Naspers Ltd. |
|
| 6,900 |
| 462,037 |
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
|
|
| ||
Dunham Emerging Markets Stock Fund (Continued) |
|
|
|
|
|
|
|
|
| ||
April 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Security |
| Shares |
| Value |
| Security |
|
| Shares |
| Value |
MINING - 2.0 % |
|
|
|
|
| SHIPBUILDING - 1.1 % |
|
|
|
|
|
Grupo Mexico SAB de CV |
| 113,400 |
| $ 406,770 |
| Samsung Heavy Industries Co. Ltd. |
| 10,000 |
| $ 319,050 | |
KGHM Polska Miedz SA |
| 4,300 |
| 202,418 |
|
|
|
|
|
|
|
|
|
|
| 609,188 |
| SOFTWARE - 0.4 % |
|
|
|
|
|
OIL & GAS - 4.0 % |
|
|
|
|
| Linx SA |
|
| 7,000 |
| 117,343 |
China Petroleum & Chemical Corp. | 186,000 |
| 205,251 |
|
|
|
|
|
|
| |
CNOOC Ltd. |
| 104,000 |
| 194,788 |
| TELECOMMUNICATIONS - 5.3 % |
|
|
|
| |
Ecopetrol SA - ADR |
| 2,700 |
| 128,439 |
| Advanced Info Service PCL - NVDR |
| 70,800 |
| 654,080 | |
Kunlun Energy Co. Ltd. |
| 262,000 |
| 513,431 |
| Axiata Group Bhd |
|
| 64,800 |
| 144,279 |
NovaTek OAO - GDR |
| 1,700 |
| 172,040 |
| China Mobile Ltd. |
|
| 20,500 |
| 225,458 |
|
|
|
| 1,213,949 |
| SK Telecom Co Ltd |
|
| 2,120 |
| 373,179 |
OIL & GAS SERVICES - 1.9 % |
|
|
|
| Turkcell Iletisim Hizmetleri AS * |
| 32,300 |
| 201,011 | ||
Eurasia Drilling Co. Ltd. - GDR | 9,700 |
| 379,270 |
|
|
|
|
|
| 1,598,007 | |
Petrofac Ltd. - ADR |
| 9,400 |
| 197,773 |
|
|
|
|
|
|
|
|
|
|
| 577,043 |
| TOTAL COMMON STOCK (Cost - $20,636,464) |
|
| 27,057,337 | ||
REAL ESTATE - 5.8 % |
|
|
|
|
|
|
|
|
|
|
|
Ayala Land, Inc. |
| 316,300 |
| 249,614 |
| PREFERRED STOCK - 1.3 % | Dividend Rate |
|
|
| |
China Overseas Grand Oceans Group Ltd. | 146,000 |
| 230,132 |
| BANKS - 0.8 % |
|
|
|
|
| |
China Overseas Land & Investment Ltd. | 266,000 |
| 812,121 |
| Banco ABC Brasil SA |
| 1.590% | 11,500 |
| 90,381 | |
China Resources Land Ltd. |
| 90,000 |
| 272,768 |
| Itau Unibanco Holding SA * |
| 2.840% | 14,200 |
| 238,252 |
Emlak Konut Gayrimenkul Yatirim Ortakligi AS | 97,700 |
| 167,480 |
|
|
|
|
|
| 328,633 | |
|
|
|
| 1,732,115 |
|
|
|
|
|
|
|
REITS - 1.8 % |
|
|
|
|
| IRON/STEEL - 0.5 % |
|
|
|
|
|
Concentradora Fibra Hotelera Mexicana SA de CV | 96,000 |
| 195,522 |
| Vale SA |
| 4.600 | 10,200 |
| 165,682 | |
Fibra Uno Administration SA de CV | 63,000 |
| 241,899 |
|
|
|
|
|
|
| |
Macquarie Mexico Real Estate Management SA de CV * | 63,000 |
| 91,443 |
| TOTAL PREFERRED STOCK (Cost - $367,508) |
|
| 494,315 | |||
|
|
|
| 528,864 |
|
|
|
|
|
|
|
RETAIL - 6.0 % |
|
|
|
|
| WARRANTS - 5.8 % | Issued By | Maturity |
|
|
|
El Puerto de Liverpool SAB de CV | 22,500 |
| 284,340 |
| Asian Paints Ltd. * | UBS, AG | 6/7/2013 | 2,267 |
| 197,224 | |
Grupo Sanborns SA de CV * |
| 47,100 |
| 109,687 |
| HDFC Bank Ltd. * | UBS, AG | 12/16/2014 | 22,600 |
| 286,570 |
Kolao Holdings |
| 3,520 |
| 95,971 |
| ITC Ltd. * | UBS, AG | 11/17/2014 | 87,300 |
| 533,530 |
Lojas Renner SA |
| 5,600 |
| 212,667 |
| Sberbank of Russia * | UBS, AG | 12/12/2013 | 39,200 |
| 124,460 |
Puregold Price Club Inc |
| 117,400 |
| 113,784 |
| Tata Motors ltd. * | UBS, AG | 3/5/2014 | 25,300 |
| 141,055 |
SM Investments Corp |
| 27,300 |
| 759,474 |
| Yes Bank Ltd. * | UBS, AG | 3/5/2014 | 47,700 |
| 444,699 |
Wal-Mart de Mexico SAB de CV | 72,000 |
| 228,227 |
| TOTAL WARRANTS ( Cost - $1,399,779) |
| 1,727,538 | ||||
|
|
|
| 1,804,150 |
|
|
|
|
|
|
|
SEMICONDUCTORS - 8.4 % |
|
|
|
|
| SHORT-TERM INVESTMENT - 3.5 % |
|
|
|
| |
Novatek Microelectronics Corp. | 28,000 |
| 136,765 |
| MONEY MARKET FUND - 3.5 % |
|
|
|
| ||
Samsung Electronics Co Ltd. |
| 854 |
| 1,181,121 |
| First American Government Obligations Fund - 0.02%+ |
|
| |||
Taiwan Semiconductor Manufacturing Co Ltd. | 323,000 |
| 1,197,656 |
| (Cost - $1,037,142) |
|
| 1,037,142 |
| 1,037,142 | |
|
|
|
| 2,515,542 |
|
|
|
|
|
|
|
|
|
|
|
|
| TOTAL INVESTMENTS - 101.2 % (Cost - $23,440,893) |
| $ 30,316,332 | |||
|
|
|
|
|
| LIABILITIES LESS OTHER ASSETS - (1.2) % |
|
| (360,893) | ||
|
|
|
|
|
| NET ASSETS - 100.0 % |
|
|
|
| $ 29,955,439 |
* Non-income producing security. |
|
|
|
|
|
|
|
|
|
| |
+ Variable rate security. Interest rate is as of April 30, 2013. |
|
|
|
|
|
|
|
|
|
| |
REIT - Real Estate Investment Trust. |
|
|
|
|
|
|
|
|
|
| |
ADR - American Depositary Receipt. |
|
|
|
|
|
|
|
|
|
| |
GDR - Global Depositary Receipt. |
|
|
|
|
|
|
|
|
|
| |
NVDR - Non Voting Depositary Receipt. |
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
SCHEDULE OF INVESTMENTS (Unaudited) |
|
|
|
|
|
|
|
|
| ||
Dunham Emerging Markets Stock Fund (Continued) |
|
|
|
|
|
|
|
|
| ||
April 30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
Portfolio Composition * - (Unaudited) | |||||||||||
Other Countries |
| 24.00% |
|
|
| South Korea |
|
| 8.80% |
|
|
Mexico |
| 12.94% |
|
|
| Thailand |
|
| 7.14% |
|
|
Brazil |
| 10.59% |
|
|
| Taiwan |
|
| 6.88% |
|
|
Hong Kong |
| 10.00% |
|
|
| China |
|
| 5.31% |
|
|
Philippines |
| 9.63% |
|
|
| South Africa |
|
| 4.71% |
|
|
|
|
|
|
|
| Total |
|
| 100.00% |
|
|
* Based on total value of investments as of April 30, 2013. |
|
|
|
|
|
|
|
|
|
| |
Percentage may differ from Schedule of Investments which is based on Fund net assets. |
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
STATEMENTS OF ASSETS AND LIABILITIES |
|
|
|
|
|
| |||
April 30, 2013 (Unaudited) |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Dunham | Dunham |
| Dunham |
|
|
|
|
|
| Monthly | Corporate / | Dunham | Loss Averse | Dunham | Dunham | Dunham |
|
|
| Distribution | Government | High-Yield | Equity Income | Appreciation & | Large Cap | Alternative |
|
|
| Fund | Bond Fund | Bond Fund | Fund | Income Fund | Value Fund | Income Fund |
Assets: |
|
|
|
|
|
|
|
| |
Investments in securities, at cost |
| $ 214,499,968 | $ 120,951,919 | $ 149,377,198 | $ 10,287,944 | $ 20,167,593 | $ 27,904,129 | $ 3,057,204 | |
Investments in securities, at value |
| $ 227,984,450 | $ 124,672,293 | $ 156,824,704 | $ 10,422,505 | $ 22,940,937 | $ 42,436,759 | $ 3,271,635 | |
Foreign currency, at value (Cost $212,237 & $386) |
| 215,147 |
|
|
|
|
| 389 | |
Deposits with brokers |
| 8,176,059 | - | - | - | - | - | - | |
Unrealized appreciation on swap contracts |
| 4,552,555 | - | - | - | - | - | - | |
Cash |
| 22,777,989 | - | - | 2,043,339 | - | - | - | |
Receivable for securities sold |
| 6,094,643 | 276,796 | 463,819 | 805,879 | 612,994 | 36,074 | - | |
Interest and dividends receivable |
| 1,234,368 | 958,257 | 2,388,337 | 15,131 | 70,510 | 49,633 | 6,903 | |
Receivable for fund shares sold |
| 937,740 | 76,798 | 296,776 | 3,384 | 11,643 | 3,783 | - | |
Receivable for open forward foreign currency contracts |
| 1,260 | - | - | 24,540 | - | - | - | |
Prepaid expenses and other assets |
| 70,528 | 33,194 | 61,660 | - | 26,914 | 27,844 | 9,889 | |
| Total Assets |
| 272,044,739 | 126,017,338 | 160,035,296 | 13,314,778 | 23,662,998 | 42,554,093 | 3,288,816 |
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
| |
Option contracts written (premiums received $10,154,635) |
| 15,124,619 | - | - | - | - | - | - | |
Securities sold short (proceeds $17,037,346) |
| 19,712,201 | - | - | - | - | - | - | |
Cash overdraft |
| - | 115,827 | - | - | - | - | - | |
Interest payable on swaps |
| 39,888 | - | - | - | - | - | - | |
Payable for securities purchased |
| 11,644,381 | 2,369,300 | 798,369 | 692,982 | 236,165 | - | - | |
Payable for fund shares redeemed |
| 46,913 | 24,680 | 85,486 | 110,938 | 5,030 | 33,999 | - | |
Payable for open forward foreign currency contracts |
| 185,900 | - | - | - | - | - | - | |
Distributions payable |
| 59,771 | 1,791 | 75,799 | - | - | - | - | |
Payable to adviser |
| 129,579 | 55,844 | 84,338 | 7,429 | 14,382 | 24,745 | 1,725 | |
Payable to sub-adviser |
| 196,352 | 52,552 | 38,067 | 2,408 | 4,518 | - | 215 | |
Payable for distribution fees |
| 43,909 | 8,032 | 14,150 | 2,078 | 4,162 | 5,727 | 897 | |
Payable for administration fees |
| 13,977 | 3,059 | 7,129 | 875 | 1,371 | 2,052 | 82 | |
Payable for fund accounting fees |
| 7,000 | 3,982 | 2,006 | 670 | 731 | 2,028 | 3 | |
Payable for transfer agent fees |
| 5,023 | 924 | 1,242 | 1,294 | 1,184 | 61 | 2,644 | |
Payable for custody fees |
| 10,616 | 3,215 | 1,500 | 770 | 270 | 204 | 1,011 | |
Payable for non 12b-1 shareholder servicing fees |
| 1,786 | - | - | - | - | - |
| |
Accrued expenses and other liabilities |
| 15,731 | 3,075 | 10,167 | 4,904 | 11,779 | 12,383 | 7,038 | |
| Total Liabilities |
| 47,237,646 | 2,642,281 | 1,118,253 | 824,348 | 279,592 | 81,199 | 13,615 |
|
|
|
|
|
|
|
|
|
|
Net Assets |
| $ 224,807,093 | $ 123,375,057 | $ 158,917,043 | $ 12,490,430 | $ 23,383,406 | $ 42,472,894 | $ 3,275,201 | |
|
|
|
|
|
|
|
|
|
|
Net Assets: |
|
|
|
|
|
|
|
| |
Paid in capital |
| $ 231,237,419 | $ 118,336,983 | $ 156,643,512 | $ 12,157,167 | $ 21,818,428 | $ 33,824,239 | $ 3,052,758 | |
Undistributed net investment income (loss) |
| (228,372) | (164,507) | (2,156) | 96,330 | (191,780) | 96,981 | 1,996 | |
Accumulated net realized gain (loss) on |
|
|
|
|
|
|
|
| |
investments, options, securities sold short, swap |
|
|
|
|
|
|
|
| |
contracts, and foreign currency translations |
| (16,412,409) | 1,482,207 | (5,171,819) | 64,684 | (1,016,586) | (5,980,956) | 6,013 | |
Net unrealized appreciation on |
|
|
|
|
|
|
|
| |
investments, options, securities sold short, swap |
|
|
|
|
|
|
|
| |
contracts, and foreign currency translations |
| 10,210,455 | 3,720,374 | 7,447,506 | 172,249 | 2,773,344 | 14,532,630 | 214,434 | |
|
|
|
|
|
|
|
|
|
|
Net Assets |
| $ 224,807,093 | $ 123,375,057 | $ 158,917,043 | $ 12,490,430 | $ 23,383,406 | $ 42,472,894 | $ 3,275,201 | |
|
|
|
|
|
|
|
|
|
|
Net Asset Value Per Share |
|
|
|
|
|
|
|
| |
| Class N Shares: |
|
|
|
|
|
|
|
|
| Net Assets |
| $ 132,320,040 | $ 108,282,873 | $ 126,200,915 | $ 8,732,589 | $ 15,038,956 | $ 33,885,849 | $ 673,484 |
| Shares of beneficial interest outstanding |
|
|
|
|
|
|
|
|
| (no par value; unlimited shares authorized) |
| 3,407,966 | 7,412,553 | 12,871,758 | 854,558 | 1,630,324 | 2,600,364 | 63,236 |
| Net asset value, offering and |
|
|
|
|
|
|
|
|
| redemption price per share |
| $ 38.83 | $ 14.61 | $ 9.80 | $ 10.22 | $ 9.22 | $ 13.03 | $ 10.65 |
|
|
|
|
|
|
|
|
|
|
| Class A Shares: |
|
|
|
|
|
|
|
|
| Net Assets |
| $ 56,545,981 | $ 5,460,440 | $ 17,107,092 | $ 1,812,134 | $ 4,873,029 | $ 3,578,136 | $ 1,667,760 |
| Shares of beneficial interest outstanding |
|
|
|
|
|
|
|
|
| (no par value; unlimited shares authorized) |
| 1,474,137 | 374,125 | 1,732,647 | 176,831 | 529,134 | 274,892 | 156,655 |
| Net asset value and |
|
|
|
|
|
|
|
|
| redemption price per share |
| $ 38.36 | $ 14.60 | $ 9.87 | $ 10.25 | $ 9.21 | $ 13.02 | $ 10.65 |
| Front-end sales charge factor |
| 0.9425 | 0.9550 | 0.9550 | 0.9425 | 0.9425 | 0.9425 | 0.9425 |
| Offering price per share (Net asset value per |
|
|
|
|
|
|
|
|
| share / front-end sales charge factor) |
| $ 40.70 | $ 15.29 | $ 10.34 | $ 10.88 | $ 9.77 | $ 13.81 | $ 11.30 |
|
|
|
|
|
|
|
|
|
|
| Class C Shares: |
|
|
|
|
|
|
|
|
| Net Assets |
| $ 35,941,072 | $ 9,631,744 | $ 15,609,036 | $ 1,945,707 | $ 3,471,421 | $ 5,008,909 | $ 933,957 |
| Shares of beneficial interest outstanding |
|
|
|
|
|
|
|
|
| (no par value; unlimited shares authorized) |
| 1,075,050 | 663,933 | 1,601,114 | 192,473 | 381,557 | 395,142 | 87,933 |
| Net asset value, offering and |
|
|
|
|
|
|
|
|
| redemption price per share |
| $ 33.43 | $ 14.51 | $ 9.75 | $ 10.11 | $ 9.10 | $ 12.68 | $ 10.62 |
See accompanying notes to financial statements.
STATEMENTS OF ASSETS AND LIABILITIES (Continued) |
|
|
|
|
| ||||
April 30, 2013 (Unaudited) |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dunham |
|
|
|
| Dunham |
|
|
| Dunham | Focused | Dunham | Dunham | Dunham | Dunham | Emerging |
|
|
| Large Cap | Large Cap | Real Estate | International | Small Cap | Small Cap | Markets |
|
|
| Growth Fund | Growth Fund | Stock Fund | Stock Fund | Value Fund | Growth Fund | Stock Fund |
Assets: |
|
|
|
|
|
|
|
| |
Investments in securities, at cost |
| $ 26,027,302 | $ 9,019,489 | $ 26,380,636 | $ 47,519,403 | $ 13,499,534 | $ 19,075,542 | $ 23,440,893 | |
Investments in securities, at value |
| $ 34,223,000 | $ 10,256,636 | $ 32,850,724 | $ 55,028,902 | $ 17,456,483 | $ 21,373,991 | $ 30,316,332 | |
Foreign currency, at value (Cost $206,927 & $4,647) |
| - | - | - | 209,452 | - | - | 4,579 | |
Receivable for securities sold |
| 293,402 | - | 645,746 | 1,824,194 | 13,220 | 356,266 | 213,820 | |
Interest and dividends receivable |
| 24,549 | 2,596 | 11,429 | 282,526 | 7,020 | 1,176 | 36,103 | |
Receivable for fund shares sold |
| 31,622 | - | 110,922 | 46,244 | 13,399 | 13,251 | 15,276 | |
Receivable for open forward foreign currency contracts |
| 10 | - | - | 398,756 | - | - | - | |
Prepaid expenses and other assets |
| 28,880 | 30,019 | 39,777 | 207,951 | 30,296 | 24,347 | 26,142 | |
| Total Assets |
| 34,601,463 | 10,289,251 | 33,658,598 | 57,998,025 | 17,520,418 | 21,769,031 | 30,612,252 |
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
| |
Payable for securities purchased |
| - | - | 331,271 | 1,630,529 | 41,703 | 158,034 | 583,353 | |
Payable for fund shares redeemed |
| 1,851 | - | 9,482 | 17,622 | 2,742 | 472 | 4,240 | |
Payable for open forward foreign currency contracts |
| - | - | - | 131,664 | - | - | - | |
Payable to adviser |
| 19,960 | 5,613 | 18,794 | 31,867 | 10,058 | 12,485 | 17,160 | |
Payable to sub-adviser |
| 19,784 | 890 | 2,891 | 45,292 | - | 1,435 | 27,519 | |
Payable for distribution fees |
| 4,097 | 2,090 | 3,829 | 7,708 | 2,801 | 2,287 | 4,326 | |
Payable for administration fees |
| 3,224 | 618 | 2,834 | 2,666 | 799 | 1,475 | 1,780 | |
Payable for fund accounting fees |
| 1,078 | 314 | 1,005 | 2,260 | 914 | 683 | 1,403 | |
Payable for transfer agent fees |
| 1,217 | 1,084 | 1,225 | 1,084 | 822 | 1,176 | 744 | |
Payable for custody fees |
| 850 | 314 | 2,042 | 30,828 | 250 | 2,125 | 11,763 | |
Accrued expenses and other liabilities |
| 11,075 | 10,314 | 9,836 | 6,530 | 4,230 | 8,376 | 4,525 | |
| Total Liabilities |
| 63,136 | 21,237 | 383,209 | 1,908,050 | 64,319 | 188,548 | 656,813 |
|
|
|
|
|
|
|
|
|
|
Net Assets |
| $ 34,538,327 | $ 10,268,014 | $ 33,275,389 | $ 56,089,975 | $ 17,456,099 | $ 21,580,483 | $ 29,955,439 | |
|
|
|
|
|
|
|
|
|
|
Net Assets: |
|
|
|
|
|
|
|
| |
Paid in capital |
| $ 43,499,464 | $ 8,852,352 | $ 26,047,039 | $ 56,445,416 | $ 17,502,663 | $ 18,326,454 | $ 29,524,950 | |
Undistributed net investment income (loss) |
| (533) | (71,081) | 228,196 | (82,666) | 29,147 | (332,671) | (184,142) | |
Accumulated net realized gain (loss) on |
|
|
|
|
|
|
|
| |
investments and foreign currency transactions |
| (17,156,312) | 249,596 | 530,066 | (8,035,409) | (4,032,660) | 1,288,251 | (6,244,180) | |
Net unrealized appreciation on |
|
|
|
|
|
|
|
| |
investments and foreign currency translations |
| 8,195,708 | 1,237,147 | 6,470,088 | 7,762,634 | 3,956,949 | 2,298,449 | 6,858,811 | |
|
|
|
|
|
|
|
|
|
|
Net Assets |
| $ 34,538,327 | $ 10,268,014 | $ 33,275,389 | $ 56,089,975 | $ 17,456,099 | $ 21,580,483 | $ 29,955,439 | |
|
|
|
|
|
|
|
|
|
|
Net Asset Value Per Share |
|
|
|
|
|
|
|
| |
| Class N Shares: |
|
|
|
|
|
|
|
|
| Net Assets |
| $ 28,652,416 | $ 509,789 | $ 23,662,959 | $ 46,767,633 | $ 14,375,950 | $ 15,054,285 | $ 16,290,264 |
| Shares of beneficial interest outstanding |
|
|
|
|
|
|
|
|
| (no par value; unlimited shares authorized) |
| 6,125,296 | 44,437 | 1,336,064 | 3,354,871 | 1,111,983 | 915,223 | 1,074,300 |
| Net asset value, offering and |
|
|
|
|
|
|
|
|
| redemption price per share |
| $ 4.68 | $ 11.47 | $ 17.71 | $ 13.94 | $ 12.93 | $ 16.45 | $ 15.16 |
|
|
|
|
|
|
|
|
|
|
| Class A Shares: |
|
|
|
|
|
|
|
|
| Net Assets |
| $ 2,198,055 | $ 9,596,506 | $ 6,935,150 | $ 3,303,258 | $ 1,056,552 | $ 3,934,500 | $ 11,063,383 |
| Shares of beneficial interest outstanding |
|
|
|
|
|
|
|
|
| (no par value; unlimited shares authorized) |
| 475,665 | 839,165 | 390,495 | 237,145 | 81,992 | 242,902 | 743,402 |
| Net asset value, and |
|
|
|
|
|
|
|
|
| redemption price per share |
| $ 4.62 | $ 11.44 | $ 17.76 | $ 13.93 | $ 12.89 | $ 16.20 | $ 14.88 |
| Front-end sales charge factor |
| 0.9425 | 0.9425 | 0.9425 | 0.9425 | 0.9425 | 0.9425 | 0.9425 |
| Offering price per share (Net asset value per |
|
|
|
|
|
|
|
|
| share / front-end sales charge factor) |
| $ 4.90 | $ 12.14 | $ 18.84 | $ 14.78 | $ 13.68 | $ 17.19 | $ 15.79 |
| Class C Shares: |
|
|
|
|
|
|
|
|
| Net Assets |
| $ 3,687,856 | $ 161,719 | $ 2,677,280 | $ 6,019,084 | $ 2,023,597 | $ 2,591,698 | $ 2,601,792 |
| Shares of beneficial interest outstanding |
|
|
|
|
|
|
|
|
| (no par value; unlimited shares authorized) |
| 853,335 | 14,823 | 155,178 | 444,731 | 166,106 | 173,300 | 181,214 |
| Net asset value, offering and |
|
|
|
|
|
|
|
|
| redemption price per share |
| $ 4.32 | $ 11.32 | $ 17.25 | $ 13.53 | $ 12.18 | $ 14.95 | $ 14.36 |
See accompanying notes to financial statements.
STATEMENTS OF OPERATIONS |
|
|
|
|
|
|
|
| |
For the Six Months Ended April 30, 2013 (Unaudited) |
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| Dunham | Dunham |
| Dunham |
|
|
|
|
|
| Monthly | Corporate / | Dunham | Loss Averse | Dunham | Dunham | Dunham |
|
|
| Distribution | Government | High-Yield | Equity Income | Appreciation & | Large Cap | Alternative |
|
|
| Fund | Bond Fund | Bond Fund | Fund | Income Fund | Value Fund | Income Fund |
|
|
|
|
|
|
|
|
|
|
Investment Income: |
|
|
|
|
|
|
|
| |
Interest income |
| $ 490,213 | $ 2,058,622 | $ 4,302,502 | $ - | $ 213,088 | $ 510 | $ 75 | |
Dividend income |
| 3,210,273 | 24,963 | 196,623 | 321,024 | 219,554 | 478,973 | 62,339 | |
Less: Foreign withholding taxes |
| - | (5,286) | (987) | (1,517) | (505) | - | (316) | |
| Total Investment Income |
| 3,700,486 | 2,078,299 | 4,498,138 | 319,507 | 432,137 | 479,483 | 62,098 |
|
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
| |
Investment advisory fees |
| 706,599 | 304,291 | 438,897 | 41,256 | 94,594 | 145,119 | 8,409 | |
Sub-advisory fees |
| 815,307 | 213,004 | 365,748 | 31,735 | 87,318 | 96,002 | 5,175 | |
Sub-advisory performance fees |
| 424,196 | 73,502 | (172,862) | (25,872) | (54,123) | (94,771) | (4,089) | |
Fund accounting fees |
| 45,885 | 23,225 | 29,402 | 2,620 | 5,606 | 9,164 | 381 | |
Distribution fees- Class C Shares |
| 158,019 | 34,182 | 54,110 | 9,242 | 18,855 | 26,034 | 1,751 | |
Distribution fees- Class A Shares |
| 68,330 | 5,461 | 18,788 | 2,377 | 5,816 | 4,106 | 3,578 | |
Administration fees |
| 95,783 | 53,632 | 59,088 | 5,272 | 11,154 | 16,117 | 1,228 | |
Registration fees |
| 29,000 | 22,329 | 22,389 | 19,849 | 22,549 | 22,329 | 4,854 | |
Transfer agent fees |
| 19,490 | 9,983 | 13,339 | 8,108 | 8,898 | 8,231 | 7,970 | |
Custodian fees |
| 43,930 | 5,990 | 4,674 | 2,679 | 3,689 | 2,974 | 2,341 | |
Professional fees |
| 12,111 | 12,863 | 10,860 | 7,392 | 7,310 | 9,139 | 8,148 | |
Chief Compliance Officer fees |
| 13,514 | 6,739 | 8,015 | 761 | 1,945 | 2,668 | 112 | |
Printing and postage expense |
| 35,192 | 12,294 | 7,215 | 1,393 | 4,980 | 4,867 | 938 | |
Trustees' fees |
| 9,727 | 4,155 | 4,742 | 468 | 1,053 | 1,645 | 69 | |
Insurance expense |
| 17,406 | 1,926 | 1,496 | 218 | 793 | 764 | 32 | |
Non 12b-1 shareholder servicing fees |
| 18,102 | 248 | 1,326 | �� 2,477 | 2,376 | 2,745 | - | |
Dividend expenses on short sales |
| 170,451 | - | - | - | - | - | - | |
Security borrowing fees |
| 115,624 | - | - | - | - | - | - | |
Miscellaneous expenses |
| 14,439 | 3,472 | 6,224 | 1,240 | 3,450 | 2,232 | 1,219 | |
| Total Operating Expenses |
| 2,813,105 | 787,296 | 873,451 | 111,215 | 226,263 | 259,365 | 42,116 |
| Less: Advisory/Sub-advisory fees waived |
| (31,224) | - | - | - | - | - | - |
| Net Operating Expenses |
| 2,781,881 | 787,296 | 873,451 | 111,215 | 226,263 | 259,365 | 42,116 |
|
|
|
|
|
|
|
|
|
|
Net Investment Income |
| 918,605 | 1,291,003 | 3,624,687 | 208,292 | 205,874 | 220,118 | 19,982 | |
|
|
|
|
|
|
|
|
|
|
Realized and Unrealized |
|
|
|
|
|
|
|
| |
Gain (Loss) on Investments, Options Purchased, |
|
|
|
|
|
|
|
| |
Securities Sold Short, Written Options, Foreign |
|
|
|
|
|
|
|
| |
Currency Transactions and Swap Contracts: |
|
|
|
|
|
|
|
| |
Net realized gain (loss) from: |
|
|
|
|
|
|
|
| |
Investments |
| 10,379,197 | 1,516,395 | 2,723,637 | 602,794 | 1,044,595 | 1,898,083 | 9,394 | |
Options purchased |
| (2,473,137) | - | - | - | - | - | - | |
Securities sold short |
| (1,640,227) | - | - | - | - | - | - | |
Written options |
| (4,556,172) | - | - | - | - | - | - | |
Foreign currency transactions |
| 16,335 | - | - | (15) | - | - | 2 | |
Foreign currency exchange contracts |
| 510,654 | - | - | 1 | - | - | - | |
Swap contracts |
| 536,865 | - | - | - | �� - | - | - | |
Net change in unrealized appreciation (depreciation) on: |
|
|
|
|
|
|
|
| |
Investments |
| 11,734,462 | (154,398) | 1,588,983 | (355,666) | 645,287 | 3,094,767 | 246,936 | |
Options purchased |
| (731,767) | - | - | - | - | - | - | |
Securities sold short |
| (1,680,129) | - | - | - | - | - | - | |
Written options |
| (5,610,650) | - | - | - | - | - | - | |
Foreign currency exchange contracts |
| (305,264) | - | - | 29 | - | - | 3 | |
Swap contracts |
| 5,388,263 | - | - | - | - | - | - | |
Net Realized and Unrealized Gain |
| 11,568,430 | 1,361,997 | 4,312,620 | 247,143 | 1,689,882 | 4,992,850 | 256,335 | |
|
|
|
|
|
|
|
|
|
|
Net Increase in Net Assets |
|
|
|
|
|
|
|
| |
Resulting From Operations |
| $ 12,487,035 | $ 2,653,000 | $ 7,937,307 | $ 455,435 | $ 1,895,756 | $ 5,212,968 | $ 276,317 |
See accompanying notes to financial statements.
STATEMENTS OF OPERATIONS (Continued) |
|
|
|
|
|
| |||
For the Six Months Ended April 30, 2013 (Unaudited) |
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dunham |
|
|
|
| Dunham |
|
|
| Dunham | Focused | Dunham | Dunham | Dunham | Dunham | Emerging |
|
|
| Large Cap | Large Cap | Real Estate | International | Small Cap | Small Cap | Markets |
|
|
| Growth Fund | Growth Fund | Stock Fund | Stock Fund | Value Fund | Growth Fund | Stock Fund |
|
|
|
|
|
|
|
|
|
|
Investment Income: |
|
|
|
|
|
|
|
| |
Interest income |
| $ 872 | $ 27 | $ 27 | $ - | $ 41 | $ 39 | $ 94 | |
Dividend income |
| 314,859 | 58,946 | 521,247 | 669,673 | 211,331 | 32,673 | 221,033 | |
Less: Foreign withholding taxes |
| (3,337) | (116) | (70) | (78,260) | - | - | (22,367) | |
| Total Investment Income |
| 312,394 | 58,857 | 521,204 | 591,413 | 211,372 | 32,712 | 198,760 |
|
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
| |
Investment advisory fees |
| 111,701 | 40,389 | 84,251 | 175,775 | 57,390 | 67,241 | 92,979 | |
Sub-advisory fees |
| 77,331 | 21,218 | 51,846 | 175,775 | 48,561 | 51,723 | 85,826 | |
Sub-advisory performance fees |
| 15,747 | (10,003) | (39,045) | 48,854 | (53,973) | (48,297) | 44,204 | |
Fund accounting fees |
| 6,645 | 2,439 | 5,446 | 10,505 | 3,673 | 3,919 | 5,964 | |
Distribution fees- Class C Shares |
| 18,420 | 792 | 12,091 | 29,130 | 10,103 | 12,928 | 12,856 | |
Distribution fees- Class A Shares |
| 2,029 | 14,845 | 2,740 | 2,874 | 963 | 3,962 | 11,726 | |
Administration fees |
| 14,273 | 3,190 | 12,617 | 30,535 | 7,044 | 9,543 | 14,397 | |
Registration fees |
| 20,665 | 10,780 | 18,397 | 22,329 | 22,329 | 22,856 | 22,329 | |
Transfer agent fees |
| 13,371 | 6,117 | 9,885 | 8,743 | 7,958 | 8,230 | 8,379 | |
Custodian fees |
| 2,558 | 3,130 | 3,650 | 59,590 | 4,169 | 4,290 | 35,698 | |
Professional fees |
| 9,106 | 7,606 | 7,922 | 9,480 | 7,674 | 7,683 | 8,277 | |
Chief Compliance Officer fees |
| 2,189 | 730 | 1,439 | 3,041 | 1,068 | 1,212 | 1,729 | |
Printing and postage expense |
| 3,413 | 564 | 4,774 | 5,535 | 1,947 | 3,493 | 3,155 | |
Trustees' fees |
| 1,182 | 447 | 877 | 1,872 | 626 | 726 | 1,066 | |
Insurance expense |
| 413 | 138 | 637 | 869 | 305 | 353 | 494 | |
Non 12b-1 shareholder servicing fees |
| 989 | 208 | 351 | 740 | 247 | 572 | 347 | |
Miscellaneous expenses |
| �� 3,657 | 240 | 2,917 | 2,480 | 1,240 | 2,890 | 1,240 | |
| Total Operating Expenses |
| 303,689 | 102,830 | 180,795 | 588,127 | 121,324 | 153,324 | 350,666 |
| Less: Advisory/Sub-advisory fees waived |
| - | (3,040) | - | - | - | - | - |
| Net Operating Expenses |
| 303,689 | 99,790 | 180,795 | 588,127 | 121,324 | 153,324 | 350,666 |
|
|
|
|
|
|
|
|
|
|
Net Investment Income (Loss) |
| 8,705 | (40,933) | 340,409 | 3,286 | 90,048 | (120,612) | (151,906) | |
|
|
|
|
|
|
|
|
|
|
Realized and Unrealized |
|
|
|
|
|
|
|
| |
Gain (Loss) on Investments |
|
|
|
|
|
|
|
| |
and Foreign Currency: |
|
|
|
|
|
|
|
| |
Net realized gain (loss) from: |
|
|
|
|
|
|
|
| |
Investments |
| 2,305,955 | 253,428 | 704,981 | 5,320,720 | 938,644 | 1,347,925 | 502,017 | |
Foreign currency transactions |
| - | - | - | (1,148,366) | - | - | 5,217 | |
Foreign currency exchange contracts |
| - | - | - | 74,100 | - | - | (67,005) | |
Net change in unrealized appreciation (depreciation) on: |
|
|
|
|
|
|
| ||
Investments |
| 1,897,817 | 1,079,837 | 3,490,850 | 3,910,632 | 1,557,448 | 1,181,145 | 2,141,915 | |
Foreign currency translations |
| - | - | - | (6,199) | - | - | (14,038) | |
Foreign currency exchange contracts |
| - | - | - | 470,195 | - | - | - | |
Net Realized and Unrealized Gain |
| 4,203,772 | 1,333,265 | 4,195,831 | 8,621,082 | 2,496,092 | 2,529,070 | 2,568,106 | |
|
|
|
|
|
|
|
|
|
|
Net Increase in Net Assets |
|
|
|
|
|
|
|
| |
Resulting From Operations |
| $ 4,212,477 | $ 1,292,332 | $ 4,536,240 | $ 8,624,368 | $ 2,586,140 | $ 2,408,458 | $ 2,416,200 | |
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
STATEMENTS OF CHANGES IN NET ASSETS |
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| ||||
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|
| Dunham | Dunham | Dunham | Dunham | Dunham | |||||
|
|
| Monthly Distribution | Corporate/Government | High-Yield | Loss Averse | Appreciation & | |||||
|
|
| Fund | Bond Fund | Bond Fund | Equity Income Fund | Income Fund | |||||
|
|
| Six Months |
| Six Months |
| Six Months |
| Six Months |
| Six Months |
|
|
|
| Ended | Year Ended | Ended | Year Ended | Ended | Year Ended | Ended | Year Ended | Ended | Year Ended |
|
|
| April 30, 2013 | Oct. 31, 2012 | April 30, 2013 | Oct. 31, 2012 | April 30, 2013 | Oct. 31, 2012 | April 30, 2013 | Oct. 31, 2012 | April 30, 2013 | Oct. 31, 2012 |
|
|
| (Unaudited) |
| (Unaudited) |
| (Unaudited) |
| (Unaudited) |
| (Unaudited) |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
| |
Net investment income (loss) |
| $ 918,605 | $ 187,462 | $ 1,291,003 | $ 2,043,146 | $ 3,624,687 | $ 5,294,352 | $ 208,292 | $ 355,519 | $ 205,874 | $ 305,510 | |
Net realized gain (loss) from investments, |
|
|
|
|
|
|
|
|
|
|
| |
foreign currency, securities sold short, |
|
|
|
|
|
|
|
|
|
|
| |
swap contracts and options |
| 2,773,515 | 2,328,442 | 1,516,395 | 2,615,733 | 2,723,637 | 496,660 | 602,780 | (237,771) | 1,044,595 | 1,519,323 | |
Net change in unrealized appreciation |
|
|
|
|
|
|
|
|
|
|
| |
(depreciation) on investments, |
|
|
|
|
|
|
|
|
|
|
| |
foreign currency, securities sold short, |
|
|
|
|
|
|
|
|
|
|
| |
swap contracts and options |
| 8,794,915 | 6,545,807 | (154,398) | 1,675,791 | 1,588,983 | 3,961,903 | (355,637) | 263,034 | 645,287 | (1,304,524) | |
Net Increase in Net Assets |
|
|
|
|
|
|
|
|
|
|
| |
Resulting From Operations |
| 12,487,035 | 9,061,711 | 2,653,000 | 6,334,670 | 7,937,307 | 9,752,915 | 455,435 | 380,782 | 1,895,756 | 520,309 | |
|
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|
|
|
|
|
|
|
|
|
|
Distributions to Shareholders From: |
|
|
|
|
|
|
|
|
|
|
| |
Net Realized Gains: |
|
|
|
|
|
|
|
|
|
|
| |
| Class N |
| (664,554) | (707,208) | (1,949,452) | (1,220,087) | - | - | - | - | - | - |
| Class A |
| (281,110) | (300,582) | (78,308) | (16,307) | - | - | - | - | - | - |
| Class C |
| (186,283) | (284,843) | (166,157) | (185,383) | - | - | - | - | - | - |
Net Investment Income: |
|
|
|
|
|
|
|
|
|
|
| |
| Class N |
| (1,157,609) | (560,482) | (1,323,925) | (2,046,680) | (2,954,530) | (4,109,365) | (106,600) | (309,068) | (640,297) | (290,529) |
| Class A |
| (489,676) | (223,485) | (51,312) | (38,032) | (365,946) | (550,417) | (19,249) | (45,462) | (115,199) | (35,067) |
| Class C |
| (324,493) | (175,218) | (80,273) | (209,565) | (315,891) | (642,806) | (15,649) | (25,513) | (71,099) | (14,305) |
Distributions From Paid In Capital: |
|
|
|
|
|
|
|
|
|
|
| |
| Class N |
| (321,558) | (1,464,155) | - | - | - | - | - | (114,806) | - | - |
| Class A |
| (136,021) | (622,305) | - | - | - | - | - | (25,120) | - | - |
| Class C |
| (90,137) | (589,719) | - | - | - | - | - | (17,827) | - | - |
Total Distributions to Shareholders |
| (3,651,441) | (4,927,997) | (3,649,427) | (3,716,054) | (3,636,367) | (5,302,588) | (141,498) | (537,796) | (826,595) | (339,901) | |
|
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|
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|
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|
|
|
|
|
|
Share Transactions of |
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|
|
|
|
|
|
|
|
| |
Beneficial Interest: |
|
|
|
|
|
|
|
|
|
|
| |
Net proceeds from shares sold |
|
|
|
|
|
|
|
|
|
|
| |
| Class N |
| 34,221,574 | 70,615,110 | 23,389,966 | 58,194,445 | 27,362,263 | 78,430,495 | 1,893,828 | 4,608,760 | 1,127,314 | 4,975,192 |
| Class A |
| 18,722,718 | 29,619,825 | 2,371,763 | 4,128,149 | 4,688,932 | 9,939,100 | 86,055 | 1,546,498 | 692,633 | 3,037,710 |
| Class C |
| 8,072,860 | 8,631,262 | 1,218,915 | 1,851,032 | 2,818,355 | 6,796,545 | 303,374 | 1,062,953 | 378,758 | 956,238 |
Reinvestment of distributions |
|
|
|
|
|
|
|
|
|
|
| |
| Class N |
| 2,138,400 | 2,685,858 | 3,272,290 | 3,263,694 | 2,633,018 | 3,660,247 | 22,859 | 81,783 | 638,724 | 287,073 |
| Class A |
| 684,752 | 801,841 | 117,081 | 47,233 | 304,235 | 395,516 | 16,199 | 59,406 | 72,094 | 23,365 |
| Class C |
| 502,587 | 869,523 | 245,363 | 393,019 | 260,811 | 530,080 | 15,179 | 42,945 | 70,656 | 13,911 |
Cost of shares redeemed |
|
|
|
|
|
|
|
|
|
|
| |
| Class N |
| (36,895,621) | (14,097,485) | (21,399,181) | (18,630,570) | (22,053,221) | (16,259,113) | (2,407,289) | (4,375,634) | (11,308,171) | (6,055,481) |
| Class A |
| (16,578,223) | (12,313,609) | (597,054) | (1,249,672) | (2,041,237) | (3,540,527) | (565,966) | (1,135,317) | (537,812) | (1,607,678) |
| Class C |
| (3,935,332) | (7,610,824) | (764,718) | (2,768,347) | (2,345,554) | (3,861,411) | (205,030) | (369,942) | (999,947) | (1,229,639) |
Net Increase (Decrease) in Net Assets From |
|
|
|
|
|
|
|
|
|
|
| |
Share Transactions of Beneficial Interest |
| 6,933,715 | 79,201,501 | 7,854,425 | 45,228,983 | 11,627,602 | 76,090,932 | (840,791) | 1,521,452 | (9,865,751) | 400,691 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Increase (Decrease) in Net Assets |
| 15,769,309 | 83,335,215 | 6,857,998 | 47,847,599 | 15,928,542 | 80,541,259 | (526,854) | 1,364,438 | (8,796,590) | 581,099 | |
|
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|
|
Net Assets: |
|
|
|
|
|
|
|
|
|
|
| |
| Beginning of Period |
| 209,037,784 | 125,702,569 | 116,517,059 | 68,669,460 | 142,988,501 | 62,447,242 | 13,017,284 | 11,652,846 | 32,179,996 | 31,598,897 |
| End of Period* |
| $224,807,093 | $209,037,784 | $123,375,057 | $116,517,059 | $158,917,043 | $142,988,501 | $ 12,490,430 | $ 13,017,284 | $ 23,383,406 | $ 32,179,996 |
| * Includes undistributed net investment |
|
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|
|
|
|
|
|
|
|
|
| income (loss) at end of period |
| $ (228,372) | $ 720,449 | $ (164,507) | $ - | $ (2,156) | $ 9,524 | $ 96,330 | $ 29,536 | $ (191,780) | $ 428,941 |
See accompanying notes to financial statements.
STATEMENTS OF CHANGES IN NET ASSETS (Continued) |
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| Dunham | Dunham | Dunham | Dunham | Dunham | |||||
|
|
| Large Cap | Alternative | Large Cap | Focused Large Cap | Real Estate | |||||
|
|
| Value Fund | Income Fund (2) | Growth Fund | Growth Fund (1) | Stock Fund | |||||
|
|
| Six Months |
| Six Months | Period | Six Months |
| Six Months | Period | Six Months |
|
|
|
| Ended | Year Ended | Ended | Ended | Ended | Year Ended | Ended | Ended | Ended | Year Ended |
|
|
| April 30, 2013 | Oct. 31, 2012 | April 30, 2013 | Oct. 31, 2012 | April 30, 2013 | Oct. 31, 2012 | April 30, 2013 | Oct. 31, 2012 | April 30, 2013 | Oct. 31, 2012 |
|
|
| (Unaudited) |
| (Unaudited) |
| (Unaudited) |
| (Unaudited) |
| (Unaudited) |
|
Operations: |
|
|
|
|
|
|
|
|
|
|
| |
Net investment income (loss) |
| $ 220,118 | $ 388,420 | $ 19,982 | $ (11,878) | $ 8,705 | $ 56,267 | $ (40,933) | $ (47,004) | $ 340,409 | $ 263,147 | |
Net realized gain (loss) from investments |
|
|
|
|
|
|
|
|
|
|
| |
and foreign currency transactions |
| 1,898,083 | 1,531,776 | 9,396 | (3,388) | 2,305,955 | 1,275,368 | 253,428 | 13,024 | 704,981 | 3,338,749 | |
Net change in unrealized appreciation |
|
|
|
|
|
|
|
|
|
|
| |
(depreciation) on investments |
|
|
|
|
|
|
|
|
|
|
| |
and foreign currency translations |
| 3,094,767 | 2,681,043 | 246,939 | (32,505) | 1,897,817 | 2,938,638 | 1,079,837 | 157,310 | 3,490,850 | (755,779) | |
Net Increase (Decrease) in Net Assets |
|
|
|
|
|
|
|
|
|
|
| |
Resulting From Operations |
| 5,212,968 | 4,601,239 | 276,317 | (47,771) | 4,212,477 | 4,270,273 | 1,292,332 | 123,330 | 4,536,240 | 2,846,117 | |
|
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|
|
|
|
|
|
|
|
|
|
Distributions to Shareholders From: |
|
|
|
|
|
|
|
|
|
|
| |
Net Realized Gains: |
|
|
|
|
|
|
|
|
|
|
| |
| Class N |
| - | - | - | - |
|
|
|
| (678,970) | - |
| Class A |
| - | - | - | - |
|
|
|
| (29,048) | - |
| Class C |
| - | - | - | - |
|
|
|
| (77,708) | - |
Net Investment Income: |
|
|
|
|
|
|
|
|
|
|
| |
| Class N |
| (409,455) | (158,239) | (1,836) | - | (63,091) | (92,415) | - | - | (288,602) | (113,301) |
| Class A |
| (27,738) | (3,694) | (4,004) | - | (1,816) | (224) | - | - | (8,316) | (55,961) |
| Class C |
| (2,534) | - | (263) | - | - | - | - | - | (11,056) | - |
Total Distributions to Shareholders |
| (439,727) | (161,933) | (6,103) | - | (64,907) | (92,639) | - | - | (1,093,700) | (169,262) | |
|
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|
|
|
|
|
|
|
|
|
|
Share Transactions of |
|
|
|
|
|
|
|
|
|
|
| |
Beneficial Interest: |
|
|
|
|
|
|
|
|
|
|
| |
Net proceeds from shares sold |
|
|
|
|
|
|
|
|
|
|
| |
| Class N |
| 2,341,464 | 8,915,653 | 279,998 | 350,010 | 2,598,820 | 5,997,284 | 262,523 | 541,346 | 4,179,817 | 9,015,861 |
| Class A |
| 1,069,140 | 1,017,950 | 432,869 | 1,134,736 | 905,937 | 1,065,229 | 5,740,596 | 10,493,522 | 5,778,576 | 1,128,660 |
| Class C |
| 269,784 | 649,284 | 356,203 | 534,684 | 206,768 | 290,288 | 55,867 | 189,915 | 443,812 | 725,289 |
Reinvestment of distributions |
|
|
|
|
|
|
|
|
|
| - | |
| Class N |
| 409,183 | 153,677 | 1,836 | - | 60,364 | 86,229 | - | - | 968,202 | 113,210 |
| Class A |
| 26,718 | 3,521 | 2,704 | - | 1,738 | 224 | - | - | 36,666 | 55,961 |
| Class C |
| 2,532 | - | 200 | - | - | - | - | - | 88,832 | - |
Cost of shares redeemed |
|
|
|
|
|
|
|
|
|
|
| |
| Class N |
| (10,349,444) | (9,193,227) | (1,588) | - | (7,199,818) | (9,278,830) | (238,157) | (78,912) | (4,521,066) | (3,192,958) |
| Class A |
| (845,008) | (1,190,656) | (17,371) | - | (151,882) | (108,580) | (7,730,981) | (293,622) | (115,124) | (7,858,123) |
| Class C |
| (1,273,886) | (1,919,581) | (21,523) | - | (650,357) | (1,738,702) | (53,830) | (35,915) | (529,715) | (575,938) |
Net Increase (Decrease) in Net Assets From |
|
|
|
|
|
|
|
|
|
|
| |
Share Transactions of Beneficial Interest |
| (8,349,517) | (1,563,379) | 1,033,328 | 2,019,430 | (4,228,430) | (3,686,858) | (1,963,982) | 10,816,334 | 6,330,000 | (588,038) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Increase (Decrease) in Net Assets |
| (3,576,276) | 2,875,927 | 1,303,542 | 1,971,659 | (80,860) | 490,776 | (671,650) | 10,939,664 | 9,772,540 | 2,088,817 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets: |
|
|
|
|
|
|
|
|
|
|
| |
| Beginning of Period |
| 46,049,170 | 43,173,243 | 1,971,659 | - | 34,619,187 | 34,128,411 | 10,939,664 | - | 23,502,849 | 21,414,032 |
| End of Period |
| $ 42,472,894 | $46,049,170 | $ 3,275,201 | $1,971,659 | $ 34,538,327 | $34,619,187 | $ 10,268,014 | $10,939,664 | $ 33,275,389 | $23,502,849 |
| * Includes undistributed net investment |
|
|
|
|
|
|
|
|
|
|
|
| income (loss) at end of period |
| $ 96,981 | $ 316,590 | $ 1,996 | $ (11,883) | $ (533) | $ 55,669 | $ (71,081) | $ (30,148) | $ 228,196 | $ 195,761 |
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|
|
(1) | The Dunham Focused Large Cap Growth Fund commenced operations on December 8, 2011. |
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| |||||
(2) | The Dunham Alternative Income Fund commenced operations on September 14, 2012. |
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| ||||
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|
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|
|
See accompanying notes to financial statements.
STATEMENTS OF CHANGES IN NET ASSETS (Continued) |
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| |||||
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| Dunham | Dunham | Dunham | Dunham | ||||
|
|
| International | Small Cap | Small Cap | Emerging Markets | ||||
|
|
| Stock Fund | Value Fund | Growth Fund | Stock Fund | ||||
|
|
| Six Months |
| Six Months |
| Six Months |
| Six Months |
|
|
|
| Ended | Year Ended | Ended | Year Ended | Ended | Year Ended | Ended | Year Ended |
|
|
| April 30, 2013 | Oct. 31, 2012 | April 30, 2013 | Oct. 31, 2012 | April 30, 2013 | Oct. 31, 2012 | April 30, 2013 | Oct. 31, 2012 |
|
|
| (Unaudited) |
| (Unaudited) |
| (Unaudited) |
| (Unaudited) |
|
Operations: |
|
|
|
|
|
|
|
|
| |
Net investment income (loss) |
| $ 3,286 | $ 503,247 | $ 90,048 | $ (15,737) | $ (120,612) | $ (250,665) | $ (151,906) | $ 53,974 | |
Net realized gain (loss) from investments and |
|
|
|
|
|
|
|
|
| |
foreign currency transactions |
| 4,246,454 | (489,556) | 938,644 | 1,155,577 | 1,347,925 | 1,760,427 | 440,229 | (2,998,377) | |
Net change in unrealized appreciation |
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|
|
|
|
|
| |
(depreciation) on investments and foreign currency |
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|
| ||
| translations |
| 4,374,628 | 1,656,705 | 1,557,448 | 122,912 | 1,181,145 | (128,775) | 2,127,877 | 3,588,078 |
Net Increase in Net Assets |
|
|
|
|
|
|
|
|
| |
Resulting From Operations |
| 8,624,368 | 1,670,396 | 2,586,140 | 1,262,752 | 2,408,458 | 1,380,987 | 2,416,200 | 643,675 | |
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Distributions to Shareholders From: |
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| |
Net Realized Gains: |
|
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|
|
|
| |
| Class N |
|
|
| - | - | (909,245) | - | - | - |
| Class A |
|
|
| - | - | (178,467) | - | - | - |
| Class C |
|
|
| - | - | (169,483) | - | - | - |
Net Investment Income: |
|
|
|
|
|
|
|
|
| |
| Class N |
| (499,497) | (508,799) | (44,834) | - | - | - | - | - |
| Class A |
| (18,444) | (14,078) | - | - | - | - | - | - |
| Class C |
| (5,126) | (21,368) | - | - | - | - | - | - |
Total Distributions to Shareholders |
| (523,067) | (544,245) | (44,834) | - | (1,257,195) | - | - | - | |
|
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Share Transactions of |
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| |
Beneficial Interest: |
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|
| |
Net proceeds from shares sold |
|
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|
|
|
|
|
| |
| Class N |
| 3,408,502 | 11,708,509 | 900,279 | 3,348,460 | 2,240,673 | 3,250,304 | 2,363,937 | 4,364,936 |
| Class A |
| 1,581,921 | 1,250,596 | 489,321 | 5,022,092 | 1,509,773 | 1,458,642 | 5,916,627 | 12,053,214 |
| Class C |
| 263,216 | 790,287 | 83,057 | 209,099 | 216,443 | 426,185 | 244,233 | 486,636 |
Reinvestment of distributions |
|
|
|
|
|
|
|
|
| |
| Class N |
| 499,351 | 508,513 | 44,831 | - | 908,916 | - | - | - |
| Class A |
| 17,835 | 13,992 | - | - | 93,769 | - | - | - |
| Class C |
| 5,109 | 21,312 | - | - | 169,522 | - | - | - |
Cost of shares redeemed |
|
|
|
|
|
|
|
|
| |
| Class N |
| (8,942,609) | (7,415,516) | (4,470,865) | (3,373,703) | (3,574,538) | (4,620,292) | (3,622,099) | (3,497,100) |
| Class A |
| (227,048) | (1,038,862) | (116,381) | (4,710,983) | (272,324) | (1,182,609) | (6,881,595) | (1,716,777) |
| Class C |
| (1,025,850) | (1,877,711) | (445,495) | (834,091) | (601,318) | (1,093,124) | (360,785) | (778,793) |
Net Increase (Decrease) in Net Assets From |
|
|
|
|
|
|
|
|
| |
Share Transactions of Beneficial Interest |
| (4,419,573) | 3,961,120 | (3,515,253) | (339,126) | 690,916 | (1,760,894) | (2,339,682) | 10,912,116 | |
|
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|
|
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|
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|
|
Total Increase (Decrease) in Net Assets |
| 3,681,728 | 5,087,271 | (973,947) | 923,626 | 1,842,179 | (379,907) | 76,518 | 11,555,791 | |
|
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|
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Net Assets: |
|
|
|
|
|
|
|
|
| |
| Beginning of Period |
| 52,408,247 | 47,320,976 | 18,430,046 | 17,506,420 | 19,738,304 | 20,118,211 | 29,878,921 | 18,323,130 |
| End of Period* |
| $ 56,089,975 | $ 52,408,247 | $ 17,456,099 | $ 18,430,046 | $ 21,580,483 | $ 19,738,304 | $ 29,955,439 | $ 29,878,921 |
| * Includes undistributed net investment |
|
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|
| income (loss) at end of period |
| $ (82,666) | $ 437,115 | $ 29,147 | $ (16,067) | $ (332,671) | $ (212,059) | $ (184,142) | $ (32,236) |
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See accompanying notes to financial statements.
FINANCIAL HIGHLIGHTS |
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| |||||||
Dunham Monthly Distribution Fund |
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| ||||||
The table sets forth financial data for one share of beneficial interest outstanding throughout each period. |
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| Class N | Class A | |||||||||||
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| Ten Months |
| ||
|
| Six Months | Year Ended | Period Ended | Six Months | Year Ended | Ended | Year Ended | ||||||
|
| Ended | October 31, | October 31, | Ended | October 31, | October 31, | December 31, | ||||||
|
| April 30, 2013 | 2012 | 2011 | 2010 | 2009 | 2008* | April 30, 2013 | 2012 | 2011 | 2010 | 2009 | 2008 ~ | 2007 |
|
| (Unaudited) |
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|
| (Unaudited) |
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Net asset value, beginning of period | $ 37.22 | $ 35.87 | $ 36.52 | $ 34.09 | $ 34.78 | $ 37.32 | $ 36.82 | $ 35.58 | $ 36.32 | $ 33.99 | $ 34.78 | $ 46.78 | $ 51.01 | |
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Net investment income (loss)** | 0.29 | 0.14 | 0.01 | 0.22 | (0.03) | (0.05) | 0.24 | 0.03 | (0.09) | 0.14 | (0.11) | (0.56) | (0.18) |
| Net realized and unrealized gain (loss) *** | 1.93 | 2.41 | 0.53 | 3.35 | 1.39 | (2.35) | 1.91 | 2.40 | 0.54 | 3.33 | 1.37 | (9.08) | 1.08 |
| Total income (loss) from investment operations | 2.22 | 2.55 | 0.54 | 3.57 | 1.36 | (2.40) | 2.15 | 2.43 | 0.45 | 3.47 | 1.26 | (9.64) | 0.90 |
Less distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Distributions from net investment income | (0.33) | (0.22) | 0.00 | 0.00 | 0.00 | 0.00 | (0.33) | (0.21) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Distributions from net realized gains | (0.19) | (0.32) | (1.19) | (1.14) | (1.15) | (0.14) | (0.19) | (0.32) | (1.19) | (1.14) | (1.15) | (0.14) | (5.13) |
| Tax return of capital | (0.09) | (0.66) | 0.00 | 0.00 | (0.90) | 0.00 | (0.09) | (0.66) | 0.00 | 0.00 | (0.90) | (2.22) | 0.00 |
| Total distributions | (0.61) | (1.20) | (1.19) | (1.14) | (2.05) | (0.14) | (0.61) | (1.19) | (1.19) | (1.14) | (2.05) | (2.36) | (5.13) |
Net asset value, end of period | $ 38.83 | $ 37.22 | $ 35.87 | $ 36.52 | $ 34.09 | $ 34.78 | $ 38.36 | $ 36.82 | $ 35.58 | $ 36.32 | $ 33.99 | $ 34.78 | $ 46.78 | |
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Total return + | 5.77% | 7.19% | 1.47% | 10.64% | 4.29% | (6.44)% | 5.89% | 6.92% | 1.22% | 10.38% | 3.99% | (21.27)% | 1.72% | |
Ratios/Supplemental Data: |
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|
| |
| Net assets, end of period (in 000s) | $ 132,320 | $ 127,346 | $ 65,621 | $ 38,328 | $16,612 | $ 291 | $ 56,546 | $51,485 | $ 32,381 | $ 23,453 | $24,080 | $ 34,552 | $ 18,223 |
| Ratios of expenses to average net assets: |
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|
|
|
|
|
|
|
|
| After waivers ^ | 2.35% | 2.75% | 2.57% | 2.45% | 2.35% | 3.40% | 2.60% | 3.00% | 2.82% | 2.70% | 2.60% | 3.65% | 2.25% |
| Dividends/borrowings on short sales ^ + | 0.26% | 0.52% | 0.30% | 0.26% | 0.10% | 0.00% | 0.26% | 0.52% | 0.30% | 0.26% | 0.10% | 0.00% | 0.00% |
| Excluding dividends/borrowings on short sales: |
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| Before fee waivers ^ + | 2.11% | 2.23% | 2.27% | 2.19% | 2.28% | 3.40% | 2.36% | 2.48% | 2.52% | 2.44% | 2.53% | 3.65% | 2.36% |
| After fee waivers ^ + | 2.09% | 2.23% | 2.27% | 2.19% | 2.25% | 3.40% | 2.34% | 2.48% | 2.52% | 2.44% | 2.53% | 3.65% | 2.25% |
| Ratios of net investment income (loss) to |
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| average net assets: |
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| Before fee waivers ^ | 1.10% | 0.39% | 0.03% | 0.62% | (0.11)% | (1.44)% | 0.85% | 0.14% | (0.22)% | 0.37% | (0.36)% | (1.69)% | (0.44)% |
| After fee waivers ^ | 1.12% | 0.39% | 0.03% | 0.62% | (0.08)% | (1.44)% | 0.87% | 0.14% | (0.22)% | 0.37% | (0.33)% | (1.69)% | (0.33)% |
| Portfolio turnover rate | 83% (1) | 205% | 277% | 370% | 480% | 160% (1) | 83% (1) | 205% | 277% | 370% | 480% | 160% (1) | 213% |
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| Class C |
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| Ten Months |
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| Six Months | Year Ended | Ended | Year Ended |
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| Ended | October 31, | October 31, | December 31, |
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| |||
|
| April 30, 2013 | 2012 | 2011 | 2010 | 2009 | 2008 ~ | 2007 |
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| (Unaudited) |
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Net asset value, beginning of period | $ 32.29 | $ 31.55 | $ 32.59 | $ 30.83 | $ 32.00 | $ 43.50 | $ 48.12 |
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| |
Income (loss) from investment operations: |
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| |
| Net investment loss** | 0.10 | (0.18) | (0.32) | (0.12) | (0.33) | (0.75) | (0.55) |
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| Net realized and unrealized gain (loss) *** | 1.65 | 2.09 | 0.47 | 3.02 | 1.21 | (8.39) | 1.06 |
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| Total income (loss) from investment operations | 1.75 | 1.91 | 0.15 | 2.90 | 0.88 | (9.14) | 0.51 |
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Less distributions: |
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| |
| Distributions from net investment income | (0.33) | (0.19) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
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| Distributions from net realized gains | (0.19) | (0.32) | (1.19) | (1.14) | (1.15) | (0.14) | (5.13) |
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| Tax return of capital | (0.09) | (0.66) | 0.00 | 0.00 | (0.90) | (2.22) | 0.00 |
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| Total distributions | (0.61) | (1.17) | (1.19) | (1.14) | (2.05) | (2.36) | (5.13) |
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Net asset value, end of period | $ 33.43 | $ 32.29 | $ 31.55 | $ 32.59 | $ 30.83 | $ 32.00 | $ 43.50 |
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| |
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Total return + | 5.49% | 6.13% | 0.43% | 9.59% | 3.12% | (21.74)% | 0.98% |
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| |
Ratios/Supplemental Data: |
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| |
| Net assets, end of period (in 000s) | $ 35,941 | $ 30,206 | $ 27,701 | $ 21,181 | $19,553 | $ 28,310 | $ 15,161 |
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| Ratios of expenses to average net assets: |
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| After waivers ^ | 3.35% | 3.75% | 3.57% | 3.45% | 3.35% | 4.40% | 3.00% |
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| Dividends/borrowings on short sales ^ | 0.26% | 0.52% | 0.30% | 0.26% | 0.10% | 0.00% | 0.00% |
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| Excluding dividends/borrowings on short sales: |
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| |
| Before fee waivers ^ + | 3.11% | 3.23% | 3.27% | 3.19% | 3.28% | 4.40% | 3.11% |
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| After fee waivers ^ + | 3.09% | 3.23% | 3.27% | 3.19% | 3.25% | 4.40% | 3.00% |
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| Ratios of net investment income (loss) to |
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| average net assets: |
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| Before fee waivers ^ | 0.10% | (0.61)% | (0.97)% | (0.38)% | (1.11)% | (2.44)% | (1.20)% |
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| After fee waivers ^ | 0.12% | (0.61)% | (0.97)% | (0.38)% | (1.08)% | (2.44)% | (1.09)% |
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| Portfolio turnover rate | 83% (1) | 205% | 277% | 370% | 480% | 160% (1) | 213% |
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* | Class N shares commenced operations on September 29, 2008. |
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** | The net investment income (loss) per share data was determined using the average shares outstanding throughout each period. |
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| |||||||
*** | Realized and unrealized gain (loss) per share does not correlate to the aggregate of the net realized and unrealized loss in the Statements of Operations for the year ended October 31, 2011, primarily due to the timing of the sales and repurchases of the Fund’s shares in relation to fluctuating market values for the Fund’s portfolio. | |||||||||||||
^ Annualized for periods less than one year. |
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+Assumes reinvestment of all dividends and distributions, if any. Aggregate (not annualized) total return is shown for any period shorter than one year. Total return does not reflect the deductions of taxes that a shareholder would pay on distributions or on the redemption of shares. | ||||||||||||||
(1) Not annualized |
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See accompanying notes to financial statements.
FINANCIAL HIGHLIGHTS |
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Dunham Corporate/Government Bond Fund |
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The table sets forth financial data for one share of beneficial interest outstanding throughout each period. | |||||||||||||
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| Class N |
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| Six Months | Year Ended |
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| ||||
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| Ended | October 31, |
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| ||||
|
| April 30, 2013 | 2012 | 2011 | 2010 | 2009 | 2008 |
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| (Unaudited) |
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Net asset value, beginning of period | $ 14.74 | $ 14.32 | $ 14.99 | $ 14.32 | $ 12.73 | $ 13.65 |
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| |
Income (loss) from investment operations: |
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|
| |
| Net investment income* | 0.16 | 0.36 | 0.52 | 0.54 | 0.52 | 0.53 |
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| Net realized and unrealized gain (loss) | 0.16 | 0.77 | (0.20) | 0.76 | 1.60 | (0.90) |
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| Total income (loss) from investment operations | 0.32 | 1.13 | 0.32 | 1.30 | 2.12 | (0.37) |
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Less distributions: |
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| |
| Distributions from net investment income | (0.18) | (0.42) | (0.56) | (0.56) | (0.53) | (0.53) |
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| Distributions from net realized gains | (0.27) | (0.29) | (0.43) | (0.07) | 0.00 | (0.02) |
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| Total distributions | (0.45) | (0.71) | (0.99) | (0.63) | (0.53) | (0.55) |
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|
Net asset value, end of period | $ 14.61 | $ 14.74 | $ 14.32 | $ 14.99 | $ 14.32 | $ 12.73 |
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| |
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Total return + | 2.22% | 8.10% | 2.33% | 9.32% | 16.92% | (3.21)% |
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| |
Ratios/Supplemental Data: |
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|
| |
| Net assets, end of period (in 000s) | $ 108,283 | $ 103,912 | $ 58,810 | $ 78,181 | $ 65,445 | $ 71,815 |
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| Ratios of expenses to average net assets: |
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|
|
| Before fee waivers ^ | 1.23% | 1.14% | 1.30% | 1.37% | 1.21% | 1.07% |
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|
|
|
| After fee waivers ^ | 1.23% | 1.14% | 1.30% | 1.37% | 1.18% | 1.07% |
|
|
|
|
|
|
| Ratios of net investment income to |
|
|
|
|
|
|
|
|
|
|
|
|
| average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 2.18% | 2.50% | 3.62% | 3.66% | 3.77% | 3.91% |
|
|
|
|
|
|
| After fee waivers ^ | 2.18% | 2.50% | 3.62% | 3.66% | 3.80% | 3.91% |
|
|
|
|
|
|
| Portfolio turnover rate | 127% (1) | 211% | 178% | 174% | 266% | 253% |
|
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|
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|
|
|
|
| Class A | Class C | ||||||||||
|
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|
|
|
|
|
| Six Months | Year Ended | Six Months | Year Ended | ||||||||
|
| Ended | October 31, | Ended | October 31, | ||||||||
|
| April 30, 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | April 30, 2013 | 2012 | 2011 | 2010 | 2009 | 2008 |
|
| (Unaudited) |
|
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period | $ 14.73 | $ 14.31 | $ 14.98 | $ 14.36 | $ 12.77 | $ 13.69 | $ 14.64 | $ 14.23 | $ 14.90 | $ 14.24 | $ 12.66 | $ 13.57 | |
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net investment income* | 0.14 | 0.29 | 0.49 | 0.50 | 0.48 | 0.50 | 0.10 | 0.27 | 0.41 | 0.42 | 0.41 | 0.43 |
| Net realized and unrealized gain (loss) | 0.16 | 0.79 | (0.20) | 0.76 | 1.61 | (0.90) | 0.16 | 0.74 | (0.20) | 0.76 | 1.59 | (0.89) |
| Total income (loss) from investment operations | 0.30 | 1.08 | 0.29 | 1.26 | 2.09 | (0.40) | 0.26 | 1.01 | 0.21 | 1.18 | 2.00 | (0.46) |
Less distributions: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Distributions from net investment income | (0.16) | (0.37) | (0.53) | (0.57) | (0.50) | (0.50) | (0.12) | (0.31) | (0.45) | (0.45) | (0.42) | (0.43) |
| Distributions from net realized gains | (0.27) | (0.29) | (0.43) | (0.07) | 0.00 | (0.02) | (0.27) | (0.29) | (0.43) | (0.07) | 0.00 | (0.02) |
| Total distributions | (0.43) | (0.66) | (0.96) | (0.64) | (0.50) | (0.52) | (0.39) | (0.60) | (0.88) | (0.52) | (0.42) | (0.45) |
Net asset value, end of period | $ 14.60 | $ 14.73 | $ 14.31 | $ 14.98 | $ 14.36 | $ 12.77 | $ 14.51 | $ 14.64 | $ 14.23 | $ 14.90 | $ 14.24 | $ 12.66 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total return + | 2.10% | 7.78% | 2.15% | 8.98% | 16.61% | (3.45)% | 1.86% | 7.30% | 1.57% | 8.48% | 16.05% | (3.82)% | |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 5,460 | $ 3,598 | $ 610 | $ 518 | $ 212 | $ 188 | $ 9,632 | $ 9,007 | $ 9,250 | $ 12,466 | $ 13,119 | $ 12,890 |
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 1.48% | 1.39% | 1.55% | 1.62% | 1.46% | 1.32% | 1.98% | 1.89% | 2.05% | 2.12% | 1.96% | 1.82% |
| After fee waivers ^ | 1.48% | 1.39% | 1.55% | 1.62% | 1.43% | 1.32% | 1.98% | 1.89% | 2.05% | 2.12% | 1.93% | 1.82% |
| Ratios of net investment income to |
|
|
|
|
|
|
|
|
|
|
|
|
| average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 1.93% | 2.25% | 3.37% | 3.41% | 3.52% | 3.66% | 1.43% | 1.75% | 2.87% | 2.91% | 3.02% | 3.16% |
| After fee waivers ^ | 1.93% | 2.25% | 3.37% | 3.41% | 3.55% | 3.66% | 1.43% | 1.75% | 2.87% | 2.91% | 3.05% | 3.16% |
| Portfolio turnover rate | 127% (1) | 211% | 178% | 174% | 266% | 253% | 127% (1) | 211% | 178% | 174% | 266% | 253% |
|
|
|
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|
|
|
|
|
|
|
|
|
|
* The net investment income per share data was determined using the average shares outstanding throughout each period. |
|
|
| ||||||||||
^ Annualized for periods less than one year. |
| ||||||||||||
+Assumes reinvestment of all dividends and distributions, if any. Aggregate (not annualized) total return is shown for any period shorter than one year. Total return does not reflect the deductions of taxes that a shareholder would pay on distributions or on the redemption of shares. | |||||||||||||
(1) | Not annualized. |
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|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
FINANCIAL HIGHLIGHTS |
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|
| |
Dunham High-Yield Bond Fund |
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| |
The table sets forth financial data for one share of beneficial interest outstanding throughout each period. | |||||||||||||
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| Class N |
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| |||||
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|
| Six Months | Year Ended |
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| ||||
|
| Ended | October 31, |
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|
|
|
|
| ||||
|
| April 30, 2013 | 2012 | 2011 | 2010 | 2009 | 2008 |
|
|
|
|
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
Net asset value, beginning of period | $ 9.52 | $ 9.08 | $ 9.36 | $ 8.65 | $ 7.30 | $ 9.79 |
|
|
|
|
|
| |
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net investment income** | 0.24 | 0.53 | 0.65 | 0.72 | 0.62 | 0.63 |
|
|
|
|
|
|
| Net realized and unrealized gain (loss) | 0.28 | 0.44 | (0.28) | 0.70 | 1.34 | (2.49) |
|
|
|
|
|
|
| Total income (loss) from investment operations | 0.52 | 0.97 | 0.37 | 1.42 | 1.96 | (1.86) |
|
|
|
|
|
|
Less distributions: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Distributions from net investment income | (0.24) | (0.53) | (0.65) | (0.71) | (0.61) | (0.63) |
|
|
|
|
|
|
| Total distributions | (0.24) | (0.53) | (0.65) | (0.71) | (0.61) | (0.63) |
|
|
|
|
|
|
Net asset value, end of period | $ 9.80 | $ 9.52 | $ 9.08 | $ 9.36 | $ 8.65 | $ 7.30 |
|
|
|
|
|
| |
|
|
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|
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|
|
Total return + | 5.57% | 10.96% | 4.03% | 17.11% | 28.20% | (20.10)% |
|
|
|
|
|
| |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 126,201 | $ 114,810 | $ 45,586 | $ 58,597 | $ 51,747 | $ 43,837 |
|
|
|
|
|
|
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 1.09% | 1.23% | 1.38% | 1.23% | 1.58% | 1.57% |
|
|
|
|
|
|
| After fee waivers ^ | 1.09% | 1.23% | 1.38% | 1.23% | 1.55% | 1.57% |
|
|
|
|
|
|
| Ratios of net investment income to |
|
|
|
|
|
|
|
|
|
|
|
|
| average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 5.05% | 5.70% | 6.92% | 7.99% | 8.00% | 6.81% |
|
|
|
|
|
|
| After fee waivers ^ | 5.05% | 5.70% | 6.92% | 7.99% | 8.03% | 6.81% |
|
|
|
|
|
|
| Portfolio turnover rate | 52% (1) | 58% | 49% | 60% | 103% | 75% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class A | Class C | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six Months | Year Ended | Six Months | Year Ended | ||||||||
|
| Ended | October 31, | Ended | October 31, | ||||||||
|
| April 30, 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | April 30, 2013 | 2012 | 2011 | 2010 | 2009 | 2008 |
|
| (Unaudited) |
|
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.59 | $ 9.15 | $ 9.42 | $ 8.71 | $ 7.34 | $ 9.81 | $ 9.47 | $ 9.04 | $ 9.31 | $ 8.61 | $ 7.27 | $ 9.75 | |
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net investment income** | 0.23 | 0.51 | 0.63 | 0.70 | 0.63 | 0.60 | 0.20 | 0.47 | 0.58 | 0.65 | 0.55 | 0.55 |
| Net realized and unrealized gain (loss) | 0.28 | 0.44 | (0.27) | 0.71 | 1.33 | (2.50) | 0.29 | 0.43 | (0.28) | 0.69 | 1.35 | (2.47) |
| Total income (loss) from investment operations | 0.51 | 0.95 | 0.36 | 1.41 | 1.96 | (1.90) | 0.49 | 0.90 | 0.30 | 1.34 | 1.90 | (1.92) |
Less distributions: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Distributions from net investment income | (0.23) | (0.51) | (0.63) | (0.70) | (0.59) | (0.57) | (0.21) | (0.47) | (0.57) | (0.64) | (0.56) | (0.56) |
| Total distributions | (0.23) | (0.51) | (0.63) | (0.70) | (0.59) | (0.57) | (0.21) | (0.47) | (0.57) | (0.64) | (0.56) | (0.56) |
Net asset value, end of period | $ 9.87 | $ 9.59 | $ 9.15 | $ 9.42 | $ 8.71 | $ 7.34 | $ 9.75 | $ 9.47 | $ 9.04 | $ 9.31 | $ 8.61 | $ 7.27 | |
|
|
|
|
|
|
|
|
|
|
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|
|
Total return + | 5.40% | 10.70% | 3.84% | 16.85% | 27.91% | (20.43)% | 5.21% | 10.19% | 3.28% | 16.16% | 27.37% | (20.73)% | |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 17,107 | $ 13,722 | $ 6,457 | $ 5,366 | $ 4,909 | $ 1,590 | $ 15,609 | $ 14,457 | $ 10,404 | $ 9,214 | $ 7,678 | $ 8,203 |
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 1.34% | 1.48% | 1.63% | 1.48% | 1.83% | 1.82% | 1.84% | 1.98% | 2.13% | 1.98% | 2.33% | 2.32% |
| After fee waivers ^ | 1.34% | 1.48% | 1.63% | 1.48% | 1.80% | 1.82% | 1.84% | 1.98% | 2.13% | 1.98% | 2.30% | 2.32% |
| Ratios of net investment income to |
|
|
|
|
|
|
|
|
|
|
|
|
| average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 4.80% | 5.45% | 6.67% | 7.74% | 7.75% | 6.56% | 4.30% | 4.95% | 6.17% | 7.24% | 7.25% | 6.06% |
| After fee waivers ^ | 4.80% | 5.45% | 6.67% | 7.74% | 7.78% | 6.56% | 4.30% | 4.95% | 6.17% | 7.24% | 7.28% | 6.06% |
| Portfolio turnover rate | 52% (1) | 58% | 49% | 60% | 103% | 75% | 52% (1) | 58% | 49% | 60% | 103% | 75% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
**The net investment income per share data was determined using the average shares outstanding throughout each period. |
|
| |||||||||||
+Assumes reinvestment of all dividends and distributions, if any. Aggregate (not annualized) total return is shown for any period shorter than one year. Total return does not reflect the deductions of taxes that a shareholder would pay on distributions or on the redemption of shares. | |||||||||||||
^ Annualized for periods less than one year. |
|
| |||||||||||
(1) | Not annualized. |
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
FINANCIAL HIGHLIGHTS |
|
|
|
|
|
|
|
| |
Dunham Loss Averse Equity Income Fund* |
|
|
|
|
|
|
| ||
The table sets forth financial data for one share of beneficial interest outstanding throughout each period. | |||||||||
|
|
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| Class N |
| ||||||
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|
| Six Months | Year Ended | Period Ended |
|
|
| ||
|
| Ended | October 31, | October 31, |
|
|
| ||
|
| April 30, 2013 | 2012 | 2011 | 2010 |
|
|
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.95 | $ 10.10 | $ 10.17 | $ 10.00 |
|
|
|
| |
Income (loss) from investment operations: |
|
|
|
|
|
|
|
| |
| Net investment income (loss)** | 0.17 | 0.30 | 0.17 | (0.13) |
|
|
|
|
| Net realized and unrealized gain (loss) | 0.22 | 0.02 | (0.15) | 0.30 |
|
|
|
|
| Total income from investment operations | 0.39 | 0.32 | 0.02 | 0.17 |
|
|
|
|
Less distributions: |
|
|
|
|
|
|
|
| |
| Distributions from net investment income | (0.12) | (0.35) | 0.00 | 0.00 |
|
|
|
|
| Distributions from net realized gains | 0.00 | 0.00 | (0.09) | 0.00 |
|
|
|
|
| Tax return of Capital | 0.00 | (0.12) | 0.00 | 0.00 |
|
|
|
|
| Total distributions | (0.12) | (0.47) | (0.09) | 0.00 |
|
|
|
|
Net asset value, end of period | $ 10.22 | $ 9.95 | $ 10.10 | $ 10.17 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Total return +, # | 3.93% | 3.29% | 0.20% | 1.70% |
|
|
|
| |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 8,733 | $ 9,002 | $ 8,798 | $ 4,303 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
|
|
| Before fee waivers^ | 1.57% | 2.28% | 1.98% | 2.75% |
|
|
|
|
| After fee waivers^ | 1.57% | 2.28% | 1.98% | 2.75% |
|
|
|
|
| Ratios of net investment income (loss) to |
|
|
|
|
|
|
|
|
| average net assets: ^ | 3.45% | 2.94% | 1.71% | (2.39)% |
|
|
|
|
| Portfolio turnover rate | 163% (1) | 418% | 704% | 402% (1) |
|
|
|
|
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|
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|
|
|
|
|
| Class A | Class C | ||||||
|
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|
|
|
|
| Six Months | Year Ended | Period Ended | Six Months | Year Ended | Period Ended | ||
|
| Ended | October 31, | October 31, | Ended | October 31, | October 31, | ||
|
| April 30, 2013 | 2012 | 2011 | 2010 | April 30, 2013 | 2012 | 2011 | 2010 |
|
| (Unaudited) |
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period | $ 9.98 | $ 10.06 | $ 10.16 | $ 10.00 | $ 9.86 | $ 9.96 | $ 10.13 | $ 10.00 | |
Income (loss) from investment operations: |
|
|
|
|
|
|
|
| |
| Net investment income (loss)** | 0.16 | 0.26 | 0.02 | (0.14) | 0.12 | 0.17 | 0.07 | (0.17) |
| Net realized and unrealized gain (loss) | 0.22 | 0.03 | (0.03) | 0.30 | 0.21 | 0.05 | (0.15) | 0.30 |
| Total income (loss) from investment operations | 0.38 | 0.29 | (0.01) | 0.16 | 0.33 | 0.22 | (0.08) | 0.13 |
Less distributions: |
|
|
|
|
|
|
|
| |
| Distributions from net investment income | (0.11) | (0.25) | 0.00 | 0.00 | (0.08) | (0.20) | 0.00 | 0.00 |
| Distributions from net realized gains | 0.00 | 0.00 | (0.09) | 0.00 | 0.00 | 0.00 | (0.09) | 0.00 |
| Tax return of Capital | 0.00 | (0.12) | 0.00 | 0.00 | 0.00 | (0.12) | 0.00 | 0.00 |
| Total distributions | (0.11) | (0.37) | (0.09) | 0.00 | (0.08) | (0.32) | (0.09) | 0.00 |
Net asset value, end of period | $ 10.25 | $ 9.98 | $ 10.06 | $ 10.16 | $ 10.11 | $ 9.86 | $ 9.96 | $ 10.13 | |
|
|
|
|
|
|
|
|
|
|
Total return +, # | 3.81% | 3.00% | (0.10)% | 1.60% | 3.36% | 2.27% | (0.79)% | 1.30% | |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 1,812 | $ 2,230 | $ 1,788 | $ 6,224 | $ 1,946 | $ 1,786 | $ 1,067 | $ 160 |
|
|
|
|
|
|
|
|
|
|
| Ratios of expenses to average net assets: ^ |
|
|
|
|
|
|
|
|
| Before fee waivers^ | 1.82% | 2.53% | 2.23% | 3.00% | 2.57% | 3.28% | 2.98% | 3.75% |
| After fee waivers^ | 1.82% | 2.53% | 2.23% | 3.00% | 2.57% | 3.28% | 2.98% | 3.75% |
| Ratios of net investment income (loss) to |
|
|
|
|
|
|
|
|
| average net assets: ^ | 3.20% | 2.69% | 1.46% | (2.64)% | 2.45% | 1.94% | 0.71% | (3.39)% |
| Portfolio turnover rate | 163% (1) | 418% | 704% | 402% (1) | 163% (1) | 418% | 704% | 402% (1) |
|
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|
* The Fund commenced operations on April 30, 2010. |
|
|
|
|
|
|
| ||
**The net investment income (loss) per share data was determined using the average shares outstanding throughout each period. |
|
|
| ||||||
^ Annualized for periods less than one year. |
|
|
|
|
|
|
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| |
+Assumes reinvestment of all dividends and distributions, if any. Aggregate (not annualized) total return is shown for any period shorter than one year. Total return does not reflect the deductions of taxes that a shareholder would pay on distributions or on the redemption of shares. | |||||||||
# Includes adjustments in accordance with accounting principles generally accepted in the United States and, consequently, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. | |||||||||
(1) | Not annualized. |
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See accompanying notes to financial statements.
FINANCIAL HIGHLIGHTS |
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Dunham Appreciation & Income Fund |
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The table sets forth financial data for one share of beneficial interest outstanding throughout each period. | |||||||||||||
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| Class N |
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| Six Months | Year Ended |
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| Ended | October 31, |
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| ||||
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| April 30, 2013 | 2012 | 2011 | 2010 | 2009 | 2008 |
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| (Unaudited) |
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Net asset value, beginning of period | $ 8.90 | $ 8.86 | $ 8.47 | $ 7.53 | $ 5.77 | $ 10.13 |
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Income (loss) from investment operations: |
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| |
| Net investment income** | 0.07 | 0.10 | 0.08 | 0.16 | 0.14 | 0.03 |
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| Net realized and unrealized gain (loss) | 0.50 | 0.05 | 0.55 | 0.90 | 1.70 | (3.46) |
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| Total income (loss) from investment operations | 0.57 | 0.15 | 0.63 | 1.06 | 1.84 | (3.43) |
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Less distributions: |
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| Distributions from net investment income | (0.25) | (0.11) | (0.24) | (0.12) | (0.08) | (0.30) |
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| Distributions from net realized gains | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (0.36) |
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| Distributions from paid in capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (0.27) |
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| Total distributions | (0.25) | (0.11) | (0.24) | (0.12) | (0.08) | (0.93) |
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Net asset value, end of period | $ 9.22 | $ 8.90 | $ 8.86 | $ 8.47 | $ 7.53 | $ 5.77 |
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| |
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Total return + | 6.54% | 1.83% | 7.56% | 14.22% | 32.37% | (37.06)% |
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Ratios/Supplemental Data: |
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| Net assets, end of period (in 000s) | $ 15,039 | $ 23,843 | $ 24,475 | $ 23,718 | $ 20,515 | $ 24,521 |
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| Ratios of expenses to average net assets: |
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| Before fee waivers ^ | 1.39% | 1.60% | 1.91% | 1.52% | 1.86% | 1.90% |
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| After fee waivers ^ | 1.39% | 1.60% | 1.91% | 1.52% | 1.83% | 1.90% |
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| Ratios of net investment income to |
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| average net assets: |
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| Before fee waivers ^ | 1.59% | 1.13% | 0.90% | 1.99% | 2.15% | 0.41% |
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| After fee waivers ^ | 1.59% | 1.13% | 0.90% | 1.99% | 2.18% | 0.41% |
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| Portfolio turnover rate | 29% (1) | 51% | 69% | 71% | 69% | 104% |
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| Class A | Class C | ||||||||||
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| Six Months | Year Ended | Six Months | Year Ended | ||||||||
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| Ended | October 31, | Ended | October 31, | ||||||||
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| April 30, 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | April 30, 2013 | 2012 | 2011 | 2010 | 2009 | 2008 |
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| (Unaudited) |
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| (Unaudited) |
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Net asset value, beginning of period | $ 8.88 | $ 8.83 | $ 8.45 | $ 7.52 | $ 5.74 | $ 10.11 | $ 8.74 | $ 8.70 | $ 8.32 | $ 7.40 | $ 5.64 | $ 9.95 | |
Income (loss) from investment operations: |
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| Net investment income (loss)** | 0.06 | 0.08 | 0.06 | 0.14 | 0.13 | 0.01 | 0.03 | 0.01 | (0.01) | 0.08 | 0.07 | (0.05) |
| Net realized and unrealized gain (loss) | 0.49 | 0.06 | 0.55 | 0.90 | 1.70 | (3.45) | 0.49 | 0.06 | 0.55 | 0.89 | 1.69 | (3.41) |
| Total income (loss) from investment operations | 0.55 | 0.14 | 0.61 | 1.04 | 1.83 | (3.44) | 0.52 | 0.07 | 0.54 | 0.97 | 1.76 | (3.46) |
Less distributions: |
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| Distributions from net investment income | (0.22) | (0.09) | (0.23) | (0.11) | (0.05) | (0.27) | (0.16) | (0.03) | (0.16) | (0.05) | 0.00 | (0.02) |
| Distributions from net realized gains | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (0.36) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (0.36) |
| Distributions from paid in capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (0.30) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (0.47) |
| Total distributions | (0.22) | (0.09) | (0.23) | (0.11) | (0.05) | (0.93) | (0.16) | (0.03) | (0.16) | (0.05) | 0.00 | (0.85) |
Net asset value, end of period | $ 9.21 | $ 8.88 | $ 8.83 | $ 8.45 | $ 7.52 | $ 5.74 | $ 9.10 | $ 8.74 | $ 8.70 | $ 8.32 | $ 7.40 | $ 5.64 | |
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Total return + | 6.39% | 1.63% | 7.33% | 13.96% | 32.09% | (37.32)% | 6.03% | 0.84% | 6.49% | 13.14% | 31.21% | (37.80)% | |
Ratios/Supplemental Data: |
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| Net assets, end of period (in 000s) | $ 4,873 | $ 4,470 | $ 2,994 | $ 7,530 | $ 2,498 | $ 468 | $ 3,471 | $ 3,867 | $ 4,130 | $ 3,471 | $ 3,513 | $ 3,642 |
| Ratios of expenses to average net assets: |
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| Before fee waivers ^ | 1.64% | 1.85% | 2.16% | 1.77% | 2.11% | 2.15% | 2.39% | 2.60% | 2.91% | 2.52% | 2.86% | 2.90% |
| After fee waivers ^ | 1.64% | 1.85% | 2.16% | 1.77% | 2.08% | 2.15% | 2.39% | 2.60% | 2.91% | 2.52% | 2.83% | 2.90% |
| Ratios of net investment income (loss) to |
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| average net assets: |
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| Before fee waivers ^ | 1.34% | 0.88% | 0.65% | 1.74% | 1.90% | 0.16% | 0.59% | 0.13% | (0.10)% | 0.99% | 1.15% | (0.59)% |
| After fee waivers ^ | 1.34% | 0.88% | 0.65% | 1.74% | 1.93% | 0.16% | 0.59% | 0.13% | (0.10)% | 0.99% | 1.18% | (0.59)% |
| Portfolio turnover rate | 29% (1) | 51% | 69% | 71% | 69% | 104% | 29% (1) | 51% | 69% | 71% | 69% | 104% |
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**The net investment income (loss) per share data was determined using the average shares outstanding throughout each period. |
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+Assumes reinvestment of all dividends and distributions, if any. Aggregate (not annualized) total return is shown for any period shorter than one year. Total return does not reflect the deductions of taxes that a shareholder would pay on distributions or on the redemption of shares. | |||||||||||||
^ Annualized for periods less than one year. |
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(1) | Not annualized. |
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See accompanying notes to financial statements.
FINANCIAL HIGHLIGHTS |
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Dunham Large Cap Value Fund |
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The table sets forth financial data for one share of beneficial interest outstanding throughout each period. | ||||||||||||||
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| Class N |
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| Six Months | Year Ended |
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| Ended | October 31, |
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| April 30, 2013 | 2012 | 2011 | 2010 | 2009 | 2008 |
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| (Unaudited) |
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Net asset value, beginning of period | $ 11.74 | $ 10.60 | $ 9.96 | $ 8.70 | $ 8.09 | $ 13.30 |
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Income (loss) from investment operations: |
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| Net investment income * | 0.07 | 0.12 | 0.06 | 0.06 | 0.07 | 0.10 |
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| Net realized and unrealized gain (loss) | 1.35 | 1.07 | 0.64 | 1.25 | 0.62 | (4.90) |
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| Total income (loss) from investment operations | 1.42 | 1.19 | 0.70 | 1.31 | 0.69 | (4.80) |
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Less distributions: |
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| Distributions from net investment income | (0.13) | (0.05) | (0.06) | (0.05) | (0.08) | (0.14) |
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| Distributions from net realized gains | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (0.27) |
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| Total distributions | (0.13) | (0.05) | (0.06) | (0.05) | (0.08) | (0.41) |
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Net asset value, end of period | $ 13.03 | $ 11.74 | $ 10.60 | $ 9.96 | $ 8.70 | $ 8.09 |
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Total return + | 12.21% | 11.29% | 7.06% | 15.11% | 8.72% | (37.14)% |
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Ratios/Supplemental Data: |
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| Net assets, end of period (in 000s) | $ 33,886 | $ 37,650 | $ 34,171 | $ 31,436 | $ 29,315 | $ 32,126 |
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| Ratios of expenses to average net assets: |
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| Before fee waivers ^ | 1.03% | 1.17% | 1.62% | 1.40% | 1.72% | 1.85% |
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| After fee waivers ^ | 1.03% | 1.17% | 1.62% | 1.40% | 1.69% | 1.85% |
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| �� |
| Ratios of net investment income to |
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| average net assets: |
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| Before fee waivers ^ | 1.12% | 1.04% | 0.53% | 0.61% | 0.90% | 0.71% |
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| After fee waivers ^ | 1.12% | 1.04% | 0.53% | 0.61% | 0.93% | 0.71% |
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| Portfolio turnover rate | 4% (1) | 30% | 30% | 23% | 47% | 21% |
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| Class A |
| Class C | ||||||||||
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| Six Months | Year Ended | Six Months | Year Ended | |||||||||
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| Ended | October 31, | Ended | October 31, | |||||||||
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| April 30, 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | April 30, 2013 | 2012 |
| 2011 | 2010 | 2009 | 2008 |
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| (Unaudited) |
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| (Unaudited) |
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Net asset value, beginning of period | $ 11.72 | $ 10.57 | $ 9.95 | $ 8.69 | $ 8.06 | $ 13.28 | $ 11.36 | $ 10.31 |
| $ 9.73 | $ 8.53 | $ 7.93 | $ 13.04 | |
Income (loss) from investment operations: |
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| Net investment income (loss)* | 0.05 | 0.09 | 0.04 | 0.01 | 0.05 | 0.07 | 0.01 | 0.00 | (a) | (0.05) | (0.04) | (0.01) | (0.01) |
| Net realized and unrealized gain (loss) | 1.35 | 1.08 | 0.64 | 1.28 | 0.63 | (4.89) | 1.32 | 1.05 |
| 0.63 | 1.24 | 0.61 | (4.81) |
| Total income (loss) from investment operations | 1.40 | 1.17 | 0.68 | 1.29 | 0.68 | (4.82) | 1.33 | 1.05 |
| 0.58 | 1.20 | 0.60 | (4.82) |
Less distributions: |
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| Distributions from net investment income | (0.10) | (0.02) | (0.06) | (0.03) | (0.05) | (0.13) | (0.01) | 0.00 |
| 0.00 | 0.00 | 0.00 | (0.02) |
| Distributions from net realized gains | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (0.27) | 0.00 | 0.00 |
| 0.00 | 0.00 | 0.00 | (0.27) |
| Total distributions | (0.10) | (0.02) | (0.06) | (0.03) | (0.05) | (0.40) | (0.01) | 0.00 |
| 0.00 | 0.00 | 0.00 | (0.29) |
Net asset value, end of period | $ 13.02 | $ 11.72 | $ 10.57 | $ 9.95 | $ 8.69 | $ 8.06 | $ 12.68 | $ 11.36 |
| $ 10.31 | $ 9.73 | $ 8.53 | $ 7.93 | |
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Total return + | 12.08% | 11.04% | 6.78% | 14.82% | 8.55% | (37.34)% | 11.67% | 10.18% |
| 5.96% | 14.07% | 7.57% | (37.74)% | |
Ratios/Supplemental Data: |
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| |
| Net assets, end of period (in 000s) | $ 3,578 | $ 2,969 | $ 2,874 | $ 3,844 | $ 55 | $ 90 | $ 5,009 | $ 5,431 |
| $ 6,129 | $ 5,769 | $ 4,953 | $ 5,069 |
| Ratios of expenses to average net assets: |
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| Before fee waivers ^ | 1.28% | 1.42% | 1.87% | 1.65% | 1.97% | 2.10% | 2.03% | 2.17% |
| 2.62% | 2.40% | 2.72% | 2.85% |
| After fee waivers ^ | 1.28% | 1.42% | 1.87% | 1.65% | 1.94% | 2.10% | 2.03% | 2.17% |
| 2.62% | 2.40% | 2.69% | 2.85% |
| Ratios of net investment income (loss) to |
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| average net assets: |
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| Before fee waivers ^ | 0.87% | 0.79% | 0.28% | 0.36% | 0.65% | 0.46% | 0.12% | 0.04% |
| (0.47)% | (0.39)% | (0.10)% | (0.29)% |
| After fee waivers ^ | 0.87% | 0.79% | 0.28% | 0.36% | 0.68% | 0.46% | 0.12% | 0.04% |
| (0.47)% | (0.39)% | (0.07)% | (0.29)% |
| Portfolio turnover rate | 4% (1) | 30% | 30% | 23% | 47% | 21% | 4% (1) | 30% |
| 30% | 23% | 47% | 21% |
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*The net investment income (loss) per share data was determined using the average shares outstanding throughout each period. |
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^ Annualized for periods less than one year. |
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+Assumes reinvestment of all dividends and distributions, if any. Aggregate (not annualized) total return is shown for any period shorter than one year. Total return does not reflect the deductions of taxes that a shareholder would pay on distributions or on the redemption of shares. | ||||||||||||||
(1) | Not annualized. |
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(a) Represents less than $0.01 per share. |
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See accompanying notes to financial statements.
FINANCIAL HIGHLIGHTS |
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Dunham Alternative Income Fund * |
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The table sets forth financial data for one share of beneficial interest outstanding throughout each period. | ||||||||
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| Class N | Class A | Class C | |||
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| Six Months | Period Ended | Six Months | Period Ended | Six Months | Period Ended |
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| Ended | October 31, | Ended | October 31, | Ended | October 31, |
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| April 30, 2013 | 2012 | April 30, 2013 | 2012 | April 30, 2013 | 2012 |
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| (Unaudited) |
| (Unaudited) |
| (Unaudited) |
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Net asset value, beginning of period |
| $ 9.73 | $ 10.00 | $ 9.73 | $ 10.00 | $ 9.72 | $ 10.00 | |
Loss from investment operations: |
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| |
| Net investment income (loss)** |
| 0.10 | (0.07) | 0.08 | (0.08) | 0.04 | (0.11) |
| Net realized and unrealized gain (loss) |
| 0.85 | (0.20) | 0.87 | (0.19) | 0.86 | (0.17) |
| Total income (loss) from investment operations |
| 0.95 | (0.27) | 0.95 | (0.27) | 0.90 | (0.28) |
Less distributions: |
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| |
| Distributions from net investment income |
| (0.03) | 0.00 | (0.03) | 0.00 | (0.00) (1) | 0.00 |
Net asset value, end of period |
| $ 10.65 | $ 9.73 | $ 10.65 | $ 9.73 | $ 10.62 | $ 9.72 | |
|
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|
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|
|
Total return + |
| 9.82% | (2.70)% | 9.72% | (2.70)% | 9.29% | (2.80)% | |
Ratios/Supplemental Data: |
|
|
|
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|
| |
| Net assets, end of period (in 000s) |
| $ 673 | $ 341 | $ 1,668 | $ 1,106 | $ 934 | $ 525 |
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|
|
| Ratios of expenses to average net assets: ^ |
| 2.81% | 9.47% | 3.06% | 9.72% | 3.81% | 10.47% |
| Ratios of net investment loss to average net assets: ^ | 1.93% | (6.42)% | 1.68% | (6.67)% | 0.93% | (7.42)% | |
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| Portfolio turnover rate |
| 41% (2) | 7% (2) | 41% (2) | 7% (2) | 41% (2) | 7% (2) |
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* The Fund commenced operations on September 14, 2012. |
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| ||
**The net investment loss per share data was determined using the average shares outstanding throughout each period. | ||||||||
^ Annualized for periods less than one year. |
|
| ||||||
+Assumes reinvestment of all dividends and distributions, if any. Aggregate (not annualized) total return is shown for any period shorter than one year. | ||||||||
Total return does not reflect the deductions of taxes that a shareholder would pay on distributions or on the redemption of shares. | ||||||||
(1) | Represents less than $0.01 per share. | |||||||
(2) | Not annualized. |
See accompanying notes to financial statements.
FINANCIAL HIGHLIGHTS |
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| |
Dunham Large Cap Growth Fund |
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The table sets forth financial data for one share of beneficial interest outstanding throughout each period. |
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| Class N |
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| Six Months |
| Year Ended |
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| Ended |
| October 31, |
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| April 30, 2013 |
| 2012 |
| 2011 |
| 2010 |
| 2009 |
| 2008 |
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| (Unaudited) |
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Net asset value, beginning of period | $ 4.15 |
| $ 3.67 |
| $ 3.50 |
| $ 3.12 |
| $ 3.16 |
| $ 5.54 |
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|
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| |
Income (loss) from investment operations: |
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|
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|
|
|
|
|
|
|
|
|
|
| |
| Net investment income (loss)** | 0.00 | (a) | 0.01 |
| 0.01 |
| 0.01 |
| 0.01 |
| (0.03) |
|
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|
|
|
|
|
|
| Net realized and unrealized gain (loss) | 0.54 |
| 0.48 |
| 0.16 |
| 0.37 |
| (0.05) |
| (2.10) |
|
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|
|
|
|
|
|
| Total income (loss) from investment operations | 0.54 |
| 0.49 |
| 0.17 |
| 0.38 |
| (0.04) |
| (2.13) |
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Less distributions: |
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|
|
|
|
|
|
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|
|
|
|
|
|
|
| |
| Distributions from net investment income | (0.01) |
| (0.01) |
| 0.00 | (a) | 0.00 | (a) | 0.00 |
| 0.00 | (a) |
|
|
|
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|
| |
| Distributions from net realized gains | 0.00 |
| 0.00 |
| 0.00 |
| 0.00 |
| 0.00 |
| (0.25) |
|
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|
|
|
|
|
| Total distributions | (0.01) |
| (0.01) |
| 0.00 |
| 0.00 |
| 0.00 |
| (0.25) |
|
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|
Net asset value, end of period | $ 4.68 |
| $ 4.15 |
| $ 3.67 |
| $ 3.50 |
| $ 3.12 |
| $ 3.16 |
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| |
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Total return + | 13.01% |
| 13.45% |
| 4.91% |
| 12.29% |
| (1.27)% |
| (40.18)% |
|
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|
|
|
|
|
| |
Ratios/Supplemental Data: |
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| |
| Net assets, end of period (in 000s) | $ 28,652 |
| $ 29,678 |
| $29,252 |
| $ 31,774 |
| $ 33,199 |
| $ 44,811 |
|
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|
|
|
|
|
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 1.65% |
| 1.51% |
| 1.20% |
| 1.26% |
| 1.04% |
| 1.77% |
|
|
|
|
|
|
|
|
| After fee waivers ^ | 1.65% |
| 1.51% |
| 1.20% |
| 1.26% |
| 1.01% |
| 1.77% |
|
|
|
|
|
|
|
|
| Ratios of net investment income (loss) to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
| average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 0.17% |
| 0.30% |
| 0.39% |
| 0.18% |
| 0.18% |
| (0.60)% |
|
|
|
|
|
|
|
|
| After fee waivers ^ | 0.17% |
| 0.30% |
| 0.39% |
| 0.18% |
| 0.21% |
| (0.60)% |
|
|
|
|
|
|
|
|
| Portfolio turnover rate | 15% (1) |
| 57% |
| 81% |
| 291% |
| 258% |
| 328% |
|
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|
| Class A | Class C | |||||||||||||||||
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| Six Months |
| Year Ended |
| Six Months | Year Ended |
| ||||||||||||
|
| Ended |
| October 31, |
| Ended | October 31, |
| ||||||||||||
|
| April 30, 2013 |
| 2012 |
| 2011 |
| 2010 |
| 2009 |
| 2008 |
| April 30, 2013 | 2012 | 2011 | 2010 | 2009 | 2008 |
|
|
| (Unaudited) |
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| (Unaudited) |
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|
Net asset value, beginning of period | $ 4.11 |
| $ 3.63 |
| $ 3.47 |
| $ 3.09 |
| $ 3.14 |
| $ 5.54 |
| $ 3.85 | $ 3.42 | $ 3.30 | $ 2.96 | $ 3.04 | $ 5.38 |
| |
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Net investment income (loss)** | 0.00 | (a) | (0.01) |
| 0.00 | (a) | 0.00 | (a) | 0.00 | (a) | (0.04) |
| (0.02) | (0.03) | (0.02) | (0.03) | (0.02) | (0.07) |
|
| Net realized and unrealized gain (loss) | 0.52 |
| 0.49 |
| 0.16 |
| 0.38 |
| (0.05) |
| (2.11) |
| 0.49 | 0.46 | 0.14 | 0.37 | (0.06) | (2.02) |
|
| Total income (loss) from investment operations | 0.52 |
| 0.48 |
| 0.16 |
| 0.38 |
| (0.05) |
| (2.15) |
| 0.47 | 0.43 | 0.12 | 0.34 | (0.08) | (2.09) |
|
Less distributions: |
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Distributions from net investment income | (0.01) |
| 0.00 | (a) | 0.00 |
| 0.00 |
| 0.00 |
| 0.00 | (a) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (a) |
| Distributions from net realized gains | 0.00 |
| 0.00 |
| 0.00 |
| 0.00 |
| 0.00 |
| (0.25) |
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (0.25) |
|
| Total distributions | (0.01) |
| 0.00 |
| 0.00 |
| 0.00 |
| 0.00 |
| (0.25) |
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (0.25) |
|
Net asset value, end of period | $ 4.62 |
| $ 4.11 |
| $ 3.63 |
| $ 3.47 |
| $ 3.09 |
| $ 3.14 |
| $ 4.32 | $ 3.85 | $ 3.42 | $ 3.30 | $ 2.96 | $ 3.04 |
| |
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|
Total return + | 12.55% |
| 13.32% |
| 4.61% |
| 12.30% |
| (1.59)% |
| (40.55)% |
| 12.21% | 12.57% | 3.64% | 11.49% | (2.63)% | (40.65)% |
| |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 2,198 |
| $ 1,244 |
| $ 245 |
| $ 195 |
| $ 53 |
| $ 31 |
| $ 3,688 | $ 3,697 | $ 4,631 | $ 4,845 | $ 5,106 | $ 5,923 |
|
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 1.90% |
| 1.76% |
| 1.45% |
| 1.51% |
| 1.29% |
| 2.02% |
| 2.65% | 2.51% | 2.20% | 2.26% | 2.04% | 2.77% |
|
| After fee waivers ^ | 1.90% |
| 1.76% |
| 1.45% |
| 1.51% |
| 1.26% |
| 2.02% |
| 2.65% | 2.51% | 2.20% | 2.26% | 2.01% | 2.77% |
|
| Ratios of net investment income (loss) to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | (0.08)% |
| 0.05% |
| 0.14% |
| (0.07)% |
| (0.07)% |
| (0.85)% |
| (0.83)% | (0.70)% | (0.61)% | (0.82)% | (0.82)% | (1.60)% |
|
| After fee waivers ^ | (0.08)% |
| 0.05% |
| 0.14% |
| (0.07)% |
| (0.04)% |
| (0.85)% |
| (0.83)% | (0.70)% | (0.61)% | (0.82)% | (0.79)% | (1.60)% |
|
| Portfolio turnover rate | 15% (1) |
| 57% |
| 81% |
| 291% |
| 258% |
| 328% |
| 15% (1) | 57% | 81% | 291% | 258% | 328% |
|
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|
|
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|
|
**The net investment income (loss) per share data was determined using the average shares outstanding throughout each period. |
|
|
| |||||||||||||||||
+Assumes reinvestment of all dividends and distributions, if any. Aggregate (not annualized) total return is shown for any period shorter than one year. Total return does not reflect the deductions of taxes that a shareholder would pay on distributions or on the redemption of shares. | ||||||||||||||||||||
^ Annualized for periods less than one year. |
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| |||||||||||
(a) Represents less than $0.01 per share. |
|
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| |||||||||
(1) | Not annualized. |
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|
|
See accompanying notes to financial statements.
FINANCIAL HIGHLIGHTS |
|
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|
|
| |
Dunham Focused Large Cap Growth Fund | ||||||
The table sets forth financial data for one share of beneficial interest outstanding throughout each period. | ||||||
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| Class N |
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| ||
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| Six Months | Period Ended |
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|
| Ended | October 31, |
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| April 30, 2013 | 2012 * |
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|
|
| (Unaudited) |
|
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|
|
|
|
|
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|
|
|
Net asset value, beginning of period | $ 10.42 | $ 10.00 |
|
|
| |
Income (loss) from investment operations: |
|
|
|
|
| |
| Net investment (loss)** | (0.02) | (0.16) |
|
|
|
| Net realized and unrealized gain | 1.07 | 0.58 |
|
|
|
| Total income from investment operations | 1.05 | 0.42 |
|
|
|
Net asset value, end of period | $ 11.47 | $ 10.42 |
|
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| |
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|
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|
|
Total return + | 10.08% | 4.20% |
|
|
| |
Ratios/Supplemental Data: |
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 510 | $ 450 |
|
|
|
| Ratios of expenses to average net assets: |
|
|
|
|
|
| Before fee waivers ^ | 1.42% | 2.11% |
|
|
|
| After fee waivers ^ | 1.38% | 1.80% |
|
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|
| Ratios of net investment income (loss) to |
|
|
|
|
|
| average net assets: |
|
|
|
|
|
| Before fee waivers ^ | (0.46)% | (1.06)% |
|
|
|
| After fee waivers ^ | (0.41)% | (0.75)% |
|
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|
| Portfolio turnover rate | 54% (1) | 27% (1) |
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| Class A | Class C | |||
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|
| Six Months | Period Ended |
| Six Months | Period Ended |
|
| Ended | October 31, |
| Ended | October 31, |
|
| April 30, 2013 | 2012 * |
| April 30, 2013 | 2012 * |
|
| (Unaudited) |
|
| (Unaudited) |
|
|
|
|
|
|
|
|
Net asset value, beginning of period | $ 10.39 | $ 10.00 |
| $ 10.33 | $ 10.00 | |
Income (loss) from investment operations: |
|
|
|
|
| |
| Net investment (loss)** | (0.04) | (0.09) |
| (0.08) | (0.30) |
| Net realized and unrealized gain | 1.09 | 0.48 |
| 1.07 | 0.63 |
| Total income from investment operations | 1.05 | 0.39 |
| 0.99 | 0.33 |
Net asset value, end of period | $ 11.44 | $ 10.39 |
| $ 11.32 | $ 10.33 | |
|
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|
|
Total return + | 10.11% | 3.90% |
| 9.58% | 3.30% | |
Ratios/Supplemental Data: |
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 9,597 | $ 10,344 |
| $ 162 | $ 146 |
| Ratios of expenses to average net assets: |
|
|
|
|
|
| Before fee waivers ^ | 1.67% | 2.36% |
| 2.42% | 3.11% |
| After fee waivers ^ | 1.63% | 2.05% |
| 2.38% | 2.80% |
| Ratios of net investment income (loss) to |
|
|
|
|
|
| average net assets: |
|
|
|
|
|
| Before fee waivers ^ | (0.71)% | (1.31)% |
| (1.46)% | (2.06)% |
| After fee waivers ^ | (0.66)% | (1.00)% |
| (1.41)% | (1.75)% |
| Portfolio turnover rate | 54% (1) | 27% (1) |
| 54% (1) | 27% (1) |
|
|
|
|
|
|
|
* The Fund commenced opperations on December 8, 2011 | ||||||
**The net investment income (loss) per share data was determined using the average shares outstanding throughout each period. | ||||||
^ Annualized for periods less then a year |
|
|
|
|
| |
+Assumes reinvestment of all dividends and distributions, if any. Aggregate (not annualized) total return is shown for any period shorter than one year. Total return does not reflect the deductions of taxes that a shareholder would pay on distributions or on the redemption of shares. | ||||||
(a) Represents less than $0.01 per share. |
|
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| |||
(1) | Not annualized. |
|
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|
|
|
See accompanying notes to financial statements.
FINANCIAL HIGHLIGHTS |
|
|
|
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|
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|
|
|
| |
Dunham Real Estate Stock Fund |
|
|
|
|
|
| |||||||
The table sets forth financial data for one share of beneficial interest outstanding throughout each period. | |||||||||||||
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| Class N |
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| |||||
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|
|
| Six Months | Year Ended |
|
|
|
|
|
| ||||
|
| Ended | October 31, |
|
|
|
|
|
| ||||
|
| April 30, 2013 | 2012 | 2011 | 2010 | 2009 | 2008 |
|
|
|
|
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period | $ 15.79 | $ 13.80 | $ 12.84 | $ 9.27 | $ 9.14 | $ 16.77 |
|
|
|
|
|
| |
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net investment income** | 0.22 | 0.21 | 0.14 | 0.14 | 0.08 | 0.21 |
|
|
|
|
|
|
| Net realized and unrealized gain (loss) | 2.46 | 1.90 | 0.98 | 3.54 | 0.23 | (6.68) |
|
|
|
|
|
|
| Total income (loss) from investment operations | 2.68 | 2.11 | 1.12 | 3.68 | 0.31 | (6.47) |
|
|
|
|
|
|
Less distributions: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Distributions from net investment income | (0.23) | (0.12) | (0.16) | (0.11) | (0.18) | (0.19) |
|
|
|
|
|
|
| Distributions from net realized gains | (0.53) | 0.00 | 0.00 | 0.00 | 0.00 | (0.97) |
|
|
|
|
|
|
| Total distributions | (0.76) | (0.12) | (0.16) | (0.11) | (0.18) | (1.16) |
|
|
|
|
|
|
Net asset value, end of period | $ 17.71 | $ 15.79 | $ 13.80 | $ 12.84 | $ 9.27 | $ 9.14 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total return + | 17.69% | 15.46% | 8.82% | 39.91% | 3.89% | (40.64)% |
|
|
|
|
|
| |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 23,663 | $ 20,424 | $ 12,507 | $ 7,686 | $ 5,542 | $ 5,786 |
|
|
|
|
|
|
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 1.30% | 1.46% | 1.51% | 2.26% | 3.05% | 1.85% |
|
|
|
|
|
|
| After fee waivers ^ | 1.30% | 1.46% | 1.51% | 2.26% | 3.02% | 1.81% |
|
|
|
|
|
|
| Ratios of net investment income to |
|
|
|
|
|
|
|
|
|
|
|
|
| average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 2.72% | 1.42% | 1.09% | 1.22% | 1.05% | 1.61% |
|
|
|
|
|
|
| After fee waivers ^ | 2.72% | 1.42% | 1.09% | 1.22% | 1.08% | 1.65% |
|
|
|
|
|
|
| Portfolio turnover rate | 61% (1) | 123% | 59% | 157% | 221% | 99% |
|
|
|
|
|
|
|
|
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|
|
|
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|
|
|
|
|
|
| Class A | Class C | ||||||||||
|
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|
|
|
|
|
| Six Months | Year Ended | Six Months | Year Ended | ||||||||
|
| Ended | October 31, | Ended | October 31, | ||||||||
|
| April 30, 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | April 30, 2013 | 2012 | 2011 | 2010 | 2009 | 2008 |
|
| (Unaudited) |
|
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period | $ 15.77 | $ 13.80 | $ 12.85 | $ 9.27 | $ 9.13 | $ 16.75 | $ 15.33 | $ 13.40 | $ 12.49 | $ 9.01 | $ 8.82 | $ 16.20 | |
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net investment income** | 0.23 | 0.21 | 0.13 | 0.10 | 0.06 | 0.20 | 0.13 | 0.07 | 0.01 | 0.02 | 0.01 | 0.10 |
| Net realized and unrealized gain (loss) | 2.44 | 1.87 | 0.95 | 3.56 | 0.22 | (6.69) | 2.40 | 1.86 | 0.94 | 3.46 | 0.22 | (6.47) |
| Total income (loss) from investment operations | 2.67 | 2.08 | 1.08 | 3.66 | 0.28 | (6.49) | 2.53 | 1.93 | 0.95 | 3.48 | 0.23 | (6.37) |
Less distributions: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Distributions from net investment income | (0.15) | (0.11) | (0.13) | (0.08) | (0.14) | (0.16) | (0.08) | 0.00 | (0.04) | 0.00 | (0.04) | (0.04) |
| Distributions from net realized gains | (0.53) | 0.00 | 0.00 | 0.00 | 0.00 | (0.97) | (0.53) | 0.00 | 0.00 | 0.00 | 0.00 | (0.97) |
| Total distributions | (0.68) | (0.11) | (0.13) | (0.08) | (0.14) | (1.13) | (0.61) | 0.00 | (0.04) | 0.00 | (0.04) | (1.01) |
Net asset value, end of period | $ 17.76 | $ 15.77 | $ 13.80 | $ 12.85 | $ 9.27 | $ 9.13 | $ 17.25 | $ 15.33 | $ 13.40 | $ 12.49 | $ 9.01 | $ 8.82 | |
|
|
|
|
|
|
|
|
|
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|
|
Total return + | 17.61% | 15.20% | 8.48% | 39.66% | 3.64% | (40.86)% | 17.07% | 14.40% | 7.65% | 38.62% | 2.76% | (41.23)% | |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 6,935 | $ 709 | $ 6,962 | $ 47 | $ 20 | $ 83 | $ 2,677 | $ 2,370 | $ 1,944 | $ 1,310 | $ 943 | $ 1,276 |
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 1.55% | 1.71% | 1.76% | 2.51% | 3.30% | 2.10% | 2.30% | 2.46% | 2.51% | 3.26% | 4.05% | 2.85% |
| After fee waivers ^ | 1.55% | 1.71% | 1.76% | 2.51% | 3.27% | 2.06% | 2.30% | 2.46% | 2.51% | 3.26% | 4.02% | 2.81% |
| Ratios of net investment income to |
|
|
|
|
|
|
|
|
|
|
|
|
| average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 2.47% | 1.17% | 0.81% | 0.97% | 0.80% | 1.36% | 1.72% | 0.42% | 0.07% | 0.22% | 0.05% | 0.61% |
| After fee waivers ^ | 2.47% | 1.17% | 0.81% | 0.97% | 0.83% | 1.40% | 1.72% | 0.42% | 0.07% | 0.22% | 0.08% | 0.65% |
| Portfolio turnover rate | 61% (1) | 123% | 59% | 157% | 221% | 99% | 61% (1) | 123% | 59% | 157% | 221% | 99% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
**The net investment income (loss) per share data was determined using the average shares outstanding throughout each period. |
|
| |||||||||||
+Assumes reinvestment of all dividends and distributions, if any. Aggregate (not annualized) total return is shown for any period shorter than one year. Total return does not reflect the deductions of taxes that a shareholder would pay on distributions or on the redemption of shares. | |||||||||||||
^ Annualized for periods less than one year. |
|
| |||||||||||
(1) | Not annualized. |
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|
|
|
|
See accompanying notes to financial statements.
FINANCIAL HIGHLIGHTS |
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|
|
|
|
| |
Dunham International Stock Fund |
|
|
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|
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|
| |||||
The table sets forth financial data for one share of beneficial interest outstanding throughout each period. | |||||||||||||
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| Class N |
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| |||||
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|
| Six Months | Year Ended |
|
|
|
|
|
| ||||
|
| Ended | October 31, |
|
|
|
|
|
| ||||
|
| April 30, 2013 | 2012 | 2011 | 2010 | 2009 | 2008 |
|
|
|
|
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period | $ 12.05 | $ 11.85 | $ 12.79 | $ 11.12 | $ 8.09 | $ 16.40 |
|
|
|
|
|
| |
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net investment income* | 0.01 | 0.14 | 0.15 | 0.08 | 0.05 | 0.18 |
|
|
|
|
|
|
| Net realized and unrealized gain (loss) | 2.02 | 0.22 | (0.98) | 1.80 | 3.09 | (7.71) |
|
|
|
|
|
|
| Total income (loss) from investment operations | 2.03 | 0.36 | (0.83) | 1.88 | 3.14 | (7.53) |
|
|
|
|
|
|
Less distributions: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Distributions from net investment income | (0.14) | (0.16) | (0.11) | (0.21) | (0.11) | (0.10) |
|
|
|
|
|
|
| Distributions from net realized gains | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (0.68) |
|
|
|
|
|
|
| Total distributions | (0.14) | (0.16) | (0.11) | (0.21) | (0.11) | (0.78) |
|
|
|
|
|
|
Net asset value, end of period | $ 13.94 | $ 12.05 | $ 11.85 | $ 12.79 | $ 11.12 | $ 8.09 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total return +# | 17.00% | 3.16% | (6.56)% | 17.15% | 39.44% | (47.93)% |
|
|
|
|
|
| |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 46,768 | $ 44,947 | $ 39,163 | $ 36,546 | $ 31,858 | $ 31,369 |
|
|
|
|
|
|
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 2.06% | 1.97% | 2.28% | 2.53% | 2.63% | 1.80% |
|
|
|
|
|
|
| After fee waivers ^ | 2.06% | 1.97% | 2.28% | 2.53% | 2.60% | 1.80% |
|
|
|
|
|
|
| Ratios of net investment income to |
|
|
|
|
|
|
|
|
|
|
|
|
| average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 0.12% | 1.24% | 1.19% | 0.67% | 0.55% | 1.45% |
|
|
|
|
|
|
| After fee waivers ^ | 0.12% | 1.24% | 1.19% | 0.67% | 0.58% | 1.45% |
|
|
|
|
|
|
| Portfolio turnover rate | 91% (1) | 142% | 110% | 118% | 173% | 149% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class A | Class C | ||||||||||
|
|
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|
|
|
|
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|
|
|
|
|
| Six Months | Year Ended | Six Months | Year Ended | ||||||||
|
| Ended | October 31, | Ended | October 31, | ||||||||
|
| April 30, 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | April 30, 2013 | 2012 | 2011 | 2010 | 2009 | 2008 |
|
| (Unaudited) |
|
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period | $ 12.03 | $ 11.84 | $ 12.79 | $ 11.13 | $ 8.05 | $ 16.36 | $ 11.64 | $ 11.44 | $ 12.37 | $ 10.78 | $ 7.81 | $ 15.90 | |
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net investment income (loss)* | 0.01 | 0.10 | 0.18 | 0.04 | 0.03 | 0.13 | (0.05) | 0.03 | 0.02 | (0.04) | (0.04) | 0.05 |
| Net realized and unrealized gain (loss) | 2.01 | 0.22 | (1.04) | 1.82 | 3.10 | (7.67) | 1.95 | 0.21 | (0.95) | 1.75 | 3.01 | (7.46) |
| Total income (loss) from investment operations | 2.02 | 0.32 | (0.86) | 1.86 | 3.13 | (7.54) | 1.90 | 0.24 | (0.93) | 1.71 | 2.97 | (7.41) |
Less distributions: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Distributions from net investment income | (0.12) | (0.13) | (0.09) | (0.20) | (0.05) | (0.09) | (0.01) | (0.04) | 0.00 | (0.12) | 0.00 | 0.00 |
| Distributions from net realized gains | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (0.68) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (0.68) |
| Total distributions | (0.12) | (0.13) | (0.09) | (0.20) | (0.05) | (0.77) | (0.01) | (0.04) | 0.00 | (0.12) | 0.00 | (0.68) |
Net asset value, end of period | $ 13.93 | $ 12.03 | $ 11.84 | $ 12.79 | $ 11.13 | $ 8.05 | $ 13.53 | $ 11.64 | $ 11.44 | $ 12.37 | $ 10.78 | $ 7.81 | |
|
|
|
|
|
|
|
|
|
|
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|
|
Total return + | 16.84% | 2.80% | (6.78)% | 16.85% | 39.17% | (48.04)% | 16.34% | 2.10% | (7.52)% | 16.00% | 38.03% | (48.43)% | |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 3,303 | $ 1,580 | $ 1,309 | $ 322 | $ 57 | $ 39 | $ 6,019 | $ 5,881 | $ 6,849 | $ 7,036 | $ 5,766 | $ 4,975 |
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 2.31% | 2.22% | 2.53% | 2.78% | 2.88% | 2.05% | 3.06% | 2.97% | 3.28% | 3.53% | 3.63% | 2.80% |
| After fee waivers ^ | 2.31% | 2.22% | 2.53% | 2.78% | 2.85% | 2.05% | 3.06% | 2.97% | 3.28% | 3.53% | 3.60% | 2.80% |
| Ratios of net investment income (loss) to |
|
|
|
|
|
|
|
|
|
|
|
|
| average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | (0.13)% | 0.99% | 0.94% | 0.42% | 0.30% | 1.20% | (0.88)% | 0.24% | 0.19% | (0.33)% | (0.45)% | 0.45% |
| After fee waivers ^ | (0.13)% | 0.99% | 0.94% | 0.42% | 0.33% | 1.20% | (0.88)% | 0.24% | 0.19% | (0.33)% | (0.42)% | 0.45% |
| Portfolio turnover rate | 91% (1) | 142% | 110% | 118% | 173% | 149% | 91% (1) | 142% | 110% | 118% | 173% | 149% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* The net investment income (loss) per share data was determined using the average shares outstanding throughout each period. |
|
| |||||||||||
^ Annualized for periods less than one year. |
|
|
|
|
|
|
| ||||||
+ Assumes reinvestment of all dividends and distributions, if any. Aggregate (not annualized) total return is shown for any period shorter than one year. Total return does not reflect the deductions of taxes that a shareholder would pay on distributions or on the redemption of shares. | |||||||||||||
(1) | Not annualized. |
|
|
|
|
|
|
|
|
|
|
|
|
# Includes adjustments in accordance with accounting principles generally accepted in the United States and, consequently, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
See accompanying notes to financial statements.
FINANCIAL HIGHLIGHTS |
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|
| |
Dunham Small Cap Value Fund |
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|
| |
The table sets forth financial data for one share of beneficial interest outstanding throughout each period. | |||||||||||||||
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| Class N |
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| |||||||
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|
| Six Months | Year Ended |
|
|
|
|
|
| ||||||
|
| Ended | October 31, |
|
|
|
|
|
| ||||||
|
| April 30, 2013 | 2012 |
| 2011 | 2010 |
| 2009 | 2008 |
|
|
|
|
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of period | $ 11.21 | $ 10.44 |
| $ 9.78 | $ 7.94 |
| $ 7.64 | $ 12.27 |
|
|
|
|
|
| |
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Net investment income * | 0.07 | 0.00 | (a) | 0.02 | 0.03 |
| 0.08 | 0.08 |
|
|
|
|
|
|
| Net realized and unrealized gain (loss) | 1.68 | 0.77 |
| 0.66 | 1.90 |
| 0.32 | (4.38) |
|
|
|
|
|
|
| Total income (loss) from investment operations | 1.75 | 0.77 |
| 0.68 | 1.93 |
| 0.40 | (4.30) |
|
|
|
|
|
|
Less distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Distributions from net investment income | (0.03) | 0.00 |
| (0.02) | (0.09) |
| (0.10) | 0.00 |
|
|
|
|
|
|
| Distributions from net realized gains | 0.00 | 0.00 |
| 0.00 | 0.00 |
| 0.00 | (0.33) |
|
|
|
|
|
|
| Total distributions | (0.03) | 0.00 |
| (0.02) | (0.09) |
| (0.10) | (0.33) |
|
|
|
|
|
|
Net asset value, end of period | $ 12.93 | $ 11.21 |
| $ 10.44 | $ 9.78 |
| $ 7.94 | $ 7.64 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total return + | 15.67% | 7.38% |
| 6.94% | 24.39% |
| 5.54% | (35.85)% |
|
|
|
|
|
| |
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Net assets, end of period (in 000s) | $ 14,376 | $ 15,764 |
| $ 14,739 | $ 14,378 |
| $ 13,288 | $ 17,630 |
|
|
|
|
|
|
| Ratios of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 1.25% | 2.02% |
| 2.10% | 2.08% |
| 1.48% | 1.89% |
|
|
|
|
|
|
| After fee waivers ^ | 1.25% | 2.02% |
| 2.10% | 2.08% |
| 1.45% | 1.89% |
|
|
|
|
|
|
| Ratios of net investment income to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Before fee waivers ^ | 1.15% | 0.04% |
| 0.06% | 0.37% |
| 1.19% | 0.84% |
|
|
|
|
|
|
| After fee waivers ^ | 1.15% | 0.04% |
| 0.06% | 0.37% |
| 1.22% | 0.84% |
|
|
|
|
|
|
| Portfolio turnover rate | 18% (1) | 62% |
| 50% | 41% |
| 40% | 52% |
|
|
|
|
|
|
|
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|
|
|
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|
|
| Class A | Class C | ||||||||||||
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|
|
| Six Months | Year Ended | Six Months | Year Ended | ||||||||||
|
| Ended | October 31, | Ended | October 31, | ||||||||||
|
| April 30, 2013 | 2012 |
| 2011 | 2010 |
| 2009 | 2008 | April 30, 2013 | 2012 | 2011 | 2010 | 2009 | 2008 |
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| (Unaudited) |
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| (Unaudited) |
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Net asset value, beginning of period | $ 11.16 | $ 10.40 |
| $ 9.75 | $ 7.92 |
| $ 7.61 | $ 12.25 | $ 10.59 | $ 9.96 | $ 9.40 | $ 7.65 | $ 7.32 | $ 11.88 | |
Income (loss) from investment operations: |
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| |
| Net investment income (loss)* | 0.05 | 0.00 | (a) | (0.01) | 0.00 | (a) | 0.07 | 0.05 | 0.01 | (0.10) | (0.09) | (0.06) | 0.01 | (0.03) |
| Net realized and unrealized gain (loss) | 1.68 | 0.76 |
| 0.66 | 1.89 |
| 0.32 | (4.36) | 1.58 | 0.73 | 0.65 | 1.82 | 0.32 | (4.20) |
| Total income (loss) from investment operations | 1.73 | 0.76 |
| 0.65 | 1.89 |
| 0.39 | (4.31) | 1.59 | 0.63 | 0.56 | 1.76 | 0.33 | (4.23) |
Less distributions: |
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| |
| Distributions from net investment income | 0.00 | 0.00 |
| 0.00 | (0.06) |
| (0.08) | 0.00 | 0.00 | 0.00 | 0.00 | (0.01) | 0.00 | 0.00 |
| Distributions from net realized gains | 0.00 | 0.00 |
| 0.00 | 0.00 |
| 0.00 | (0.33) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (0.33) |
| Total distributions | 0.00 | 0.00 |
| 0.00 | (0.06) |
| (0.08) | (0.33) | 0.00 | 0.00 | 0.00 | (0.01) | 0.00 | (0.33) |
Net asset value, end of period | $ 12.89 | $ 11.16 |
| $ 10.40 | $ 9.75 |
| $ 7.92 | $ 7.61 | $ 12.18 | $ 10.59 | $ 9.96 | $ 9.40 | $ 7.65 | $ 7.32 | |
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Total return + | 15.50% | 7.31% |
| 6.67% | 24.01% |
| 5.35% | (35.99)% | 15.01% | 6.33% | 5.96% | 23.02% | 4.51% | (36.45)% | |
Ratios/Supplemental Data: |
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| Net assets, end of period (in 000s) | $ 1,057 | $ 567 |
| $ 193 | $ 154 |
| $ 19 | $ 30 | $ 2,024 | $ 2,099 | $ 2,574 | $ 2,341 | $ 2,012 | $ 2,289 |
| Ratios of expenses to average net assets: |
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| Before fee waivers ^ | 1.50% | 2.27% |
| 2.35% | 2.33% |
| 1.73% | 2.14% | 2.25% | 3.02% | 3.10% | 3.08% | 2.48% | 2.89% |
| After fee waivers ^ | 1.50% | 2.27% |
| 2.35% | 2.33% |
| 1.70% | 2.14% | 2.25% | 3.02% | 3.10% | 3.08% | 2.45% | 2.89% |
| Ratios of net investment income (loss) to |
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| average net assets: |
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| Before fee waivers ^ | 0.90% | (0.21)% |
| (0.22)% | 0.12% |
| 0.94% | 0.59% | 0.25% | (0.96)% | (0.95)% | (0.63)% | 0.19% | (0.16)% |
| After fee waivers ^ | 0.90% | (0.21)% |
| (0.22)% | 0.12% |
| 0.97% | 0.59% | 0.25% | (0.96)% | (0.95)% | (0.63)% | 0.22% | (0.16)% |
| Portfolio turnover rate | 18% (1) | 62% |
| 50% | 41% |
| 40% | 52% | 18% (1) | 62% | 50% | 41% | 40% | 52% |
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* The net investment income (loss) per share data was determined using the average shares outstanding throughout each period. |
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^ Annualized for periods less than one year. |
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+Assumes reinvestment of all dividends and distributions, if any. Aggregate (not annualized) total return is shown for any period shorter than one year. Total return does not reflect the deductions of taxes that a shareholder would pay on distributions or on the redemption of shares. | |||||||||||||||
(a) Represents less than $0.01 per share. |
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(1) | Not annualized. |
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See accompanying notes to financial statements.
FINANCIAL HIGHLIGHTS |
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Dunham Small Cap Growth Fund |
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The table sets forth financial data for one share of beneficial interest outstanding throughout each period. | |||||||||||||
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| Class N |
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| Six Months | Year Ended |
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| Ended | October 31, |
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| April 30, 2013 | 2012 | 2011 | 2010 | 2009 | 2008 |
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| (Unaudited) |
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Net asset value, beginning of period | $ 15.69 | $ 14.75 | $ 13.67 | $ 11.02 | $ 9.34 | $ 16.50 |
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Income (loss) from investment operations: |
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| Net investment loss** | (0.08) | (0.17) | (0.18) | (0.24) | (0.17) | (0.20) |
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| Net realized and unrealized gain (loss) | 1.82 | 1.11 | 1.26 | 2.89 | 1.85 | (5.48) |
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| Total income (loss) from investment operations | 1.74 | 0.94 | 1.08 | 2.65 | 1.68 | (5.68) |
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Less distributions: |
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| Distributions from net realized gains | (0.98) | 0.00 | 0.00 | 0.00 | 0.00 | (1.48) |
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| Total distributions | (0.98) | 0.00 | 0.00 | 0.00 | 0.00 | (1.48) |
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Net asset value, end of period | $ 16.45 | $ 15.69 | $ 14.75 | $ 13.67 | $ 11.02 | $ 9.34 |
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Total return + | 11.91% | 6.37% | 7.90% | 24.05% | 17.99% | (37.74)% |
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Ratios/Supplemental Data: |
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| Net assets, end of period (in 000s) | $ 15,054 | $ 14,627 | $ 14,975 | $ 14,301 | $ 14,217 | $ 18,649 |
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| Ratios of expenses to average net assets: |
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| Before fee waivers | 1.32% | 1.34% | 1.45% | 2.22% | 2.35% | 2.03% |
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| After fee waivers | 1.32% | 1.34% | 1.45% | 2.22% | 2.32% | 2.03% |
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| Ratios of net investment loss to |
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| average net assets: |
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| Before fee waivers | (1.00)% | (1.12)% | (1.15)% | (1.88)% | (1.82)% | (1.51)% |
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| After fee waivers | (1.00)% | (1.12)% | (1.15)% | (1.88)% | (1.79)% | (1.51)% |
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| Portfolio turnover rate | 111% (1) | 211% | 235% | 194% | 214% | 250% |
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| Class A | Class C | ||||||||||
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| Six Months | Year Ended | Six Months | Year Ended | ||||||||
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| Ended | October 31, | Ended | October 31, | ||||||||
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| April 30, 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | April 30, 2013 | 2012 | 2011 | 2010 | 2009 | 2008 |
|
| (Unaudited) |
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| (Unaudited) |
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Net asset value, beginning of period | $ 15.49 | $ 14.59 | $ 13.56 | $ 10.96 | $ 9.31 | $ 16.49 | $ 14.43 | $ 13.69 | $ 12.82 | $ 10.44 | $ 8.94 | $ 16.00 | |
Income (loss) from investment operations: |
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| Net investment loss** | (0.10) | (0.21) | (0.24) | (0.25) | (0.20) | (0.26) | (0.14) | (0.30) | (0.31) | (0.34) | (0.25) | (0.32) |
| Net realized and unrealized gain (loss) | 1.79 | 1.11 | 1.27 | 2.85 | 1.85 | (5.44) | 1.64 | 1.04 | 1.18 | 2.72 | 1.75 | (5.26) |
| Total income (loss) from investment operations | 1.69 | 0.90 | 1.03 | 2.60 | 1.65 | (5.70) | 1.50 | 0.74 | 0.87 | 2.38 | 1.50 | (5.58) |
Less distributions: |
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| Distributions from net realized gains | (0.98) | 0.00 | 0.00 | 0.00 | 0.00 | (1.48) | (0.98) | 0.00 | 0.00 | 0.00 | 0.00 | (1.48) |
| Total distributions | (0.98) | 0.00 | 0.00 | 0.00 | 0.00 | (1.48) | (0.98) | 0.00 | 0.00 | 0.00 | 0.00 | (1.48) |
Net asset value, end of period | $ 16.20 | $ 15.49 | $ 14.59 | $ 13.56 | $ 10.96 | $ 9.31 | $ 14.95 | $ 14.43 | $ 13.69 | $ 12.82 | $ 10.44 | $ 8.94 | |
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Total return + | 11.74% | 6.17% | 7.60% | 23.72% | 17.72% | (37.89)% | 11.26% | 5.41% | 6.79% | 22.80% | 16.78% | (38.34)% | |
Ratios/Supplemental Data: |
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| Net assets, end of period (in 000s) | $ 3,935 | $ 2,418 | $ 1,950 | $ 852 | $ 149 | $ 24 | $ 2,592 | $ 2,694 | $ 3,193 | $ 3,291 | $ 3,041 | $ 3,192 |
| Ratios of expenses to average net assets: |
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| Before fee waivers | 1.57% | 1.59% | 1.70% | 2.47% | 2.60% | 2.28% | 2.32% | 2.34% | 2.45% | 3.22% | 3.35% | 3.03% |
| After fee waivers | 1.57% | 1.59% | 1.70% | 2.47% | 2.57% | 2.28% | 2.32% | 2.34% | 2.45% | 3.22% | 3.32% | 3.03% |
| Ratios of net investment loss to |
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| average net assets: |
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| Before fee waivers | (1.25)% | (1.37)% | (1.40)% | (2.13)% | (2.07)% | (1.76)% | (2.00)% | (2.12)% | (2.15)% | (2.88)% | (2.82)% | (2.51)% |
| After fee waivers | (1.25)% | (1.37)% | (1.40)% | (2.13)% | (2.04)% | (1.76)% | (2.00)% | (2.12)% | (2.15)% | (2.88)% | (2.79)% | (2.51)% |
| Portfolio turnover rate | 111% (1) | 211% | 235% | 194% | 214% | 250% | 111% (1) | 211% | 235% | 194% | 214% | 250% |
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**The net investment loss per share data was determined using the average shares outstanding throughout each period. |
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+Assumes reinvestment of all dividends and distributions, if any. Aggregate (not annualized) total return is shown for any period shorter than one year. Total return does not reflect the deductions of taxes that a shareholder would pay on distributions or on the redemption of shares. | |||||||||||||
(1) | Not annualized. |
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See accompanying notes to financial statments.
FINANCIAL HIGHLIGHTS |
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Dunham Emerging Markets Stock Fund |
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The table sets forth financial data for one share of beneficial interest outstanding throughout each period. | |||||||||||||
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| Class N |
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| Six Months | Year Ended |
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| Ended | October 31, |
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| April 30, 2013 | 2012 | 2011 | 2010 | 2009 | 2008 |
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| (Unaudited) |
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Net asset value, beginning of period | $ 13.82 | $ 13.43 | $ 16.03 | $ 13.41 | $ 7.32 | $ 24.83 |
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Income (loss) from investment operations: |
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| Net investment income (loss)* | (0.06) | 0.04 | (0.05) | (0.11) | (0.08) | 0.03 |
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| Net realized and unrealized gain (loss) | 1.40 | 0.35 | (2.55) | 3.01 | 6.28 | (12.90) |
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| Total income (loss) from investment operations | 1.34 | 0.39 | (2.60) | 2.90 | 6.20 | (12.87) |
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Less distributions: |
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| Distributions from net investment income | 0.00 | 0.00 | 0.00 | (0.28) | 0.00 | (0.14) |
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| Distributions from net realized gains | 0.00 | 0.00 | 0.00 | 0.00 | (0.11) | (4.50) |
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| Total distributions | 0.00 | 0.00 | 0.00 | (0.28) | (0.11) | (4.64) |
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Net asset value, end of period | $ 15.16 | $ 13.82 | $ 13.43 | $ 16.03 | $ 13.41 | $ 7.32 |
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Total return +, # | 9.70% | 2.90% | (16.22)% | 21.98% | 86.15% | (62.85)% |
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Ratios/Supplemental Data: |
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| Net assets, end of period (in 000s) | $ 16,290 | $ 16,017 | $ 14,616 | $ 13,592 | $ 10,999 | $ 9,466 |
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| Ratios of expenses to average net assets: |
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| Before fee waivers ^ | 2.27% | 1.75% | 2.10% | 2.24% | 2.45% | 1.70% |
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| After fee waivers ^ | 2.27% | 1.75% | 2.10% | 2.24% | 2.42% | 1.63% |
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| Ratios of net investment income (loss) to |
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| average net assets: |
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| Before fee waivers ^ | (0.84)% | 0.29% | (0.35)% | (0.80)% | (0.91)% | 0.14% |
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| After fee waivers ^ | (0.84)% | 0.29% | (0.35)% | (0.80)% | (0.88)% | 0.21% |
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| Portfolio turnover rate | 45% (1) | 104% | 98% | 206% | 63% | 84% |
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| Class A | Class C | ||||||||||
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| Six Months | Year Ended | Six Months | Year Ended | ||||||||
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| Ended | October 31, | Ended | October 31, | ||||||||
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| April 30, 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | April 30, 2013 | 2012 | 2011 | 2010 | 2009 | 2008 |
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| (Unaudited) |
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| (Unaudited) |
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Net asset value, beginning of year | $ 13.59 | $ 13.23 | $ 15.83 | $ 13.28 | $ 7.27 | $ 24.79 | $ 13.16 | $ 12.90 | $ 15.56 | $ 13.06 | $ 7.20 | $ 24.56 | |
Income (loss) from investment operations: |
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| Net investment income (loss)* | (0.09) | 0.05 | (0.12) | (0.15) | (0.12) | (0.01) | (0.13) | (0.09) | (0.20) | (0.24) | (0.17) | (0.12) |
| Net realized and unrealized gain (loss) | 1.38 | 0.31 | (2.48) | 2.98 | 6.24 | (12.84) | 1.33 | 0.35 | (2.46) | 2.91 | 6.14 | (12.74) |
| Total income (loss) from investment operations | 1.29 | 0.36 | (2.60) | 2.83 | 6.12 | (12.85) | 1.20 | 0.26 | (2.66) | 2.67 | 5.97 | (12.86) |
Less distributions: |
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| Distributions from net investment income | 0.00 | 0.00 | 0.00 | (0.28) | 0.00 | (0.17) | 0.00 | 0.00 | 0.00 | (0.17) | 0.00 | 0.00 |
| Distributions from net realized gains | 0.00 | 0.00 | 0.00 | 0.00 | (0.11) | (4.50) | 0.00 | 0.00 | 0.00 | 0.00 | (0.11) | (4.50) |
| Total distributions | 0.00 | 0.00 | 0.00 | (0.28) | (0.11) | (4.67) | 0.00 | 0.00 | 0.00 | (0.17) | (0.11) | (4.50) |
Net asset value, end of period/year | $ 14.88 | $ 13.59 | $ 13.23 | $ 15.83 | $ 13.28 | $ 7.27 | $ 14.36 | $ 13.16 | $ 12.90 | $ 15.56 | $ 13.06 | $ 7.20 | |
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Total return +, # | 9.57% | 2.72% | (16.42)% | 21.62% | 85.64% | (62.96)% | 9.20% | 2.02% | (17.10)% | 20.67% | 84.37% | (63.22)% | |
Ratios/Supplemental Data: |
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| Net assets, end of period/year (in 000s) | $ 11,063 | $ 11,364 | $ 951 | $ 2,663 | $ 635 | $ 86 | $ 2,602 | $ 2,497 | $ 2,755 | $ 2,746 | $ 2,169 | $ 1,444 |
| Ratios of expenses to average net assets: |
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| Before fee waivers ^ | 2.52% | 2.00% | 2.35% | 2.49% | 2.70% | 1.95% | 3.27% | 2.75% | 3.10% | 3.24% | 3.45% | 2.70% |
| After fee waivers ^ | 2.52% | 2.00% | 2.35% | 2.49% | 2.67% | 1.88% | 3.27% | 2.75% | 3.10% | 3.24% | 3.42% | 2.63% |
| Ratios of net investment income (loss) to |
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| average net assets: |
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| Before fee waivers ^ | (1.09)% | 0.04% | (0.80)% | (1.05)% | (1.16)% | (0.11)% | (1.84)% | (0.71)% | (1.35)% | (1.80)% | (1.91)% | (0.86)% |
| After fee waivers ^ | (1.09)% | 0.04% | (0.80)% | (1.05)% | (1.13)% | (0.04)% | (1.84)% | (0.71)% | (1.35)% | (1.80)% | (1.88)% | (0.79)% |
| Portfolio turnover rate | 45% (1) | 104% | 98% | 206% | 63% | 84% | 45% (1) | 104% | 98% | 206% | 63% | 84% |
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*The net investment income (loss) per share data was determined using the average shares outstanding throughout each period. | |||||||||||||
^ Annualized for periods less than one year. |
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+Assumes reinvestment of all dividends and distributions, if any. Aggregate (not annualized) total return is shown for any period shorter than one year. Total return does not reflect the deductions of taxes that a shareholder would pay on distributions or on the redemption of shares. | |||||||||||||
# Includes adjustments in accordance with accounting principles generally accepted in the United States and, consequently, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. | |||||||||||||
(1) | Not annualized. |
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See accompanying notes to financial statements.
NOTES TO FINANCIAL STATEMENTS (Unaudited)
April 30, 2013
1.
ORGANIZATION
Each Dunham Fund and collectively the Funds (the “Funds”) is a series of shares of beneficial interest in the Dunham Funds (the “Trust”), a Delaware Business Trust organized on November 28, 2007 and registered under the Investment Company Act of 1940 (the “1940 Act”), as amended, as an open-end management investment company. Prior to that date, the Dunham Funds were a series of AdvisorOne Funds, also a Delaware Business Trust. The Dunham Funds currently consist of fifteen funds: Monthly Distribution Fund; Corporate/Government Bond Fund; High-Yield Bond Fund; Loss Averse Equity Income Fund; Appreciation & Income Fund; Large Cap Value Fund; Alternative Strategy Fund; Alternative Income Fund; Large Cap Growth Fund; Focused Large Cap Growth Fund; Real Estate Stock Fund; International Stock Fund; Small Cap Value Fund; Small Cap Growth Fund and Emerging Markets Stock Fund. Monthly Distribution Fund, Alternative Strategy Fund, Alternative Income Fund, Focused Large Cap Growth Fund and Real Estate Stock Fund, are non-diversified funds within the meaning of the 1940 Act. The remaining Funds are diversified funds within the meaning of the 1940 Act.
.
UFund |
| UPrimary Objective | ||
Monthly Distribution Corporate/Government Bond High-Yield Bond |
| Positive returns in rising and falling market environments Current income and capital appreciation High level of current income | ||
Loss Averse Equity Income |
| Maximize total return from capital appreciation and dividends | ||
Appreciation & Income |
| Total return under varying market conditions through both income and capital appreciation | ||
Large Cap Value Alternative Strategy* |
| Maximize total return from capital appreciation and dividends Long-term capital appreciation | ||
Alternative Income |
| Maximize income | ||
Large Cap Growth |
| Maximize capital appreciation | ||
Focused Large Cap Growth |
| Maximize capital appreciation | ||
Real Estate Stock |
| Total return from capital appreciation and dividends | ||
International Stock Small Cap Value |
| Total return from capital appreciation and dividends Maximize total return from capital appreciation and income | ||
Small Cap Growth |
| Maximize capital appreciation | ||
Emerging Markets Stock |
| Maximize capital appreciation | ||
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* On February 22, 2013, the Trust completed a re-organization with the World Funds Trust between the Sherwood Forest Alternative Fund and the Alternative Strategy Fund. Due to the re-organization occurring in between the fiscal year end cycle for the Sherwood Forest Alternative Fund, the Alternative Strategy Fund decided to use the Sherwood Forest Alternative Fund fiscal year end of July. Alternative Strategy is not presented in this semi-annual report, but filed a Form N-Q for the quarter ended April 30, 2013 and is available without charge upon request by calling (800) 442-4358.
Currently, each Fund offers Class A, Class C and Class N shares. Each class represents an interest in the same assets of the applicable Fund with the only difference being that Class A shares are subject to a front-end sales charge and an annual distribution fee and Class C shares are subject to an annual service and distribution fee. The Class C and N shares, with the exception of Monthly Distribution, High-Yield Bond, Loss Averse Equity Income, Focused Large Cap Growth and Alternative Income, commenced operations on December 10, 2004 and were formed as a result of tax-free conversions from common trusts. The conversions were accomplished through the exchange of the common trust securities, cash, and other assets for equivalent value of the Funds’ shares. High-Yield Bond Class C and N shares commenced operations on July 1, 2005. The Class A shares for all Funds except Monthly Distribution, Loss Averse Equity Income, Focused Large Cap Growth and Alternative Income commenced operations on January 3, 2007. Monthly Distribution‘s Predecessor Fund’s Class A shares and C shares commenced operations on December 26, 2000. Monthly Distribution Class N shares commenced operations on September 29, 2008. Loss Averse Equity Income commenced operations on April 30, 2010. Focused Large Cap Growth commenced operations on December 8, 2011. Alternative Income commenced operations on September 14, 2012. Effective June 15, 2012, Loss Averse Equity Income changed its name from Loss Averse Growth.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make 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 net assets from operations during the reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the Funds in preparation of their financial statements.
a. Security Valuation – In determining each Fund’s Net Asset Value (“NAV”) per share, equity securities for which market quotations are readily available are valued at current market value using the last reported sales price. NASDAQ traded securities are valued using the NASDAQ official closing price (“NOCP”). If no sale price is reported, the last bid price is used. If market quotations are not readily available, then securities are valued at fair value as determined by the Board of Trustees (the “Board”) (or its delegate). U.S. Government and agency securities are valued at the mean between the most recent bid and asked prices. Short-term debt
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2013
instruments with a remaining maturity of more than 60 days, intermediate and long-term bonds, convertible bonds, and other debt securities are generally valued on the basis of dealer supplied quotations or by a pricing system selected by Dunham & Associates Investment Counsel, Inc. (“Dunham & Associates” or the “Adviser”) and approved by the Board. Where such prices are not available, valuations will be obtained from brokers who are market makers for such securities. However, in circumstances where the Adviser deems it appropriate to do so, the mean of the bid and asked prices for over-the-counter securities or the last available sale price for exchange-traded debt securities may be used. Where no last sale price for exchange traded debt securities is available, the mean of the bid and asked prices may be used. Short-term debt securities with a remaining maturity of 60 days or less are valued at amortized cost, provided such valuations represent fair value.
Options are valued at the last reported sale price at the close of the exchange on which the security is primarily traded. If no sales are reported for the exchange-traded options, or the options are not exchange-traded, then they are valued at the mean of their most recent quoted bid and asked price. Futures contracts are valued at the daily quoted settlement prices.
Equity swaps are valued at the last reported sale price at the close of the exchange on which the underlying security is primarily traded. If no sale price is reported, the last bid price is used.
Trading in securities on Far Eastern securities exchanges and over-the-counter markets is normally completed well before the close of business on each business day in New York (i.e., a day on which the NYSE is open). In addition, Far Eastern securities trading generally, or in a particular country or countries, may not take place on all business days in New York. Furthermore, trading takes place in Japanese markets on certain Saturdays and in various foreign markets on days, which are not business days in New York, and on which a Fund’s NAV is not calculated. Each Fund calculates NAV per share, and therefore effects sales, redemptions and repurchases of its shares, as of the close of regular trading on the NYSE once on each day on which the NYSE is open. Such calculation may not take place contemporaneously with the determination of the prices of the majority of the portfolio securities used in such calculation. If events that may materially affect the value of such securities occur between the time when their price is determined and the time when the Fund’s NAV is calculated, such securities may be valued at fair value as determined in good faith in accordance with procedures approved by the Board.
Valuation of Fund of Funds - The Funds may invest in portfolios of open-end investment companies. Open-end funds are valued at their respective net asset values as reported by such investment companies. Open-end funds value securities in their portfolios for which market quotations are readily available at their market values (generally the last reported sale price) and all other securities and assets at their fair value based on the methods established by the board of directors of the open-end funds.
Securities for which current market quotations are not readily available, or for which quotations are not deemed to be representative of market values, are valued at fair value as determined in good faith by or under the direction of the Board in accordance with the Trust’s Portfolio Securities Valuation Procedures (the “Procedures”). The Procedures consider, among others, the following factors to determine a security’s fair value: the nature and pricing history (if any) of the security; whether any dealer quotations for the security are available; and possible valuation methodologies that could be used to determine the fair value of the security.
Securities in which the Funds invest may be traded in markets that close before 4:00 p.m. Eastern Time (“ET”). Normally, developments that occur between the close of the foreign markets and 4:00 p.m. ET will not be reflected in the Fund’s NAV. However, Funds may determine that such developments are so significant that they will materially affect the value of the Fund’s securities, and the Fund may adjust the previous closing prices to reflect what the Board believes to be the fair value of these securities as of 4:00 p.m. ET. Effective July 1, 2009, both International Stock and Emerging Markets Stock began using fair value prices as provided by an independent pricing vendor on a daily basis for those securities traded on a foreign exchange.
The Funds utilize various methods to measure the fair value of most of their investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of input are:
Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities.
Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Funds’ own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2013
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following tables summarize the inputs used as of April 30, 2013 for the Funds’ assets and liabilities measured at fair value:
Monthly Distribution
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Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stock * | $ 150,803,034 | $ - | $ - | $ 150,803,034 |
Exchange Traded Funds * | 3,914,534 | - | - | 3,914,534 |
Preferred Stock * | 36,011,803 | - | - | 36,011,803 |
Bonds & Notes * | - | 32,595,620 | - | 32,595,620 |
Purchased Put Options | 653,447 | - | - | 653,447 |
Short-Term Investment | 4,006,012 | - | - | 4,006,012 |
Total Assets | $ 195,388,830 | $ 32,595,620 | $ - | $ 227,984,450 |
Derivatives |
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Forward Currency Exchange Contracts | - | 1,260 | - | 1,260 |
Equity Swap Contracts | 4,552,555 | - | - | 4,552,555 |
Total Derivatives | $ 4,552,555 | $ 1,260 | $ - | $ 4,553,815 |
Liabilities |
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Securities Sold Short | 19,712,201 | - | - | 19,712,201 |
Total Liabilities | $ 19,712,201 | $ - | $ - | $ 19,712,201 |
Derivatives |
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Written Call Options | 15,043,893 | - | - | 15,043,893 |
Written Put Options | 80,726 | - | - | 80,726 |
Equity Swap Contracts | - | - | - | - |
Forward Currency Exchange Contracts | - | 185,900 | - | 185,900 |
Total Derivatives | $ 15,124,619 | $ 185,900 | $ - | $ 15,310,519 |
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Corporate/Government Bond
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Assets | Level 1 | Level 2 | Level 3 | Total |
Corporate Notes & Bonds * | $ - | $ 73,627,008 | $ - | $ 73,627,008 |
Foreign Government Bond * | - | 637,655 | - | 637,655 |
Municipal | - | 315,794 | - | 315,794 |
U.S. Government & Agencies | - | 36,113,018 | - | 36,113,018 |
Bank Loans | - | 8,805,387 | - | 8,805,387 |
Preferred Stock * | 685,392 | - | - | 685,392 |
Short-Term Investment | 4,488,039 | - | - | 4,488,039 |
Total | $ 5,173,431 | $ 119,498,862 | $ - | $ 124,672,293 |
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High-Yield Bond
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Assets | Level 1 | Level 2 | Level 3 | Total |
Bonds & Notes * | $ - | $ 144,303,691 | $ - | $ 144,303,691 |
Preferred Stock * | 6,162,465 | - | - | 6,162,465 |
Short-Term Investment | 6,358,548 | - | - | 6,358,548 |
Total | $ 12,521,013 | $ 144,303,691 | $ - | $ 156,824,704 |
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NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2013
Loss Averse Equity Income
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Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stock * | $ 7,963,939 | $ - | $ - | $ 7,963,939 |
Exchange Traded Funds * | 2,458,566 | - | - | 2,458,566 |
Total | $ 10,422,505 | $ - | $ - | $ 10,422,505 |
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Appreciation & Income
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Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stock * | $ 10,874,002 | $ - | $ - | $ 10,874,002 |
Convertible Bonds * | - | 8,674,432 | - | 8,674,432 |
Preferred Stock * | 2,996,888 | - | - | 2,996,888 |
Short-Term Investment | 395,615 | - | - | 395,615 |
Total | $ 14,266,505 | $ 8,674,432 | $ - | $ 22,940,937 |
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Large Cap Value
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Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stock * | $ 44,922,546 | $ - | $ - | $ 44,922,546 |
Short-Term Investment | 1,091,219 | - | - | 1,091,219 |
Total | $ 46,013,765 | $ - | $ - | $ 46,013,765 |
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Alternative Income
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Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stock * | $ 2,701,258 | $ - | $ - | $ 2,701,258 |
Exchange Traded Funds * | 507,416 | - | - | 507,416 |
Short-Term Investment | 62,961 | - | - | 62,961 |
Total | $ 3,271,635 | $ - | $ - | $ 3,271,635 |
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Large Cap Growth
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Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stock * | $ 32,250,224 | $ - | $ - | $ 32,250,224 |
Short-Term Investment | 1,972,776 | - | - | 1,972,776 |
Total | $ 34,223,000 | $ - | $ - | $ 34,223,000 |
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Focused Large Cap Growth
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Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stock * | $ 10,187,973 | $ - | $ - | $ 10,187,973 |
Short-Term Investment | 68,663 | - | - | 68,663 |
Total | $ 10,256,636 | $ - | $ - | $ 10,256,636 |
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NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2013
Real Estate Stock
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Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stock * | $ 461,910 | $ - | $ - | $ 461,910 |
REITs * | 31,808,906 | - | - | 31,808,906 |
Short-Term Investment | 579,908 | - | - | 579,908 |
Total | $ 32,850,724 | $ - | $ - | $ 32,850,724 |
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International Stock
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Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stock * | $ 7,231,960 | $ 45,673,694 | $ - | $ 52,905,654 |
Preferred Stock * | - | 1,013,618 | - | 1,013,618 |
Rights* | 192,420 | - | - | 192,420 |
Short-Term Investment | 917,210 | - | - | 917,210 |
Total Assets | $ 8,341,590 | $ 46,687,312 | $ - | $ 55,028,902 |
Derivatives |
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Forward Currency Exchange Contracts | - | 398,756 | - | 398,756 |
Total Derivatives | $ - | $ 398,756 | $ - | $ 398,756 |
Liabilities - Derivatives |
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Forward Currency Exchange Contracts | - | 131,664 | - | 131,664 |
Total Liabilities | $ - | $ 131,664 | $ - | $ 131,664 |
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Small Cap Value
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Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stock * | $ 16,859,985 | $ - | $ - | $ 16,859,985 |
Short-Term Investment | 596,498 | - | - | 596,498 |
Total | $ 17,456,483 | $ - | $ - | $ 17,456,483 |
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Small Cap Growth
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Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stock * | $ 20,699,753 | $ - | $ - | $ 20,699,753 |
Short-Term Investment | 674,238 | - | - | 674,238 |
Total | $ 21,373,991 | $ - | $ - | $ 21,373,991 |
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Emerging Markets Stock
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Assets | Level 1 | Level 2 | Level 3 | Total |
Common Stock * | $ 7,582,029 | $ 19,475,308 | $ - | $ 27,057,337 |
Peferred Stock * | 494,315 | - | - | 494,315 |
Warrants | - | 1,727,538 | - | 1,727,538 |
Short-Term Investment | 1,037,142 | - | - | 1,037,142 |
Total | $ 9,113,486 | $ 21,202,846 | $ - | $ 30,316,332 |
* See each Fund’s Schedule of Investments for breakdown by industry.
The Funds did not hold any Level 3 securities during the year.
There were no transfers into or out of Level 1 and 2 during the current year presented. It is the Funds’ policy to recognize transfers into and out of Level 1 and Level 2 at the end of the reporting period.
b. Foreign Currency Translations – The accounting records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency, and income receipts and expense payments, are translated into U.S. dollars using the prevailing exchange rate at the London market close. Purchases and sales of securities are translated into U.S. dollars at the contractual currency rates established at the approximate time of the trade.
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2013
Net realized gains and losses on foreign currency transactions represent net gains and losses from currency realized between the trade and settlement dates on securities transactions and the difference between income accrued versus income received. The effects of changes in foreign currency exchange rates on investments in securities are included with the net realized and unrealized gain or loss on investment securities.
c. Forward Currency Contracts – As foreign securities are purchased, a Fund generally enters into forward currency exchange contracts in order to hedge against foreign currency exchange rate risks. The market value of the contract fluctuates with changes in currency exchange rates. The contract is marked-to-market daily and the change in market value is recorded by a Fund as an unrealized gain or loss. As foreign securities are sold, a portion of the contract is generally closed and the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. A Fund may also enter into forward currency contracts as an investment strategy consistent with that Fund’s investment objective. Realized gains and losses from contract transactions are included as a component of net realized gains (losses) from investments and foreign currency in the Statements of Operations. For the six months ended April 30, 2013, Monthly Distribution and International Stock had net realized gains of $16,335 and $74,100, respectively and Emerging Markets Stock had net realized losses $67,005 on forward currency contracts. At April 30, 2013, net unrealized gains on International Stock were $267,092 and net unrealized losses for Monthly Distribution were $184,640 on open forward currency contracts.
d. Options – Monthly Distribution is subject to equity price risk in the normal course of pursuing its investment objective and may purchase or sell options to help hedge against this risk.
A Fund may write call options only if it (i) owns an offsetting position in the underlying security or (ii) has an absolute or immediate right to acquire that security without additional cash consideration or exchange of other securities held in its portfolio. When a Fund writes an option, there is no taxable event and an amount equal to the premium received is recorded by the Fund as a liability. The liability is thereafter valued to reflect the current value of the option. If the option is not exercised and expires, or if the Fund effects a closing purchase transaction, the Fund realizes a gain (or loss in the case of a closing purchase transaction where the cost to close the transaction exceeds the original premium received), and the liability related to the option is extinguished. Any such gain or loss generally is a short-term capital gain or loss for federal income tax purposes. If a call option that a Fund has written on any equity security is exercised, the Fund realizes a capital gain or loss (long-term or short-term, depending on the holding period of the underlying security) from the sale of the underlying security, and the proceeds from such sale are increased by the premium originally received. If a put option that the Fund has written on an equity security is exercised, the amount of the premium originally received reduces the cost of the security that the Fund purchases upon exercise of the option. When a Fund writes a put option, the Fund must deposit cash or liquid securities into a segregated account equal to the put option’s exercise value (number of shares times strike price).
A Fund may purchase put and call options. Put options are purchased to hedge against a decline in the value of securities held in the Fund’s portfolio. If such a decline occurs, the put options will permit the Fund to sell the securities underlying such options at the exercise price, or to close out the options at a profit. The premium paid for a put or call option plus any transaction costs will reduce the benefit, if any, realized by the Fund upon exercise of the option, and, unless the price of the underlying security rises or declines sufficiently, the option may expire worthless to the Fund. In addition, in the event that the price of the security in connection with which an option was purchased moves in a direction favorable to the Fund, the benefits realized by the Fund as a result of such favorable movement will be reduced by the amount of the premium paid for the option and related transaction costs. Written and purchased options are non-income producing securities. For the six months ended April 30, 2013, Monthly Distribution had net realized losses of $7,029,309 resulting from option activity.
e. Swap Agreements – Monthly Distribution is subject to equity price risk in the normal course of pursuing its investment objectives. The Funds may enter into various swap transactions for investment purposes to manage equity risk. These would be two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular pre-determined investments or instruments. The gross returns to be exchanged or “swapped” between parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate, in a particular foreign currency, or in a “basket” of securities representing a particular index or market segment. Changes in the value of swap agreements are recognized as unrealized gains or losses in the Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund amortizes upfront payments and/or accrues for the fixed payment stream on swap agreements on a daily basis with the net amount recorded as a component of unrealized gain or loss on the Statement of Operations. A liquidation payment received or made at the termination of the swap agreement is recorded as a realized gain or loss on the Statement of Operations. The Fund segregates liquid securities having a value at least equal to the amount of its current obligation under any swap transaction. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and counterparty risk in excess of amounts recognized on the Statement of Assets and Liabilities. The Fund’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from/paid to the counterparty over the contract’s remaining life, to the extent that that amount is positive. For the six months ended April 30, 2013, Monthly Distribution had net realized gains of $536,865 resulting from swap activity.
The derivative instruments outstanding as of April 30, 2013 as disclosed in the Notes to the Financial Statements and the amounts of realized and changes in unrealized gains and losses on derivative instruments during the six months as disclosed in the Statement of Operations, serve as indicators of the volume of derivative activity for the Funds.
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2013
f. Short Sales – A "short sale" is a transaction in which the Fund sells a security it does not own but has borrowed in anticipation that the market price of that security will decline. The Fund is obligated to replace the security borrowed by purchasing it on the open market at a later date. If the price of the security sold short increases between the time of the short sale and the time the Fund replaces the borrowed security, the Fund will incur a loss. Conversely, if the price declines, the Fund will realize a gain.
g. Exchange Traded Funds – The Funds may invest in exchange traded funds (“ETFs”). ETFs are a type of index fund bought and sold on a securities exchange. An ETF trades like common stock and represents a fixed portfolio of securities designed to track the performance and dividend yield of a particular domestic or foreign market index. A Fund may purchase an ETF to temporarily gain exposure to a portion of the U.S. or a foreign market while awaiting purchase of underlying securities. The risks of owning an ETF generally reflect the risks of owning the underlying securities they are designed to track, although the lack of liquidity on an ETF could result in it being more volatile. Additionally, ETFs have fees and expenses that reduce their value.
h. Investment Transactions, Investment Income and Expenses – Investment transactions are recorded on a trade date basis. Realized gains and losses from investment transactions and foreign exchange transactions are calculated using the identified cost method. Dividend income is recorded on the ex-dividend date (“ex-date”) except in the case of certain dividends from foreign securities, which are recorded as soon after the ex-date as the respective Fund, using reasonable diligence, becomes aware of such dividends. Interest income is recorded on an accrual basis. Discounts are accreted and premiums are amortized as adjustments to interest income and the identified cost of investments. Expenses of the Trust that are directly identifiable to a specific Fund, are charged to that Fund. Expenses, which are not readily identifiable to a specific Fund, are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative sizes of the Funds. Each Fund’s income, expenses (other than the class specific distribution fees) and realized and unrealized gains and losses are allocated proportionally each day between the classes based upon the relative net assets of each class.
i. Concentration of Risk – Investing in securities of foreign issuers and currency transactions may involve certain considerations and risks not typically associated with investments in the United States. These risks include revaluation of currencies, adverse fluctuations in foreign currency values and possible adverse political, social and economic developments, including those particular to a specific industry, country or region. These conditions could cause the securities and their markets to be less liquid and prices more volatile than those of comparable U.S. companies and U.S. government securities.
Small capitalization (“small cap”) companies may be more vulnerable than larger capitalization companies to adverse business or economic developments. Small cap companies may also have limited product lines, markets or financial resources, and may be dependent on a relatively small management group. Securities of such companies may be less liquid and more volatile than securities of larger capitalization companies or the market averages in general and therefore may involve greater risk than investing in larger capitalization companies.
The ability of issuers of debt securities held by the Funds to meet their obligations may be affected by economic and political developments particular to a specific industry, country, state or region. Investments in lower grade debt securities are subject to special risks, including greater price volatility and a greater risk of loss of principal and interest.
The risk in writing a call option is that the Fund may forgo the opportunity of profit if the market value of the underlying security increases and the option is exercised, although any potential loss is reduced by the amount of option premium received. The risk in writing a put option is that the Fund may be called on to pay the exercise price of the option for a security that has decreased (potentially to zero) in market price, although any potential loss is reduced by the amount of option premium received. Generally, option
transactions also involve risks concerning liquidity of the options market. An illiquid market for an option may limit the Fund’s ability to write options or enter closing transactions. As the options written by the Funds are traded on a national exchange, counterparty and credit risk are limited to the failure of the exchange on which the options are traded.
j. Federal Income Taxes – It is each Fund’s policy to continue to comply with all sections of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income and gains, if any, to its shareholders and therefore, no provision for federal income tax has been made. Each Fund is treated as a separate taxpayer for federal income tax purposes. The Funds recognize the tax benefits of uncertain tax positions only when the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has reviewed the tax positions in the open tax years of 2010 to 2012, and the six months ended April 30, 2013, and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken in the above open tax years. The Funds identify their major tax jurisdictions as U.S. Federal. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations. During the six months, the Funds did not incur any interest or penalties. Generally tax authorities can examine tax returns filed for the last three years.
k. Distributions to Shareholders – It is each Fund’s policy to distribute its respective net investment income and net capital gains, if any, annually except for Monthly Distribution, Corporate/Government Bond, and High-Yield Bond, which will distribute their respective net investment income, if any, monthly. And for Loss Averse Equity Income and Alternative Income, dividends attributable to earned income, if any, will be declared and paid quarterly. Distributions of net investment income and net capital gains are determined in accordance with income tax regulations which may differ from GAAP. Differences in dividends from net investment income per share
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2013
between the classes are due to service and distribution related expenses. Dividends and distributions to shareholders are recorded on ex-date.
l. Indemnification – The Trust indemnifies its officers and trustees for certain liabilities that may arise from the performance of their duties to the Trust. Additionally, in the normal course of business, each Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnities. A Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, based on experience, the Funds expect the risk of loss due to these warranties and indemnities to be remote.
3.
INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
a. Management Fees – Dunham & Associates serves as each Fund’s Investment Adviser. Pursuant to an Investment Advisory Agreement with the Funds, Dunham & Associates, subject to the supervision of the Board and in conformity with the stated policies of the Funds, manages the operations of the Funds. The Adviser, subject to the review and approval of the Board, selects Sub-Advisers for each Fund and supervises and monitors the performance of each Sub-Adviser. As compensation for its services, each Fund pays the Adviser a fixed fee, accrued daily and paid monthly, based on each Fund’s respective average daily net assets. The Adviser has entered into a Sub-Advisory Agreement with each Sub-Adviser and the Trust, on behalf of each Fund. Under the Sub-Advisory Agreements, each Fund pays the Sub-Adviser a “Fulcrum Fee.” A Fulcrum Fee is a performance fee whereby the Sub-Adviser is rewarded when out-performing, or is penalized when under-performing, a Fund’s benchmark index. The Funds’ Fulcrum Fee arrangements have been in place, with few changes, since July 1, 2006. As a result of the Fulcrum Fee arrangement, the total annual management fee for a Fund will have a range as shown in the table below.
Management Fee | Adviser’s Portion | Sub-Adviser’s Portion | |
Monthly Distribution * | 0.90% – 1.90% | 0.65% | 0.25% - 1.25% |
Corporate/Government Bond ** | 0.70% – 1.00% | 0.50% | 0.20% - 0.50% |
High-Yield Bond *** | 0.80% – 1.40% | 0.60% | 0.20% - 0.80% |
Loss Averse Equity Income **** | 0.75% – 1.55% | 0.65% | 0.10% - 0.90% |
Appreciation & Income | 0.90% – 1.60% | 0.65% | 0.25% - 0.95% |
Large Cap Value | 0.65% – 1.51% | 0.65% | 0.00% - 0.86% |
Alternative Income | 0.75% – 1.35% | 0.65% | 0.10% - 0.70% |
Large Cap Growth | 0.75% – 1.45% | 0.65% | 0.10% - 0.80% |
Focused Large Cap Growth ***** | 0.75% – 1.23% | 0.65% | 0.10% - 0.58% |
Real Estate Stock | 0.75% – 1.35% | 0.65% | 0.10% - 0.70% |
International Stock | 0.95% – 1.65% | 0.65% | 0.30% - 1.00% |
Small Cap Value | 0.65% – 1.75% | 0.65% | 0.00% - 1.10% |
Small Cap Growth | 0.65% – 1.65% | 0.65% | 0.00% - 1.00% |
Emerging Markets Stock | 0.75% – 1.75% | 0.65% | 0.10% - 1.10% |
* Effective April 1, 2013, the Sub-Adviser has contractually agreed to waive a portion of its fee until at least December 31, 2014, so that such fees, on annual basis, do not exceed 1.05% of the Fund’s aggregate average daily net assets of its Class N, Class A and Class C shares.
** Effective May 10, 2013, the Sub-Adviser has contractually agreed to waive a portion of its fee until at least May 30, 2014, as follows: 0.05% waived from
its base fee resulting in a range of fees of 0.15% to 0.45%.
*** Effective May 28, 2013, the Sub-Adviser has contractually agreed to waive a portion of its fee until at least May 31, 2014, as follows: 0.10% waived from its base fee and limits its performance fee to plus or minus 0.20%, resulting in a range of fees of 0.10% to 0.70%.
**** Effective March 18, 2013 the Sub-Adviser has contractually agreed to waive a portion of its fee to maintain the Fund’s total annual operating expenses (excluding any brokerage fees and commissions, indirect expenses, borrowing costs, taxes, extraordinary expenses at 1.59% for Class N Shares, 1.84% for Class A shares, and 2.59 % for Class C shares; provided, however, that the annual Sub-Advisory fee shall in no case be waived to less than 0.10% of the Fund’s average daily net assets. This agreement shall remain in effect until at least March 31, 2014.
***** The Adviser waived a portion of its fee during the first 12 months of fund operations, as follows: 0.30% waiver in the first three months, 0.20% waiver in the second three months, 0.15% waiver in the third three months, and 0.10% waiver in the final three months of the 12-month period. The Sub-Adviser waived a portion of its fee during the first 12 months of fund operations, as follows: 0.17% waived from its base fee and limits its performance fee to plus or minus 0.17%, resulting in a range of fees of 0.00% to 0.34%.
Each Fund’s Sub-Advisory Fulcrum Fee is calculated daily using an annual base Sub-Advisory fee of a specified amount of the average daily net assets of the Fund (the “Base Fee”), adjusted by the Fund’s Class N share performance relative to the Fund’s benchmark (the “Performance Fee”). Depending on a Fund’s net performance versus its benchmark, the Sub-Adviser will receive a fee adjustment in accordance with a formula that equates a percentage of out- or under-performance to a percentage of fee increases or decreases, respectively. In addition, most Fulcrum Fees employs a “null zone” around the base fee, whereby small differences in performance versus the benchmark will not trigger a fee increase or decrease. During the first 12 months of the Fulcrum Fee arrangement, the Performance Fee is calculated daily from inception date of the agreement to the calculation date and is applied to the average daily net assets of the Fund during the calculation period. After the initial 12 months, the Performance Fee is calculated on a daily basis based on comparative performance over a rolling 12-month period. All Funds, with the exception of Alternative Income, which is in the initial year of its Fulcrum Fee arrangement, are calculating Performance Fees on a rolling 12-month basis as of April 30, 2013.
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2013
Depending on the particular Sub-Advisory Agreement, the Performance Fee can adjust the Base Fee up or down by as much as 100% of the Base Fee, such that the Sub-Advisory fee can vary anywhere from 0.00% (the “Minimum Fee”) to twice the Base Fee (the “Maximum Fee”). However, because each such Sub-Advisory Agreement requires that the Sub-Adviser only be paid out the monthly Minimum Fee during the first year (in most cases, 0.10%), the Sub-Adviser, in most cases, will receive less compensation until the end of the first year. At the end of the first year of the agreement, the Sub-Adviser will be paid a lump sum that reflects the accrued Fulcrum Fee over the year, less any Minimum Fees paid out during the first year. Therefore, in the first year, the Fulcrum Fee methodology has three elements: 1) daily calculation of the Performance Fee and daily accrual of the Fulcrum Fee; 2) monthly payment of the Minimum Fee only (if any); and 3) a lump sum payment at the end of the initial 12-month period of the accrued Fulcrum Fee less the Minimum Fee.
By virtue of using average daily net assets over a “rolling” 6-month period for purposes of calculating the Performance Fee while using average daily net assets for the most recent month for purposes of calculating the Base Fee, the actual total Fulcrum Fee paid by the Fund to the Sub-Adviser may be higher or lower than the maximum or minimum annual rates described above if the average daily net assets do not remain constant during the rolling 12-month period. If the Fund is significantly underperforming versus the Index and the Fund’s net assets have declined significantly, the monthly total Fulcrum Fee can be a negative number (although the performance fee rate can never be negative, the Performance Fee can be negative). In such instances, if the negative Fulcrum Fee is not earned back or offset the following month, the Sub-Adviser must reimburse the Fund the amount of the negative Fulcrum Fee within an agreed upon time. Likewise, in the case where the Fund has significantly underperformed versus the Index but net assets have increased significantly, the monthly total Fulcrum Fee can be positive although the performance fee rate may be 0.00%. In such instances, the Fund will pay the Sub-Adviser the monthly Fulcrum Fee.
The table below lists the current Sub-Advisers along with their Fulcrum Fee arrangements.
Fund | Sub-Adviser | Benchmark | Base Fee | Null Zone | Minimum Fee | Maximum Fee |
Monthly Distribution * | Westchester Capital Management, LLC | IQ Hedge Market Neutral Beta Index | 0.75% | +/- 0.15% | 0.25% | 1.25% |
Corporate/Government Bond ** | Newfleet Asset Management, LLC | Barclays Capital Aggregate Bond Index | 0.35% | +/- 0.10% | 0.20% | 0.50% |
High-Yield Bond *** | PENN Capital Management Co., Inc. | BofA Merrill Lynch High-Yield Cash Pay Index | 0.50% | +/- 0.20% | 0.20% | 0.80% |
Loss Averse Equity Income **** | PVG Asset Management Corp. | IQ Hedge Long/Short Beta Index | 0.50% | +/- 0.20% | 0.10% | 0.90% |
Appreciation & Income | Calamos Advisors, LLC | Merrill Lynch Conv ex. Mandatory Index | 0.60% | +/- 0.20% | 0.25% | 0.95% |
Large Cap Value | C.S. McKee L.P. | Russell 1000 Value Index | 0.43% | +/- 1.50% | 0.00% | 0.86% |
Alternative Income | Harbor Springs Financial Management, LLC | Dow Jones US Select Dividend Index | 0.40% | +/- 0.30% | 0.10% | 0.70% |
Large Cap Growth | Mar Vista Investment Partners, LLC | Russell 1000 Growth Index | 0.45% | +/- 0.60% | 0.10% | 0.80% |
Focused Large Cap Growth***** | The Ithaka Group, LLC | Russell 1000 Growth Index | 0.34% | +/- 0.30% | 0.10% | 0.58% |
Real Estate Stock | Cornerstone Real Estate Advisers LLC | FTSE NAREIT Index | 0.40% | +/- 0.00% | 0.10% | 0.70% |
International Stock | Arrowstreet Capital L.P. | MSCI All Country World Index ex USA (Net) | 0.65% | +/- 0.20% | 0.30% | 1.00% |
Small Cap Value | Denver Investment Advisors LLC | Russell 2000 Value Index | 0.55% | +/- 0.25% | 0.00% | 1.10% |
Small Cap Growth | Pier Capital, LLC | Russell 2000 Growth Index | 0.50% | +/- 0.20% | 0.00% | 1.00% |
Emerging Markets Stock | Marvin & Palmer Associates, Inc. | MSCI Emerging Markets Index USD (Net) | 0.60% | +/- 0.30% | 0.10% | 1.10% |
* Effective April 1, 2013, the Sub-Adviser has contractually agreed to waive a portion of its fee until at least December 31, 2014, so that such fees, on annual basis, do not exceed 1.05% of the Fund’s aggregate average daily net assets of its Class N, Class A and Class C shares.
** Effective May 10, 2013, the Sub-Adviser has contractually agreed to waive a portion of its fee until at least May 30, 2014, as follows: 0.05% waived from
its base fee resulting in a range of fees of 0.15% to 0.45%.
*** Effective May 28, 2013, the Sub-Adviser has contractually agreed to waive a portion of its fee until at least May 31, 2014, as follows: 0.10% waived from its base fee and limits its performance fee to plus or minus 0.20%, resulting in a range of fees of 0.10% to 0.70%.
**** Effective March 18, 2013 the Sub-Adviser has contractually agreed to waive a portion of its fee to maintain the Fund’s total annual operating expenses (excluding any brokerage fees and commissions, indirect expenses, borrowing costs, taxes, extraordinary expenses) at 1.59% for Class N Shares, 1.84% for Class A shares, and 2.59 % for Class C shares; provided, however, that the annual Sub-Advisory fee shall in no case be waived to less than 0.10% of the Fund’s average daily net assets. This agreement shall remain in effect until at least March 31, 2014.
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2013
***** The Adviser waived a portion of its fee during the first 12 months of fund operations, as follows: 0.30% waiver in the first three months, 0.20% waiver in the second three months, 0.15% waiver in the third three months, and 0.10% waiver in the final three months of the 12-month period. The Sub-Adviser waived a portion of its fee during the first 12 months of fund operations, as follows: 0.17% waived from its base fee and limits its performance fee to plus or minus 0.17%, resulting in a range of fees of 0.00% to 0.34%.
b. Administration, Fund Accounting and Transfer Agency Fees – Gemini Fund Services, LLC (“GFS” or the “Administrator”) serves as the administrator, fund accountant and transfer agent for the Funds. For providing administration services, the Administrator receives from each Fund a monthly fee based on the combined average daily net assets at the following annual rates: 0.08% on the first $250 million of average net assets; 0.07% on average net assets between $250 million and $500 million; 0.05% on average net assets over $500 million. Such fees are subject to a minimum of $400,000 in total for the entire Trust. For providing fund accounting services, the Administrator receives from each Fund a monthly fee based on the combined average daily net assets at the following rates: 0.05% on the first $250 million of average net assets; 0.03% on average net assets between $250 million and $500 million; 0.01% on average net assets over $500 million. Such fees are subject to a minimum $300,000 in total for the entire Trust. For providing transfer agent services, the Administrator receives from the Trust a minimum annual fee of $200,000. The total expenses incurred by each Fund for such services provided by GFS are disclosed in the Statements of Operations.
Pursuant to the terms of a Custody Administration Agreement, Monthly Distribution pays GFS a monthly fee of $300.
Gemcom, LLC (“Gemcom”), an affiliate of GFS, provides EDGAR conversion and filing services as well as some print management services for the Funds on an ad-hoc basis. For the provision of these services, Gemcom receives customary fees from the Funds.
An officer of GFS is also an officer of the Trust.
c. Chief Compliance Officer– Northern Lights Compliance Services, LLC (“NLCS”), an affiliate of GFS, provides a Chief Compliance Officer (“CCO”) to the Trust, as well as related compliance services, pursuant to a consulting agreement between NLCS and the Trust. Under the terms of such agreement, NLCS receives customary fees from the Funds.
d. Distributor – The distributor of the Funds is Dunham & Associates (the “Distributor”). The Funds have adopted a Plan of Distribution (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act, as amended, for Class A and Class C shares. The Plan provides for the monthly payment of a distribution fee to the Distributor or other entities at an annualized rate of 0.75% for the equity funds and 0.50% for the fixed-income funds, based on the average daily net assets attributable to Class C shares, and 0.25% of the average daily net assets attributable to Class A shares. In addition, the Funds have adopted a Shareholder Servicing Plan which provides for the payment of a shareholder service fee at an annualized rate of up to 0.25% of the average daily net assets attributable to the Class C shares. Class N shares do not pay 12b-1 distribution or shareholder servicing fees.
e. Trustees’ Fees – The Funds pay no compensation to its Trustees who are employees of the Adviser or its affiliates. The Board has approved the following Trustee compensation schedule: Each Trustee will receive $4,250 for each Board meeting attended in-person; $500 for all telephonic Board meetings; $500 for in-person committee meetings and $250 for telephonic committee meetings, unless the committee meeting is on the same day as a Board meeting, in which case the Trustee will not be compensated. The Funds also reimburse each such Trustee for travel and other expenses incurred in attending meetings of the Board.
f. Other Affiliates–During the six months ended April 30, 2013, CIM Securities, LLC, a registered broker/dealer and an affiliate of the PVG Asset Management Corp., Loss Averse Equity Income’s Sub-Adviser, executed trades on behalf of the Loss Averse. These trades were cleared through Southwest Securities, Inc. and CIM Securities LLC. Bethel Fisher & Co. a registered broker/dealer and an affiliate of the Harbor Springs Financial Management LLC., Alternative Income Sub-Adviser, executed trades on behalf of the Alternative Income. The affiliated broker for Loss Averse and Alternative Income received $17,932 and 1,354, respectively, in trade commissions for the six months ended April 30, 2013.
4.
INVESTMENT TRANSACTIONS
The cost of purchases and the proceeds from sales of investments, other than short-term investments, for the six months ended April 30, 2013 were as follows
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2013
Fund |
| Purchases (excluding U.S. Government Securities) |
| Sale Proceeds (excluding U.S. Government Securities) |
| Purchases of U.S. Government Securities |
| Proceeds of U.S. Government Securities |
Monthly Distribution |
| $341,827,188 |
| $171,538,780 |
| $ - |
| $ - |
Corporate/Government Bond |
| 85,682,110 |
| 76,911,236 |
| 69,456,469 |
| 72,401,558 |
High-Yield Bond |
| 83,727,416 |
| 71,740,013 |
| - |
| - |
Loss Averse Equity Income |
| 18,001,821 |
| 20,261,789 |
| - |
| - |
Appreciation & Income |
| 8,138,028 |
| 18,130,575 |
| - |
| - |
Large Cap Value |
| 1,859,080 |
| 9,711,171 |
| - |
| - |
Alternative Income |
| 2,345,280 |
| 1,041,665 |
| - |
| - |
Large Cap Growth |
| 5,130,933 |
| 10,513,464 |
| - |
| - |
Focused Large Cap Growth |
| 6,383,370 |
| 8,381,994 |
| - |
| - |
Real Estate Stock |
| 20,610,193 |
| 15,859,774 |
| - |
| - |
International Stock |
| 45,176,469 |
| 51,112,678 |
| - |
| - |
Small Cap Value |
| 3,112,091 |
| 6,208,358 |
| - |
| - |
Small Cap Growth |
| 22,308,670 |
| 23,363,673 |
| - |
| - |
Emerging Markets Stock |
| 35,401,852 |
| 25,439,067 |
| - |
| - |
Transactions in option contracts purchased/written for Monthly Distribution during the six months ended April 30, 2013 were as follows:
|
| Options Purchased |
| Options Written | ||||
|
| Contracts |
| Premium |
| Contracts |
| Premium |
Outstanding at October 31, 2012 |
| 26,401 |
| $1,263,636 |
| 40,160 |
| $9,599,256 |
Options purchased/written during period |
| 66,135 |
| 3,893,513 |
| 100,531 |
| 22,492,176 |
Options exercised during period |
| (596) |
| (16,112) |
| (22,556) |
| (5,684,290) |
Options expired during period |
| (44,364) |
| (1,403,788) |
| (5,751) |
| (822,791) |
Options closed during period |
| (16,406) |
| (2,213,204) |
| (65,621) |
| (15,429,716) |
Outstanding at April 30, 2013 |
| 31,170 |
| $ 1,524,045 |
| 46,763 |
| $ 10,154,635 |
5.
AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION
The identified cost of investments in securities owned by each Fund for federal income tax purposes, and its respective gross unrealized appreciation and depreciation at April 30, 2013, were as follows:
Fund | Identified Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation* |
Monthly Distribution | $ 214,669,283 | $ 15,350,271 | $ (2,035,104) | $ 13,315,167 |
Corporate/Government Bond | 120,926,806 | 3,799,950 | (79,576) | 3,720,374 |
High-Yield Bond | 149,413,752 | 7,551,597 | (140,645) | 7,410,952 |
Loss Averse Equity Income | 10,189,886 | 622,318 | (487,757) | 134,561 |
Appreciation & Income | 20,429,016 | 3,014,010 | (502,089) | 2,511,921 |
Large Cap Value | 27,093,611 | 14,594,076 | (61,446) | 14,532,630 |
Alternative Income | 3,057,204 | 250,144 | (35,713) | 214,431 |
Large Cap Growth | 26,144,287 | 8,349,102 | (270,389) | 8,078,713 |
Focused Large Cap Growth | 9,023,321 | 1,461,704 | (228,389) | 1,233,315 |
Real Estate Stock | 26,556,053 | 6,304,773 | (10,102) | 6,294,671 |
International Stock | 47,346,212 | 8,186,810 | (677,311) | 7,509,499 |
Small Cap Value | 13,191,668 | 4,095,488 | (138,539) | 3,956,949 |
Small Cap Growth | 19,133,526 | 2,706,553 | (466,088) | 2,240,465 |
Emerging Markets Stock | 23,338,353 | 7,132,271 | (256,832) | 6,875,439 |
* Excludes Unrealized Appreciation (Depreciation) on Foreign Currency Transactions. |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2013
6.
FORWARD FOREIGN CURRENCY CONTRACTS
At April 30, 2013 Monthly Distribution and International Stock had the following open forward foreign currency contracts:
Monthly Distribution: |
|
|
| ||
| Settlement |
| Local | U.S. Dollar | Unrealized |
Foreign Currency | Date | Counterparty | Currency | Value | Appreciation |
To Buy: |
|
|
|
|
|
Australian Dollar | 5/8/2013 | JP Morgan | 24,223 | $ 25,113 | $ 271 |
|
|
|
| $ 25,113 | $ 271 |
|
|
|
|
|
|
Monthly Distribution: |
|
|
|
| Unrealized |
| Settlement |
| Local | U.S. Dollar | Appreciation |
Foreign Currency | Date | Counterparty | Currency | Value | (Depreciation) |
To Sell: |
|
|
|
|
|
Australian Dollar | 5/8/2013 | JP Morgan | 2,006,900 | $ 2,080,648 | $ (27,041) |
Australian Dollar | 5/18/2013 | JP Morgan | 377,577 | 391,144 | (778) |
Euro | 5/22/2013 | JP Morgan | 1,160,550 | 1,529,983 | (31,785) |
Canadian Dollar | 6/12/2013 | JP Morgan | 5,613,215 | 5,570,877 | (83,478) |
Canadian Dollar | 6/13/2013 | JP Morgan | 731,745 | 726,210 | (12,590) |
British Pound | 6/27/2013 | JP Morgan | 519,000 | 807,364 | (13,350) |
Australian Dollar | 7/10/2013 | JP Morgan | 1,321,933 | 1,364,132 | (6,423) |
Hong Kong Dollar | 8/21/2013 | JP Morgan | 27,692,348 | 3,570,271 | 989 |
Euro | 10/19/2013 | JP Morgan | 575,000 | 758,997 | (5,187) |
Euro | 10/29/2013 | JP Morgan | 429,762 | 567,284 | (5,268) |
|
|
|
| $ 17,366,910 | $ (184,911) |
|
|
|
|
|
| |
International Stock : |
|
| Unrealized | |||
| Settlement |
| Local | U.S. Dollar | Appreciation | |
Foreign Currency | Date | Counterparty | Currency | Value | (Depreciation) | |
To Buy: |
|
|
|
|
| |
Australian Dollar | 6/19/2013 | Royal Bank of Scotland | 83,166 | $ 80,542 | $ (73) | |
Brazilian Real | 5/2/2013 | US Bank | 64,672 | 32,349 | 24 | |
British Pound | 6/19/2013 | Deutsche Bank | 972,283 | 1,476,365 | (36,162) | |
Canadian Dollar | 4/17/2013 | UBS | 21,440 | 20,824 | (451) | |
Danish Krone | 6/19/2013 | UBS | 32,023 | 183,790 | (489) | |
Euro | 5/2/2013 | BNY Mellon | 173,252 | 225,680 | (2,687) | |
Euro | 6/19/2013 | BNY Mellon | 4,814,069 | 6,270,768 | (77,022) | |
Hong Kong Dollar | 6/19/2013 | UBS | 3,357,948 | 433,010 | 204 | |
Israeli New Shekel | 6/19/2013 | Royal Bank of Scotland | 319,524 | 86,530 | (2,448) | |
Japanese Yen | 6/19/2013 | BNY Mellon | 519,119,672 | 5,406,969 | 75,534 | |
Japanese Yen | 5/1/2013 | UBS | 4,386,000 | 44,085 | (950) | |
Japanese Yen | 5/7/2013 | UBS | 2,924,254 | 30,026 | 6 | |
New Zealand Dollar | 6/19/2013 | Royal Bank of Scotland | 186,684 | 153,247 | (6,302) | |
Norwegian Krona | 6/19/2013 | Royal Bank of Scotland | 1,002,156 | 172,857 | (861) | |
Swedish Krona | 6/19/2013 | BNY Mellon | 8,092,548 | 1,267,711 | 19,070 | |
Swiss Franc | 6/19/2013 | Deutsche Bank | 11,397 | 11,975 | (304) | |
|
|
|
| $ 15,896,728 | $ (32,911) | |
|
|
|
|
|
|
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2013
|
|
|
|
|
| |
International Stock : |
|
| Unrealized | |||
| Settlement |
| Local | U.S. Dollar | Appreciation | |
Foreign Currency | Date | Counterparty | Currency | Value | (Depreciation) | |
To Sell: |
|
|
|
|
| |
Australian Dollar | 5/2/2013 | UBS | 117,359 | $ 121,416 | $ 313 | |
Australian Dollar | 6/19/2013 | UBS | 2,717,839 | 2,786,143 | 22,720 | |
Brasilian Real | 4/29/2013 | US Bank | 180,670 | 179,748 | (922) | |
British Pound | 5/1/2013 | BNY Mellon | 75,764 | 117,304 | 592 | |
British Pound | 6/19/2013 | Deutsche Bank | 2,377,505 | 3,540,369 | 158,186 | |
Canadian Dollar | 6/19/2013 | UBS | 3,648,046 | 3,551,493 | 68,471 | |
Danish Krona | 6/19/2013 | UBS | 2,894,052 | 505,892 | 6,055 | |
Euro | 5/3/2013 | UBS | 64,141 | 83,974 | 572 | |
Euro | 6/19/2013 | BNY Mellon | 249,556 | 325,324 | 3,738 | |
Hong Kong Dollar | 6/19/2013 | UBS | 1,167,986 | 150,558 | (17) | |
Israeli New Shekel | 6/19/2013 | Royal Bank of Scotland | 551,456 | 151,532 | 2,031 | |
Japanese Yen | 5/2/2013 | Deutsche Bank | 16,740,645 | 171,383 | 511 | |
Japanese Yen | 5/7/2013 | UBS | 28,445,130 | 292,018 | (56) | |
Japanese Yen | 6/19/2013 | BNY Mellon | 45,613,157 | 471,036 | (2,583) | |
New Zealand Dollar | 6/19/2013 | Royal Bank of Scotland | 111,837 | 93,300 | 2,281 | |
Norwegian Krona | 6/19/2013 | Royal Bank of Scotland | 39,704 | 6,717 | 166 | |
Singapore Dollar | 6/19/2013 | UBS | 893,724 | 716,583 | 8,974 | |
Swedish Krona | 5/3/2013 | UBS | 1,956,817 | 298,766 | 3,485 | |
Swedish Krona | 6/19/2013 | BNY Mellon | 799,543 | 123,703 | (337) | |
Swiss Franc | 6/19/2013 | Deutsche Bank | 1,462,540 | 1,549,873 | 25,823 | |
|
|
|
| $ 15,237,132 | $ 300,003 |
7.
SHARES OF BENEFICIAL INTEREST
At April 30, 2013, each Fund had an unlimited number of shares authorized with no par value.
Following is a summary of shareholder transactions for each Fund for the six months ended April 30, 2013 and the year ended October 31, 2012:
Six Months Ended April 30, 2013:
|
|
|
|
|
|
|
|
|
|
| Class N Shares |
| Class A Shares | ||||||
Fund | Issued | Distributions Reinvested | Redeemed | Net Increase (Decrease) in Shares |
| Issued | Distributions Reinvested | Redeemed | Net Increase (Decrease) in Shares |
Monthly Distribution | 895,858 | 56,026 | (965,469) | (13,585) |
| 496,253 | 18,151 | (438,476) | 75,928 |
Corporate/Government Bond | 1,608,777 | 225,838 | (1,470,768) | 363,847 |
| 162,949 | 8,086 | (41,190) | 129,845 |
High-Yield Bond | 2,832,517 | 272,865 | (2,287,829) | 817,553 |
| 481,931 | 31,298 | (211,388) | 301,841 |
Loss Averse Equity Income | 186,664 | 2,256 | (238,937) | (50,017) |
| 8,382 | 1,594 | (56,562) | (46,586) |
Appreciation & Income | 124,348 | 73,501 | (1,245,736) | (1,047,887) |
| 76,754 | 8,296 | (59,455) | 25,595 |
Large Cap Value | 189,623 | 35,033 | (830,214) | (605,558) |
| 86,885 | 2,287 | (67,571) | 21,601 |
Alternative Income | 28,211 | 176 | (152) | 28,235 |
| 44,500 | 260 | (1,815) | 42,945 |
Large Cap Growth | 597,441 | 14,441 | (1,630,834) | (1,018,952) |
| 206,293 | 420 | (34,024) | 172,689 |
Focused Large Cap Growth | 23,327 | - | (22,051) | 1,276 |
| 536,660 | - | (692,844) | (156,184) |
Real Estate Stock | 260,298 | 62,748 | (280,571) | 42,475 |
| 350,071 | 2,369 | (6,890) | 345,550 |
International Stock | 258,934 | 38,921 | (674,360) | (376,505) |
| 122,124 | 1,390 | (17,660) | 105,854 |
Small Cap Value | 74,417 | 3,933 | (372,163) | (293,813) |
| 40,895 | - | (9,732) | 31,163 |
Small Cap Growth | 145,499 | 62,814 | (225,056) | (16,743) |
| 97,604 | 6,575 | (17,367) | 86,812 |
Emerging Markets Stock | 328,468 | - | (258,616) | 69,852 |
| 896,914 | - | (132,591) | 764,323 |
|
|
|
|
|
|
|
|
|
|
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2013
|
|
|
|
|
| Class C Shares | |||
Fund | Issued | Distributions Reinvested | Redeemed | Net Increase (Decrease) in Shares |
Monthly Distribution | 244,224 | 15,237 | (119,911) | 139,550 |
Corporate/Government Bond | 84,634 | 17,056 | (52,825) | 48,865 |
High-Yield Bond | 293,503 | 27,181 | (245,962) | 74,722 |
Loss Averse Equity Income | 30,279 | 1,513 | (20,504) | 11,288 |
Appreciation & Income | 43,077 | 8,216 | (112,330) | (61,037) |
Large Cap Value | 22,708 | 222 | (105,835) | (82,905) |
Alternative Income | 36,159 | 19 | (2,251) | 33,927 |
Large Cap Growth | 51,873 | - | (159,003) | (107,130) |
Focused Large Cap Growth | 4,999 | - | (4,862) | 137 |
Real Estate Stock | 28,343 | 5,891 | (33,696) | 538 |
International Stock | 20,895 | 409 | (81,914) | (60,610) |
Small Cap Value | 7,472 | - | (39,582) | (32,110) |
Small Cap Growth | 15,415 | 12,843 | (41,675) | (13,417) |
Emerging Markets Stock | 38,052 | - | (61,738) | (23,686) |
|
|
|
|
|
Year Ended October 31, 2012:
|
|
|
|
|
|
|
|
|
|
| Class N Shares |
| Class A Shares | ||||||
Fund | Issued | Distributions Reinvested | Redeemed | Net Increase (Decrease) in Shares |
| Issued | Distributions Reinvested | Redeemed | Net Increase (Decrease) in Shares |
Monthly Distribution | 1,901,588 | 72,866 | (382,555) | 1,591,899 |
| 803,526 | 22,004 | (337,542) | 487,988 |
Corporate/Government Bond | 4,000,348 | 228,137 | (1,285,730) | 2,942,755 |
| 284,765 | 3,288 | (86,435) | 201,618 |
High-Yield Bond | 8,379,207 | 392,756 | (1,738,233) | 7,033,730 |
| 1,056,522 | 42,141 | (373,741) | 724,922 |
Loss Averse Equity Income | 464,806 | 8,328 | (439,289) | 33,845 |
| 153,982 | 6,050 | (114,374) | 45,658 |
Appreciation & Income | 568,527 | 34,587 | (686,771) | (83,657) |
| 343,241 | 2,819 | (181,536) | 164,524 |
Large Cap Value | 778,955 | 14,993 | (811,146) | (17,198) |
| 90,034 | 343 | (108,940) | (18,563) |
Alternative Income | 35,001 | - | - | 35,001 |
| 113,710 | - | - | 113,710 |
Large Cap Growth | 1,472,628 | 23,496 | (2,325,875) | (829,751) |
| 262,140 | 61 | (26,913) | 235,288 |
Focused Large Cap Growth | 50,721 | - | (7,560) | 43,161 |
| 1,023,310 | - | (27,961) | 995,349 |
Real Estate Stock | 592,810 | 8,306 | (214,160) | 386,956 |
| 76,411 | 4,103 | (540,198) | (459,684) |
International Stock | 1,010,904 | 47,348 | (630,467) | 427,785 |
| 108,531 | 1,300 | (89,024) | 20,807 |
Small Cap Value | 302,304 | - | (308,601) | (6,297) |
| 455,858 | - | (423,615) | 32,243 |
Small Cap Growth | 209,029 | - | (292,530) | (83,501) |
| 98,410 | - | (75,978) | 22,432 |
Emerging Markets Stock | 328,469 | - | (258,616) | 69,853 |
| 896,914 | - | (132,591) | 764,323 |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2013
|
|
|
|
|
| Class C Shares | |||
Fund | Issued | Distributions Reinvested | Redeemed | Net Increase (Decrease) in Shares |
Monthly Distribution | 267,736 | 27,107 | (237,461) | 57,382 |
Corporate/Government Bond | 129,901 | 27,767 | (192,389) | (34,721) |
High-Yield Bond | 736,140 | 57,325 | (417,639) | 375,826 |
Loss Averse Equity Income | 106,970 | 4,421 | (37,347) | 74,044 |
Appreciation & Income | 109,105 | 1,694 | (143,047) | (32,248) |
Large Cap Value | 59,848 | - | (176,272) | (116,424) |
Alternative Income | 54,006 | - | - | 54,006 |
Large Cap Growth | 77,933 | - | (470,932) | (392,999) |
Focused Large Cap Growth | 17,554 | - | (3,408) | 14,146 |
Real Estate Stock | 49,138 | - | (39,551) | 9,587 |
International Stock | 71,061 | 2,036 | (166,265) | (93,168) |
Small Cap Value | 19,816 | - | (80,068) | (60,252) |
Small Cap Growth | 29,758 | - | (76,288) | (46,530) |
Emerging Markets Stock | 38,052 | - | (61,738) | (23,686) |
8.
DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF CAPITAL
The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to a Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carry forwards) under income tax regulations.
As of October 31, 2012, permanent book and tax differences, attributable primarily from differing treatments for foreign currency transactions, dividend reclassifications, reclassifications of gains on contingent convertible debt securities, net operating losses and security paydown gains and losses were identified and reclassified among the components of the following Fund’s net assets as follows:
Fund | Paid in Capital | Undistributed Net Investment Income (Loss) | Accumulated Net Realized Gain (Loss) on Investments and Foreign Currency Transactions |
Monthly Distribution | $ (1,292,633) | $ 1,212,593 | $ 80,040 |
Corporate/Government Bond | - | 251,131 | (251,131) |
Loss Averse Equity Income | - | (42,775) | 42,775 |
Appreciation & Income | - | 390,174 | (390,174) |
Alternative Income | - | (5) | 5 |
Focused Large Cap Growth | - | 16,856 | (16,856) |
International Stock | - | 48,124 | (48,124) |
Small Cap Value | - | (330) | 330 |
Small Cap Growth | (38,606) | 38,606 | - |
Emerging Markets Stock | (39,429) | (75,678) | 115,107 |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2013
The tax character of distributions paid during the year or period ended October 31,2012 was as follows:
| Year or Period Ended Octover 31, 2012 | |||
Fund | Ordinary Income | Long-Term Capital Gain | Return of Capital | Total |
Monthly Distribution | $ 2,251,818 | $ - | $ 2,676,179 | $ 4,927,997 |
Corporate/Government Bond | 2,294,277 | 1,421,777 | - | 3,716,054 |
High-Yield Bond | 5,302,588 | - | - | 5,302,588 |
Loss Averse Equity Income | 380,043 | - | 157,753 | 537,796 |
Appreciation & Income | 339,901 | - | - | 339,901 |
Large Cap Value | 161,933 | - | - | 161,933 |
Alternative Income | - | - | - | - |
Large Cap Growth | 92,639 | - | - | 92,639 |
Focused Large Cap Growth | - | - | - | - |
Real Estate Stock | 169,262 | - | - | 169,262 |
International Stock | 544,245 | - | - | 544,245 |
Small Cap Value | - | - | - | - |
Small Cap Growth | - | - | - | - |
Emerging Markets Stock | - | - | - | - |
As of October 31, 2012, the components of distributable earnings (accumulated losses) on a tax basis were as follows:
Fund | Undistributed Ordinary Income | Accumulated Long-Term Gains | Capital Loss Carry Forwards | Late Year Losses | Unrealized Appreciation (Depreciation) | Total Accumulated Earnings (Deficits) |
Monthly Distribution | $ - | $ - | $ (17,223,112) | $ - | $ 1,957,192 | $ (15,265,920) |
Corporate/Government Bond | 1,713,898 | 478,815 | - | - | 3,841,788 | 6,034,501 |
High-Yield Bond | 9,524 | - | (7,858,902) | - | 5,821,969 | (2,027,409) |
Loss Averse Equity Income | - | - | (440,039) | - | 459,365 | 19,326 |
Appreciation & Income | 674,016 | - | (2,044,833) | - | 1,866,634 | 495,817 |
Large Cap Value | 316,590 | - | (7,068,520) | - | 10,627,344 | 3,875,414 |
Alternative Income | - | - | (3,383) | (13,706) | (30,682) | (47,771) |
Large Cap Growth | 64,161 | - | (19,345,282) | (8,492) | 6,180,906 | (13,108,707) |
Focused Large Cap Growth | - | - | - | (30,148) | 153,478 | 123,330 |
Real Estate Stock | 195,761 | 786,228 | - | - | 2,803,821 | 3,785,810 |
International Stock | 470,757 | - | (11,948,741) |
| 3,021,242 | (8,456,742) |
Small Cap Value | - | - | (4,663,439) | (17,587) | 2,093,156 | (2,587,870) |
Small Cap Growth | - | 1,255,505 | - | (212,059) | 1,059,320 | 2,102,766 |
Emerging Markets Stock | - | - | (6,581,868) | - | 4,596,157 | (1,985,711) |
Late year losses incurred after December 31 within the fiscal year are deemed to arise on the first business day of the following fiscal year for tax purposes. The Funds incurred and elected to defer such last year losses as follows:
|
|
| Late Year |
Fund | Losses |
Alternative Income | $ 13,706 |
Large Cap Growth | 8,492 |
Focused Large Cap Growth | 30,148 |
Small Cap Value | 17,587 |
Small Cap Growth | 212,059 |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
April 30, 2013
At October 31, 2012, the following Funds had capital loss carryforwards for federal income tax purposes available to offset future capital gains through the indicated expiration date:
| Expiring October 31, | Short Term | Long Term |
| |||
Fund | 2015 | 2016 | 2017 | 2019 | Non-Expiring | Non-Expiring | Total |
Monthly Distribution* | $ 12,194,544 | $ - | $ 5,028,568 | $ - | $ - | $ - | $ 17,223,112 |
High-Yield Bond | - | 1,978,440 | 5,880,462 | - | - | - | 7,858,902 |
Loss Averse Equity Income | - | - | - | 152,058 | 270,546 | 17,435 | 440,039 |
Appreciation & Income | - | - | 2,044,833 | - | - | - | 2,044,833 |
Large Cap Value | - | 1,102,164 | 5,966,356 | - | - | - | 7,068,520 |
Large Cap Growth | - | 4,844,500 | 14,500,782 | - | - | - | 19,345,282 |
Alternative Income | - | - | - | - | 3,383 | - | 3,383 |
International Stock | - | 2,320,734 | 8,983,154 | - | 644,853 |
| 11,948,741 |
Small Cap Value | - | - | 4,663,439 | - | - | - | 4,663,439 |
Emerging Markets Stock | - | - | 3,386,808 | 351,019 | 2,776,526 | 67,515 | 6,581,868 |
* For Monthly Distribution, $4,122,907, $3,650,852 and $2,341,623 of capital loss carryover related to the acquisition of the Kelmoore Strategy Fund, Kelmoore Strategy Eagle Fund and Kelmoore Strategy Liberty Fund, respectively, is remaining to be recognized over the next four years. These amounts are subject to annual limitations of $1,374,302, $1,216,951 and $780,541 for the Kelmoore Strategy Fund, Kelmoore Strategy Eagle Fund and Kelmoore Strategy Liberty Fund, respectively, under tax rules.
9.
RECENT ACCOUNTING PRONOUNCEMENT
In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-11 related to disclosures about offsetting assets and liabilities. In January 2013, the FASB issued ASU No. 2013-01 which gives additional clarification to ASU 2011-11. 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 this amendment may have on the Fund’s financial statements.
10.
SUBSEQUENT EVENTS
Subsequent events after the date of the Statement of Assets and Liabilities have been evaluated through the date the financial statements were issued. Management has concluded that there is no impact requiring adjustment or disclosure in the financial statements.
YOUR FUNDS’ EXPENSES (Unaudited)
Example
Shareholders of mutual funds will pay ongoing expenses, such as advisory fees, distribution and service fees (12b-1), and other fund expenses. The following examples are intended to help you understand the ongoing cost (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note, the expenses shown in the tables are meant to highlight ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or contingent deferred sales charges on redemptions which may be assessed by mutual funds. This Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.
Actual Expenses
The columns under the heading entitled “Actual” help you estimate the actual expenses you paid over the period. The “Actual-Ending Account Value” shown is derived from the Fund’s actual return, and the “Actual- Expenses Paid During Period” shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. To estimate the expenses you paid on your account during this 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 column under the heading entitled “Actual-Expenses Paid During Period”.
Hypothetical Examples for Comparison Purposes
The columns under the heading entitled “Hypothetical” provide information about hypothetical account value 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 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 which may be applicable to your account. Therefore, the last column of the table (Hypothetical- Expenses Paid During Period) 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.
|
|
| Actual |
| Hypothetical (5% return before expenses) | ||
| Fund’s Annualized Expense Ratio | Beginning Account Value 11/1/12 | Ending Account Value 4/30/13 | Expenses Paid During Period* |
| Ending Account Value 4/30/13 | Expenses Paid During Period* |
Class N: |
|
|
|
|
|
|
|
Monthly Distribution Fund | 2.35% | $1,000.00 | $1,057.70 | $11.99 |
| $1,013.14 | $11.73 |
Corporate/Government Bond Fund | 1.23% | $1,000.00 | $1,022.20 | $ 6.17 |
| $1,018.70 | $ 6.16 |
High-Yield Bond Fund | 1.09% | $1,000.00 | $1,055.70 | $ 5.56 |
| $1,019.39 | $ 5.46 |
Loss Averse Equity Income Fund | 1.57% | $1,000.00 | $1,039.30 | $ 7.94 |
| $1,017.01 | $ 7.85 |
Appreciation & Income Fund | 1.39% | $1,000.00 | $ 1,065.40 | $ 7.12 |
| $1,017.90 | $ 6.95 |
Large Cap Value Fund | 1.03% | $1,000.00 | $1,122.10 | $ 5.42 |
| $1,019.69 | $ 5.16 |
Alternative Income Fund | 2.81% | $1,000.00 | $1,098.20 | $ 3.88 |
| $1,010.86 | $14.01 |
Large Cap Growth Fund | 1.65% | $1,000.00 | $1,130.10 | $ 8.71 |
| $1,016.61 | $ 8.25 |
Focused Large Cap Growth Fund | 1.38% | $1,000.00 | $1,100.80 | $ 7.19 |
| $1,017.95 | $ 6.90 |
Real Estate Stock Fund | 1.30% | $1,000.00 | $1,176.90 | $ 7.02 |
| $1,018.35 | $ 6.51 |
International Stock Fund | 2.06% | $1,000.00 | $1,170.00 | $11.08 |
| $1,014.58 | $10.29 |
Small Cap Value Fund | 1.25% | $1,000.00 | $1,156.70 | $ 6.68 |
| $1,018.60 | $ 6.26 |
Small Cap Growth Fund | 1.32% | $1,000.00 | $1.119.10 | $ 6.94 |
| $1,018.25 | $ 6.61 |
Emerging Markets Stock Fund | 2.27% | $1,000.00 | $1,097.00 | $11.80 |
| $1,013.54 | $11.33 |
Class A: |
|
|
|
|
|
|
|
Monthly Distribution Fund | 2.60% | $1,000.00 | $1,058.90 | $13.27 |
| $1,011.90 | $12.97 |
Corporate/Government Bond Fund | 1.48% | $1,000.00 | $1,021.00 | $ 7.42 |
| $1,017.46 | $ 7.40 |
High-Yield Bond Fund | 1.34% | $1,000.00 | $1,054.00 | $ 6.82 |
| $1,018.15 | $ 6.71 |
Loss Averse Equity Income Fund | 1.82% | $1,000.00 | $1,038.10 | $ 9.20 |
| $1,015.77 | $ 9.10 |
Appreciation & Income Fund | 1.64% | $1,000.00 | $ 1,063.90 | $ 8.39 |
| $1,016.66 | $ 8.20 |
Large Cap Value Fund | 1.28% | $1,000.00 | $1,120.80 | $ 6.73 |
| $1,018.45 | $ 6.41 |
Alternative Income Fund | 3.06% | $1,000.00 | $1,097.20 | $ 4.22 |
| $1,009.62 | $15.25 |
Large Cap Growth Fund | 1.90% | $1,000.00 | $1,125.50 | $ 10.01 |
| $1,015.37 | $ 9.49 |
Focused Large Cap Growth Fund | 1.63% | $1,000.00 | $1,101.10 | $ 8.49 |
| $1,016.71 | $ 8.15 |
Real Estate Stock Fund | 1.55% | $1,000.00 | $1,176.10 | $ 8.36 |
| $1,017.11 | $ 7.75 |
International Stock Fund | 2.31% | $1,000.00 | $1,168.40 | $12.42 |
| $1,013.34 | $11.53 |
Small Cap Value Fund | 1.50% | $1,000.00 | $1,155.00 | $ 8.01 |
| $1,017.36 | $ 7.50 |
Small Cap Growth Fund | 1.57% | $1,000.00 | $1,117.40 | $ 8.24 |
| $1,017.01 | $ 7.85 |
Emerging Markets Stock Fund | 2.52% | $1,000.00 | $1,095.70 | $13.09 |
| $1,012.30 | $12.57 |
YOUR FUNDS’ EXPENSES (Unaudited) (Continued)
|
|
| Actual |
| Hypothetical (5% return before expenses) | ||
| Fund’s Annualized Expense Ratio | Beginning Account Value 11/1/12 | Ending Account Value 4/30/13 | Expenses Paid During Period* | Ending Account Value 4/30/13 | Expenses Paid During Period* | |
Class C: |
|
|
|
|
|
|
|
Monthly Distribution Fund | 3.35% | $1,000.00 | $1,054.90 | $17.07 |
| $1,008.18 | $16.68 |
Corporate/Government Bond Fund | 1.98% | $1,000.00 | $1,018.60 | $ 9.91 |
| $1,014.98 | $ 9.89 |
High-Yield Bond Fund | 1.84% | $1,000.00 | $1,052.10 | $ 9.36 |
| $1,015.67 | $ 9.20 |
Loss Averse Equity Income Fund | 2.57% | $1,000.00 | $1,033.60 | $12.96 |
| $1,012.05 | $12.82 |
Appreciation & Income Fund | 2.39% | $1,000.00 | $1,060.30 | $12.21 |
| $1,012.94 | $11.93 |
Large Cap Value Fund | 2.03% | $1,000.00 | $1,116.70 | $10.65 |
| $1,014.73 | $10.14 |
Alternative Income Fund | 3.81% | $1,000.00 | $1,092.90 | $ 5.24 |
| $1005.90 | $18.95 |
Large Cap Growth Fund | 2.65% | $1,000.00 | $1,122.10 | $13.94 |
| $1,011.65 | $13.22 |
Focused Large Cap Growth Fund | 2.38% | $1,000.00 | $1,095.80 | $12.37 |
| $1,012.99 | $11.88 |
Real Estate Stock Fund | 2.30% | $1,000.00 | $1,170.70 | $12.38 |
| $1,013.39 | $11.48 |
International Stock Fund | 3.06% | $1,000.00 | $1,163.40 | $16.41 |
| $1,009.62 | $15.25 |
Small Cap Value Fund | 2.25% | $1,000.00 | $1,150.10 | $11.99 |
| $1,013.64 | $11.23 |
Small Cap Growth Fund | 2.32% | $1,000.00 | $1,112.60 | $12.15 |
| $1,013.29 | $11.58 |
Emerging Markets Stock Fund | 3.27% | $1,000.00 | $1,092.00 | $16.96 |
| $1,008.58 | $16.29 |
*Expenses Paid During Period are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 181 days and divided by 365 (to reflect the number of days in the six month period ending April 30, 2013).
ADDITIONAL INFORMATION (Unaudited)
FACTORS CONSIDERED BY THE INDEPENDENT TRUSTEES IN APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS
At a regular meeting (the “Meeting”) of the Board of Trustees (the “Board”) of the Dunham Funds (the “Trust”) held on December 18, 2012, the Board, including a majority of the Trustees who are not interested persons of the Trust (the “Independent Trustees”), considered the renewal of the investment advisory agreement (“Investment Advisory Agreement”) and sub-advisory agreements (the “Sub-Advisory Agreements”) among the Trust, Dunham & Associates Investment Counsel, Inc. (the “Adviser” or “DAIC”) and the following Sub-Advisers (each a “Sub-Adviser”, collectively, the “Sub-Advisers”) for the indicated series of the Trust (each a “Fund” and, collectively, the “Funds”): (i) Arrowstreet Capital, L.P.(“Arrowstreet”) with respect to the Dunham International Stock Fund; (ii) Calamos Advisors LLC (“Calamos”) with respect to the Dunham Appreciation & Income Fund; (iii) C.S. McKee, LP (“C.S. McKee”) with respect to the Dunham Large Cap Value Fund; (iv) Denver Investment Advisors LLC (“Denver”) with respect to the Dunham Small Cap Value Fund; (v) PENN Capital Management Company, Inc. (“PENN”) with respect to the Dunham High-Yield Bond Fund; (vi) Pier Capital, LLC (“Pier”) with respect to the Dunham Small Cap Growth Fund; (vii) Newfleet Asset Management LLC (fka, SCM Advisors LLC) (“Newfleet”) with respect to the Dunham Corporate/Government Bond Fund; (viii) Westchester Capital Management, LLC (“Westchester”) with respect to the Dunham Monthly Distribution Fund; (ix) PVG Asset Management Corporation (“PVG”) with respect to the Dunham Loss Averse Equity Income Fund; (x) Mar Vista Investment Partners, LLC (“Mar Vista”) with respect to the Dunham Large Cap Growth Fund; and (xi) Marvin & Palmer Associates, Inc. (Marvin & Palmer”) with respect to the Dunham Emerging Markets Stock Fund. Also, at this Meeting, the Board, including the Independent Trustees, considered the approval of the Investment Advisory and Sub-Advisory Agreements (collectively, the “Advisory Agreements”) between the Trust, on behalf of a new series of the Trust, the Dunham Alternative Strategy Fund, the Adviser and Sherwood Forest Capital Management, LLC (“Sherwood”) (now known as Market Concepts, LLC, dba mConcepts). Board deliberations included consideration of the following:
Continuance of Investment Advisory Agreement
The Trustees reviewed information related to the proposed renewal of the Investment Advisory Agreement with the Trust, including (a) the investment performance of each Fund, a peer group of funds and appropriate indices; (b) the Adviser’s personnel and resources; and (c) comparative fees and expenses of a peer group of funds. In its deliberations, the board did not identify any single piece of information that was all important or controlling.
Nature, Extent and Quality of Services. As to the nature and extent and quality of services to be provided, the Independent Trustees reviewed a copy of DAIC’s Form ADV and discussed the qualifications of DAIC’s key personnel, the experience of DAIC in managing mutual funds, its compliance infrastructure and policies. The Trustees noted DAIC’s on-going commitment to marketing and growing Fund assets and that there have been no recent changes to key personnel at DAIC. The Board further noted that the Trust and DAIC each maintain Directors and Officers liability insurance coverage of $1,000,000. The Independent Trustees noted that DAIC provides a high level of service to the Funds and maintains open and frank communications with the Board. In addition, the Board noted the Adviser’s active supervision of Sub-Advisers, continuous monitoring of Sub-Adviser performance and evaluation of alternatives should a Sub-Adviser change be necessary. The Board reviewed the capitalization of DAIC based on financial statements provided by the Adviser in the Board materials and were satisfied that DAIC has the resources to continue to provide the high quality investment advisory services that the Board has come to expect.
Performance of the Adviser. As to the investment performance, the Board reviewed the performance of each Fund (as measured by the performance of Class N shares, the largest share class) compared to broad-based securities market indices, over the past one-year, three-year and since-inception periods. The Board also noted information was provided comparing each Fund’s performance to that of the average of a relevant peer group. The Independent Trustees discussed DAIC’s active and consistent approach to monitoring each Sub-Adviser, particularly with respect to each Sub-Adviser’s strategies and performance. The Board concluded that they were satisfied that each of the Funds, as managed by DAIC, and the respective Sub-Advisers, had provided an acceptable level of investment return to shareholders.
ADDITIONAL INFORMATION (Unaudited)
Cost of Services. As to the costs of the services provided by the Adviser, the Independent Trustees reviewed and discussed each Fund’s advisory fees and overall expenses compared to peer groups of similarly managed funds. The Trustees reviewed the Peer Group data on a Fund by Fund basis, and a representative of the Adviser explained that the size of the complex was not a factor in determining the comparative Peer Group. The Trustees discussed the fact that in some cases a small fund may pay lower fees because the fund is part of a large complex, and the adviser is able to offer a low fee despite the size of the fund due to economies of scale achieved, and significant profits earned, from the other, larger funds in the complex. They noted that the advisory fees do not necessarily have to be the lowest fees charged in the peer group, but they must determine whether the fees are reasonable. The Trustees noted the fact that the advisory fee for stock funds was approximately 65 basis points whereas the advisory fee for bond funds was approximately 50 basis points. The Board discussed that stocks funds generally have a higher rate of return and require more involvement in managing the portfolio. He added that when each Fund was launched, DAIC looked at the marketplace for similarly managed funds to determine fees that were fair and reasonable. The Trustees also discussed the underwriting and 12b-1 fees paid to DAIC for each of the Funds. The Independent Trustees noted that the market place, in part, works to keep fees reasonable. It was the consensus of the Board that, based on DAIC’s expertise and level of service, the management fees paid by the Funds to DAIC are reasonable.
Profitability. The Trustees next reviewed an analysis of profitability provided by DAIC. The Trustees took into account possible benefits derived by DAIC from its relationship with the Funds. In its evaluation of DAIC’s profitability, the Trustees discussed with Mr. Jeffrey Dunham the salary component of DAIC expenses, both including and excluding personnel involved with marketing the Funds. The Independent Trustees discussed with Mr. Jeffrey Dunham his expectations for profitability, and the level of profit required to adequately incentivize DAIC. The Trustees concluded that although the advisory fees may be among the higher of fees charged, relative to peer group averages, based on the advisory services provided and performance of the Funds, DAIC’s profits from its relationship with the Funds was not excessive and is at a level which will appropriately incentivize the Adviser to continue to provide premium services.
Economies of Scale. As to economies of scale, the Trustees noted that the Investment Advisory Agreement does not contain breakpoints that reduce the fee rate on assets above specified levels. The Trustees agreed that breakpoints may be an appropriate way for the Adviser to share economies of scale with the Funds and the shareholders if the Funds experience a substantial growth in assets. However, the Trustees recognized that no Fund had yet reached an asset level where the Adviser could realize significant economies of scale. The Trustees noted that economies of scale would be considered in the future as net asset levels of the Funds grow. Consequently, the Trustees concluded that the absence of breakpoints was acceptable under the circumstances but would need to be considered in the future.
Continuance of Sub-Advisory Agreements
The Trustees reviewed information received related to the Sub-Advisory Agreements, including the investment performance of each Fund and a comparison to peer group of funds and appropriate indices, each Sub-Adviser’s personnel and resources, and comparative fees and expenses of a peer group of funds.
Matters considered by the Board, including the Independent Trustees, in connection with its approval of the continuance of each of the Sub-Advisory Agreements included the following:
Nature, Extent and Quality of Services. As to the nature, extent and quality of the services provided by the Sub-Advisers, the Board noted the experience of the portfolio management and research personnel of each Sub-Adviser, including their experience in the investment field, education and/or industry credentials. Where applicable, the Board discussed the results of recent SEC examinations and the Sub-Advisers’ responses to the SEC, and the Board was satisfied with each response. The Board also discussed litigation matters disclosed in the materials provided. The Board then discussed the financial condition of each Sub-Adviser and reviewed financial information provided by some of the Sub-Advisers. The Board reviewed the presentation materials prepared by the Sub-Advisers describing their investment process. The Board also discussed each Sub-Adviser’s compliance structure and broker selection process, and noted DAIC’s overall satisfaction with the level of services being provided by the Sub-Advisers and the Trust’s CCO’s satisfaction with each Sub-
ADDITIONAL INFORMATION (Unaudited)
Adviser’s compliance policies and documentation. It was the consensus of the Trustees that each Sub-Adviser continues to have adequate experience and expertise to manage the Fund for which it acts as Sub-Adviser in a manner acceptable to the Board.
Performance. As to the investment performance of each Sub-Adviser, the Board reviewed the performance of each Fund (as measured by the performance of Class N shares, the Trust’s largest share Class) compared to the average of each Fund’s relevant Morningstar category and average of a relevant peer group (collectively, the “Comparison Groups”) over various time periods, including since-inception, through October 31, 2012. Overall, the Board concluded that the performance of each Fund was acceptable, as follows:
International Stock. The Trustees noted that the Fund outperformed its Comparison Groups over the long-term, but underperformed over the 1-year period, which they considered may be due to the relative underperformance of emerging markets stocks versus developed markets stock during the period. The Trustees noted that the Fund has approximately 15% of its portfolio invested in emerging markets stock.
Appreciation & Income. The Trustees noted that the Fund’s long-term performance is good, although it underperformed its Comparison Groups for the one-year period as convertible securities and international exposure detracted from relative performance.
Large Cap Value. The Trustees noted that the Fund has outperformed or performed in line with its Comparison Groups since its inception in December 2004.
Small Cap Value. The Trustees noted that the Fund’s long-term performance is good, but that the Fund’s underperformance for the 1-year period suffered from the portfolio’s defensive stance as the Sub-Adviser remains cautious about volatility.
High-Yield Bond. The Trustees noted that the Fund’s underperformance of its Comparison Groups was due in large part to the defensive nature of its investment strategy and, thus, the Fund exhibited much lower risk than its Comparison Groups.
Small Cap Growth. The Trustees noted that the Fund has performed in line with or outperformed its peer group for the 1-, 3- and 5-year periods, but underperformed the category average during the past 1-year and 3-year periods. They noted that the Sub-Adviser indicated that its strategy was out of favor during the more recent time frames.
Corporate/Government Bond. The Trustees noted that the Fund has outperformed its Comparison Groups since inception in December 2004 and for the 1-and 5-year periods and slightly underperformed its Comparison Groups for the 3-year period. The Board was satisfied with the Fund’s long-term performance.
Monthly Distribution. The Trustees noted that Westchester has Sub-Advised the Fund since its inception in August 2008 and the Fund has consistently outperformed its Comparison Groups.
Loss Averse Equity Income. The Trustees noted that since inception in April 2010 through October 31, 2012 the Fund has outperformed its Comparison Groups.
Large Cap Growth. The Trustees noted that the Fund, which has been Sub-Advised by Mar Vista Investment Partners,LLC since July 2010, outperformed its Comparison Groups for the one-year period, and considered that the Fund’s long-term performance was hindered by the by the poor performance of the previous sub-adviser, partially due to the volatility of the market in 2009 and 2008.
Emerging Markets Stock. The Trustees noted that the Fund outperformed or was in line with its peer group for the 1-, 3-, and 5-year periods and since inception in 2004, but underperformed the Morningstar category (diversified emerging markets). The Trustees considered that the Fund’s performance was hindered during 2011 when emerging markets declined substantially, and noted that the Sub-Adviser generally purchases securities with a long-term view.
ADDITIONAL INFORMATION (Unaudited)
Cost of Services. As to the cost of the services provided and the profits realized by each Sub-Adviser, the Board considered the Base Fee (as defined in the Sub-Advisory Agreements) paid to each Sub-Adviser when the performance of the Fund is equal to that of the Index plus or minus a “null” zone. The Trustees also discussed at length the operation of the Performance Fee and the impact on fees and expenses based on various performance results. Where provided, the Trustees compared advisory (and sub-advisory) fees (both flat fee rates and performance fee rates) charged by each Sub-Adviser to its other accounts. The Board also compared each Fund’s fees and total expense ratio with those of a peer group of funds, discussed at length how each Fund compared, and concluded that the Sub-Advisory fees were within a reasonable range, particularly in light of the relatively small size of each Fund.
The Board then considered the potential fee adjustments to be made to the Funds’ Base Fee based on performance. The Trustees agreed that the 12-month period over which performance is computed is sufficiently long to provide a reasonable basis for indicating performance. The Board also noted the performance adjustment to the Base Fee had been calculated daily during the first twelve months, based on the average net assets of each Fund from inception of the contract to date, and the comparative performance of each Fund (based on Class N shares) to the relevant Index. The Trustees further agreed that the method by which the Performance Fee is calculated under the Sub-Advisory Agreements ensures that any significant fee adjustments are attributable to a Sub-Adviser’s skill or lack thereof, rather than to random fluctuations, and the Performance Fee clearly aligns the Sub-Advisers’ interest with those of the shareholders. It was the consensus of the Board that the maximum performance adjustment under each Sub-Advisory Agreement would only be made for performance differences that could reasonably be considered meaningful and significant taking into account each Fund’s size, volatility, diversification and variability of performance differences. After consideration, the Board was satisfied that in each case, the relationship of the fee adjustments to the Base Fee was not disproportionately large and that each Fund’s Sub-Advisory fee was acceptable in light of the quality of services the Fund has received and continues to expect to receive from its Sub-Adviser.
Profitability. As to profitability, the Trustees discussed the total fees previously paid, and expected to be paid to each Sub-Adviser based on each Funds’ current assets, and noted that payments above the Base Fee are dependent on the Sub-Adviser’s performance relative to the applicable Index and that generally when a Fund is performing well, fees tend to be higher than peer group averages. They noted that the Sub-Advisers generally receive no other compensation from a Fund or DAIC except the Sub-Advisory fees earned pursuant to the Sub-Advisory Agreement and, in some cases, soft dollars for research or brokerage fees paid to affiliates. The Trustees reviewed financial information and profitability analysis of the Sub-Advisers that provided this information. With respect to those Sub-Advisers who provided financial and profitability analysis, the Board concluded that in light of the alignment of interests between the Sub-Advisers and shareholders created by the performance-based fulcrum fee arrangement, the fee arrangement is reasonable and no Sub-Advisers would reap excessive profits from its relationship with the Fund. They noted that the Sub-Advisory fees will be higher for better performance by a Fund and agreed that profitability did not appear to be excessive in any instance.
Economies of Scale. As to economics of scale, the Trustees noted that the Sub-Advisory Agreements did not contain breakpoints that reduce the fee rate on assets above specified levels. The Trustees agreed that breakpoints may be an appropriate way for the Sub-Advisers to share their economies of scale with the Funds and the shareholders if the Funds experience a substantial growth in assets, however, the Trustees recognized that no Fund had yet reached an asset level where the Sub-Adviser could realize significant economies of scale. The Trustees noted that economies of scale would need to be considered in the future as net asset levels of the Funds grow. Consequently, the Trustees concluded that the absence of breakpoints was acceptable under the circumstances but would need to be re-considered in the future.
ADDITIONAL INFORMATION (Unaudited)
Investment Advisory and New Sub-Advisory Agreements for the Dunham Alternative Strategy Fund
The Board’s deliberations included the following:
Nature, Extent and Quality of Services. The Board, including the Independent Trustees, discussed the qualifications of DAIC’s and Sherwood’s key personnel, the experience of DAIC in managing mutual funds and the experience of the portfolio management personnel of Sherwood. The Board also reviewed Sherwood’s methodology for selecting investments. The Independent Trustees reviewed the financial information provided by DAIC and Sherwood and concluded that both the entities are able to provide high quality services to the Fund.
Performance. The Board, including the Independent Trustees, considered DAIC’s past performance with the existing Funds in the Trust, as well as other factors relating to its track record and DAIC’s active and consistent approach to monitoring the performance of the Sub-Advisers. The Board concluded that DAIC’s past performance was acceptable. As for the performance of Sherwood, the Board reviewed the performance history of the current Sherwood fund and noted its outperformance compared to the benchmark index and peer group. The Board, including the Independent Trustees, concluded that there is a reasonable expectation that Sherwood would obtain an acceptable level of investment return for prospective shareholders of Alternative Strategy.
Costs of Services and Profitability. As to the cost of the services to be provided and the profits realized or to be realized by DAIC and Sherwood, the Board, including each of the Independent Trustees, considered the base fee of 0.65% for each of DAIC and Sherwood that will be paid when the performance of the Fund is equal to that of its benchmark index. The Trustees also discussed the operation of the performance fee and the impact on fees and expenses based on various performance results. They compared the Fund’s projected fees and expense ratio with those of a peer group of funds and noted that the Fund’s projected net expense ratio was below the average, and its Advisory fee or Sub-Advisory Fee was significantly lower than the peer group average, while the combined investment advisory fees were slightly higher. The Trustees concluded that the Advisory and Sub-Advisory fees are within a reasonable range.
Economies of Scale. As to the extent to which the Fund will realize economies of scale, the Independent Trustees considered whether there will be economies of scale with respect to the management of Alternative Strategy. After discussion, it was the consensus of the Board that any material economies of scale would not be achieved by the Fund in the near term, and that it would re-evaluate the matter as the Fund’s assets increase, and at the next renewal period.
Profitability. The Board, including the Independent Trustees, next considered the anticipated profits to be realized by the Adviser and Sherwood in connection with the operation of Alternative Strategy. They reviewed estimated profitability information provided by the Adviser and Sherwood. The Trustees, including the Independent Trustees, concluded that DAIC and Sherwood would not reap excessive profits from their relationships with the Fund.
Conclusion. During the Board’s deliberations, it was noted that the Board did not identify any single piece of information that was all-important or controlling with respect to the Advisory Agreements. Based on the Board’s deliberations, the Board, including all of the Independent Trustees, unanimously concluded that (a) the terms of the Advisory Agreement are reasonable; (b) renewal of the Advisory Agreement on behalf of each existing Dunham Fund is in the best interests of each Fund and its shareholders; (c) the approval of the Advisory Agreements on behalf of Alternative Strategy is in the best interest of the Fund and its future shareholders; and (d) that the advisory fees paid to DAIC were for services different than those provided by any Fund’s Sub-Adviser and not duplicative.
ADDITIONAL INFORMATION (Unaudited)
Approval of New Sub-Advisory Agreement for Dunham Loss Averse Equity Income Fund
At a meeting held on December 18, 2012, the Board, including a majority of the Independent Trustees, approved and renewed the Sub-Advisory Agreement with PVG Asset Management Corporation (“PVG”) as Sub-Adviser to the Fund (the "Prior Sub-Advisory Agreement"). At that meeting, the Board was informed of a planned transaction between the co-owners of PVG pursuant to which one of the co-owners of PVG would acquire sole ownership of PVG. Because, under the Investment Company Act of 1940, a change of control of an advisory firm results in an “assignment” of the advisory agreement, which automatically terminates the advisory agreement with that adviser, upon the change of control. the Prior Sub-Advisory Agreement would terminate. Therefore, at a meeting held on March 12, 2013, the Board, including a majority of the Independent Trustees, elected to approve a new sub-advisory agreement with PVG on substantially identical terms as the Prior Sub-Advisory Agreement (the “New Sub-Advisory Agreement”). The New Sub-Advisory Agreement is effective as of April 1, 2013.
In connection with its review and approval of the New Sub-Advisory Agreement with PVG at the March 12, 2013 Meeting, the Board considered materials furnished by PVG, including information about, but not limited to, PVG’s personnel, operations and financial condition. The Trustees discussed the terms of the New Sub-Advisory Agreement and the performance goals and fulcrum fee arrangements set forth in the agreement.
Matters considered by the Board, including the Independent Trustees, in connection with its approval of the New Sub-Advisory Agreement included the following:
Nature, Extent and Quality of Services. As to the nature, extent and quality of the services provided by the Sub-Adviser, the Board noted the representation by the Sub-Adviser that the change of control will not result in any change to the quality or extent of services currently being provided to the Fund. The Trustees further noted that the current co-portfolio managers will continue to manage the investment portfolio of the Fund. It was the consensus of the Trustees that the nature and overall quality of services being provided by the Sub-Adviser will continue to be satisfactory and that the Fund will benefit from the Sub-Adviser’s experience in managing the Fund.
Performance. As to the investment performance of the Sub-Adviser, the Independent Trustees discussed in detail the information provided to them regarding the Fund’s performance. The Trustees were reminded that the Fund’s underperformance relative to the other accounts managed by the Sub-Adviser was due primarily to the fact that the Fund has been managed in accordance with that similar strategy only since June 2012. The Independent Trustees noted that, from inception in April 2010 through December 31, 2012, the Fund had outperformed its comparative Peer Group and relevant Morningstar Average and concluded that the investment performance of the Fund is satisfactory.
Cost of Services. The Trustees noted that there would be no change in the cost of services under the New Sub-Advisory Agreement from the cost of services when the Board approved the Prior Agreement for continuation in December 2012. The Board considered that the Base Fee (as defined in the Sub-Advisory Agreement) would be paid to the Sub-Adviser when the performance of the Fund is equal to that of the Index plus or minus a “null” zone. The Trustees also discussed at length the operation of the Performance Fee and the impact on fees and expenses based on various performance results. The Trustees further agreed that the method by which the performance fee would be calculated under the New Sub-Advisory Agreement is acceptable.
Profitability. As to profitability, the Trustees noted that payments above the Base Fee are dependent on the Sub-Adviser’s performance relative to the applicable Index and that, generally, when the Fund is performing well, fees tend to be higher than peer group averages. They considered that, while the profit earned by the Sub-Adviser was relatively high as a percent of revenue, the amount earned was modest. The Trustees further noted that, for the year ended December 31, 2012, the Sub-Adviser’s base fee plus performance fee was below the fee it received from other accounts it managed. They noted that the sub-advisory fees will be higher for better performance by the Fund and agreed that profitability did not appear to be excessive in any instance. The Trustees further noted that the brokerage fees paid to an affiliate of the Sub-Adviser, which are reported to the Board quarterly, are reasonable and within the customary ranges.
ADDITIONAL INFORMATION (Unaudited)
Economies of Scale. As to economics of scale, the Trustees noted that the Sub-Advisory Agreement does not contain breakpoints that reduce the fee rate on assets above specified levels. The Trustees agreed that breakpoints may be an appropriate way for the Sub-Adviser to share any economies of scale with the Fund and its shareholders should the Fund experience a substantial growth in assets. However, the Trustees recognized that the Fund had not yet reached an asset level where the Sub-Adviser could realize significant economies of scale. The Trustees concluded that the absence of breakpoints was acceptable under the circumstances but would be re-considered in the future.
Conclusion. During the Board’s deliberations, it was noted that the Board did not identify any single piece of information that was all-important or controlling with respect to the New Sub-Advisory Agreement. Based on the Board’s deliberations and its evaluation of the information described above, the Board, including all of the Independent Trustees, unanimously concluded that the terms of the New Sub-Advisory Agreement are reasonable.
Privacy Notice
FACTS | WHAT DO THE DUNHAM FUNDS DO WITH YOUR PERSONAL INFORMATION? |
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Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
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What? | The types of personal information we collect and share depend on the product or service you have with us. This information can include: ■ Social Security number and wire transfer instructions ■ account transactions and transaction history ■ investment experience and purchase history When you are no longer a customer, we continue to share your information as described in this notice. |
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How? | All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons the Dunham Funds chooses to share; and whether you can limit this sharing. |
Reasons we can share your personal information | Do Dunham Funds share? | Can you limit this sharing? |
For our everyday business purposes - such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | Yes | No |
For our marketing purposes - to offer our products and services to you | Yes | No |
For joint marketing with other financial companies | No | We don’t share |
For our affiliates’ everyday business purposes - information about your transactions and experiences | No | We don’t share |
For our affiliates’ everyday business purposes - information about your creditworthiness | No | We don’t share |
For nonaffiliates to market to you | No | We don’t share |
Questions? | Call (800) 442-4358 or go to www.dunham.com |
What we do | |
How do Dunham Funds protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We permit only authorized parties and affiliates (as permitted by law) who have signed an agreement (which protects your personal information) with us to have access to customer information. |
How do Dunham Funds collect my personal information? | We collect your personal information, for example, when you ■ open and account or deposit money ■ direct us to buy securities or direct us to sell your securities ■ seek advice about your investments We also collect your personal information from others, such as credit bureaus, affiliates, or other companies. |
Why can't I limit all sharing? | Federal law gives you the right to limit only ■ sharing for affiliates' everyday business purposes-information about your creditworthiness ■ affiliates from using your information to market to you ■ sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing. |
Definitions | |
Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies. ■ Our affiliates include financial companies, such as |
Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies. ■ Dunham Funds do not share with nonaffiliates so they can market to you. |
Joint marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you. ■ Dunham Funds do not jointly market |
How to Obtain Proxy Voting Information
Information regarding how the Funds voted proxies relating to portfolio securities for the most recent 12-month period ended June 30 as well as a description of the policies and procedures that the Funds use to determine how to vote proxies is available without charge, upon request, by calling (888)-3DUNHAM (338-6426) or by referring to the Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov.
How to Obtain 1st and 3rd Fiscal Quarter Portfolio Holdings
Each Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Form N-Q is available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC (800)-SEC-0330. The information on Form N-Q is available without charge, upon request, by calling (888)-3DUNHAM (338-6426).
Item 1. Reports to Stockholders.
Item 2. Code of Ethics. Not applicable.
Item 3. Audit Committee Financial Expert. Not applicable.
Item 4. Principal Accountant Fees and Services. Not applicable.
Item 5. Audit Committee of Listed Companies. Not applicable to open-end investment companies.
Item 6. Schedule of Investments. Schedule of investments in securities of unaffiliated issuers is included under Item 1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Funds. Not applicable to open-end investment companies.
Item 8. Portfolio Managers of Closed-End Funds. Not applicable to open-end investment companies.
Item 9. Purchases of Equity Securities by Closed-End Funds. Not applicable to open-end investment companies.
Item 10. Submission of Matters to a Vote of Security Holders. None
Item 11. Controls and Procedures.
(a)
Based on an evaluation of the registrant’s disclosure controls and procedures as of a date within 90 days of filing date of this Form N-CSR, the disclosure controls and procedures are reasonably designed to ensure that the information required in filings on Forms N-CSR is recorded, processed, summarized, and reported on a timely basis.
(b)
There were no significant changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal half-year that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits.
(a)(1)
Not required for semi-annual reports.
(a)(2)
Certifications required by Section 302 of the Sarbanes-Oxley Act of 2002 (and Item 11(a)(2) of Form N-CSR) are filed herewith..
(a)(3)
Not applicable.
(b)
Certifications required by Section 906 of the Sarbanes-Oxley Act of 2002 (and Item 11(b) of Form N-CSR) are filed herewith.
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) Dunham Funds
By (Signature and Title)
/s/Jeffrey Dunham
Jeffrey Dunham, President
Date
7/8/13
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 (Signature and Title)
/s/Jeffrey Dunham
Jeffrey Dunham, President
Date
7/8/13
By (Signature and Title)
/s/Denise Iverson
Denise Iverson, Treasurer
Date
7/8/13